Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 19, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 500,900,866 | ||
Entity Public Float | $ 2.2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Fixed maturity securities available-for-sale, at fair value | $ 59,661 | $ 62,525 |
Equity securities, at fair value | 655 | 820 |
Commercial mortgage loans | 6,687 | 6,341 |
Restricted commercial mortgage loans related to securitization entities | 62 | 107 |
Policy loans | 1,861 | 1,786 |
Other invested assets | 1,188 | 1,813 |
Total investments | 70,114 | 73,392 |
Cash, cash equivalents and restricted cash | 2,177 | 2,875 |
Accrued investment income | 675 | 644 |
Deferred acquisition costs | 3,263 | 2,329 |
Intangible assets and goodwill | 347 | 301 |
Reinsurance recoverable | 17,278 | 17,569 |
Other assets | 474 | 453 |
Deferred tax asset | 736 | 504 |
Separate account assets | 5,859 | 7,230 |
Total assets | 100,923 | 105,297 |
Liabilities and equity | ||
Future policy benefits | 37,940 | 38,472 |
Policyholder account balances | 22,968 | 24,195 |
Liability for policy and contract claims | 10,379 | 9,594 |
Unearned premiums | 3,546 | 3,967 |
Other liabilities | 1,682 | 1,910 |
Borrowings related to securitization entities | 40 | |
Non-recourse funding obligations | 311 | 310 |
Long-term borrowings | 4,025 | 4,224 |
Deferred tax liability | 24 | 27 |
Separate account liabilities | 5,859 | 7,230 |
Total liabilities | 86,734 | 89,969 |
Commitments and contingencies | ||
Equity: | ||
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 589 million and 588 million shares issued as of December 31, 2018 and 2017, respectively; 501 million and 499 million shares outstanding as of December 31, 2018 and 2017, respectively | 1 | 1 |
Additional paid-in capital | 11,987 | 11,977 |
Net unrealized investment gains (losses) | ||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 585 | 1,075 |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 10 | 10 |
Net unrealized investment gains (losses) | 595 | 1,085 |
Derivatives qualifying as hedges | 1,781 | 2,065 |
Foreign currency translation and other adjustments | (332) | (123) |
Total accumulated other comprehensive income (loss) | 2,044 | 3,027 |
Retained earnings | 1,118 | 1,113 |
Treasury stock, at cost (88 million shares as of December 31, 2018 and 2017) | (2,700) | (2,700) |
Total Genworth Financial, Inc.'s stockholders' equity | 12,450 | 13,418 |
Noncontrolling interests | 1,739 | 1,910 |
Total equity | 14,189 | 15,328 |
Total liabilities and equity | $ 100,923 | $ 105,297 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
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 | 589,000,000 | 588,000,000 |
Class A common stock, shares outstanding | 501,000,000 | 499,000,000 |
Treasury stock, shares | 88,000,000 | 88,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues: | ||||
Premiums | $ 4,519 | $ 4,004 | $ 4,160 | |
Net investment income | 3,262 | 3,200 | 3,159 | |
Net investment gains (losses) | (146) | 265 | 72 | |
Policy fees and other income | 795 | 826 | 978 | |
Total revenues | 8,430 | 8,295 | 8,369 | |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 5,684 | 5,179 | 5,245 | |
Interest credited | 611 | 646 | 696 | |
Acquisition and operating expenses, net of deferrals | 997 | 1,022 | 1,273 | |
Amortization of deferred acquisition costs and intangibles | 391 | 435 | 498 | |
Interest expense | 299 | 284 | 337 | |
Total benefits and expenses | 7,982 | 7,566 | 8,049 | |
Income from continuing operations before income taxes | 448 | 729 | 320 | |
Provision (benefit) for income taxes | 151 | (207) | 358 | |
Income (loss) from continuing operations | 297 | 936 | (38) | |
Loss from discontinued operations, net of taxes | 0 | (9) | (29) | |
Net income (loss) | 297 | 927 | (67) | |
Less: net income attributable to noncontrolling interests | 178 | 110 | 210 | |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 119 | $ 817 | $ (277) | |
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders per share: | ||||
Basic | $ 0.24 | $ 1.66 | $ (0.50) | |
Diluted | 0.24 | 1.65 | (0.50) | |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share: | ||||
Basic | 0.24 | 1.64 | (0.56) | |
Diluted | $ 0.24 | $ 1.63 | $ (0.56) | |
Weighted-average common shares outstanding: | ||||
Basic | 500.4 | 499 | 498.3 | |
Diluted | [1] | 504.2 | 501.4 | 498.3 |
Supplemental disclosures: | ||||
Total other-than-temporary impairments | $ 0 | $ (6) | $ (40) | |
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 0 | 0 | 0 | |
Net other-than-temporary impairments | 0 | (6) | (40) | |
Other investment gains (losses) | (146) | 271 | 112 | |
Net investment gains (losses) | $ (146) | $ 265 | $ 72 | |
[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 year ended December 31, 2016, 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 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 year ended December 31, 2016, dilutive potential weighted-average common shares outstanding would have been 500.3 million. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income (loss) | $ 297 | $ 927 | $ (67) |
Other comprehensive income (loss), net of taxes: | |||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (669) | (187) | 6 |
Net unrealized gains (losses) on other-than-temporarily impaired securities | (2) | 1 | (9) |
Derivatives qualifying as hedges | (298) | (20) | 40 |
Foreign currency translation and other adjustments | (301) | 251 | 54 |
Total other comprehensive income (loss) | (1,270) | 45 | 91 |
Total comprehensive income (loss) | (973) | 972 | 24 |
Less: comprehensive income attributable to noncontrolling interests | 22 | 222 | 217 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (995) | $ 750 | $ (193) |
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, 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 |
Cumulative effect of change in accounting, net of taxes | 17 | 131 | (114) | 17 | ||||
Repurchase of subsidiary shares | (105) | (105) | ||||||
Comprehensive income (loss): | ||||||||
Net income (loss) | 297 | 119 | 119 | 178 | ||||
Other comprehensive income (loss), net of taxes | (1,270) | (1,114) | (1,114) | (156) | ||||
Total comprehensive income (loss) | (973) | (995) | 22 | |||||
Dividends to noncontrolling interests | (97) | (97) | ||||||
Stock-based compensation expense and exercises and other | 19 | 10 | 10 | 9 | ||||
Balances, ending at Dec. 31, 2018 | $ 14,189 | $ 1 | $ 11,987 | $ 2,044 | $ 1,118 | $ (2,700) | $ 12,450 | $ 1,739 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 297 | $ 927 | $ (67) |
Less loss from discontinued operations, net of taxes | 0 | 9 | 29 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||
Gain on sale of businesses | (26) | ||
Amortization of fixed maturity securities discounts and premiums | (122) | (147) | (138) |
Net investment (gains) losses | 146 | (265) | (72) |
Charges assessed to policyholders | (697) | (713) | (782) |
Acquisition costs deferred | (83) | (88) | (150) |
Amortization of deferred acquisition costs and intangibles | 391 | 435 | 498 |
Deferred income taxes | 5 | (368) | 145 |
Trading securities, limited partnerships and derivative instruments | (249) | 703 | 709 |
Stock-based compensation expense | 37 | 42 | 32 |
Change in certain assets and liabilities: | |||
Accrued investment income and other assets | (168) | 30 | (358) |
Insurance reserves | 1,555 | 1,625 | 1,315 |
Current tax liabilities | (52) | (4) | 32 |
Other liabilities, policy and contract claims and other policy-related balances | 573 | 368 | 705 |
Net cash from (used by) operating activities | 1,633 | 2,554 | 1,872 |
Cash flows used by investing activities: | |||
Fixed maturity securities | 3,756 | 4,766 | 3,889 |
Commercial mortgage loans | 701 | 579 | 700 |
Restricted commercial mortgage loans related to securitization entities | 45 | 22 | 32 |
Proceeds from sales of investments: | |||
Fixed maturity and equity securities | 6,192 | 4,226 | 5,629 |
Purchases and originations of investments: | |||
Fixed maturity and equity securities | (10,706) | (8,888) | (11,529) |
Commercial mortgage loans | (1,047) | (806) | (649) |
Other invested assets, net | 402 | (701) | (154) |
Policy loans, net | 35 | 48 | (77) |
Proceeds from sale of businesses, net of cash transferred | 39 | ||
Payments for businesses purchased, net of cash acquired | (5) | ||
Net cash from (used by) investing activities | (622) | (759) | (2,120) |
Cash flows used by financing activities: | |||
Deposits to universal life and investment contracts | 1,193 | 857 | 1,349 |
Withdrawals from universal life and investment contracts | (2,355) | (2,397) | (2,004) |
Redemption and repurchase of non-recourse funding obligations | (1,620) | ||
Proceeds from issuance of long-term debt | 441 | ||
Repayment and repurchase of long-term debt | (600) | (382) | |
Repayment of borrowings related to securitization entities | (40) | (34) | (42) |
Repurchase of subsidiary shares | (105) | (33) | |
Return of capital to noncontrolling interests | (70) | ||
Dividends paid to noncontrolling interests | (97) | (107) | (138) |
Other, net | (58) | (54) | (44) |
Net cash from (used by) financing activities | (1,621) | (1,768) | (2,951) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (88) | 64 | (10) |
Net change in cash, cash equivalents and restricted cash | (698) | 91 | (3,209) |
Cash, cash equivalents and restricted cash at beginning of period | 2,875 | 2,784 | 5,993 |
Cash, cash equivalents and restricted cash at end of period | $ 2,177 | $ 2,875 | $ 2,784 |
Nature of Business and Formatio
Nature of Business and Formation of Genworth | 12 Months Ended |
Dec. 31, 2018 | |
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. (“Parent”), a limited liability company incorporated in the People’s Republic of China and a subsidiary of China Oceanwide Holdings Group Co., Ltd. (together with its affiliates, “China Oceanwide”), and Asia Pacific Global Capital USA Corporation (“Merger Sub”), a Delaware corporation and an indirect, wholly-owned subsidiary of Asia Pacific Insurance USA Holdings LLC (“Asia Pacific Insurance”), which is a Delaware limited liability company and owned by China Oceanwide, pursuant to which, subject to the terms and conditions Merger Sub would merge with and into Genworth Financial with Genworth Financial surviving the merger as an indirect, wholly-owned subsidiary of Asia Pacific Insurance. 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 closing of the transaction remains subject to other conditions and approvals. 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. In the United States, we offer mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans (“flow mortgage insurance”). We selectively provide mortgage insurance on a bulk basis (“bulk mortgage insurance”) with essentially all of our bulk writings being prime-based. • Canada Mortgage Insurance. We offer flow mortgage insurance and also provide bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk in Canada. • Australia Mortgage Insurance. In Australia, we offer flow mortgage insurance and selectively provide bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk. • U.S. Life Insurance. We offer long-term care insurance products as well as service traditional life insurance and fixed annuity products in the United States. • Runoff. The Runoff segment includes the results of non-strategic products which have not been actively sold since 2011 but we continue to service our existing blocks of business. Our non-strategic products primarily include our variable annuity, variable life insurance, institutional, corporate-owned life insurance and other accident and health insurance products. Institutional products consist of: funding agreements and funding agreements backing notes (“FABNs”). 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, 2018 | |
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 fixed maturity securities as either available-for-sale or trading and report them in our consolidated balance sheets at fair value. Equity securities are recorded at fair value in our consolidated balance sheets and changes in the fair value are reflected in net investment gains (losses). 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). 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. Prior to adopting new accounting guidance related to the recognition and measurement of financial assets and financial liabilities on January 1, 2018 (see “—Accounting Changes —Recognition and measurement of financial assets and liabilities” for additional details), we recognized an impairment charge for equity securities in the period in which we determined that the security would not recover to book value within a reasonable period of time. We determined what constituted 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 did not exceed 15 months for common equity securities. We measured 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 fair 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, Cash Equivalents and Restricted Cash 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 . Acquisition costs include commissions in excess of ultimate renewal commissions and for contracts issued, certain other costs such as underwriting, medical inspection and issuance expenses. DAC for traditional long-duration insurance contracts, including term life and long-term care insurance, is amortized as a level percentage of 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, established when the contract is issued. Amortization is adjusted each period to reflect actual lapse or termination rates. 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. Acquisition costs primarily consist of commissions and premium taxes and are amortized ratably over the terms of the underlying policies. 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. In conjunction with the acquisition of a block of insurance policies or investment contracts, a portion of the purchase price is assigned to the right to receive future gross profits arising from existing insurance and investment contracts. This intangible asset, called PVFP, represents the actuarially estimated present value of future cash flows from the acquired policies. PVFP is amortized, net of accreted interest, in a manner similar to the amortization of DAC. 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. We defer sales inducements to contractholders for features on variable annuities that entitle the contractholder to an incremental amount to be credited to the account value upon making a deposit, and for fixed annuities with crediting rates higher than the contract’s expected ongoing crediting rates for periods after the inducement. Deferred sales inducements to contractholders are reported as a separate intangible asset and amortized in benefits and other changes in policy reserves using the same methodology and assumptions used to amortize DAC. Other Intangible Assets . We amortize the costs of other intangibles over their estimated useful lives unless such lives are deemed indefinite. Amortizable intangible assets are tested for impairment based on undiscounted cash flows, which requires the use of estimates and judgment, and, if impaired, written down to fair value based on either discounted cash flows or appraised values. Intangible assets with indefinite lives are tested at least annually for impairment using a qualitative or quantitative assessment and are written down to fair value as required. 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 recognize an impairment in an amount equal to the difference between the carrying value and the fair value of the reporting unit up to the amount of recorded goodwill. No goodwill impairment charges were recorded in 2018, 2017 or 2016. 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. 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 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, changes in fair value of the derivative instrument is reported as a component of OCI. 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, 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, cash equivalents and restricted cash 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, 2018 and 2017, the fair value of non-cash collateral received was $40 million and $70 million, respectively, and the underlying assets were not sold or re-pledged. We have pledged $536 million and $288 million of fixed maturity securities as of December 31, 2018 and 2017, respectively. Additionally, as of December 31, 2018 and 2017, we pledged $57 million and $59 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 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Weighted-average common shares used in basic earnings (loss) per share calculations 500.4 499.0 498.3 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 3.8 2.4 — Weighted-average common shares used in diluted earnings (loss) per share calculations (1) 504.2 501.4 498.3 Income (loss) from continuing operations: Income (loss) from continuing operations $ 297 $ 936 $ (38 ) Less: income from continuing operations attributable to noncontrolling interests 178 110 210 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 119 $ 826 $ (248 ) Basic per share $ 0.24 $ 1.66 $ (0.50 ) Diluted per share $ 0.24 $ 1.65 $ (0.50 ) Loss from discontinued operations: Loss from discontinued operations, net of taxes $ — $ (9 ) $ (29 ) 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 ) Basic per share $ — $ (0.02 ) $ (0.06 ) Diluted per share $ — $ (0.02 ) $ (0.06 ) Net income (loss): Income (loss) from continuing operations $ 297 $ 936 $ (38 ) Loss from discontinued operations, net of taxes — (9 ) (29 ) Net income (loss) 297 927 (67 ) Less: net income attributable to noncontrolling interests 178 110 210 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 119 $ 817 $ (277 ) Basic per share $ 0.24 $ 1.64 $ (0.56 ) Diluted per share $ 0.24 $ 1.63 $ (0.56 ) (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 year ended December 31, 2016, 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 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 year ended December 31, 2016, dilutive potential weighted-average common shares outstanding would have been 500.3 million. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments | (4) Investments (a) Net Investment Income Sources of net investment income were as follows for the years ended December 31: (Amounts in millions) 2018 2017 2016 Fixed maturity securities—taxable $ 2,577 $ 2,578 $ 2,565 Fixed maturity securities—non-taxable 11 12 12 Equity securities 40 36 28 Commercial mortgage loans 320 306 318 Restricted commercial mortgage loans related to securitization entities (1) 7 9 10 Policy loans 169 153 146 Other invested assets (2) 181 157 141 Restricted other invested assets related to securitization entities (1) — 1 3 Cash, cash equivalents, restricted cash and short-term investments 51 36 20 Gross investment income before expenses and fees 3,356 3,288 3,243 Expenses and fees (94 ) (88 ) (84 ) Net investment income $ 3,262 $ 3,200 $ 3,159 (1) See note 17 for additional information related to consolidated securitization entities. (2) Included in other invested assets was $—, $ 2 11 (b) Net Investment Gains (Losses) The following table sets forth net investment gains (losses) for the years ended December 31: (Amounts in millions) 2018 2017 2016 Available-for-sale Realized gains $ 169 $ 229 $ 249 Realized losses (144 ) (66 ) (121 ) Net realized gains (losses) on available-for-sale 25 163 128 Impairments: Total other-than-temporary impairments — (6 ) (40 ) Portion of other-than-temporary impairments included in other comprehensive income (loss) — — — Net other-than-temporary impairments — (6 ) (40 ) Net realized gains (losses) on equity securities sold 11 — — Net unrealized gains (losses) on equity securities still held (98 ) — — Trading securities — 1 10 Limited partnerships 11 — 6 Commercial mortgage loans — 3 1 Net gains (losses) related to securitization entities (1) — 7 (50 ) Derivative instruments (2) (95 ) 97 20 Contingent consideration adjustment — — (2 ) Other — — (1 ) Net investment gains (losses) $ (146 ) $ 265 $ 72 (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, 2018, 2017 and 2016 was $3,367 million, $2,023 million and $1,881 million, respectively, which was approximately 96%, 97% and 95%, respectively, of book value. The following represents the activity for credit losses recognized in net income (loss) on debt securities where an other-than-temporary impairment was identified and a portion of other-than-temporary impairments was included in OCI as of and for the years ended December 31: (Amounts in millions) 2018 2017 2016 Beginning balance $ 32 $ 42 $ 64 Additions: Other-than-temporary impairments not previously recognized — — 1 Reductions: Securities sold, paid down or disposed (8 ) (10 ) (23 ) Ending balance $ 24 $ 32 $ 42 (c) Unrealized Investment Gains and Losses Net unrealized gains and losses on available-for-sale (Amounts in millions) 2018 2017 2016 Net unrealized gains (losses) on investment securities: Fixed maturity securities $ 1,775 $ 5,125 $ 3,656 Equity securities — 69 12 Subtotal (1) 1,775 5,194 3,668 Adjustments to DAC, PVFP, sales inducements and benefit reserves (952 ) (3,451 ) (1,611 ) Income taxes, net (190 ) (583 ) (711 ) Net unrealized investment gains (losses) 633 1,160 1,346 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 38 75 84 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 595 $ 1,085 $ 1,262 (1) Excludes foreign exchange. The change in net unrealized gains (losses) on available-for-sale (Amounts in millions) 2018 2017 2016 Beginning balance $ 1,085 $ 1,262 $ 1,254 Cumulative effect of changes in accounting: Stranded tax effects 189 — — Recognition and measurement of financial assets and liabilities, net of taxes of $18, $— and $— (25 ) — — Total cumulative effect of changes in accounting 164 — — Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities (3,327 ) 1,683 626 Adjustment to DAC (1) 1,182 (1,000 ) (499 ) Adjustment to PVFP 69 (33 ) (5 ) Adjustment to sales inducements 34 (4 ) (16 ) Adjustment to benefit reserves 1,208 (803 ) (21 ) Provision for income taxes 181 73 (31 ) Change in unrealized gains (losses) on investment securities (653 ) (84 ) 54 Reclassification adjustments to net investment (gains) losses, net of taxes of $5, $55 and $31 (18 ) (102 ) (57 ) Change in net unrealized investment gains (losses) (671 ) (186 ) (3 ) Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (17 ) (9 ) (11 ) Ending balance $ 595 $ 1,085 $ 1,262 (1) See note 6 for additional information. (d) Fixed Maturity and Equity Securities As of December 31, 2018, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity securities classified as available-for-sale were as follows: Gross unrealized gains Gross unrealized losses Amortized Not other-than- Other-than- Not other-than- Other-than- cost or temporarily temporarily temporarily temporarily Fair (Amounts in millions) cost impaired impaired impaired impaired value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,175 $ 473 $ — $ (17 ) $ — $ 4,631 State and political subdivisions 2,406 168 — (22 ) — 2,552 Non-U.S. government 2,345 72 — (24 ) — 2,393 U.S. corporate: Utilities 4,439 331 — (95 ) — 4,675 Energy 2,382 101 — (64 ) — 2,419 Finance and insurance 6,705 249 — (132 ) — 6,822 Consumer—non-cyclical 4,891 294 — (137 ) — 5,048 Technology and communications 2,823 110 — (78 ) — 2,855 Industrial 1,230 41 — (33 ) — 1,238 Capital goods 2,277 165 — (51 ) — 2,391 Consumer—cyclical 1,592 53 — (48 ) — 1,597 Transportation 1,283 78 — (41 ) — 1,320 Other 376 24 — (3 ) — 397 Total U.S. corporate 27,998 1,446 — (682 ) — 28,762 Non-U.S. corporate: Utilities 1,056 17 — (32 ) — 1,041 Energy 1,320 72 — (23 ) — 1,369 Finance and insurance 2,391 72 — (40 ) — 2,423 Consumer—non-cyclical 756 8 — (25 ) — 739 Technology and communications 1,168 23 — (26 ) — 1,165 Industrial 926 36 — (17 ) — 945 Capital goods 615 10 — (10 ) — 615 Consumer—cyclical 532 1 — (13 ) — 520 Transportation 689 46 — (15 ) — 720 Other 2,218 105 — (23 ) — 2,300 Total non-U.S. corporate 11,671 390 — (224 ) — 11,837 Residential mortgage-backed 2,888 160 13 (17 ) — 3,044 Commercial mortgage-backed 3,054 43 — (81 ) — 3,016 Other asset-backed 3,444 10 1 (29 ) — 3,426 Total available-for-sale fixed maturity securities $ 57,981 $ 2,762 $ 14 $ (1,096 ) $ — $ 59,661 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 Amortized Not other-than- Other-than- Not other-than- Other-than- cost or temporarily temporarily temporarily temporarily Fair (Amounts in millions) cost impaired impaired impaired impaired 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 The following table presents the gross unrealized losses and fair values of our fixed maturity securities, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of December 31, 2018: Less than 12 months 12 months or more Total Gross Gross Gross Fair unrealized Number of Fair unrealized Number of Fair unrealized Number of (Dollar amounts in millions) value losses securities value losses securities value losses securities Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored $ 545 $ (8 ) 17 $ 161 $ (9 ) 26 $ 706 $ (17 ) 43 State and political subdivisions 371 (10 ) 63 233 (12 ) 57 604 (22 ) 120 Non-U.S. government 261 (7 ) 51 508 (17 ) 35 769 (24 ) 86 U.S. corporate 9,975 (472 ) 1,342 2,449 (210 ) 365 12,424 (682 ) 1,707 Non-U.S. corporate 4,172 (150 ) 614 1,274 (74 ) 209 5,446 (224 ) 823 Residential mortgage-backed 363 (6 ) 57 579 (11 ) 96 942 (17 ) 153 Commercial mortgage-backed 758 (19 ) 115 870 (62 ) 130 1,628 (81 ) 245 Other asset-backed 1,597 (23 ) 326 604 (6 ) 137 2,201 (29 ) 463 Total for fixed maturity securities $ 18,042 $ (695 ) 2,585 $ 6,678 $ (401 ) 1,055 $ 24,720 $ (1,096 ) 3,640 % Below cost: <20% Below cost $ 18,008 $ (685 ) 2,581 $ 6,624 $ (383 ) 1,045 $ 24,632 $ (1,068 ) 3,626 20%-50% Below cost 34 (10 ) 4 54 (18 ) 10 88 (28 ) 14 Total for fixed maturity securities $ 18,042 $ (695 ) 2,585 $ 6,678 $ (401 ) 1,055 $ 24,720 $ (1,096 ) 3,640 Investment grade $ 16,726 $ (615 ) 2,393 $ 6,508 $ (379 ) 1,024 $ 23,234 $ (994 ) 3,417 Below investment grade 1,316 (80 ) 192 170 (22 ) 31 1,486 (102 ) 223 Total for fixed maturity securities $ 18,042 $ (695 ) 2,585 $ 6,678 $ (401 ) 1,055 $ 24,720 $ (1,096 ) 3,640 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, 2018: Less than 12 months 12 months or more Total Gross Gross Gross Fair unrealized Number of Fair unrealized Number of Fair unrealized Number of (Dollar amounts in millions) value losses securities value losses securities value losses securities Description of Securities U.S. corporate: Utilities $ 1,246 $ (61 ) 173 $ 343 $ (34 ) 60 $ 1,589 $ (95 ) 233 Energy 944 (47 ) 135 152 (17 ) 23 1,096 (64 ) 158 Finance and insurance 2,393 (92 ) 326 688 (40 ) 95 3,081 (132 ) 421 Consumer—non-cyclical 1,826 (101 ) 203 389 (36 ) 55 2,215 (137 ) 258 Technology and communications 1,135 (51 ) 152 263 (27 ) 34 1,398 (78 ) 186 Industrial 506 (27 ) 63 74 (6 ) 13 580 (33 ) 76 Capital goods 704 (31 ) 103 184 (20 ) 27 888 (51 ) 130 Consumer—cyclical 738 (35 ) 123 162 (13 ) 26 900 (48 ) 149 Transportation 435 (25 ) 60 179 (16 ) 31 614 (41 ) 91 Other 48 (2 ) 4 15 (1 ) 1 63 (3 ) 5 Subtotal, U.S. corporate 9,975 (472 ) 1,342 2,449 (210 ) 365 12,424 (682 ) 1,707 Non-U.S. corporate: Utilities 404 (19 ) 58 173 (13 ) 24 577 (32 ) 82 Energy 439 (15 ) 64 136 (8 ) 20 575 (23 ) 84 Finance and insurance 899 (25 ) 151 294 (15 ) 52 1,193 (40 ) 203 Consumer—non-cyclical 377 (16 ) 51 102 (9 ) 14 479 (25 ) 65 Technology and communications 611 (24 ) 75 50 (2 ) 12 661 (26 ) 87 Industrial 275 (11 ) 48 72 (6 ) 8 347 (17 ) 56 Capital goods 226 (7 ) 27 69 (3 ) 13 295 (10 ) 40 Consumer—cyclical 268 (11 ) 42 117 (2 ) 19 385 (13 ) 61 Transportation 232 (7 ) 27 67 (8 ) 11 299 (15 ) 38 Other 441 (15 ) 71 194 (8 ) 36 635 (23 ) 107 Subtotal, non-U.S. corporate 4,172 (150 ) 614 1,274 (74 ) 209 5,446 (224 ) 823 Total for corporate securities in an unrealized loss position $ 14,147 $ (622 ) 1,956 $ 3,723 $ (284 ) 574 $ 17,870 $ (906 ) 2,530 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. 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 Gross Gross Gross Fair unrealized Number of Fair unrealized Number of Fair unrealized Number of (Dollar amounts in millions) value losses securities value losses securities value losses securities Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored $ 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 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 $ 6,090 $ (65 ) 1,039 $ 3,661 $ (143 ) 587 $ 9,751 $ (208 ) 1,626 % Below cost—fixed maturity <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 $ 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 $ 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 Gross Gross Gross Fair unrealized Number of Fair unrealized Number of Fair unrealized Number of (Dollar amounts in millions) value losses securities value losses securities value losses securities 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 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 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 scheduled maturity distribution of fixed maturity securities as of December 31, 2018 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. Amortized cost or Fair (Amounts in millions) cost value Due one year or less $ 1,863 $ 1,874 Due after one year through five years 10,851 10,952 Due after five years through ten years 12,438 12,463 Due after ten years 23,443 24,886 Subtotal 48,595 50,175 Residential mortgage-backed 2,888 3,044 Commercial mortgage-backed 3,054 3,016 Other asset-backed 3,444 3,426 Total $ 57,981 $ 59,661 As of December 31, 2018, securities issued by finance and insurance, utilities and consumer—non-cyclical industry groups represented approximately 24%, 14% and 14%, respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 10% of our investment portfolio. As of December 31, 2018, 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, 2018 and 2017, securities of $43 million 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: 2018 2017 Carrying % of Carrying % of (Amounts in millions) value total value total Property type: Retail $ 2,463 37 % $ 2,239 35 % Industrial 1,659 25 1,628 26 Office 1,548 23 1,510 24 Apartments 495 7 478 8 Mixed use 254 4 223 3 Other 281 4 275 4 Subtotal 6,700 100 % 6,353 100 % Unamortized balance of loan origination fees and costs (4 ) (3 ) Allowance for losses (9 ) (9 ) Total $ 6,687 $ 6,341 2018 2017 Carrying % of Carrying % of (Amounts in millions) value total value total Geographic region: South Atlantic $ 1,709 26 % $ 1,625 26 % Pacific 1,684 25 1,622 26 Middle Atlantic 950 14 927 14 Mountain 667 10 556 9 West North Central 470 7 446 7 East North Central 405 6 394 6 West South Central 364 6 336 5 New England 228 3 239 4 East South Central 223 3 208 3 Subtotal 6,700 100 % 6,353 100 % Unamortized balance of loan origination fees and costs (4 ) (3 ) Allowance for losses (9 ) (9 ) Total $ 6,687 $ 6,341 The following tables set forth the aging of past due commercial mortgage loans by property type as of December 31: 2018 Greater than 31 - 60 days 61 - 90 days 90 days past Total (Amounts in millions) past due past due due past due Current Total Property type: Retail $ 3 $ — $ — $ 3 $ 2,460 $ 2,463 Industrial — — — — 1,659 1,659 Office — — 3 3 1,545 1,548 Apartments — — — — 495 495 Mixed use — — — — 254 254 Other — — — — 281 281 Total recorded investment $ 3 $ — $ 3 $ 6 $ 6,694 $ 6,700 % of total commercial mortgage loans — % — % — % — % 100 % 100 % 2017 Greater than 31 - 60 days 61 - 90 days 90 days past Total (Amounts in millions) past due past due due past due 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 % As of December 31, 2018 and 2017, we had no commercial mortgage loans that were past due for more than 90 days and still accruing interest. We also did not have any commercial mortgage loans that were past due for less than 90 days on non-accrual status as of December 31, 2018 and 2017. We evaluate the impairment of commercial mortgage loans on an individual loan basis. As of December 31, 2018 and 2017, our commercial mortgage loans greater than 90 days past due included one impaired loan. This loan had an appraised value in excess of the recorded investment and the current recorded investment of this loan is expected to be recoverable. During the years ended December 31, 2018 and 2017, we modified or extended 2 and 10 commercial mortgage loans, respectively, with a total carrying value of $12 million and $27 million, respectively. All of these modifications or extensions were based on current market interest rates, did not result in any forgiveness in the outstanding principal amount owed by the borrower and were not considered troubled debt restructurings. The following table sets forth the allowance for credit losses and recorded investment in commercial mortgage loans as of or for the years ended December 31: (Amounts in millions) 2018 2017 2016 Allowance for credit losses: Beginning balance $ 9 $ 12 $ 15 Charge-offs — — (6 ) Recoveries — — — Provision — (3 ) 3 Ending balance $ 9 $ 9 $ 12 Ending allowance for individually impaired loans $ — $ — $ — Ending allowance for loans not individually impaired that were evaluated collectively for impairment $ 9 $ 9 $ 12 Recorded investment: Ending balance $ 6,700 $ 6,353 $ 6,125 Ending balance of individually impaired loans $ 3 $ 6 $ 12 Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,697 $ 6,347 $ 6,113 As of December 31, 2018 and 2017, we had one individually impaired loan within the office property type with a recorded investment and unpaid principal balance of $3 million and $6 million, respectively. As of December 31, 2016, we had one individually impaired loan within the industrial property type with a recorded investment of $12 million, an unpaid principal balance of $15 million and charge-offs of $3 million. In evaluating the credit quality of commercial mortgage loans, we assess the performance of the underlying loans using both quantitative and qualitative criteria. Certain risks associated with commercial mortgage loans can be evaluated by reviewing both the loan-to-value and debt service coverage ratio to understand both the probability of the borrower not being able to make the necessary loan payments as well as the ability to sell the underlying property for an amount that would enable us to recover our unpaid principal balance in the event of default by the borrower. The average loan-to-value ratio is based on our most recent estimate of the fair value for the underlying property which is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A lower loan-to-value indicates that our loan value is more likely to be recovered in the event of default by the borrower if the property was sold. The debt service coverage ratio is based on “normalized” annual income of the property compared to the payments required under the terms of the loan. Normalization allows for the removal of annual one-time events such as capital expenditures, prepaid or late real estate tax payments or non-recurring third-party fees (such as legal, consulting or contract fees). This ratio is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A higher debt service coverage ratio indicates the borrower is less likely to default on the loan. The debt service coverage ratio is not 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: 2018 Greater (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% than 100% (1) Total Property type: Retail $ 866 $ 565 $ 1,017 $ 15 $ — $ 2,463 Industrial 749 279 615 14 2 1,659 Office 585 373 588 2 — 1,548 Apartments 206 95 189 5 — 495 Mixed use 105 36 113 — — 254 Other 43 78 160 — — 281 Total recorded investment $ 2,554 $ 1,426 $ 2,682 $ 36 $ 2 $ 6,700 % of total 38 % 21 % 40 % 1 % — % 100 % Weighted-average debt service coverage ratio 2.42 2.04 1.59 1.38 0.88 2.00 (1) Included a loan with a recorded investment of $2 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. 2017 Greater than (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% 100% (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 borrowers 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. The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of December 31: 2018 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater than 2.00 Total Property type: Retail $ 43 $ 157 $ 448 $ 1,234 $ 581 $ 2,463 Industrial 22 75 233 653 676 1,659 Office 57 56 156 765 514 1,548 Apartments 4 24 104 168 195 495 Mixed use 3 19 51 80 101 254 Other 13 134 50 50 34 281 Total recorded investment $ 142 $ 465 $ 1,042 $ 2,950 $ 2,101 $ 6,700 % of total 2 % 7 % 16 % 44 % 31 % 100 % Weighted-average loan-to-value 57 % 61 % 62 % 59 % 42 % 54 % 2017 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater than 2.00 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 % As of December 31, 2018 and 2017, 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) Limited Partnerships or Similar Entities Limited partnerships are accounted for at fair value when our partnership interest is considered minor (generally less than 3% ownership in the limited partnerships) and we exercise no influence over operating and financial policies. If our ownership percentage exceeds that threshold, limited partnerships are accounted for using the equity method of accounting. In applying either method, we use financial information provided by the investee generally on a one-to-three month lag. However, we consider whether an adjustment to the estimated fair value is necessary when the measurement date is not aligned with our reporting date. 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, 2018 and 2017, the total carrying value of these investments was $394 million and $222 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, 2018 | |
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 cash flow hedges. The following table sets forth our positions in derivative instruments as of December 31: Derivative assets Derivative liabilities Fair value Fair value Balance Balance (Amounts in millions) sheet classification 2018 2017 sheet classification 2018 2017 Derivatives designated as Cash flow hedges: Interest rate swaps Other invested assets $ 42 $ 74 Other liabilities $ 102 $ 25 Foreign currency swaps Other invested assets 6 1 Other liabilities — — Total cash flow hedges 48 75 102 25 Total derivatives 48 75 102 25 Derivatives not designated as Interest rate swaps in a foreign Other invested assets 74 105 Other liabilities — — Interest rate caps and floors Other invested assets 7 — Other liabilities — — Foreign currency swaps Other invested assets — 11 Other liabilities 23 — Equity index options Other invested assets 39 80 Other liabilities — — Financial futures Other invested assets — — Other liabilities — — Equity return swaps Other invested assets — — Other liabilities 1 2 Other foreign currency Other invested assets 10 5 Other liabilities 42 20 GMWB embedded derivatives Reinsurance (1) 20 14 Policyholder (2) 337 250 Fixed index annuity embedded Other assets — — Policyholder (3) 389 419 Indexed universal life embedded Reinsurance — — Policyholder (4) 12 14 Total derivatives not 150 215 804 705 Total derivatives $ 198 $ 290 $ 906 $ 730 (1) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. (2) Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (3) Represents the embedded derivatives associated with our fixed index annuity liabilities. (4) Represents the embedded derivatives associated with our indexed universal life liabilities. The fair value of derivative positions presented above was not offset by the respective collateral amounts 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: December 31, Maturities/ December 31, (Notional in millions) Measurement 2017 Additions terminations 2018 Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 11,155 $ 1,645 $ (2,876 ) $ 9,924 Foreign currency swaps Notional 22 58 — 80 Total cash flow hedges 11,177 1,703 (2,876 ) 10,004 Total derivatives designated as hedges 11,177 1,703 (2,876 ) 10,004 Derivatives not designated as hedges Interest rate swaps Notional 4,679 — (5 ) 4,674 Interest rate swaps in a foreign currency Notional 2,793 117 (345 ) 2,565 Interest rate caps and floors Notional — 2,810 (186 ) 2,624 Foreign currency swaps Notional 349 133 (29 ) 453 Credit default swaps Notional 39 — (39 ) — Equity index options Notional 2,420 2,848 (2,640 ) 2,628 Financial futures Notional 1,283 5,377 (5,245 ) 1,415 Equity return swaps Notional 96 3 (82 ) 17 Other foreign currency contracts Notional 471 1,739 (1,130 ) 1,080 Total derivatives not designated as hedges 12,130 13,027 (9,701 ) 15,456 Total derivatives $ 23,307 $ 14,730 $ (12,577 ) $ 25,460 December 31, Maturities/ December 31, (Number of policies) Measurement 2017 Additions terminations 2018 Derivatives not designated as hedges GMWB embedded derivatives Policies 30,450 — (2,564 ) 27,886 Fixed index annuity embedded derivatives Policies 17,067 — (603 ) 16,464 Indexed universal life embedded derivatives Policies 985 — (56 ) 929 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; and (v) 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, 2018: Gain (loss) Gain (loss) reclassified into recognized net income Classification of gain (loss) (Amounts in millions) in OCI from OCI reclassified into net income Interest rate swaps hedging assets $ (261 ) $ 153 Net investment income Interest rate swaps hedging assets — 9 Net investment gains (losses) Interest rate swaps hedging liabilities 16 — Interest expense Foreign currency swaps 4 — Net investment income Total $ (241 ) $ 162 The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the year ended December 31, 2017: Gain (loss) reclassified into Classification of gain Gain (loss) Classification of gain Gain (loss) net income (loss) (loss) reclassified into recognized in (loss) recognized in (Amounts in millions) recognized in OCI from OCI net income (loss) net income (loss) (1) net income (loss) Interest rate swaps hedging assets $ 96 $ 131 Net investment income $ 2 Net investment Interest rate swaps hedging assets — 8 Net investment gains (losses) — Net investment Foreign currency swaps (2 ) — Net investment income — Net investment 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: Gain (loss) reclassified into Classification of gain Gain (loss) Classification of gain Gain (loss) net income (loss) (loss) reclassified into recognized in (loss) recognized in (Amounts in millions) recognized in OCI from OCI net income (loss) net income (loss) (1) net income (loss) Interest rate swaps hedging assets $ 198 $ 112 Net investment income $ 3 Net investment Interest rate swaps hedging assets — 2 Net investment gains (losses) — Net investment Interest rate swaps hedging liabilities (5 ) — Interest expense — Net investment 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 Foreign currency swaps — — Net investment gains (losses) 5 Net investment 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 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) 2018 2017 2016 Derivatives qualifying as effective accounting hedges as of January 1 $ 2,065 $ 2,085 $ 2,045 Cumulative effect of changes in accounting: Stranded tax effects 12 — — Changes to the hedge accounting model, net of deferred taxes of $(1), $— and $— 2 — — Total cumulative effect of changes in accounting 14 — — Current period increases (decreases) in fair value, net of deferred taxes of $50, $(56) and $(64) (194 ) 38 120 Reclassification to net (income) loss, net of deferred taxes of $58, $81 and $43 (104 ) (58 ) (80 ) Derivatives qualifying as effective accounting hedges as of December 31 $ 1,781 $ 2,065 $ 2,085 The total of derivatives designated as cash flow hedges of $1,781 million, net of taxes, recorded in stockholders’ equity as of December 31, 2018 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, $109 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 years ended December 31, 2018, 2017 and 2016, we reclassified $9 million, $6 million and $10 million, respectively, to net income (loss) in connection with forecasted transactions that were no longer considered probable of occurring. Derivatives Not Designated As Hedges We also enter into certain non-qualifying 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, interest rate swaps in a foreign currency and interest rate caps and floors 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 the 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 (loss) recognized in net income (loss) for the effects of derivatives not designated as hedges for the years ended December 31: (Amounts in millions) 2018 2017 2016 Classification of gain (loss) recognized in net income (loss) Interest rate swaps $ 3 $ 4 $ 12 Net investment gains (losses) Interest rate swaps in a foreign currency (5 ) 70 28 Net investment gains (losses) Interest rate swaps related to securitization entities (1) — — (10 ) Net investment gains (losses) Foreign currency swaps (37 ) 14 4 Net investment gains (losses) Credit default swaps — — 1 Net investment gains (losses) Credit default swaps related to securitization entities (1) — 7 18 Net investment gains (losses) Equity index options (34 ) 57 10 Net investment gains (losses) Financial futures 26 (43 ) (111 ) Net investment gains (losses) Equity return swaps (5 ) (22 ) (1 ) Net investment gains (losses) Other foreign currency contracts (26 ) 5 (4 ) Net investment gains (losses) GMWB embedded derivatives (54 ) 78 76 Net investment gains (losses) Fixed index annuity embedded derivatives 15 (84 ) (22 ) Net investment gains (losses) Indexed universal life embedded derivatives 13 8 10 Net investment gains (losses) Total derivatives not designated as hedges $ (104 ) $ 94 $ 11 (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: 2018 2017 (Amounts in millions) Derivatives assets (1) Derivatives liabilities (2) Net derivatives Derivatives assets (1) Derivatives liabilities (2) Net derivatives Amounts presented in the balance sheet: Gross amounts recognized $ 185 $ 169 $ 16 $ 278 $ 47 $ 231 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 185 169 16 278 47 231 Gross amounts not offset in the balance sheet: Financial instruments (3) (66 ) (66 ) — (23 ) (23 ) — Collateral received (84 ) — (84 ) (170 ) — (170 ) Collateral pledged — (536 ) 536 — (288 ) 288 Over collateralization 10 433 (423 ) — 264 (264 ) Net amount $ 45 $ — $ 45 $ 85 $ — $ 85 (1) Included $6 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of December 31, 2018 and 2017, respectively. (2) Does not include amounts related to embedded derivatives and derivatives related to securitization entities as of December 31, 2018 and 2017. (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, several 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. Beginning in 2018, we have renegotiated with many of our counterparties to remove the credit downgrade provisions from the master swap agreements. If the provisions defined in these agreements had been triggered as of December 31, 2018 and 2017, we could have been allowed to claim $45 million and $85 million, respectively. There were no amounts that we would have been required to disburse as of December 31, 2018 and 2017. The chart above excludes embedded derivatives and derivatives related to securitization entities as those derivatives are not subject to master netting arrangements. As of December 31, 2018, no counterparties exercised their rights to terminate or revise the terms of their transactions with us. Credit Derivatives We previously sold protection under single name credit default swaps in combination with purchasing a security to replicate characteristics of similar investments based on the credit quality and term of the credit default swap. Credit default triggers for single name reference entities followed the Credit Derivatives Physical Settlement Matrix published by the International Swaps and Derivatives Association. Under these terms, credit default triggers were defined as bankruptcy, failure to pay or restructuring, if applicable. Our maximum exposure to credit loss equaled the notional value for credit default swaps. In the event of default for credit default swaps, we were typically required to pay the protection holder the full notional value less a recovery rate determined at auction. Our remaining single name credit default swaps matured during the third quarter of 2018. 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: 2018 2017 (Amounts in millions) Notional value Assets Liabilities Notional value Assets Liabilities Investment grade Matures in less than one year $ — $ — $ — $ 39 $ — $ — Total credit default swaps on single name reference entities $ — $ — $ — $ 39 $ — $ — |
Deferred Acquisition Costs
Deferred Acquisition Costs | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Unamortized balance as of January 1 $ 3,999 $ 4,241 $ 4,569 Impact of foreign currency translation (15 ) 12 3 Costs deferred 83 88 150 Amortization, net of interest accretion (316 ) (342 ) (481 ) Unamortized balance as of December 31 3,751 3,999 4,241 Accumulated effect of net unrealized investment (gains) losses (488 ) (1,670 ) (670 ) Balance as of December 31 $ 3,263 $ 2,329 $ 3,571 We regularly review DAC to determine if it is recoverable from future income. In 2018, 2017 and 2016, we performed loss recognition testing and determined that we had premium deficiencies in our fixed immediate annuity products. In 2016, as a result of our loss recognition testing 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 in 2018, 2017 and 2016, we increased our future policy benefit reserves and recognized expenses. See note 9 for additional information related to loss recognition testing on our fixed immediate annuity products. As of December 31, 2018, 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, 2018, due primarily to an increase in interest rates decreasing unrealized investment gains, we decreased the amount recorded in the accumulated effect of net unrealized gains, with an offsetting amount recorded in other comprehensive income (loss). 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 2018, 2017 or 2016 related to our shadow accounting adjustments. In the fourth quarter of 2016, as part of our annual review of assumptions, we increased 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. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets | (7) Intangible Assets The following table presents our intangible assets as of December 31: 2018 2017 (Amounts in millions) Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization PVFP $ 2,115 $ (1,976 ) $ 2,046 $ (1,959 ) Capitalized software 501 (410 ) 475 (384 ) Deferred sales inducements to contractholders 318 (243 ) 280 (221 ) Other 139 (110 ) 130 (81 ) Total $ 3,073 $ (2,739 ) $ 2,931 $ (2,645 ) Amortization expense related to PVFP, capitalized software and other intangible assets for the years ended December 31, 2018, 2017 and 2016 was $75 million, $93 million and $17 million, respectively. Amortization expense related to deferred sales inducements of $22 million, $22 million and $21 million, respectively, for the years ended December 31, 2018, 2017 and 2016 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) 2018 2017 2016 Unamortized balance as of January 1 $ 187 $ 222 $ 205 Interest accreted at 5.60%, 5.38% and 5.15% 10 11 11 Amortization (27 ) (46 ) 6 Unamortized balance as of December 31 170 187 222 Accumulated effect of net unrealized investment (gains) losses (31 ) (100 ) (67 ) Balance as of December 31 $ 139 $ 87 $ 155 We regularly review our assumptions and periodically test PVFP for recoverability in a manner similar to our treatment of DAC. As of December 31, 2018, 2017 and 2016 we believe all of our businesses have sufficient future income and therefore the related PVFP is recoverable. The percentage of the December 31, 2018 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: 2019 5.5 % 2020 5.3 % 2021 4.9 % 2022 4.6 % 2023 4.2 % 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, 2018 | |
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, 2018, 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, 2018 and 2017, we had a reinsurance recoverable of $13,975 million and $14,255 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 Company (“GE”) is obligated 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 by the National Association of Insurance Commissioners (“NAIC”). 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 $10,400 million and $870 million, respectively, as of December 31, 2018 and $10,319 million and $835 million, respectively, as of December 31, 2017 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) 2018 2017 2016 Direct life insurance in-force $ 594,472 $ 625,710 $ 658,931 Amounts assumed from other companies 729 793 861 Amounts ceded to other companies (1) (537,590 ) (562,463 ) (491,466 ) Net life insurance in-force $ 57,611 $ 64,040 $ 168,326 Percentage of amount assumed to net 1 % 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) 2018 2017 2016 2018 2017 2016 Direct: Life insurance $ 881 $ 929 $ 977 $ 881 $ 929 $ 978 Accident and health insurance 2,775 2,732 2,786 2,800 2,756 2,816 Mortgage insurance 1,586 1,571 1,641 1,719 1,154 1,561 Total direct 5,242 5,232 5,404 5,400 4,839 5,355 Assumed: Life insurance 1 38 35 1 38 35 Accident and health insurance 328 337 331 332 341 335 Mortgage insurance 7 7 6 11 2 12 Total assumed 336 382 372 344 381 382 Ceded: Life insurance (576 ) (538 ) (856 ) (576 ) (538 ) (856 ) Accident and health insurance (566 ) (596 ) (629 ) (571 ) (604 ) (638 ) Mortgage insurance (85 ) (74 ) (83 ) (78 ) (74 ) (83 ) Total ceded (1,227 ) (1,208 ) (1,568 ) (1,225 ) (1,216 ) (1,577 ) Net premiums $ 4,351 $ 4,406 $ 4,208 $ 4,519 $ 4,004 $ 4,160 Percentage of amount assumed to net 8 % 10 % 9 % Reinsurance recoveries recognized as a reduction of benefits and other changes in policy reserves amounted to $2,696 million, $2,788 million and $3,008 million during 2018, 2017 and 2016, respectively. |
Insurance Reserves
Insurance Reserves | 12 Months Ended |
Dec. 31, 2018 | |
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: Mortality/ morbidity Interest rate (Amounts in millions) assumption assumption 2018 2017 Long-term care insurance contracts (a) 3.75% - 7.50% $ 23,496 $ 23,332 Structured settlements with life contingencies (b) 1.00% - 8.00% 8,576 8,724 Annuity contracts with life contingencies (b) 1.00% - 8.00% 3,238 3,723 Traditional life insurance contracts (c) 3.00% - 7.50% 2,300 2,387 Supplementary contracts with life contingencies (b) 1.00% - 8.00% 329 303 Accident and health insurance contracts (d) 3.50% - 6.00% 1 3 Total future policy benefits $ 37,940 $ 38,472 (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 1975-80 (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 2018, 2017 and 2016, we performed loss recognition testing and determined that we had premium deficiencies in our fixed immediate annuity products. In 2016, we wrote off the entire DAC balance for our fixed immediate annuity products as discussed in note 6. In addition, primarily as a result of our fixed immediate annuity loss recognition testing in 2018 and 2017, we increased our future policy benefit reserves by $22 million and $89 million, respectively. The premium deficiencies were primarily driven by the low interest rate environment and updated assumptions to future policy charges. 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. Our long-term care insurance products are among the products tested in connection with our annual loss recognition testing. The 2018 and 2017 tests did not result in a premium deficiency and therefore our liability for future policy benefits was sufficient. 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, 2018 and 2017, we accrued future policy benefit reserves of $110 million and $102 million, respectively, in our consolidated balance sheets for profits followed by losses in our long-term care insurance business. current present value of expected losses was approximately $1.1 billion and $2.8 billion as of December 31, 2018 and 2017, respectively. Policyholder Account Balances The following table sets forth our recorded liabilities for policyholder account balances as of December 31: (Amounts in millions) 2018 2017 Annuity contracts $ 10,744 $ 12,272 Funding agreements and FABNs 381 260 Structured settlements without life contingencies 1,329 1,451 Supplementary contracts without life contingencies 636 677 Other 15 15 Total investment contracts 13,105 14,675 Universal and term universal life insurance contracts 9,863 9,520 Total policyholder account balances $ 22,968 $ 24,195 In the fourth quarter of 2018, as part of our annual review of assumptions, we increased our liability for policyholder account balances by $119 million for our universal and term universal life insurance products due principally to lower expected growth in interest rates and emerging mortality experience primarily in our term universal life insurance product. 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. 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, 2018 and 2017, we held $50 million and $37 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 a $28 million letter of credit related to one FHLB 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. As of December 31, 2018 and 2017, these funding agreements and the letter of credit were collateralized by fixed maturity securities with a fair value of $785 million and $388 million, respectively. The amount of funding agreements outstanding with the FHLBs was $594 million and $280 million, respectively, as of December 31, 2018 and 2017 which was included in policyholder account balances. Included in the amount of funding agreements outstanding with the FHLBs as of December 31, 2018 and 2017, are FHLB agreements entered into by our universal life insurance business of $213 million and $20 million, respectively, which were included in universal and term universal life insurance contracts in the table above. 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) 2018 2017 Account values with death benefit guarantees (net of reinsurance): Standard death benefits (return of net deposits) account value $ 1,937 $ 2,365 Net amount at risk $ 3 $ 2 Average attained age of contractholders 75 74 Enhanced death benefits (ratchet, rollup) account value $ 1,969 $ 2,489 Net amount at risk $ 207 $ 114 Average attained age of contractholders 75 74 Account values with living benefit guarantees: GMWBs $ 2,105 $ 2,671 Guaranteed annuitization benefits $ 995 $ 1,198 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, 2018 and 2017, our total liability associated with variable annuity contracts with minimum guarantees was approximately $4,642 million and $5,577 million, respectively. Account value decreased from 2017 principally driven by unfavorable equity market performance and the continued runoff of these products. The liability, net of reinsurance, for our variable annuity contracts with GMDB and guaranteed annuitization benefits was $110 million and $94 million as of December 31, 2018 and 2017, 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, 2018 and 2017, our exposure related to GMWB and guaranteed annuitization benefit contracts that were considered “in the money” was $888 million and $645 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) 2018 2017 Balanced funds $ 2,414 $ 2,998 Equity funds 1,003 1,262 Bond funds 399 498 Money market funds 80 85 Total $ 3,896 $ 4,843 |
Liability for Policy and Contra
Liability for Policy and Contract Claims | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 Liability for policy and contract claims for insurance lines other than short-duration contracts: Long-term care insurance $ 9,516 $ 8,548 Life insurance 243 244 Fixed annuities 23 24 Runoff 14 11 Total 9,796 8,827 Liability for policy and contract claims, net of reinsurance, related to short-duration contracts: U.S. Mortgage Insurance segment 296 454 Australia Mortgage Insurance segment 196 218 Canada Mortgage Insurance segment 84 87 Other mortgage insurance businesses 7 7 Total 583 766 Reinsurance recoverable on unpaid claims related to short-duration contracts: U.S. Mortgage Insurance segment — 1 Total — 1 Total liability for policy and contract claims $ 10,379 $ 9,594 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) 2018 2017 2016 Beginning balance as of January 1 $ 8,548 $ 8,034 $ 6,749 Less reinsurance recoverables (2,292 ) (2,310 ) (2,055 ) Net balance as of January 1 6,256 5,724 4,694 Incurred related to insured events of: Current year 2,548 2,234 2,066 Prior years 130 (183 ) 377 Total incurred 2,678 2,051 2,443 Paid related to insured events of: Current year (201 ) (176 ) (166 ) Prior years (1,814 ) (1,644 ) (1,506 ) Total paid (2,015 ) (1,820 ) (1,672 ) Interest on liability for policy and contract claims 335 301 259 Net balance as of December 31 7,254 6,256 5,724 Add reinsurance recoverables 2,262 2,292 2,310 Ending balance as of December 31 $ 9,516 $ 8,548 $ 8,034 In 2018, the liability for policy and contract claims increased $968 million in our long-term care insurance business largely from the completion of our annual review of assumptions and methodologies in the fourth quarter of 2018 which increased reserves by $308 million and increased reinsurance recoverables by $17 million. Based on this review, we updated several assumptions and methodologies The increase was also attributable to higher severity and frequency of new claims and higher utilization of available benefits in 2018. In 2018, the incurred amount of $130 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 $231 million, net of reinsurance recoverables of $18 million. In 2017, the favorable development of $183 million related to insured events of prior years was primarily attributable to favorable claim terminations, including pending claims that terminate before becoming an active claim. 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 in-force 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. 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 Incurred claims and allocated claim adjustment expenses, net of reinsurance Total of Incurred-But- Not-Reported (Dollar amounts in millions) For the years ended December 31, liabilities Accident year (1) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 claims as of Number of delinquencies (2) Unaudited 2009 $ 1,341 $ 1,697 $ 1,762 $ 1,755 $ 1,752 $ 1,782 $ 1,792 $ 1,799 $ 1,802 $ 1,803 $ — 151,948 2010 — 977 1,157 1,139 1,146 1,165 1,173 1,173 1,174 1,174 — 90,403 2011 — — 910 931 913 929 938 939 939 939 — 69,155 2012 — — — 718 675 671 673 671 668 667 — 48,392 2013 — — — — 475 407 392 387 384 382 — 34,187 2014 — — — — — 328 288 269 261 259 — 26,434 2015 — — — — — — 235 208 187 181 — 21,372 2016 — — — — — — — 198 160 138 1 18,427 2017 — — — — — — — — 171 121 2 18,087 2018 — — — — — — — — — 117 16 11,269 Total incurred $ 5,781 (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, 2018. The information about paid claims development for the years ended December 31, 2009 to 2017 , is presented as supplementary information. (Amounts in millions) Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance Accident year (1) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Unaudited 2009 $ 285 $ 940 $ 1,245 $ 1,434 $ 1,556 $ 1,638 $ 1,709 $ 1,753 $ 1,777 $ 1,794 2010 — 140 567 844 973 1,049 1,109 1,139 1,158 1,167 2011 — — 65 497 722 816 874 906 927 935 2012 — — — 92 391 532 602 634 650 658 2013 — — — — 44 202 297 340 362 372 2014 — — — — — 22 127 195 233 247 2015 — — — — — — 12 85 145 167 2016 — — — — — — — 10 64 110 2017 — — — — — — — — 6 46 2018 — — — — — — — — — 3 Total paid $ 5,499 Total incurred $ 5,781 Total paid 5,499 All outstanding liabilities before 2009, net of reinsurance 14 Liability for policy and contract claims, net of reinsurance $ 296 (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, 2018: 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 9.0 % 39.7 % 25.5 % 11.4 % 6.0 % 3.6 % 2.5 % 1.7 % 1.1 % 0.8 % 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, 2018. The information about the incurred claims development for the years ended December 31, 2009 to 2017 and the historical reported delinquencies as of December 31, 2017 and prior are presented as supplementary information. Incurred claims and allocated claim adjustment expenses Total of (Dollar amounts in millions) (1) For the years ended December 31, liabilities Accident year (2) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 claims as of 2018 (3) Number of delinquencies (4) Unaudited 2009 $ 153 $ 171 $ 193 $ 196 $ 199 $ 198 $ 198 $ 197 $ 197 $ 197 $ — 6,702 2010 — 137 151 169 171 170 169 170 169 169 — 6,601 2011 — — 134 151 153 153 152 151 150 150 — 5,707 2012 — — — 112 111 110 110 109 109 108 — 5,316 2013 — — — — 103 100 98 98 98 97 — 4,949 2014 — — — — — 92 88 86 86 85 — 4,948 2015 — — — — — — 103 92 88 87 — 4,626 2016 — — — — — — — 121 105 94 — 5,133 2017 — — — — — — — — 78 84 — 3,785 2018 — — — — — — — — — 85 24 3,688 Total incurred $ 1,156 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2018. (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 2018 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, 2018. The information about paid claims development for the years ended December 31, 2009 to 2017, is presented as supplementary information. (Amounts in millions) Cumulative paid claims and allocated claim adjustment expenses Accident year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Unaudited 2009 $ 24 $ 128 $ 187 $ 196 $ 197 $ 198 $ 197 $ 197 $ 197 $ 197 2010 — 28 124 166 170 169 169 169 169 169 2011 — — 37 135 152 152 151 151 150 150 2012 — — — 24 100 107 108 108 108 107 2013 — — — — 25 88 96 98 98 97 2014 — — — — — 17 73 83 85 85 2015 — — — — — — 19 74 87 87 2016 — — — — — — — 17 81 91 2017 — — — — — — — — 12 61 2018 — — — — — — — — — 15 Total paid $ 1,059 Total incurred $ 1,156 Total paid 1,059 Other (3) (13 ) All outstanding liabilities before 2009 — Liability for policy and contract claims $ 84 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2018. (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 receiving in the future once the claims have been settled, foreign currency translation and differences in accounting basis under local Canadian International Financial Reporting Standards. The following table sets forth our average payout of incurred claims by age for our Canada Mortgage Insurance segment as of December 31, 2018: Average annual percentage payout of incurred claims, by age Years 1 2 3 4 5 6 7 8 9 10 Percentage of payout 19.4% 63.0% 14.7% 1.7% (0.1 )% (0.2 )% (0.7 )% — % — % — % 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, 2018. The information about the incurred claims development for the years ended December 31, 2009 to 2017 and the historical reported delinquencies as of December 31, 2017 and prior are presented as supplementary information. Incurred claims and allocated claim adjustment expenses Total of (Dollar amounts in millions) (1) For the years ended December 31, liabilities Number of Accident year (2) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 December 31, 2018 reported delinquencies (3) Unaudited 2009 $ 68 $ 117 $ 113 $ 133 $ 131 $ 131 $ 130 $ 131 $ 131 $ 131 $ — 2,389 2010 — 56 110 143 143 141 141 139 139 139 — 2,342 2011 — — 77 147 143 137 135 133 133 132 — 2,339 2012 — — — 73 116 102 98 95 94 95 — 1,896 2013 — — — — 69 90 77 70 67 67 — 1,540 2014 — — — — — 65 91 77 72 70 — 1,433 2015 — — — — — — 76 114 96 93 1 1,549 2016 — — — — — — — 105 140 125 3 2,183 2017 — — — — — — — — 100 135 14 3,342 2018 — — — — — — — — — 96 33 3,215 Total incurred $ 1,083 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2018. (2) Represents the year in which first monthly mortgage payments have been missed by the borrower. (3) Represents outstanding delinquencies plus paid claims as of December 31, 2018 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, 2018. The information about paid claims development for the years ended December 31, 2009 to December 31, 2017, is presented as supplementary information: (Amounts in millions) (1) Cumulative paid claims and allocated claim adjustment expenses Accident year (2) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Unaudited 2009 $ 13 $ 46 $ 77 $ 121 $ 129 $ 130 $ 130 $ 130 $ 131 $ 131 2010 — 6 32 113 134 137 138 139 139 139 2011 — — 5 74 121 130 132 132 132 132 2012 — — — 12 67 86 91 92 93 94 2013 — — — — 10 39 56 62 65 66 2014 — — — — — 6 28 51 64 67 2015 — — — — — — 4 31 71 84 2016 — — — — — — — 7 56 93 2017 — — — — — — — — 10 54 2018 — — — — — — — — — 12 Total paid $ 872 Total incurred $ 1,083 Total paid 872 Other (3) (15 ) All outstanding liabilities before 2009 — Liability for policy and contract claims $ 196 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2018. (2) Represents the year in which 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, 2018: Average annual percentage payout of incurred claims, by age Years 1 2 3 4 5 6 7 8 9 10 Percentage of payout 8.6 % 36.6 % 33.7 % 14.6 % 3.1 % 0.9 % 0.5 % 0.1 % 0.2 % — % |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017, we recorded a liability related to these benefits of $11 million. 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, 2018 and 2017, we recorded a liability related to these plans of $71 million and $77 million, respectively, which we accrued in other liabilities in the consolidated balance sheets. In 2018 and 2017, we recognized an increase of $6 million and a decrease of $5 million, respectively, in OCI. 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, 2018 and 2017, the accumulated postretirement benefit obligation associated with these benefits was $79 million and $89 million, respectively, which we accrued in other liabilities in the consolidated balance sheets. In 2018 and 2017, we recognized an increase of $10 million and $2 million, respectively, in OCI. Our cost associated with our pension, retiree health and life insurance benefit plans was $22 million, $21 million and $18 million for the years ended December 31, 2018, 2017 and 2016, 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 do not vest immediately in Genworth matching contributions but 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, among others. 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 2018, 2017 and 2016. |
Borrowings and Other Financings
Borrowings and Other Financings | 12 Months Ended |
Dec. 31, 2018 | |
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 was originally set to mature on September 29, 2022. On October 26, 2018, Genworth Canada amended its credit agreement whereby the syndicated senior unsecured revolving credit facility was increased from CAD$200 million to CAD$300 million. The maturity date was extended to September 29, 2023. 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 amended credit agreement. The credit facility includes customary representations, warranties, covenants, terms and conditions. As of December 31, 2018, there was no amount outstanding under Genworth Canada’s credit facility and all of the covenants were fully met. (b) Long-Term Borrowings The following table sets forth total long-term borrowings as of December 31: (Amounts in millions) 2018 2017 Genworth Holdings Floating Rate Senior Secured Term Loan Facility, due 2023 $ 445 $ — 6.52% Senior Notes, due 2018 — 597 7.70% Senior Notes, due 2020 397 397 7.20% Senior Notes, due 2021 381 381 7.625% Senior Notes, due 2021 703 704 4.90% Senior Notes, due 2023 399 399 4.80% Senior Notes, due 2024 400 400 6.50% Senior Notes, due 2034 297 297 Floating Rate Junior Subordinated Notes, due 2066 598 598 Subtotal 3,620 3,773 Bond consent fees (32 ) (33 ) Deferred borrowing charges (21 ) (16 ) Total Genworth Holdings 3,567 3,724 Canada 5.68% Senior Notes, due 2020 202 219 4.24% Senior Notes, due 2024 117 128 Subtotal 319 347 Deferred borrowing charges (1 ) (1 ) Total Canada 318 346 Australia Floating Rate Junior Subordinated Notes, due 2025 141 156 Deferred borrowing charges (1 ) (2 ) Total Australia 140 154 Total $ 4,025 $ 4,224 Genworth Holdings Secured Term Loan Facility On March 7, 2018, Genworth Holdings entered into a $450 million senior secured term loan facility (“Term Loan”), which matures in March 2023 and was issued at a 0.5% discount. Principal payments under the agreement are due quarterly, which commenced on June 30, 2018, and are payable in equal amounts of 0.25% per quarter of the original principal amount with the remaining balance due at maturity. At our option, the Term Loan will bear interest at either an adjusted London Interbank Offered Rate (“LIBOR”) no lower than 1.0% plus a margin of 4.5% per annum or an alternate base rate plus a margin of 3.5% per annum. The interest rate on the Term Loan as of December 31, 2018 was 7.0%. We incurred $7 million of borrowing costs that were deferred. The Term Loan is unconditionally guaranteed by Genworth Financial, and has provided a limited recourse guarantee to the lenders of Genworth Holdings’ outstanding Term Loan, which is secured by GFIH’s ownership interest in Genworth Canada’s outstanding common shares. GFIH is our indirect wholly-owned subsidiary and owns approximately 40.5% of the outstanding common stock of Genworth Canada. The Term Loan is subject to other terms and conditions, including but not limited to: voluntary prepayments subject to prepayment penalties, mandatory prepayments in the event of certain asset sales or the incurrence of further indebtedness by Genworth Financial and various financial covenants. Long-Term Senior Notes As of December 31, 2018, Genworth Holdings had outstanding six series of fixed rate senior notes with varying interest rates between 4.80% and 7.70% and maturity dates between 2020 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 October 3, 2018, 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”). Genworth Holdings, Genworth Financial, as guarantor, and the Trustee entered into Supplemental Indenture No. 13 to the Senior Notes Indenture that amended the Senior Notes Indenture to clarify that Genworth Life and Annuity Insurance Company (“GLAIC”) and the subsidiaries of Genworth Life Insurance Company (“GLIC”), GLAIC and Genworth Life Insurance Company of New York (“GLICNY”) are excluded from the class of subsidiaries for which a bankruptcy, insolvency or other similar proceeding would result in an event of default under the Senior Notes Indenture. The amendments to the Senior Notes Indenture became operative on October 4, 2018 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 $11 million, including bond consent fees of $5 million, which were deferred, as well as broker, advisor and investment banking fees of $6 million, which were expensed in the fourth quarter of 2018. On May 22, 2018, Genworth Holdings redeemed $597 million of its 6.52% senior notes that were issued in May 2008 and matured in May 2018 (the “May 2018 senior notes”). A cash payment of $616 million comprising net proceeds of $441 million from the Term Loan and $175 million of existing cash on hand was used to fully redeem the principal and accrued interest balance of the May 2018 senior notes. On March 18, 2016, Genworth Holdings received the requisite consents, pursuant to a solicitation of consents (the “2016 Consent Solicitation”), to amend 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”). 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 GLIC and GLICNY 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 2016 Consent Solicitation. We paid total fees related to the 2016 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. Long-Term Junior Subordinated Notes As of December 31, 2018, 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 LIBOR plus 2.0025% payable quarterly, until the notes mature in November 2066 (“2066 Notes”). 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, 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, 2018, 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, 2018, 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. (c) Non-Recourse Funding Obligations As of December 31, 2018, Rivermont Life Insurance Company I (“Rivermont I”), our wholly-owned special purpose consolidated captive insurance subsidiary, had an outstanding floating rate subordinated note of $311 million, net of $4 million of deferred borrowing charges, due in 2050 with an interest rate 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, 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. The weighted-average interest rates on the non-recourse funding obligations as of December 31, 2018 and 2017 were 4.49% and 3.54%, 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, 2018: (Amounts in millions) Amount 2019 $ — 2020 599 2021 1,084 2022 — 2023 and thereafter (1) 2,712 Total $ 4,395 (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. In 2017, we repaid $75 million, the entire amount due at maturity related to this repurchase agreement. 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, corporate debt securities and equity securities. As of December 31, 2018 and 2017, the fair value of securities loaned under our securities lending program in the United States was $99 million and $258 million, respectively. As of December 31, 2018 and 2017, the fair value of collateral held under our securities lending program in the United States was $102 million and $268 million, respectively, and the offsetting obligation to return collateral of $102 million and $268 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, 2018 and 2017. 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, 2018 and 2017, the fair value of securities loaned under our securities lending program in Canada was $512 million and $382 million, respectively. Risks associated with securities lending programs Our 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: 2018 (Amounts in millions) Overnight and continuous Up to 30 days 31 - 90 days Greater than 90 days Total Securities lending: Fixed maturity securities: Non-U.S. government $ 11 $ — $ — $ — $ 11 U.S. corporate 67 — — — 67 Non-U.S. corporate 23 — — — 23 Subtotal, fixed maturity securities 101 — — — 101 Equity securities 1 — — — 1 Total securities lending $ 102 $ — $ — $ — $ 102 2017 (Amounts in millions) Overnight and continuous Up to 30 days 31 - 90 days Greater than 90 days Total 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 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Domestic $ (63 ) $ 397 $ (283 ) Foreign 511 332 603 Income from continuing operations before income taxes $ 448 $ 729 $ 320 The total provision (benefit) for income taxes was as follows for the years ended December 31: (Amounts in millions) 2018 2017 2016 Current federal income taxes $ 11 $ (32 ) $ 55 Deferred federal income taxes (18 ) (274 ) 115 Total federal income taxes (7 ) (306 ) 170 Current state income taxes 1 1 1 Deferred state income taxes — 6 2 Total state income taxes 1 7 3 Current foreign income taxes 134 192 183 Deferred foreign income taxes 23 (100 ) 2 Total foreign income taxes 157 92 185 Total provision (benefit) for income taxes $ 151 $ (207 ) $ 358 Our current income tax receivable was $41 million as of December 31, 2018. Our current income tax payable was $28 million as of December 31, 2017. 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) 2018 2017 2016 Statutory U.S. federal income tax rate 21.0 % 35.0 % 35.0 % Increase (reduction) in rate resulting from: Effect of foreign operations 7.7 — (1.6 ) Swaps terminated prior to the TCJA 5.1 — — Stock-based compensation 1.3 0.4 1.6 Valuation allowance (1.7 ) (35.4 ) 72.8 Net impact of repatriating foreign earnings — — 2.8 Other, net (0.2 ) 1.5 1.3 TCJA, impact from change in rate 2.7 (21.1 ) — TCJA, impact from foreign operations (2.2 ) (8.8 ) — Effective rate 33.7 % (28.4 )% 111.9 % For the year ended December 31, 2018, the increase in the effective rate compared to the year ended December 31, 2017 was primarily due to the impacts of tax reform in 2017 and a release of our valuation allowance in 2017 that did not recur. The 2018 effective tax rate also included the rate differential on our foreign subsidiaries, which are now taxed at a higher marginal rate than our U.S. businesses and tax expense related to gains on forward starting swaps settled prior to the enactment of the TCJA, which are tax effected at 35% as they are amortized into net investment income. 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 assets. 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. The components of our deferred income taxes were as follows as of December 31: (Amounts in millions) 2018 2017 Assets: Foreign tax credit carryforwards $ 265 $ 603 Net operating loss carryforwards 298 499 State income taxes 326 347 Insurance reserves 706 146 Accrued commission and general expenses 116 127 Net unrealized on derivatives 10 — Investments 5 27 Other 42 34 Gross deferred income tax assets 1,768 1,783 Valuation allowance (334 ) (363 ) Total deferred income tax assets 1,434 1,420 Liabilities: Net unrealized gains on investment securities 153 325 Net unrealized gains on derivatives — 28 DAC 336 396 PVFP and other intangibles 52 38 Insurance reserves transition adjustment 149 134 Other 32 22 Total deferred income tax liabilities 722 943 Net deferred income tax asset $ 712 $ 477 The above valuation allowances of $334 million and $363 million as of December 31, 2018 and 2017, respectively, related to state deferred tax assets, foreign net operating losses and, in 2017, 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. U.S. federal NOL carryforwards amounted to $1,319 million as of December 31, 2018, and, if unused, will expire beginning in 2028. Foreign tax credit carryforwards amounted to $265 million as of December 31, 2018, and, if unused, will begin to expire in 2024. We are in a three-year cumulative pre-tax income position in our U.S. jurisdiction as of December 31, 2018, however, we have been in a three-year cumulative loss position in recent years. A cumulative loss position is considered significant negative evidence in assessing the realizability of our deferred tax assets. Our ability to realize our net deferred tax asset of $712 million, which includes deferred tax assets related to NOL 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 support the expected realization of the net operating losses and foreign tax credit carryforwards. This positive evidence includes the fact that: (i) we are currently in a cumulative three-year income position; (ii) our U.S. operating forecasts are profitable, which include: in-force premium rate increases and associated benefit reductions 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 and favorable changes in U.S. tax legislation under the TCJA; and (iii) 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, along with future projections of foreign source income, is sufficient to cover the foreign tax credits being carried forward. After consideration of all available evidence, we have concluded that it is more likely than not that our deferred tax assets, with the exception of certain foreign net operating losses and state deferred tax assets for which a valuation allowance has been established, will be realized. If our actual results do not validate the current projections of pre-tax income, we may be required to record an additional valuation allowance which 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 five 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 $6 million, $7 million and $10 million for the years ended December 31, 2018, 2017 and 2016, respectively, reflecting accretion of our liability at the Tax Matters Agreement rate of 5.72%. As of December 31, 2018 and 2017, we have recorded the estimated present value of our remaining obligation to GE of $90 million and $119 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) 2018 2017 2016 Balance as of January 1 $ 42 $ 34 $ 28 Tax positions related to the current period: Gross additions 2 2 6 Gross reductions (3 ) (1 ) — Tax positions related to the prior years: Gross additions 40 13 — Gross reductions (2 ) (6 ) — Balance as of December 31 $ 79 $ 42 $ 34 The total amount of unrecognized tax benefits was $79 million as of December 31, 2018, which if recognized would affect the effective tax rate on continuing operations by $43 million. We believe it is reasonably possible that in 2019 potential settlements and other administrative and statutory proceedings/limitations. 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 2018, 2017 and 2016. Our companies have elected to file a single life/non-life consolidated return. All companies domesticated in the United States and our former Bermuda subsidiary, which elected to be taxed as a U.S. domestic company, 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 2014. 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 business is 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 (“Genworth Australia”) for the years 2013-2015. The outcome of their review was a low risk rating for those years. The ATO is intending to carry out a Streamlined Assurance Review of Genworth Australia for the years 2016 and 2017. Our Canada mortgage insurance business generally is 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 the U.S. or Canadian taxing authorities at this time. Due to the complexities involved in accounting for the TCJA enacted in 2017, the U.S. Securities and Exchange Commission (“SEC”) issued Staff Accounting Bulletin (“SAB”) 118, which required companies to include in its financial statements a reasonable estimate of the impact of the TCJA on earnings to the extent such reasonable estimate could be determined. For specific effects of the TCJA for which a reasonable estimate could not be made, SAB 118 allowed companies to continue to apply the tax law in effect before the enactment of the TCJA on December 22, 2017. During 2018, as prescribed by SAB 118, we finalized our provisional estimates for all the changes in tax law under the TCJA and recorded the following: Deferred tax assets and liabilities We recorded a provisional tax benefit of $154 recorded $19 Foreign tax effects We recorded a provisional tax expense of $63 million in 2017 related to the one-time transition tax on mandatory deemed repatriation of earnings and profits. During 2018 we recorded a tax benefit of $10 million related to the one-time transition tax as we refined our calculations of post-1986 foreign earnings and profits previously deferred from U.S. federal taxation, related tax pools and the amounts held in cash and other specified assets. Throughout the measurement period, we analyzed the impact of the Global Intangible Low Taxed Income (“GILTI”) and Base Erosion Anti-Abuse Tax (“BEAT”), including accounting policy elections. As part of this analysis, we evaluated several alternatives for our future tax filings in light of the GILTI provisions. During the fourth quarter of 2018 we completed the accounting for the initial impacts of the provisions and no measurement period adjustments were recorded. Accordingly, we have made a policy election to account for the GILTI tax as incurred (i.e. as a “period cost”) therefore, we have not included deferred taxes on basis differences that may affect the amount of the GILTI inclusion upon reversal. We included the current period impact of the GILTI and BEAT provisions in our 2018 results, which did not have a significant impact on our consolidated financial statements. Insurance reserve transition adjustment We recorded a provisional reclassification in deferred tax assets and liabilities in the amount of $134 million in 2017 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. During 2018, we updated our provisional estimate and identified a measurement period increase to this reclassification of $36 million, which was reflected in our consolidated balance sheet as of December 31, 2018. This measurement period adjustment had no impact on income from continuing operations. State tax effects We have completed the analysis of state income tax effects of the TCJA, including the treatment of the one-time transition tax and GILTI. We determined that the impact to the financial statements was not significant in 2018, and accordingly no measurement period adjustment was recorded . |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information | (14) Supplemental Cash Flow Information Net cash paid for taxes was $197 million, $165 million and $203 million and cash paid for interest was $326 million, $318 million and $381 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
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”) was approved by stockholders. Under the 2012 Omnibus Incentive Plan, we were authorized to grant 16 million equity awards, plus a number of additional shares not to exceed 25 million underlying awards outstanding under the 2004 Omnibus Incentive Plan. In December 2018, the 2018 Genworth Financial, Inc. Omnibus Incentive Plan (the “2018 Omnibus Incentive Plan”), together with the 2004 Omnibus Incentive Plan and the 2012 Omnibus Incentive Plan, the “Omnibus Incentive Plans”, was approved by stockholders. Under the 2018 Omnibus Incentive Plan, we are authorized to grant 25 million equity awards, plus a number of additional shares not to exceed 20 million underlying awards outstanding under the prior Plans. We recorded stock-based compensation expense under the Omnibus Incentive Plans of $35 million, $30 million and $23 million, respectively, for the years ended December 31, 2018, 2017 and 2016. 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 have historically used the Black-Scholes Model. However, no SARs or stock options were granted during 2018, 2017 and 2016 and therefore, the Black-Scholes Model was not used in those respective years. The Black-Scholes Model requires the input of certain assumptions that involve judgment. Circumstances may change and additional data may become available over time, which could result in changes to these assumptions and methodologies. During 2018 and 2017, we issued RSUs with average restriction periods of three years, with a fair value of $3.58 and $4.01, respectively, which were measured at the market price of a share of our Class A Common Stock on the grant date. In 2018 and 2017, we granted performance stock units (“PSUs”) with a fair value of $3.58 and $4.01, 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 2018 and 2017 each have three separate and distinct performance measurement periods, each starting on January 1 going through December 31 for the years ended December 31, 2018, 2019 and 2020 and December 31, 2017, 2018 and 2019, respectively. The performance metric is based on a range of consolidated annual adjusted operating income. The compensation committee of our Board of Directors determines and approves, no later than March 15 following the end of the three-year performance period, the number of units earned and vested for each distinct performance period. For the PSUs granted in 2018 and 2017, for the December 31, 2018 and 2017 performance periods, we recorded $7 million of stock-based compensation expense. 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. For the PSUs granted in 2016, we recorded $9 million of stock-based compensation expense. In 2018 and 2017, 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 and payout after three years. The following table summarizes cash award activity as of December 31, 2018 and 2017: Time-based cash awards Performance-based cash awards (Awards in millions) Number of Number of Balance as of January 1, 2017 16 4 Granted 13 4 Vested (9 ) — Forfeited (2 ) — Balance as of January 1, 2018 18 8 Granted 17 9 Performance adjustment — 1 Vested (10 ) — Forfeited (1 ) (1 ) Balance as of December 31, 2018 24 17 The following table summarizes stock option activity as of December 31, 2018 and 2017: (Shares in thousands) Shares subject to option Weighted-average exercise price Balance as of January 1, 2017 1,814 $ 11.83 Granted — $ — Exercised (8 ) $ 2.46 Expired and forfeited (226 ) $ 15.32 Balance as of January 1, 2018 1,580 $ 11.38 Granted — $ — Exercised (108 ) $ 2.37 Expired and forfeited (354 ) $ 12.88 Balance as of December 31, 2018 1,118 $ 11.77 Exercisable as of December 31, 2018 1,118 $ 11.77 The following table summarizes information about stock options outstanding as of December 31, 2018: Outstanding and Exercisable Exercise price range Shares in thousands Average life (1) Average exercise price $2.46 (2) 200 0.12 $ 2.46 $7.80 – $12.75 65 0.86 $ 8.76 $14.18 840 1.11 $ 14.18 $14.92 13 1.42 $ 14.92 1,118 $ 11.77 (1) Average contractual life remaining in years. (2) Shares for total options outstanding and exercisable each have an aggregate intrinsic value of less than $1 million. The following tables summarize the status of our other equity-based awards as of December 31, 2018 and 2017: 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, 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 January 1, 2018 3,651 $ 5.14 4,584 $ 3.65 1,259 $ 5.70 10,301 $ 3.45 Granted 739 $ 3.58 739 $ 3.58 278 $ 2.54 — $ — Performance adjustment (1) — $ — 236 $ 4.01 — $ — — $ — Exercised (1,881 ) $ 5.84 — $ — (271 ) $ 6.98 (142 ) $ 1.31 Terminated (153 ) $ 4.56 (629 ) $ 6.45 — $ — (1,532 ) $ 3.84 Balance as of December 31, 2018 2,356 $ 4.14 4,930 $ 3.30 1,266 $ 4.76 8,627 $ 3.42 (1) The performance adjustment relates to additional awards expected to be earned through the achievement of certain performance metrics. As of December 31, 2018 and 2017, total unrecognized stock-based compensation expense related to non-vested awards not yet recognized was $6 million and $13 million, respectively. This expense is expected to be recognized over a weighted-average period of approximately one year. In 2018 and 2017, 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 $4 million and $2 million as of December 31, 2018 and 2017, 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, 2018 and 2017: 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, 2017 957 235 64 45 Granted 70 83 10 2 Performance adjustment — 14 — — Exercised (192 ) (92 ) — — Terminated (10 ) (21 ) — — Balance as of January 1, 2018 825 219 74 47 Granted 57 85 11 4 Performance adjustment — 6 — — Exercised (230 ) (65 ) (4 ) (24 ) Terminated (4 ) (14 ) (1 ) (1 ) Balance as of December 31, 2018 648 231 80 26 As of December 31, 2018 and 2017, the DSUs were fully vested and the stock options, RSUs, PSUs and EDSUs were partially vested. For the years ended December 31, 2018, 2017 and 2016, we recorded stock-based compensation expense of $2 million, $11 million and $8 million, respectively. For the years ended December 31, 2018, 2017 and 2016, we estimated total unrecognized expense of $3 million, $4 million and $3 million, respectively, related to these awards. Genworth Australia, our indirect subsidiary and a public company, grants 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, 2018 and 2017: Restricted share rights Long-term incentive plan (Shares in thousands) Shares subject to option Shares subject to option Balance as of January 1, 2017 1,276 920 Granted 382 721 Exercised (633 ) — Terminated (157 ) (154 ) Balance as of January 1, 2018 868 1,487 Granted 198 709 Exercised (523 ) (34 ) Terminated (116 ) (335 ) Balance as of December 31, 2018 427 1,827 As of December 31, 2018 and 2017, none of the restricted share rights balances were vested. For the years ended December 31, 2018, 2017 and 2016, we recorded less than $1 million of stock-based compensation in each year. We also estimated total unrecognized expense of less than $1 million in each of the years ended December 31, 2018, 2017 and 2016 related to these awards. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
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. Apart from certain of our borrowings and certain marketable securities, few of the instruments 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 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: 2018 Notional Carrying Fair value (Amounts in millions) amount amount Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1 ) $ 6,687 $ 6,737 $ — $ — $ 6,737 Restricted commercial mortgage loans (2) (1 ) 62 66 — — 66 Other invested assets (1 ) 248 248 — — 248 Liabilities: Long-term borrowings (3) (1 ) 4,025 3,577 — 3,434 143 Non-recourse funding obligations (3) (1 ) 311 215 — — 215 Investment contracts (1 ) 13,105 13,052 — — 13,052 Other firm commitments: Commitments to fund limited partnerships 539 — — — — — Commitments to fund bank loan investments 33 — — — — — Ordinary course of business lending commitments 73 — — — — — 2017 Notional Carrying Fair value (Amounts in millions) amount amount 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 — — — — — (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 securities, limited partnerships, 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. Limited partnerships Limited partnerships are valued based on comparable market transactions, discounted future cash flows, quoted market prices and/or estimates using the most recent data available for the underlying instrument. We utilize the net asset value (“NAV”) of the underlying fund statements as a practical expedient for fair value. Fixed maturity, short-term investments and equity securities The fair value of fixed maturity, short-term investments and equity 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. 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 or 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 and equity 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. The primary inputs to the valuation of exchange-traded equity securities include quoted prices for the identical instrument. Short-term investments. Short-term investments primarily include commercial paper and other highly liquid debt instruments. The fair value of short-term investments classified as Level 1 is based on quoted prices for the identical instrument. Separate account assets. The fair value of separate account assets is based on the quoted prices of the underlying fund investments and, therefore, represents Level 1 pricing. Level 2 measurements Fixed maturity securities • Third-party pricing services: In estimating the fair value of fixed maturity securities, approximately 91% of our portfolio is priced using third-party pricing sources as of December 31, 2018. These pricing services utilize industry-standard valuation techniques that include market-based approaches, income-based approaches, a combination of market-based and income-based approaches or other proprietary, internally generated models as part of the valuation processes. These third-party pricing vendors maximize the use of publicly available data inputs to generate valuations for each asset class. Priority and type of inputs used may change frequently as certain inputs may be more direct drivers of valuation at the time of pricing. Examples of significant inputs incorporated by third-party pricing services may include sector and issuer spreads, seasoning, capital structure, security optionality, collateral data, prepayment assumptions, default assumptions, delinquencies, debt covenants, benchmark yields, trade data, dealer quotes, credit ratings, maturity and weighted-average life. We conduct regular meetings with our third-party pricing services for the purpose of understanding the methodologies, techniques and inputs used by the third-party pricing providers. 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, 2018: (Amounts in millions) Fair value Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $ 4,631 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 $ 2,501 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 $ 2,378 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 $ 25,702 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 $ 9,759 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 $ 3,009 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 $ 2,921 Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports Other asset-backed $ 3,261 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: A portion of our non-U.S. government, U.S. corporate and non-U.S. corporate securities are valued using internal models. The fair value of these fixed maturity securities were $15 million, $1,062 million, and $546 million, respectively, as of December 31, 2018. Internally modeled securities are primarily private fixed maturity securities where we use market observable inputs such as an interest rate yield curve, published credit spreads for similar securities based on the external ratings of the instrument and related industry sector of the issuer. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps and liquidity premiums are established using inputs from market participants. 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: A portion of our state and political subdivisions, U.S. corporate, non-U.S. corporate, residential mortgage-backed, commercial mortgage-backed and other asset-backed securities are valued using internal models. The primary inputs to the valuation of the bond population include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, duration, call provisions, issuer rating, benchmark yields and credit spreads. Certain private fixed maturity securities are valued using an internal model using market observable inputs such as interest rate yield curve, as well as published credit spreads for similar securities where there are no external ratings of the instrument and include a significant unobservable input. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps are established using inputs from market participants. For structured securities, the primary inputs to the valuation include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, weighted-average coupon, weighted-average maturity, issuer rating, structure of the security, expected prepayment speeds and volumes, collateral type, current and forecasted loss severity, average delinquency rates, vintage of the loans, geographic region, debt service coverage ratios, payment priority with the tranche, benchmark yields and credit spreads. The fair value of our Level 3 fixed maturity securities priced using internal models was $ 3,487 • Broker quotes: A portion of our state and political subdivisions, U.S. corporate, non-U.S. corporate, residential mortgage-backed, commercial mortgage-backed and other asset-backed securities are valued using broker quotes. Broker quotes are obtained from third-party providers that have current market knowledge to provide a reasonable price for securities not routinely priced by third-party pricing services. Brokers utilized for valuation of assets are reviewed annually. The fair value of our Level 3 fixed maturity securities priced by broker quotes was $ 389 Equity securities. The primary inputs to the valuation include broker quotes where the underlying inputs are unobservable and for internal models, structure of the security and issuer rating. 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 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, 2018 and 2017, the impact of non-performance risk resulted in a lower fair value of our GMWB liabilities of $64 million and $63 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 certain borrowings related to securitization entities at fair value. The fair value of these borrowings was 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 determined 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 have impacted the valuation. After considering all relevant inputs, we determined fair value of the borrowings using the net valuation of the underlying assets and derivatives that were backing the borrowings. Accordingly, these instruments were classified as Level 3. Increases in the valuation of the underlying assets or decreases in the derivative liabilities resulted 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. The valuation of interest rate swaps is determined using an income approach. The primary input into the valuation represents the forward interest rate swap curve, which is generally considered an observable input, and results in the derivative being classified as Level 2. For certain interest rate swaps, the inputs into the valuation also include the total returns of certain bonds that would primarily be considered an observable input and result in the derivative being classified as Level 2. Interest rate swaps in a foreign currency. The valuation of interest rate swaps in a foreign currency is determined using an income approach. The primary inputs into the valuation represents the forward interest rate swap curve and foreign currency, which are generally considered observable inputs, and results in the derivative being classified as Level 2. Interest rate swaps related to securitization entities. The valuation of interest rate swaps related to securitization entities was determined using an income approach. The primary input into the valuation represented the forward interest rate swap curve, which was generally considered an observable input, and resulted in the derivative being classified as Level 2. Interest rate caps and floors. The valuation of interest rate caps and floors is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve, forward interest rate volatility and time value component associated with the optionality in the derivative which are generally considered observable inputs and results in the derivatives being classified as Level 2. Inflation indexed swaps. The valuation of inflation indexed swaps was determined using an income approach. The primary inputs into the valuation represented the forward interest rate swap curve, the current consumer price index and the forward consumer price index curve, which were generally considered observable inputs, and resulted in the derivative being classified as Level 2. Foreign currency |
Variable Interest and Securitiz
Variable Interest and Securitization Entities | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017, we had $62 million and $107 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 2018 or 2017. (b) Securitization and Variable Interest Entities Required To Be Consolidated For VIEs related to asset securitization transactions, as of December 31, 2018, 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, 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 entities. 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 as of December 31: (Amounts in millions) 2018 2017 Assets Investments: Restricted commercial mortgage loans $ 62 $ 107 Total investments 62 107 Cash, cash equivalents and restricted cash 1 1 Total assets $ 63 $ 108 Liabilities Borrowings related to securitization entities $ — $ 40 Total liabilities $ — $ 40 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) 2018 2017 2016 Revenues: Net investment income: Restricted commercial mortgage loans $ 7 $ 9 $ 10 Restricted other invested assets — 1 3 Total net investment income 7 10 13 Net investment gains (losses): Derivatives — 7 8 Trading securities — — (57 ) Borrowings related to securitization entities recorded at fair value — — (1 ) Total net investment gains (losses) — 7 (50 ) Other income — — 64 Total revenues 7 17 27 Expenses: Interest expense 2 6 7 Total expenses 2 6 7 Income before income taxes 5 11 20 Provision (benefit) for income taxes 1 (6 ) 7 Net income $ 4 $ 17 $ 13 (c) Borrowings Related To A Consolidated Securitization Entity As of December 31, 2017, we had borrowings related to a securitization entity held by GFCM LLC with an interest rate of 5.7426%, a maturity date of 2035, a principal amount of $40 million and a carrying value of $40 million. These borrowings were required to be paid down as principal was collected on the restricted commercial mortgage loans held by the securitization entity and accordingly the repayment of these borrowings followed the maturity or prepayment, as permitted, of the restricted commercial mortgage loans. During 2018, all of the borrowings related to the securitization entity were repaid due to prepayments made on the related restricted commercial mortgage loans; therefore, as of December 31, 2018, there were no remaining principal or carrying amounts related to these borrowings. |
Insurance Subsidiary Financial
Insurance Subsidiary Financial Information and Regulatory Matters | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018, in accordance with applicable dividend restrictions, our subsidiaries could pay dividends of approximately $500 million to us in 2019 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 2019 at this level if they need to retain capital for growth and to meet capital requirements and desired thresholds. As of December 31, 2018, Genworth Financial’s and Genworth Holdings’ subsidiaries had restricted net assets of $12.1 billion and $11.2 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 debt obligations, our credit and financial strength ratings and such other factors as the Board of Directors deems relevant. Our domestic insurance subsidiaries paid dividends of $60 million (none of which were deemed “extraordinary”), $36 million (paid to our principal life insurance subsidiaries and none of which were deemed “extraordinary”) and $80 million (paid to our principal life insurance subsidiaries and none of which were deemed “extraordinary”) during 2018, 2017 and 2016, respectively. Our international insurance subsidiaries paid dividends of $316 million, $301 million and $457 million during 2018, 2017 and 2016, 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”) and 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”. 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: • In 2018, River Lake VI was granted a permitted accounting practice from the State of Delaware to carry its reserves on a basis similar to U.S. GAAP. Prior to 2018, River Lake VI was granted a permitted accounting practice to carry its excess of loss reinsurance agreement with The Canada Life Assurance Company 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. • In 2018, River Lake IX and X were granted a permitted accounting practice from the State of Vermont to carry their reserves on a basis similar to U.S. GAAP. Prior to 2018, River Lake IX and River Lake X were granted a permitted accounting practice 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. The impact of these permitted practices on our combined U.S. domiciled life insurance subsidiaries’ statutory capital and surplus was zero as of December 31, 2018 and 2017. If permitted practices had not been used, no regulatory event would have been triggered. 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) 2018 2017 2016 Combined statutory net income (loss): Life insurance subsidiaries, excluding captive life reinsurance subsidiaries $ (895 ) $ (272 ) $ (365 ) Mortgage insurance subsidiaries 697 512 448 Combined statutory net income, excluding captive reinsurance subsidiaries (198 ) 240 83 Captive life insurance subsidiaries 1,520 (36 ) (403 ) Combined statutory net income (loss) $ 1,322 $ 204 $ (320 ) As of December 31, (Amounts in millions) 2018 2017 Combined statutory capital and surplus: Life insurance subsidiaries, excluding captive life reinsurance subsidiaries $ 1,880 $ 2,776 Mortgage insurance subsidiaries 3,206 2,772 Combined statutory capital and surplus $ 5,086 $ 5,548 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 $217 million and $245 million as of December 31, 2018 and 2017, respectively. Capital and surplus of our captive life reinsurance subsidiaries included surplus notes (non-recourse funding obligations) of Rivermont I as of December 31, 2018 and 2017, 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, 2018 and 2017, each of our life insurance subsidiaries exceeded the minimum required . The consolidated RBC ratio of our U.S. domiciled life insurance subsidiaries was approximately 199% and 282% as of December 31, 2018 and 2017, respectively. During 2018 and 2017, we established $120 million and $284 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 the second quarter of 2017, the New York State Department of Financial Services (“NYDFS”) required GLICNY, our New York insurance subsidiary, to record an additional $58 million of statutory reserves related to the 2016 asset adequacy analysis. As a result of its year end 2017 asset adequacy analysis, GLICNY recorded an additional $188 million of statutory reserves in the fourth quarter of 2017. 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 $1.6 billion and $1.2 billion, respectively, as of December 31, 2018 and 2017 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, 2018, 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 12.5:1, compared with a risk-to-capital ratio of approximately 12.9:1 as of December 31, 2017. Each government-sponsored enterprise (“GSE”) must meet the private mortgage insurer eligibility requirements (“PMIERs”) 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, 2018 and 2017, we estimate our U.S. mortgage insurance business had available assets of approximately 129% and 121%, respectively, of the required assets under PMIERs. As of December 31, 2018 and 2017, the PMIERs sufficiency ratios were in excess of approximately $750 million and $550 million, respectively, of available assets above the PMIERs requirements. Reinsurance transactions provided an aggregate of approximately 550 International insurance subsidiaries—statutory financial information Our international insurance subsidiaries also prepare financial statements in accordance with local regulatory requirements. Our international insurance subsidiaries do not have any material accounting practices that differ from local regulatory requirements. As of December 31, 2018 and 2017, combined local statutory capital and surplus of our international insurance subsidiaries was $4.6 billion and $5.0 billion, respectively. Combined local statutory net income (loss) included in continuing operations for our international insurance subsidiaries was $421 million, $548 million and $536 million for the years ended December 31, 2018, 2017 and 2016, respectively. The regulatory authorities in these international jurisdictions generally establish supervisory solvency requirements. Our international insurance subsidiaries had combined surplus levels that exceeded local solvency requirements by $854 million and $988 million as of December 31, 2018 and 2017, respectively. 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, was $6 million as of December 31, 2018 and 2017. $4 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, 2018, the risk in-force of the business subject to the guarantee was approximately $1.5 billion. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
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. On December 22, 2017, the TCJA was signed into law. The TCJA reduced the U.S. corporate federal income tax rate to 21% effective for taxable years beginning on January 1, 2018 and migrated the worldwide tax system to a territorial international tax system. Therefore, beginning on January 1, 2018 we taxed our international businesses at their local statutory tax rates and our domestic businesses at the new enacted tax rate of 21%. 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. 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 (loss) 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. Beginning in the first quarter of 2018, we assumed a tax rate of 21% on certain adjustments to reconcile net income available to Genworth Financial, Inc.’s common stockholders and adjusted operating income available to Genworth Financial, Inc.’s common stockholders (unless otherwise indicated). In 2017 and 2016, we assumed a tax rate of 35%, the previous U.S. corporate federal income tax rate prior to the enactment of the TCJA, on certain 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. These adjustments are also net of the portion attributable to noncontrolling interests and net investment gains (losses) are adjusted for DAC and other intangible amortization and certain benefit reserves. In 2018, 2017 and 2016, we recorded a pre-tax expense of $2 million, $2 million and $22 million, respectively, related to restructuring costs as part of an expense reduction plan as we continue to evaluate and appropriately size our 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. There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented other than the following items. In 2018 and 2016, we incurred fees related to Genworth Holdings’ bond consent solicitation of $6 million and $18 million, respectively, 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: 2018 U.S. Mortgage Insurance Canada Mortgage Insurance Australia Mortgage Insurance U.S. Life Insurance Runoff Corporate and Other Total (Amounts in millions) Premiums $ 746 $ 525 $ 373 $ 2,867 $ — $ 8 $ 4,519 Net investment income 93 138 67 2,781 174 9 3,262 Net investment gains (losses) — (137 ) (15 ) 29 (33 ) 10 (146 ) Policy fees and other income 2 — 2 641 153 (3 ) 795 Total revenues 841 526 427 6,318 294 24 8,430 Benefits and other changes in policy reserves 36 78 110 5,416 39 5 5,684 Interest credited — — — 461 150 — 611 Acquisition and operating expenses, net of deferrals 169 70 65 584 57 52 997 Amortization of deferred acquisition costs and intangibles 14 43 43 257 33 1 391 Interest expense — 18 9 16 — 256 299 Total benefits and expenses 219 209 227 6,734 279 314 7,982 Income (loss) from continuing operations before income taxes 622 317 200 (416 ) 15 (290 ) 448 Provision (benefit) for income taxes 132 84 60 (68 ) 2 (59 ) 151 Income (loss) from continuing operations 490 233 140 (348 ) 13 (231 ) 297 Loss from discontinued operations, net of taxes — — — — — — — Net income (loss) 490 233 140 (348 ) 13 (231 ) 297 Less: net income attributable to noncontrolling interests — 108 70 — — — 178 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 490 $ 125 $ 70 $ (348 ) $ 13 $ (231 ) $ 119 Total assets $ 3,583 $ 5,038 $ 2,534 $ 79,799 $ 9,963 $ 6 $ 100,923 2017 U.S. Mortgage Insurance Canada Mortgage Insurance Australia Mortgage Insurance U.S. Life Insurance Runoff Corporate and Other 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. Mortgage Insurance Canada Mortgage Insurance Australia Mortgage Insurance U.S. Life Insurance Runoff Corporate and Other 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 ) (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) 2018 2017 2016 Revenues: U.S. Mortgage Insurance segment $ 841 $ 772 $ 726 Canada Mortgage Insurance segment 526 780 645 Australia Mortgage Insurance segment 427 (40 ) 440 U.S. Life Insurance segment: Long-term care insurance 4,197 4,062 4,037 Life insurance 1,430 1,591 1,381 Fixed annuities 691 818 832 U.S. Life Insurance segment 6,318 6,471 6,250 Runoff segment 294 339 302 Corporate and Other activities 24 (27 ) 6 Total revenues $ 8,430 $ 8,295 $ 8,369 (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) 2018 2017 2016 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 119 $ 817 $ (277 ) Add: net income attributable to noncontrolling interests 178 110 210 Net income (loss) 297 927 (67 ) Loss from discontinued operations, net of taxes — (9 ) (29 ) Income (loss) from continuing operations 297 936 (38 ) Less: income from continuing operations attributable to noncontrolling interests 178 110 210 Income (loss) from continuing operations available to Genworth Financial, Inc.’s 119 826 (248 ) Adjustments to income (loss) from continuing operations available to Genworth Net investment (gains) losses, net (1) 68 (202 ) (66 ) (Gains) losses from sale of businesses — — (3 ) (Gains) losses on early extinguishment of debt, net — — (48 ) Losses from life block transactions — — 9 Expenses related to restructuring 2 2 22 Fees associated with bond consent solicitation 6 — 18 Taxes on adjustments (16 ) 70 — Adjusted operating income (loss) available to Genworth Financial, Inc.’s $ 179 $ 696 $ (316 ) (1) For the years ended December 31, 2018, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(12) million, $(3) million and $(14) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $(66) million, $66 million and $20 million, respectively. (Amounts in millions) 2018 2017 2016 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: U.S. Mortgage Insurance segment $ 490 $ 311 $ 250 Canada Mortgage Insurance segment 187 157 146 Australia Mortgage Insurance segment 76 (88 ) 62 U.S. Life Insurance segment: Long-term care insurance (348 ) 59 (200 ) Life insurance (107 ) (79 ) (83 ) Fixed annuities 79 42 68 U.S. Life Insurance segment (376 ) 22 (215 ) Runoff segment 35 51 28 Corporate and Other activities (233 ) 243 (587 ) Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ 179 $ 696 $ (316 ) (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: 2018 (Amounts in millions) United Canada Australia Other Countries Total International Total Total revenues $ 7,468 $ 526 $ 427 $ 9 $ 962 $ 8,430 Income (loss) from continuing operations $ (72 ) $ 233 $ 140 $ (4 ) $ 369 $ 297 Net income (loss) $ (72 ) $ 233 $ 140 $ (4 ) $ 369 $ 297 Total assets $ 93,296 $ 5,038 $ 2,534 $ 55 $ 7,627 $ 100,923 2017 (Amounts in millions) United Canada Australia Other Countries Total International 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 Countries Total International 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 ) |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Results of Operations (unaudited) | (20) Quarterly Results of Operations (unaudited) Our unaudited quarterly results of operations for the year ended December 31, 2018 are summarized in the table below. Three months ended (Amounts in millions, except per share amounts) March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Total revenues (1) $ 2,115 $ 2,159 $ 2,143 $ 2,013 Total benefits and expenses (2) $ 1,887 $ 1,799 $ 1,870 $ 2,426 Income (loss) from continuing operations (3) $ 165 $ 249 $ 210 $ (327 ) Loss from discontinued operations, net of taxes $ — $ — $ — $ — Net income (loss) (3) $ 165 $ 249 $ 210 $ (327 ) interests noncontrollingNet income attributable to (4) $ 53 $ 59 $ 64 $ 2 Financial, Inc.’s common stockholders GenworthNet income (loss) available to (3) $ 112 $ 190 $ 146 $ (329 ) Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.22 $ 0.38 $ 0.29 $ (0.66 ) Diluted $ 0.22 $ 0.38 $ 0.29 $ (0.66 ) Net income (loss) available to Genworth Financial, Inc.’s common Basic $ 0.22 $ 0.38 $ 0.29 $ (0.66 ) Diluted $ 0.22 $ 0.38 $ 0.29 $ (0.66 ) Weighted-average common shares outstanding: Basic 499.6 500.6 500.7 500.8 Diluted (5) 502.7 502.6 503.3 500.8 (1) Includes net investment losses of $114 million in the fourth quarter of 2018 primarily from our Canada Mortgage Insurance segment. These losses were primarily related to derivative losses on foreign currency swaps and forwards, and losses on preferred equity securities primarily driven by a decrease in interest rates in Canada during the fourth quarter of 2018. (2) Our long-term care insurance business completed its annual review of claim reserves in the fourth quarter of 2018, which resulted in higher total benefits and expenses of $291 million driven mostly by updates to several assumptions and methodologies, including benefit utilization rates, claim termination rates and other assumptions. Also in our long-term care insurance business, we refined our estimate of unreported policy terminations, which resulted in an unfavorable reserve adjustment of $36 million in 2018. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2018, which resulted in higher total benefits and expenses of $108 million in our universal and term universal life insurance products driven mostly by lower expected growth in interest rates and emerging mortality experience primarily in our term universal life insurance product. (3) In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. (4) Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above, of which the amount attributable to noncontrolling interests was $45 million, net of taxes. (5) 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 December 31, 2018, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended December 31, 2018, as the inclusion of shares for stock options, RSUs and SARs of 7.6 million 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 December 31, 2018, dilutive potential weighted-average common shares outstanding would have been 508.4 million. 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 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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 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. In February 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 second shareholder derivative suit filed by Martin Cohen in the Court of Chancery of the State of Delaware. The case was captioned Cohen v. McInerney, et al . On February 23, 2016, the Court of Chancery of the State of Delaware consolidated these derivative suits under the caption Genworth Financial, Inc. Consolidated Derivative Litigation . On March 28, 2016, plaintiffs in the consolidated action filed an amended complaint. The amended complaint alleges breaches of fiduciary duties concerning Genworth’s long-term care insurance reserves and concerning Genworth’s Australian mortgage insurance business, including our plans for an IPO of the business and seeks unspecified damages, costs, attorneys’ fees and such equitable relief as the court may deem proper. The amended consolidated complaint also adds Genworth’s current chief financial officer as a defendant, based on the current chief financial officer’s alleged conduct in her former capacity as Genworth’s controller and principal accounting officer. We moved to dismiss the consolidated action on May 27, 2016. Thereafter, plaintiffs filed a substantially similar second amended complaint which we moved to dismiss on September 16, 2016. The motion is fully briefed and awaiting disposition by the court. The action is stayed pending the completion of the proposed China Oceanwide transaction. 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. The complaint alleges that Genworth’s board of directors wrongfully refused plaintiff’s demand to commence litigation on behalf of Genworth and asserts claims for breaches of fiduciary duties, waste, contribution and indemnification, and unjust enrichment concerning Genworth’s long-term care insurance reserves and concerning Genworth’s Australian mortgage insurance business, including our plans for an IPO of the business, and seeks unspecified damages, costs, attorneys’ fees and such equitable relief as the court may deem proper. We filed a motion to dismiss on November 14, 2016. The action is stayed pending the completion of the proposed China Oceanwide transaction. In January 2017, two putative stockholder class action lawsuits, captioned Rice v. Genworth Financial Incorporated , et al , and James v. Genworth Financial, Inc. et al, were filed in the United States District Court for the Eastern District of Virginia, Richmond Division, against Genworth and its board of directors. A third putative stockholder class action lawsuit captioned Rosenfeld Family Trust v. Genworth Financial, Inc. et al, was filed in the United States District Court for the District of Delaware against Genworth and its board of directors. In February 2017, a fourth putative class action lawsuit captioned Chopp v. Genworth Financial, Inc . et al, was filed in the United States District Court for the District of Delaware against Genworth and its board of directors and a fifth putative class action lawsuit captioned Ratliff v. Genworth Financial, Inc . et al, was filed in the United States District Court for the Eastern District of Virginia, Richmond Division, against Genworth and its board of directors. The complaints in all five actions allege, among other things, that the preliminary proxy statement filed by Genworth with the SEC on December 21, 2016 contains false and/or materially misleading statements and/or omits material information. The complaints assert claims under Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, and seek equitable relief, including declaratory and injunctive relief, and an award of attorneys’ fees and expenses. On February 2, 2017, the plaintiff in Rice filed a motion for a preliminary injunction to enjoin the transaction described in the preliminary proxy. On February 10, 2017, defendants filed an opposition to the preliminary injunction motion in the Rice action. Also on February 10, 2017, the plaintiff in Rosenfeld Family Trust filed a motion for a preliminary injunction to enjoin the transaction described in the preliminary proxy. On February 14, 2017, defendants filed a motion to transfer the Rosenfeld Family Trust action to the Eastern District of Virginia. On February 15, 2017, defendants filed a motion to transfer the Chopp action to the Eastern District of Virginia. On February 21, 2017, the parties to the Eastern District of Virginia actions ( Rice, James and Ratliff ) reached an agreement in principle to resolve the pending preliminary injunction motion in the Eastern District of Virginia through additional disclosure prior to the March 7, 2017 stockholder vote on the proposed merger transaction. On February 22, 2017, the plaintiffs in the Eastern District of Virginia withdrew their preliminary injunction motion in consideration of the agreed disclosures to be filed in a Form 8-K by February 24, 2017. Also on February 22, 2017, the court in the District of Delaware suspended briefing on the motion for preliminary injunction in the Rosenfeld Family Trust action and entered an order transferring the Rosenfeld Family Trust and Chopp actions to the Eastern District of Virginia. On February 23, 2017, the court in the Eastern District of Virginia set the Rosenfeld Family Trust preliminary injunction motion for a hearing on March 1, 2017. On February 26, 2017, defendants filed an opposition to the preliminary injunction motion in the Rosenfeld Family Trust action. On February 27, 2017, the parties in the Rosenfeld Family Trust action reached an agreement in principle to resolve the pending preliminary injunction motion in the Rosenfeld Family Trust action through additional disclosure prior to the March 7, 2017 stockholder vote on the proposed merger transaction, and the plaintiff in the Rosenfeld Family Trust action withdrew its preliminary injunction motion in consideration of the agreed disclosures as filed in a Form 8-K on February 28, 2017. On March 6, 2017, the court in the Eastern District of Virginia entered an order setting a schedule for proceedings to appoint a lead plaintiff and lead counsel for the purported class action. On March 7, 2017, the court in the Eastern District of Virginia consolidated the Rice , James , Ratliff , Rosenfeld Family Trust , and Chopp actions. On July 5, 2017, the court in the Eastern District of Virginia heard oral argument on the motion to appoint a lead plaintiff and lead counsel. On August 25, 2017, the court in the Eastern District of Virginia entered an order appointing the plaintiffs Alexander Rice and Brian James as lead plaintiffs and their counsel as lead counsel. In November 2017, the parties reached an agreement in principle to settle the action based upon the previously provided additional disclosures, subject to confirmatory discovery and court approval. On April 4, 2018, the parties entered into a stipulation of settlement. On April 24, 2018, the court in the Eastern District of Virginia entered an order preliminarily approving the settlement and following a July 3, 2018 hearing, granted final approval of the settlement and dismissed the action. In December 2017, Genworth Holdings and Genworth Financial were named as defendants in an action captioned AXA S.A. v. Genworth Financial International Holdings, Inc., et al., in the High Court of Justice, Business and Property Courts of England and Wales. In the action, AXA seeks in excess of £28 million on an indemnity provided for in the 2015 agreement pursuant to which Genworth sold to AXA two insurance companies, Financial Insurance Company Limited (“FICL”) and Financial Assurance Company Limited (“FACL”), relating to alleged remediation it has paid to customers who purchased payment protection insurance. AXA also alleges that it is incurring losses on an ongoing basis and therefore that further, significantly larger, sums will be demanded. In February 2018, Genworth served a Particulars of Defence and counterclaim against AXA, and also served other counterclaims against various parties, including Santander Cards UK Limited (“Santander”), alleging that Santander is responsible for any remediation paid to payment protection insurance customers. AXA and Santander have applied to the court for orders dismissing or staying the counterclaims. A hearing on those applications was held in October 2018, and the court dismissed our counterclaims. On November 15, 2018, AXA amended its claim and updated its demand to £237 million. We filed our amended Particulars of Defence and amended counterclaim on December 13, 2018, seeking, among other forms of relief, a declaration that in the event we make any payment to AXA pursuant to the indemnity, we are subrogated to FICL’s and FACL’s rights against Santander with respect to those amounts. We intend to continue to vigorously defend this action. In September 2018, GLAIC, our indirect wholly-owned subsidiary, was named as a defendant in a putative class action lawsuit pending in the United States District Court for the Eastern District of Virginia captioned TVPX ARX INC., as Securities Intermediary for Consolidated Wealth Management, LTD. on behalf of itself and all others similarly situated v. Genworth Life and Annuity Insurance Company . The Plaintiff is alleging unlawful and excessive cost of insurance charges were imposed on policyholders. The complaint asserts claims for breach of contract, alleging that Genworth improperly considered non-mortality factors when calculating cost of insurance rates and failed to decrease cost of insurance charges in light of improved expectations of future mortality, and seeks unspecified compensatory damages, costs, and equitable relief. On October 29, 2018, we filed a motion to enforce in the Middle District of Georgia, and a motion to dismiss and motion to stay in the Eastern District of Virginia. We moved to enjoin the prosecution of the Eastern District of Virginia action on the basis that it involves claims released in a prior nationwide class action settlement that was approved by the Middle District of Georgia. Plaintiff filed an amended complaint on November 13, 2018. On November 16, 2018, the Eastern District of Virginia court stayed the case for 60 days. On December 6, 2018, we moved the Middle District of Georgia for leave to file our counterclaim, which alleges that Plaintiff breached the prior settlement agreement by filing its current action. The motion to enjoin is fully briefed and awaiting disposition by the court. A hearing on our motion to enjoin and motion for leave to file our counterclaim occurred on February 21, 2019. We intend to continue to vigorously defend this action. In September 2018, we were named as a defendant in a putative class action lawsuit pending in the Court of Chancery of the State of Delaware captioned Richard F. Burkhart, William E. Kelly, Richard S. Lavery, Thomas R. Pratt, Gerald Green, individually and on behalf of all other persons similarly situated v. Genworth et al . The Plaintiffs are alleging that GLIC, our indirect wholly-owned subsidiary, failed to maintain adequate capital capable of meeting its obligations to GLIC policyholders and agents. The complaint alleges causes of action for intentional fraudulent transfer and constructive fraudulent transfer, and seeks injunctive relief. We moved to dismiss this action in December 2018. On January 29, 2019, the Plaintiffs exercised their right to amend their complaint. We intend to continue to vigorously defend this action. In January 2019, Genworth Financial and GLIC were named as defendants in a putative class action lawsuit pending in the United States District Court for the Eastern District of Virginia captioned Jerome Skochin, Susan Skochin, and Larry Huber, individually and on behalf of all other persons similarly situated v. Genworth Financial, Inc. and Genworth Life Insurance Company alleging that Genworth made misleading and inadequate disclosures regarding premium increases for long-term care insurance policies. The complaint asserts claims for breach of the implied covenant of good faith and fair dealing, fraudulent inducement and violation of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law (on behalf of the two named Plaintiffs who are Pennsylvania residents), and seeks damages (including statutory treble damages under Pennsylvania law) in excess of $5 million. We intend to vigorously defend this action. 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, 2018, we were committed to fund $539 million in limited partnership investments, $41 million in U.S. commercial mortgage loan investments and $32 million in private placement investments. As of December 31, 2018, we were committed to fund $33 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 $ 25 |
Changes In Accumulated Other Co
Changes In Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
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 gains (1) Derivatives as hedges (2) Foreign and other Total Balances as of January 1, 2018 $ 1,085 $ 2,065 $ (123 ) $ 3,027 Cumulative effect of changes in accounting 164 14 (47 ) 131 OCI before reclassifications (653 ) (194 ) (301 ) (1,148 ) Amounts reclassified from (to) OCI (18 ) (104 ) — (122 ) Current period OCI (671 ) (298 ) (301 ) (1,270 ) Balances as of December 31, 2018 before noncontrolling interests 578 1,781 (471 ) 1,888 Less: change in OCI attributable to noncontrolling interests (17 ) — (139 ) (156 ) Balances as of December 31, 2018 $ 595 $ 1,781 $ (332 ) $ 2,044 (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 gains (losses) (1) Derivatives as hedges (2) Foreign translation adjustments 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 unrealized (1) Derivatives (2) Foreign translation 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. The foreign currency translation and other adjustments balance in the charts above included $(2) million, $(13) million and $(11) million, respectively, net of taxes of $1 million, $6 million and $5 million, respectively, related to a net unrecognized postretirement benefit obligation as of December 31, 2018, 2017 and 2016. The balance also included taxes of $(45) million, $— and $19 million, respectively, related to foreign currency translation adjustments as of December 31, 2018, 2017 and 2016. These balances include the impact of adopting new accounting guidance related to stranded tax effects. The following table shows reclassifications out of accumulated other comprehensive income (loss), net of taxes, for the periods presented: Amount reclassified from accumulated Affected line item in the Years ended December 31, consolidated statements (Amounts in millions) 2018 2017 2016 of income Net unrealized investment (gains) losses: Unrealized (gains) losses on investments (1) $ (23 ) $ (157 ) $ (88 ) Net investment (gains) losses (Provision) benefit for income taxes 5 55 31 (Provision) benefit for income taxes Total $ (18 ) $ (102 ) $ (57 ) Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (153 ) $ (131 ) $ (112 ) Net investment income Interest rate swaps hedging assets (9 ) (8 ) (2 ) Net investment (gains) losses Inflation indexed swaps — — (2 ) Net investment income Inflation indexed swaps — — (7 ) Net investment (gains) losses (Provision) benefit for income taxes 58 81 43 (Provision) benefit for income taxes Total $ (104 ) $ (58 ) $ (80 ) (1) Amounts exclude adjustments to DAC, PVFP, sales inducements and benefit reserves. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2018 | |
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 57.0% 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 2018, 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 6, 2019, up to an aggregate of approximately 4.5 million of its issued and outstanding common shares. During 2018, Genworth Canada repurchased approximately 2.4 million of its shares for CAD$100 million through the NCIB. We participated in order to maintain our ownership position of approximately 57.0% and received $41 million in cash. Of the $41 million of cash proceeds received, $14 million was paid as a dividend to Genworth Holdings in 2018, $13 million was retained by GMICO and we expect the remaining amount of $14 million to be paid to Genworth Holdings as a dividend in the first quarter of 2019. If Genworth Canada decides to repurchase additional shares through the NCIB, we intend to participate in order to maintain our overall ownership at its current level. In May 2017, Genworth Canada repurchased approximately 1.1 million of its shares for CAD$40 million in 2017 through the NCIB. As the majority shareholder, we participated in order to maintain our ownership position and received $18 million in cash. Of the $18 million of cash proceeds received, $12 million was paid as a dividend to Genworth Holdings and $6 million was retained by GMICO. In March 2018, Genworth Canada approximately 1.2 million shares for CAD$50 million. We participated in order to maintain our ownership position and received $22 million in cash. Of the $22 million of cash proceeds received, $16 million was paid as a dividend to Genworth Holdings and $6 million was retained by GMICO. In 2018, 2017 and 2016, dividends of $57 million, $54 million and $50 million, respectively, were paid to the noncontrolling interests of Genworth Canada. Australia In May 2014, Genworth Australia, a holding company for our 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 approximately 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 May 2018, 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. Pursuant to the program, Genworth Australia repurchased approximately 36 million of its shares for AUD$100 million. 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 $37 million in cash, which was paid as dividends to Genworth Holdings. 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. 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 and received $20 million in cash, which was paid as dividends to Genworth Holdings. In February 2018, Genworth Australia completed its share repurchases under this program, repurchasing approximately 19 million of its shares for AUD$49 million. We participated in on-market sales transactions to maintain our ownership position and received $20 million in cash, which was paid as a dividend to Genworth Holdings. 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%. In 2018, 2017 and 2016, dividends of $40 million, $53 million and $88 million, respectively, were paid to the noncontrolling interests of Genworth Australia. |
Sale of Businesses
Sale of Businesses | 12 Months Ended |
Dec. 31, 2018 | |
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 finalized the accounting of the sale through a purchase price adjustment by recording a net after-tax gain of $18 million comprised of a pre-tax loss of $9 million and a tax benefit of $27 million primarily related to the reversal of a deferred tax valuation allowance. The sale was completed based upon the final receipt of net proceeds of approximately $50 million. The $18 million net gain refined the previously recognized loss on sale of $140 million recorded in 2015. Lifestyle protection insurance On December 1, 2015, we completed the sale of our lifestyle protection insurance business and received approximately $400 million of net proceeds, and 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). 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, 2018 | |
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 and subordinated notes and the holders of the senior and subordinated notes, on an unsecured unsubordinated and subordinated basis, respectively, 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 outstanding subordinated notes, and the full and punctual payment of all other amounts payable by Genworth Holdings under the senior and subordinated notes indentures in respect of such senior and subordinated notes. The following condensed consolidating financial information of Genworth Financial and its direct and indirect subsidiaries has 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, 2018 and 2017 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, 2018, 2017 and 2016. The condensed consolidating financial information reflects Genworth Financial (“Parent Guarantor”), Genworth Holdings (“Issuer”) and each of Genworth Financial’s other direct and indirect subsidiaries (the “All Other Subsidiaries”) on a combined basis, none of which guarantee the senior notes or subordinated notes, as well as the eliminations necessary to present Genworth Financial’s financial information on a consolidated basis and total consolidated amounts. The accompanying condensed consolidating financial information is presented based on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the subsidiaries’ cumulative results of operations, capital contributions and distributions, and other changes in equity. Elimination entries include consolidating and eliminating entries for investments in subsidiaries and intercompany activity. The following table presents the condensed consolidating balance sheet information as of December 31, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ — $ 59,861 $ (200 ) $ 59,661 Equity securities, at fair value — — 655 — 655 Commercial mortgage loans — — 6,687 — 6,687 Restricted commercial mortgage loans related to securitization entities — — 62 — 62 Policy loans — — 1,861 — 1,861 Other invested assets — 86 1,104 (2 ) 1,188 Investments in subsidiaries 12,570 11,462 — (24,032 ) — Total investments 12,570 11,548 70,230 (24,234 ) 70,114 Cash, cash equivalents and restricted cash — 429 1,748 — 2,177 Accrued investment income — — 679 (4 ) 675 Deferred acquisition costs — — 3,263 — 3,263 Intangible assets and goodwill — — 347 — 347 Reinsurance recoverable — — 17,278 — 17,278 Other assets 15 62 397 — 474 Intercompany notes receivable — 180 6 (186 ) — Deferred tax assets 14 907 (185 ) — 736 Separate account assets — — 5,859 — 5,859 Total assets $ 12,599 $ 13,126 $ 99,622 $ (24,424 ) $ 100,923 Liabilities and stockholders’ equity Liabilities: Future policy benefits $ — $ — $ 37,940 $ — $ 37,940 Policyholder account balances — — 22,968 — 22,968 Liability for policy and contract claims — — 10,379 — 10,379 Unearned premiums — — 3,546 — 3,546 Other liabilities 27 97 1,565 (7 ) 1,682 Intercompany notes payable 122 207 57 (386 ) — Non-recourse funding obligations — — 311 — 311 Long-term borrowings — 3,567 458 — 4,025 Deferred tax liability — — 24 — 24 Separate account liabilities — — 5,859 — 5,859 Total liabilities 149 3,871 83,107 (393 ) 86,734 Equity: Common stock 1 — 3 (3 ) 1 Additional paid-in capital 11,987 9,095 18,425 (27,520 ) 11,987 Accumulated other comprehensive income (loss) 2,044 2,144 2,060 (4,204 ) 2,044 Retained earnings 1,118 (1,984 ) (6,012 ) 7,996 1,118 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 12,450 9,255 14,476 (23,731 ) 12,450 Noncontrolling interests — — 2,039 (300 ) 1,739 Total equity 12,450 9,255 16,515 (24,031 ) 14,189 Total liabilities and equity $ 12,599 $ 13,126 $ 99,622 $ (24,424 ) $ 100,923 The following table presents the condensed consolidating balance sheet information as of December 31, 2017: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ — $ 62,725 $ (200 ) $ 62,525 Equity securities, 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, cash equivalents and restricted cash — 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 27 807 (330 ) — 504 Separate account assets — — 7,230 — 7,230 Total assets $ 13,591 $ 14,753 $ 103,803 $ (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 — — 27 — 27 Separate account liabilities — — 7,230 — 7,230 Total liabilities 173 4,102 86,117 (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 $ 14,753 $ 103,803 $ (26,850 ) $ 105,297 The following table presents the condensed consolidating income statement information for the year ended December 31, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Revenues: Premiums $ — $ — $ 4,519 $ — $ 4,519 Net investment income (3 ) 14 3,266 (15 ) 3,262 Net investment gains (losses) — 16 (162 ) — (146 ) Policy fees and other income — — 798 (3 ) 795 Total revenues (3 ) 30 8,421 (18 ) 8,430 Benefits and expenses: Benefits and other changes in policy reserves — — 5,684 — 5,684 Interest credited — — 611 — 611 Acquisition and operating expenses, net of deferrals 33 10 954 — 997 Amortization of deferred acquisition costs and intangibles — — 391 — 391 Interest expense 2 268 47 (18 ) 299 Total benefits and expenses 35 278 7,687 (18 ) 7,982 Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries (38 ) (248 ) 734 — 448 Provision (benefit) for income taxes (6 ) (44 ) 201 — 151 Equity in income (loss) of subsidiaries 151 (176 ) — 25 — Income (loss) from continuing operations 119 (380 ) 533 25 297 Income (loss) from discontinued operations, net of taxes — — — — — Net income (loss) 119 (380 ) 533 25 297 Less: net income attributable to noncontrolling interests — — 178 — 178 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 119 $ (380 ) $ 355 $ 25 $ 119 The following table presents the condensed consolidating income statement information for the year ended December 31, 2017: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries 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 loss 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: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries 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 comprehensive income statement information for the year ended December 31, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Net income (loss) $ 119 $ (380 ) $ 533 $ 25 $ 297 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (652 ) (602 ) (669 ) 1,254 (669 ) Net unrealized gains (losses) on other-than-temporarily impaired securities (2 ) (2 ) (2 ) 4 (2 ) Derivatives qualifying as hedges (298 ) (299 ) (310 ) 609 (298 ) Foreign currency translation and other adjustments (162 ) (129 ) (301 ) 291 (301 ) Total other comprehensive income (loss) (1,114 ) (1,032 ) (1,282 ) 2,158 (1,270 ) Total comprehensive loss (995 ) (1,412 ) (749 ) 2,183 (973 ) Less: comprehensive income attributable to noncontrolling interests — — 22 — 22 Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders $ (995 ) $ (1,412 ) $ (771 ) $ 2,183 $ (995 ) The following table presents the condensed consolidating comprehensive income statement information for the year ended December 31, 2017: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries 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: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries 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 cash flow statement information for the year ended December 31, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Cash flows from (used by) operating activities: Net income (loss) $ 119 $ (380 ) $ 533 $ 25 $ 297 Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: Equity in (income) loss from subsidiaries (151 ) 176 — (25 ) — Dividends from subsidiaries 50 182 (232 ) — — Amortization of fixed maturity securities discounts and premiums — — (122 ) — (122 ) Net investment (gains) losses — (16 ) 162 — 146 Charges assessed to policyholders — — (697 ) — (697 ) Acquisition costs deferred — — (83 ) — (83 ) Amortization of deferred acquisition costs and intangibles — — 391 — 391 Deferred income taxes 13 (105 ) 97 — 5 Trading securities, limited partnerships and derivative instruments — 17 (266 ) — (249 ) Stock-based compensation expense 35 — 2 — 37 Change in certain assets and liabilities: Accrued investment income and other assets — 6 (174 ) — (168 ) Insurance reserves — — 1,555 — 1,555 Current tax liabilities (35 ) 13 (30 ) — (52 ) Other liabilities, policy and contract claims and other policy-related balances (13 ) 14 570 2 573 Net cash from (used by) operating activities 18 (93 ) 1,706 2 1,633 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 3,756 — 3,756 Commercial mortgage loans — — 701 — 701 Restricted commercial mortgage loans related to securitization entities — — 45 — 45 Proceeds from sales of investments: Fixed maturity and equity securities — — 6,192 — 6,192 Purchases and originations of investments: Fixed maturity and equity securities — — (10,706 ) — (10,706 ) Commercial mortgage loans — — (1,047 ) — (1,047 ) Other invested assets, net — — 404 (2 ) 402 Policy loans, net — — 35 — 35 Intercompany notes receivable — (25 ) 53 (28 ) — Capital contributions to subsidiaries (6 ) — 6 — — Net cash used by investing activities (6 ) (25 ) (561 ) (30 ) (622 ) Cash flows used by financing activities: Deposits to universal life and investment contracts — — 1,193 — 1,193 Withdrawals from universal life and investment contracts — — (2,355 ) — (2,355 ) Proceeds from the issuance of long-term debt — 441 — — 441 Repayment and repurchase of long-term debt — (600 ) — — (600 ) Repayment of borrowings related to securitization entities — — (40 ) — (40 ) Intercompany notes payable (10 ) (52 ) 34 28 — Repurchase of subsidiary shares — — (105 ) — (105 ) Dividends paid to noncontrolling interests — — (97 ) — (97 ) Other, net (2 ) (37 ) (19 ) — (58 ) Net cash used by financing activities (12 ) (248 ) (1,389 ) 28 (1,621 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (88 ) — (88 ) Net change in cash, cash equivalents and restricted cash — (366 ) (332 ) — (698 ) Cash, cash equivalents and restricted cash at beginning of period — 795 2,080 — 2,875 Cash, cash equivalents and restricted cash at end of period $ — $ 429 $ 1,748 $ — $ 2,177 The following table presents the condensed consolidating cash flow statement information for the year ended December 31, 2017: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries 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 — 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 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, cash equivalents and restricted cash — — 64 — 64 Net change in cash, cash equivalents and restricted cash — (203 ) 294 — 91 Cash, cash equivalents and restricted cash at beginning of period — 998 1,786 — 2,784 Cash, cash equivalents and restricted cash 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: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries 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 (used by) 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 — 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 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 (43 ) 723 5 705 Net cash from (used by) operating activities (82 ) 197 1,754 3 1,872 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 — (346 ) (36 ) — (382 ) 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 (392 ) (2,559 ) (82 ) (2,951 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (10 ) — (10 ) Net change in cash, cash equivalents and restricted cash — (126 ) (3,083 ) — (3,209 ) Cash, cash equivalents and restricted cash at beginning of period — 1,124 4,869 — 5,993 Cash, cash equivalents and restricted cash at end of period — 998 1,786 — 2,784 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, 2018 | |
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, 2018, the amortized cost or cost, fair value and carrying value of our invested assets were as follows: Amortized cost or Fair Carrying Type of investment cost value value Fixed maturity securities: Bonds: U.S. government, agencies and authorities $ 4,175 $ 4,631 $ 4,631 State and political subdivisions 2,406 2,552 2,552 Non-U.S. 2,345 2,393 2,393 Public utilities 5,495 5,716 5,716 All other corporate bonds 43,560 44,369 44,369 Total fixed maturity securities 57,981 59,661 59,661 Equity securities 690 655 655 Commercial mortgage loans 6,687 xxxxx 6,687 Restricted commercial mortgage loans related to securitization entities 62 xxxxx 62 Policy loans 1,861 xxxxx 1,861 Other invested assets (1) 1,081 xxxxx 1,188 Total investments $ 68,362 xxxxx $ 70,114 (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. See Report of Independent Registered Public Accounting Firm |
Schedule II Genworth Financial,
Schedule II Genworth Financial, Inc. (Parent Company Only) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule II Genworth Financial, Inc. (Parent Company Only) | Schedule II Genworth Financial, Inc. (Parent Company Only) Balance Sheets (Amounts in millions) December 31, 2018 2017 Assets Investments in subsidiaries $ 12,570 $ 13,561 Deferred tax asset 14 27 Other assets 15 3 Total assets $ 12,599 $ 13,591 Liabilities and stockholders’ equity Liabilities: Other liabilities $ 27 $ 41 Intercompany notes payable 122 132 Total liabilities 149 173 Commitments and contingencies Stockholders’ equity: Common stock 1 1 Additional paid-in capital 11,987 11,977 Accumulated other comprehensive income (loss): Net unrealized investment gains (losses): Net unrealized gains (losses) on securities not other-than-temporarily impaired 585 1,075 Net unrealized gains (losses) on other-than-temporarily impaired securities 10 10 Net unrealized investment gains (losses) 595 1,085 Derivatives qualifying as hedges 1,781 2,065 Foreign currency translation and other adjustments (332 ) (123 ) Total accumulated other comprehensive income (loss) 2,044 3,027 Retained earnings 1,118 1,113 Treasury stock, at cost (2,700 ) (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 12,450 13,418 Total liabilities and stockholders’ equity $ 12,599 $ 13,591 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, 2018 2017 2016 Revenues: Net investment income $ (3 ) $ (3 ) $ (3 ) Total revenues (3 ) (3 ) (3 ) Expenses: Acquisition and operating expenses, net of deferrals 33 57 153 Interest expense 2 1 1 Total expenses 35 58 154 Loss before income taxes and equity in income (loss) of subsidiaries (38 ) (61 ) (157 ) Benefit from income taxes (6 ) — (47 ) Equity in income (loss) of subsidiaries 151 878 (166 ) Loss from discontinued operations, net of taxes — — (1 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 119 $ 817 $ (277 ) 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, 2018 2017 2016 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 119 $ 817 $ (277 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (652 ) (178 ) 17 Net unrealized gains (losses) on other-than-temporarily impaired securities (2 ) 1 (9 ) Derivatives qualifying as hedges (298 ) (20 ) 40 Foreign currency translation and other adjustments (162 ) 130 36 Total other comprehensive income (loss) (1,114 ) (67 ) 84 Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ (995 ) $ 750 $ (193 ) 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, 2018 2017 2016 Cash flows from (used by) operating activities: Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 119 $ 817 $ (277 ) Less loss from discontinued operations, net of taxes — — 1 Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to net cash from (used by) operating activities: Equity in (income) loss from subsidiaries (151 ) (878 ) 166 Dividends from subsidiaries 50 — — Deferred income taxes 13 10 (6 ) Stock-based compensation expense 35 30 23 Change in certain assets and liabilities: Accrued investment income and other assets — 5 (9 ) Current tax liabilities (35 ) 23 — Other liabilities and other policy-related balances (13 ) (35 ) 20 Net cash from (used by) operating activities 18 (28 ) (82 ) Cash flows used by investing activities: Capital contributions paid to subsidiaries (6 ) (12 ) — Payments for business purchased — (7 ) — Net cash used by investing activities (6 ) (19 ) — Cash flows from (used by) financing activities: Other, net (2 ) (1 ) — Intercompany notes payable (10 ) 48 82 Net cash from (used by) financing activities (12 ) 47 82 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — — Cash, cash equivalents and restricted cash at beginning of year — — — Cash, cash equivalents and restricted cash 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, 2018, 2017 and 2016 (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. (“Parent”), a limited liability company incorporated in the People’s Republic of China and a subsidiary of China Oceanwide Holdings Group Co., Ltd., a limited liability company incorporated in the People’s Republic of China (together with its affiliates, “China Oceanwide”), and Asia Pacific Global Capital USA Corporation (“Merger Sub”), a Delaware corporation and an indirect, wholly-owned subsidiary of Asia Pacific Insurance USA Holdings LLC (“Asia Pacific Insurance”), which is a Delaware limited liability company and owned by China Oceanwide, pursuant to which, subject to the terms and conditions set forth therein, Merger Sub would merge with and into Genworth Financial with Genworth Financial surviving the merger as an indirect, wholly-owned subsidiary of Asia Pacific Insurance. 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 closing of the transaction remains subject to other conditions and approvals. (2) Accounting Changes On January 1, 2018, we adopted 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 statements of cash flows and requires additional disclosures related to restricted cash and restricted cash equivalents. We adopted this new accounting guidance retrospectively and modified the line item descriptions on our balance sheets and statements of cash flows in our financial statements. The other impacts from this new accounting guidance did not have a significant impact on our financial statements or disclosures. (3) Commitments Genworth Financial provides a full and unconditional guarantee to the trustee of Genworth Holdings’ outstanding senior and subordinated notes and the holders of the senior and subordinated notes, on an unsecured unsubordinated and subordinated basis, respectively, 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 outstanding subordinated notes, and the full and punctual payment of all other amounts payable by Genworth Holdings under the senior and subordinated notes indentures in respect of such senior and subordinated notes. Genworth Financial also provides a full and unconditional guarantee to the holders of Genworth Holdings’ Term Loan. Genworth Financial and Genworth Holdings have joint and several guarantees associated with Rivermont I and the Tax Matters Agreement. (4) Income Taxes As of December 31, 2018 and 2017, Genworth Financial had a deferred tax asset of $14 million and $27 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 receivable was $11 million as of December 31, 2018 and current income tax payable was $23 million as of December 31, 2017. Net cash paid for taxes was $16 million for the year ended December 31, 2018. Net cash received for taxes was $32 million and $41 million for the years ended December 31, 2017 and 2016, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 fixed maturity securities as either available-for-sale or trading and report them in our consolidated balance sheets at fair value. Equity securities are recorded at fair value in our consolidated balance sheets and changes in the fair value are reflected in net investment gains (losses). 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). 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. Prior to adopting new accounting guidance related to the recognition and measurement of financial assets and financial liabilities on January 1, 2018 (see “—Accounting Changes —Recognition and measurement of financial assets and liabilities” for additional details), we recognized an impairment charge for equity securities in the period in which we determined that the security would not recover to book value within a reasonable period of time. We determined what constituted 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 did not exceed 15 months for common equity securities. We measured 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 fair 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, Cash Equivalents and Restricted Cash | i) Cash, Cash Equivalents and Restricted Cash 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 . Acquisition costs include commissions in excess of ultimate renewal commissions and for contracts issued, certain other costs such as underwriting, medical inspection and issuance expenses. DAC for traditional long-duration insurance contracts, including term life and long-term care insurance, is amortized as a level percentage of 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, established when the contract is issued. Amortization is adjusted each period to reflect actual lapse or termination rates. 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. Acquisition costs primarily consist of commissions and premium taxes and are amortized ratably over the terms of the underlying policies. 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. In conjunction with the acquisition of a block of insurance policies or investment contracts, a portion of the purchase price is assigned to the right to receive future gross profits arising from existing insurance and investment contracts. This intangible asset, called PVFP, represents the actuarially estimated present value of future cash flows from the acquired policies. PVFP is amortized, net of accreted interest, in a manner similar to the amortization of DAC. 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. We defer sales inducements to contractholders for features on variable annuities that entitle the contractholder to an incremental amount to be credited to the account value upon making a deposit, and for fixed annuities with crediting rates higher than the contract’s expected ongoing crediting rates for periods after the inducement. Deferred sales inducements to contractholders are reported as a separate intangible asset and amortized in benefits and other changes in policy reserves using the same methodology and assumptions used to amortize DAC. Other Intangible Assets . We amortize the costs of other intangibles over their estimated useful lives unless such lives are deemed indefinite. Amortizable intangible assets are tested for impairment based on undiscounted cash flows, which requires the use of estimates and judgment, and, if impaired, written down to fair value based on either discounted cash flows or appraised values. Intangible assets with indefinite lives are tested at least annually for impairment using a qualitative or quantitative assessment and are written down to fair value as required. |
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 recognize an impairment in an amount equal to the difference between the carrying value and the fair value of the reporting unit up to the amount of recorded goodwill. No goodwill impairment charges were recorded in 2018, 2017 or 2016. |
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. 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 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, changes in fair value of the derivative instrument is reported as a component of OCI. 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, 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, cash equivalents and restricted cash 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, 2018 and 2017, the fair value of non-cash collateral received was $40 million and $70 million, respectively, and the underlying assets were not sold or re-pledged. We have pledged $536 million and $288 million of fixed maturity securities as of December 31, 2018 and 2017, respectively. Additionally, as of December 31, 2018 and 2017, we pledged $57 million and $59 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, central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which were previously considered cash collateral and are 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 in-force rate actions used in loss recognition testing for our long-term care insurance business include assumptions for significant premium rate increases and associated benefit reductions that have been approved or are anticipated to be approved (including premium rate increases and associated benefit reductions not yet filed). 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 a ctual 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, 2018, 2017 and 2016, 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 2018, adjustments associated with this review resulted in an increase in earned premiums of $3 million in our Canada mortgage insurance business. In 2017, the review resulted in a decrease in earned premiums of $468 million in our Australia mortgage insurance business. We did not have any adjustments associated with this review in 2016. |
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 (loss) 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 based on the expected form of repatriation (i.e. distribution, loan or sale). 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. 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 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. |
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 Stranded Tax Effects On January 1, 2018, we early adopted new accounting guidance on the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“TCJA”), or “stranded tax effects.” Under 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 (loss) as opposed to income (loss) from continuing operations. The following summarizes the components for the cumulative effect adjustment recorded on January 1, 2018 related to the adoption of this new accounting guidance: Accumulated other comprehensive income (loss) Foreign Net currency unrealized Derivatives translation Total investment qualifying and other Retained stockholders’ (Amounts in millions) gains (losses) as hedges adjustments earnings equity Deferred taxes: Net unrealized gains on investment securities $ 192 $ — $ — $ (192 ) $ — Net unrealized gains on derivatives — 12 — (12 ) — Investment in foreign subsidiaries (3 ) — (46 ) 49 — Accrued commission and general expenses — — (1 ) 1 — Cumulative effect of changes in accounting $ 189 $ 12 $ (47 ) $ (154 ) $ — The accounting for the temporary differences related to investment in foreign subsidiaries recorded in accumulated other comprehensive income (loss) at adoption of the TCJA were provisional. Additional reclassification adjustments are permitted under this new accounting guidance in future periods as the tax effects of the TCJA on related temporary differences are finalized. However, no reclassification adjustments were recorded during the second, third or fourth quarters of 2018. Other than those effects related to the TCJA, our policy is to release stranded tax effects from accumulated other comprehensive income (loss) using the portfolio approach for items related to investments and derivatives, and upon disposition of a subsidiary for items related to outside basis differences. Amendments to the Hedge Accounting Model On January 1, 2018, we early adopted new accounting guidance related to the hedge accounting model. The new guidance amends 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 and removed the requirements to separately measure and report hedge ineffectiveness. We adopted this new accounting using the modified retrospective method and recognized a gain of $2 million in accumulated other comprehensive income with a corresponding decrease to retained earnings at adoption. This gain was the cumulative amount of hedge ineffectiveness related to active hedges that was previously included in earnings. Accounting for Share-Based Compensation as a Modification On January 1, 2018, we adopted new accounting guidance that clarifies 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 and therefore, the guidance did not have any impact at adoption. Derecognition of Nonfinancial Assets On January 1, 2018, we adopted new accounting guidance that clarifies 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 using the modified retrospective method, which had no impact on our consolidated financial statements at adoption. Simplifying the Test for Goodwill Impairment On January 1, 2018, we early adopted new accounting 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. We adopted this new accounting guidance prospectively and applied it to our 2018 goodwill impairment test. This new accounting guidance simplified the test for goodwill impairment but had no impact on our consolidated financial statements. Classification and Presentation of Changes in Restricted Cash On January 1, 2018, we adopted 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 statements of cash flows and requires additional disclosures related to restricted cash and restricted cash equivalents. We adopted this new accounting guidance retrospectively and modified the line item descriptions on our consolidated balance sheets and statements of cash flows in our consolidated financial statements. The other impacts from this new accounting guidance did not have a significant impact on our consolidated financial statements or disclosures. Income Tax Effects of Intra-Entity Transfers of Assets Other Than Inventory On January 1, 2018, we adopted new accounting 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 using the modified retrospective method, which did not have a significant impact on our consolidated financial statements or disclosures at adoption. Classification of Certain Cash Payments and Receipts On January 1, 2018, we adopted new accounting guidance related to the classification of certain cash payments and cash receipts on our statement of cash flows. The guidance reduces diversity in practice related to eight specific cash flow issues. We adopted this new accounting guidance retrospectively. We reclassified 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.” The reclassification resulted 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. Recognition and Measurement of Financial Assets and Liabilities On January 1, 2018, we adopted new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. Changes to 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, are 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 using the modified retrospective method and reclassified, after adjustments for DAC and other intangible amortization and certain benefit reserves, taxes and noncontrolling interests, $25 million of gains related to equity securities from accumulated other comprehensive income and $17 million of gains related to limited partnerships previously recorded at cost to cumulative effect of change in accounting within retained earnings. Revenue Recognition On January 1, 2018, we adopted new accounting guidance related to revenue from contracts with customers. 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 Financial Accounting Standards Board (“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 adopted this new accounting guidance using the modified retrospective method, which did not have a significant impact on our consolidated financial statements at adoption. 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. did not have a significant impact 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, had no 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, had no 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 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. There was no 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. |
Accounting Pronouncements Not Yet Adopted | y) Accounting Pronouncements Not Yet Adopted In October 2018, the FASB issued new accounting guidance related to benchmark interest rates used in derivative hedge accounting. The guidance adds an additional permissible U.S. benchmark interest rate, the Secured Overnight Financing Rate, for hedge accounting purposes. We adopted this new accounting guidance on January 1, 2019 using the prospective method, which did not have a significant impact on our consolidated financial statements and disclosures at adoption. In August 2018, the FASB issued new accounting guidance that significantly changes the recognition and measurement of long-duration insurance contracts and expands disclosure requirements, which impacts our life insurance DAC and liabilities. In accordance with the guidance, the more significant changes include: • assumptions will no longer be locked-in at contract inception and all cash flow assumptions used to estimate the liability for future policy benefits will be reviewed at least annually in the same period each year or more frequently if actual experience indicates a change is required; • changes in cash flow assumptions (except the discount rate) will be recorded in net income (loss) using a retrospective approach with a cumulative catch-up adjustment by recalculating the net premium ratio (which will be capped at 100%) using actual historical and updated future cash flow assumptions; • the discount rate used to determine the liability for future policy benefits will be a current upper-medium grade (low credit risk) fixed-income instrument yield, which is generally interpreted to mean a single-A rated bond rate for the same duration, and is required to be reviewed quarterly, with changes in the discount rate recorded in other comprehensive income (loss); • the provision for adverse deviation and the premium deficiency test are eliminated; • market risk benefits associated with deposit-type contracts will be measured at fair value with changes recorded in net income (loss); • the amortization method for DAC will generally be on a straight-line basis over the expected contract term; and • disclosures will be greatly expanded to include significant assumptions and product liability rollforwards. The guidance is currently effective for us on January 1, 2021 using the modified retrospective method, with early adoption permitted. We are in process of evaluating the new guidance and the impact it will have on our consolidated financial statements. In August 2018, the FASB issued new accounting guidance related to disclosure requirements for defined benefit plans as part of its disclosure framework project. The guidance adds, eliminates and modifies certain disclosure requirements for defined benefit pension and other postretirement benefit plans. The guidance is currently effective for us on January 1, 2020 using the retrospective method, with early adoption permitted. We do not expect any significant impact from this guidance on our consolidated financial statements and disclosures. In August 2018, the FASB issued new accounting guidance related to fair value disclosure requirements as part of its disclosure framework project. The guidance adds, eliminates and modifies certain disclosure requirements for fair value measurements. The guidance includes new disclosure requirements related to the change in unrealized gains and losses included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance is currently effective for us on January 1, 2020 using the prospective method for certain disclosures and the retrospective method for all other disclosures. Early adoption of either the entire standard or only the provisions that eliminate or modify the requirements is permitted. We are in process of evaluating the impact the guidance may have on our consolidated financial statements and disclosures. In June 2018, the FASB issued new accounting guidance related to accounting for nonemployee share-based payments. The guidance aligns the measurement and classification of share-based payments to nonemployees issued in exchange for goods or services with the guidance for share-based payments to employees, with certain exceptions. We adopted this new accounting guidance on January 1, 2019 using the modified retrospective method. This guidance is consistent with our previous accounting practices and, accordingly, had no impact on our consolidated financial statements at adoption. In March 2017, the FASB issued new accounting 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. We adopted this new accounting guidance on January 1, 2019 using the modified retrospective method, which had no significant impact on our consolidated financial statements at adoption. In June 2016, the FASB issued new accounting 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 and issued further amendments in January 2018, July 2018 and December 2018. The new guidance generally requires lessees to recognize both a right-to-use asset and a corresponding liability on the balance sheet. We adopted this new accounting guidance on January 1, 2019 using the optional transition method practical expedient, which permits entities to apply the new lease standard using the modified retrospective transition approach at the date of adoption. million right-of-use asset related to operating leases included in other assets and a corresponding lease liability included in other liabilities on our consolidated balance sheet. We also elected to apply the package of practical expedients upon |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Components for Cumulative Effect Adjustment | The following summarizes the components for the cumulative effect adjustment recorded on January 1, 2018 related to the adoption of this new accounting guidance: Accumulated other comprehensive income (loss) Foreign Net currency unrealized Derivatives translation Total investment qualifying and other Retained stockholders’ (Amounts in millions) gains (losses) as hedges adjustments earnings equity Deferred taxes: Net unrealized gains on investment securities $ 192 $ — $ — $ (192 ) $ — Net unrealized gains on derivatives — 12 — (12 ) — Investment in foreign subsidiaries (3 ) — (46 ) 49 — Accrued commission and general expenses — — (1 ) 1 — Cumulative effect of changes in accounting $ 189 $ 12 $ (47 ) $ (154 ) $ — |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Weighted-average common shares used in basic earnings (loss) per share calculations 500.4 499.0 498.3 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 3.8 2.4 — Weighted-average common shares used in diluted earnings (loss) per share calculations (1) 504.2 501.4 498.3 Income (loss) from continuing operations: Income (loss) from continuing operations $ 297 $ 936 $ (38 ) Less: income from continuing operations attributable to noncontrolling interests 178 110 210 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 119 $ 826 $ (248 ) Basic per share $ 0.24 $ 1.66 $ (0.50 ) Diluted per share $ 0.24 $ 1.65 $ (0.50 ) Loss from discontinued operations: Loss from discontinued operations, net of taxes $ — $ (9 ) $ (29 ) 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 ) Basic per share $ — $ (0.02 ) $ (0.06 ) Diluted per share $ — $ (0.02 ) $ (0.06 ) Net income (loss): Income (loss) from continuing operations $ 297 $ 936 $ (38 ) Loss from discontinued operations, net of taxes — (9 ) (29 ) Net income (loss) 297 927 (67 ) Less: net income attributable to noncontrolling interests 178 110 210 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 119 $ 817 $ (277 ) Basic per share $ 0.24 $ 1.64 $ (0.56 ) Diluted per share $ 0.24 $ 1.63 $ (0.56 ) (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 year ended December 31, 2016, 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 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 year ended December 31, 2016, dilutive potential weighted-average common shares outstanding would have been 500.3 million. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Net Investment Income | Sources of net investment income were as follows for the years ended December 31: (Amounts in millions) 2018 2017 2016 Fixed maturity securities—taxable $ 2,577 $ 2,578 $ 2,565 Fixed maturity securities—non-taxable 11 12 12 Equity securities 40 36 28 Commercial mortgage loans 320 306 318 Restricted commercial mortgage loans related to securitization entities (1) 7 9 10 Policy loans 169 153 146 Other invested assets (2) 181 157 141 Restricted other invested assets related to securitization entities (1) — 1 3 Cash, cash equivalents, restricted cash and short-term investments 51 36 20 Gross investment income before expenses and fees 3,356 3,288 3,243 Expenses and fees (94 ) (88 ) (84 ) Net investment income $ 3,262 $ 3,200 $ 3,159 (1) See note 17 for additional information related to consolidated securitization entities. (2) Included in other invested assets was $—, $ 2 11 |
Net Investment Gains (Losses) | The following table sets forth net investment gains (losses) for the years ended December 31: (Amounts in millions) 2018 2017 2016 Available-for-sale Realized gains $ 169 $ 229 $ 249 Realized losses (144 ) (66 ) (121 ) Net realized gains (losses) on available-for-sale 25 163 128 Impairments: Total other-than-temporary impairments — (6 ) (40 ) Portion of other-than-temporary impairments included in other comprehensive income (loss) — — — Net other-than-temporary impairments — (6 ) (40 ) Net realized gains (losses) on equity securities sold 11 — — Net unrealized gains (losses) on equity securities still held (98 ) — — Trading securities — 1 10 Limited partnerships 11 — 6 Commercial mortgage loans — 3 1 Net gains (losses) related to securitization entities (1) — 7 (50 ) Derivative instruments (2) (95 ) 97 20 Contingent consideration adjustment — — (2 ) Other — — (1 ) Net investment gains (losses) $ (146 ) $ 265 $ 72 (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) 2018 2017 2016 Beginning balance $ 32 $ 42 $ 64 Additions: Other-than-temporary impairments not previously recognized — — 1 Reductions: Securities sold, paid down or disposed (8 ) (10 ) (23 ) Ending balance $ 24 $ 32 $ 42 (c) Unrealized Investment Gains and Losses |
Unrealized Investment Gains and Losses | Net unrealized gains and losses on available-for-sale (Amounts in millions) 2018 2017 2016 Net unrealized gains (losses) on investment securities: Fixed maturity securities $ 1,775 $ 5,125 $ 3,656 Equity securities — 69 12 Subtotal (1) 1,775 5,194 3,668 Adjustments to DAC, PVFP, sales inducements and benefit reserves (952 ) (3,451 ) (1,611 ) Income taxes, net (190 ) (583 ) (711 ) Net unrealized investment gains (losses) 633 1,160 1,346 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 38 75 84 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 595 $ 1,085 $ 1,262 (1) Excludes foreign exchange. |
Change in Net Unrealized Gains (Losses) on Available-for-Sale Investment Securities Reported in Accumulated Other Comprehensive Income (Loss) | The change in net unrealized gains (losses) on available-for-sale (Amounts in millions) 2018 2017 2016 Beginning balance $ 1,085 $ 1,262 $ 1,254 Cumulative effect of changes in accounting: Stranded tax effects 189 — — Recognition and measurement of financial assets and liabilities, net of taxes of $18, $— and $— (25 ) — — Total cumulative effect of changes in accounting 164 — — Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities (3,327 ) 1,683 626 Adjustment to DAC (1) 1,182 (1,000 ) (499 ) Adjustment to PVFP 69 (33 ) (5 ) Adjustment to sales inducements 34 (4 ) (16 ) Adjustment to benefit reserves 1,208 (803 ) (21 ) Provision for income taxes 181 73 (31 ) Change in unrealized gains (losses) on investment securities (653 ) (84 ) 54 Reclassification adjustments to net investment (gains) losses, net of taxes of $5, $55 and $31 (18 ) (102 ) (57 ) Change in net unrealized investment gains (losses) (671 ) (186 ) (3 ) Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (17 ) (9 ) (11 ) Ending balance $ 595 $ 1,085 $ 1,262 (1) See note 6 for additional information. |
Fixed Maturity and Equity Securities | As of December 31, 2018, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity securities classified as available-for-sale were as follows: Gross unrealized gains Gross unrealized losses Amortized Not other-than- Other-than- Not other-than- Other-than- cost or temporarily temporarily temporarily temporarily Fair (Amounts in millions) cost impaired impaired impaired impaired value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,175 $ 473 $ — $ (17 ) $ — $ 4,631 State and political subdivisions 2,406 168 — (22 ) — 2,552 Non-U.S. government 2,345 72 — (24 ) — 2,393 U.S. corporate: Utilities 4,439 331 — (95 ) — 4,675 Energy 2,382 101 — (64 ) — 2,419 Finance and insurance 6,705 249 — (132 ) — 6,822 Consumer—non-cyclical 4,891 294 — (137 ) — 5,048 Technology and communications 2,823 110 — (78 ) — 2,855 Industrial 1,230 41 — (33 ) — 1,238 Capital goods 2,277 165 — (51 ) — 2,391 Consumer—cyclical 1,592 53 — (48 ) — 1,597 Transportation 1,283 78 — (41 ) — 1,320 Other 376 24 — (3 ) — 397 Total U.S. corporate 27,998 1,446 — (682 ) — 28,762 Non-U.S. corporate: Utilities 1,056 17 — (32 ) — 1,041 Energy 1,320 72 — (23 ) — 1,369 Finance and insurance 2,391 72 — (40 ) — 2,423 Consumer—non-cyclical 756 8 — (25 ) — 739 Technology and communications 1,168 23 — (26 ) — 1,165 Industrial 926 36 — (17 ) — 945 Capital goods 615 10 — (10 ) — 615 Consumer—cyclical 532 1 — (13 ) — 520 Transportation 689 46 — (15 ) — 720 Other 2,218 105 — (23 ) — 2,300 Total non-U.S. corporate 11,671 390 — (224 ) — 11,837 Residential mortgage-backed 2,888 160 13 (17 ) — 3,044 Commercial mortgage-backed 3,054 43 — (81 ) — 3,016 Other asset-backed 3,444 10 1 (29 ) — 3,426 Total available-for-sale fixed maturity securities $ 57,981 $ 2,762 $ 14 $ (1,096 ) $ — $ 59,661 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 Amortized Not other-than- Other-than- Not other-than- Other-than- cost or temporarily temporarily temporarily temporarily Fair (Amounts in millions) cost impaired impaired impaired impaired 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 |
Maturity Distribution of Fixed Maturity Securities | The scheduled maturity distribution of fixed maturity securities as of December 31, 2018 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. Amortized cost or Fair (Amounts in millions) cost value Due one year or less $ 1,863 $ 1,874 Due after one year through five years 10,851 10,952 Due after five years through ten years 12,438 12,463 Due after ten years 23,443 24,886 Subtotal 48,595 50,175 Residential mortgage-backed 2,888 3,044 Commercial mortgage-backed 3,054 3,016 Other asset-backed 3,444 3,426 Total $ 57,981 $ 59,661 |
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: 2018 Greater than 31 - 60 days 61 - 90 days 90 days past Total (Amounts in millions) past due past due due past due Current Total Property type: Retail $ 3 $ — $ — $ 3 $ 2,460 $ 2,463 Industrial — — — — 1,659 1,659 Office — — 3 3 1,545 1,548 Apartments — — — — 495 495 Mixed use — — — — 254 254 Other — — — — 281 281 Total recorded investment $ 3 $ — $ 3 $ 6 $ 6,694 $ 6,700 % of total commercial mortgage loans — % — % — % — % 100 % 100 % 2017 Greater than 31 - 60 days 61 - 90 days 90 days past Total (Amounts in millions) past due past due due past due 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 % |
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) 2018 2017 2016 Allowance for credit losses: Beginning balance $ 9 $ 12 $ 15 Charge-offs — — (6 ) Recoveries — — — Provision — (3 ) 3 Ending balance $ 9 $ 9 $ 12 Ending allowance for individually impaired loans $ — $ — $ — Ending allowance for loans not individually impaired that were evaluated collectively for impairment $ 9 $ 9 $ 12 Recorded investment: Ending balance $ 6,700 $ 6,353 $ 6,125 Ending balance of individually impaired loans $ 3 $ 6 $ 12 Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,697 $ 6,347 $ 6,113 |
Investment Securities | |
Gross Unrealized Losses and Fair Values of Securities in a Continuous Unrealized Loss Position | The following table presents the gross unrealized losses and fair values of our fixed maturity securities, aggregated by investment type and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of December 31, 2018: Less than 12 months 12 months or more Total Gross Gross Gross Fair unrealized Number of Fair unrealized Number of Fair unrealized Number of (Dollar amounts in millions) value losses securities value losses securities value losses securities Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored $ 545 $ (8 ) 17 $ 161 $ (9 ) 26 $ 706 $ (17 ) 43 State and political subdivisions 371 (10 ) 63 233 (12 ) 57 604 (22 ) 120 Non-U.S. government 261 (7 ) 51 508 (17 ) 35 769 (24 ) 86 U.S. corporate 9,975 (472 ) 1,342 2,449 (210 ) 365 12,424 (682 ) 1,707 Non-U.S. corporate 4,172 (150 ) 614 1,274 (74 ) 209 5,446 (224 ) 823 Residential mortgage-backed 363 (6 ) 57 579 (11 ) 96 942 (17 ) 153 Commercial mortgage-backed 758 (19 ) 115 870 (62 ) 130 1,628 (81 ) 245 Other asset-backed 1,597 (23 ) 326 604 (6 ) 137 2,201 (29 ) 463 Total for fixed maturity securities $ 18,042 $ (695 ) 2,585 $ 6,678 $ (401 ) 1,055 $ 24,720 $ (1,096 ) 3,640 % Below cost: <20% Below cost $ 18,008 $ (685 ) 2,581 $ 6,624 $ (383 ) 1,045 $ 24,632 $ (1,068 ) 3,626 20%-50% Below cost 34 (10 ) 4 54 (18 ) 10 88 (28 ) 14 Total for fixed maturity securities $ 18,042 $ (695 ) 2,585 $ 6,678 $ (401 ) 1,055 $ 24,720 $ (1,096 ) 3,640 Investment grade $ 16,726 $ (615 ) 2,393 $ 6,508 $ (379 ) 1,024 $ 23,234 $ (994 ) 3,417 Below investment grade 1,316 (80 ) 192 170 (22 ) 31 1,486 (102 ) 223 Total for fixed maturity securities $ 18,042 $ (695 ) 2,585 $ 6,678 $ (401 ) 1,055 $ 24,720 $ (1,096 ) 3,640 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, 2018: Less than 12 months 12 months or more Total Gross Gross Gross Fair unrealized Number of Fair unrealized Number of Fair unrealized Number of (Dollar amounts in millions) value losses securities value losses securities value losses securities Description of Securities U.S. corporate: Utilities $ 1,246 $ (61 ) 173 $ 343 $ (34 ) 60 $ 1,589 $ (95 ) 233 Energy 944 (47 ) 135 152 (17 ) 23 1,096 (64 ) 158 Finance and insurance 2,393 (92 ) 326 688 (40 ) 95 3,081 (132 ) 421 Consumer—non-cyclical 1,826 (101 ) 203 389 (36 ) 55 2,215 (137 ) 258 Technology and communications 1,135 (51 ) 152 263 (27 ) 34 1,398 (78 ) 186 Industrial 506 (27 ) 63 74 (6 ) 13 580 (33 ) 76 Capital goods 704 (31 ) 103 184 (20 ) 27 888 (51 ) 130 Consumer—cyclical 738 (35 ) 123 162 (13 ) 26 900 (48 ) 149 Transportation 435 (25 ) 60 179 (16 ) 31 614 (41 ) 91 Other 48 (2 ) 4 15 (1 ) 1 63 (3 ) 5 Subtotal, U.S. corporate 9,975 (472 ) 1,342 2,449 (210 ) 365 12,424 (682 ) 1,707 Non-U.S. corporate: Utilities 404 (19 ) 58 173 (13 ) 24 577 (32 ) 82 Energy 439 (15 ) 64 136 (8 ) 20 575 (23 ) 84 Finance and insurance 899 (25 ) 151 294 (15 ) 52 1,193 (40 ) 203 Consumer—non-cyclical 377 (16 ) 51 102 (9 ) 14 479 (25 ) 65 Technology and communications 611 (24 ) 75 50 (2 ) 12 661 (26 ) 87 Industrial 275 (11 ) 48 72 (6 ) 8 347 (17 ) 56 Capital goods 226 (7 ) 27 69 (3 ) 13 295 (10 ) 40 Consumer—cyclical 268 (11 ) 42 117 (2 ) 19 385 (13 ) 61 Transportation 232 (7 ) 27 67 (8 ) 11 299 (15 ) 38 Other 441 (15 ) 71 194 (8 ) 36 635 (23 ) 107 Subtotal, non-U.S. corporate 4,172 (150 ) 614 1,274 (74 ) 209 5,446 (224 ) 823 Total for corporate securities in an unrealized loss position $ 14,147 $ (622 ) 1,956 $ 3,723 $ (284 ) 574 $ 17,870 $ (906 ) 2,530 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. 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 Gross Gross Gross Fair unrealized Number of Fair unrealized Number of Fair unrealized Number of (Dollar amounts in millions) value losses securities value losses securities value losses securities Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored $ 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 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 $ 6,090 $ (65 ) 1,039 $ 3,661 $ (143 ) 587 $ 9,751 $ (208 ) 1,626 % Below cost—fixed maturity <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 $ 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 $ 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 Gross Gross Gross Fair unrealized Number of Fair unrealized Number of Fair unrealized Number of (Dollar amounts in millions) value losses securities value losses securities value losses securities 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 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 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 |
Commercial Mortgage Loan | Real Estate Properties | |
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans | The following tables set forth the aging of past due commercial mortgage loans by property type as of December 31: 2018 Greater than 31 - 60 days 61 - 90 days 90 days past Total (Amounts in millions) past due past due due past due Current Total Property type: Retail $ 3 $ — $ — $ 3 $ 2,460 $ 2,463 Industrial — — — — 1,659 1,659 Office — — 3 3 1,545 1,548 Apartments — — — — 495 495 Mixed use — — — — 254 254 Other — — — — 281 281 Total recorded investment $ 3 $ — $ 3 $ 6 $ 6,694 $ 6,700 % of total commercial mortgage loans — % — % — % — % 100 % 100 % |
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: 2018 Greater (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% than 100% (1) Total Property type: Retail $ 866 $ 565 $ 1,017 $ 15 $ — $ 2,463 Industrial 749 279 615 14 2 1,659 Office 585 373 588 2 — 1,548 Apartments 206 95 189 5 — 495 Mixed use 105 36 113 — — 254 Other 43 78 160 — — 281 Total recorded investment $ 2,554 $ 1,426 $ 2,682 $ 36 $ 2 $ 6,700 % of total 38 % 21 % 40 % 1 % — % 100 % Weighted-average debt service coverage ratio 2.42 2.04 1.59 1.38 0.88 2.00 (1) Included a loan with a recorded investment of $2 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. 2017 Greater than (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% 100% (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 borrowers 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. |
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: 2018 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater than 2.00 Total Property type: Retail $ 43 $ 157 $ 448 $ 1,234 $ 581 $ 2,463 Industrial 22 75 233 653 676 1,659 Office 57 56 156 765 514 1,548 Apartments 4 24 104 168 195 495 Mixed use 3 19 51 80 101 254 Other 13 134 50 50 34 281 Total recorded investment $ 142 $ 465 $ 1,042 $ 2,950 $ 2,101 $ 6,700 % of total 2 % 7 % 16 % 44 % 31 % 100 % Weighted-average loan-to-value 57 % 61 % 62 % 59 % 42 % 54 % 2017 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater than 2.00 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 % |
Other Geographic Area | Commercial Mortgage Loan | |
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans | The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of December 31: 2018 2017 Carrying % of Carrying % of (Amounts in millions) value total value total Property type: Retail $ 2,463 37 % $ 2,239 35 % Industrial 1,659 25 1,628 26 Office 1,548 23 1,510 24 Apartments 495 7 478 8 Mixed use 254 4 223 3 Other 281 4 275 4 Subtotal 6,700 100 % 6,353 100 % Unamortized balance of loan origination fees and costs (4 ) (3 ) Allowance for losses (9 ) (9 ) Total $ 6,687 $ 6,341 2018 2017 Carrying % of Carrying % of (Amounts in millions) value total value total Geographic region: South Atlantic $ 1,709 26 % $ 1,625 26 % Pacific 1,684 25 1,622 26 Middle Atlantic 950 14 927 14 Mountain 667 10 556 9 West North Central 470 7 446 7 East North Central 405 6 394 6 West South Central 364 6 336 5 New England 228 3 239 4 East South Central 223 3 208 3 Subtotal 6,700 100 % 6,353 100 % Unamortized balance of loan origination fees and costs (4 ) (3 ) Allowance for losses (9 ) (9 ) Total $ 6,687 $ 6,341 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 Balance Balance (Amounts in millions) sheet classification 2018 2017 sheet classification 2018 2017 Derivatives designated as Cash flow hedges: Interest rate swaps Other invested assets $ 42 $ 74 Other liabilities $ 102 $ 25 Foreign currency swaps Other invested assets 6 1 Other liabilities — — Total cash flow hedges 48 75 102 25 Total derivatives 48 75 102 25 Derivatives not designated as Interest rate swaps in a foreign Other invested assets 74 105 Other liabilities — — Interest rate caps and floors Other invested assets 7 — Other liabilities — — Foreign currency swaps Other invested assets — 11 Other liabilities 23 — Equity index options Other invested assets 39 80 Other liabilities — — Financial futures Other invested assets — — Other liabilities — — Equity return swaps Other invested assets — — Other liabilities 1 2 Other foreign currency Other invested assets 10 5 Other liabilities 42 20 GMWB embedded derivatives Reinsurance (1) 20 14 Policyholder (2) 337 250 Fixed index annuity embedded Other assets — — Policyholder (3) 389 419 Indexed universal life embedded Reinsurance — — Policyholder (4) 12 14 Total derivatives not 150 215 804 705 Total derivatives $ 198 $ 290 $ 906 $ 730 (1) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. (2) Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (3) Represents the embedded derivatives associated with our fixed index annuity liabilities. (4) Represents the embedded derivatives associated with our indexed universal life liabilities. |
Schedule of Notional Amounts Outstanding on Derivative Instruments | The following tables represent activity associated with derivative instruments as of the dates indicated: December 31, Maturities/ December 31, (Notional in millions) Measurement 2017 Additions terminations 2018 Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 11,155 $ 1,645 $ (2,876 ) $ 9,924 Foreign currency swaps Notional 22 58 — 80 Total cash flow hedges 11,177 1,703 (2,876 ) 10,004 Total derivatives designated as hedges 11,177 1,703 (2,876 ) 10,004 Derivatives not designated as hedges Interest rate swaps Notional 4,679 — (5 ) 4,674 Interest rate swaps in a foreign currency Notional 2,793 117 (345 ) 2,565 Interest rate caps and floors Notional — 2,810 (186 ) 2,624 Foreign currency swaps Notional 349 133 (29 ) 453 Credit default swaps Notional 39 — (39 ) — Equity index options Notional 2,420 2,848 (2,640 ) 2,628 Financial futures Notional 1,283 5,377 (5,245 ) 1,415 Equity return swaps Notional 96 3 (82 ) 17 Other foreign currency contracts Notional 471 1,739 (1,130 ) 1,080 Total derivatives not designated as hedges 12,130 13,027 (9,701 ) 15,456 Total derivatives $ 23,307 $ 14,730 $ (12,577 ) $ 25,460 December 31, Maturities/ December 31, (Number of policies) Measurement 2017 Additions terminations 2018 Derivatives not designated as hedges GMWB embedded derivatives Policies 30,450 — (2,564 ) 27,886 Fixed index annuity embedded derivatives Policies 17,067 — (603 ) 16,464 Indexed universal life embedded derivatives Policies 985 — (56 ) 929 |
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, 2018: Gain (loss) Gain (loss) reclassified into recognized net income Classification of gain (loss) (Amounts in millions) in OCI from OCI reclassified into net income Interest rate swaps hedging assets $ (261 ) $ 153 Net investment income Interest rate swaps hedging assets — 9 Net investment gains (losses) Interest rate swaps hedging liabilities 16 — Interest expense Foreign currency swaps 4 — Net investment income Total $ (241 ) $ 162 The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the year ended December 31, 2017: Gain (loss) reclassified into Classification of gain Gain (loss) Classification of gain Gain (loss) net income (loss) (loss) reclassified into recognized in (loss) recognized in (Amounts in millions) recognized in OCI from OCI net income (loss) net income (loss) (1) net income (loss) Interest rate swaps hedging assets $ 96 $ 131 Net investment income $ 2 Net investment Interest rate swaps hedging assets — 8 Net investment gains (losses) — Net investment Foreign currency swaps (2 ) — Net investment income — Net investment 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: Gain (loss) reclassified into Classification of gain Gain (loss) Classification of gain Gain (loss) net income (loss) (loss) reclassified into recognized in (loss) recognized in (Amounts in millions) recognized in OCI from OCI net income (loss) net income (loss) (1) net income (loss) Interest rate swaps hedging assets $ 198 $ 112 Net investment income $ 3 Net investment Interest rate swaps hedging assets — 2 Net investment gains (losses) — Net investment Interest rate swaps hedging liabilities (5 ) — Interest expense — Net investment 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 Foreign currency swaps — — Net investment gains (losses) 5 Net investment Total $ 184 $ 123 $ 8 |
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) 2018 2017 2016 Derivatives qualifying as effective accounting hedges as of January 1 $ 2,065 $ 2,085 $ 2,045 Cumulative effect of changes in accounting: Stranded tax effects 12 — — Changes to the hedge accounting model, net of deferred taxes of $(1), $— and $— 2 — — Total cumulative effect of changes in accounting 14 — — Current period increases (decreases) in fair value, net of deferred taxes of $50, $(56) and $(64) (194 ) 38 120 Reclassification to net (income) loss, net of deferred taxes of $58, $81 and $43 (104 ) (58 ) (80 ) Derivatives qualifying as effective accounting hedges as of December 31 $ 1,781 $ 2,065 $ 2,085 |
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (loss) for Effects of Derivatives Not Designated as Hedges | The following table provides the pre-tax gain (loss) recognized in net income (loss) for the effects of derivatives not designated as hedges for the years ended December 31: (Amounts in millions) 2018 2017 2016 Classification of gain (loss) recognized in net income (loss) Interest rate swaps $ 3 $ 4 $ 12 Net investment gains (losses) Interest rate swaps in a foreign currency (5 ) 70 28 Net investment gains (losses) Interest rate swaps related to securitization entities (1) — — (10 ) Net investment gains (losses) Foreign currency swaps (37 ) 14 4 Net investment gains (losses) Credit default swaps — — 1 Net investment gains (losses) Credit default swaps related to securitization entities (1) — 7 18 Net investment gains (losses) Equity index options (34 ) 57 10 Net investment gains (losses) Financial futures 26 (43 ) (111 ) Net investment gains (losses) Equity return swaps (5 ) (22 ) (1 ) Net investment gains (losses) Other foreign currency contracts (26 ) 5 (4 ) Net investment gains (losses) GMWB embedded derivatives (54 ) 78 76 Net investment gains (losses) Fixed index annuity embedded derivatives 15 (84 ) (22 ) Net investment gains (losses) Indexed universal life embedded derivatives 13 8 10 Net investment gains (losses) Total derivatives not designated as hedges $ (104 ) $ 94 $ 11 (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: 2018 2017 (Amounts in millions) Derivatives assets (1) Derivatives liabilities (2) Net derivatives Derivatives assets (1) Derivatives liabilities (2) Net derivatives Amounts presented in the balance sheet: Gross amounts recognized $ 185 $ 169 $ 16 $ 278 $ 47 $ 231 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 185 169 16 278 47 231 Gross amounts not offset in the balance sheet: Financial instruments (3) (66 ) (66 ) — (23 ) (23 ) — Collateral received (84 ) — (84 ) (170 ) — (170 ) Collateral pledged — (536 ) 536 — (288 ) 288 Over collateralization 10 433 (423 ) — 264 (264 ) Net amount $ 45 $ — $ 45 $ 85 $ — $ 85 (1) Included $6 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of December 31, 2018 and 2017, respectively. (2) Does not include amounts related to embedded derivatives and derivatives related to securitization entities as of December 31, 2018 and 2017. (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: 2018 2017 (Amounts in millions) Notional value Assets Liabilities Notional value Assets Liabilities Investment grade Matures in less than one year $ — $ — $ — $ 39 $ — $ — Total credit default swaps on single name reference entities $ — $ — $ — $ 39 $ — $ — |
Deferred Acquisition Costs (Tab
Deferred Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Unamortized balance as of January 1 $ 3,999 $ 4,241 $ 4,569 Impact of foreign currency translation (15 ) 12 3 Costs deferred 83 88 150 Amortization, net of interest accretion (316 ) (342 ) (481 ) Unamortized balance as of December 31 3,751 3,999 4,241 Accumulated effect of net unrealized investment (gains) losses (488 ) (1,670 ) (670 ) Balance as of December 31 $ 3,263 $ 2,329 $ 3,571 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets | The following table presents our intangible assets as of December 31: 2018 2017 (Amounts in millions) Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization PVFP $ 2,115 $ (1,976 ) $ 2,046 $ (1,959 ) Capitalized software 501 (410 ) 475 (384 ) Deferred sales inducements to contractholders 318 (243 ) 280 (221 ) Other 139 (110 ) 130 (81 ) Total $ 3,073 $ (2,739 ) $ 2,931 $ (2,645 ) |
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) 2018 2017 2016 Unamortized balance as of January 1 $ 187 $ 222 $ 205 Interest accreted at 5.60%, 5.38% and 5.15% 10 11 11 Amortization (27 ) (46 ) 6 Unamortized balance as of December 31 170 187 222 Accumulated effect of net unrealized investment (gains) losses (31 ) (100 ) (67 ) Balance as of December 31 $ 139 $ 87 $ 155 |
Percentage of Current PVFP Balance Estimated to be Amortized | The percentage of the December 31, 2018 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: 2019 5.5 % 2020 5.3 % 2021 4.9 % 2022 4.6 % 2023 4.2 % |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Net Domestic Life Insurance In-Force | The following table sets forth net domestic life insurance in-force as of December 31: (Amounts in millions) 2018 2017 2016 Direct life insurance in-force $ 594,472 $ 625,710 $ 658,931 Amounts assumed from other companies 729 793 861 Amounts ceded to other companies (1) (537,590 ) (562,463 ) (491,466 ) Net life insurance in-force $ 57,611 $ 64,040 $ 168,326 Percentage of amount assumed to net 1 % 1 % — % (1) Includes amounts accounted for under the deposit method. |
Schedule of Effects of Reinsurance on Premiums Written and Earned | Written Earned (Amounts in millions) 2018 2017 2016 2018 2017 2016 Direct: Life insurance $ 881 $ 929 $ 977 $ 881 $ 929 $ 978 Accident and health insurance 2,775 2,732 2,786 2,800 2,756 2,816 Mortgage insurance 1,586 1,571 1,641 1,719 1,154 1,561 Total direct 5,242 5,232 5,404 5,400 4,839 5,355 Assumed: Life insurance 1 38 35 1 38 35 Accident and health insurance 328 337 331 332 341 335 Mortgage insurance 7 7 6 11 2 12 Total assumed 336 382 372 344 381 382 Ceded: Life insurance (576 ) (538 ) (856 ) (576 ) (538 ) (856 ) Accident and health insurance (566 ) (596 ) (629 ) (571 ) (604 ) (638 ) Mortgage insurance (85 ) (74 ) (83 ) (78 ) (74 ) (83 ) Total ceded (1,227 ) (1,208 ) (1,568 ) (1,225 ) (1,216 ) (1,577 ) Net premiums $ 4,351 $ 4,406 $ 4,208 $ 4,519 $ 4,004 $ 4,160 Percentage of amount assumed to net 8 % 10 % 9 % |
Insurance Reserves (Tables)
Insurance Reserves (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: Mortality/ morbidity Interest rate (Amounts in millions) assumption assumption 2018 2017 Long-term care insurance contracts (a) 3.75% - 7.50% $ 23,496 $ 23,332 Structured settlements with life contingencies (b) 1.00% - 8.00% 8,576 8,724 Annuity contracts with life contingencies (b) 1.00% - 8.00% 3,238 3,723 Traditional life insurance contracts (c) 3.00% - 7.50% 2,300 2,387 Supplementary contracts with life contingencies (b) 1.00% - 8.00% 329 303 Accident and health insurance contracts (d) 3.50% - 6.00% 1 3 Total future policy benefits $ 37,940 $ 38,472 (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 1975-80 (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) 2018 2017 Annuity contracts $ 10,744 $ 12,272 Funding agreements and FABNs 381 260 Structured settlements without life contingencies 1,329 1,451 Supplementary contracts without life contingencies 636 677 Other 15 15 Total investment contracts 13,105 14,675 Universal and term universal life insurance contracts 9,863 9,520 Total policyholder account balances $ 22,968 $ 24,195 |
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) 2018 2017 Account values with death benefit guarantees (net of reinsurance): Standard death benefits (return of net deposits) account value $ 1,937 $ 2,365 Net amount at risk $ 3 $ 2 Average attained age of contractholders 75 74 Enhanced death benefits (ratchet, rollup) account value $ 1,969 $ 2,489 Net amount at risk $ 207 $ 114 Average attained age of contractholders 75 74 Account values with living benefit guarantees: GMWBs $ 2,105 $ 2,671 Guaranteed annuitization benefits $ 995 $ 1,198 |
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) 2018 2017 Balanced funds $ 2,414 $ 2,998 Equity funds 1,003 1,262 Bond funds 399 498 Money market funds 80 85 Total $ 3,896 $ 4,843 |
Liability for Policy and Cont_2
Liability for Policy and Contract Claims (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 Liability for policy and contract claims for insurance lines other than short-duration contracts: Long-term care insurance $ 9,516 $ 8,548 Life insurance 243 244 Fixed annuities 23 24 Runoff 14 11 Total 9,796 8,827 Liability for policy and contract claims, net of reinsurance, related to short-duration contracts: U.S. Mortgage Insurance segment 296 454 Australia Mortgage Insurance segment 196 218 Canada Mortgage Insurance segment 84 87 Other mortgage insurance businesses 7 7 Total 583 766 Reinsurance recoverable on unpaid claims related to short-duration contracts: U.S. Mortgage Insurance segment — 1 Total — 1 Total liability for policy and contract claims $ 10,379 $ 9,594 |
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 Incurred claims and allocated claim adjustment expenses, net of reinsurance Total of Incurred-But- Not-Reported (Dollar amounts in millions) For the years ended December 31, liabilities Accident year (1) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 claims as of Number of delinquencies (2) Unaudited 2009 $ 1,341 $ 1,697 $ 1,762 $ 1,755 $ 1,752 $ 1,782 $ 1,792 $ 1,799 $ 1,802 $ 1,803 $ — 151,948 2010 — 977 1,157 1,139 1,146 1,165 1,173 1,173 1,174 1,174 — 90,403 2011 — — 910 931 913 929 938 939 939 939 — 69,155 2012 — — — 718 675 671 673 671 668 667 — 48,392 2013 — — — — 475 407 392 387 384 382 — 34,187 2014 — — — — — 328 288 269 261 259 — 26,434 2015 — — — — — — 235 208 187 181 — 21,372 2016 — — — — — — — 198 160 138 1 18,427 2017 — — — — — — — — 171 121 2 18,087 2018 — — — — — — — — — 117 16 11,269 Total incurred $ 5,781 (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, 2018. The information about the incurred claims development for the years ended December 31, 2009 to 2017 and the historical reported delinquencies as of December 31, 2017 and prior are presented as supplementary information. Incurred claims and allocated claim adjustment expenses Total of (Dollar amounts in millions) (1) For the years ended December 31, liabilities Accident year (2) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 claims as of 2018 (3) Number of delinquencies (4) Unaudited 2009 $ 153 $ 171 $ 193 $ 196 $ 199 $ 198 $ 198 $ 197 $ 197 $ 197 $ — 6,702 2010 — 137 151 169 171 170 169 170 169 169 — 6,601 2011 — — 134 151 153 153 152 151 150 150 — 5,707 2012 — — — 112 111 110 110 109 109 108 — 5,316 2013 — — — — 103 100 98 98 98 97 — 4,949 2014 — — — — — 92 88 86 86 85 — 4,948 2015 — — — — — — 103 92 88 87 — 4,626 2016 — — — — — — — 121 105 94 — 5,133 2017 — — — — — — — — 78 84 — 3,785 2018 — — — — — — — — — 85 24 3,688 Total incurred $ 1,156 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2018. (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 2018 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, 2018. The information about the incurred claims development for the years ended December 31, 2009 to 2017 and the historical reported delinquencies as of December 31, 2017 and prior are presented as supplementary information. Incurred claims and allocated claim adjustment expenses Total of (Dollar amounts in millions) (1) For the years ended December 31, liabilities Number of Accident year (2) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 December 31, 2018 reported delinquencies (3) Unaudited 2009 $ 68 $ 117 $ 113 $ 133 $ 131 $ 131 $ 130 $ 131 $ 131 $ 131 $ — 2,389 2010 — 56 110 143 143 141 141 139 139 139 — 2,342 2011 — — 77 147 143 137 135 133 133 132 — 2,339 2012 — — — 73 116 102 98 95 94 95 — 1,896 2013 — — — — 69 90 77 70 67 67 — 1,540 2014 — — — — — 65 91 77 72 70 — 1,433 2015 — — — — — — 76 114 96 93 1 1,549 2016 — — — — — — — 105 140 125 3 2,183 2017 — — — — — — — — 100 135 14 3,342 2018 — — — — — — — — — 96 33 3,215 Total incurred $ 1,083 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2018. (2) Represents the year in which first monthly mortgage payments have been missed by the borrower. (3) Represents outstanding delinquencies plus paid claims as of December 31, 2018 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, 2018: 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 9.0 % 39.7 % 25.5 % 11.4 % 6.0 % 3.6 % 2.5 % 1.7 % 1.1 % 0.8 % The following table sets forth our average payout of incurred claims by age for our Canada Mortgage Insurance segment as of December 31, 2018: Average annual percentage payout of incurred claims, by age Years 1 2 3 4 5 6 7 8 9 10 Percentage of payout 19.4% 63.0% 14.7% 1.7% (0.1 )% (0.2 )% (0.7 )% — % — % — % The following table sets forth our average payout of incurred claims by age for our Australia Mortgage Insurance segment as of December 31, 2018: Average annual percentage payout of incurred claims, by age Years 1 2 3 4 5 6 7 8 9 10 Percentage of payout 8.6 % 36.6 % 33.7 % 14.6 % 3.1 % 0.9 % 0.5 % 0.1 % 0.2 % — % |
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, 2018. The information about paid claims development for the years ended December 31, 2009 to 2017, is presented as supplementary information. (Amounts in millions) Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance Accident year (1) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Unaudited 2009 $ 285 $ 940 $ 1,245 $ 1,434 $ 1,556 $ 1,638 $ 1,709 $ 1,753 $ 1,777 $ 1,794 2010 — 140 567 844 973 1,049 1,109 1,139 1,158 1,167 2011 — — 65 497 722 816 874 906 927 935 2012 — — — 92 391 532 602 634 650 658 2013 — — — — 44 202 297 340 362 372 2014 — — — — — 22 127 195 233 247 2015 — — — — — — 12 85 145 167 2016 — — — — — — — 10 64 110 2017 — — — — — — — — 6 46 2018 — — — — — — — — — 3 Total paid $ 5,499 Total incurred $ 5,781 Total paid 5,499 All outstanding liabilities before 2009, net of reinsurance 14 Liability for policy and contract claims, net of reinsurance $ 296 (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, 2018. The information about paid claims development for the years ended December 31, 2009 to 2017, is presented as supplementary information. (Amounts in millions) Cumulative paid claims and allocated claim adjustment expenses Accident year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Unaudited 2009 $ 24 $ 128 $ 187 $ 196 $ 197 $ 198 $ 197 $ 197 $ 197 $ 197 2010 — 28 124 166 170 169 169 169 169 169 2011 — — 37 135 152 152 151 151 150 150 2012 — — — 24 100 107 108 108 108 107 2013 — — — — 25 88 96 98 98 97 2014 — — — — — 17 73 83 85 85 2015 — — — — — — 19 74 87 87 2016 — — — — — — — 17 81 91 2017 — — — — — — — — 12 61 2018 — — — — — — — — — 15 Total paid $ 1,059 Total incurred $ 1,156 Total paid 1,059 Other (3) (13 ) All outstanding liabilities before 2009 — Liability for policy and contract claims $ 84 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2018. (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 receiving in the future once the claims have been settled, foreign currency translation and differences in accounting basis under local Canadian International Financial Reporting Standards. The following table sets forth paid claims development, for our Australia Mortgage Insurance segment for the year ended December 31, 2018. The information about paid claims development for the years ended December 31, 2009 to December 31, 2017, is presented as supplementary information: (Amounts in millions) (1) Cumulative paid claims and allocated claim adjustment expenses Accident year (2) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Unaudited 2009 $ 13 $ 46 $ 77 $ 121 $ 129 $ 130 $ 130 $ 130 $ 131 $ 131 2010 — 6 32 113 134 137 138 139 139 139 2011 — — 5 74 121 130 132 132 132 132 2012 — — — 12 67 86 91 92 93 94 2013 — — — — 10 39 56 62 65 66 2014 — — — — — 6 28 51 64 67 2015 — — — — — — 4 31 71 84 2016 — — — — — — — 7 56 93 2017 — — — — — — — — 10 54 2018 — — — — — — — — — 12 Total paid $ 872 Total incurred $ 1,083 Total paid 872 Other (3) (15 ) All outstanding liabilities before 2009 — Liability for policy and contract claims $ 196 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2018. (2) Represents the year in which 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) 2018 2017 2016 Beginning balance as of January 1 $ 8,548 $ 8,034 $ 6,749 Less reinsurance recoverables (2,292 ) (2,310 ) (2,055 ) Net balance as of January 1 6,256 5,724 4,694 Incurred related to insured events of: Current year 2,548 2,234 2,066 Prior years 130 (183 ) 377 Total incurred 2,678 2,051 2,443 Paid related to insured events of: Current year (201 ) (176 ) (166 ) Prior years (1,814 ) (1,644 ) (1,506 ) Total paid (2,015 ) (1,820 ) (1,672 ) Interest on liability for policy and contract claims 335 301 259 Net balance as of December 31 7,254 6,256 5,724 Add reinsurance recoverables 2,262 2,292 2,310 Ending balance as of December 31 $ 9,516 $ 8,548 $ 8,034 |
Borrowings and Other Financin_2
Borrowings and Other Financings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Long Term Borrowings | The following table sets forth total long-term borrowings as of December 31: (Amounts in millions) 2018 2017 Genworth Holdings Floating Rate Senior Secured Term Loan Facility, due 2023 $ 445 $ — 6.52% Senior Notes, due 2018 — 597 7.70% Senior Notes, due 2020 397 397 7.20% Senior Notes, due 2021 381 381 7.625% Senior Notes, due 2021 703 704 4.90% Senior Notes, due 2023 399 399 4.80% Senior Notes, due 2024 400 400 6.50% Senior Notes, due 2034 297 297 Floating Rate Junior Subordinated Notes, due 2066 598 598 Subtotal 3,620 3,773 Bond consent fees (32 ) (33 ) Deferred borrowing charges (21 ) (16 ) Total Genworth Holdings 3,567 3,724 Canada 5.68% Senior Notes, due 2020 202 219 4.24% Senior Notes, due 2024 117 128 Subtotal 319 347 Deferred borrowing charges (1 ) (1 ) Total Canada 318 346 Australia Floating Rate Junior Subordinated Notes, due 2025 141 156 Deferred borrowing charges (1 ) (2 ) Total Australia 140 154 Total $ 4,025 $ 4,224 |
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, 2018: (Amounts in millions) Amount 2019 $ — 2020 599 2021 1,084 2022 — 2023 and thereafter (1) 2,712 Total $ 4,395 |
Remaining Contractual Maturity of Agreements | The following tables present the remaining contractual maturity of the agreements as of December 31: 2018 (Amounts in millions) Overnight and continuous Up to 30 days 31 - 90 days Greater than 90 days Total Securities lending: Fixed maturity securities: Non-U.S. government $ 11 $ — $ — $ — $ 11 U.S. corporate 67 — — — 67 Non-U.S. corporate 23 — — — 23 Subtotal, fixed maturity securities 101 — — — 101 Equity securities 1 — — — 1 Total securities lending $ 102 $ — $ — $ — $ 102 2017 (Amounts in millions) Overnight and continuous Up to 30 days 31 - 90 days Greater than 90 days Total 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Domestic $ (63 ) $ 397 $ (283 ) Foreign 511 332 603 Income from continuing operations before income taxes $ 448 $ 729 $ 320 |
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) 2018 2017 2016 Current federal income taxes $ 11 $ (32 ) $ 55 Deferred federal income taxes (18 ) (274 ) 115 Total federal income taxes (7 ) (306 ) 170 Current state income taxes 1 1 1 Deferred state income taxes — 6 2 Total state income taxes 1 7 3 Current foreign income taxes 134 192 183 Deferred foreign income taxes 23 (100 ) 2 Total foreign income taxes 157 92 185 Total provision (benefit) for income taxes $ 151 $ (207 ) $ 358 |
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) 2018 2017 2016 Statutory U.S. federal income tax rate 21.0 % 35.0 % 35.0 % Increase (reduction) in rate resulting from: Effect of foreign operations 7.7 — (1.6 ) Swaps terminated prior to the TCJA 5.1 — — Stock-based compensation 1.3 0.4 1.6 Valuation allowance (1.7 ) (35.4 ) 72.8 Net impact of repatriating foreign earnings — — 2.8 Other, net (0.2 ) 1.5 1.3 TCJA, impact from change in rate 2.7 (21.1 ) — TCJA, impact from foreign operations (2.2 ) (8.8 ) — Effective rate 33.7 % (28.4 )% 111.9 % |
Components of Net Deferred Income Tax Liability | The components of our deferred income taxes were as follows as of December 31: (Amounts in millions) 2018 2017 Assets: Foreign tax credit carryforwards $ 265 $ 603 Net operating loss carryforwards 298 499 State income taxes 326 347 Insurance reserves 706 146 Accrued commission and general expenses 116 127 Net unrealized on derivatives 10 — Investments 5 27 Other 42 34 Gross deferred income tax assets 1,768 1,783 Valuation allowance (334 ) (363 ) Total deferred income tax assets 1,434 1,420 Liabilities: Net unrealized gains on investment securities 153 325 Net unrealized gains on derivatives — 28 DAC 336 396 PVFP and other intangibles 52 38 Insurance reserves transition adjustment 149 134 Other 32 22 Total deferred income tax liabilities 722 943 Net deferred income tax asset $ 712 $ 477 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (Amounts in millions) 2018 2017 2016 Balance as of January 1 $ 42 $ 34 $ 28 Tax positions related to the current period: Gross additions 2 2 6 Gross reductions (3 ) (1 ) — Tax positions related to the prior years: Gross additions 40 13 — Gross reductions (2 ) (6 ) — Balance as of December 31 $ 79 $ 42 $ 34 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Cash Award Activity | The following table summarizes cash award activity as of December 31, 2018 and 2017: Time-based cash awards Performance-based cash awards (Awards in millions) Number of Number of Balance as of January 1, 2017 16 4 Granted 13 4 Vested (9 ) — Forfeited (2 ) — Balance as of January 1, 2018 18 8 Granted 17 9 Performance adjustment — 1 Vested (10 ) — Forfeited (1 ) (1 ) Balance as of December 31, 2018 24 17 |
Rollforward of Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding | The following table summarizes stock option activity as of December 31, 2018 and 2017: (Shares in thousands) Shares subject to option Weighted-average exercise price Balance as of January 1, 2017 1,814 $ 11.83 Granted — $ — Exercised (8 ) $ 2.46 Expired and forfeited (226 ) $ 15.32 Balance as of January 1, 2018 1,580 $ 11.38 Granted — $ — Exercised (108 ) $ 2.37 Expired and forfeited (354 ) $ 12.88 Balance as of December 31, 2018 1,118 $ 11.77 Exercisable as of December 31, 2018 1,118 $ 11.77 |
Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding as of December 31, 2018: Outstanding and Exercisable Exercise price range Shares in thousands Average life (1) Average exercise price $2.46 (2) 200 0.12 $ 2.46 $7.80 – $12.75 65 0.86 $ 8.76 $14.18 840 1.11 $ 14.18 $14.92 13 1.42 $ 14.92 1,118 $ 11.77 (1) Average contractual life remaining in years. (2) Shares for total options outstanding and exercisable each have an aggregate intrinsic value of less than $1 million. |
Status of Our Other Equity-Based Awards | The following tables summarize the status of our other equity-based awards as of December 31, 2018 and 2017: 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, 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 January 1, 2018 3,651 $ 5.14 4,584 $ 3.65 1,259 $ 5.70 10,301 $ 3.45 Granted 739 $ 3.58 739 $ 3.58 278 $ 2.54 — $ — Performance adjustment (1) — $ — 236 $ 4.01 — $ — — $ — Exercised (1,881 ) $ 5.84 — $ — (271 ) $ 6.98 (142 ) $ 1.31 Terminated (153 ) $ 4.56 (629 ) $ 6.45 — $ — (1,532 ) $ 3.84 Balance as of December 31, 2018 2,356 $ 4.14 4,930 $ 3.30 1,266 $ 4.76 8,627 $ 3.42 (1) The performance adjustment relates to additional awards expected to be earned through the achievement of certain performance metrics. |
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, 2018 and 2017: 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, 2017 957 235 64 45 Granted 70 83 10 2 Performance adjustment — 14 — — Exercised (192 ) (92 ) — — Terminated (10 ) (21 ) — — Balance as of January 1, 2018 825 219 74 47 Granted 57 85 11 4 Performance adjustment — 6 — — Exercised (230 ) (65 ) (4 ) (24 ) Terminated (4 ) (14 ) (1 ) (1 ) Balance as of December 31, 2018 648 231 80 26 |
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, 2018 and 2017: Restricted share rights Long-term incentive plan (Shares in thousands) Shares subject to option Shares subject to option Balance as of January 1, 2017 1,276 920 Granted 382 721 Exercised (633 ) — Terminated (157 ) (154 ) Balance as of January 1, 2018 868 1,487 Granted 198 709 Exercised (523 ) (34 ) Terminated (116 ) (335 ) Balance as of December 31, 2018 427 1,827 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 Notional Carrying Fair value (Amounts in millions) amount amount Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1 ) $ 6,687 $ 6,737 $ — $ — $ 6,737 Restricted commercial mortgage loans (2) (1 ) 62 66 — — 66 Other invested assets (1 ) 248 248 — — 248 Liabilities: Long-term borrowings (3) (1 ) 4,025 3,577 — 3,434 143 Non-recourse funding obligations (3) (1 ) 311 215 — — 215 Investment contracts (1 ) 13,105 13,052 — — 13,052 Other firm commitments: Commitments to fund limited partnerships 539 — — — — — Commitments to fund bank loan investments 33 — — — — — Ordinary course of business lending commitments 73 — — — — — 2017 Notional Carrying Fair value (Amounts in millions) amount amount 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 — — — — — (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, 2018: (Amounts in millions) Fair value Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $ 4,631 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 $ 2,501 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 $ 2,378 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 $ 25,702 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 $ 9,759 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 $ 3,009 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 $ 2,921 Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports Other asset-backed $ 3,261 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: A portion of our non-U.S. government, U.S. corporate and non-U.S. corporate securities are valued using internal models. The fair value of these fixed maturity securities were $15 million, $1,062 million, and $546 million, respectively, as of December 31, 2018. Internally modeled securities are primarily private fixed maturity securities where we use market observable inputs such as an interest rate yield curve, published credit spreads for similar securities based on the external ratings of the instrument and related industry sector of the issuer. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps and liquidity premiums are established using inputs from market participants. |
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: 2018 (Amounts in millions) Total Level 1 Level 2 Level 3 NAV (1) Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,631 $ — $ 4,631 $ — $ — State and political subdivisions 2,552 — 2,501 51 — Non-U.S. government 2,393 — 2,393 — — U.S. corporate: Utilities 4,675 — 4,032 643 — Energy 2,419 — 2,298 121 — Finance and insurance 6,822 — 6,288 534 — Consumer—non-cyclical 5,048 — 4,975 73 — Technology and communications 2,855 — 2,805 50 — Industrial 1,238 — 1,199 39 — Capital goods 2,391 — 2,299 92 — Consumer—cyclical 1,597 — 1,386 211 — Transportation 1,320 — 1,263 57 — Other 397 — 219 178 — Total U.S. corporate 28,762 — 26,764 1,998 — Non-U.S. corporate: Utilities 1,041 — 637 404 — Energy 1,369 — 1,152 217 — Finance and insurance 2,423 — 2,252 171 — Consumer—non-cyclical 739 — 633 106 — Technology and communications 1,165 — 1,139 26 — Industrial 945 — 884 61 — Capital goods 615 — 442 173 — Consumer—cyclical 520 — 398 122 — Transportation 720 — 549 171 — Other 2,300 — 2,219 81 — Total non-U.S. corporate 11,837 — 10,305 1,532 — Residential mortgage-backed 3,044 — 3,009 35 — Commercial mortgage-backed 3,016 — 2,921 95 — Other asset-backed 3,426 — 3,261 165 — Total fixed maturity securities 59,661 — 55,785 3,876 — Equity securities 655 533 64 58 — Other invested assets: Derivative assets: Interest rate swaps 42 — 42 — — Interest rate swaps in a foreign currency 74 — 74 — — Interest rate caps and floors 7 — 7 — — Foreign currency swaps 6 — 6 — — Equity index options 39 — — 39 — Other foreign currency contracts 10 — 10 — — Total derivative assets 178 — 139 39 — Securities lending collateral 103 — 103 — — Short-term investments 230 — 230 — — Limited partnerships 318 — — — 318 Total other invested assets 511 — 472 39 318 Reinsurance recoverable (2) 20 — — 20 — Separate account assets 5,859 5,859 — — — Total assets $ 66,706 $ 6,392 $ 56,321 $ 3,993 $ 318 (1) Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. 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 — Interest rate swaps in a foreign currency 105 — 105 — Foreign currency swaps 12 — 12 — Equity index options 80 — — 80 Other foreign currency contracts 5 — 5 — 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. |
Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value | The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: Beginning balance as of Total realized and unrealized gains (losses) Transfer Transfer Ending balance as of Total gains (losses) included in net income (loss) attributable (Amounts in millions) January 1, 2018 Included in net income (loss) Included in OCI Purchases Sales Issuances Settlements into Level 3 (1) out of Level 3 (1) December 31, 2018 to assets still held Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 1 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ — $ — State and political subdivisions 37 3 4 — — — — 18 (11 ) 51 3 U.S. corporate: Utilities 574 (1 ) (40 ) 111 (12 ) — (6 ) 55 (38 ) 643 — Energy 147 — (7 ) 22 — — (34 ) — (7 ) 121 — Finance and insurance 626 — (77 ) 84 — — (122 ) 49 (26 ) 534 1 Consumer—non-cyclical 81 — (3 ) — — — (5 ) — — 73 — Technology and communications 73 — (6 ) 20 — — (60 ) 31 (8 ) 50 — Industrial 39 — — — — — — — — 39 — Capital goods 121 — (10 ) 33 — — (45 ) — (7 ) 92 — Consumer—cyclical 262 — (12 ) 17 (5 ) — (19 ) — (32 ) 211 — Transportation 60 — (2 ) 3 — — (4 ) — — 57 — Other 169 — (3 ) — (10 ) — (8 ) 30 — 178 — Total U.S. corporate 2,152 (1 ) (160 ) 290 (27 ) — (303 ) 165 (118 ) 1,998 1 Non-U.S. corporate: Utilities 343 — (19 ) 52 — — (20 ) 69 (21 ) 404 — Energy 176 — (9 ) 53 — — (29 ) 26 — 217 — Finance and insurance 161 4 (13 ) 6 — — (2 ) 16 (1 ) 171 4 Consumer—non-cyclical 124 — (5 ) — — — (20 ) 7 — 106 — Technology and communications 29 — — 10 — — (13 ) — — 26 — Industrial 116 — (5 ) 3 — — (10 ) — (43 ) 61 — Capital goods 191 1 (8 ) 15 — — (26 ) — — 173 1 Consumer—cyclical 54 — (5 ) 30 (1 ) — (3 ) 48 (1 ) 122 — Transportation 170 (2 ) (9 ) 45 (18 ) — — 18 (33 ) 171 — Other 52 — (4 ) 33 — — — — — 81 — Total non-U.S. corporate 1,416 3 (77 ) 247 (19 ) — (123 ) 184 (99 ) 1,532 5 Residential mortgage-backed 77 — — 37 — — (1 ) 14 (92 ) 35 — Commercial mortgage-backed 30 — (4 ) 70 — — — 31 (32 ) 95 — Other asset-backed 237 — (3 ) 134 (16 ) — (92 ) 54 (149 ) 165 — Total fixed maturity securities 3,950 5 (240 ) 778 (62 ) — (520 ) 466 (501 ) 3,876 9 Equity securities 44 — — 18 (4 ) — — — — 58 — Other invested assets: Derivative assets: Equity index options 80 (34 ) — 74 — — (81 ) — — 39 (26 ) Total derivative assets 80 (34 ) — 74 — — (81 ) — — 39 (26 ) Total other invested assets 80 (34 ) — 74 — — (81 ) — — 39 (26 ) Reinsurance recoverable (2) 14 5 — — — 1 — — — 20 5 Total Level 3 assets $ 4,088 $ (24 ) $ (240 ) $ 870 $ (66 ) $ 1 $ (601 ) $ 466 $ (501 ) $ 3,993 $ (12 ) (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. Total gains (losses) Beginning Total realized and Ending included in balance unrealized gains balance net income (loss) as of (losses) Transfer Transfer as of attributable January 1, Included in Included into out of December 31, to assets (Amounts in millions) 2017 net income (loss) in OCI Purchases Sales Issuances Settlements Level 3 (1) Level 3 (1) 2017 still held 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: Equity index options 72 57 — 72 — — (121 ) — — 80 36 Other foreign currency 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 (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. Total gains (losses) Beginning Total realized and Ending included in balance unrealized gains balance net income (loss) as of (losses) Transfer Transfer as of attributable January 1, Included in Included into out of December 31, to assets (Amounts in millions) 2016 net income (loss) in OCI Purchases Sales Issuances Settlements Level 3 (1) Level 3 (1) 2016 still held 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 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. |
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) 2018 2017 2016 Total realized and unrealized gains (losses) included in net income (loss): Net investment income $ 8 $ 26 $ 44 Net investment gains (losses) (32 ) 63 (70 ) Total $ (24 ) $ 89 $ (26 ) Total gains (losses) included in net income (loss) attributable to assets still held: Net investment income $ 9 $ 22 $ 30 Net investment gains (losses) (21 ) 29 (13 ) Total $ (12 ) $ 51 $ 17 |
Summary of Significant Unobservable Inputs Used for Certain Asset and Liability 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, 2018: (Amounts in millions) Valuation technique Fair value Unobservable input Range Weighted-average Fixed maturity securities: U.S. corporate: Utilities Internal models $ 621 Credit spreads 83bps - 325bps 158bps Energy Internal models 99 Credit spreads 107bps - 315bps 192bps Finance and insurance Internal models 528 Credit spreads 91bps - 286bps 194bps Consumer—non-cyclical Internal models 73 Credit spreads 116bps - 218bps 157bps Technology and Internal models 50 Credit spreads 115bps - 315bps 214bps Industrial Internal models 39 Credit spreads 141bps - 268bps 195bps Capital goods Internal models 92 Credit spreads 132bps - 289bps 183bps Consumer—cyclical Internal models 197 Credit spreads 85bps - 258bps 165bps Transportation Internal models 51 Credit spreads 77bps - 258bps 124bps Other Internal models 149 Credit spreads 91bps - 153bps 104bps Total U.S. corporate Internal models $ 1,899 Credit spreads 77bps - 325bps 169bps Non-U.S. Utilities Internal models $ 404 Credit spreads 87bps - 249bps 155bps Energy Internal models 197 Credit spreads 132bps - 318bps 190bps Finance and insurance Internal models 165 Credit spreads 85bps - 265bps 163bps Consumer—non-cyclical Internal models 106 Credit spreads 77bps - 201bps 152bps Technology and Internal models 26 Credit spreads 159bps - 201bps 190bps Industrial Internal models 61 Credit spreads 133bps - 218bps 167bps Capital goods Internal models 173 Credit spreads 107bps - 300bps 193bps Consumer—cyclical Internal models 98 Credit spreads 105bps - 289bps 227bps Transportation Internal models 171 Credit spreads 107bps - 258bps 159bps Other Internal models 81 Credit spreads 118bps - 265bps 192bps Total non-U.S. Internal models $ 1,482 Credit spreads 77bps - 318bps 173bps Derivative assets: Equity index options Discounted cash flows $ 39 Equity index volatility 6% - 34% 19% 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, 2018: (Amounts in millions) Valuation technique Fair value Unobservable input Range Weighted- Policyholder account balances: Withdrawal utilization rate 43% - 87% 68% Lapse rate 2% - 9% 3% Non-performance risk (credit spreads) 25bps - 83bps 69bps GMWB embedded (1) Stochastic cash flow model $ 337 Equity index volatility 17% - 24% 21% Fixed index annuity embedded Option budget method $ 389 Expected future interest credited —% - 3% 1% Indexed universal life embedded Option budget method $ 12 Expected future interest credited 3% - 10% 6% (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
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: 2018 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 337 $ — $ — $ 337 Fixed index annuity embedded derivatives 389 — — 389 Indexed universal life embedded derivatives 12 — — 12 Total policyholder account balances 738 — — 738 Derivative liabilities: Interest rate swaps 102 — 102 — Foreign currency swaps 23 — 23 — Equity return swaps 1 — 1 — Other foreign currency contracts 42 — 42 — Total derivative liabilities 168 — 168 — Total liabilities $ 906 $ — $ 168 $ 738 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. 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. |
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: Total realized and losses Total (gains) (Amounts in millions) Beginning January 1, Included Included Purchases Sales Issuances Settlements Transfer Transfer Ending of December 31, net (income) to liabilities still held Policyholder account GMWB embedded derivatives (1) $ 250 $ 59 $ — $ — $ — $ 28 $ — $ — $ — $ 337 $ 61 Fixed index annuity embedded derivatives 419 (15 ) — — — — — — (15 ) 389 (15 ) Indexed universal life embedded derivatives 14 (13 ) — — — 11 — — — 12 (13 ) Total policyholder account balances 683 31 — — — 39 — — (15 ) 738 33 Total Level 3 liabilities $ 683 $ 31 $ — $ — $ — $ 39 $ — $ — $ (15 ) $ 738 $ 33 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Gains and Losses Included in Net (Income) 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) 2018 2017 2016 Total realized and unrealized (gains) losses included in net (income) loss: Net investment income $ — $ — $ — Net investment (gains) losses 31 (6 ) (79 ) Other income — — (64 ) Total $ 31 $ (6 ) $ (143 ) Total (gains) losses included in net (income) loss attributable to liabilities still held: Net investment income $ — $ — $ — Net investment (gains) losses 33 (4 ) (60 ) Total $ 33 $ (4 ) $ (60 ) |
Variable Interest and Securit_2
Variable Interest and Securitization Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Variable Interest Entities | The following table shows the assets and liabilities that were recorded for the consolidated securitization as of December 31: (Amounts in millions) 2018 2017 Assets Investments: Restricted commercial mortgage loans $ 62 $ 107 Total investments 62 107 Cash, cash equivalents and restricted cash 1 1 Total assets $ 63 $ 108 Liabilities Borrowings related to securitization entities $ — $ 40 Total liabilities $ — $ 40 |
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) 2018 2017 2016 Revenues: Net investment income: Restricted commercial mortgage loans $ 7 $ 9 $ 10 Restricted other invested assets — 1 3 Total net investment income 7 10 13 Net investment gains (losses): Derivatives — 7 8 Trading securities — — (57 ) Borrowings related to securitization entities recorded at fair value — — (1 ) Total net investment gains (losses) — 7 (50 ) Other income — — 64 Total revenues 7 17 27 Expenses: Interest expense 2 6 7 Total expenses 2 6 7 Income before income taxes 5 11 20 Provision (benefit) for income taxes 1 (6 ) 7 Net income $ 4 $ 17 $ 13 |
Insurance Subsidiary Financia_2
Insurance Subsidiary Financial Information and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Combined statutory net income (loss): Life insurance subsidiaries, excluding captive life reinsurance subsidiaries $ (895 ) $ (272 ) $ (365 ) Mortgage insurance subsidiaries 697 512 448 Combined statutory net income, excluding captive reinsurance subsidiaries (198 ) 240 83 Captive life insurance subsidiaries 1,520 (36 ) (403 ) Combined statutory net income (loss) $ 1,322 $ 204 $ (320 ) As of December 31, (Amounts in millions) 2018 2017 Combined statutory capital and surplus: Life insurance subsidiaries, excluding captive life reinsurance subsidiaries $ 1,880 $ 2,776 Mortgage insurance subsidiaries 3,206 2,772 Combined statutory capital and surplus $ 5,086 $ 5,548 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 U.S. Mortgage Insurance Canada Mortgage Insurance Australia Mortgage Insurance U.S. Life Insurance Runoff Corporate and Other Total (Amounts in millions) Premiums $ 746 $ 525 $ 373 $ 2,867 $ — $ 8 $ 4,519 Net investment income 93 138 67 2,781 174 9 3,262 Net investment gains (losses) — (137 ) (15 ) 29 (33 ) 10 (146 ) Policy fees and other income 2 — 2 641 153 (3 ) 795 Total revenues 841 526 427 6,318 294 24 8,430 Benefits and other changes in policy reserves 36 78 110 5,416 39 5 5,684 Interest credited — — — 461 150 — 611 Acquisition and operating expenses, net of deferrals 169 70 65 584 57 52 997 Amortization of deferred acquisition costs and intangibles 14 43 43 257 33 1 391 Interest expense — 18 9 16 — 256 299 Total benefits and expenses 219 209 227 6,734 279 314 7,982 Income (loss) from continuing operations before income taxes 622 317 200 (416 ) 15 (290 ) 448 Provision (benefit) for income taxes 132 84 60 (68 ) 2 (59 ) 151 Income (loss) from continuing operations 490 233 140 (348 ) 13 (231 ) 297 Loss from discontinued operations, net of taxes — — — — — — — Net income (loss) 490 233 140 (348 ) 13 (231 ) 297 Less: net income attributable to noncontrolling interests — 108 70 — — — 178 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 490 $ 125 $ 70 $ (348 ) $ 13 $ (231 ) $ 119 Total assets $ 3,583 $ 5,038 $ 2,534 $ 79,799 $ 9,963 $ 6 $ 100,923 2017 U.S. Mortgage Insurance Canada Mortgage Insurance Australia Mortgage Insurance U.S. Life Insurance Runoff Corporate and Other 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. Mortgage Insurance Canada Mortgage Insurance Australia Mortgage Insurance U.S. Life Insurance Runoff Corporate and Other 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 ) |
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) 2018 2017 2016 Revenues: U.S. Mortgage Insurance segment $ 841 $ 772 $ 726 Canada Mortgage Insurance segment 526 780 645 Australia Mortgage Insurance segment 427 (40 ) 440 U.S. Life Insurance segment: Long-term care insurance 4,197 4,062 4,037 Life insurance 1,430 1,591 1,381 Fixed annuities 691 818 832 U.S. Life Insurance segment 6,318 6,471 6,250 Runoff segment 294 339 302 Corporate and Other activities 24 (27 ) 6 Total revenues $ 8,430 $ 8,295 $ 8,369 |
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) 2018 2017 2016 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 119 $ 817 $ (277 ) Add: net income attributable to noncontrolling interests 178 110 210 Net income (loss) 297 927 (67 ) Loss from discontinued operations, net of taxes — (9 ) (29 ) Income (loss) from continuing operations 297 936 (38 ) Less: income from continuing operations attributable to noncontrolling interests 178 110 210 Income (loss) from continuing operations available to Genworth Financial, Inc.’s 119 826 (248 ) Adjustments to income (loss) from continuing operations available to Genworth Net investment (gains) losses, net (1) 68 (202 ) (66 ) (Gains) losses from sale of businesses — — (3 ) (Gains) losses on early extinguishment of debt, net — — (48 ) Losses from life block transactions — — 9 Expenses related to restructuring 2 2 22 Fees associated with bond consent solicitation 6 — 18 Taxes on adjustments (16 ) 70 — Adjusted operating income (loss) available to Genworth Financial, Inc.’s $ 179 $ 696 $ (316 ) (1) For the years ended December 31, 2018, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(12) million, $(3) million and $(14) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $(66) million, $66 million and $20 million, respectively. (Amounts in millions) 2018 2017 2016 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: U.S. Mortgage Insurance segment $ 490 $ 311 $ 250 Canada Mortgage Insurance segment 187 157 146 Australia Mortgage Insurance segment 76 (88 ) 62 U.S. Life Insurance segment: Long-term care insurance (348 ) 59 (200 ) Life insurance (107 ) (79 ) (83 ) Fixed annuities 79 42 68 U.S. Life Insurance segment (376 ) 22 (215 ) Runoff segment 35 51 28 Corporate and Other activities (233 ) 243 (587 ) Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ 179 $ 696 $ (316 ) |
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: 2018 (Amounts in millions) United Canada Australia Other Countries Total International Total Total revenues $ 7,468 $ 526 $ 427 $ 9 $ 962 $ 8,430 Income (loss) from continuing operations $ (72 ) $ 233 $ 140 $ (4 ) $ 369 $ 297 Net income (loss) $ (72 ) $ 233 $ 140 $ (4 ) $ 369 $ 297 Total assets $ 93,296 $ 5,038 $ 2,534 $ 55 $ 7,627 $ 100,923 2017 (Amounts in millions) United Canada Australia Other Countries Total International 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 Countries Total International 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 ) |
Quarterly Results of Operatio_2
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Results of Operations | Our unaudited quarterly results of operations for the year ended December 31, 2018 are summarized in the table below. Three months ended (Amounts in millions, except per share amounts) March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Total revenues (1) $ 2,115 $ 2,159 $ 2,143 $ 2,013 Total benefits and expenses (2) $ 1,887 $ 1,799 $ 1,870 $ 2,426 Income (loss) from continuing operations (3) $ 165 $ 249 $ 210 $ (327 ) Loss from discontinued operations, net of taxes $ — $ — $ — $ — Net income (loss) (3) $ 165 $ 249 $ 210 $ (327 ) interests noncontrollingNet income attributable to (4) $ 53 $ 59 $ 64 $ 2 Financial, Inc.’s common stockholders GenworthNet income (loss) available to (3) $ 112 $ 190 $ 146 $ (329 ) Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.22 $ 0.38 $ 0.29 $ (0.66 ) Diluted $ 0.22 $ 0.38 $ 0.29 $ (0.66 ) Net income (loss) available to Genworth Financial, Inc.’s common Basic $ 0.22 $ 0.38 $ 0.29 $ (0.66 ) Diluted $ 0.22 $ 0.38 $ 0.29 $ (0.66 ) Weighted-average common shares outstanding: Basic 499.6 500.6 500.7 500.8 Diluted (5) 502.7 502.6 503.3 500.8 (1) Includes net investment losses of $114 million in the fourth quarter of 2018 primarily from our Canada Mortgage Insurance segment. These losses were primarily related to derivative losses on foreign currency swaps and forwards, and losses on preferred equity securities primarily driven by a decrease in interest rates in Canada during the fourth quarter of 2018. (2) Our long-term care insurance business completed its annual review of claim reserves in the fourth quarter of 2018, which resulted in higher total benefits and expenses of $291 million driven mostly by updates to several assumptions and methodologies, including benefit utilization rates, claim termination rates and other assumptions. Also in our long-term care insurance business, we refined our estimate of unreported policy terminations, which resulted in an unfavorable reserve adjustment of $36 million in 2018. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2018, which resulted in higher total benefits and expenses of $108 million in our universal and term universal life insurance products driven mostly by lower expected growth in interest rates and emerging mortality experience primarily in our term universal life insurance product. (3) In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. (4) Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above, of which the amount attributable to noncontrolling interests was $45 million, net of taxes. (5) 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 December 31, 2018, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended December 31, 2018, as the inclusion of shares for stock options, RSUs and SARs of 7.6 million 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 December 31, 2018, dilutive potential weighted-average common shares outstanding would have been 508.4 million. 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 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. |
Changes In Accumulated Other _2
Changes In Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 gains (1) Derivatives as hedges (2) Foreign and other Total Balances as of January 1, 2018 $ 1,085 $ 2,065 $ (123 ) $ 3,027 Cumulative effect of changes in accounting 164 14 (47 ) 131 OCI before reclassifications (653 ) (194 ) (301 ) (1,148 ) Amounts reclassified from (to) OCI (18 ) (104 ) — (122 ) Current period OCI (671 ) (298 ) (301 ) (1,270 ) Balances as of December 31, 2018 before noncontrolling interests 578 1,781 (471 ) 1,888 Less: change in OCI attributable to noncontrolling interests (17 ) — (139 ) (156 ) Balances as of December 31, 2018 $ 595 $ 1,781 $ (332 ) $ 2,044 (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 gains (losses) (1) Derivatives as hedges (2) Foreign translation adjustments 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 unrealized (1) Derivatives (2) Foreign translation 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. |
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 accumulated Affected line item in the Years ended December 31, consolidated statements (Amounts in millions) 2018 2017 2016 of income Net unrealized investment (gains) losses: Unrealized (gains) losses on investments (1) $ (23 ) $ (157 ) $ (88 ) Net investment (gains) losses (Provision) benefit for income taxes 5 55 31 (Provision) benefit for income taxes Total $ (18 ) $ (102 ) $ (57 ) Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (153 ) $ (131 ) $ (112 ) Net investment income Interest rate swaps hedging assets (9 ) (8 ) (2 ) Net investment (gains) losses Inflation indexed swaps — — (2 ) Net investment income Inflation indexed swaps — — (7 ) Net investment (gains) losses (Provision) benefit for income taxes 58 81 43 (Provision) benefit for income taxes Total $ (104 ) $ (58 ) $ (80 ) (1) Amounts exclude adjustments to DAC, PVFP, sales inducements and benefit reserves. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Consolidating Balance Sheet | The following table presents the condensed consolidating balance sheet information as of December 31, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ — $ 59,861 $ (200 ) $ 59,661 Equity securities, at fair value — — 655 — 655 Commercial mortgage loans — — 6,687 — 6,687 Restricted commercial mortgage loans related to securitization entities — — 62 — 62 Policy loans — — 1,861 — 1,861 Other invested assets — 86 1,104 (2 ) 1,188 Investments in subsidiaries 12,570 11,462 — (24,032 ) — Total investments 12,570 11,548 70,230 (24,234 ) 70,114 Cash, cash equivalents and restricted cash — 429 1,748 — 2,177 Accrued investment income — — 679 (4 ) 675 Deferred acquisition costs — — 3,263 — 3,263 Intangible assets and goodwill — — 347 — 347 Reinsurance recoverable — — 17,278 — 17,278 Other assets 15 62 397 — 474 Intercompany notes receivable — 180 6 (186 ) — Deferred tax assets 14 907 (185 ) — 736 Separate account assets — — 5,859 — 5,859 Total assets $ 12,599 $ 13,126 $ 99,622 $ (24,424 ) $ 100,923 Liabilities and stockholders’ equity Liabilities: Future policy benefits $ — $ — $ 37,940 $ — $ 37,940 Policyholder account balances — — 22,968 — 22,968 Liability for policy and contract claims — — 10,379 — 10,379 Unearned premiums — — 3,546 — 3,546 Other liabilities 27 97 1,565 (7 ) 1,682 Intercompany notes payable 122 207 57 (386 ) — Non-recourse funding obligations — — 311 — 311 Long-term borrowings — 3,567 458 — 4,025 Deferred tax liability — — 24 — 24 Separate account liabilities — — 5,859 — 5,859 Total liabilities 149 3,871 83,107 (393 ) 86,734 Equity: Common stock 1 — 3 (3 ) 1 Additional paid-in capital 11,987 9,095 18,425 (27,520 ) 11,987 Accumulated other comprehensive income (loss) 2,044 2,144 2,060 (4,204 ) 2,044 Retained earnings 1,118 (1,984 ) (6,012 ) 7,996 1,118 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 12,450 9,255 14,476 (23,731 ) 12,450 Noncontrolling interests — — 2,039 (300 ) 1,739 Total equity 12,450 9,255 16,515 (24,031 ) 14,189 Total liabilities and equity $ 12,599 $ 13,126 $ 99,622 $ (24,424 ) $ 100,923 The following table presents the condensed consolidating balance sheet information as of December 31, 2017: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ — $ 62,725 $ (200 ) $ 62,525 Equity securities, 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, cash equivalents and restricted cash — 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 27 807 (330 ) — 504 Separate account assets — — 7,230 — 7,230 Total assets $ 13,591 $ 14,753 $ 103,803 $ (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 — — 27 — 27 Separate account liabilities — — 7,230 — 7,230 Total liabilities 173 4,102 86,117 (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 $ 14,753 $ 103,803 $ (26,850 ) $ 105,297 |
Condensed Consolidating Income Statement | The following table presents the condensed consolidating income statement information for the year ended December 31, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Revenues: Premiums $ — $ — $ 4,519 $ — $ 4,519 Net investment income (3 ) 14 3,266 (15 ) 3,262 Net investment gains (losses) — 16 (162 ) — (146 ) Policy fees and other income — — 798 (3 ) 795 Total revenues (3 ) 30 8,421 (18 ) 8,430 Benefits and expenses: Benefits and other changes in policy reserves — — 5,684 — 5,684 Interest credited — — 611 — 611 Acquisition and operating expenses, net of deferrals 33 10 954 — 997 Amortization of deferred acquisition costs and intangibles — — 391 — 391 Interest expense 2 268 47 (18 ) 299 Total benefits and expenses 35 278 7,687 (18 ) 7,982 Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries (38 ) (248 ) 734 — 448 Provision (benefit) for income taxes (6 ) (44 ) 201 — 151 Equity in income (loss) of subsidiaries 151 (176 ) — 25 — Income (loss) from continuing operations 119 (380 ) 533 25 297 Income (loss) from discontinued operations, net of taxes — — — — — Net income (loss) 119 (380 ) 533 25 297 Less: net income attributable to noncontrolling interests — — 178 — 178 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 119 $ (380 ) $ 355 $ 25 $ 119 The following table presents the condensed consolidating income statement information for the year ended December 31, 2017: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries 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 loss 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: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries 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 ) |
Condensed Consolidating Statement of Comprehensive Income | The following table presents the condensed consolidating comprehensive income statement information for the year ended December 31, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Net income (loss) $ 119 $ (380 ) $ 533 $ 25 $ 297 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (652 ) (602 ) (669 ) 1,254 (669 ) Net unrealized gains (losses) on other-than-temporarily impaired securities (2 ) (2 ) (2 ) 4 (2 ) Derivatives qualifying as hedges (298 ) (299 ) (310 ) 609 (298 ) Foreign currency translation and other adjustments (162 ) (129 ) (301 ) 291 (301 ) Total other comprehensive income (loss) (1,114 ) (1,032 ) (1,282 ) 2,158 (1,270 ) Total comprehensive loss (995 ) (1,412 ) (749 ) 2,183 (973 ) Less: comprehensive income attributable to noncontrolling interests — — 22 — 22 Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders $ (995 ) $ (1,412 ) $ (771 ) $ 2,183 $ (995 ) The following table presents the condensed consolidating comprehensive income statement information for the year ended December 31, 2017: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries 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: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries 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 ) |
Condensed Consolidating Statement of Cash Flows | The following table presents the condensed consolidating cash flow statement information for the year ended December 31, 2018: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries Eliminations Consolidated Cash flows from (used by) operating activities: Net income (loss) $ 119 $ (380 ) $ 533 $ 25 $ 297 Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: Equity in (income) loss from subsidiaries (151 ) 176 — (25 ) — Dividends from subsidiaries 50 182 (232 ) — — Amortization of fixed maturity securities discounts and premiums — — (122 ) — (122 ) Net investment (gains) losses — (16 ) 162 — 146 Charges assessed to policyholders — — (697 ) — (697 ) Acquisition costs deferred — — (83 ) — (83 ) Amortization of deferred acquisition costs and intangibles — — 391 — 391 Deferred income taxes 13 (105 ) 97 — 5 Trading securities, limited partnerships and derivative instruments — 17 (266 ) — (249 ) Stock-based compensation expense 35 — 2 — 37 Change in certain assets and liabilities: Accrued investment income and other assets — 6 (174 ) — (168 ) Insurance reserves — — 1,555 — 1,555 Current tax liabilities (35 ) 13 (30 ) — (52 ) Other liabilities, policy and contract claims and other policy-related balances (13 ) 14 570 2 573 Net cash from (used by) operating activities 18 (93 ) 1,706 2 1,633 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 3,756 — 3,756 Commercial mortgage loans — — 701 — 701 Restricted commercial mortgage loans related to securitization entities — — 45 — 45 Proceeds from sales of investments: Fixed maturity and equity securities — — 6,192 — 6,192 Purchases and originations of investments: Fixed maturity and equity securities — — (10,706 ) — (10,706 ) Commercial mortgage loans — — (1,047 ) — (1,047 ) Other invested assets, net — — 404 (2 ) 402 Policy loans, net — — 35 — 35 Intercompany notes receivable — (25 ) 53 (28 ) — Capital contributions to subsidiaries (6 ) — 6 — — Net cash used by investing activities (6 ) (25 ) (561 ) (30 ) (622 ) Cash flows used by financing activities: Deposits to universal life and investment contracts — — 1,193 — 1,193 Withdrawals from universal life and investment contracts — — (2,355 ) — (2,355 ) Proceeds from the issuance of long-term debt — 441 — — 441 Repayment and repurchase of long-term debt — (600 ) — — (600 ) Repayment of borrowings related to securitization entities — — (40 ) — (40 ) Intercompany notes payable (10 ) (52 ) 34 28 — Repurchase of subsidiary shares — — (105 ) — (105 ) Dividends paid to noncontrolling interests — — (97 ) — (97 ) Other, net (2 ) (37 ) (19 ) — (58 ) Net cash used by financing activities (12 ) (248 ) (1,389 ) 28 (1,621 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (88 ) — (88 ) Net change in cash, cash equivalents and restricted cash — (366 ) (332 ) — (698 ) Cash, cash equivalents and restricted cash at beginning of period — 795 2,080 — 2,875 Cash, cash equivalents and restricted cash at end of period $ — $ 429 $ 1,748 $ — $ 2,177 The following table presents the condensed consolidating cash flow statement information for the year ended December 31, 2017: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries 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 — 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 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, cash equivalents and restricted cash — — 64 — 64 Net change in cash, cash equivalents and restricted cash — (203 ) 294 — 91 Cash, cash equivalents and restricted cash at beginning of period — 998 1,786 — 2,784 Cash, cash equivalents and restricted cash 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: Parent All Other (Amounts in millions) Guarantor Issuer Subsidiaries 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 (used by) 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 — 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 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 (43 ) 723 5 705 Net cash from (used by) operating activities (82 ) 197 1,754 3 1,872 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 — (346 ) (36 ) — (382 ) 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 (392 ) (2,559 ) (82 ) (2,951 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (10 ) — (10 ) Net change in cash, cash equivalents and restricted cash — (126 ) (3,083 ) — (3,209 ) Cash, cash equivalents and restricted cash at beginning of period — 1,124 4,869 — 5,993 Cash, cash equivalents and restricted cash at end of period — 998 1,786 — 2,784 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. |
Nature of Business and Format_2
Nature of Business and Formation of Genworth - Additional Information (Detail) $ / shares in Units, $ in Billions | Oct. 21, 2016USD ($)$ / shares | Dec. 31, 2018Segment | 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 Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 01, 2017 | Dec. 31, 2018 | 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 | 3 | 468 | 0 | |||||
Cumulative effect on retained earnings | 17 | 9 | ||||||
Accumulated other comprehensive income | 2,044 | 3,027 | 3,094 | $ 3,010 | ||||
Net cash from operating activities | 1,633 | 2,554 | 1,872 | |||||
Net cash from financing activities | (1,621) | (1,768) | $ (2,951) | |||||
Right of use asset related to operating leases included in other assets | 67 | |||||||
Non-cash | Derivative assets | ||||||||
Accounting Policies [Abstract] | ||||||||
Fair value of non-cash collateral received | 40 | 70 | ||||||
Subject to enforceable master netting arrangement | ||||||||
Accounting Policies [Abstract] | ||||||||
Fair value of non-cash collateral received | (84) | (170) | ||||||
Fair value of collateral pledged | 536 | 288 | ||||||
Subject to enforceable master netting arrangement | Derivative liabilities | ||||||||
Accounting Policies [Abstract] | ||||||||
Fair value of collateral pledged | [1] | (536) | (288) | |||||
Subject to enforceable master netting arrangement | Derivative assets | ||||||||
Accounting Policies [Abstract] | ||||||||
Fair value of non-cash collateral received | [2] | (84) | (170) | |||||
Subject to enforceable master netting arrangement | Non Cash Collateral | Derivative liabilities | ||||||||
Accounting Policies [Abstract] | ||||||||
Fair value of collateral pledged | 536 | 288 | ||||||
Subject to enforceable master netting arrangement | Cash Collateral | Derivative liabilities | ||||||||
Accounting Policies [Abstract] | ||||||||
Fair value of collateral pledged | $ 57 | $ 59 | ||||||
Accounting Standards Update 2017-12 | Derivative and Hedging | ||||||||
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 | ||||||||
Accounting Policies [Abstract] | ||||||||
Net cash from operating activities | 20 | |||||||
Accounting Standards Update 2016-15 | Repayment and Repurchase of Long-Term Debt | ||||||||
Accounting Policies [Abstract] | ||||||||
Net cash from financing activities | (20) | |||||||
Adoption of Recognition and Measurement of Financial Assets and Liabilities Guidance | Limited Partner | ||||||||
Accounting Policies [Abstract] | ||||||||
Cumulative effect on retained earnings | 17 | |||||||
Adoption of Recognition and Measurement of Financial Assets and Liabilities Guidance | Equity Securities | ||||||||
Accounting Policies [Abstract] | ||||||||
Cumulative effect on retained earnings | 25 | |||||||
Accumulated other comprehensive income | $ (25) | |||||||
Accounting for Stock Compensation | ||||||||
Accounting Policies [Abstract] | ||||||||
Cumulative effect on retained earnings | $ 9 | |||||||
Deferred tax asset | $ 9 | |||||||
Accounting standards update 2016-02 | Subsequent Event | ||||||||
Accounting Policies [Abstract] | ||||||||
Cumulative effect on retained earnings | $ 0 | |||||||
Right of use asset related to operating leases included in other assets | $ 0 | |||||||
[1] | Does not include amounts related to embedded derivatives and derivatives related to securitization entities as of December 31, 2018 and 2017. | |||||||
[2] | Included $6 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of December 31, 2018 and 2017, respectively. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Components for Cumulative Effect Adjustment (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred taxes: | ||||
Net unrealized gains on investment securities | $ 153 | $ 325 | ||
Net unrealized gains on derivatives | 28 | |||
Accrued commission and general expenses | (116) | (127) | ||
Cumulative effect of changes in accounting | $ 164 | $ 0 | $ 0 | |
Tax Cuts And Jobs Act of 2017 | ||||
Deferred taxes: | ||||
Net unrealized gains on investment securities | $ 0 | |||
Net unrealized gains on derivatives | 0 | |||
Investment in foreign subsidiaries | 0 | |||
Accrued commission and general expenses | 0 | |||
Cumulative effect of changes in accounting | 0 | |||
Accumulated other comprehensive income (loss) / Net unrealized investment gains (losses) | Tax Cuts And Jobs Act of 2017 | ||||
Deferred taxes: | ||||
Net unrealized gains on investment securities | 192 | |||
Net unrealized gains on derivatives | 0 | |||
Investment in foreign subsidiaries | (3) | |||
Accrued commission and general expenses | 0 | |||
Cumulative effect of changes in accounting | 189 | |||
Accumulated other comprehensive income (loss) / Derivatives qualifying as hedges | Tax Cuts And Jobs Act of 2017 | ||||
Deferred taxes: | ||||
Net unrealized gains on investment securities | 0 | |||
Net unrealized gains on derivatives | 12 | |||
Investment in foreign subsidiaries | 0 | |||
Accrued commission and general expenses | 0 | |||
Cumulative effect of changes in accounting | 12 | |||
Accumulated other comprehensive income (loss) / Foreign currency translation and other adjustments | Tax Cuts And Jobs Act of 2017 | ||||
Deferred taxes: | ||||
Net unrealized gains on investment securities | 0 | |||
Net unrealized gains on derivatives | 0 | |||
Investment in foreign subsidiaries | (46) | |||
Accrued commission and general expenses | (1) | |||
Cumulative effect of changes in accounting | (47) | |||
Retained earnings | Tax Cuts And Jobs Act of 2017 | ||||
Deferred taxes: | ||||
Net unrealized gains on investment securities | (192) | |||
Net unrealized gains on derivatives | (12) | |||
Investment in foreign subsidiaries | 49 | |||
Accrued commission and general expenses | 1 | |||
Cumulative effect of changes in accounting | $ (154) |
Earning (Loss) Per Share (Detai
Earning (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||
Weighted-average common shares used in basic earnings (loss) per share calculations | 500.8 | 500.7 | 500.6 | 499.6 | 499.2 | 499.1 | 499 | 498.6 | 500.4 | 499 | 498.3 | |||||||||||
Stock options, restricted stock units and stock appreciation rights | 3.8 | 2.4 | ||||||||||||||||||||
Weighted-average common shares used in diluted earnings (loss) per share calculations | 500.8 | [1] | 503.3 | [1] | 502.6 | [1] | 502.7 | [1] | 502.1 | 501.6 | 501.2 | 501 | 504.2 | [2] | 501.4 | [2] | 498.3 | [2] | ||||
Income (loss) from continuing operations: | ||||||||||||||||||||||
Income (loss) from continuing operations | $ (327) | [3] | $ 210 | [3] | $ 249 | [3] | $ 165 | [3] | $ 265 | [4] | $ 184 | [4] | $ 271 | [4] | $ 216 | [4] | $ 297 | $ 936 | $ (38) | |||
Less: income from continuing operations attributable to noncontrolling interests | 178 | 110 | 210 | |||||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | $ 119 | $ 826 | $ (248) | |||||||||||||||||||
Basic per share | $ (0.66) | $ 0.29 | $ 0.38 | $ 0.22 | $ 0.71 | $ 0.23 | $ 0.40 | $ 0.31 | $ 0.24 | $ 1.66 | $ (0.50) | |||||||||||
Diluted per share | $ (0.66) | $ 0.29 | $ 0.38 | $ 0.22 | $ 0.70 | $ 0.23 | $ 0.40 | $ 0.31 | $ 0.24 | $ 1.65 | $ (0.50) | |||||||||||
Loss from discontinued operations: | ||||||||||||||||||||||
Loss from discontinued operations, net of taxes | $ 0 | $ 0 | $ 0 | $ 0 | $ (9) | $ 0 | $ (9) | $ (29) | ||||||||||||||
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) | ||||||||||||||||||||
Basic per share | $ (0.02) | $ (0.06) | ||||||||||||||||||||
Diluted per share | $ (0.02) | $ (0.06) | ||||||||||||||||||||
Net income (loss): | ||||||||||||||||||||||
Income (loss) from continuing operations | (327) | [3] | 210 | [3] | 249 | [3] | 165 | [3] | $ 265 | [4] | 184 | [4] | $ 271 | [4] | $ 216 | [4] | 297 | $ 936 | $ (38) | |||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | (9) | 0 | (9) | (29) | ||||||||||||||
Net income (loss) | (327) | [3] | 210 | [3] | 249 | [3] | 165 | [3] | 265 | [4] | 175 | [4] | 271 | [4] | 216 | [4] | 297 | 927 | (67) | |||
Less: net income attributable to noncontrolling interests | 2 | [5] | 64 | [5] | 59 | [5] | 53 | [5] | (88) | [6] | 68 | [6] | 69 | [6] | 61 | [6] | 178 | 110 | 210 | |||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (329) | [3] | $ 146 | [3] | $ 190 | [3] | $ 112 | [3] | $ 353 | [4] | $ 107 | [4] | $ 202 | [4] | $ 155 | [4] | $ 119 | $ 817 | $ (277) | |||
Basic per share | $ (0.66) | $ 0.29 | $ 0.38 | $ 0.22 | $ 0.71 | $ 0.21 | $ 0.40 | $ 0.31 | $ 0.24 | $ 1.64 | $ (0.56) | |||||||||||
Diluted per share | $ (0.66) | $ 0.29 | $ 0.38 | $ 0.22 | $ 0.70 | $ 0.21 | $ 0.40 | $ 0.31 | $ 0.24 | $ 1.63 | $ (0.56) | |||||||||||
[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 December 31, 2018, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended December 31, 2018, as the inclusion of shares for stock options, RSUs and SARs of 7.6 million 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 December 31, 2018, dilutive potential weighted-average common shares outstanding would have been 508.4 million. | |||||||||||||||||||||
[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 year ended December 31, 2016, 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 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 year ended December 31, 2016, dilutive potential weighted-average common shares outstanding would have been 500.3 million. | |||||||||||||||||||||
[3] | In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. | |||||||||||||||||||||
[4] | 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. | |||||||||||||||||||||
[5] | Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above, of which the amount attributable to noncontrolling interests was $45 million, net of taxes. | |||||||||||||||||||||
[6] | 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 $151 million. |
Earning (Loss) Per Share (Paren
Earning (Loss) Per Share (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2016 | |
Earnings Per Share Disclosure [Line Items] | ||
Weighted-average diluted common shares outstanding, antidilutive securities (stock options, RSUs and SARs) | 7.6 | 2 |
Weighted-average number of diluted shares if not in a loss position | 508.4 | 500.3 |
Net Investment Income (Detail)
Net Investment Income (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 3,356 | $ 3,288 | $ 3,243 | |
Expenses and fees | (94) | (88) | (84) | |
Net investment income | 3,262 | 3,200 | 3,159 | |
Fixed maturity securities - taxable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 2,577 | 2,578 | 2,565 | |
Fixed maturity securities - non-taxable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 11 | 12 | 12 | |
Equity Securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 40 | 36 | 28 | |
Commercial mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 320 | 306 | 318 | |
Restricted commercial mortgage loans related to securitization entities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | [1] | 7 | 9 | 10 |
Policy Loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 169 | 153 | 146 | |
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | [2] | 181 | 157 | 141 |
Other invested assets | Other trading account assets [member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 2 | 11 | ||
Restricted other invested assets related to securitization entities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | [1] | 0 | 1 | 3 |
Cash, cash equivalents, restricted cash and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 51 | $ 36 | $ 20 | |
[1] | See note 17 for additional information related to consolidated securitization entities. | |||
[2] | Included in other invested assets was $-, $2 million and $11 million of net investment income related to trading securities for the years ended December 31, 2018, 2017 and 2016, respectively. |
Net Investment Gains (Losses) (
Net Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Investments [Abstract] | ||||||
Realized gains | $ 169 | $ 229 | $ 249 | |||
Realized losses | (144) | (66) | (121) | |||
Net realized gains (losses) on available-for-sale securities | 25 | 163 | 128 | |||
Total other-than-temporary impairments | 0 | (6) | (40) | |||
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 0 | 0 | 0 | |||
Net other-than-temporary impairments | 0 | (6) | (40) | |||
Net realized gains (losses) on equity securities sold | 11 | 0 | 0 | |||
Net unrealized gains (losses) on equity securities still held | (98) | 0 | 0 | |||
Trading securities | 0 | 1 | 10 | |||
Limited partnerships | 11 | 0 | 6 | |||
Commercial mortgage loans | 0 | 3 | 1 | |||
Net gains (losses) related to securitization entities | 0 | 7 | [1] | (50) | [1] | |
Derivative instruments | [2] | (95) | 97 | 20 | ||
Contingent consideration adjustment | 0 | 0 | (2) | |||
Other | 0 | 0 | (1) | |||
Net investment gains (losses) | $ (146) | $ 265 | $ 72 | |||
[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, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | |
Schedule of Investments [Line Items] | |||
Aggregate fair value of securities sold | $ 3,367 | $ 2,023 | $ 1,881 |
Aggregate fair value of securities sold, percentage of book value | 96.00% | 97.00% | 95.00% |
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 | $ 0 | |
Commercial mortgage loans modified or extended, number of loans | Loan | 2 | 10 | |
Commercial mortgage loans modified or extended, carrying value | $ 12 | $ 27 | |
Commercial mortgage loans, recorded investment | 6,700 | 6,353 | |
Investments in partnerships or similar entities generally considered VIEs | 394 | 222 | |
Floating rate commercial mortgage loans | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 0 | 0 | |
Limited Partnership Interests | |||
Schedule of Investments [Line Items] | |||
Minimum threshold ownership percentage of limited partnership interest, equity method | 3.00% | ||
Finance and insurance | Fixed maturity securities | |||
Schedule of Investments [Line Items] | |||
Percent of investment portfolio, greater than 10% | 24.00% | ||
Utilities | Fixed maturity securities | |||
Schedule of Investments [Line Items] | |||
Percent of investment portfolio, greater than 10% | 14.00% | ||
Consumer-non-cyclical | Fixed maturity securities | |||
Schedule of Investments [Line Items] | |||
Percent of investment portfolio, greater than 10% | 14.00% | ||
Insurance [Member] | |||
Schedule of Investments [Line Items] | |||
Securities on deposit with various state government insurance departments | $ 43 | 43 | |
Office | |||
Schedule of Investments [Line Items] | |||
Individually impaired commercial mortgage loans | 3 | 6 | |
Impaired loans, unpaid principal balance | $ 3 | $ 6 | |
Impaired loans, number of loans | Loan | 1 | 1 | |
Commercial mortgage loans, recorded investment | $ 1,548 | $ 1,510 | |
Industrial | |||
Schedule of Investments [Line Items] | |||
Individually impaired commercial mortgage loans | $ 12 | ||
Impaired loans, unpaid principal balance | 15 | ||
Individually impaired loans, charge-offs | $ 3 | ||
Impaired loans, number of loans | Loan | 1 | ||
Commercial mortgage loans, recorded investment | $ 1,659 | $ 1,628 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Cumulative credit losses, beginning balance | $ 32 | $ 42 | $ 64 |
Other-than-temporary impairments not previously recognized | 0 | 0 | 1 |
Securities sold, paid down or disposed | (8) | (10) | (23) |
Cumulative credit losses, ending balance | $ 24 | $ 32 | $ 42 |
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 | 12 Months Ended | ||||
Dec. 31, 2018 | 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] | |||||
Adjustments to DAC, PVFP, sales inducements and benefit reserves | $ (952) | $ (3,451) | $ (1,611) | ||
Income taxes, net | (190) | (583) | (711) | ||
Net unrealized investment gains (losses) including noncontrolling interests | 633 | 1,160 | 1,346 | ||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests | 38 | 75 | 84 | ||
Net unrealized investment gains (losses) | 595 | 1,085 | 1,262 | $ 1,254 | |
Net Unrealized Gains (Losses) On Investment Securities | |||||
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Fixed maturity securities | 1,775 | 5,125 | 3,656 | ||
Equity securities | 0 | 69 | 12 | ||
Subtotal | [1] | $ 1,775 | $ 5,194 | $ 3,668 | |
[1] | Excludes foreign exchange. |
Change in Net Unrealized Gains
Change in Net Unrealized Gains (Losses) on Available-for-Sale Securities Reported in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Investments [Abstract] | ||||
Net unrealized investment gains (losses), beginning of period | $ 1,085 | $ 1,262 | $ 1,254 | |
Cumulative effect of changes in accounting | ||||
Stranded tax effects | 189 | 0 | 0 | |
Recognition and measurement of financial assets and liabilities, net of taxes of $18, $- and $- | (25) | 0 | 0 | |
Total cumulative effect of changes in accounting | 164 | 0 | 0 | |
Unrealized gains (losses) on investment securities | (3,327) | 1,683 | 626 | |
Adjustment to DAC | [1] | 1,182 | (1,000) | (499) |
Adjustment to PVFP | 69 | (33) | (5) | |
Adjustment to sales inducements | 34 | (4) | (16) | |
Adjustment to benefit reserves | 1,208 | (803) | (21) | |
Provision for income taxes | 181 | 73 | (31) | |
Change in unrealized gains (losses) on investment securities | (653) | (84) | 54 | |
Reclassification adjustments to net investment (gains) losses, net of taxes of $5, $55 and $31 | (18) | (102) | (57) | |
Change in net unrealized investment gains (losses) | (671) | (186) | (3) | |
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests | (17) | (9) | (11) | |
Net unrealized investment gains (losses), end of period | $ 595 | $ 1,085 | $ 1,262 | |
[1] | See note 6 for additional information. |
Change in Net Unrealized Gain_2
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | |||
Recognition and measurement of financial assets and liabilities,tax amount | $ 18 | $ 0 | $ 0 |
Reclassification adjustments to net investment (gains) losses, taxes | $ 5 | $ 55 | $ 31 |
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, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Amortized cost or cost, total | $ 57,981 | $ 58,248 |
Fair value, total | 59,661 | 63,345 |
Amortized cost or cost, fixed maturity securities | 57,981 | 57,492 |
Fair value, fixed maturity securities | 59,661 | 62,525 |
Amortized cost or cost, equity securities | 756 | |
Fair value, equity securities | 655 | 820 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,175 | 4,681 |
Fair value, fixed maturity securities | 4,631 | 5,548 |
Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,406 | 2,678 |
Fair value, fixed maturity securities | 2,552 | 2,926 |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,345 | 2,147 |
Fair value, fixed maturity securities | 2,393 | 2,233 |
Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 27,998 | 25,934 |
Fair value, fixed maturity securities | 28,762 | 28,636 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,439 | 4,396 |
Fair value, fixed maturity securities | 4,675 | 4,998 |
Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,382 | 2,239 |
Fair value, fixed maturity securities | 2,419 | 2,458 |
Fixed maturity securities | U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 6,705 | 5,984 |
Fair value, fixed maturity securities | 6,822 | 6,528 |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,891 | 4,314 |
Fair value, fixed maturity securities | 5,048 | 4,831 |
Fixed maturity securities | U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,823 | 2,665 |
Fair value, fixed maturity securities | 2,855 | 2,845 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,230 | 1,241 |
Fair value, fixed maturity securities | 1,238 | 1,346 |
Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,277 | 2,087 |
Fair value, fixed maturity securities | 2,391 | 2,355 |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,592 | 1,493 |
Fair value, fixed maturity securities | 1,597 | 1,605 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,283 | 1,160 |
Fair value, fixed maturity securities | 1,320 | 1,291 |
Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 376 | 355 |
Fair value, fixed maturity securities | 397 | 379 |
Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 11,671 | 11,778 |
Fair value, fixed maturity securities | 11,837 | 12,611 |
Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,056 | 979 |
Fair value, fixed maturity securities | 1,041 | 1,017 |
Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,320 | 1,337 |
Fair value, fixed maturity securities | 1,369 | 1,490 |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,391 | 2,567 |
Fair value, fixed maturity securities | 2,423 | 2,735 |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 756 | 686 |
Fair value, fixed maturity securities | 739 | 712 |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,168 | 913 |
Fair value, fixed maturity securities | 1,165 | 982 |
Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 926 | 958 |
Fair value, fixed maturity securities | 945 | 1,044 |
Fixed maturity securities | Non-U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 615 | 614 |
Fair value, fixed maturity securities | 615 | 645 |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 532 | 532 |
Fair value, fixed maturity securities | 520 | 540 |
Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 689 | 656 |
Fair value, fixed maturity securities | 720 | 721 |
Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,218 | 2,536 |
Fair value, fixed maturity securities | 2,300 | 2,725 |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,888 | 3,831 |
Fair value, fixed maturity securities | 3,044 | 4,057 |
Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,054 | 3,387 |
Fair value, fixed maturity securities | 3,016 | 3,446 |
Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,444 | 3,056 |
Fair value, fixed maturity securities | 3,426 | 3,068 |
Not other-than-temporary impairments | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains | 2,762 | 5,288 |
Gross unrealized losses | (1,096) | (208) |
Gross unrealized gains, fixed maturity securities | 5,216 | |
Gross unrealized losses, fixed maturity securities | (200) | |
Gross unrealized gains, equity securities | 72 | |
Gross unrealized losses, equity securities | (8) | |
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 | 473 | 870 |
Gross unrealized losses, fixed maturity securities | (17) | (3) |
Not other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 168 | 270 |
Gross unrealized losses, fixed maturity securities | (22) | (22) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 72 | 106 |
Gross unrealized losses, fixed maturity securities | (24) | (20) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 1,446 | 2,770 |
Gross unrealized losses, fixed maturity securities | (682) | (68) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 331 | 611 |
Gross unrealized losses, fixed maturity securities | (95) | (9) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 101 | 227 |
Gross unrealized losses, fixed maturity securities | (64) | (8) |
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 | 249 | 556 |
Gross unrealized losses, fixed maturity securities | (132) | (12) |
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 | 294 | 530 |
Gross unrealized losses, fixed maturity securities | (137) | (13) |
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 | 110 | 192 |
Gross unrealized losses, fixed maturity securities | (78) | (12) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 41 | 106 |
Gross unrealized losses, fixed maturity securities | (33) | (1) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 165 | 273 |
Gross unrealized losses, fixed maturity securities | (51) | (5) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 53 | 116 |
Gross unrealized losses, fixed maturity securities | (48) | (4) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 78 | 134 |
Gross unrealized losses, fixed maturity securities | (41) | (3) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 24 | 25 |
Gross unrealized losses, fixed maturity securities | (3) | (1) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 390 | 866 |
Gross unrealized losses, fixed maturity securities | (224) | (33) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 17 | 42 |
Gross unrealized losses, fixed maturity securities | (32) | (4) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 72 | 158 |
Gross unrealized losses, fixed maturity securities | (23) | (5) |
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 | 72 | 174 |
Gross unrealized losses, fixed maturity securities | (40) | (6) |
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 | 8 | 30 |
Gross unrealized losses, fixed maturity securities | (25) | (4) |
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 | 23 | 71 |
Gross unrealized losses, fixed maturity securities | (26) | (2) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 36 | 88 |
Gross unrealized losses, fixed maturity securities | (17) | (2) |
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 | 10 | 33 |
Gross unrealized losses, fixed maturity securities | (10) | (2) |
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 | 1 | 9 |
Gross unrealized losses, fixed maturity securities | (13) | (1) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 46 | 68 |
Gross unrealized losses, fixed maturity securities | (15) | (3) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 105 | 193 |
Gross unrealized losses, fixed maturity securities | (23) | (4) |
Not other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 160 | 223 |
Gross unrealized losses, fixed maturity securities | (17) | (11) |
Not other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 43 | 94 |
Gross unrealized losses, fixed maturity securities | (81) | (37) |
Not other-than-temporary impairments | Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 10 | 17 |
Gross unrealized losses, fixed maturity securities | (29) | (6) |
Other-than-temporary impairments | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains | 14 | 17 |
Gross unrealized gains, fixed maturity securities | 17 | |
Other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 13 | 14 |
Other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 2 | |
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 and Fai
Gross Unrealized Losses and Fair Value of Investment Securities (Detail) $ in Millions | Dec. 31, 2018USD ($)Securities | Dec. 31, 2017USD ($)Securities |
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 18,042 | $ 6,090 |
Less than 12 months, Gross unrealized losses | $ (695) | $ (65) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2,585 | 1,039 |
12 months or more, Fair value | $ 6,678 | $ 3,661 |
12 months or more, Gross unrealized losses | $ (401) | $ (143) |
12 months or more, Number of securities in a continuous loss position | Securities | 1,055 | 587 |
Fair value | $ 24,720 | $ 9,751 |
Gross unrealized losses | $ (1,096) | $ (208) |
Number of securities in a continuous loss position | Securities | 3,640 | 1,626 |
Investment grade | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 16,726 | $ 5,867 |
Less than 12 months, Gross unrealized losses | $ (615) | $ (55) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2,393 | 898 |
12 months or more, Fair value | $ 6,508 | $ 3,488 |
12 months or more, Gross unrealized losses | $ (379) | $ (135) |
12 months or more, Number of securities in a continuous loss position | Securities | 1,024 | 528 |
Fair value | $ 23,234 | $ 9,355 |
Gross unrealized losses | $ (994) | $ (190) |
Number of securities in a continuous loss position | Securities | 3,417 | 1,426 |
Below investment grade | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 1,316 | $ 223 |
Less than 12 months, Gross unrealized losses | $ (80) | $ (10) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 192 | 141 |
12 months or more, Fair value | $ 170 | $ 173 |
12 months or more, Gross unrealized losses | $ (22) | $ (8) |
12 months or more, Number of securities in a continuous loss position | Securities | 31 | 59 |
Fair value | $ 1,486 | $ 396 |
Gross unrealized losses | $ (102) | $ (18) |
Number of securities in a continuous loss position | Securities | 223 | 200 |
Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 18,042 | $ 6,016 |
Less than 12 months, Gross unrealized losses | $ (695) | $ (62) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2,585 | 905 |
12 months or more, Fair value | $ 6,678 | $ 3,561 |
12 months or more, Gross unrealized losses | $ (401) | $ (138) |
12 months or more, Number of securities in a continuous loss position | Securities | 1,055 | 529 |
Fair value | $ 24,720 | $ 9,577 |
Gross unrealized losses | $ (1,096) | $ (200) |
Number of securities in a continuous loss position | Securities | 3,640 | 1,434 |
Fixed maturity securities | Less Than 20 Percent Below Cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 18,008 | $ 6,016 |
Less than 12 months, Gross unrealized losses | $ (685) | $ (62) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2,581 | 905 |
12 months or more, Fair value | $ 6,624 | $ 3,555 |
12 months or more, Gross unrealized losses | $ (383) | $ (136) |
12 months or more, Number of securities in a continuous loss position | Securities | 1,045 | 526 |
Fair value | $ 24,632 | $ 9,571 |
Gross unrealized losses | $ (1,068) | $ (198) |
Number of securities in a continuous loss position | Securities | 3,626 | 1,431 |
Fixed maturity securities | 20 To 50 percent below cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 34 | |
Less than 12 months, Gross unrealized losses | $ (10) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 4 | |
12 months or more, Fair value | $ 54 | $ 6 |
12 months or more, Gross unrealized losses | $ (18) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 10 | 3 |
Fair value | $ 88 | $ 6 |
Gross unrealized losses | $ (28) | $ (2) |
Number of securities in a continuous loss position | Securities | 14 | 3 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 545 | $ 78 |
Less than 12 months, Gross unrealized losses | $ (8) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 17 | 21 |
12 months or more, Fair value | $ 161 | $ 94 |
12 months or more, Gross unrealized losses | $ (9) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 26 | 7 |
Fair value | $ 706 | $ 172 |
Gross unrealized losses | $ (17) | $ (3) |
Number of securities in a continuous loss position | Securities | 43 | 28 |
Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 371 | $ 125 |
Less than 12 months, Gross unrealized losses | $ (10) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 63 | 35 |
12 months or more, Fair value | $ 233 | $ 327 |
12 months or more, Gross unrealized losses | $ (12) | $ (21) |
12 months or more, Number of securities in a continuous loss position | Securities | 57 | 42 |
Fair value | $ 604 | $ 452 |
Gross unrealized losses | $ (22) | $ (22) |
Number of securities in a continuous loss position | Securities | 120 | 77 |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 261 | $ 583 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (7) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 51 | 26 |
12 months or more, Fair value | $ 508 | $ 239 |
12 months or more, Gross unrealized losses | $ (17) | $ (13) |
12 months or more, Number of securities in a continuous loss position | Securities | 35 | 20 |
Fair value | $ 769 | $ 822 |
Gross unrealized losses | $ (24) | $ (20) |
Number of securities in a continuous loss position | Securities | 86 | 46 |
Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 9,975 | $ 1,871 |
Less than 12 months, Gross unrealized losses | $ (472) | $ (26) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,342 | 296 |
12 months or more, Fair value | $ 2,449 | $ 1,347 |
12 months or more, Gross unrealized losses | $ (210) | $ (42) |
12 months or more, Number of securities in a continuous loss position | Securities | 365 | 190 |
Fair value | $ 12,424 | $ 3,218 |
Gross unrealized losses | $ (682) | $ (68) |
Number of securities in a continuous loss position | Securities | 1,707 | 486 |
Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 4,172 | $ 1,323 |
Less than 12 months, Gross unrealized losses | $ (150) | $ (12) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 614 | 217 |
12 months or more, Fair value | $ 1,274 | $ 548 |
12 months or more, Gross unrealized losses | $ (74) | $ (21) |
12 months or more, Number of securities in a continuous loss position | Securities | 209 | 77 |
Fair value | $ 5,446 | $ 1,871 |
Gross unrealized losses | $ (224) | $ (33) |
Number of securities in a continuous loss position | Securities | 823 | 294 |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 363 | $ 707 |
Less than 12 months, Gross unrealized losses | $ (6) | $ (7) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 57 | 81 |
12 months or more, Fair value | $ 579 | $ 130 |
12 months or more, Gross unrealized losses | $ (11) | $ (4) |
12 months or more, Number of securities in a continuous loss position | Securities | 96 | 46 |
Fair value | $ 942 | $ 837 |
Gross unrealized losses | $ (17) | $ (11) |
Number of securities in a continuous loss position | Securities | 153 | 127 |
Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 758 | $ 476 |
Less than 12 months, Gross unrealized losses | $ (19) | $ (4) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 115 | 69 |
12 months or more, Fair value | $ 870 | $ 646 |
12 months or more, Gross unrealized losses | $ (62) | $ (33) |
12 months or more, Number of securities in a continuous loss position | Securities | 130 | 90 |
Fair value | $ 1,628 | $ 1,122 |
Gross unrealized losses | $ (81) | $ (37) |
Number of securities in a continuous loss position | Securities | 245 | 159 |
Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 1,597 | $ 853 |
Less than 12 months, Gross unrealized losses | $ (23) | $ (4) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 326 | 160 |
12 months or more, Fair value | $ 604 | $ 230 |
12 months or more, Gross unrealized losses | $ (6) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 137 | 57 |
Fair value | $ 2,201 | $ 1,083 |
Gross unrealized losses | $ (29) | $ (6) |
Number of securities in a continuous loss position | Securities | 463 | 217 |
Equity Securities | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 74 | |
Less than 12 months, Gross unrealized losses | $ (3) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 134 | |
12 months or more, Fair value | $ 100 | |
12 months or more, Gross unrealized losses | $ (5) | |
12 months or more, Number of securities in a continuous loss position | Securities | 58 | |
Fair value | $ 174 | |
Gross unrealized losses | $ (8) | |
Number of securities in a continuous loss position | Securities | 192 | |
Equity Securities | Less Than 20 Percent Below Cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 74 | |
Less than 12 months, Gross unrealized losses | $ (3) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 134 | |
12 months or more, Fair value | $ 100 | |
12 months or more, Gross unrealized losses | $ (5) | |
12 months or more, Number of securities in a continuous loss position | Securities | 58 | |
Fair value | $ 174 | |
Gross unrealized losses | $ (8) | |
Number of securities in a continuous loss position | Securities | 192 |
Gross Unrealized Losses and F_2
Gross Unrealized Losses and Fair Value of Corporate Securities Based on Industries (Detail) $ in Millions | Dec. 31, 2018USD ($)Securities | Dec. 31, 2017USD ($)Securities |
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 18,042 | $ 6,090 |
Less than 12 months, Gross unrealized losses | $ (695) | $ (65) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2,585 | 1,039 |
12 months or more, Fair value | $ 6,678 | $ 3,661 |
12 months or more, Gross unrealized losses | $ (401) | $ (143) |
12 months or more, Number of securities in a continuous loss position | Securities | 1,055 | 587 |
Fair value | $ 24,720 | $ 9,751 |
Gross unrealized losses | $ (1,096) | $ (208) |
Number of securities in a continuous loss position | Securities | 3,640 | 1,626 |
Fixed maturity securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 18,042 | $ 6,016 |
Less than 12 months, Gross unrealized losses | $ (695) | $ (62) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2,585 | 905 |
12 months or more, Fair value | $ 6,678 | $ 3,561 |
12 months or more, Gross unrealized losses | $ (401) | $ (138) |
12 months or more, Number of securities in a continuous loss position | Securities | 1,055 | 529 |
Fair value | $ 24,720 | $ 9,577 |
Gross unrealized losses | $ (1,096) | $ (200) |
Number of securities in a continuous loss position | Securities | 3,640 | 1,434 |
Fixed maturity securities | U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 9,975 | $ 1,871 |
Less than 12 months, Gross unrealized losses | $ (472) | $ (26) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,342 | 296 |
12 months or more, Fair value | $ 2,449 | $ 1,347 |
12 months or more, Gross unrealized losses | $ (210) | $ (42) |
12 months or more, Number of securities in a continuous loss position | Securities | 365 | 190 |
Fair value | $ 12,424 | $ 3,218 |
Gross unrealized losses | $ (682) | $ (68) |
Number of securities in a continuous loss position | Securities | 1,707 | 486 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 1,246 | $ 181 |
Less than 12 months, Gross unrealized losses | $ (61) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 173 | 33 |
12 months or more, Fair value | $ 343 | $ 219 |
12 months or more, Gross unrealized losses | $ (34) | $ (7) |
12 months or more, Number of securities in a continuous loss position | Securities | 60 | 36 |
Fair value | $ 1,589 | $ 400 |
Gross unrealized losses | $ (95) | $ (9) |
Number of securities in a continuous loss position | Securities | 233 | 69 |
Fixed maturity securities | U.S. corporate | Energy | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 944 | $ 106 |
Less than 12 months, Gross unrealized losses | $ (47) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 135 | 22 |
12 months or more, Fair value | $ 152 | $ 140 |
12 months or more, Gross unrealized losses | $ (17) | $ (7) |
12 months or more, Number of securities in a continuous loss position | Securities | 23 | 15 |
Fair value | $ 1,096 | $ 246 |
Gross unrealized losses | $ (64) | $ (8) |
Number of securities in a continuous loss position | Securities | 158 | 37 |
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 | $ 2,393 | $ 626 |
Less than 12 months, Gross unrealized losses | $ (92) | $ (6) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 326 | 91 |
12 months or more, Fair value | $ 688 | $ 222 |
12 months or more, Gross unrealized losses | $ (40) | $ (6) |
12 months or more, Number of securities in a continuous loss position | Securities | 95 | 30 |
Fair value | $ 3,081 | $ 848 |
Gross unrealized losses | $ (132) | $ (12) |
Number of securities in a continuous loss position | Securities | 421 | 121 |
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 | $ 1,826 | $ 299 |
Less than 12 months, Gross unrealized losses | $ (101) | $ (7) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 203 | 46 |
12 months or more, Fair value | $ 389 | $ 221 |
12 months or more, Gross unrealized losses | $ (36) | $ (6) |
12 months or more, Number of securities in a continuous loss position | Securities | 55 | 31 |
Fair value | $ 2,215 | $ 520 |
Gross unrealized losses | $ (137) | $ (13) |
Number of securities in a continuous loss position | Securities | 258 | 77 |
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 | $ 1,135 | $ 217 |
Less than 12 months, Gross unrealized losses | $ (51) | $ (4) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 152 | 32 |
12 months or more, Fair value | $ 263 | $ 210 |
12 months or more, Gross unrealized losses | $ (27) | $ (8) |
12 months or more, Number of securities in a continuous loss position | Securities | 34 | 29 |
Fair value | $ 1,398 | $ 427 |
Gross unrealized losses | $ (78) | $ (12) |
Number of securities in a continuous loss position | Securities | 186 | 61 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 506 | $ 0 |
Less than 12 months, Gross unrealized losses | $ (27) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 63 | 0 |
12 months or more, Fair value | $ 74 | $ 62 |
12 months or more, Gross unrealized losses | $ (6) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 13 | 9 |
Fair value | $ 580 | $ 62 |
Gross unrealized losses | $ (33) | $ (1) |
Number of securities in a continuous loss position | Securities | 76 | 9 |
Fixed maturity securities | U.S. corporate | Capital goods | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 704 | $ 176 |
Less than 12 months, Gross unrealized losses | $ (31) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 103 | 25 |
12 months or more, Fair value | $ 184 | $ 81 |
12 months or more, Gross unrealized losses | $ (20) | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 27 | 14 |
Fair value | $ 888 | $ 257 |
Gross unrealized losses | $ (51) | $ (5) |
Number of securities in a continuous loss position | Securities | 130 | 39 |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 738 | $ 137 |
Less than 12 months, Gross unrealized losses | $ (35) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 123 | 24 |
12 months or more, Fair value | $ 162 | $ 95 |
12 months or more, Gross unrealized losses | $ (13) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 26 | 13 |
Fair value | $ 900 | $ 232 |
Gross unrealized losses | $ (48) | $ (4) |
Number of securities in a continuous loss position | Securities | 149 | 37 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 435 | $ 117 |
Less than 12 months, Gross unrealized losses | $ (25) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 60 | 21 |
12 months or more, Fair value | $ 179 | $ 97 |
12 months or more, Gross unrealized losses | $ (16) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 31 | 13 |
Fair value | $ 614 | $ 214 |
Gross unrealized losses | $ (41) | $ (3) |
Number of securities in a continuous loss position | Securities | 91 | 34 |
Fixed maturity securities | U.S. corporate | Other | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 48 | $ 12 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 4 | 2 |
12 months or more, Fair value | $ 15 | $ 0 |
12 months or more, Gross unrealized losses | $ (1) | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | 0 |
Fair value | $ 63 | $ 12 |
Gross unrealized losses | $ (3) | $ (1) |
Number of securities in a continuous loss position | Securities | 5 | 2 |
Fixed maturity securities | Non-U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 4,172 | $ 1,323 |
Less than 12 months, Gross unrealized losses | $ (150) | $ (12) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 614 | 217 |
12 months or more, Fair value | $ 1,274 | $ 548 |
12 months or more, Gross unrealized losses | $ (74) | $ (21) |
12 months or more, Number of securities in a continuous loss position | Securities | 209 | 77 |
Fair value | $ 5,446 | $ 1,871 |
Gross unrealized losses | $ (224) | $ (33) |
Number of securities in a continuous loss position | Securities | 823 | 294 |
Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 404 | $ 113 |
Less than 12 months, Gross unrealized losses | $ (19) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 58 | 23 |
12 months or more, Fair value | $ 173 | $ 72 |
12 months or more, Gross unrealized losses | $ (13) | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 24 | 8 |
Fair value | $ 577 | $ 185 |
Gross unrealized losses | $ (32) | $ (4) |
Number of securities in a continuous loss position | Securities | 82 | 31 |
Fixed maturity securities | Non-U.S. corporate | Energy | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 439 | $ 118 |
Less than 12 months, Gross unrealized losses | $ (15) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 64 | 19 |
12 months or more, Fair value | $ 136 | $ 74 |
12 months or more, Gross unrealized losses | $ (8) | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 20 | 12 |
Fair value | $ 575 | $ 192 |
Gross unrealized losses | $ (23) | $ (5) |
Number of securities in a continuous loss position | Securities | 84 | 31 |
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 | $ 899 | $ 347 |
Less than 12 months, Gross unrealized losses | $ (25) | $ (3) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 151 | 56 |
12 months or more, Fair value | $ 294 | $ 117 |
12 months or more, Gross unrealized losses | $ (15) | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 52 | 19 |
Fair value | $ 1,193 | $ 464 |
Gross unrealized losses | $ (40) | $ (6) |
Number of securities in a continuous loss position | Securities | 203 | 75 |
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 | $ 377 | $ 69 |
Less than 12 months, Gross unrealized losses | $ (16) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 51 | 11 |
12 months or more, Fair value | $ 102 | $ 60 |
12 months or more, Gross unrealized losses | $ (9) | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 14 | 6 |
Fair value | $ 479 | $ 129 |
Gross unrealized losses | $ (25) | $ (4) |
Number of securities in a continuous loss position | Securities | 65 | 17 |
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 | $ 611 | $ 107 |
Less than 12 months, Gross unrealized losses | $ (24) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 75 | 18 |
12 months or more, Fair value | $ 50 | $ 30 |
12 months or more, Gross unrealized losses | $ (2) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 12 | 6 |
Fair value | $ 661 | $ 137 |
Gross unrealized losses | $ (26) | $ (2) |
Number of securities in a continuous loss position | Securities | 87 | 24 |
Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 275 | $ 52 |
Less than 12 months, Gross unrealized losses | $ (11) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 48 | 9 |
12 months or more, Fair value | $ 72 | $ 38 |
12 months or more, Gross unrealized losses | $ (6) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 8 | 5 |
Fair value | $ 347 | $ 90 |
Gross unrealized losses | $ (17) | $ (2) |
Number of securities in a continuous loss position | Securities | 56 | 14 |
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 | $ 226 | $ 54 |
Less than 12 months, Gross unrealized losses | $ (7) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 27 | 11 |
12 months or more, Fair value | $ 69 | $ 46 |
12 months or more, Gross unrealized losses | $ (3) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 13 | 3 |
Fair value | $ 295 | $ 100 |
Gross unrealized losses | $ (10) | $ (2) |
Number of securities in a continuous loss position | Securities | 40 | 14 |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 268 | $ 131 |
Less than 12 months, Gross unrealized losses | $ (11) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 42 | 21 |
12 months or more, Fair value | $ 117 | $ 0 |
12 months or more, Gross unrealized losses | $ (2) | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 19 | 0 |
Fair value | $ 385 | $ 131 |
Gross unrealized losses | $ (13) | $ (1) |
Number of securities in a continuous loss position | Securities | 61 | 21 |
Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 232 | $ 47 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 27 | 7 |
12 months or more, Fair value | $ 67 | $ 64 |
12 months or more, Gross unrealized losses | $ (8) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 11 | 8 |
Fair value | $ 299 | $ 111 |
Gross unrealized losses | $ (15) | $ (3) |
Number of securities in a continuous loss position | Securities | 38 | 15 |
Fixed maturity securities | Non-U.S. corporate | Other | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 441 | $ 285 |
Less than 12 months, Gross unrealized losses | $ (15) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 71 | 42 |
12 months or more, Fair value | $ 194 | $ 47 |
12 months or more, Gross unrealized losses | $ (8) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 36 | 10 |
Fair value | $ 635 | $ 332 |
Gross unrealized losses | $ (23) | $ (4) |
Number of securities in a continuous loss position | Securities | 107 | 52 |
Fixed maturity securities | Corporate Debt Securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 14,147 | $ 3,194 |
Less than 12 months, Gross unrealized losses | $ (622) | $ (38) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,956 | 513 |
12 months or more, Fair value | $ 3,723 | $ 1,895 |
12 months or more, Gross unrealized losses | $ (284) | $ (63) |
12 months or more, Number of securities in a continuous loss position | Securities | 574 | 267 |
Fair value | $ 17,870 | $ 5,089 |
Gross unrealized losses | $ (906) | $ (101) |
Number of securities in a continuous loss position | Securities | 2,530 | 780 |
Scheduled Maturity Distribution
Scheduled Maturity Distribution of Fixed Maturity Securities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized cost or cost | ||
Due one year or less | $ 1,863 | |
Due after one year through five years | 10,851 | |
Due after five years through ten years | 12,438 | |
Due after ten years | 23,443 | |
Subtotal | 48,595 | |
Amortized cost or cost, fixed maturity securities | 57,981 | $ 57,492 |
Fair value | ||
Due one year or less | 1,874 | |
Due after one year through five years | 10,952 | |
Due after five years through ten years | 12,463 | |
Due after ten years | 24,886 | |
Subtotal | 50,175 | |
Fair value, fixed maturity securities | 59,661 | $ 62,525 |
Residential mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 2,888 | |
Fair value | ||
Fixed maturity securities | 3,044 | |
Commercial mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,054 | |
Fair value | ||
Fixed maturity securities | 3,016 | |
Other asset-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,444 | |
Fair value | ||
Fixed maturity securities | $ 3,426 |
Distribution Across Property Ty
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,700 | $ 6,353 |
Unamortized balance of loan origination fees and costs | $ (4) | $ (3) |
% of total | 100.00% | 100.00% |
Allowance for losses | $ (9) | $ (9) |
Total | 6,687 | 6,341 |
Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 6,700 | 6,353 |
Unamortized balance of loan origination fees and costs | $ (4) | $ (3) |
% of total | 100.00% | 100.00% |
Allowance for losses | $ (9) | $ (9) |
Total | 6,687 | 6,341 |
South Atlantic | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,709 | $ 1,625 |
% of total | 26.00% | 26.00% |
Pacific | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,684 | $ 1,622 |
% of total | 25.00% | 26.00% |
Middle Atlantic | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 950 | $ 927 |
% of total | 14.00% | 14.00% |
Mountain | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 667 | $ 556 |
% of total | 10.00% | 9.00% |
West North Central | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 470 | $ 446 |
% of total | 7.00% | 7.00% |
East North Central | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 405 | $ 394 |
% of total | 6.00% | 6.00% |
West South Central | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 364 | $ 336 |
% of total | 6.00% | 5.00% |
New England | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 228 | $ 239 |
% of total | 3.00% | 4.00% |
East South Central | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 223 | $ 208 |
% of total | 3.00% | 3.00% |
Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,463 | $ 2,239 |
% of total | 37.00% | 35.00% |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,659 | $ 1,628 |
% of total | 25.00% | 26.00% |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,548 | $ 1,510 |
% of total | 23.00% | 24.00% |
Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 495 | $ 478 |
% of total | 7.00% | 8.00% |
Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 254 | $ 223 |
% of total | 4.00% | 3.00% |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 281 | $ 275 |
% of total | 4.00% | 4.00% |
Aging of Past Due Commercial Mo
Aging of Past Due Commercial Mortgage Loans by Property Type (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,700 | $ 6,353 |
% of total | 100.00% | 100.00% |
Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,463 | $ 2,239 |
% of total | 37.00% | 35.00% |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,659 | $ 1,628 |
% of total | 25.00% | 26.00% |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,548 | $ 1,510 |
% of total | 23.00% | 24.00% |
Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 495 | $ 478 |
% of total | 7.00% | 8.00% |
Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 254 | $ 223 |
% of total | 4.00% | 3.00% |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 281 | $ 275 |
% of total | 4.00% | 4.00% |
31-60 days past due | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 3 | $ 5 |
31-60 days past due | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 3 | 5 |
Greater than 90 days past due | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 3 | 6 |
Greater than 90 days past due | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 3 | 6 |
Total past due | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 6 | 11 |
Total past due | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 3 | 5 |
Total past due | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 3 | 6 |
Current | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,694 | $ 6,342 |
% of total | 100.00% | 100.00% |
Current | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,460 | $ 2,234 |
Current | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,659 | 1,628 |
Current | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,545 | 1,504 |
Current | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 495 | 478 |
Current | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 254 | 223 |
Current | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 281 | $ 275 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | $ 9 | ||
Ending balance | 9 | $ 9 | |
Ending balance | 6,700 | 6,353 | |
Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 9 | 12 | $ 15 |
Charge-offs | 0 | 0 | (6) |
Recoveries | 0 | 0 | 0 |
Provision | 0 | (3) | 3 |
Ending balance | 9 | 9 | 12 |
Ending allowance for individually impaired loans | 0 | 0 | 0 |
Ending allowance for loans not individually impaired that were evaluated collectively for impairment | 9 | 9 | 12 |
Commercial Mortgage Loans Recorded Investment | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Ending balance | 6,700 | 6,353 | 6,125 |
Ending balance of individually impaired loans | 3 | 6 | 12 |
Ending balance of loans not individually impaired that were evaluated collectively for impairment | $ 6,697 | $ 6,347 | $ 6,113 |
Loan-to-Value of Commercial Mor
Loan-to-Value of Commercial Mortgage Loans by Property Type (Detail) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 6,700 | $ 6,353 | |||
% of total | 100.00% | 100.00% | |||
Weighted-average debt service coverage ratio | 2 | 2.09 | |||
Retail | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 2,463 | $ 2,239 | |||
% of total | 37.00% | 35.00% | |||
Industrial | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 1,659 | $ 1,628 | |||
% of total | 25.00% | 26.00% | |||
Office | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 1,548 | $ 1,510 | |||
% of total | 23.00% | 24.00% | |||
Apartments | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 495 | $ 478 | |||
% of total | 7.00% | 8.00% | |||
Mixed Use | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 254 | $ 223 | |||
% of total | 4.00% | 3.00% | |||
Other | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 281 | $ 275 | |||
% of total | 4.00% | 4.00% | |||
0% - 50% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 2,554 | $ 2,618 | |||
% of total | 38.00% | 41.00% | |||
Weighted-average debt service coverage ratio | 2.42 | 2.65 | |||
0% - 50% | Retail | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 866 | $ 919 | |||
0% - 50% | Industrial | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 749 | 731 | |||
0% - 50% | Office | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 585 | 575 | |||
0% - 50% | Apartments | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 206 | 226 | |||
0% - 50% | Mixed Use | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 105 | 99 | |||
0% - 50% | Other | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 43 | 68 | |||
51% - 60% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 1,426 | $ 1,437 | |||
% of total | 21.00% | 23.00% | |||
Weighted-average debt service coverage ratio | 2.04 | 1.85 | |||
51% - 60% | Retail | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 565 | $ 500 | |||
51% - 60% | Industrial | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 279 | 363 | |||
51% - 60% | Office | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 373 | 386 | |||
51% - 60% | Apartments | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 95 | 101 | |||
51% - 60% | Mixed Use | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 36 | 59 | |||
51% - 60% | Other | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 78 | 28 | |||
61% - 75% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 2,682 | $ 2,276 | |||
% of total | 40.00% | 36.00% | |||
Weighted-average debt service coverage ratio | 1.59 | 1.62 | |||
61% - 75% | Retail | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 1,017 | $ 820 | |||
61% - 75% | Industrial | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 615 | 532 | |||
61% - 75% | Office | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 588 | 534 | |||
61% - 75% | Apartments | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 189 | 146 | |||
61% - 75% | Mixed Use | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 113 | 65 | |||
61% - 75% | Other | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 160 | 179 | |||
76% - 100% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 36 | $ 20 | |||
% of total | 1.00% | ||||
Weighted-average debt service coverage ratio | 1.38 | 0.62 | |||
76% - 100% | Retail | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 15 | $ 0 | |||
76% - 100% | Industrial | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 14 | 2 | |||
76% - 100% | Office | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 2 | 13 | |||
76% - 100% | Apartments | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | 5 | 5 | |||
Greater than 100% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 2 | [1] | $ 2 | [2] | |
Weighted-average debt service coverage ratio | 0.88 | [1] | 1.04 | [2] | |
Greater than 100% | Industrial | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 2 | [1] | $ 0 | [2] | |
Greater than 100% | Office | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Commercial mortgage loans, recorded investment | [2] | $ 0 | $ 2 | ||
[1] | Included a loan with a recorded investment of $2 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. | ||||
[2] | Included a loan with a recorded investment of $2 million in good standing, where borrowers continued to make timely payments, with a loan-to-value of 102%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. |
Loan-to-Value of Commercial M_2
Loan-to-Value of Commercial Mortgage Loans by Property Type (Parenthetical) (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 6,700,000,000 | $ 6,353,000,000 | ||
Greater than 100% | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 2,000,000 | [1] | 2,000,000 | [2] |
Greater than 100% | Loans in Good Standing | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2 | $ 2 | ||
Weighted-average loan-to-value | 105.00% | 102.00% | ||
[1] | Included a loan with a recorded investment of $2 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. | |||
[2] | Included a loan with a recorded investment of $2 million in good standing, where borrowers continued to make timely payments, with a loan-to-value of 102%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. |
Debt Service Coverage Ratio for
Debt Service Coverage Ratio for Fixed Rate Commercial Mortgage Loans by Property Type (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,700 | $ 6,353 |
% of total | 100.00% | 100.00% |
Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,700 | $ 6,353 |
% of total | 100.00% | 100.00% |
Weighted-average loan-to-value | 54.00% | 52.00% |
Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,463 | $ 2,239 |
% of total | 37.00% | 35.00% |
Retail | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,463 | $ 2,239 |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,659 | $ 1,628 |
% of total | 25.00% | 26.00% |
Industrial | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,659 | $ 1,628 |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,548 | $ 1,510 |
% of total | 23.00% | 24.00% |
Office | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,548 | $ 1,510 |
Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 495 | $ 478 |
% of total | 7.00% | 8.00% |
Apartments | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 495 | $ 478 |
Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 254 | $ 223 |
% of total | 4.00% | 3.00% |
Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 254 | $ 223 |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 281 | $ 275 |
% of total | 4.00% | 4.00% |
Other | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 281 | $ 275 |
Less than 1.00 | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 142 | $ 120 |
% of total | 2.00% | 2.00% |
Weighted-average loan-to-value | 57.00% | 55.00% |
Less than 1.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 43 | $ 43 |
Less than 1.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 22 | 23 |
Less than 1.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 57 | 51 |
Less than 1.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 4 | 0 |
Less than 1.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 3 | 2 |
Less than 1.00 | Other | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 13 | 1 |
1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 465 | $ 527 |
% of total | 7.00% | 8.00% |
Weighted-average loan-to-value | 61.00% | 60.00% |
1.00 - 1.25 | Retail | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 157 | $ 235 |
1.00 - 1.25 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 75 | 61 |
1.00 - 1.25 | Office | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 56 | 61 |
1.00 - 1.25 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 24 | 17 |
1.00 - 1.25 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 19 | 4 |
1.00 - 1.25 | Other | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 134 | 149 |
1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,042 | $ 749 |
% of total | 16.00% | 12.00% |
Weighted-average loan-to-value | 62.00% | 58.00% |
1.26 - 1.50 | Retail | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 448 | $ 301 |
1.26 - 1.50 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 233 | 174 |
1.26 - 1.50 | Office | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 156 | 157 |
1.26 - 1.50 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 104 | 77 |
1.26 - 1.50 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 51 | 26 |
1.26 - 1.50 | Other | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 50 | 14 |
1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,950 | $ 2,637 |
% of total | 44.00% | 42.00% |
Weighted-average loan-to-value | 59.00% | 58.00% |
1.51 - 2.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,234 | $ 1,020 |
1.51 - 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 653 | 700 |
1.51 - 2.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 765 | 569 |
1.51 - 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 168 | 191 |
1.51 - 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 80 | 86 |
1.51 - 2.00 | Other | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 50 | 71 |
Greater than 2.00 | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,101 | $ 2,320 |
% of total | 31.00% | 36.00% |
Weighted-average loan-to-value | 42.00% | 42.00% |
Greater than 2.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 581 | $ 640 |
Greater than 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 676 | 670 |
Greater than 2.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 514 | 672 |
Greater than 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 195 | 193 |
Greater than 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 101 | 105 |
Greater than 2.00 | Other | Fixed Rate Commercial Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 34 | $ 40 |
Schedule of Positions in Deriva
Schedule of Positions in Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Derivative assets, fair value | $ 198 | $ 290 | |
Derivative liabilities, fair value | 906 | 730 | |
Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 738 | 683 | |
Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 168 | 47 | |
Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 178 | 276 | |
Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 102 | 25 | |
Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 42 | 74 | |
Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 23 | ||
Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 6 | 12 | |
Interest rate swaps in a foreign currency | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 74 | 105 | |
Interest rate caps and floors | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 7 | ||
Equity index options | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 39 | 80 | |
Equity return swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 1 | 2 | |
Other foreign currency contracts | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 42 | 20 | |
Other foreign currency contracts | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 10 | 5 | |
GMWB embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [1] | 337 | 250 |
GMWB embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | [2] | 20 | 14 |
Fixed index annuity embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 389 | 419 | |
Indexed universal life embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 12 | 14 | |
Designated As Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 48 | 75 | |
Derivative liabilities, fair value | 102 | 25 | |
Designated As Hedging Instrument | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 48 | 75 | |
Derivative liabilities, fair value | 102 | 25 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 102 | 25 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 42 | 74 | |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 6 | 1 | |
Derivatives not designated as hedges | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 150 | 215 | |
Derivative liabilities, fair value | 804 | 705 | |
Derivatives not designated as hedges | Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 23 | ||
Derivatives not designated as hedges | Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 11 | ||
Derivatives not designated as hedges | Interest rate swaps in a foreign currency | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 74 | 105 | |
Derivatives not designated as hedges | Interest rate caps and floors | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 7 | ||
Derivatives not designated as hedges | Equity index options | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 39 | 80 | |
Derivatives not designated as hedges | Equity return swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 1 | 2 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 42 | 20 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 10 | 5 | |
Derivatives not designated as hedges | GMWB embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [3] | 337 | 250 |
Derivatives not designated as hedges | GMWB embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | [2] | 20 | 14 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [4] | 389 | 419 |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [5] | $ 12 | $ 14 |
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. | ||
[2] | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. | ||
[3] | Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. | ||
[4] | Represents the embedded derivatives associated with our fixed index annuity liabilities. | ||
[5] | Represents the embedded derivatives associated with our indexed universal life liabilities. |
Activity Associated with Deriva
Activity Associated with Derivative Instruments (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)Policies | |
Derivative [Line Items] | |
Notional amount, beginning balance | $ 23,307 |
Additions | 14,730 |
Maturities/ terminations | (12,577) |
Notional amount, ending balance | 25,460 |
Designated As Hedging Instrument | |
Derivative [Line Items] | |
Notional amount, beginning balance | 11,177 |
Additions | 1,703 |
Maturities/ terminations | (2,876) |
Notional amount, ending balance | 10,004 |
Designated As Hedging Instrument | Cash Flow Hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 11,177 |
Additions | 1,703 |
Maturities/ terminations | (2,876) |
Notional amount, ending balance | 10,004 |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 11,155 |
Additions | 1,645 |
Maturities/ terminations | (2,876) |
Notional amount, ending balance | 9,924 |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 22 |
Additions | 58 |
Notional amount, ending balance | 80 |
Derivatives not designated as hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 12,130 |
Additions | 13,027 |
Maturities/ terminations | (9,701) |
Notional amount, ending balance | 15,456 |
Derivatives not designated as hedges | Interest rate swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 4,679 |
Maturities/ terminations | (5) |
Notional amount, ending balance | 4,674 |
Derivatives not designated as hedges | Foreign currency swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 349 |
Additions | 133 |
Maturities/ terminations | (29) |
Notional amount, ending balance | 453 |
Derivatives not designated as hedges | Interest rate swaps in a foreign currency | Other invested assets | |
Derivative [Line Items] | |
Notional amount, beginning balance | 2,793 |
Additions | 117 |
Maturities/ terminations | (345) |
Notional amount, ending balance | 2,565 |
Derivatives not designated as hedges | Interest rate caps and floors | |
Derivative [Line Items] | |
Notional amount, beginning balance | 0 |
Additions | 2,810 |
Maturities/ terminations | (186) |
Notional amount, ending balance | 2,624 |
Derivatives not designated as hedges | Credit default swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 39 |
Maturities/ terminations | (39) |
Notional amount, ending balance | 0 |
Derivatives not designated as hedges | Equity index options | |
Derivative [Line Items] | |
Notional amount, beginning balance | 2,420 |
Additions | 2,848 |
Maturities/ terminations | (2,640) |
Notional amount, ending balance | 2,628 |
Derivatives not designated as hedges | Financial futures | |
Derivative [Line Items] | |
Notional amount, beginning balance | 1,283 |
Additions | 5,377 |
Maturities/ terminations | (5,245) |
Notional amount, ending balance | 1,415 |
Derivatives not designated as hedges | Equity return swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 96 |
Additions | 3 |
Maturities/ terminations | (82) |
Notional amount, ending balance | 17 |
Derivatives not designated as hedges | Other foreign currency contracts | |
Derivative [Line Items] | |
Notional amount, beginning balance | 471 |
Additions | 1,739 |
Maturities/ terminations | (1,130) |
Notional amount, ending balance | $ 1,080 |
Derivatives not designated as hedges | GMWB embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 30,450 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (2,564) |
Notional amount, ending balance | Policies | 27,886 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 17,067 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (603) |
Notional amount, ending balance | Policies | 16,464 |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 985 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (56) |
Notional amount, ending balance | Policies | 929 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | $ (241) | $ 94 | $ 184 | ||
Gain (loss) reclassified into net income (loss) from OCI | 162 | 139 | 123 | ||
Gain (loss) recognized in net income (loss) | 2 | 8 | [1] | ||
Interest Rate Swaps Hedging Assets | Net Investment Income | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | (261) | 96 | 198 | ||
Gain (loss) reclassified into net income (loss) from OCI | 153 | 131 | 112 | ||
Interest Rate Swaps Hedging Assets | Net Investment (Gains) Losses | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | 0 | 0 | 0 | ||
Gain (loss) reclassified into net income (loss) from OCI | 9 | 8 | 2 | ||
Gain (loss) recognized in net income (loss) | 2 | 3 | [1] | ||
Interest Rate Swaps Hedging Liabilities | Interest Expense | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | 16 | (5) | |||
Gain (loss) reclassified into net income (loss) from OCI | 0 | 0 | |||
Interest Rate Swaps Hedging Liabilities | Net Investment (Gains) Losses | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in net income (loss) | [1] | 0 | |||
Foreign currency swaps | Net Investment Income | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | 4 | (2) | (4) | ||
Gain (loss) reclassified into net income (loss) from OCI | $ 0 | 0 | 0 | ||
Foreign currency swaps | Net Investment (Gains) Losses | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | 0 | ||||
Gain (loss) reclassified into net income (loss) from OCI | 0 | ||||
Gain (loss) recognized in net income (loss) | $ 0 | 5 | |||
Inflation indexed swaps | Net Investment Income | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | (5) | ||||
Gain (loss) reclassified into net income (loss) from OCI | 2 | ||||
Inflation indexed swaps | Net Investment (Gains) Losses | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | 0 | ||||
Gain (loss) reclassified into net income (loss) from OCI | 7 | ||||
Gain (loss) recognized in net income (loss) | [1] | $ 0 | |||
[1] | Represents ineffective portion of cash flow hedges, as there were no amounts excluded from the measurement of effectiveness. |
Reconciliation of Current Perio
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments [Abstract] | |||
Derivatives qualifying as effective accounting hedges, beginning of period | $ 2,065 | $ 2,085 | $ 2,045 |
Cumulative effect of changes in accounting: | |||
Stranded tax effects | 12 | ||
Changes to the hedge accounting model, net of deferred taxes | 2 | ||
Total cumulative effect of changes in accounting | 14 | ||
Current period increases (decreases) in fair value, net of deferred taxes | (194) | 38 | 120 |
Reclassification to net (income), net of deferred taxes | (104) | (58) | (80) |
Derivatives qualifying as effective accounting hedges, end of period | $ 1,781 | $ 2,065 | $ 2,085 |
Reconciliation of Current Per_2
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Changes to the hedge accounting model, deferred taxes | $ (1) | $ 0 | $ 0 |
Current period increases (decreases) in fair value, deferred taxes | 50 | (56) | (64) |
Reclassification to net (income), deferred taxes | $ 58 | $ 81 | $ 43 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Derivative [Line Items] | |||||
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to future net income (loss), net of tax | $ 1,781 | $ 2,065 | $ 2,085 | $ 2,045 | |
Year by which all forecasted transactions associated with qualifying cash flow hedges are expected to occur | 2,057 | ||||
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to net income in the next 12 months, net of tax | $ 109 | ||||
Amount reclassified to net income in connection with forecasted transactions that were no longer considered probable of occurring | 9 | 6 | $ 10 | ||
Derivative assets | Subject to enforceable master netting arrangement | |||||
Derivative [Line Items] | |||||
Amount to claim from counterparties if the downgrade provisions had been triggered | [1] | $ 45 | $ 85 | ||
[1] | Included $6 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of December 31, 2018 and 2017, respectively. |
Schedule of Pre-Tax Gain (Loss)
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (Loss) for Effects of Derivatives not Designated as Hedges (Detail) - Derivatives not designated as hedges - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | $ (104) | $ 94 | $ 11 | |
Interest rate swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 3 | 4 | 12 | |
Interest rate swaps in a foreign currency | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (5) | 70 | 28 | |
Interest rate swaps related to securitization entities | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | [1] | 0 | 0 | (10) |
Foreign currency swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (37) | 14 | 4 | |
Credit default swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 0 | 0 | 1 | |
Credit default swaps related to securitization entities | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | [1] | 0 | 7 | 18 |
Equity index options | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (34) | 57 | 10 | |
Financial futures | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 26 | (43) | (111) | |
Equity return swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (5) | (22) | (1) | |
Other foreign currency contracts | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (26) | 5 | (4) | |
GMWB embedded derivatives | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (54) | 78 | 76 | |
Fixed index annuity embedded derivatives | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 15 | (84) | (22) | |
Indexed universal life embedded derivatives | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | $ 13 | $ 8 | $ 10 | |
[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, 2018 | Dec. 31, 2017 | ||
Derivative [Line Items] | ||||
Gross amounts recognized, derivatives assets | $ 198 | $ 290 | ||
Gross amounts recognized, derivatives liabilities | 906 | 730 | ||
Subject to enforceable master netting arrangement | ||||
Derivative [Line Items] | ||||
Gross amounts recognized, net derivatives | 16 | 231 | ||
Gross amounts offset in the balance sheet, net derivatives | 0 | 0 | ||
Net amounts presented in the balance sheet, net derivatives | 16 | 231 | ||
Gross amounts not offset in the balance sheet, financial instruments, net derivatives | [1] | 0 | 0 | |
Collateral received | (84) | (170) | ||
Collateral pledged | 536 | 288 | ||
Over collateralization, net derivatives | (423) | (264) | ||
Net amount | 45 | 85 | ||
Subject to enforceable master netting arrangement | Derivative assets | ||||
Derivative [Line Items] | ||||
Gross amounts recognized, derivatives assets | [2] | 185 | 278 | |
Gross amounts offset in the balance sheet, derivatives assets | [2] | 0 | 0 | |
Net amounts presented in the balance sheet, derivatives assets | 185 | 278 | [2] | |
Gross amounts not offset in the balance sheet, financial instruments, derivatives assets | [1],[2] | (66) | (23) | |
Collateral received | [2] | (84) | (170) | |
Over collateralization, derivatives assets | [2] | 10 | 0 | |
Net amount, derivatives assets | [2] | 45 | 85 | |
Subject to enforceable master netting arrangement | Derivative liabilities | ||||
Derivative [Line Items] | ||||
Gross amounts recognized, derivatives liabilities | [3] | 169 | 47 | |
Gross amounts offset in the balance sheet, derivatives liabilities | [3] | 0 | 0 | |
Net amounts presented in the balance sheet, derivatives liabilities | [3] | 169 | 47 | |
Gross amounts not offset in the balance sheet, financial instruments, derivative liabilities | [1],[3] | (66) | (23) | |
Collateral pledged | [3] | (536) | (288) | |
Over collateralization, derivatives liabilities | [3] | 433 | 264 | |
Net amount, derivatives liabilities | [3] | $ 0 | $ 0 | |
[1] | Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty. | |||
[2] | Included $6 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of December 31, 2018 and 2017, respectively. | |||
[3] | Does not include amounts related to embedded derivatives and derivatives related to securitization entities as of December 31, 2018 and 2017. |
Additional Information about _2
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Parenthetical) (Detail) - Derivative assets - Subject to enforceable master netting arrangement - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | $ 185 | $ 278 | [1] |
Other assets | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | $ 6 | $ 2 | |
[1] | Included $6 million and $2 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of December 31, 2018 and 2017, respectively. |
Derivative Instruments Schedule
Derivative Instruments Schedule of Credit Default Swaps where we Sell Protection on Single Name Reference Entities and Fair Values (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional value | $ 25,460 | $ 23,307 |
Credit default swaps | Single Name Reference Entities | ||
Derivative [Line Items] | ||
Notional value | 0 | 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 | 0 | 39 |
Assets | 0 | 0 |
Liabilities | $ 0 | $ 0 |
Activity Impacting Deferred Acq
Activity Impacting Deferred Acquisition Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Policy Acquisition Costs [Line Items] | |||
Unamortized beginning balance | $ 3,999 | $ 4,241 | $ 4,569 |
Impact of foreign currency translation | (15) | 12 | 3 |
Costs deferred | 83 | 88 | 150 |
Amortization, net of interest accretion | (316) | (342) | (481) |
Unamortized ending balance | 3,751 | 3,999 | 4,241 |
Accumulated effect of net unrealized investment (gains) losses | (488) | (1,670) | (670) |
Ending balance | $ 3,263 | $ 2,329 | $ 3,571 |
Deferred Acquisition Costs - Ad
Deferred Acquisition Costs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Policy Acquisition Costs [Line Items] | ||||
Deferred Policy acquisition costs amortization | $ 316 | $ 342 | $ 481 | |
Deferred acquisition costs | $ 3,571 | 3,263 | 2,329 | 3,571 |
Accumulated effect of net unrealized investment (gains) losses | 488 | 1,670 | 670 | |
Increase in future policy benefit reserves | 1,208 | (803) | (21) | |
Long-term Care Insurance | ||||
Deferred Policy Acquisition Costs [Line Items] | ||||
Deferred acquisition costs | $ 0 | 0 | ||
Accumulated effect of net unrealized investment (gains) losses | 1,300 | |||
Increase in future policy benefit reserves | $ 1,000 | |||
Unlocking | ||||
Deferred Policy Acquisition Costs [Line Items] | ||||
Deferred Policy acquisition costs amortization | $ 144 | |||
Loss Recognition Testing | Immediate Fixed Annuity | ||||
Deferred Policy Acquisition Costs [Line Items] | ||||
Deferred Policy acquisition costs amortization | $ 14 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 3,073 | $ 2,931 |
Accumulated amortization | (2,739) | (2,645) |
Present Value Of Future Profits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 2,115 | 2,046 |
Accumulated amortization | (1,976) | (1,959) |
Capitalized Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 501 | 475 |
Accumulated amortization | (410) | (384) |
Deferred Sales Inducements To Contractholders | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 318 | 280 |
Accumulated amortization | (243) | (221) |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 139 | 130 |
Accumulated amortization | $ (110) | $ (81) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense related to PVFP, capitalized software and other intangible assets | $ 75 | $ 93 | $ 17 |
Amortization expense related to deferred sales inducements | $ 22 | $ 22 | $ 21 |
Activity in Present Value of Fu
Activity in Present Value of Future Profits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Unamortized balance as of January 1 | $ 187 | $ 222 | $ 205 |
Interest accreted at 5.60%, 5.38% and 5.15% | 10 | 11 | 11 |
Amortization | (27) | (46) | 6 |
Unamortized balance as of December 31 | 170 | 187 | 222 |
Accumulated effect of net unrealized investment (gains) losses | (31) | (100) | (67) |
Balance as of December 31 | $ 139 | $ 87 | $ 155 |
Activity in Present Value of _2
Activity in Present Value of Future Profits (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Interest accreted percentage | 5.60% | 5.38% | 5.15% |
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, 2018 |
Finite-Lived Intangible Assets [Line Items] | |
2,019 | 5.50% |
2,020 | 5.30% |
2,021 | 4.90% |
2,022 | 4.60% |
2,023 | 4.20% |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 17,278 | $ 17,569 | |
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 | $ 2,696 | 2,788 | $ 3,008 |
U.S. Life Insurance Subsidiaries | Fixed maturity securities | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Assets pledged as collateral | 10,400 | 10,319 | |
U.S. Life Insurance Subsidiaries | Commercial Mortgage Loan | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Assets pledged as collateral | 870 | 835 | |
Union Fidelity Life Insurance Company | Ceded Credit Risk | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Reinsurance recoverable | $ 13,975 | $ 14,255 |
Net Domestic Life Insurance In-
Net Domestic Life Insurance In-Force (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reinsurance [Abstract] | ||||
Direct life insurance in-force | $ 594,472 | $ 625,710 | $ 658,931 | |
Amounts assumed from other companies | 729 | 793 | 861 | |
Amounts ceded to other companies | [1] | (537,590) | (562,463) | (491,466) |
Net life insurance in-force | $ 57,611 | $ 64,040 | $ 168,326 | |
Percentage of amount assumed to net | 1.00% | 1.00% | ||
[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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reinsurance [Abstract] | |||
Direct, Written | $ 5,242 | $ 5,232 | $ 5,404 |
Assumed, Written | 336 | 382 | 372 |
Ceded, Written | (1,227) | (1,208) | (1,568) |
Net premiums, Written | 4,351 | 4,406 | 4,208 |
Direct, Earned | 5,400 | 4,839 | 5,355 |
Assumed, Earned | 344 | 381 | 382 |
Ceded, Earned | (1,225) | (1,216) | (1,577) |
Net premiums, Earned | $ 4,519 | $ 4,004 | $ 4,160 |
Percentage of amount assumed to net | 8.00% | 10.00% | 9.00% |
Life insurance | |||
Reinsurance [Abstract] | |||
Direct, Written | $ 881 | $ 929 | $ 977 |
Assumed, Written | 1 | 38 | 35 |
Ceded, Written | (576) | (538) | (856) |
Direct, Earned | 881 | 929 | 978 |
Assumed, Earned | 1 | 38 | 35 |
Ceded, Earned | (576) | (538) | (856) |
Accident and Health Insurance Product Line | |||
Reinsurance [Abstract] | |||
Direct, Written | 2,775 | 2,732 | 2,786 |
Assumed, Written | 328 | 337 | 331 |
Ceded, Written | (566) | (596) | (629) |
Direct, Earned | 2,800 | 2,756 | 2,816 |
Assumed, Earned | 332 | 341 | 335 |
Ceded, Earned | (571) | (604) | (638) |
Mortgage insurance | |||
Reinsurance [Abstract] | |||
Direct, Written | 1,586 | 1,571 | 1,641 |
Assumed, Written | 7 | 7 | 6 |
Ceded, Written | (85) | (74) | (83) |
Direct, Earned | 1,719 | 1,154 | 1,561 |
Assumed, Earned | 11 | 2 | 12 |
Ceded, Earned | $ (78) | $ (74) | $ (83) |
Recorded Liabilities and Major
Recorded Liabilities and Major Assumptions Underlying Future Policy Benefits (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | $ 37,940 | $ 38,472 | |
Long Term Care Insurance Contracts | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | [1] | $ 23,496 | 23,332 |
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% | |
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% | |
Structured Settlements with Life Contingencies | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | [2] | $ 8,576 | 8,724 |
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% | |
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% | |
Annuity Contracts with Life Contingencies | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | [2] | $ 3,238 | 3,723 |
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% | |
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% | |
Traditional Life Insurance Contracts | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | [3] | $ 2,300 | 2,387 |
Traditional Life Insurance Contracts | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits, Interest rate assumption | [3] | 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% | |
Supplementary Contracts with Life Contingencies | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | [2] | $ 329 | 303 |
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% | |
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% | |
Accident and Health Insurance Contracts | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | [4] | $ 1 | $ 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% | |
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% | |
[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, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance Reserves [Line Items] | ||||
Future policy benefit reserves | $ 37,940 | $ 38,472 | $ 37,940 | $ 38,472 |
Immediate Fixed Annuity | Loss Recognition Testing | ||||
Insurance Reserves [Line Items] | ||||
Increase in future policy benefit reserves | 22 | 89 | ||
Long-term Care Insurance | Profits Followed By Losses | ||||
Insurance Reserves [Line Items] | ||||
Future policy benefit reserves | 110 | 102 | 110 | 102 |
Long-term care insurance future policy benefit reserves present value of expected losses | $ 1,100 | $ 2,800 | $ 1,100 | $ 2,800 |
Percentage of profits to be accrued to reserves | 76.00% | 83.00% | 76.00% | 83.00% |
Unlocking | ||||
Insurance Reserves [Line Items] | ||||
Increase in liability for policyholder account balances | $ 119 | $ 70 | ||
Federal Home Loan Bank | ||||
Insurance Reserves [Line Items] | ||||
Federal Home Loan Bank common stock held | 50 | 37 | $ 50 | $ 37 |
Amount of funding agreements issued to the Federal Home Loan Bank | 594 | 280 | 594 | 280 |
Letters of credit related to the Federal Home Loan Bank | 28 | 28 | 28 | 28 |
Pledged assets for Federal Home Loan Bank at fair value | 785 | 388 | 785 | 388 |
Federal Home Loan Bank | Universal and term universal life insurance contracts | ||||
Insurance Reserves [Line Items] | ||||
Amount of funding agreements issued to the Federal Home Loan Bank | 213 | 20 | 213 | 20 |
Variable Annuity | Nontraditional Long-Duration Contracts | ||||
Insurance Reserves [Line Items] | ||||
Nontraditional long-duration contracts liability | 4,642 | 5,577 | 4,642 | 5,577 |
Guaranteed Minimum Death Benefit | Nontraditional Long-Duration Contracts | Annuity contracts | ||||
Insurance Reserves [Line Items] | ||||
Nontraditional long-duration contracts liability | 110 | 94 | 110 | 94 |
Guaranteed Minimum Withdrawal And Guaranteed Annuitization Benefit Contracts | ||||
Insurance Reserves [Line Items] | ||||
Guaranteed annuitization benefit contracts | $ 888 | $ 645 | $ 888 | $ 645 |
Recorded Liabilities for Policy
Recorded Liabilities for Policyholder Account Balances (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Insurance Reserves [Line Items] | ||
Policyholder account balances | $ 22,968 | $ 24,195 |
Investment contracts | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 13,105 | 14,675 |
Investment contracts | Annuity contracts | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 10,744 | 12,272 |
Investment contracts | Funding agreements and FABNs | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 381 | 260 |
Investment contracts | Structured settlements without life contingencies | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 1,329 | 1,451 |
Investment contracts | Supplementary contracts without life contingencies | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 636 | 677 |
Investment contracts | Other | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 15 | 15 |
Universal and term universal life insurance contract | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | $ 9,863 | $ 9,520 |
Information about Variable Annu
Information about Variable Annuity Products with Death and Living Benefit Guarantees (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Guaranteed minimum standard death benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Death benefits account value | $ 1,937 | $ 2,365 |
Net amount at risk | $ 3 | $ 2 |
Average attained age of contractholders | 75 years | 74 years |
Guaranteed minimum enhanced death benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Death benefits account value | $ 1,969 | $ 2,489 |
Net amount at risk | $ 207 | $ 114 |
Average attained age of contractholders | 75 years | 74 years |
Guaranteed minimum living benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Death benefits account value | $ 2,105 | $ 2,671 |
Guaranteed annuitization benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Death benefits account value | $ 995 | $ 1,198 |
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, 2018 | Dec. 31, 2017 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | $ 3,896 | $ 4,843 |
Balanced funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | 2,414 | 2,998 |
Equity funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | 1,003 | 1,262 |
Bond funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | 399 | 498 |
Money market funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | $ 80 | $ 85 |
Liability for Policy and Cont_3
Liability for Policy and Contract Claims (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | $ 10,379 | $ 9,594 | ||
Long-term Care Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 9,516 | 8,548 | $ 8,034 | $ 6,749 |
Liability for policy and contract claims, net of reinsurance | 7,254 | 6,256 | 5,724 | 4,694 |
Reinsurance recoverable on unpaid claims | 2,262 | 2,292 | $ 2,310 | $ 2,055 |
U.S. Mortgage Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 296 | |||
Australia Mortgage Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 196 | |||
Canada Mortgage Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 84 | |||
Insurance lines other than short-duration contracts | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 9,796 | 8,827 | ||
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 | 9,516 | 8,548 | ||
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 | 243 | 244 | ||
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 | 23 | 24 | ||
Insurance lines other than short-duration contracts | Runoff | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 14 | 11 | ||
Short-duration contracts | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liability for policy and contract claims, net of reinsurance | 583 | 766 | ||
Reinsurance recoverable on unpaid claims | 1 | |||
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 | 296 | 454 | ||
Reinsurance recoverable on unpaid claims | 1 | |||
Short-duration contracts | Australia Mortgage Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liability for policy and contract claims, net of reinsurance | 196 | 218 | ||
Short-duration contracts | Canada Mortgage Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liability for policy and contract claims, net of reinsurance | 84 | 87 | ||
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Beginning balance | $ 9,594 | ||
Ending balance | 10,379 | $ 9,594 | |
Long-term Care Insurance | |||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Beginning balance | 8,548 | 8,034 | $ 6,749 |
Less reinsurance recoverables | (2,292) | (2,310) | (2,055) |
Net beginning balance | 6,256 | 5,724 | 4,694 |
Current year | 2,548 | 2,234 | 2,066 |
Prior years | 130 | (183) | 377 |
Total incurred | 2,678 | 2,051 | 2,443 |
Current year | (201) | (176) | (166) |
Prior years | (1,814) | (1,644) | (1,506) |
Total paid | (2,015) | (1,820) | (1,672) |
Interest on liability for policy and contract claims | 335 | 301 | 259 |
Net ending balance | 7,254 | 6,256 | 5,724 |
Add reinsurance recoverables | 2,262 | 2,292 | 2,310 |
Ending balance | $ 9,516 | $ 8,548 | $ 8,034 |
Liability for Policy and Cont_4
Liability for Policy and Contract Claims - Additional Information (Detail) - Long-term Care Insurance - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Increase (Decrease) in claim reserves | $ 968 | $ 1,285 | ||||
Incurred related to insured events of prior year | $ 130 | $ (183) | $ 377 | |||
Changes in Assumptions and Methodologies | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Increase (Decrease) in claim reserves | 308 | 460 | ||||
Increase in reinsurance recoverable | $ 17 | $ 25 | ||||
Incurred related to insured events of prior year | 231 | 305 | ||||
Increase in reinsurance recoverable related to insured events of prior year | $ 18 | $ 221 | ||||
Claim Reserve Refinement | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Increase (Decrease) in claim reserves | $ 222 | |||||
Increase in reinsurance recoverable | $ 222 |
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, 2018USD ($)Claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | |
U.S. Mortgage Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 5,781 | |||||||||
U.S. Mortgage Insurance | Accident Year 2009 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 1,803 | $ 1,802 | $ 1,799 | $ 1,792 | $ 1,782 | $ 1,752 | $ 1,755 | $ 1,762 | $ 1,697 | $ 1,341 |
Number of reported delinquencies | Claim | [1],[2] | 151,948 | |||||||||
U.S. Mortgage Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 1,174 | 1,174 | 1,173 | 1,173 | 1,165 | 1,146 | 1,139 | 1,157 | 977 | |
Number of reported delinquencies | Claim | [1],[2] | 90,403 | |||||||||
U.S. Mortgage Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 939 | 939 | 939 | 938 | 929 | 913 | 931 | 910 | ||
Number of reported delinquencies | Claim | [1],[2] | 69,155 | |||||||||
U.S. Mortgage Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 667 | 668 | 671 | 673 | 671 | 675 | 718 | |||
Number of reported delinquencies | Claim | [1],[2] | 48,392 | |||||||||
U.S. Mortgage Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 382 | 384 | 387 | 392 | 407 | 475 | ||||
Number of reported delinquencies | Claim | [1],[2] | 34,187 | |||||||||
U.S. Mortgage Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 259 | 261 | 269 | 288 | 328 | |||||
Number of reported delinquencies | Claim | [1],[2] | 26,434 | |||||||||
U.S. Mortgage Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 181 | 187 | 208 | 235 | ||||||
Number of reported delinquencies | Claim | [1],[2] | 21,372 | |||||||||
U.S. Mortgage Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 138 | 160 | 198 | |||||||
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims | [1] | $ 1 | |||||||||
Number of reported delinquencies | Claim | [1],[2] | 18,427 | |||||||||
U.S. Mortgage Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 121 | 171 | ||||||||
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims | [1] | $ 2 | |||||||||
Number of reported delinquencies | Claim | [1],[2] | 18,087 | |||||||||
U.S. Mortgage Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 117 | |||||||||
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims | [1] | $ 16 | |||||||||
Number of reported delinquencies | Claim | [1],[2] | 11,269 | |||||||||
Australia Mortgage Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[4] | $ 1,083 | |||||||||
Australia Mortgage Insurance | Accident Year 2009 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[4] | $ 131 | 131 | 131 | 130 | 131 | 131 | 133 | 113 | 117 | 68 |
Number of reported delinquencies | Claim | [2],[3],[4] | 2,389 | |||||||||
Australia Mortgage Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[4] | $ 139 | 139 | 139 | 141 | 141 | 143 | 143 | 110 | 56 | |
Number of reported delinquencies | Claim | [2],[3],[4] | 2,342 | |||||||||
Australia Mortgage Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[4] | $ 132 | 133 | 133 | 135 | 137 | 143 | 147 | 77 | ||
Number of reported delinquencies | Claim | [2],[3],[4] | 2,339 | |||||||||
Australia Mortgage Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[4] | $ 95 | 94 | 95 | 98 | 102 | 116 | 73 | |||
Number of reported delinquencies | Claim | [2],[3],[4] | 1,896 | |||||||||
Australia Mortgage Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[4] | $ 67 | 67 | 70 | 77 | 90 | 69 | ||||
Number of reported delinquencies | Claim | [2],[3],[4] | 1,540 | |||||||||
Australia Mortgage Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[4] | $ 70 | 72 | 77 | 91 | 65 | |||||
Number of reported delinquencies | Claim | [2],[3],[4] | 1,433 | |||||||||
Australia Mortgage Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[4] | $ 93 | 96 | 114 | 76 | ||||||
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims | $ 1 | ||||||||||
Number of reported delinquencies | Claim | [2],[3],[4] | 1,549 | |||||||||
Australia Mortgage Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[4] | $ 125 | 140 | 105 | |||||||
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims | [3],[4] | $ 3 | |||||||||
Number of reported delinquencies | Claim | [2],[3],[4] | 2,183 | |||||||||
Australia Mortgage Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[4] | $ 135 | 100 | ||||||||
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims | [3],[4] | $ 14 | |||||||||
Number of reported delinquencies | Claim | [2],[3],[4] | 3,342 | |||||||||
Australia Mortgage Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[4] | $ 96 | |||||||||
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims | [3],[4] | $ 33 | |||||||||
Number of reported delinquencies | Claim | [2],[3],[4] | 3,215 | |||||||||
Canada Mortgage Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 1,156 | |||||||||
Canada Mortgage Insurance [Member] | Accident Year 2009 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 197 | 197 | 197 | 198 | 198 | 199 | 196 | 193 | 171 | $ 153 | |
Number of reported delinquencies | Claim | [5] | 6,702 | |||||||||
Canada Mortgage Insurance [Member] | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 169 | 169 | 170 | 169 | 170 | 171 | 169 | 151 | $ 137 | ||
Number of reported delinquencies | Claim | [5] | 6,601 | |||||||||
Canada Mortgage Insurance [Member] | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 150 | 150 | 151 | 152 | 15 | 153 | 151 | $ 134 | |||
Number of reported delinquencies | Claim | [5] | 5,707 | |||||||||
Canada Mortgage Insurance [Member] | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 108 | 109 | 109 | 110 | 110 | 111 | $ 112 | ||||
Number of reported delinquencies | Claim | [5] | 5,316 | |||||||||
Canada Mortgage Insurance [Member] | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 97 | 98 | 98 | 98 | 100 | $ 103 | |||||
Number of reported delinquencies | Claim | [5] | 4,949 | |||||||||
Canada Mortgage Insurance [Member] | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 85 | 86 | 86 | 88 | $ 92 | ||||||
Number of reported delinquencies | Claim | [5] | 4,948 | |||||||||
Canada Mortgage Insurance [Member] | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 87 | 88 | 92 | $ 103 | |||||||
Number of reported delinquencies | Claim | [5] | 4,626 | |||||||||
Canada Mortgage Insurance [Member] | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 94 | 105 | $ 121 | ||||||||
Number of reported delinquencies | Claim | [5] | 5,133 | |||||||||
Canada Mortgage Insurance [Member] | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 84 | $ 78 | |||||||||
Number of reported delinquencies | Claim | [5] | 3,785 | |||||||||
Canada Mortgage Insurance [Member] | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 85 | ||||||||||
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims | [6] | $ 24 | |||||||||
Number of reported delinquencies | Claim | [5] | 3,688 | |||||||||
[1] | Represents the year in which first monthly mortgage payments have been missed by the borrower. | ||||||||||
[2] | Represents outstanding delinquencies plus paid claims as of December 31, 2018 for each respective accident year. | ||||||||||
[3] | Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2018. | ||||||||||
[4] | Represents the year in which first monthly mortgage payments have been missed by the borrower | ||||||||||
[5] | Represents reported delinquencies as of December 31 for each respective accident year. | ||||||||||
[6] | Incurred-but-not-reported liabilities exist only relative to the year 2018 as lenders are required to report losses after three consecutive 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, 2018 | 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 | ||
Claims Development [Line Items] | |||||||||||
Liability for policy and contract claims | $ 10,379 | $ 9,594 | |||||||||
U.S. Mortgage Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [1] | 5,781 | |||||||||
Total paid | [1] | 5,499 | |||||||||
All outstanding liabilities before 2009 | 14 | ||||||||||
Liability for policy and contract claims | 296 | ||||||||||
U.S. Mortgage Insurance | Accident Year 2009 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [1] | 1,803 | 1,802 | $ 1,799 | $ 1,792 | $ 1,782 | $ 1,752 | $ 1,755 | $ 1,762 | $ 1,697 | $ 1,341 |
Total paid | [1] | 1,794 | 1,777 | 1,753 | 1,709 | 1,638 | 1,556 | 1,434 | 1,245 | 940 | 285 |
U.S. Mortgage Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [1] | 1,174 | 1,174 | 1,173 | 1,173 | 1,165 | 1,146 | 1,139 | 1,157 | 977 | |
Total paid | [1] | 1,167 | 1,158 | 1,139 | 1,109 | 1,049 | 973 | 844 | 567 | 140 | |
U.S. Mortgage Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [1] | 939 | 939 | 939 | 938 | 929 | 913 | 931 | 910 | ||
Total paid | [1] | 935 | 927 | 906 | 874 | 816 | 722 | 497 | 65 | ||
U.S. Mortgage Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [1] | 667 | 668 | 671 | 673 | 671 | 675 | 718 | |||
Total paid | [1] | 658 | 650 | 634 | 602 | 532 | 391 | 92 | |||
U.S. Mortgage Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [1] | 382 | 384 | 387 | 392 | 407 | 475 | ||||
Total paid | [1] | 372 | 362 | 340 | 297 | 202 | 44 | ||||
U.S. Mortgage Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [1] | 259 | 261 | 269 | 288 | 328 | |||||
Total paid | [1] | 247 | 233 | 195 | 127 | 22 | |||||
U.S. Mortgage Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [1] | 181 | 187 | 208 | 235 | ||||||
Total paid | [1] | 167 | 145 | 85 | 12 | ||||||
U.S. Mortgage Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [1] | 138 | 160 | 198 | |||||||
Total paid | [1] | 110 | 64 | 10 | |||||||
U.S. Mortgage Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [1] | 121 | 171 | ||||||||
Total paid | [1] | 46 | 6 | ||||||||
U.S. Mortgage Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [1] | 117 | |||||||||
Total paid | [1] | 3 | |||||||||
Canada Mortgage Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [1],[2] | 1,156 | |||||||||
Total paid | [1],[2] | 1,059 | |||||||||
Other | [3] | (13) | |||||||||
Liability for policy and contract claims | 84 | ||||||||||
Canada Mortgage Insurance | Accident Year 2009 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | 197 | 197 | 197 | 198 | 198 | 199 | 196 | 193 | 171 | 153 | |
Total paid | [1],[2] | 197 | 197 | 197 | 197 | 198 | 197 | 196 | 187 | 128 | 24 |
Canada Mortgage Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | 169 | 169 | 170 | 169 | 170 | 171 | 169 | 151 | 137 | ||
Total paid | [1],[2] | 169 | 169 | 169 | 169 | 169 | 170 | 166 | 124 | 28 | |
Canada Mortgage Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | 150 | 150 | 151 | 152 | 15 | 153 | 151 | 134 | |||
Total paid | [1],[2] | 150 | 150 | 151 | 151 | 152 | 152 | 135 | 37 | ||
Canada Mortgage Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | 108 | 109 | 109 | 110 | 110 | 111 | 112 | ||||
Total paid | [1],[2] | 107 | 108 | 108 | 108 | 107 | 100 | 24 | |||
Canada Mortgage Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | 97 | 98 | 98 | 98 | 100 | 103 | |||||
Total paid | [1],[2] | 97 | 98 | 98 | 96 | 88 | 25 | ||||
Canada Mortgage Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | 85 | 86 | 86 | 88 | 92 | ||||||
Total paid | [1],[2] | 85 | 85 | 83 | 73 | 17 | |||||
Canada Mortgage Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | 87 | 88 | 92 | 103 | |||||||
Total paid | [1],[2] | 87 | 87 | 74 | 19 | ||||||
Canada Mortgage Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | 94 | 105 | 121 | ||||||||
Total paid | [1],[2] | 91 | 81 | 17 | |||||||
Canada Mortgage Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | 84 | 78 | |||||||||
Total paid | [1],[2] | 61 | 12 | ||||||||
Canada Mortgage Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | 85 | ||||||||||
Total paid | [1],[2] | 15 | |||||||||
Australia Mortgage Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [2],[4] | 1,083 | |||||||||
Total paid | [2],[4] | 872 | |||||||||
Other | [5] | (15) | |||||||||
Liability for policy and contract claims | 196 | ||||||||||
Australia Mortgage Insurance | Accident Year 2009 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [2],[4] | 131 | 131 | 131 | 130 | 131 | 131 | 133 | 113 | 117 | 68 |
Total paid | [2],[4] | 131 | 131 | 130 | 130 | 130 | 129 | 121 | 77 | 46 | $ 13 |
Australia Mortgage Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [2],[4] | 139 | 139 | 139 | 141 | 141 | 143 | 143 | 110 | 56 | |
Total paid | [2],[4] | 139 | 139 | 139 | 138 | 137 | 134 | 113 | 32 | $ 6 | |
Australia Mortgage Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [2],[4] | 132 | 133 | 133 | 135 | 137 | 143 | 147 | 77 | ||
Total paid | [2],[4] | 132 | 132 | 132 | 132 | 130 | 121 | 74 | $ 5 | ||
Australia Mortgage Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [2],[4] | 95 | 94 | 95 | 98 | 102 | 116 | 73 | |||
Total paid | [2],[4] | 94 | 93 | 92 | 91 | 86 | 67 | $ 12 | |||
Australia Mortgage Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [2],[4] | 67 | 67 | 70 | 77 | 90 | 69 | ||||
Total paid | [2],[4] | 66 | 65 | 62 | 56 | 39 | $ 10 | ||||
Australia Mortgage Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [2],[4] | 70 | 72 | 77 | 91 | 65 | |||||
Total paid | [2],[4] | 67 | 64 | 51 | 28 | $ 6 | |||||
Australia Mortgage Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [2],[4] | 93 | 96 | 114 | 76 | ||||||
Total paid | [2],[4] | 84 | 71 | 31 | $ 4 | ||||||
Australia Mortgage Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [2],[4] | 125 | 140 | 105 | |||||||
Total paid | [2],[4] | 93 | 56 | $ 7 | |||||||
Australia Mortgage Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [2],[4] | 135 | 100 | ||||||||
Total paid | [2],[4] | 54 | $ 10 | ||||||||
Australia Mortgage Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Total incurred | [2],[4] | 96 | |||||||||
Total paid | [2],[4] | $ 12 | |||||||||
[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, 2018. | ||||||||||
[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 receiving in the future once the claims have been settled, foreign currency translation and differences in accounting basis under local Canadian International Financial Reporting Standards. | ||||||||||
[4] | Represents the year in which 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, 2018 |
U.S. Mortgage Insurance | |
Claims Development [Line Items] | |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year one | 9.00% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year two | 39.70% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year three | 25.50% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year four | 11.40% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year five | 6.00% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year six | 3.60% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year seven | 2.50% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year eight | 1.70% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year nine | 1.10% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year ten | 0.80% |
Canada Mortgage Insurance | |
Claims Development [Line Items] | |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year one | 19.40% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year two | 63.00% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year three | 14.70% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year four | 1.70% |
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 | (0.70%) |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year eight | 0.00% |
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 [Member] | |
Claims Development [Line Items] | |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year one | 8.60% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year two | 36.60% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year three | 33.70% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year four | 14.60% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year five | 3.10% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year six | 0.90% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year seven | 0.50% |
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 | 0.20% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year ten | 0.00% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Savings Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
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 | ||
Costs associated with plan | $ 12 | 11 | $ 13 | |
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 | 11 | ||
Pension and Retiree Health and Life Insurance Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Costs associated with plan | 22 | 21 | $ 18 | |
Retiree Health and Life Insurance Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Liability related to benefit plan | 79 | 89 | ||
Change in other comprehensive income, (increase) reduction | $ (10) | (2) | ||
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 | |||
Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Liability related to benefit plan | $ 71 | 77 | ||
Change in other comprehensive income, (increase) reduction | $ 6 | $ 5 |
Borrowings and Other Financin_3
Borrowings and Other Financings - Additional Information (Detail) | May 22, 2018USD ($) | Mar. 07, 2018USD ($) | Jan. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 30, 2018 | Oct. 26, 2018CAD ($) | Oct. 04, 2018USD ($) | Sep. 29, 2017CAD ($) |
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Broker, advisor and investment banking fees | $ 18,000,000 | $ 6,000,000 | $ 0 | $ 18,000,000 | |||||||||
Net proceeds of from senior secured term loan facility | 441,000,000 | ||||||||||||
Pre-tax gain (loss) on repurchase of senior notes | 0 | 0 | 48,000,000 | ||||||||||
Non-recourse funding obligationsTotal | $ 311,000,000 | 311,000,000 | 310,000,000 | ||||||||||
Redemption of secured debt | 1,620,000,000 | ||||||||||||
Gains (losses) from life block transactions | 0 | 0 | 9,000,000 | ||||||||||
Repayment of investment securities under repurchase agreements | 75,000,000 | ||||||||||||
Securities lending activity, obligation to return collateral | $ 102,000,000 | $ 102,000,000 | 268,000,000 | ||||||||||
Risks associated with repurchase agreements and securities lending programs | [Text Block] | ||||||||||||
Life Block Transaction | |||||||||||||
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 | $ 99,000,000 | $ 99,000,000 | 258,000,000 | ||||||||||
Securities lending activity, fair value of collateral held | 102,000,000 | 102,000,000 | 268,000,000 | ||||||||||
Securities lending activity, obligation to return collateral | $ 102,000,000 | $ 102,000,000 | 268,000,000 | ||||||||||
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 | $ 512,000,000 | $ 512,000,000 | $ 382,000,000 | ||||||||||
Non-Recourse Funding Obligations | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Weighted average interest rate | 4.49% | 4.49% | 3.54% | ||||||||||
Non-Recourse Funding Obligations | Floating Rate Subordinated Notes Due 2033 | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Debt instrument, maturity year | 2,033 | ||||||||||||
Redemption of secured debt | $ 975,000,000 | ||||||||||||
Non-Recourse Funding Obligations | Floating Rate Subordinated Notes Due in 2035 | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Debt instrument, maturity year | 2,035 | ||||||||||||
Redemption of secured debt | $ 645,000,000 | ||||||||||||
Rivermont Life Insurance Company I Due 2050 | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Borrowing costs that were deferred | $ 4,000,000 | $ 4,000,000 | $ 5,000,000 | ||||||||||
Debt instrument, maturity year | 2,050 | ||||||||||||
Non-recourse funding obligationsTotal | 311,000,000 | $ 311,000,000 | 310,000,000 | ||||||||||
Interest rate reset period, number of days | 28 days | ||||||||||||
Genworth Canada | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Borrowing costs that were deferred | 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||||||||||
Genworth Canada | Syndicated senior unsecured revolving credit facility Due on September 29, 2022 | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Facility, maximum borrowing capacity | $ 200,000,000 | ||||||||||||
Line of credit maturity date | Sep. 29, 2022 | ||||||||||||
Debt instrument, covenant description | As of December 31, 2018, there was no amount outstanding under Genworth Canada's credit facility and all of the covenants were fully met. | ||||||||||||
Outstanding line of credit | $ 0 | $ 0 | |||||||||||
Genworth Canada | Syndicated senior unsecured revolving credit facility Due on September 29, 2023 | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Facility, maximum borrowing capacity | $ 300,000,000 | ||||||||||||
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 | |||||||||||
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 | ||||||||||||
Genworth Holdings | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Borrowing costs that were deferred | $ 21,000,000 | $ 21,000,000 | $ 16,000,000 | ||||||||||
Total Fees related to Consent Solicitation | 11,000,000 | $ 61,000,000 | |||||||||||
Bond consent fees | 32,000,000 | 43,000,000 | 32,000,000 | 33,000,000 | $ 5,000,000 | ||||||||
Broker, advisor and investment banking fees | $ 6,000,000 | 18,000,000 | $ 6,000,000 | 18,000,000 | |||||||||
Aggregate principal amount of notes repurchased | 28,000,000 | 28,000,000 | 28,000,000 | ||||||||||
Pre-tax make-whole expense on redemption of senior notes | 20,000,000 | ||||||||||||
Pre-tax gain (loss) on repurchase of senior notes | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | ||||||||||
Genworth Holdings | Senior Secured Term Loan Facility | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Facility, maximum borrowing capacity | $ 450,000,000 | ||||||||||||
Debt instrument, maturity date | Mar. 7, 2023 | ||||||||||||
Discount rate | 0.50% | ||||||||||||
Payments under agreement, due date | Jun. 30, 2018 | ||||||||||||
Quarterly equal payable of original principal, percentage | 0.25% | ||||||||||||
Term loan variable interest rate, description | The Term Loan will bear interest at either an adjusted LIBOR rate no lower than 1.0% plus a margin of 4.5% per annum or an alternate base rate plus a margin of 3.5% per annum. | ||||||||||||
Weighted average interest rate | 7.00% | ||||||||||||
Borrowing costs that were deferred | $ 7,000,000 | ||||||||||||
Genworth Holdings | Senior Secured Term Loan Facility | LIBOR | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Interest rate | 1.00% | ||||||||||||
Term Loan variable interest rate | 4.50% | ||||||||||||
Genworth Holdings | Senior Secured Term Loan Facility | Base Rate [Member] | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Term Loan variable interest rate | 3.50% | ||||||||||||
Genworth Holdings | Fixed Rate Senior Notes | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Debt instrument, redemption description | [Text Block] | ||||||||||||
Genworth Holdings | Fixed Rate Senior Notes | Minimum | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Interest rate | 4.80% | 4.80% | |||||||||||
Senior notes redemption option | 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 2066 | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Issued notes, aggregate principal amount | $ 598,000,000 | $ 598,000,000 | |||||||||||
Debt instrument, maturity month and year | 2066-11 | ||||||||||||
Quarterly floating interest rate after November 15, 2016 | three month London Interbank Offered Rate ("LIBOR") plus 2.0025% | ||||||||||||
Scheduled redemption date | Nov. 15, 2036 | ||||||||||||
Right to defer the payment of interest on the 2066 Notes during period, years | 10 years | ||||||||||||
Genworth Holdings | 6.52% Senior Notes, Due 2018 | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Interest rate | 6.52% | ||||||||||||
Aggregate principal amount of notes repurchased | $ 597,000,000 | ||||||||||||
Debt instrument, maturity month and year | 2018-05 | ||||||||||||
Repayment of senior notes | $ 616,000,000 | ||||||||||||
Net proceeds of from senior secured term loan facility | 441,000,000 | ||||||||||||
Cash on hand | $ 175,000,000 | ||||||||||||
Debt instrument, maturity year | 2,018 | ||||||||||||
Genworth Financial Mortgage Insurance Pty Limited | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Term Loan variable interest rate | 3.50% | ||||||||||||
Borrowing costs that were deferred | $ 1,000,000 | $ 1,000,000 | $ 2,000,000 | ||||||||||
Debt instrument, maturity year | 2,025 | ||||||||||||
Genworth Financial International Holdings | Genworth Canada | |||||||||||||
Nonrecourse Funding Obligations [Line Items] | |||||||||||||
Ownership percentage | 40.50% |
Borrowings and Other Financin_4
Borrowings and Other Financings - Long Term Borrowings (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Oct. 04, 2018 | Dec. 31, 2017 | Mar. 31, 2016 |
Debt Instrument [Line Items] | ||||
Total | $ 4,025 | $ 4,224 | ||
Genworth Holdings | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowings | 3,620 | 3,773 | ||
Bond consent fees | (32) | $ (5) | (33) | $ (43) |
Deferred borrowing charges | (21) | (16) | ||
Total | 3,567 | 3,724 | ||
Genworth Holdings | Floating Rate Senior Secured Term Loan Facility, Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowings | 445 | |||
Genworth Holdings | 6.52% Senior Notes, Due 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowings | 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 | 703 | 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 | Floating Rate Junior Subordinated Notes, due 2066 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowings | 598 | 598 | ||
Genworth Canada | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowings | 319 | 347 | ||
Deferred borrowing charges | (1) | (1) | ||
Total | 318 | 346 | ||
Genworth Canada | 5.68% Senior Notes, Due 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowings | 202 | 219 | ||
Genworth Canada | 4.24% Senior Notes, due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowings | 117 | 128 | ||
Genworth Financial Mortgage Insurance Pty Limited | ||||
Debt Instrument [Line Items] | ||||
Deferred borrowing charges | (1) | (2) | ||
Total | 140 | 154 | ||
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Subordinated Notes, due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowings | $ 141 | $ 156 |
Borrowings and Other Financin_5
Borrowings and Other Financings - Long Term Borrowings (Parenthetical) (Detail) | May 22, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Genworth Financial Mortgage Insurance Pty Limited | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity year | 2,025 | ||
Floating Rate Senior Secured Term Loan Facility, Due 2023 | Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity year | 2,023 | 2,023 | |
6.52% Senior Notes, Due 2018 | Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.52% | ||
Debt instrument, maturity year | 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 | |
Floating Rate Junior Subordinated Notes, due 2066 [Member] | Genworth Holdings | |||
Debt Instrument [Line Items] | |||
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 Subordinated Notes Due 2025 [Member] | 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, 2018USD ($) | |
Principal Amounts Of Long Term Debt Including Senior Notes And Non Recourse Funding By Maturity [Line Items] | ||
2,019 | $ 0 | |
2,020 | 599 | |
2,021 | 1,084 | |
2,022 | 0 | |
2023 and thereafter | 2,712 | [1] |
Total | $ 4,395 | |
[1] | Repayment of $315 million of our non-recourse funding obligations requires regulatory approval. |
Principal Amounts of Long Ter_2
Principal Amounts of Long Term Debt Including Senior Notes and Non-recourse Funding by Maturity (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
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, 2018 | Dec. 31, 2017 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | $ 102 | $ 268 |
Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 1 | 5 |
Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 101 | 263 |
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 | |
Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 11 | 50 |
Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 67 | 85 |
Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 23 | 56 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 102 | 268 |
Overnight and continuous | Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 1 | 5 |
Overnight and continuous | Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 101 | 263 |
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 | |
Overnight and continuous | Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 11 | 50 |
Overnight and continuous | Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 67 | 85 |
Overnight and continuous | Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | $ 23 | $ 56 |
Components of Income (Loss) bef
Components of Income (Loss) before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
Domestic | $ (63) | $ 397 | $ (283) |
Foreign | 511 | 332 | 603 |
Income (loss) from continuing operations before income taxes | $ 448 | $ 729 | $ 320 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | ||||
Current federal income taxes | $ 11 | $ (32) | $ 55 | |
Deferred federal income taxes | (18) | (274) | 115 | |
Total federal income taxes | (7) | (306) | 170 | |
Current state income taxes | 1 | 1 | 1 | |
Deferred state income taxes | 6 | 2 | ||
Total state income taxes | 1 | 7 | 3 | |
Current foreign income taxes | 134 | 192 | 183 | |
Deferred foreign income taxes | 23 | (100) | 2 | |
Total foreign income taxes | 157 | 92 | 185 | |
Total provision (benefit) for income taxes | $ 456 | $ 151 | $ (207) | $ 358 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||||||
Current income tax payable | $ 28,000,000 | $ 28,000,000 | |||||
Current income tax receivable | $ 41,000,000 | ||||||
Valuation allowance | (258,000,000) | ||||||
Valuation allowances | 363,000,000 | 334,000,000 | 363,000,000 | ||||
NOL carryforwards | 1,319,000,000 | ||||||
Foreign tax credit carryforwards | 603,000,000 | $ 265,000,000 | 603,000,000 | ||||
Net operating loss carryforwards, expiration date/(year) | 2,028 | ||||||
Foreign tax credit carryforwards, expiration year | 2,024 | ||||||
Net deferred tax asset | 477,000,000 | $ 712,000,000 | 477,000,000 | ||||
Valuation allowance | (258,000,000) | (258,000,000) | |||||
Unrecognized tax benefits | 42,000,000 | 79,000,000 | 42,000,000 | $ 34,000,000 | $ 28,000,000 | ||
Unrecognized tax benefits, amount that if recognized would affect the effective rate on continuing operations | 43,000,000 | ||||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 62,000,000 | ||||||
Maximum | |||||||
Income Taxes [Line Items] | |||||||
Unrecognized tax benefits, interest and penalties (expense) | $ 1,000,000 | 1,000,000 | 1,000,000 | ||||
Section 338 Election | |||||||
Income Taxes [Line Items] | |||||||
Tax matters agreement obligation related to Section 338 election, period of repayment, years | 5 years | ||||||
Maximum deferred tax assets related to Section 338 election deduction | $ 640,000,000 | ||||||
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 | $ 19,000,000 | (154,000,000) | |||||
2017 Tax Act, income tax provision due to one-time transition tax related to foreign E&P | $ (10,000,000) | 63,000,000 | |||||
2017 Tax Act, income tax provision due to one-time transition tax related to insurance policyholders reserves | 134,000,000 | ||||||
Tax Matters Agreement | |||||||
Income Taxes [Line Items] | |||||||
Interest expense related to tax matters agreement | $ 6,000,000 | 7,000,000 | $ 10,000,000 | ||||
Accretion rate for tax matters agreement | 5.72% | ||||||
Liability for estimated present value of tax payments to former parent | $ 119,000,000 | $ 90,000,000 | $ 119,000,000 |
Reconciliation of Federal Statu
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Examination [Line Items] | |||
Statutory U.S. federal income tax rate | 21.00% | 35.00% | 35.00% |
Effect of foreign operations | 7.70% | (1.60%) | |
Swaps terminated prior to the TCJA | 5.10% | ||
Stock-based compensation | 1.30% | 0.40% | 1.60% |
Valuation allowance | (1.70%) | (35.40%) | 72.80% |
Net impact of repatriating foreign earnings | 2.80% | ||
Other, net | (0.20%) | 1.50% | 1.30% |
TCJA, impact from change in rate | 2.70% | (21.10%) | |
TCJA, impact from foreign operations | (2.20%) | (8.80%) | |
Effective rate | 33.70% | (28.40%) | 111.90% |
Components Net Deferred Income
Components Net Deferred Income Tax Liability (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes [Abstract] | ||
Foreign tax credit carryforwards | $ 265 | $ 603 |
Net operating loss carryforwards | 298 | 499 |
State income taxes | 326 | 347 |
Insurance reserves | 706 | 146 |
Accrued commission and general expenses | 116 | 127 |
Net unrealized losses on derivatives | 10 | |
Investments | 5 | 27 |
Other | 42 | 34 |
Gross deferred income tax assets | 1,768 | 1,783 |
Valuation allowance | (334) | (363) |
Total deferred income tax assets | 1,434 | 1,420 |
Net unrealized gains on investment securities | 153 | 325 |
Net unrealized gains on derivatives | 28 | |
DAC | 336 | 396 |
PVFP and other intangibles | 52 | 38 |
Insurance reserves transition adjustment | 149 | 134 |
Other | 32 | 22 |
Total deferred income tax liabilities | 722 | 943 |
Net deferred income tax asset | $ 712 | $ 477 |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
Balance as of January 1 | $ 42 | $ 34 | $ 28 |
Gross additions, current period | 2 | 2 | 6 |
Gross reductions, current period | (3) | (1) | |
Gross additions, prior years | 40 | 13 | |
Gross reductions, prior years | (2) | (6) | |
Balance as of December 31 | $ 79 | $ 42 | $ 34 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |||
Net cash paid for taxes | $ 197 | $ 165 | $ 203 |
Cash paid for interest | $ 326 | $ 318 | $ 381 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Based Employee Compensation [Line Items] | |||||
Stock-based compensation expense | $ 37 | $ 42 | $ 32 | ||
Granted, shares subject to option | 0 | 0 | |||
Unrecognized stock-based compensation expense | $ 6 | $ 13 | |||
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 | 4 | 2 | |||
Genworth Canada | |||||
Share Based Employee Compensation [Line Items] | |||||
Stock-based compensation expense | 2 | 11 | 8 | ||
Unrecognized stock-based compensation expense | 3 | 4 | 3 | ||
Genworth Australia | |||||
Share Based Employee Compensation [Line Items] | |||||
Stock-based compensation expense | 1 | 1 | 1 | ||
Unrecognized stock-based compensation expense | $ 1 | $ 1 | $ 1 | ||
Cash Awards | |||||
Share Based Employee Compensation [Line Items] | |||||
Granted stock options, fair value | $ 1 | $ 1 | |||
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 | |||
Performance adjustment | 1,000,000 | ||||
Restricted Stock Units | |||||
Share Based Employee Compensation [Line Items] | |||||
Granted stock options, fair value | $ 3.58 | $ 4.01 | |||
Average vesting period | 3 years | 3 years | |||
Performance Stock Units ("PSUs") | |||||
Share Based Employee Compensation [Line Items] | |||||
Granted stock options, fair value | $ 3.58 | $ 4.01 | |||
Average vesting period | 3 years | 3 years | |||
Vesting percentage | 33.33% | 25.00% | |||
Performance Stock Units granted in 2016 [Member] | |||||
Share Based Employee Compensation [Line Items] | |||||
Performance adjustment | 9,000,000 | ||||
Performance Stock Units granted in 2017 and 2018 [Member] | |||||
Share Based Employee Compensation [Line Items] | |||||
Stock-based compensation expense | $ 7 | $ 7 | |||
Black-Scholes Model | Stock Appreciation Rights (SARs) | |||||
Share Based Employee Compensation [Line Items] | |||||
Granted, shares subject to option | 0 | 0 | 0 | ||
Omnibus Incentive Plan | |||||
Share Based Employee Compensation [Line Items] | |||||
Equity awards, total amount of shares authorized to be outstanding | 16,000,000 | ||||
Equity awards, amount of shares authorized to grant | 25,000,000 | ||||
Stock-based compensation expense | $ 35 | $ 30 | $ 23 | ||
Two Thousand And Eighteen Omnibus Incentive Plan [Member] | |||||
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 | 20,000,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Cash Award Activity (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Performance Based Cash Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 8 | 4 |
Granted, number of awards | 9 | 4 |
Performance adjustment | 1 | |
Forfeited, number of awards | (1) | |
Balance as of December 31, number of awards | 17 | 8 |
Time Based Cash Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 18 | 16 |
Granted, number of awards | 17 | 13 |
Vested, number of awards | (10) | (9) |
Forfeited, number of awards | (1) | (2) |
Balance as of December 31, number of awards | 24 | 18 |
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, 2018 | Dec. 31, 2017 | |
Stock-Based Compensation [Abstract] | ||
Beginning balance, shares subject to option | 1,580 | 1,814 |
Granted, shares subject to option | 0 | 0 |
Exercised, shares subject to option | (108) | (8) |
Expired and forfeited, shares subject to option | (354) | (226) |
Ending balance, shares subject to option | 1,118 | 1,580 |
Beginning balance, weighted-average exercise price | $ 11.38 | $ 11.83 |
Exercisable as of December 31, shares subject to option | 1,118 | |
Granted, weighted-average exercise price | $ 0 | 0 |
Exercised, weighted-average exercise price | 2.37 | 2.46 |
Expired and forfeited, weighted-average exercise price | 12.88 | 15.32 |
Ending balance, weighted-average exercise price | 11.77 | $ 11.38 |
Exercisable as of December 31, weighted-average exercise price | $ 11.77 |
Information about Stock Options
Information about Stock Options Outstanding (Detail) shares in Thousands | 12 Months Ended | |
Dec. 31, 2018$ / sharesshares | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Outstanding, shares | shares | 1,118 | |
Outstanding, average exercise price | $ 11.77 | |
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 | $ 2.46 | |
Outstanding, shares | shares | 200 | [1] |
Outstanding, average life (years) | 1 month 13 days | [1],[2] |
Outstanding, average exercise price | $ 2.46 | [1] |
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 | 65 | |
Outstanding, average life (years) | 10 months 10 days | [2] |
Outstanding, average exercise price | $ 8.76 | |
Exercise Price Range, $ 14.18 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower limit | $ 14.18 | |
Outstanding, shares | shares | 840 | |
Outstanding, average life (years) | 1 year 1 month 10 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 | |
Outstanding, shares | shares | 13 | |
Outstanding, average life (years) | 1 year 5 months 1 day | [2] |
Outstanding, average exercise price | $ 14.92 | |
[1] | Shares for total options outstanding and exercisable each have an aggregate intrinsic value of less than $1 million. | |
[2] | Average contractual life remaining in years. |
Information about Stock Optio_2
Information about Stock Options Outstanding (Parenthetical) (Detail) | Dec. 31, 2018USD ($) |
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, 2018 | Dec. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, shares subject to option | 1,580 | 1,814 | |
Exercised, shares subject to option | (108) | (8) | |
Terminated, shares subject to option | (354) | (226) | |
Ending balance, shares subject to option | 1,118 | 1,580 | |
Genworth MI Canada Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, shares subject to option | 825 | 957 | |
Granted, shares subject to option | 57 | 70 | |
Performance adjustment | 0 | 0 | |
Exercised, shares subject to option | (230) | (192) | |
Terminated, shares subject to option | (4) | (10) | |
Ending balance, shares subject to option | 648 | 825 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance as of January 1, number of awards | 3,651 | 3,253 | |
Granted, number of awards | 739 | 1,414 | |
Exercised, number of awards | (1,881) | (918) | |
Terminated, number of awards | (153) | (98) | |
Balance as of December 31, number of awards | 2,356 | 3,651 | |
Balance as of January 1, weighted-average grant date fair value | $ 5.14 | $ 6.19 | |
Granted, weighted-average grant date fair value | 3.58 | 4.01 | |
Exercised, weighted-average grant date fair value | 5.84 | 6.65 | |
Terminated, weighted-average grant date fair value | 4.56 | 8.61 | |
Balance as of December 31, weighted-average grant date fair value | $ 4.14 | $ 5.14 | |
Performance Stock Units ("PSUs") | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance as of January 1, number of awards | 4,584 | 3,436 | |
Granted, number of awards | 739 | 1,414 | |
Performance adjustment | [1] | 236 | |
Terminated, number of awards | (629) | (266) | |
Balance as of December 31, number of awards | 4,930 | 4,584 | |
Balance as of January 1, weighted-average grant date fair value | $ 3.65 | $ 4.41 | |
Granted, weighted-average grant date fair value | 3.58 | 4.01 | |
Performance adjustment, weighted-average grant date fair value | [1] | 4.01 | |
Terminated, weighted-average grant date fair value | 6.45 | 15.33 | |
Balance as of December 31, weighted-average grant date fair value | $ 3.30 | $ 3.65 | |
Deferred Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance as of January 1, number of awards | 1,259 | 1,164 | |
Granted, number of awards | 278 | 295 | |
Exercised, number of awards | (271) | (200) | |
Balance as of December 31, number of awards | 1,266 | 1,259 | |
Balance as of January 1, weighted-average grant date fair value | $ 5.70 | $ 6.72 | |
Granted, weighted-average grant date fair value | 2.54 | 2.67 | |
Exercised, weighted-average grant date fair value | 6.98 | 7.25 | |
Balance as of December 31, weighted-average grant date fair value | $ 4.76 | $ 5.70 | |
Deferred Stock Units | Genworth MI Canada Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance as of January 1, number of awards | 74 | 64 | |
Granted, number of awards | 11 | 10 | |
Performance adjustment | 0 | 0 | |
Exercised, number of awards | (4) | 0 | |
Terminated, number of awards | (1) | 0 | |
Balance as of December 31, number of awards | 80 | 74 | |
Stock Appreciation Rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance as of January 1, number of awards | 10,301 | 10,840 | |
Exercised, number of awards | (142) | ||
Terminated, number of awards | (1,532) | (539) | |
Balance as of December 31, number of awards | 8,627 | 10,301 | |
Balance as of January 1, weighted-average grant date fair value | $ 3.45 | $ 3.54 | |
Exercised, weighted-average grant date fair value | 1.31 | ||
Terminated, weighted-average grant date fair value | 3.84 | 5.21 | |
Balance as of December 31, weighted-average grant date fair value | $ 3.42 | $ 3.45 | |
Restricted Stock Units and Performance Stock Unit Awards | Genworth MI Canada Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance as of January 1, number of awards | 219 | 235 | |
Granted, number of awards | 85 | 83 | |
Performance adjustment | 6 | 14 | |
Exercised, number of awards | (65) | (92) | |
Terminated, number of awards | (14) | (21) | |
Balance as of December 31, number of awards | 231 | 219 | |
Executive Deferred Stock Units | Genworth MI Canada Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance as of January 1, number of awards | 47 | 45 | |
Granted, number of awards | 4 | 2 | |
Performance adjustment | 0 | 0 | |
Exercised, number of awards | (24) | 0 | |
Terminated, number of awards | (1) | 0 | |
Balance as of December 31, number of awards | 26 | 47 | |
Long-term Incentive Plan Shares subject to option | Genworth Australia | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance as of January 1, number of awards | 1,487 | 920 | |
Granted, number of awards | 709 | 721 | |
Exercised, number of awards | (34) | 0 | |
Terminated, number of awards | (335) | (154) | |
Balance as of December 31, number of awards | 1,827 | 1,487 | |
Restricted Stock | Genworth Australia | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance as of January 1, number of awards | 868 | 1,276 | |
Granted, number of awards | 198 | 382 | |
Exercised, number of awards | (523) | (633) | |
Terminated, number of awards | (116) | (157) | |
Balance as of December 31, number of awards | 427 | 868 | |
[1] | The performance adjustment relates to additional awards expected to be earned through the achievement of certain performance metrics. |
Fair Value Financial Instrument
Fair Value Financial Instruments Not Required to Be Carried at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | $ 6,687 | $ 6,341 | |
Restricted commercial mortgage loans | 62 | 107 | |
Other invested assets | 1,188 | 1,813 | |
Liabilities: | |||
Long-term borrowings | 4,025 | 4,224 | |
Non-recourse funding obligations | 311 | 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 | |
Liabilities: | |||
Long-term borrowings | [2] | 0 | 0 |
Non-recourse funding obligations | [2] | 0 | 0 |
Borrowings related to securitization entities | [1] | 0 | |
Investment contracts | 0 | 0 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 0 | 0 | |
Restricted commercial mortgage loans | [1] | 0 | 0 |
Other invested assets | 0 | 0 | |
Liabilities: | |||
Long-term borrowings | [2] | 3,434 | 3,566 |
Non-recourse funding obligations | [2] | 0 | 0 |
Borrowings related to securitization entities | [1] | 41 | |
Investment contracts | 0 | 5 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 6,737 | 6,573 | |
Restricted commercial mortgage loans | [1] | 66 | 116 |
Other invested assets | 248 | 299 | |
Liabilities: | |||
Long-term borrowings | [2] | 143 | 159 |
Non-recourse funding obligations | [2] | 215 | 201 |
Borrowings related to securitization entities | [1] | 0 | |
Investment contracts | 13,052 | 15,118 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Carrying value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 6,687 | 6,341 | |
Restricted commercial mortgage loans | [1] | 62 | 107 |
Other invested assets | 248 | 277 | |
Liabilities: | |||
Long-term borrowings | [2] | 4,025 | 4,224 |
Non-recourse funding obligations | [2] | 311 | 310 |
Borrowings related to securitization entities | [1] | 40 | |
Investment contracts | 13,105 | 14,700 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 6,737 | 6,573 | |
Restricted commercial mortgage loans | [1] | 66 | 116 |
Other invested assets | 248 | 299 | |
Liabilities: | |||
Long-term borrowings | [2] | 3,577 | 3,725 |
Non-recourse funding obligations | [2] | 215 | 201 |
Borrowings related to securitization entities | [1] | 41 | |
Investment contracts | 13,052 | 15,123 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Notional amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | [3] | 0 | 0 |
Restricted commercial mortgage loans | [1],[3] | 0 | 0 |
Other invested assets | [3] | 0 | 0 |
Liabilities: | |||
Long-term borrowings | [2],[3] | 0 | 0 |
Non-recourse funding obligations | [2],[3] | 0 | 0 |
Borrowings related to securitization entities | [1],[3] | 0 | |
Investment contracts | [3] | 0 | 0 |
Commitments to fund limited partnerships | 539 | 317 | |
Commitments to fund bank loan investments | 33 | 18 | |
Ordinary course of business lending commitments | $ 73 | $ 168 | |
[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 Instr_3
Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 59,661 | $ 62,525 |
GMWB non-performance risk impact | $ 64 | $ 63 |
Period end valuation | 0 | 0 |
Fixed maturity securities | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 2,393 | $ 2,233 |
Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 28,762 | 28,636 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 11,837 | 12,611 |
Level 2 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 55,785 | 58,575 |
Level 2 | Fixed maturity securities | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,393 | 2,233 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 26,764 | 26,484 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 10,305 | 11,195 |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | ||
Fair Value of Financial Instruments [Line Items] | ||
Percentage of available for sale debt securities | 91.00% | |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 2,378 | |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 25,702 | |
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 | 9,759 | |
Level 2 | Fixed maturity securities | Internal models | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 15 | |
Level 2 | Fixed maturity securities | Internal models | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 1,062 | |
Level 2 | Fixed maturity securities | Internal models | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 546 | |
Level 3 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 3,876 | 3,950 |
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 | 1,998 | 2,152 |
Level 3 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 1,532 | $ 1,416 |
Level 3 | Fixed maturity securities | Internal models | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 3,487 | |
Level 3 | Fixed maturity securities | Broker Quotes | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 389 |
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, 2018 | Dec. 31, 2017 | |
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 59,661 | $ 62,525 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 4,631 | 5,548 |
Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,552 | 2,926 |
Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,393 | 2,233 |
Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 28,762 | 28,636 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 11,837 | 12,611 |
Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,044 | 4,057 |
Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,016 | 3,446 |
Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,426 | 3,068 |
Level 2 | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 55,785 | 58,575 |
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 | 4,631 | 5,547 |
Level 2 | Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,501 | 2,889 |
Level 2 | Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,393 | 2,233 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 26,764 | 26,484 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 10,305 | 11,195 |
Level 2 | Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,009 | 3,980 |
Level 2 | Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,921 | 3,416 |
Level 2 | Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,261 | $ 2,831 |
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 | $ 4,631 | |
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 | $ 2,501 | |
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 | $ 2,378 | |
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 | $ 25,702 | |
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 | $ 9,759 | |
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 | $ 3,009 | |
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 | $ 2,921 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model | |
Significant inputs | Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 3,261 | |
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, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | $ 59,661 | $ 62,525 | |
Available-for-sale equity securities | 655 | 820 | |
Derivative assets, fair value | 198 | 290 | |
Limited partnerships | 318 | ||
Total other invested assets | 1,188 | 1,813 | |
Separate account assets | 5,859 | 7,230 | |
Total assets | 66,706 | 72,035 | |
Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Available-for-sale equity securities | [1] | 0 | |
Limited partnerships | [1] | 318 | |
Separate account assets | [1] | 0 | |
Total assets | [1] | 318 | |
Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 178 | 276 | |
Securities lending collateral | 103 | 268 | |
Short-term investments | 230 | 902 | |
Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | |
Securities lending collateral | [1] | 0 | |
Short-term investments | [1] | 0 | |
Fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 248 | 299 | |
Fair value | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 511 | 1,446 | |
Fair value | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | [1] | 318 | |
Interest rate swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 42 | 74 | |
Interest rate swaps | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | |
Interest rate swaps in a foreign currency | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 74 | 105 | |
Interest rate swaps in a foreign currency | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | |
Foreign currency swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 6 | 12 | |
Foreign currency swaps | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | |
Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 39 | 80 | |
Equity index options | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | |
Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 10 | 5 | |
Other foreign currency contracts | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | |
GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [2] | 20 | 14 |
GMWB embedded derivatives | Reinsurance recoverable | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1],[2] | 0 | |
Interest rate caps and floors | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 7 | ||
Interest rate caps and floors | Other invested assets | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | |
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 | 4,631 | 5,548 | |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 2,552 | 2,926 | |
Fixed maturity securities | State and Political Subdivisions | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 2,393 | 2,233 | |
Fixed maturity securities | Non-U.S. government | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 28,762 | 28,636 | |
Fixed maturity securities | U.S. corporate | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 4,675 | 4,998 | |
Fixed maturity securities | U.S. corporate | Utilities | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 2,419 | 2,458 | |
Fixed maturity securities | U.S. corporate | Energy | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 6,822 | 6,528 | |
Fixed maturity securities | U.S. corporate | Finance and insurance | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 5,048 | 4,831 | |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 2,855 | 2,845 | |
Fixed maturity securities | U.S. corporate | Technology and communications | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 1,238 | 1,346 | |
Fixed maturity securities | U.S. corporate | Industrial | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 2,391 | 2,355 | |
Fixed maturity securities | U.S. corporate | Capital goods | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 1,597 | 1,605 | |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 1,320 | 1,291 | |
Fixed maturity securities | U.S. corporate | Transportation | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 397 | 379 | |
Fixed maturity securities | U.S. corporate | Other | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 11,837 | 12,611 | |
Fixed maturity securities | Non-U.S. corporate | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 1,041 | 1,017 | |
Fixed maturity securities | Non-U.S. corporate | Utilities | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 1,369 | 1,490 | |
Fixed maturity securities | Non-U.S. corporate | Energy | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 2,423 | 2,735 | |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 739 | 712 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,165 | 982 | |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 945 | 1,044 | |
Fixed maturity securities | Non-U.S. corporate | Industrial | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 615 | 645 | |
Fixed maturity securities | Non-U.S. corporate | Capital goods | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 520 | 540 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 720 | 721 | |
Fixed maturity securities | Non-U.S. corporate | Transportation | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
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 | 2,300 | 2,725 | |
Fixed maturity securities | Non-U.S. corporate | Other | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Residential mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,044 | 4,057 | |
Fixed maturity securities | Residential mortgage-backed | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Commercial mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,016 | 3,446 | |
Fixed maturity securities | Commercial mortgage-backed | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Fixed maturity securities | Other asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,426 | 3,068 | |
Fixed maturity securities | Other asset-backed | Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [1] | 0 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Available-for-sale equity securities | 533 | 696 | |
Limited partnerships | 0 | ||
Total other invested assets | 0 | 0 | |
Separate account assets | 5,859 | 7,230 | |
Total assets | 6,392 | 8,033 | |
Level 1 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Securities lending collateral | 0 | 0 | |
Short-term investments | 0 | 107 | |
Level 1 | Fair value | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 0 | 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 | Interest rate swaps in a foreign currency | 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 | Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 1 | GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [2] | 0 | 0 |
Level 1 | Interest rate caps and floors | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 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 | 55,785 | 58,575 | |
Available-for-sale equity securities | 64 | 80 | |
Limited partnerships | 0 | ||
Total other invested assets | 0 | 0 | |
Separate account assets | 0 | 0 | |
Total assets | 56,321 | 59,914 | |
Level 2 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 139 | 196 | |
Securities lending collateral | 103 | 268 | |
Short-term investments | 230 | 795 | |
Level 2 | Fair value | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 472 | 1,259 | |
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 | 42 | 74 | |
Level 2 | Interest rate swaps in a foreign currency | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 74 | 105 | |
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 | 6 | 12 | |
Level 2 | Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 2 | Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 10 | 5 | |
Level 2 | GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [2] | 0 | 0 |
Level 2 | Interest rate caps and floors | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 7 | ||
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 | 4,631 | 5,547 | |
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 | 2,501 | 2,889 | |
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 | 2,393 | 2,233 | |
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 | 26,764 | 26,484 | |
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 | 4,032 | 4,424 | |
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 | 2,298 | 2,311 | |
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 | 6,288 | 5,902 | |
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 | 4,975 | 4,750 | |
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 | 2,805 | 2,772 | |
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 | 1,199 | 1,307 | |
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 | 2,299 | 2,234 | |
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 | 1,386 | 1,343 | |
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 | 1,263 | 1,231 | |
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 | 219 | 210 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 10,305 | 11,195 | |
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 | 637 | 674 | |
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 | 1,152 | 1,314 | |
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 | 2,252 | 2,574 | |
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 | 633 | 588 | |
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 | 1,139 | 953 | |
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 | 884 | 928 | |
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 | 442 | 454 | |
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 | 398 | 486 | |
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 | 549 | 551 | |
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 | 2,219 | 2,673 | |
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 | 3,009 | 3,980 | |
Level 2 | Fixed maturity securities | Commercial mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,921 | 3,416 | |
Level 2 | Fixed maturity securities | Other asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,261 | 2,831 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,876 | 3,950 | |
Available-for-sale equity securities | 58 | 44 | |
Limited partnerships | 0 | ||
Total other invested assets | 248 | 299 | |
Separate account assets | 0 | 0 | |
Total assets | 3,993 | 4,088 | |
Level 3 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 39 | 80 | |
Securities lending collateral | 0 | 0 | |
Short-term investments | 0 | 0 | |
Level 3 | Fair value | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 39 | 80 | |
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 | Interest rate swaps in a foreign currency | 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 | 39 | 80 | |
Level 3 | Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 3 | GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [2] | 20 | 14 |
Level 3 | Interest rate caps and floors | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | ||
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 | 0 | 1 | |
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 | 51 | 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 | 1,998 | 2,152 | |
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 | 643 | 574 | |
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 | 121 | 147 | |
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 | 534 | 626 | |
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 | 73 | 81 | |
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 | 50 | 73 | |
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 | 39 | |
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 | 92 | 121 | |
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 | 211 | 262 | |
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 | 57 | 60 | |
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 | 178 | 169 | |
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 | 1,532 | 1,416 | |
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 | 404 | 343 | |
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 | 217 | 176 | |
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 | 171 | 161 | |
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 | 106 | 124 | |
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 | 26 | 29 | |
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 | 61 | 116 | |
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 | 173 | 191 | |
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 | 122 | 54 | |
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 | 171 | 170 | |
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 | 81 | 52 | |
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 | 35 | 77 | |
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 | 95 | 30 | |
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 | $ 165 | $ 237 | |
[1] | Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. | ||
[2] | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Assets Measured at Fair Value o
Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | $ 4,088 | $ 4,570 | $ 5,501 | ||||
Total realized and unrealized gains (losses), Included in net income | (24) | 89 | (26) | ||||
Total realized and unrealized gains (losses), Included in OCI | (240) | 94 | 40 | ||||
Purchases | 870 | 630 | 823 | ||||
Sales | (66) | (277) | (214) | ||||
Issuances | 1 | 2 | 2 | ||||
Settlements | (601) | (616) | (515) | ||||
Transfer into Level 3 | 466 | [1] | 223 | [1] | 461 | [2] | |
Transfer out of Level 3 | (501) | [1] | (627) | [1] | (1,502) | [2] | |
Ending balance | 3,993 | 4,088 | 4,570 | ||||
Total gains (losses) included in net income attributable to assets still held | (12) | 51 | 17 | ||||
Other invested assets | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 80 | 75 | 34 | ||||
Total realized and unrealized gains (losses), Included in net income | (34) | 54 | 9 | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | ||||
Purchases | 74 | 72 | 78 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (81) | (121) | (46) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | |
Ending balance | 39 | 80 | 75 | ||||
Total gains (losses) included in net income attributable to assets still held | (26) | 34 | 1 | ||||
Other invested assets | Derivative assets | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 80 | 75 | 34 | ||||
Total realized and unrealized gains (losses), Included in net income | (34) | 54 | 9 | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | ||||
Purchases | 74 | 72 | 78 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (81) | (121) | (46) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | |
Ending balance | 39 | 80 | 75 | ||||
Total gains (losses) included in net income attributable to assets still held | (26) | 34 | 1 | ||||
Other invested assets | Derivative assets | Equity index options | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 80 | 72 | 30 | ||||
Total realized and unrealized gains (losses), Included in net income | (34) | 57 | 10 | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | ||||
Purchases | 74 | 72 | 76 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (81) | (121) | (44) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | |
Ending balance | 39 | 80 | 72 | ||||
Total gains (losses) included in net income attributable to assets still held | (26) | 36 | 2 | ||||
Other invested assets | Derivative assets | Other foreign currency contracts | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 0 | 3 | 3 | ||||
Total realized and unrealized gains (losses), Included in net income | (3) | (1) | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | |||||
Purchases | 0 | 2 | |||||
Sales | 0 | 0 | |||||
Issuances | 0 | 0 | |||||
Settlements | 0 | (1) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | |||
Transfer out of Level 3 | 0 | [1] | 0 | [2] | |||
Ending balance | 0 | 3 | |||||
Total gains (losses) included in net income attributable to assets still held | (2) | (1) | |||||
Other invested assets | Derivative assets | Credit default swaps | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 0 | 1 | |||||
Total realized and unrealized gains (losses), Included in net income | 0 | ||||||
Total realized and unrealized gains (losses), Included in OCI | 0 | ||||||
Purchases | 0 | ||||||
Sales | 0 | ||||||
Issuances | 0 | ||||||
Settlements | (1) | ||||||
Transfer into Level 3 | [2] | 0 | |||||
Transfer out of Level 3 | [2] | 0 | |||||
Ending balance | 0 | ||||||
Total gains (losses) included in net income attributable to assets still held | 0 | ||||||
Restricted other invested assets related to securitization entities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | [3] | 0 | 131 | 232 | |||
Total realized and unrealized gains (losses), Included in net income | [3] | 0 | (55) | ||||
Total realized and unrealized gains (losses), Included in OCI | [3] | 0 | 0 | ||||
Purchases | [3] | 0 | 0 | ||||
Sales | [3] | (131) | 0 | ||||
Issuances | [3] | 0 | 0 | ||||
Settlements | [3] | 0 | (46) | ||||
Transfer into Level 3 | [3] | 0 | [1] | 0 | [2] | ||
Transfer out of Level 3 | [3] | 0 | [1] | 0 | [2] | ||
Ending balance | [3] | 0 | 131 | ||||
Total gains (losses) included in net income attributable to assets still held | [3] | 0 | 9 | ||||
Reinsurance recoverable | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | [4] | 14 | 16 | 17 | |||
Total realized and unrealized gains (losses), Included in net income | [4] | 5 | (4) | (3) | |||
Total realized and unrealized gains (losses), Included in OCI | [4] | 0 | 0 | 0 | |||
Purchases | [4] | 0 | 0 | 0 | |||
Sales | [4] | 0 | 0 | 0 | |||
Issuances | [4] | 1 | 2 | 2 | |||
Settlements | [4] | 0 | 0 | 0 | |||
Transfer into Level 3 | [4] | 0 | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | [4] | 0 | 0 | [1] | 0 | [2] | |
Ending balance | [4] | 20 | 14 | 16 | |||
Total gains (losses) included in net income attributable to assets still held | [4] | 5 | [1] | (4) | (3) | ||
Fixed maturity securities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 3,950 | 4,301 | 5,180 | ||||
Total realized and unrealized gains (losses), Included in net income | 5 | 39 | 23 | ||||
Total realized and unrealized gains (losses), Included in OCI | (240) | 94 | 40 | ||||
Purchases | 778 | 557 | 732 | ||||
Sales | (62) | (145) | (210) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (520) | (495) | (423) | ||||
Transfer into Level 3 | 466 | [1] | 223 | [1] | 461 | [2] | |
Transfer out of Level 3 | (501) | [1] | (624) | [1] | (1,502) | [2] | |
Ending balance | 3,876 | 3,950 | 4,301 | ||||
Total gains (losses) included in net income attributable to assets still held | 9 | 21 | 10 | ||||
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 1 | 2 | 3 | ||||
Total realized and unrealized gains (losses), Included in net income | 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 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | |
Ending balance | 0 | 1 | 2 | ||||
Total gains (losses) included in net income 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 | 37 | 35 | ||||
Total realized and unrealized gains (losses), Included in net income | 3 | 3 | 2 | ||||
Total realized and unrealized gains (losses), Included in OCI | 4 | (3) | 0 | ||||
Purchases | 0 | 0 | 7 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | ||||
Transfer into Level 3 | 18 | [1] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | (11) | [1] | 0 | [1] | (7) | [2] | |
Ending balance | 51 | 37 | 37 | ||||
Total gains (losses) included in net income attributable to assets still held | 3 | 3 | 2 | ||||
Fixed maturity securities | U.S. corporate | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 2,152 | 2,487 | 2,329 | ||||
Total realized and unrealized gains (losses), Included in net income | (1) | 41 | 33 | ||||
Total realized and unrealized gains (losses), Included in OCI | (160) | 51 | 4 | ||||
Purchases | 290 | 232 | 439 | ||||
Sales | (27) | (67) | (53) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (303) | (342) | (208) | ||||
Transfer into Level 3 | 165 | [1] | 76 | [1] | 204 | [2] | |
Transfer out of Level 3 | (118) | [1] | (326) | [1] | (261) | [2] | |
Ending balance | 1,998 | 2,152 | 2,487 | ||||
Total gains (losses) included in net income attributable to assets still held | 1 | 15 | 22 | ||||
Fixed maturity securities | U.S. corporate | Utilities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 574 | 576 | 449 | ||||
Total realized and unrealized gains (losses), Included in net income | (1) | 0 | 1 | ||||
Total realized and unrealized gains (losses), Included in OCI | (40) | 24 | 1 | ||||
Purchases | 111 | 76 | 149 | ||||
Sales | (12) | 0 | (6) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (6) | (11) | (21) | ||||
Transfer into Level 3 | 55 | [1] | 30 | [1] | 73 | [2] | |
Transfer out of Level 3 | (38) | [1] | (121) | [1] | (70) | [2] | |
Ending balance | 643 | 574 | 576 | ||||
Total gains (losses) included in net income 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 | 147 | 210 | 253 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | (7) | 5 | (2) | ||||
Purchases | 22 | 10 | 10 | ||||
Sales | 0 | (31) | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (34) | (32) | (11) | ||||
Transfer into Level 3 | 0 | [1] | 1 | [1] | 7 | [2] | |
Transfer out of Level 3 | (7) | [1] | (16) | [1] | (47) | [2] | |
Ending balance | 121 | 147 | 210 | ||||
Total gains (losses) included in net income attributable to assets still held | 0 | (1) | 0 | ||||
Fixed maturity securities | U.S. corporate | Finance and insurance | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 626 | 786 | 715 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 20 | 16 | ||||
Total realized and unrealized gains (losses), Included in OCI | (77) | 5 | 9 | ||||
Purchases | 84 | 79 | 69 | ||||
Sales | 0 | (31) | (14) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (122) | (206) | (63) | ||||
Transfer into Level 3 | 49 | [1] | 8 | [1] | 72 | [2] | |
Transfer out of Level 3 | (26) | [1] | (35) | [1] | (18) | [2] | |
Ending balance | 534 | 626 | 786 | ||||
Total gains (losses) included in net income attributable to assets still held | 1 | 11 | 15 | ||||
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 81 | 121 | 109 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | (3) | 2 | 3 | ||||
Purchases | 0 | 4 | 30 | ||||
Sales | 0 | 0 | (18) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (5) | (8) | (3) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | (38) | [1] | 0 | [2] | |
Ending balance | 73 | 81 | 121 | ||||
Total gains (losses) included in net income 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 | 73 | 54 | 35 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 3 | 3 | ||||
Total realized and unrealized gains (losses), Included in OCI | (6) | 7 | (3) | ||||
Purchases | 20 | 31 | 30 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (60) | (1) | 0 | ||||
Transfer into Level 3 | 31 | [1] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | (8) | [1] | (21) | [1] | (11) | [2] | |
Ending balance | 50 | 73 | 54 | ||||
Total gains (losses) included in net income attributable to assets still held | 0 | 3 | 3 | ||||
Fixed maturity securities | U.S. corporate | Industrial | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 39 | 48 | 61 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 1 | 5 | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | (1) | 2 | ||||
Purchases | 0 | 13 | 0 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | 0 | (8) | (32) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [1] | 12 | [2] | |
Transfer out of Level 3 | 0 | [1] | (14) | [1] | 0 | [2] | |
Ending balance | 39 | 39 | 48 | ||||
Total gains (losses) included in net income 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 | 121 | 152 | 180 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 1 | 1 | ||||
Total realized and unrealized gains (losses), Included in OCI | (10) | 3 | (2) | ||||
Purchases | 33 | 7 | 30 | ||||
Sales | 0 | 0 | (10) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (45) | (5) | 0 | ||||
Transfer into Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | (7) | [1] | (37) | [1] | (47) | [2] | |
Ending balance | 92 | 121 | 152 | ||||
Total gains (losses) included in net income attributable to assets still held | 0 | 1 | 1 | ||||
Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 262 | 258 | 239 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 4 | ||||
Total realized and unrealized gains (losses), Included in OCI | (12) | 9 | (1) | ||||
Purchases | 17 | 12 | 68 | ||||
Sales | (5) | 0 | (5) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (19) | (15) | (44) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [1] | 19 | [2] | |
Transfer out of Level 3 | (32) | [1] | (2) | [1] | (22) | [2] | |
Ending balance | 211 | 262 | 258 | ||||
Total gains (losses) included in net income 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 | 60 | 139 | 106 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 16 | 2 | ||||
Total realized and unrealized gains (losses), Included in OCI | (2) | (5) | (1) | ||||
Purchases | 3 | 0 | 53 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (4) | (48) | (26) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [1] | 5 | [2] | |
Transfer out of Level 3 | 0 | [1] | (42) | [1] | 0 | [2] | |
Ending balance | 57 | 60 | 139 | ||||
Total gains (losses) included in net income attributable to assets still held | 0 | 1 | 2 | ||||
Fixed maturity securities | U.S. corporate | Other | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 169 | 143 | 182 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 1 | ||||
Total realized and unrealized gains (losses), Included in OCI | (3) | 2 | (2) | ||||
Purchases | 0 | 0 | 0 | ||||
Sales | (10) | (5) | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (8) | (8) | (8) | ||||
Transfer into Level 3 | 30 | [1] | 37 | [1] | 16 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [1] | (46) | [2] | |
Ending balance | 178 | 169 | 143 | ||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 1 | ||||
Fixed maturity securities | Non-U.S. corporate | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 1,416 | 1,533 | 1,545 | ||||
Total realized and unrealized gains (losses), Included in net income | 3 | 5 | 5 | ||||
Total realized and unrealized gains (losses), Included in OCI | (77) | 31 | 39 | ||||
Purchases | 247 | 126 | 195 | ||||
Sales | (19) | (34) | (86) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (123) | (126) | (170) | ||||
Transfer into Level 3 | 184 | [1] | 52 | [1] | 132 | [2] | |
Transfer out of Level 3 | (99) | [1] | (171) | [1] | (127) | [2] | |
Ending balance | 1,532 | 1,416 | 1,533 | ||||
Total gains (losses) included in net income attributable to assets still held | 5 | 3 | 2 | ||||
Fixed maturity securities | Non-U.S. corporate | Utilities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 343 | 386 | 287 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | (19) | 3 | (7) | ||||
Purchases | 52 | 30 | 126 | ||||
Sales | 0 | 0 | (5) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (20) | 0 | (51) | ||||
Transfer into Level 3 | 69 | [1] | 0 | [1] | 46 | [2] | |
Transfer out of Level 3 | (21) | [1] | (76) | [1] | (10) | [2] | |
Ending balance | 404 | 343 | 386 | ||||
Total gains (losses) included in net income 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 | 176 | 206 | 252 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | (9) | 5 | 30 | ||||
Purchases | 53 | 0 | 8 | ||||
Sales | 0 | (1) | (27) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (29) | (1) | (31) | ||||
Transfer into Level 3 | 26 | [1] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | (33) | [1] | (26) | [2] | |
Ending balance | 217 | 176 | 206 | ||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | ||||
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 161 | 182 | 191 | ||||
Total realized and unrealized gains (losses), Included in net income | 4 | 5 | 3 | ||||
Total realized and unrealized gains (losses), Included in OCI | (13) | 10 | (2) | ||||
Purchases | 6 | 5 | 11 | ||||
Sales | 0 | 0 | (1) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (2) | (32) | 0 | ||||
Transfer into Level 3 | 16 | [1] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | (1) | [1] | (9) | [1] | (20) | [2] | |
Ending balance | 171 | 161 | 182 | ||||
Total gains (losses) included in net income attributable to assets still held | 4 | 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 | 124 | 139 | 169 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 2 | ||||
Total realized and unrealized gains (losses), Included in OCI | (5) | 2 | 5 | ||||
Purchases | 0 | 5 | 3 | ||||
Sales | 0 | 0 | (3) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (20) | (22) | (49) | ||||
Transfer into Level 3 | 7 | [1] | 0 | [1] | 12 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | |
Ending balance | 106 | 124 | 139 | ||||
Total gains (losses) included in net income 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 | 29 | 67 | 62 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 1 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 1 | 3 | ||||
Purchases | 10 | 0 | 18 | ||||
Sales | 0 | (21) | (16) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (13) | (19) | 0 | ||||
Transfer into Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | |
Ending balance | 26 | 29 | 67 | ||||
Total gains (losses) included in net income 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 | 116 | 109 | 84 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | (5) | 3 | 4 | ||||
Purchases | 3 | 13 | 17 | ||||
Sales | 0 | 0 | (21) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (10) | 0 | 0 | ||||
Transfer into Level 3 | 0 | [1] | 14 | [1] | 25 | [2] | |
Transfer out of Level 3 | (43) | [1] | (23) | [1] | 0 | [2] | |
Ending balance | 61 | 116 | 109 | ||||
Total gains (losses) included in net income 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 | 191 | 169 | 213 | ||||
Total realized and unrealized gains (losses), Included in net income | 1 | 0 | 1 | ||||
Total realized and unrealized gains (losses), Included in OCI | (8) | 3 | 3 | ||||
Purchases | 15 | 52 | 0 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (26) | (25) | (15) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | (8) | [1] | (33) | [2] | |
Ending balance | 173 | 191 | 169 | ||||
Total gains (losses) included in net income attributable to assets still held | 1 | 0 | 1 | ||||
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 54 | 69 | 71 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | (5) | 0 | 0 | ||||
Purchases | 30 | 0 | 0 | ||||
Sales | (1) | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (3) | (17) | (2) | ||||
Transfer into Level 3 | 48 | [1] | 2 | [1] | 0 | [2] | |
Transfer out of Level 3 | (1) | [1] | 0 | [1] | 0 | [2] | |
Ending balance | 122 | 54 | 69 | ||||
Total gains (losses) included in net income 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 | 170 | 181 | 144 | ||||
Total realized and unrealized gains (losses), Included in net income | (2) | 1 | 1 | ||||
Total realized and unrealized gains (losses), Included in OCI | (9) | 2 | 0 | ||||
Purchases | 45 | 6 | 12 | ||||
Sales | (18) | (10) | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | 0 | (10) | (15) | ||||
Transfer into Level 3 | 18 | [1] | 11 | [1] | 39 | [2] | |
Transfer out of Level 3 | (33) | [1] | (11) | [1] | 0 | [2] | |
Ending balance | 171 | 170 | 181 | ||||
Total gains (losses) included in net income 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 | 52 | 25 | 72 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | (2) | (2) | ||||
Total realized and unrealized gains (losses), Included in OCI | (4) | 2 | 3 | ||||
Purchases | 33 | 15 | 0 | ||||
Sales | 0 | (2) | (13) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | (7) | ||||
Transfer into Level 3 | 0 | [1] | 25 | [1] | 10 | [2] | |
Transfer out of Level 3 | 0 | [1] | (11) | [1] | (38) | [2] | |
Ending balance | 81 | 52 | 25 | ||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | (2) | ||||
Fixed maturity securities | Residential mortgage-backed | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 77 | 43 | 116 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 1 | ||||
Purchases | 37 | 35 | 51 | ||||
Sales | 0 | 0 | (45) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (1) | (3) | (14) | ||||
Transfer into Level 3 | 14 | [1] | 26 | [1] | 22 | [2] | |
Transfer out of Level 3 | (92) | [1] | (24) | [1] | (88) | [2] | |
Ending balance | 35 | 77 | 43 | ||||
Total gains (losses) included in net income 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 | 30 | 54 | 10 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | (2) | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | (4) | 4 | (7) | ||||
Purchases | 70 | 31 | 24 | ||||
Sales | 0 | (9) | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | (4) | ||||
Transfer into Level 3 | 31 | [1] | 0 | [1] | 37 | [2] | |
Transfer out of Level 3 | (32) | [1] | (48) | [1] | (6) | [2] | |
Ending balance | 95 | 30 | 54 | ||||
Total gains (losses) included in net income 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 | 237 | 145 | 1,142 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | (8) | (17) | ||||
Total realized and unrealized gains (losses), Included in OCI | (3) | 11 | 3 | ||||
Purchases | 134 | 133 | 16 | ||||
Sales | (16) | (35) | (26) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (92) | (23) | (26) | ||||
Transfer into Level 3 | 54 | [1] | 69 | [1] | 66 | [2] | |
Transfer out of Level 3 | (149) | [1] | (55) | [1] | (1,013) | [2] | |
Ending balance | 165 | 237 | 145 | ||||
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | (16) | ||||
Equity Securities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 44 | 47 | 38 | ||||
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | ||||
Purchases | 18 | 1 | 13 | ||||
Sales | (4) | (1) | (4) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | ||||
Transfer into Level 3 | 0 | [1] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | (3) | [1] | 0 | [2] | |
Ending balance | 58 | 44 | 47 | ||||
Total gains (losses) included in net income 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. | ||||||
[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. 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. | ||||||
[3] | See note 17 for additional information related to consolidated securitization entities. | ||||||
[4] | 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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair value of financial instruments [Abstract] | |||
Total realized and unrealized gains (losses) included in net income, assets | $ (24) | $ 89 | $ (26) |
Net gains (losses) included in net income attributable to assets still held, assets | (12) | 51 | 17 |
Net Investment Income | |||
Fair value of financial instruments [Abstract] | |||
Total realized and unrealized gains (losses) included in net income, assets | 8 | 26 | 44 |
Net gains (losses) included in net income attributable to assets still held, assets | 9 | 22 | 30 |
Net Investment (Gains) Losses | |||
Fair value of financial instruments [Abstract] | |||
Total realized and unrealized gains (losses) included in net income, assets | (32) | 63 | (70) |
Net gains (losses) included in net income attributable to assets still held, assets | $ (21) | $ 29 | $ (13) |
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, 2018 | Dec. 31, 2017 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | $ 906 | $ 730 | |
Fixed maturity securities available-for-sale, at fair value | 59,661 | 62,525 | |
Derivative assets, fair value | 198 | 290 | |
Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | 738 | 683 | |
Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | [1] | 337 | 250 |
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 | 389 | 419 | |
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 | 12 | 14 | |
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 | $ 3,876 | 3,950 | |
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 | $ 39 | ||
Fair value input, equity index volatility, lower limit | 6.00% | ||
Fair value input, equity index volatility, upper limit | 34.00% | ||
Fair value input, equity index volatility, weighted-average | 19.00% | ||
Level 3 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | $ 738 | 683 | |
Level 3 | Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | [1] | Stochastic cash flow model | |
Derivative liabilities, fair value | [1] | $ 337 | 250 |
Fair value, withdrawal utilization rate, lower limit | [1] | 43.00% | |
Fair value, withdrawal utilization rate, upper limit | [1] | 87.00% | |
Fair value, lapse rate, lower limit | [1] | 2.00% | |
Fair value, lapse rate, upper limit | [1] | 9.00% | |
Fair value input, credit spreads, lower limit | [1] | 0.25% | |
Fair value input, credit spreads, upper limit | [1] | 0.83% | |
Fair value input, equity index volatility, lower limit | [1] | 17.00% | |
Fair value input, equity index volatility, upper limit | [1] | 24.00% | |
Fair value, withdrawal utilization rate, weighted-average | [1] | 68.00% | |
Fair value, lapse rate, weighted-average | [1] | 3.00% | |
Fair value input, credit spreads, weighted-average | [1] | 0.69% | |
Fair value input, equity index volatility, weighted-average | [1] | 21.00% | |
Level 3 | Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Option budget method | ||
Derivative liabilities, fair value | $ 389 | 419 | |
Fair value, expected future interest credited, lower limit | 0.00% | ||
Fair value, expected future interest credited, upper limit | 3.00% | ||
Fair value, expected future interest credited, weighted-average | 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] | |||
Valuation technique | Option budget method | ||
Derivative liabilities, fair value | $ 12 | $ 14 | |
Fair value, expected future interest credited, lower limit | 3.00% | ||
Fair value, expected future interest credited, upper limit | 10.00% | ||
Fair value, expected future interest credited, weighted-average | 6.00% | ||
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 | $ 1,899 | ||
Fair value input, credit spreads, lower limit | 0.77% | ||
Fair value input, credit spreads, upper limit | 3.25% | ||
Fair value input, credit spreads, weighted-average | 1.69% | ||
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 | $ 621 | ||
Fair value input, credit spreads, lower limit | 0.83% | ||
Fair value input, credit spreads, upper limit | 3.25% | ||
Fair value input, credit spreads, weighted-average | 1.58% | ||
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 | $ 99 | ||
Fair value input, credit spreads, lower limit | 1.07% | ||
Fair value input, credit spreads, upper limit | 3.15% | ||
Fair value input, credit spreads, weighted-average | 1.92% | ||
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 | $ 528 | ||
Fair value input, credit spreads, lower limit | 0.91% | ||
Fair value input, credit spreads, upper limit | 2.86% | ||
Fair value input, credit spreads, weighted-average | 1.94% | ||
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 | $ 73 | ||
Fair value input, credit spreads, lower limit | 1.16% | ||
Fair value input, credit spreads, upper limit | 2.18% | ||
Fair value input, credit spreads, weighted-average | 1.57% | ||
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 | $ 50 | ||
Fair value input, credit spreads, lower limit | 1.15% | ||
Fair value input, credit spreads, upper limit | 3.15% | ||
Fair value input, credit spreads, weighted-average | 2.14% | ||
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 | $ 39 | ||
Fair value input, credit spreads, lower limit | 1.41% | ||
Fair value input, credit spreads, upper limit | 2.68% | ||
Fair value input, credit spreads, weighted-average | 1.95% | ||
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 | $ 92 | ||
Fair value input, credit spreads, lower limit | 1.32% | ||
Fair value input, credit spreads, upper limit | 2.89% | ||
Fair value input, credit spreads, weighted-average | 1.83% | ||
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 | $ 197 | ||
Fair value input, credit spreads, lower limit | 0.85% | ||
Fair value input, credit spreads, upper limit | 2.58% | ||
Fair value input, credit spreads, weighted-average | 1.65% | ||
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 | $ 51 | ||
Fair value input, credit spreads, lower limit | 0.77% | ||
Fair value input, credit spreads, upper limit | 2.58% | ||
Fair value input, credit spreads, weighted-average | 1.24% | ||
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 | $ 149 | ||
Fair value input, credit spreads, lower limit | 0.91% | ||
Fair value input, credit spreads, upper limit | 1.53% | ||
Fair value input, credit spreads, weighted-average | 1.04% | ||
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 | $ 1,482 | ||
Fair value input, credit spreads, lower limit | 0.77% | ||
Fair value input, credit spreads, upper limit | 3.18% | ||
Fair value input, credit spreads, weighted-average | 1.73% | ||
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 | $ 404 | ||
Fair value input, credit spreads, lower limit | 0.87% | ||
Fair value input, credit spreads, upper limit | 2.49% | ||
Fair value input, credit spreads, weighted-average | 1.55% | ||
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 | $ 197 | ||
Fair value input, credit spreads, lower limit | 1.32% | ||
Fair value input, credit spreads, upper limit | 3.18% | ||
Fair value input, credit spreads, weighted-average | 1.90% | ||
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 | $ 165 | ||
Fair value input, credit spreads, lower limit | 0.85% | ||
Fair value input, credit spreads, upper limit | 2.65% | ||
Fair value input, credit spreads, weighted-average | 1.63% | ||
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 | $ 106 | ||
Fair value input, credit spreads, lower limit | 0.77% | ||
Fair value input, credit spreads, upper limit | 2.01% | ||
Fair value input, credit spreads, weighted-average | 1.52% | ||
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 | $ 26 | ||
Fair value input, credit spreads, lower limit | 1.59% | ||
Fair value input, credit spreads, upper limit | 2.01% | ||
Fair value input, credit spreads, weighted-average | 1.90% | ||
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 | $ 61 | ||
Fair value input, credit spreads, lower limit | 1.33% | ||
Fair value input, credit spreads, upper limit | 2.18% | ||
Fair value input, credit spreads, weighted-average | 1.67% | ||
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 | $ 173 | ||
Fair value input, credit spreads, lower limit | 1.07% | ||
Fair value input, credit spreads, upper limit | 3.00% | ||
Fair value input, credit spreads, weighted-average | 1.93% | ||
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 | $ 98 | ||
Fair value input, credit spreads, lower limit | 1.05% | ||
Fair value input, credit spreads, upper limit | 2.89% | ||
Fair value input, credit spreads, weighted-average | 2.27% | ||
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 | $ 171 | ||
Fair value input, credit spreads, lower limit | 1.07% | ||
Fair value input, credit spreads, upper limit | 2.58% | ||
Fair value input, credit spreads, weighted-average | 1.59% | ||
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 | $ 81 | ||
Fair value input, credit spreads, lower limit | 1.18% | ||
Fair value input, credit spreads, upper limit | 2.65% | ||
Fair value input, credit spreads, weighted-average | 1.92% | ||
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liabilities by Class of Instrum
Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | $ 906 | $ 730 | |
Total liabilities | 906 | 730 | |
Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 168 | 47 | |
Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 102 | 25 | |
Other liabilities | Foreign currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 23 | ||
Other liabilities | Other foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 42 | 20 | |
Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 1 | 2 | |
Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 738 | 683 | |
Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | [1] | 337 | 250 |
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 | 389 | 419 | |
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 | 12 | 14 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
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 | Other foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | [1] | 0 | 0 |
Level 1 | Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities | 168 | 47 | |
Level 2 | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 168 | 47 | |
Level 2 | Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 102 | 25 | |
Level 2 | Other liabilities | Foreign currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 23 | ||
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 | 42 | 20 | |
Level 2 | Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 1 | 2 | |
Level 2 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 2 | Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | [1] | 0 | 0 |
Level 2 | Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 2 | Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities | 738 | 683 | |
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 | Other foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 3 | Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 3 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 738 | 683 | |
Level 3 | Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | [1] | 337 | 250 |
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 | 389 | 419 | |
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 | $ 12 | $ 14 | |
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liabilities Measured at Fair Va
Liabilities Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 683 | $ 670 | $ 799 | |
Total realized and unrealized (gains) losses included in net (income) | 31 | (6) | (143) | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 39 | 40 | 53 | |
Settlements | 0 | (21) | (36) | |
Transfer into Level 3 | 0 | 0 | 0 | |
Transfer out of Level 3 | (15) | 0 | (3) | |
Ending balance | 738 | 683 | 670 | |
Total (gains) losses included in net (income) attributable to liabilities still held | 33 | (4) | (60) | |
Derivative liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 0 | 14 | ||
Total realized and unrealized (gains) losses included in net (income) | (13) | |||
Total realized and unrealized (gains) losses included in OCI | 0 | |||
Purchases | 0 | |||
Sales | 0 | |||
Issuances | 2 | |||
Settlements | 0 | |||
Transfer into Level 3 | 0 | |||
Transfer out of Level 3 | (3) | |||
Ending balance | 0 | |||
Total (gains) losses included in net (income) attributable to liabilities still held | 0 | |||
Credit default swaps related to securitization entities | Derivative liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | [1] | 0 | 14 | |
Total realized and unrealized (gains) losses included in net (income) | [1] | (13) | ||
Total realized and unrealized (gains) losses included in OCI | [1] | 0 | ||
Purchases | [1] | 0 | ||
Sales | [1] | 0 | ||
Issuances | [1] | 2 | ||
Settlements | [1] | 0 | ||
Transfer into Level 3 | [1] | 0 | ||
Transfer out of Level 3 | [1] | (3) | ||
Ending balance | [1] | 0 | ||
Total (gains) losses included in net (income) attributable to liabilities still held | [1] | 0 | ||
Policyholder account balances | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 683 | 658 | 704 | |
Total realized and unrealized (gains) losses included in net (income) | 31 | (6) | (67) | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 39 | 40 | 51 | |
Settlements | 0 | (9) | (30) | |
Transfer into Level 3 | 0 | 0 | 0 | |
Transfer out of Level 3 | (15) | 0 | 0 | |
Ending balance | 738 | 683 | 658 | |
Total (gains) losses included in net (income) attributable to liabilities still held | 33 | (4) | (61) | |
Policyholder account balances | GMWB embedded derivatives | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | [2] | 250 | 303 | 352 |
Total realized and unrealized (gains) losses included in net (income) | [2] | 59 | (82) | (79) |
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] | 28 | 29 | 30 |
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] | 337 | 250 | 303 |
Total (gains) losses included in net (income) attributable to liabilities still held | [2] | 61 | (80) | (73) |
Policyholder account balances | Fixed index annuity embedded derivatives | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 419 | 344 | 342 | |
Total realized and unrealized (gains) losses included in net (income) | (15) | 84 | 22 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 10 | |
Settlements | 0 | (9) | (30) | |
Transfer into Level 3 | 0 | 0 | 0 | |
Transfer out of Level 3 | (15) | 0 | 0 | |
Ending balance | 389 | 419 | 344 | |
Total (gains) losses included in net (income) attributable to liabilities still held | (15) | 84 | 22 | |
Policyholder account balances | Indexed universal life embedded derivatives | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 14 | 11 | 10 | |
Total realized and unrealized (gains) losses included in net (income) | (13) | (8) | (10) | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 11 | 11 | 11 | |
Settlements | 0 | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | |
Ending balance | 12 | 14 | 11 | |
Total (gains) losses included in net (income) attributable to liabilities still held | (13) | (8) | (10) | |
Borrowings related to securitization entities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | [1] | $ 0 | 12 | 81 |
Total realized and unrealized (gains) losses included in net (income) | [1] | 0 | (63) | |
Total realized and unrealized (gains) losses included in OCI | [1] | 0 | 0 | |
Purchases | [1] | 0 | 0 | |
Sales | [1] | 0 | 0 | |
Issuances | [1] | 0 | 0 | |
Settlements | [1] | (12) | (6) | |
Transfer into Level 3 | [1] | 0 | 0 | |
Transfer out of Level 3 | [1] | 0 | 0 | |
Ending balance | [1] | 0 | 12 | |
Total (gains) losses included in net (income) attributable to liabilities still held | [1] | $ 0 | $ 1 | |
[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 in _2
Gains and Losses Included in Net (Income) from Liabilities Measured at Fair Value (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Total realized and unrealized (gains) losses included in net (income) loss, liabilities | $ 31 | $ (6) | $ (143) |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | 33 | (4) | (60) |
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 | 31 | (6) | (79) |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | 33 | (4) | (60) |
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 | $ 0 | $ (64) |
Variable Interest and Securit_3
Variable Interest and Securitization Entities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Investments [Line Items] | ||||
Total assets | $ 100,923 | $ 105,297 | ||
Gains (losses) related to early extinguishment of debt | 0 | 0 | $ 48 | |
Borrowings related to securitization entities | 40 | |||
GFCM LLC and interest rate of 5.7426%, maturity date of 2035 | ||||
Schedule of Investments [Line Items] | ||||
Principal amount | 0 | 40 | ||
Borrowings related to securitization entities | 40 | |||
Total securitized assets | ||||
Schedule of Investments [Line Items] | ||||
Total assets | $ 62 | $ 107 | ||
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) | $ (64) |
Assets and Liabilities Recorded
Assets and Liabilities Recorded for Consolidated Securitization Entities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||||
Restricted commercial mortgage loans | $ 62 | $ 107 | ||
Total investments | 70,114 | 73,392 | ||
Cash, cash equivalents and restricted cash | 2,177 | 2,875 | $ 2,784 | $ 5,993 |
Borrowings related to securitization entities | 40 | |||
Securitization entities | ||||
Variable Interest Entity [Line Items] | ||||
Restricted commercial mortgage loans | 62 | 107 | ||
Total investments | 62 | 107 | ||
Cash, cash equivalents and restricted cash | 1 | 1 | ||
Total assets | $ 63 | 108 | ||
Borrowings related to securitization entities | 40 | |||
Total liabilities | $ 40 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||
Net investment income | $ 3,262 | $ 3,200 | $ 3,159 | |||||||||||||||||||
Derivatives | [1] | (95) | 97 | 20 | ||||||||||||||||||
Total net investment gains (losses) | 0 | 7 | [2] | (50) | [2] | |||||||||||||||||
Total revenues | $ 2,013 | [3] | $ 2,143 | [3] | $ 2,159 | [3] | $ 2,115 | [3] | $ 1,686 | [4] | $ 2,215 | [4] | $ 2,223 | [4] | $ 2,171 | [4] | 8,430 | 8,295 | 8,369 | |||
Interest expense | 299 | 284 | 337 | |||||||||||||||||||
Income before income taxes | 448 | 729 | 320 | |||||||||||||||||||
Provision (benefit) for income taxes | 456 | 151 | (207) | 358 | ||||||||||||||||||
Net income | $ (327) | [5] | $ 210 | [5] | $ 249 | [5] | $ 165 | [5] | $ 265 | [6] | $ 175 | [6] | $ 271 | [6] | $ 216 | [6] | 297 | 927 | (67) | |||
Securitization entities | ||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||
Net investment income | 7 | 10 | 13 | |||||||||||||||||||
Derivatives | 7 | 8 | ||||||||||||||||||||
Trading securities | (57) | |||||||||||||||||||||
Borrowings related to securitization entities recorded at fair value | (1) | |||||||||||||||||||||
Total net investment gains (losses) | 7 | (50) | ||||||||||||||||||||
Other income | 64 | |||||||||||||||||||||
Total revenues | 7 | 17 | 27 | |||||||||||||||||||
Interest expense | 2 | 6 | 7 | |||||||||||||||||||
Total expenses | 2 | 6 | 7 | |||||||||||||||||||
Income before income taxes | 5 | 11 | 20 | |||||||||||||||||||
Provision (benefit) for income taxes | 1 | (6) | 7 | |||||||||||||||||||
Net income | 4 | 17 | 13 | |||||||||||||||||||
Securitization entities | Restricted commercial mortgage loans | ||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||
Net investment income | $ 7 | 9 | 10 | |||||||||||||||||||
Securitization entities | Restricted other invested assets | ||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||
Net investment income | $ 1 | $ 3 | ||||||||||||||||||||
[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] | Includes net investment losses of $114 million in the fourth quarter of 2018 primarily from our Canada Mortgage Insurance segment. These losses were primarily related to derivative losses on foreign currency swaps and forwards, and losses on preferred equity securities primarily driven by a decrease in interest rates in Canada during the fourth quarter of 2018. | |||||||||||||||||||||
[4] | 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. | |||||||||||||||||||||
[5] | In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. | |||||||||||||||||||||
[6] | 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. |
Insurance Subsidiary Financia_3
Insurance Subsidiary Financial Information and Regulatory Matters - Additional Information (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)State | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2017USD ($) | |
Statutory Accounting Practices [Line Items] | ||||
Amount of dividend our subsidiaries could pay in 2019 without obtaining regulatory approval | $ 500 | |||
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 | $ 1,600 | $ 1,200 | ||
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 | 129.00% | 121.00% | ||
Assets in excess of PMIERs requirements | $ 750 | $ 550 | ||
Genworth Mortgage Insurance Corporation (GMICO)/PMIERs Capital Credit | ||||
Statutory Accounting Practices [Line Items] | ||||
Capital credit from reinsurance transaction | $ 515 | |||
Private mortgage insurer eligibility requirements 2.0 [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Percentage of available assets to PMIERs required assets | 120.00% | |||
Assets in excess of PMIERs requirements | $ 550 | |||
Guarantees provided to third parties | ||||
Statutory Accounting Practices [Line Items] | ||||
Maximum potential amount of future obligation | 6 | 6 | ||
Mexico Guarantee | ||||
Statutory Accounting Practices [Line Items] | ||||
Maximum potential amount of future obligation | 175 | |||
Domestic subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Combined statutory capital and surplus | 5,086 | 5,548 | ||
Combined statutory net income (loss) | 1,322 | 204 | $ (320) | |
Domestic subsidiaries | Captive life reinsurance subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Combined statutory capital and surplus | 217 | 245 | ||
Combined statutory net income (loss) | 1,520 | (36) | (403) | |
Domestic subsidiaries | Life insurance | ||||
Statutory Accounting Practices [Line Items] | ||||
Impact of permitted practices on combined statutory capital and surplus | $ 0 | $ 0 | ||
Consolidated RBC ratio | 199.00% | 282.00% | ||
International insurance subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Dividends received from insurance subsidiaries | $ 316 | $ 301 | 457 | |
Combined statutory capital and surplus | 4,600 | 5,000 | ||
Combined statutory net income (loss) | 421 | 548 | 536 | |
Surplus amount exceeding local solvency requirements | 854 | 988 | ||
Domestic insurance subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Dividends received from insurance subsidiaries | 60 | 36 | 80 | |
Domestic insurance subsidiaries | Extraordinary Dividend | ||||
Statutory Accounting Practices [Line Items] | ||||
Dividends received from insurance subsidiaries | 0 | 0 | $ 0 | |
Insurance Subsidiaries | Universal and term universal life insurance contracts | Virginia and Delaware | ||||
Statutory Accounting Practices [Line Items] | ||||
Additional statutory reserves | 120 | 284 | ||
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 | |||
Genworth Financial's Subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Restricted net assets | 12,100 | |||
Genworth Holdings' Subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Restricted net assets | $ 11,200 | |||
Genworth Mortgage Insurance Corporation (GMICO) | U.S. Mortgage Insurance subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-to-capital ratio | 12.5 | 12.9 | ||
Rivermont Insurance Company I | ||||
Statutory Accounting Practices [Line Items] | ||||
Maximum potential amount of future obligation | $ 25 | |||
Limited Guarantee Provided to a subsidiary | 16 | $ 4 | ||
Genworth European Mortgage Insurance Business | ||||
Statutory Accounting Practices [Line Items] | ||||
Maximum potential amount of future obligation | $ 1,500 |
Schedule of Statutory Accountin
Schedule of Statutory Accounting Practices (Detail) - Domestic subsidiaries - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statutory Accounting Practices [Line Items] | |||
Combined statutory net income (loss) | $ 1,322 | $ 204 | $ (320) |
Combined statutory capital and surplus | 5,086 | 5,548 | |
Life insurance subsidiaries, excluding captive life reinsurance subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Combined statutory net income (loss) | (895) | (272) | (365) |
Combined statutory capital and surplus | 1,880 | 2,776 | |
Mortgage insurance subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Combined statutory net income (loss) | 697 | 512 | 448 |
Combined statutory capital and surplus | 3,206 | 2,772 | |
Combined statutory net income, excluding captive reinsurance subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Combined statutory net income (loss) | (198) | 240 | 83 |
Captive life reinsurance subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Combined statutory net income (loss) | 1,520 | (36) | $ (403) |
Combined statutory capital and surplus | $ 217 | $ 245 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | Jun. 24, 2016USD ($) | May 09, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Segment Reporting Information [Line Items] | |||||||||
Number of operating segments | Segment | 5 | ||||||||
Corporate federal income tax rate | 21.00% | 35.00% | 35.00% | ||||||
Assumed tax rate on adjustments to net operating income | 21.00% | 35.00% | 35.00% | ||||||
Expenses related to restructuring | $ 2 | $ 2 | $ 22 | ||||||
Gain (loss) on sale of business, before taxes | 0 | 0 | (3) | ||||||
Gains (losses) from life block transactions, pre-tax | 0 | 0 | 9 | ||||||
Gains (losses) related to early extinguishment of debt | 0 | 0 | 48 | ||||||
Fees associated with bond consent solicitation | $ 18 | 6 | $ 0 | 18 | |||||
Borrowings related to securitization entities | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Gains (losses) related to early extinguishment of debt | $ 64 | 64 | |||||||
Term Life Insurance New Business Platform | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Gain (loss) on sale of business, before taxes | $ 12 | 12 | |||||||
European Mortgage Insurance Business | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Gain (loss) on sale of business, before taxes | $ (9) | (9) | |||||||
Genworth Holdings | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Gains (losses) related to early extinguishment of debt | $ 4 | 4 | 4 | ||||||
Pre-tax make-whole expense | 20 | ||||||||
Principal amount of notes repurchased | 28 | $ 28 | 28 | ||||||
Fees associated with bond consent solicitation | $ 6 | $ 18 | $ 6 | $ 18 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Premiums | $ 4,519 | $ 4,004 | $ 4,160 | ||||||||||||||||
Net investment income | 3,262 | 3,200 | 3,159 | ||||||||||||||||
Net investment gains (losses) | (146) | 265 | 72 | ||||||||||||||||
Policy fees and other income | 795 | 826 | 978 | ||||||||||||||||
Total revenues | $ 2,013 | [1] | $ 2,143 | [1] | $ 2,159 | [1] | $ 2,115 | [1] | $ 1,686 | [2] | $ 2,215 | [2] | $ 2,223 | [2] | $ 2,171 | [2] | 8,430 | 8,295 | 8,369 |
Benefits and other changes in policy reserves | 5,684 | 5,179 | 5,245 | ||||||||||||||||
Interest credited | 611 | 646 | 696 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 997 | 1,022 | 1,273 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 391 | 435 | 498 | ||||||||||||||||
Interest expense | 299 | 284 | 337 | ||||||||||||||||
Total benefits and expenses | 2,426 | [3] | 1,870 | [3] | 1,799 | [3] | 1,887 | [3] | 1,976 | [4] | 1,929 | [4] | 1,822 | [4] | 1,839 | [4] | 7,982 | 7,566 | 8,049 |
Income (loss) from continuing operations before income taxes | 448 | 729 | 320 | ||||||||||||||||
Provision (benefit) for income taxes | 456 | 151 | (207) | 358 | |||||||||||||||
Income (loss) from continuing operations | (327) | [5] | 210 | [5] | 249 | [5] | 165 | [5] | 265 | [6] | 184 | [6] | 271 | [6] | 216 | [6] | 297 | 936 | (38) |
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | (9) | 0 | (9) | (29) | |||||||||||
Net income (loss) | (327) | [5] | 210 | [5] | 249 | [5] | 165 | [5] | 265 | [6] | 175 | [6] | 271 | [6] | 216 | [6] | 297 | 927 | (67) |
Less: net income (loss) attributable to noncontrolling interests | 178 | 110 | 210 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (329) | [5] | $ 146 | [5] | $ 190 | [5] | $ 112 | [5] | 353 | [6] | $ 107 | [6] | $ 202 | [6] | $ 155 | [6] | 119 | 817 | (277) |
Total assets | 100,923 | 105,297 | 100,923 | 105,297 | |||||||||||||||
U.S. Mortgage Insurance | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Premiums | 746 | 695 | 660 | ||||||||||||||||
Net investment income | 93 | 73 | 63 | ||||||||||||||||
Net investment gains (losses) | 0 | 0 | (1) | ||||||||||||||||
Policy fees and other income | 2 | 4 | 4 | ||||||||||||||||
Total revenues | 841 | 772 | 726 | ||||||||||||||||
Benefits and other changes in policy reserves | 36 | 107 | 160 | ||||||||||||||||
Interest credited | 0 | 0 | 0 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 169 | 165 | 167 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 14 | 14 | 12 | ||||||||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||||||||
Total benefits and expenses | 219 | 286 | 339 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 622 | 486 | 387 | ||||||||||||||||
Provision (benefit) for income taxes | 132 | 175 | 138 | ||||||||||||||||
Income (loss) from continuing operations | 490 | 311 | 249 | ||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) | 490 | 311 | 249 | ||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 490 | 311 | 249 | ||||||||||||||||
Total assets | 3,583 | 3,273 | 3,583 | 3,273 | |||||||||||||||
Canada Mortgage Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net investment gains (losses) | (107) | ||||||||||||||||||
Total revenues | 114 | ||||||||||||||||||
Canada Mortgage Insurance | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Premiums | 525 | 519 | 481 | ||||||||||||||||
Net investment income | 138 | 132 | 126 | ||||||||||||||||
Net investment gains (losses) | (137) | 128 | 37 | ||||||||||||||||
Policy fees and other income | 0 | 1 | 1 | ||||||||||||||||
Total revenues | 526 | 780 | 645 | ||||||||||||||||
Benefits and other changes in policy reserves | 78 | 54 | 104 | ||||||||||||||||
Interest credited | 0 | 0 | 0 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 70 | 80 | 77 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 43 | 43 | 39 | ||||||||||||||||
Interest expense | 18 | 18 | 18 | ||||||||||||||||
Total benefits and expenses | 209 | 195 | 238 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 317 | 585 | 407 | ||||||||||||||||
Provision (benefit) for income taxes | 84 | 191 | 113 | ||||||||||||||||
Income (loss) from continuing operations | 233 | 394 | 294 | ||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) | 233 | 394 | 294 | ||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | 108 | 190 | 135 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 125 | 204 | 159 | ||||||||||||||||
Total assets | 5,038 | 5,534 | 5,038 | 5,534 | |||||||||||||||
Australia Mortgage Insurance | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Premiums | 373 | (140) | 337 | ||||||||||||||||
Net investment income | 67 | 75 | 94 | ||||||||||||||||
Net investment gains (losses) | (15) | 25 | 9 | ||||||||||||||||
Policy fees and other income | 2 | 0 | 0 | ||||||||||||||||
Total revenues | 427 | (40) | 440 | ||||||||||||||||
Benefits and other changes in policy reserves | 110 | 109 | 113 | ||||||||||||||||
Interest credited | 0 | 0 | 0 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 65 | 67 | 96 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 43 | 24 | 14 | ||||||||||||||||
Interest expense | 9 | 9 | 10 | ||||||||||||||||
Total benefits and expenses | 227 | 209 | 233 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 200 | (249) | 207 | ||||||||||||||||
Provision (benefit) for income taxes | 60 | (90) | 67 | ||||||||||||||||
Income (loss) from continuing operations | 140 | (159) | 140 | ||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) | 140 | (159) | 140 | ||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | 70 | (80) | 75 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 70 | (79) | 65 | ||||||||||||||||
Total assets | 2,534 | 2,973 | 2,534 | 2,973 | |||||||||||||||
U.S. Life Insurance | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Premiums | 2,867 | 2,922 | 2,670 | ||||||||||||||||
Net investment income | 2,781 | 2,755 | 2,726 | ||||||||||||||||
Net investment gains (losses) | 29 | 134 | 128 | ||||||||||||||||
Policy fees and other income | 641 | 660 | 726 | ||||||||||||||||
Total revenues | 6,318 | 6,471 | 6,250 | ||||||||||||||||
Benefits and other changes in policy reserves | 5,416 | 4,880 | 4,822 | ||||||||||||||||
Interest credited | 461 | 506 | 565 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 584 | 572 | 648 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 257 | 328 | 403 | ||||||||||||||||
Interest expense | 16 | 13 | 38 | ||||||||||||||||
Total benefits and expenses | 6,734 | 6,299 | 6,476 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | (416) | 172 | (226) | ||||||||||||||||
Provision (benefit) for income taxes | (68) | 60 | (80) | ||||||||||||||||
Income (loss) from continuing operations | (348) | 112 | (146) | ||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) | (348) | 112 | (146) | ||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (348) | 112 | (146) | ||||||||||||||||
Total assets | 79,799 | 81,295 | 79,799 | 81,295 | |||||||||||||||
Runoff | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Premiums | 0 | 0 | 0 | ||||||||||||||||
Net investment income | 174 | 160 | 147 | ||||||||||||||||
Net investment gains (losses) | (33) | 16 | (14) | ||||||||||||||||
Policy fees and other income | 153 | 163 | 169 | ||||||||||||||||
Total revenues | 294 | 339 | 302 | ||||||||||||||||
Benefits and other changes in policy reserves | 39 | 26 | 42 | ||||||||||||||||
Interest credited | 150 | 140 | 131 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 57 | 61 | 68 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 33 | 24 | 29 | ||||||||||||||||
Interest expense | 0 | 2 | 1 | ||||||||||||||||
Total benefits and expenses | 279 | 253 | 271 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 15 | 86 | 31 | ||||||||||||||||
Provision (benefit) for income taxes | 2 | 25 | 6 | ||||||||||||||||
Income (loss) from continuing operations | 13 | 61 | 25 | ||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) | 13 | 61 | 25 | ||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 13 | 61 | 25 | ||||||||||||||||
Total assets | 9,963 | 10,907 | 9,963 | 10,907 | |||||||||||||||
Corporate and Other | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Provision (benefit) for income taxes | 11 | ||||||||||||||||||
Corporate and Other | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Premiums | 8 | 8 | 12 | ||||||||||||||||
Net investment income | 9 | 5 | 3 | ||||||||||||||||
Net investment gains (losses) | 10 | (38) | (87) | ||||||||||||||||
Policy fees and other income | (3) | (2) | 78 | ||||||||||||||||
Total revenues | 24 | (27) | 6 | ||||||||||||||||
Benefits and other changes in policy reserves | 5 | 3 | 4 | ||||||||||||||||
Interest credited | 0 | 0 | 0 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 52 | 77 | 217 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 1 | 2 | 1 | ||||||||||||||||
Interest expense | 256 | 242 | 270 | ||||||||||||||||
Total benefits and expenses | 314 | 324 | 492 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | (290) | (351) | (486) | ||||||||||||||||
Provision (benefit) for income taxes | (59) | (568) | 114 | ||||||||||||||||
Income (loss) from continuing operations | (231) | 217 | (600) | ||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | (9) | (29) | ||||||||||||||||
Net income (loss) | (231) | 208 | (629) | ||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (231) | 208 | $ (629) | ||||||||||||||||
Total assets | $ 6 | $ 1,315 | $ 6 | $ 1,315 | |||||||||||||||
[1] | Includes net investment losses of $114 million in the fourth quarter of 2018 primarily from our Canada Mortgage Insurance segment. These losses were primarily related to derivative losses on foreign currency swaps and forwards, and losses on preferred equity securities primarily driven by a decrease in interest rates in Canada during the fourth quarter of 2018. | ||||||||||||||||||
[2] | 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. | ||||||||||||||||||
[3] | Our long-term care insurance business completed its annual review of claim reserves in the fourth quarter of 2018, which resulted in higher total benefits and expenses of $291 million driven mostly by updates to several assumptions and methodologies, including benefit utilization rates, claim termination rates and other assumptions. Also in our long-term care insurance business, we refined our estimate of unreported policy terminations, which resulted in an unfavorable reserve adjustment of $36 million in 2018. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2018, which resulted in higher total benefits and expenses of $108 million in our universal and term universal life insurance products driven mostly by lower expected growth in interest rates and emerging mortality experience primarily in our term universal life insurance product. | ||||||||||||||||||
[4] | 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. | ||||||||||||||||||
[5] | In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. | ||||||||||||||||||
[6] | 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 $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. |
Summary of Revenues for Segment
Summary of Revenues for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2017 | [2] | Sep. 30, 2017 | [2] | Jun. 30, 2017 | [2] | Mar. 31, 2017 | [2] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | $ 2,013 | [1] | $ 2,143 | $ 2,159 | $ 2,115 | $ 1,686 | $ 2,215 | $ 2,223 | $ 2,171 | $ 8,430 | $ 8,295 | $ 8,369 | |||||||
Canada Mortgage Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | $ 114 | ||||||||||||||||||
Segment, Continuing Operations | U.S. Mortgage Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 841 | 772 | 726 | ||||||||||||||||
Segment, Continuing Operations | Canada Mortgage Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 526 | 780 | 645 | ||||||||||||||||
Segment, Continuing Operations | Australia Mortgage Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 427 | (40) | 440 | ||||||||||||||||
Segment, Continuing Operations | Long-term Care Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 4,197 | 4,062 | 4,037 | ||||||||||||||||
Segment, Continuing Operations | Life Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 1,430 | 1,591 | 1,381 | ||||||||||||||||
Segment, Continuing Operations | Fixed Annuities | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 691 | 818 | 832 | ||||||||||||||||
Segment, Continuing Operations | U.S. Life Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 6,318 | 6,471 | 6,250 | ||||||||||||||||
Segment, Continuing Operations | Runoff | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 294 | 339 | 302 | ||||||||||||||||
Segment, Continuing Operations | Corporate and Other | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | $ 24 | $ (27) | $ 6 | ||||||||||||||||
[1] | Includes net investment losses of $114 million in the fourth quarter of 2018 primarily from our Canada Mortgage Insurance segment. These losses were primarily related to derivative losses on foreign currency swaps and forwards, and losses on preferred equity securities primarily driven by a decrease in interest rates in Canada during the fourth quarter of 2018. | ||||||||||||||||||
[2] | Our Australian mortgage insurance business completed a review of its premium earnings pattern in the fourth quarter of 2017 and recorded $468 million of lower earned premiums. The review indicated an observed and expected continuation of a longer duration between policy inception and first loss event. |
Summary of Net Operating Income
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (329) | [1] | $ 146 | [1] | $ 190 | [1] | $ 112 | [1] | $ 353 | [2] | $ 107 | [2] | $ 202 | [2] | $ 155 | [2] | $ 119 | $ 817 | $ (277) | |
Add: net income attributable to noncontrolling interests | 2 | [3] | 64 | [3] | 59 | [3] | 53 | [3] | (88) | [4] | 68 | [4] | 69 | [4] | 61 | [4] | 178 | 110 | 210 | |
Net income (loss) | (327) | [1] | 210 | [1] | 249 | [1] | 165 | [1] | 265 | [2] | 175 | [2] | 271 | [2] | 216 | [2] | 297 | 927 | (67) | |
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | (9) | 0 | (9) | (29) | ||||||||||||
Income (loss) from continuing operations | (327) | [1] | $ 210 | [1] | $ 249 | [1] | $ 165 | [1] | $ 265 | [2] | $ 184 | [2] | $ 271 | [2] | $ 216 | [2] | 297 | 936 | (38) | |
Less: income from continuing operations attributable to noncontrolling interests | 178 | 110 | 210 | |||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 119 | 826 | (248) | |||||||||||||||||
Net investment (gains) losses, net | 68 | (202) | (66) | |||||||||||||||||
(Gains) losses from sale of businesses | 0 | 0 | (3) | |||||||||||||||||
(Gains) losses on early extinguishment of debt, net | 0 | 0 | (48) | |||||||||||||||||
Losses from life block transactions | 0 | 0 | 9 | |||||||||||||||||
Expenses related to restructuring | 2 | 2 | 22 | |||||||||||||||||
Fees associated with bond consent solicitation | $ 18 | 6 | 0 | 18 | ||||||||||||||||
Taxes on adjustments | (16) | 70 | 0 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 179 | 696 | (316) | |||||||||||||||||
Canada Mortgage Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Add: net income attributable to noncontrolling interests | $ 45 | |||||||||||||||||||
Segment, Continuing Operations | U.S. Mortgage Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 490 | 311 | 249 | |||||||||||||||||
Net income (loss) | 490 | 311 | 249 | |||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | |||||||||||||||||
Income (loss) from continuing operations | 490 | 311 | 249 | |||||||||||||||||
Less: income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 490 | 311 | 250 | |||||||||||||||||
Segment, Continuing Operations | Canada Mortgage Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 125 | 204 | 159 | |||||||||||||||||
Net income (loss) | 233 | 394 | 294 | |||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | |||||||||||||||||
Income (loss) from continuing operations | 233 | 394 | 294 | |||||||||||||||||
Less: income from continuing operations attributable to noncontrolling interests | 108 | 190 | 135 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 187 | 157 | 146 | |||||||||||||||||
Segment, Continuing Operations | Australia Mortgage Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 70 | (79) | 65 | |||||||||||||||||
Net income (loss) | 140 | (159) | 140 | |||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | |||||||||||||||||
Income (loss) from continuing operations | 140 | (159) | 140 | |||||||||||||||||
Less: income from continuing operations attributable to noncontrolling interests | 70 | (80) | 75 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 76 | (88) | 62 | |||||||||||||||||
Segment, Continuing Operations | Long-term Care Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | (348) | 59 | (200) | |||||||||||||||||
Segment, Continuing Operations | Life Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | (107) | (79) | (83) | |||||||||||||||||
Segment, Continuing Operations | Fixed Annuities | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 79 | 42 | 68 | |||||||||||||||||
Segment, Continuing Operations | U.S. Life Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (348) | 112 | (146) | |||||||||||||||||
Net income (loss) | (348) | 112 | (146) | |||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | |||||||||||||||||
Income (loss) from continuing operations | (348) | 112 | (146) | |||||||||||||||||
Less: income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | (376) | 22 | (215) | |||||||||||||||||
Segment, Continuing Operations | Runoff | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 13 | 61 | 25 | |||||||||||||||||
Net income (loss) | 13 | 61 | 25 | |||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | |||||||||||||||||
Income (loss) from continuing operations | 13 | 61 | 25 | |||||||||||||||||
Less: income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 35 | 51 | 28 | |||||||||||||||||
Segment, Continuing Operations | Corporate and Other | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (231) | 208 | (629) | |||||||||||||||||
Net income (loss) | (231) | 208 | (629) | |||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | (9) | (29) | |||||||||||||||||
Income (loss) from continuing operations | (231) | 217 | (600) | |||||||||||||||||
Less: income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (233) | $ 243 | $ (587) | |||||||||||||||||
[1] | In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. | |||||||||||||||||||
[2] | 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. | |||||||||||||||||||
[3] | Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above, of which the amount attributable to noncontrolling interests was $45 million, net of taxes. | |||||||||||||||||||
[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 $151 million. |
Summary of Net Operating Inco_2
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Parenthetical) (Detail) - Net Investment (Gains) Losses - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Adjustment for DAC and other intangibles and certain benefit reserves | $ (12) | $ (3) | $ (14) |
Adjustment for portion attributable to noncontrolling interests | $ (66) | $ 66 | $ 20 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | $ 2,013 | [1] | $ 2,143 | [1] | $ 2,159 | [1] | $ 2,115 | [1] | $ 1,686 | [2] | $ 2,215 | [2] | $ 2,223 | [2] | $ 2,171 | [2] | $ 8,430 | $ 8,295 | $ 8,369 |
Income (loss) from continuing operations | (327) | [3] | 210 | [3] | 249 | [3] | 165 | [3] | 265 | [4] | 184 | [4] | 271 | [4] | 216 | [4] | 297 | 936 | (38) |
Net income (loss) | (327) | [3] | $ 210 | [3] | $ 249 | [3] | $ 165 | [3] | 265 | [4] | $ 175 | [4] | $ 271 | [4] | $ 216 | [4] | 297 | 927 | (67) |
Total assets | 100,923 | 105,297 | 100,923 | 105,297 | |||||||||||||||
Geographic Distribution, Domestic | United States | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 7,468 | 7,546 | 7,270 | ||||||||||||||||
Income (loss) from continuing operations | (72) | 704 | (447) | ||||||||||||||||
Net income (loss) | (72) | 695 | (494) | ||||||||||||||||
Total assets | 93,296 | 96,740 | 93,296 | 96,740 | |||||||||||||||
Geographic Distribution, Foreign | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 962 | 749 | 1,099 | ||||||||||||||||
Income (loss) from continuing operations | 369 | 232 | 409 | ||||||||||||||||
Net income (loss) | 369 | 232 | 427 | ||||||||||||||||
Total assets | 7,627 | 8,557 | 7,627 | 8,557 | |||||||||||||||
Geographic Distribution, Foreign | Canada | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 526 | 780 | 645 | ||||||||||||||||
Income (loss) from continuing operations | 233 | 394 | 294 | ||||||||||||||||
Net income (loss) | 233 | 394 | 294 | ||||||||||||||||
Total assets | 5,038 | 5,534 | 5,038 | 5,534 | |||||||||||||||
Geographic Distribution, Foreign | Australia | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 427 | (40) | 440 | ||||||||||||||||
Income (loss) from continuing operations | 140 | (159) | 140 | ||||||||||||||||
Net income (loss) | 140 | (159) | 140 | ||||||||||||||||
Total assets | 2,534 | 2,973 | 2,534 | 2,973 | |||||||||||||||
Geographic Distribution, Foreign | Other Countries | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 9 | 9 | 14 | ||||||||||||||||
Income (loss) from continuing operations | (4) | (3) | (25) | ||||||||||||||||
Net income (loss) | (4) | (3) | $ (7) | ||||||||||||||||
Total assets | $ 55 | $ 50 | $ 55 | $ 50 | |||||||||||||||
[1] | Includes net investment losses of $114 million in the fourth quarter of 2018 primarily from our Canada Mortgage Insurance segment. These losses were primarily related to derivative losses on foreign currency swaps and forwards, and losses on preferred equity securities primarily driven by a decrease in interest rates in Canada during the fourth quarter of 2018. | ||||||||||||||||||
[2] | 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. | ||||||||||||||||||
[3] | In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. | ||||||||||||||||||
[4] | 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 $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||||||
Quarterly Results Of Operations [Abstract] | ||||||||||||||||||||||
Total revenues | $ 2,013 | [1] | $ 2,143 | [1] | $ 2,159 | [1] | $ 2,115 | [1] | $ 1,686 | [2] | $ 2,215 | [2] | $ 2,223 | [2] | $ 2,171 | [2] | $ 8,430 | $ 8,295 | $ 8,369 | |||
Total benefits and expenses | 2,426 | [3] | 1,870 | [3] | 1,799 | [3] | 1,887 | [3] | 1,976 | [4] | 1,929 | [4] | 1,822 | [4] | 1,839 | [4] | 7,982 | 7,566 | 8,049 | |||
Income (loss) from continuing operations | (327) | [5] | 210 | [5] | 249 | [5] | 165 | [5] | 265 | [6] | 184 | [6] | 271 | [6] | 216 | [6] | 297 | 936 | (38) | |||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | (9) | 0 | (9) | (29) | ||||||||||||||
Net income | (327) | [5] | 210 | [5] | 249 | [5] | 165 | [5] | 265 | [6] | 175 | [6] | 271 | [6] | 216 | [6] | 297 | 927 | (67) | |||
Net income (loss) attributable to noncontrolling interests | 2 | [7] | 64 | [7] | 59 | [7] | 53 | [7] | (88) | [8] | 68 | [8] | 69 | [8] | 61 | [8] | 178 | 110 | 210 | |||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (329) | [5] | $ 146 | [5] | $ 190 | [5] | $ 112 | [5] | $ 353 | [6] | $ 107 | [6] | $ 202 | [6] | $ 155 | [6] | $ 119 | $ 817 | $ (277) | |||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders per share: | ||||||||||||||||||||||
Basic | $ (0.66) | $ 0.29 | $ 0.38 | $ 0.22 | $ 0.71 | $ 0.23 | $ 0.40 | $ 0.31 | $ 0.24 | $ 1.66 | $ (0.50) | |||||||||||
Diluted | (0.66) | 0.29 | 0.38 | 0.22 | 0.70 | 0.23 | 0.40 | 0.31 | 0.24 | 1.65 | (0.50) | |||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share: | ||||||||||||||||||||||
Basic | (0.66) | 0.29 | 0.38 | 0.22 | 0.71 | 0.21 | 0.40 | 0.31 | 0.24 | 1.64 | (0.56) | |||||||||||
Diluted | $ (0.66) | $ 0.29 | $ 0.38 | $ 0.22 | $ 0.70 | $ 0.21 | $ 0.40 | $ 0.31 | $ 0.24 | $ 1.63 | $ (0.56) | |||||||||||
Weighted-average common shares outstanding: | ||||||||||||||||||||||
Basic | 500.8 | 500.7 | 500.6 | 499.6 | 499.2 | 499.1 | 499 | 498.6 | 500.4 | 499 | 498.3 | |||||||||||
Diluted | 500.8 | [9] | 503.3 | [9] | 502.6 | [9] | 502.7 | [9] | 502.1 | 501.6 | 501.2 | 501 | 504.2 | [10] | 501.4 | [10] | 498.3 | [10] | ||||
[1] | Includes net investment losses of $114 million in the fourth quarter of 2018 primarily from our Canada Mortgage Insurance segment. These losses were primarily related to derivative losses on foreign currency swaps and forwards, and losses on preferred equity securities primarily driven by a decrease in interest rates in Canada during the fourth quarter of 2018. | |||||||||||||||||||||
[2] | 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. | |||||||||||||||||||||
[3] | Our long-term care insurance business completed its annual review of claim reserves in the fourth quarter of 2018, which resulted in higher total benefits and expenses of $291 million driven mostly by updates to several assumptions and methodologies, including benefit utilization rates, claim termination rates and other assumptions. Also in our long-term care insurance business, we refined our estimate of unreported policy terminations, which resulted in an unfavorable reserve adjustment of $36 million in 2018. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2018, which resulted in higher total benefits and expenses of $108 million in our universal and term universal life insurance products driven mostly by lower expected growth in interest rates and emerging mortality experience primarily in our term universal life insurance product. | |||||||||||||||||||||
[4] | 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. | |||||||||||||||||||||
[5] | In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. | |||||||||||||||||||||
[6] | 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. | |||||||||||||||||||||
[7] | Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above, of which the amount attributable to noncontrolling interests was $45 million, net of taxes. | |||||||||||||||||||||
[8] | 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 $151 million. | |||||||||||||||||||||
[9] | Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months ended December 31, 2018, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended December 31, 2018, as the inclusion of shares for stock options, RSUs and SARs of 7.6 million would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months ended December 31, 2018, dilutive potential weighted-average common shares outstanding would have been 508.4 million. | |||||||||||||||||||||
[10] | Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.'s common stockholders for the year ended December 31, 2016, we were required to use basic weighted-average common shares outstanding as the inclusion of shares for stock options, restricted stock units ("RSUs") and stock appreciation rights ("SARs") of 2.0 million would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.'s common stockholders for the year ended December 31, 2016, dilutive potential weighted-average common shares outstanding would have been 500.3 million. |
Quarterly Results of Operatio_4
Quarterly Results of Operations (Parenthetical) (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Total benefits and expenses | $ 2,426 | [1] | $ 1,870 | [1] | $ 1,799 | [1] | $ 1,887 | [1] | $ 1,976 | [2] | $ 1,929 | [2] | $ 1,822 | [2] | $ 1,839 | [2] | $ 7,982 | $ 7,566 | $ 8,049 |
Net investment gains (losses) | (146) | 265 | 72 | ||||||||||||||||
Net income (loss) attributable to noncontrolling interests | $ 2 | [3] | 64 | [3] | 59 | [3] | 53 | [3] | (88) | [4] | 68 | [4] | 69 | [4] | 61 | [4] | 178 | 110 | $ 210 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 7.6 | 2 | |||||||||||||||||
Weighted-average number of diluted shares if not in a loss position | 508.4 | 500.3 | |||||||||||||||||
Total revenues | $ 2,013 | [5] | 2,143 | [5] | 2,159 | [5] | 2,115 | [5] | 1,686 | [6] | 2,215 | [6] | 2,223 | [6] | 2,171 | [6] | 8,430 | 8,295 | $ 8,369 |
Provision (benefit) for income taxes | 456 | 151 | (207) | 358 | |||||||||||||||
Valuation allowance | 258 | 258 | |||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (329) | [7] | $ 146 | [7] | $ 190 | [7] | $ 112 | [7] | 353 | [8] | $ 107 | [8] | $ 202 | [8] | $ 155 | [8] | 119 | 817 | (277) |
Premiums | 4,519 | 4,004 | $ 4,160 | ||||||||||||||||
Unlocking | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Total benefits and expenses | 108 | 117 | |||||||||||||||||
Unfavorable adjustment, net of taxes | 91 | 74 | 91 | 74 | |||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (91) | (74) | |||||||||||||||||
Australian Mortgage Insurance [Member] | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Total benefits and expenses | 18 | ||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 151 | ||||||||||||||||||
Unfavorable adjustment, net of taxes | 152 | $ 152 | |||||||||||||||||
Premiums | 468 | ||||||||||||||||||
Corporate and Other | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Provision (benefit) for income taxes | $ 11 | ||||||||||||||||||
Long-term Care Insurance | Refinements | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Total benefits and expenses | 36 | ||||||||||||||||||
Unfavorable policy reserve adjustment, net of taxes | 28 | 28 | |||||||||||||||||
Long-term Care Insurance | Annual Assumption Review | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Total benefits and expenses | 291 | ||||||||||||||||||
Unfavorable claim reserve adjustment, net of taxes | 230 | $ 230 | |||||||||||||||||
Canada Mortgage Insurance | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Net investment gains (losses) | (107) | ||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 45 | ||||||||||||||||||
Total revenues | $ 114 | ||||||||||||||||||
[1] | Our long-term care insurance business completed its annual review of claim reserves in the fourth quarter of 2018, which resulted in higher total benefits and expenses of $291 million driven mostly by updates to several assumptions and methodologies, including benefit utilization rates, claim termination rates and other assumptions. Also in our long-term care insurance business, we refined our estimate of unreported policy terminations, which resulted in an unfavorable reserve adjustment of $36 million in 2018. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2018, which resulted in higher total benefits and expenses of $108 million in our universal and term universal life insurance products driven mostly by lower expected growth in interest rates and emerging mortality experience primarily in our term universal life insurance product. | ||||||||||||||||||
[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] | Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above, of which the amount attributable to noncontrolling interests was $45 million, net of taxes. | ||||||||||||||||||
[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] | Includes net investment losses of $114 million in the fourth quarter of 2018 primarily from our Canada Mortgage Insurance segment. These losses were primarily related to derivative losses on foreign currency swaps and forwards, and losses on preferred equity securities primarily driven by a decrease in interest rates in Canada during the fourth quarter of 2018. | ||||||||||||||||||
[6] | 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. | ||||||||||||||||||
[7] | In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. | ||||||||||||||||||
[8] | 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. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) £ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2017GBP (£)Company | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | |||
Indemnity limit | £ | £ 28 | ||
Number of insurance company sold | Company | 2 | ||
Commitment to fund limited partnership investments | $ 539 | ||
Commitment to fund U.S. commercial mortgage loan investments | 41 | ||
Commitment to fund private placement investments | 32 | ||
Rivermont Insurance Company I | |||
Commitments and Contingencies Disclosure [Line Items] | |||
One time commitment fee | 2 | ||
Maximum potential amount of future obligation before repayment | $ 25 | ||
Margin rate | 1.20% | ||
Notional amount | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Commitment to fund bank loan investments | $ 33 | $ 18 |
Component of Changes in Accumul
Component of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 3,027 | $ 3,094 | $ 3,010 | |
Cumulative effect of changes in accounting | 131 | |||
OCI before reclassifications | (1,148) | 205 | 228 | |
Amounts reclassified from (to) OCI | (122) | (160) | (137) | |
Total other comprehensive income (loss) | (1,270) | 45 | 91 | |
Balances before nonnontrolling interests | 1,888 | 3,139 | 3,101 | |
Less: change in OCI attributable to noncontrolling interests | (156) | 112 | 7 | |
Ending balance | 2,044 | 3,027 | 3,094 | |
Net unrealized investment (gains) losses | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | [1] | 1,085 | 1,262 | 1,254 |
Cumulative effect of changes in accounting | [1] | 164 | ||
OCI before reclassifications | [1] | (653) | (84) | 54 |
Amounts reclassified from (to) OCI | [1] | (18) | (102) | (57) |
Total other comprehensive income (loss) | [1] | (671) | (186) | (3) |
Balances before nonnontrolling interests | [1] | 578 | 1,076 | 1,251 |
Less: change in OCI attributable to noncontrolling interests | [1] | (17) | (9) | (11) |
Ending balance | [1] | 595 | 1,085 | 1,262 |
Derivatives qualifying as hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | [2] | 2,065 | 2,085 | 2,045 |
Cumulative effect of changes in accounting | [2] | 14 | ||
OCI before reclassifications | [2] | (194) | 38 | 120 |
Amounts reclassified from (to) OCI | [2] | (104) | (58) | (80) |
Total other comprehensive income (loss) | [2] | (298) | (20) | 40 |
Balances before nonnontrolling interests | [2] | 1,781 | 2,065 | 2,085 |
Less: change in OCI attributable to noncontrolling interests | [2] | 0 | 0 | 0 |
Ending balance | [2] | 1,781 | 2,065 | 2,085 |
Foreign currency translation and other adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (123) | (253) | (289) | |
Cumulative effect of changes in accounting | (47) | |||
OCI before reclassifications | (301) | 251 | 54 | |
Amounts reclassified from (to) OCI | 0 | 0 | 0 | |
Total other comprehensive income (loss) | (301) | 251 | 54 | |
Balances before nonnontrolling interests | (471) | (2) | (235) | |
Less: change in OCI attributable to noncontrolling interests | (139) | 121 | 18 | |
Ending balance | (332) | (123) | (253) | |
Accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 3,027 | 3,094 | 3,010 | |
Total other comprehensive income (loss) | (1,114) | (67) | 84 | |
Ending balance | $ 2,044 | $ 3,027 | $ 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. |
Changes In Accumulated Other _3
Changes In Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrecognized postretirement benefit obligation, current period OCI | $ (2) | $ (13) | $ (11) |
Unrecognized postretirement benefit obligation, current period OCI, tax | 1 | 6 | 5 |
Foreign currency translation and other adjustments, current period OCI, tax | $ (45) | $ 0 | $ 19 |
Reclassifications In (Out) of A
Reclassifications In (Out) of Accumulated Other Comprehensive Income (Loss), Net of Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2017 | Sep. 30, 2017 | [2] | Jun. 30, 2017 | [2] | Mar. 31, 2017 | [2] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||||
Net investment income | $ (3,262) | $ (3,200) | $ (3,159) | |||||||||||||||||
Net investment (gains) losses | 146 | (265) | (72) | |||||||||||||||||
(Provision) benefit for income taxes | $ 456 | 151 | (207) | 358 | ||||||||||||||||
(Income) loss from continuing operations | $ 327 | $ (210) | $ (249) | $ (165) | $ (265) | [2] | $ (184) | $ (271) | $ (216) | (297) | (936) | 38 | ||||||||
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] | (23) | (157) | (88) | ||||||||||||||||
(Provision) benefit for income taxes | 5 | 55 | 31 | |||||||||||||||||
(Income) loss from continuing operations | (18) | (102) | (57) | |||||||||||||||||
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 | 58 | 81 | 43 | |||||||||||||||||
(Income) loss from continuing operations | (104) | (58) | (80) | |||||||||||||||||
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 | (153) | (131) | (112) | |||||||||||||||||
Net investment (gains) losses | $ (9) | $ (8) | (2) | |||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | Inflation indexed swaps | ||||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||||
Net investment income | (2) | |||||||||||||||||||
Net investment (gains) losses | $ (7) | |||||||||||||||||||
[1] | In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. | |||||||||||||||||||
[2] | 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. | |||||||||||||||||||
[3] | Amounts exclude adjustments to DAC, PVFP, sales inducements and benefit reserves. |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Detail) $ / shares in Units, $ in Millions, $ in Millions, $ in Millions | Jun. 01, 2016USD ($) | Jun. 01, 2016AUD ($)$ / shares | May 15, 2015USD ($) | May 11, 2015$ / sharesshares | Mar. 31, 2018USD ($)shares | Mar. 31, 2018CAD ($)shares | Feb. 28, 2018AUD ($)shares | May 31, 2017USD ($)shares | May 31, 2017CAD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)shares | Dec. 31, 2018CAD ($)shares | Dec. 31, 2018AUD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017AUD ($)shares | Dec. 31, 2016USD ($) | May 31, 2018AUD ($)shares | Aug. 31, 2017AUD ($) | May 14, 2014 | Jul. 31, 2009 |
Noncontrolling Interest [Line Items] | ||||||||||||||||||||
Dividend paid to noncontrolling interests | $ 97 | $ 107 | $ 138 | |||||||||||||||||
Genworth MI Canada Inc. | ||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||
Beneficial ownership percentage of ordinary shares | 57.00% | |||||||||||||||||||
Shares authorized to be repurchased | shares | 4,500,000 | |||||||||||||||||||
Repurchase of subsidiary shares through issuer bid, number of shares | shares | 1,200,000 | 1,200,000 | 1,100,000 | 1,100,000 | 2,400,000 | 2,400,000 | 2,400,000 | |||||||||||||
Common shares repurchased, value | $ 50 | $ 40 | $ 100 | |||||||||||||||||
Amount received as a result of participation in Issuer Bid | $ 22 | $ 18 | $ 41 | |||||||||||||||||
Amount received as a result of participation in issuer bid, paid as dividend | 16 | 12 | 14 | |||||||||||||||||
Retained by GMICO | $ 6 | $ 6 | 13 | |||||||||||||||||
Dividend paid to noncontrolling interests | $ 57 | $ 54 | 50 | |||||||||||||||||
Genworth MI Canada Inc. | Subsequent Event | ||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||
Amount received as a result of participation in issuer bid, to be paid as dividend | $ 14 | |||||||||||||||||||
Genworth MI Canada Inc. | IPO | ||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||
Beneficial ownership percentage of ordinary shares | 57.00% | 57.50% | ||||||||||||||||||
Genworth Australia | ||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||
Beneficial ownership percentage of ordinary shares | 52.00% | 52.00% | 52.00% | |||||||||||||||||
Repurchase of subsidiary shares through issuer bid, number of shares | shares | 19,000,000 | 36,000,000 | 36,000,000 | 36,000,000 | 17,000,000 | 17,000,000 | ||||||||||||||
Common shares repurchased, value | $ 49 | $ 100 | $ 51 | |||||||||||||||||
Amount received as a result of participation in Issuer Bid | $ 20 | $ 20 | ||||||||||||||||||
Amount received as a result of participation in issuer bid, paid as dividend | 37 | |||||||||||||||||||
Dividend paid to noncontrolling interests | $ 40 | $ 53 | $ 88 | |||||||||||||||||
Shares sold | shares | 92,300,000 | |||||||||||||||||||
Price per ordinary share | $ / shares | $ 0.34 | $ 3.08 | ||||||||||||||||||
Proceeds from sale of subsidiary shares to noncontrolling interests | $ 226 | |||||||||||||||||||
Maximum aggregate amount of share buy-back program | $ 100 | $ 100 | ||||||||||||||||||
Proceeds from capital reduction | $ 76 | |||||||||||||||||||
Share conversion ratio | 0.8555 | 0.8555 | ||||||||||||||||||
Capital reduction | $ 202 | |||||||||||||||||||
Genworth Australia | IPO | ||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||
Beneficial ownership percentage of ordinary shares | 66.20% |
Sale of Businesses - Additional
Sale of Businesses - Additional Information (Detail) - USD ($) $ in Millions | Jun. 24, 2016 | May 09, 2016 | Dec. 01, 2015 | Dec. 31, 2018 | 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, net of taxes | $ 26 | ||||||
Gain (loss) on sale of business, before taxes | $ 0 | $ 0 | (3) | ||||
European Mortgage Insurance Business | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | |||||||
Gain (Loss) on sale of business, net of taxes | $ 18 | $ (140) | |||||
Gain (loss) on sale of business, before taxes | (9) | (9) | |||||
Gain (loss) on sale of business, tax expense (benefit) | (27) | ||||||
Net proceeds from sale of business | $ 50 | ||||||
Lifestyle Protection Insurance | Discontinued Operations, Disposed of by Sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | |||||||
Gain (loss) on sale of business, tax expense (benefit) | 155 | ||||||
Net proceeds from sale of business | $ 400 | ||||||
Gain (loss) on sale of discontinued operations, net of taxes | $ (9) | (29) | $ (381) | ||||
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 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Fixed maturity securities available-for-sale, at fair value | $ 59,661 | $ 62,525 | ||
Equity securities, at fair value | 655 | 820 | ||
Commercial mortgage loans | 6,687 | 6,341 | ||
Restricted commercial mortgage loans related to securitization entities | 62 | 107 | ||
Policy loans | 1,861 | 1,786 | ||
Other invested assets | 1,188 | 1,813 | ||
Total investments | 70,114 | 73,392 | ||
Cash, cash equivalents and restricted cash | 2,177 | 2,875 | $ 2,784 | $ 5,993 |
Accrued investment income | 675 | 644 | ||
Deferred acquisition costs | 3,263 | 2,329 | 3,571 | |
Intangible assets and goodwill | 347 | 301 | ||
Reinsurance recoverable | 17,278 | 17,569 | ||
Other assets | 474 | 453 | ||
Deferred tax assets | 736 | 504 | ||
Separate account assets | 5,859 | 7,230 | ||
Total assets | 100,923 | 105,297 | ||
Liabilities and stockholders' equity | ||||
Future policy benefits | 37,940 | 38,472 | ||
Policyholder account balances | 22,968 | 24,195 | ||
Liability for policy and contract claims | 10,379 | 9,594 | ||
Unearned premiums | 3,546 | 3,967 | ||
Other liabilities | 1,682 | 1,910 | ||
Borrowings related to securitization entities | 40 | |||
Non-recourse funding obligations | 311 | 310 | ||
Long-term borrowings | 4,025 | 4,224 | ||
Deferred tax liability | 24 | 27 | ||
Separate account liabilities | 5,859 | 7,230 | ||
Total liabilities | 86,734 | 89,969 | ||
Equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-in capital | 11,987 | 11,977 | ||
Accumulated other comprehensive income (loss) | 2,044 | 3,027 | 3,094 | 3,010 |
Retained earnings | 1,118 | 1,113 | ||
Treasury stock, at cost | (2,700) | (2,700) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 12,450 | 13,418 | ||
Noncontrolling interests | 1,739 | 1,910 | ||
Total equity | 14,189 | 15,328 | 14,467 | 14,637 |
Total liabilities and equity | 100,923 | 105,297 | ||
Reportable Legal Entities | Parent Guarantor | ||||
Assets | ||||
Investments in subsidiaries | 12,570 | 13,561 | ||
Total investments | 12,570 | 13,561 | ||
Other assets | 15 | 3 | ||
Deferred tax assets | 14 | 27 | ||
Total assets | 12,599 | 13,591 | ||
Liabilities and stockholders' equity | ||||
Other liabilities | 27 | 41 | ||
Intercompany notes payable | 122 | 132 | ||
Total liabilities | 149 | 173 | ||
Equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-in capital | 11,987 | 11,977 | ||
Accumulated other comprehensive income (loss) | 2,044 | 3,027 | ||
Retained earnings | 1,118 | 1,113 | ||
Treasury stock, at cost | (2,700) | (2,700) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 12,450 | 13,418 | ||
Total equity | 12,450 | 13,418 | ||
Total liabilities and equity | 12,599 | 13,591 | ||
Reportable Legal Entities | Issuer | ||||
Assets | ||||
Other invested assets | 86 | 75 | ||
Investments in subsidiaries | 11,462 | 12,867 | ||
Total investments | 11,548 | 12,942 | ||
Cash, cash equivalents and restricted cash | 429 | 795 | 998 | 1,124 |
Other assets | 62 | 54 | ||
Intercompany notes receivable | 180 | 155 | ||
Deferred tax assets | 907 | 807 | ||
Total assets | 13,126 | 14,753 | ||
Liabilities and stockholders' equity | ||||
Other liabilities | 97 | 119 | ||
Intercompany notes payable | 207 | 259 | ||
Long-term borrowings | 3,567 | 3,724 | ||
Total liabilities | 3,871 | 4,102 | ||
Equity: | ||||
Additional paid-in capital | 9,095 | 9,096 | ||
Accumulated other comprehensive income (loss) | 2,144 | 3,037 | ||
Retained earnings | (1,984) | (1,482) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 9,255 | 10,651 | ||
Total equity | 9,255 | 10,651 | ||
Total liabilities and equity | 13,126 | 14,753 | ||
Reportable Legal Entities | All Other Subsidiaries | ||||
Assets | ||||
Fixed maturity securities available-for-sale, at fair value | 59,861 | 62,725 | ||
Equity securities, at fair value | 655 | 820 | ||
Commercial mortgage loans | 6,687 | 6,341 | ||
Restricted commercial mortgage loans related to securitization entities | 62 | 107 | ||
Policy loans | 1,861 | 1,786 | ||
Other invested assets | 1,104 | 1,742 | ||
Total investments | 70,230 | 73,521 | ||
Cash, cash equivalents and restricted cash | 1,748 | 2,080 | $ 1,786 | $ 4,869 |
Accrued investment income | 679 | 647 | ||
Deferred acquisition costs | 3,263 | 2,329 | ||
Intangible assets and goodwill | 347 | 301 | ||
Reinsurance recoverable | 17,278 | 17,569 | ||
Other assets | 397 | 397 | ||
Intercompany notes receivable | 6 | 59 | ||
Deferred tax assets | (185) | (330) | ||
Separate account assets | 5,859 | 7,230 | ||
Total assets | 99,622 | 103,803 | ||
Liabilities and stockholders' equity | ||||
Future policy benefits | 37,940 | 38,472 | ||
Policyholder account balances | 22,968 | 24,195 | ||
Liability for policy and contract claims | 10,379 | 9,594 | ||
Unearned premiums | 3,546 | 3,967 | ||
Other liabilities | 1,565 | 1,759 | ||
Intercompany notes payable | 57 | 23 | ||
Borrowings related to securitization entities | 40 | |||
Non-recourse funding obligations | 311 | 310 | ||
Long-term borrowings | 458 | 500 | ||
Deferred tax liability | 24 | 27 | ||
Separate account liabilities | 5,859 | 7,230 | ||
Total liabilities | 83,107 | 86,117 | ||
Equity: | ||||
Common stock | 3 | 3 | ||
Additional paid-in capital | 18,425 | 18,420 | ||
Accumulated other comprehensive income (loss) | 2,060 | 3,051 | ||
Retained earnings | (6,012) | (5,998) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 14,476 | 15,476 | ||
Noncontrolling interests | 2,039 | 2,210 | ||
Total equity | 16,515 | 17,686 | ||
Total liabilities and equity | 99,622 | 103,803 | ||
Eliminations | ||||
Assets | ||||
Fixed maturity securities available-for-sale, at fair value | (200) | (200) | ||
Other invested assets | (2) | (4) | ||
Investments in subsidiaries | (24,032) | (26,428) | ||
Total investments | (24,234) | (26,632) | ||
Accrued investment income | (4) | (3) | ||
Other assets | (1) | |||
Intercompany notes receivable | (186) | (214) | ||
Total assets | (24,424) | (26,850) | ||
Liabilities and stockholders' equity | ||||
Other liabilities | (7) | (9) | ||
Intercompany notes payable | (386) | (414) | ||
Total liabilities | (393) | (423) | ||
Equity: | ||||
Common stock | (3) | (3) | ||
Additional paid-in capital | (27,520) | (27,516) | ||
Accumulated other comprehensive income (loss) | (4,204) | (6,088) | ||
Retained earnings | 7,996 | 7,480 | ||
Total Genworth Financial, Inc.'s stockholders' equity | (23,731) | (26,127) | ||
Noncontrolling interests | (300) | (300) | ||
Total equity | (24,031) | (26,427) | ||
Total liabilities and equity | $ (24,424) | $ (26,850) |
Condensed Consolidating Income
Condensed Consolidating Income Statement (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||
Revenues: | |||||||||||||||||||
Premiums | $ 4,519 | $ 4,004 | $ 4,160 | ||||||||||||||||
Net investment income | 3,262 | 3,200 | 3,159 | ||||||||||||||||
Net investment gains (losses) | (146) | 265 | 72 | ||||||||||||||||
Policy fees and other income | 795 | 826 | 978 | ||||||||||||||||
Total revenues | $ 2,013 | [1] | $ 2,143 | [1] | $ 2,159 | [1] | $ 2,115 | [1] | $ 1,686 | [2] | $ 2,215 | [2] | $ 2,223 | [2] | $ 2,171 | [2] | 8,430 | 8,295 | 8,369 |
Benefits and expenses: | |||||||||||||||||||
Benefits and other changes in policy reserves | 5,684 | 5,179 | 5,245 | ||||||||||||||||
Interest credited | 611 | 646 | 696 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 997 | 1,022 | 1,273 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 391 | 435 | 498 | ||||||||||||||||
Interest expense | 299 | 284 | 337 | ||||||||||||||||
Total benefits and expenses | 2,426 | [3] | 1,870 | [3] | 1,799 | [3] | 1,887 | [3] | 1,976 | [4] | 1,929 | [4] | 1,822 | [4] | 1,839 | [4] | 7,982 | 7,566 | 8,049 |
Income (loss) from continuing operations before income taxes | 448 | 729 | 320 | ||||||||||||||||
Provision (benefit) for income taxes | 456 | 151 | (207) | 358 | |||||||||||||||
Income (loss) from continuing operations | (327) | [5] | 210 | [5] | 249 | [5] | 165 | [5] | 265 | [6] | 184 | [6] | 271 | [6] | 216 | [6] | 297 | 936 | (38) |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | (9) | 0 | (9) | (29) | |||||||||||
Net income (loss) | (327) | [5] | 210 | [5] | 249 | [5] | 165 | [5] | 265 | [6] | 175 | [6] | 271 | [6] | 216 | [6] | 297 | 927 | (67) |
Less: net income attributable to noncontrolling interests | 2 | [7] | 64 | [7] | 59 | [7] | 53 | [7] | (88) | [8] | 68 | [8] | 69 | [8] | 61 | [8] | 178 | 110 | 210 |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (329) | [5] | $ 146 | [5] | $ 190 | [5] | $ 112 | [5] | $ 353 | [6] | $ 107 | [6] | $ 202 | [6] | $ 155 | [6] | 119 | 817 | (277) |
Reportable Legal Entities | Parent Guarantor | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Net investment income | (3) | (3) | (3) | ||||||||||||||||
Total revenues | (3) | (3) | (3) | ||||||||||||||||
Benefits and expenses: | |||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 33 | 57 | 153 | ||||||||||||||||
Interest expense | 2 | 1 | 1 | ||||||||||||||||
Total benefits and expenses | 35 | 58 | 154 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | (38) | (61) | (157) | ||||||||||||||||
Provision (benefit) for income taxes | (6) | (47) | |||||||||||||||||
Equity in income (loss) of subsidiaries | 151 | 878 | (166) | ||||||||||||||||
Income (loss) from continuing operations | 119 | 817 | (276) | ||||||||||||||||
Income (loss) from discontinued operations, net of taxes | (1) | ||||||||||||||||||
Net income (loss) | 119 | 817 | (277) | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 119 | 817 | (277) | ||||||||||||||||
Reportable Legal Entities | Issuer | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Net investment income | 14 | 8 | 2 | ||||||||||||||||
Net investment gains (losses) | 16 | (14) | (1) | ||||||||||||||||
Policy fees and other income | 5 | (8) | |||||||||||||||||
Total revenues | 30 | (1) | (7) | ||||||||||||||||
Benefits and expenses: | |||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 10 | (2) | 38 | ||||||||||||||||
Interest expense | 268 | 254 | 278 | ||||||||||||||||
Total benefits and expenses | 278 | 252 | 316 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | (248) | (253) | (323) | ||||||||||||||||
Provision (benefit) for income taxes | (44) | (67) | 71 | ||||||||||||||||
Equity in income (loss) of subsidiaries | (176) | 771 | (53) | ||||||||||||||||
Income (loss) from continuing operations | (380) | 585 | (447) | ||||||||||||||||
Income (loss) from discontinued operations, net of taxes | 4 | (12) | |||||||||||||||||
Net income (loss) | (380) | 589 | (459) | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (380) | 589 | (459) | ||||||||||||||||
Reportable Legal Entities | All Other Subsidiaries | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Premiums | 4,519 | 4,004 | 4,160 | ||||||||||||||||
Net investment income | 3,266 | 3,210 | 3,175 | ||||||||||||||||
Net investment gains (losses) | (162) | 279 | 73 | ||||||||||||||||
Policy fees and other income | 798 | 823 | 986 | ||||||||||||||||
Total revenues | 8,421 | 8,316 | 8,394 | ||||||||||||||||
Benefits and expenses: | |||||||||||||||||||
Benefits and other changes in policy reserves | 5,684 | 5,179 | 5,245 | ||||||||||||||||
Interest credited | 611 | 646 | 696 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 954 | 967 | 1,082 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 391 | 435 | 498 | ||||||||||||||||
Interest expense | 47 | 46 | 73 | ||||||||||||||||
Total benefits and expenses | 7,687 | 7,273 | 7,594 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 734 | 1,043 | 800 | ||||||||||||||||
Provision (benefit) for income taxes | 201 | (140) | 334 | ||||||||||||||||
Income (loss) from continuing operations | 533 | 1,183 | 466 | ||||||||||||||||
Income (loss) from discontinued operations, net of taxes | (13) | (16) | |||||||||||||||||
Net income (loss) | 533 | 1,170 | 450 | ||||||||||||||||
Less: net income attributable to noncontrolling interests | 178 | 110 | 210 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 355 | 1,060 | 240 | ||||||||||||||||
Eliminations | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Net investment income | (15) | (15) | (15) | ||||||||||||||||
Policy fees and other income | (3) | (2) | |||||||||||||||||
Total revenues | (18) | (17) | (15) | ||||||||||||||||
Benefits and expenses: | |||||||||||||||||||
Interest expense | (18) | (17) | (15) | ||||||||||||||||
Total benefits and expenses | (18) | (17) | (15) | ||||||||||||||||
Equity in income (loss) of subsidiaries | 25 | (1,649) | 219 | ||||||||||||||||
Income (loss) from continuing operations | 25 | (1,649) | 219 | ||||||||||||||||
Net income (loss) | 25 | (1,649) | 219 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 25 | $ (1,649) | $ 219 | ||||||||||||||||
[1] | Includes net investment losses of $114 million in the fourth quarter of 2018 primarily from our Canada Mortgage Insurance segment. These losses were primarily related to derivative losses on foreign currency swaps and forwards, and losses on preferred equity securities primarily driven by a decrease in interest rates in Canada during the fourth quarter of 2018. | ||||||||||||||||||
[2] | 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. | ||||||||||||||||||
[3] | Our long-term care insurance business completed its annual review of claim reserves in the fourth quarter of 2018, which resulted in higher total benefits and expenses of $291 million driven mostly by updates to several assumptions and methodologies, including benefit utilization rates, claim termination rates and other assumptions. Also in our long-term care insurance business, we refined our estimate of unreported policy terminations, which resulted in an unfavorable reserve adjustment of $36 million in 2018. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2018, which resulted in higher total benefits and expenses of $108 million in our universal and term universal life insurance products driven mostly by lower expected growth in interest rates and emerging mortality experience primarily in our term universal life insurance product. | ||||||||||||||||||
[4] | 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. | ||||||||||||||||||
[5] | In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. | ||||||||||||||||||
[6] | 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. | ||||||||||||||||||
[7] | Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above, of which the amount attributable to noncontrolling interests was $45 million, net of taxes. | ||||||||||||||||||
[8] | 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, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2017 | [2] | Sep. 30, 2017 | [2] | Jun. 30, 2017 | [2] | Mar. 31, 2017 | [2] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Net income (loss) | $ (327) | $ 210 | $ 249 | $ 165 | $ 265 | $ 175 | $ 271 | $ 216 | $ 297 | $ 927 | $ (67) | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (669) | (187) | 6 | ||||||||||||||||
Net unrealized gains (losses) on other-than- temporarily impaired securities | (2) | 1 | (9) | ||||||||||||||||
Derivatives qualifying as hedges | (298) | (20) | 40 | ||||||||||||||||
Foreign currency translation and other adjustments | (301) | 251 | 54 | ||||||||||||||||
Total other comprehensive income (loss) | (1,270) | 45 | 91 | ||||||||||||||||
Total comprehensive income (loss) | (973) | 972 | 24 | ||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | 22 | 222 | 217 | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | (995) | 750 | (193) | ||||||||||||||||
Reportable Legal Entities | Parent Guarantor | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Net income (loss) | 119 | 817 | (277) | ||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (652) | (178) | 17 | ||||||||||||||||
Net unrealized gains (losses) on other-than- temporarily impaired securities | (2) | 1 | (9) | ||||||||||||||||
Derivatives qualifying as hedges | (298) | (20) | 40 | ||||||||||||||||
Foreign currency translation and other adjustments | (162) | 130 | 36 | ||||||||||||||||
Total other comprehensive income (loss) | (1,114) | (67) | 84 | ||||||||||||||||
Total comprehensive income (loss) | (995) | 750 | (193) | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | (995) | 750 | (193) | ||||||||||||||||
Reportable Legal Entities | Issuer | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Net income (loss) | (380) | 589 | (459) | ||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (602) | (189) | 14 | ||||||||||||||||
Net unrealized gains (losses) on other-than- temporarily impaired securities | (2) | 1 | (6) | ||||||||||||||||
Derivatives qualifying as hedges | (299) | (19) | 39 | ||||||||||||||||
Foreign currency translation and other adjustments | (129) | 109 | (28) | ||||||||||||||||
Total other comprehensive income (loss) | (1,032) | (98) | 19 | ||||||||||||||||
Total comprehensive income (loss) | (1,412) | 491 | (440) | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | (1,412) | 491 | (440) | ||||||||||||||||
Reportable Legal Entities | All Other Subsidiaries | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Net income (loss) | 533 | 1,170 | 450 | ||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (669) | (187) | 7 | ||||||||||||||||
Net unrealized gains (losses) on other-than- temporarily impaired securities | (2) | 1 | (9) | ||||||||||||||||
Derivatives qualifying as hedges | (310) | (19) | 43 | ||||||||||||||||
Foreign currency translation and other adjustments | (301) | 252 | 54 | ||||||||||||||||
Total other comprehensive income (loss) | (1,282) | 47 | 95 | ||||||||||||||||
Total comprehensive income (loss) | (749) | 1,217 | 545 | ||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | 22 | 222 | 217 | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | (771) | 995 | 328 | ||||||||||||||||
Eliminations | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Net income (loss) | 25 | (1,649) | 219 | ||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 1,254 | 367 | (32) | ||||||||||||||||
Net unrealized gains (losses) on other-than- temporarily impaired securities | 4 | (2) | 15 | ||||||||||||||||
Derivatives qualifying as hedges | 609 | 38 | (82) | ||||||||||||||||
Foreign currency translation and other adjustments | 291 | (240) | (8) | ||||||||||||||||
Total other comprehensive income (loss) | 2,158 | 163 | (107) | ||||||||||||||||
Total comprehensive income (loss) | 2,183 | (1,486) | 112 | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 2,183 | $ (1,486) | $ 112 | ||||||||||||||||
[1] | In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. | ||||||||||||||||||
[2] | 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 $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. |
Condensed Consolidating State_2
Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | [2] | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||
Cash flows from (used by) operating activities: | |||||||||||||||||||
Net income | $ (327) | [1] | $ 210 | [1] | $ 249 | [1] | $ 165 | [1] | $ 265 | [2] | $ 175 | [2] | $ 271 | $ 216 | [2] | $ 297 | $ 927 | $ (67) | |
Less (income) loss from discontinued operations, net of taxes | 0 | $ 0 | $ 0 | 0 | $ 9 | 0 | 9 | 29 | |||||||||||
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | |||||||||||||||||||
(Gain) loss on sale of businesses | (26) | ||||||||||||||||||
Amortization of fixed maturity securities discounts and premiums | (122) | (147) | (138) | ||||||||||||||||
Net investment (gains) losses | 146 | (265) | (72) | ||||||||||||||||
Charges assessed to policyholders | (697) | (713) | (782) | ||||||||||||||||
Acquisition costs deferred | (83) | (88) | (150) | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 391 | 435 | 498 | ||||||||||||||||
Deferred income taxes | 5 | (368) | 145 | ||||||||||||||||
Trading securities, limited partnerships and derivative instruments | (249) | 703 | 709 | ||||||||||||||||
Stock-based compensation expense | 37 | 42 | 32 | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | (168) | 30 | (358) | ||||||||||||||||
Insurance reserves | 1,555 | 1,625 | 1,315 | ||||||||||||||||
Current tax liabilities | (52) | (4) | 32 | ||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | 573 | 368 | 705 | ||||||||||||||||
Net cash from (used by) operating activities | 1,633 | 2,554 | 1,872 | ||||||||||||||||
Cash flows from (used by) investing activities: | |||||||||||||||||||
Fixed maturity securities | 3,756 | 4,766 | 3,889 | ||||||||||||||||
Commercial mortgage loans | 701 | 579 | 700 | ||||||||||||||||
Restricted commercial mortgage loans related to securitization entities | 45 | 22 | 32 | ||||||||||||||||
Proceeds from sales of investments: | |||||||||||||||||||
Fixed maturity and equity securities | 6,192 | 4,226 | 5,629 | ||||||||||||||||
Purchases and originations of investments: | |||||||||||||||||||
Fixed maturity and equity securities | (10,706) | (8,888) | (11,529) | ||||||||||||||||
Commercial mortgage loans | (1,047) | (806) | (649) | ||||||||||||||||
Other invested assets, net | 402 | (701) | (154) | ||||||||||||||||
Policy loans, net | 35 | 48 | (77) | ||||||||||||||||
Proceeds from sale of businesses, net of cash transferred | 39 | ||||||||||||||||||
Payments for businesses purchased, net of cash acquired | (5) | ||||||||||||||||||
Net cash from (used by) investing activities | (622) | (759) | (2,120) | ||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Deposits to universal life and investment contracts | 1,193 | 857 | 1,349 | ||||||||||||||||
Withdrawals from universal life and investment contracts | (2,355) | (2,397) | (2,004) | ||||||||||||||||
Redemption and repurchase of non-recourse funding obligations | (1,620) | ||||||||||||||||||
Proceeds from the issuance of long-term debt | 441 | ||||||||||||||||||
Repayment and repurchase of long-term debt | (600) | (382) | |||||||||||||||||
Repayment of borrowings related to securitization entities | (40) | (34) | (42) | ||||||||||||||||
Return of capital to noncontrolling interests | (70) | ||||||||||||||||||
Repurchase of subsidiary shares | (105) | (33) | |||||||||||||||||
Dividends paid to noncontrolling interests | (97) | (107) | (138) | ||||||||||||||||
Other, net | (58) | (54) | (44) | ||||||||||||||||
Net cash from (used by) financing activities | (1,621) | (1,768) | (2,951) | ||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (88) | 64 | (10) | ||||||||||||||||
Net change in cash, cash equivalents and restricted cash | (698) | 91 | (3,209) | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 2,875 | 2,784 | 2,875 | 2,784 | 5,993 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | 2,177 | 2,875 | 2,177 | 2,875 | 2,784 | ||||||||||||||
Reportable Legal Entities | Parent Guarantor | |||||||||||||||||||
Cash flows from (used by) operating activities: | |||||||||||||||||||
Net income | 119 | 817 | (277) | ||||||||||||||||
Less (income) loss from discontinued operations, net of taxes | 1 | ||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | |||||||||||||||||||
Equity in (income) loss from subsidiaries | (151) | (878) | 166 | ||||||||||||||||
Dividends from subsidiaries | 50 | ||||||||||||||||||
Deferred income taxes | 13 | 10 | (6) | ||||||||||||||||
Stock-based compensation expense | 35 | 30 | 23 | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | 5 | (9) | |||||||||||||||||
Current tax liabilities | (35) | 23 | |||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | (13) | (35) | 20 | ||||||||||||||||
Net cash from (used by) operating activities | 18 | (28) | (82) | ||||||||||||||||
Purchases and originations of investments: | |||||||||||||||||||
Capital contributions to subsidiaries | (6) | (12) | |||||||||||||||||
Payments for businesses purchased, net of cash acquired | (7) | ||||||||||||||||||
Net cash from (used by) investing activities | (6) | (19) | |||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Intercompany notes payable | (10) | 48 | 82 | ||||||||||||||||
Other, net | (2) | (1) | |||||||||||||||||
Net cash from (used by) financing activities | (12) | 47 | 82 | ||||||||||||||||
Reportable Legal Entities | Issuer | |||||||||||||||||||
Cash flows from (used by) operating activities: | |||||||||||||||||||
Net income | (380) | 589 | (459) | ||||||||||||||||
Less (income) loss from discontinued operations, net of taxes | (4) | 12 | |||||||||||||||||
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | |||||||||||||||||||
Equity in (income) loss from subsidiaries | 176 | (771) | 53 | ||||||||||||||||
Dividends from subsidiaries | 182 | 148 | 250 | ||||||||||||||||
(Gain) loss on sale of businesses | 1 | ||||||||||||||||||
Amortization of fixed maturity securities discounts and premiums | 5 | 4 | |||||||||||||||||
Net investment (gains) losses | (16) | 14 | 1 | ||||||||||||||||
Deferred income taxes | (105) | 7 | 233 | ||||||||||||||||
Trading securities, limited partnerships and derivative instruments | 17 | (44) | 5 | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | 6 | (41) | 98 | ||||||||||||||||
Current tax liabilities | 13 | (89) | 42 | ||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | 14 | 80 | (43) | ||||||||||||||||
Net cash from (used by) operating activities | (93) | (106) | 197 | ||||||||||||||||
Cash flows from (used by) investing activities: | |||||||||||||||||||
Fixed maturity securities | 150 | ||||||||||||||||||
Purchases and originations of investments: | |||||||||||||||||||
Other invested assets, net | 25 | ||||||||||||||||||
Intercompany notes receivable | (25) | (71) | (82) | ||||||||||||||||
Proceeds from sale of businesses, net of cash transferred | 1 | ||||||||||||||||||
Net cash from (used by) investing activities | (25) | (46) | 69 | ||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Proceeds from the issuance of long-term debt | 441 | ||||||||||||||||||
Repayment and repurchase of long-term debt | (600) | (346) | |||||||||||||||||
Intercompany notes payable | (52) | (8) | |||||||||||||||||
Other, net | (37) | (43) | (46) | ||||||||||||||||
Net cash from (used by) financing activities | (248) | (51) | (392) | ||||||||||||||||
Net change in cash, cash equivalents and restricted cash | (366) | (203) | (126) | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 795 | 998 | 795 | 998 | 1,124 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | 429 | 795 | 429 | 795 | 998 | ||||||||||||||
Reportable Legal Entities | All Other Subsidiaries | |||||||||||||||||||
Cash flows from (used by) operating activities: | |||||||||||||||||||
Net income | 533 | 1,170 | 450 | ||||||||||||||||
Less (income) loss from discontinued operations, net of taxes | 13 | 16 | |||||||||||||||||
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | |||||||||||||||||||
Dividends from subsidiaries | (232) | (148) | (250) | ||||||||||||||||
(Gain) loss on sale of businesses | (27) | ||||||||||||||||||
Amortization of fixed maturity securities discounts and premiums | (122) | (152) | (142) | ||||||||||||||||
Net investment (gains) losses | 162 | (279) | (73) | ||||||||||||||||
Charges assessed to policyholders | (697) | (713) | (782) | ||||||||||||||||
Acquisition costs deferred | (83) | (88) | (150) | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 391 | 435 | 498 | ||||||||||||||||
Deferred income taxes | 97 | (385) | (82) | ||||||||||||||||
Trading securities, limited partnerships and derivative instruments | (266) | 747 | 704 | ||||||||||||||||
Stock-based compensation expense | 2 | 12 | 9 | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | (174) | 66 | (445) | ||||||||||||||||
Insurance reserves | 1,555 | 1,625 | 1,315 | ||||||||||||||||
Current tax liabilities | (30) | 62 | (10) | ||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | 570 | 327 | 723 | ||||||||||||||||
Net cash from (used by) operating activities | 1,706 | 2,692 | 1,754 | ||||||||||||||||
Cash flows from (used by) investing activities: | |||||||||||||||||||
Fixed maturity securities | 3,756 | 4,766 | 3,739 | ||||||||||||||||
Commercial mortgage loans | 701 | 579 | 700 | ||||||||||||||||
Restricted commercial mortgage loans related to securitization entities | 45 | 22 | 32 | ||||||||||||||||
Proceeds from sales of investments: | |||||||||||||||||||
Fixed maturity and equity securities | 6,192 | 4,226 | 5,629 | ||||||||||||||||
Purchases and originations of investments: | |||||||||||||||||||
Fixed maturity and equity securities | (10,706) | (8,888) | (11,529) | ||||||||||||||||
Commercial mortgage loans | (1,047) | (806) | (649) | ||||||||||||||||
Other invested assets, net | 404 | (730) | (151) | ||||||||||||||||
Policy loans, net | 35 | 48 | (77) | ||||||||||||||||
Intercompany notes receivable | 53 | 8 | |||||||||||||||||
Proceeds from sale of businesses, net of cash transferred | 38 | ||||||||||||||||||
Capital contributions to subsidiaries | 6 | 12 | |||||||||||||||||
Payments for businesses purchased, net of cash acquired | 2 | ||||||||||||||||||
Net cash from (used by) investing activities | (561) | (761) | (2,268) | ||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Deposits to universal life and investment contracts | 1,193 | 857 | 1,349 | ||||||||||||||||
Withdrawals from universal life and investment contracts | (2,355) | (2,397) | (2,004) | ||||||||||||||||
Redemption and repurchase of non-recourse funding obligations | (1,620) | ||||||||||||||||||
Repayment and repurchase of long-term debt | (36) | ||||||||||||||||||
Repayment of borrowings related to securitization entities | (40) | (34) | (42) | ||||||||||||||||
Intercompany notes payable | 34 | 23 | |||||||||||||||||
Return of capital to noncontrolling interests | (70) | ||||||||||||||||||
Repurchase of subsidiary shares | (105) | (33) | |||||||||||||||||
Dividends paid to noncontrolling interests | (97) | (107) | (138) | ||||||||||||||||
Other, net | (19) | (10) | 2 | ||||||||||||||||
Net cash from (used by) financing activities | (1,389) | (1,701) | (2,559) | ||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (88) | 64 | (10) | ||||||||||||||||
Net change in cash, cash equivalents and restricted cash | (332) | 294 | (3,083) | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | $ 2,080 | $ 1,786 | 2,080 | 1,786 | 4,869 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ 1,748 | $ 2,080 | 1,748 | 2,080 | 1,786 | ||||||||||||||
Eliminations | |||||||||||||||||||
Cash flows from (used by) operating activities: | |||||||||||||||||||
Net income | 25 | (1,649) | 219 | ||||||||||||||||
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | |||||||||||||||||||
Equity in (income) loss from subsidiaries | (25) | 1,649 | (219) | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | (2) | ||||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | 2 | (4) | 5 | ||||||||||||||||
Net cash from (used by) operating activities | 2 | (4) | 3 | ||||||||||||||||
Purchases and originations of investments: | |||||||||||||||||||
Other invested assets, net | (2) | 4 | (3) | ||||||||||||||||
Intercompany notes receivable | (28) | 63 | 82 | ||||||||||||||||
Net cash from (used by) investing activities | (30) | 67 | 79 | ||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Intercompany notes payable | 28 | (63) | (82) | ||||||||||||||||
Net cash from (used by) financing activities | $ 28 | $ (63) | $ (82) | ||||||||||||||||
[1] | In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. | ||||||||||||||||||
[2] | 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 I Genworth Financial_2
Schedule I Genworth Financial, Inc. Summary of Investments-Other than Investments in Related Parties (Detail) $ in Millions | Dec. 31, 2018USD ($) | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | $ 68,362 | |
Fair value | 0 | |
Carrying value | 70,114 | |
Commercial mortgage loans | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 6,687 | |
Fair value | 0 | |
Carrying value | 6,687 | |
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 | 62 | |
Fair value | 0 | |
Carrying value | 62 | |
Policy Loans | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 1,861 | |
Fair value | 0 | |
Carrying value | 1,861 | |
Other invested assets | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 1,081 | [1] |
Fair value | 0 | [1] |
Carrying value | 1,188 | [1] |
Fixed maturity securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 57,981 | |
Fair value | 59,661 | |
Carrying value | 59,661 | |
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 | 4,175 | |
Fair value | 4,631 | |
Carrying value | 4,631 | |
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 | 2,406 | |
Fair value | 2,552 | |
Carrying value | 2,552 | |
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 | 2,345 | |
Fair value | 2,393 | |
Carrying value | 2,393 | |
Fixed maturity securities | Bonds | Public Utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 5,495 | |
Fair value | 5,716 | |
Carrying value | 5,716 | |
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 | 43,560 | |
Fair value | 44,369 | |
Carrying value | 44,369 | |
Equity Securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 690 | |
Fair value | 655 | |
Carrying value | $ 655 | |
[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 Financia_2
Schedule II Genworth Financial, Inc. (Parent Company Only) (Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Deferred tax asset | $ 1,434 | $ 1,420 | ||
Other assets | 474 | 453 | ||
Total assets | 100,923 | 105,297 | ||
Liabilities and stockholders' equity | ||||
Other liabilities | 1,682 | 1,910 | ||
Total liabilities | 86,734 | 89,969 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-in capital | 11,987 | 11,977 | ||
Net unrealized investment gains (losses) | ||||
Net unrealized gains (losses) on other-than-temporarily impaired securities | 10 | 10 | ||
Net unrealized investment gains (losses) | 595 | 1,085 | $ 1,262 | $ 1,254 |
Derivatives qualifying as hedges | 1,781 | 2,065 | 2,085 | 2,045 |
Foreign currency translation and other adjustments | (332) | (123) | ||
Total accumulated other comprehensive income (loss) | 2,044 | 3,027 | $ 3,094 | $ 3,010 |
Retained earnings | 1,118 | 1,113 | ||
Treasury stock, at cost | (2,700) | (2,700) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 12,450 | 13,418 | ||
Total liabilities and equity | 100,923 | 105,297 | ||
Parent Company | ||||
Assets | ||||
Investments in subsidiaries | 12,570 | 13,561 | ||
Deferred tax asset | 14 | 27 | ||
Other assets | 15 | 3 | ||
Total assets | 12,599 | 13,591 | ||
Liabilities and stockholders' equity | ||||
Other liabilities | 27 | 41 | ||
Intercompany notes payable | 122 | 132 | ||
Total liabilities | 149 | 173 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-in capital | 11,987 | 11,977 | ||
Net unrealized investment gains (losses) | ||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 585 | 1,075 | ||
Net unrealized gains (losses) on other-than-temporarily impaired securities | 10 | 10 | ||
Net unrealized investment gains (losses) | 595 | 1,085 | ||
Derivatives qualifying as hedges | 1,781 | 2,065 | ||
Foreign currency translation and other adjustments | (332) | (123) | ||
Total accumulated other comprehensive income (loss) | 2,044 | 3,027 | ||
Retained earnings | 1,118 | 1,113 | ||
Treasury stock, at cost | (2,700) | (2,700) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 12,450 | 13,418 | ||
Total liabilities and equity | $ 12,599 | $ 13,591 |
Schedule II Genworth Financia_3
Schedule II Genworth Financial, Inc. (Parent Company Only) (Statements of Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||
Revenues: | |||||||||||||||||||
Net investment income | $ 3,262 | $ 3,200 | $ 3,159 | ||||||||||||||||
Total revenues | $ 2,013 | [1] | $ 2,143 | [1] | $ 2,159 | [1] | $ 2,115 | [1] | $ 1,686 | [2] | $ 2,215 | [2] | $ 2,223 | [2] | $ 2,171 | [2] | 8,430 | 8,295 | 8,369 |
Expenses: | |||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 997 | 1,022 | 1,273 | ||||||||||||||||
Interest expense | 299 | 284 | 337 | ||||||||||||||||
Loss before income taxes and equity in income (loss) of subsidiaries | 448 | 729 | 320 | ||||||||||||||||
Benefit from income taxes | 456 | 151 | (207) | 358 | |||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | (9) | 0 | (9) | (29) | |||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (329) | [3] | $ 146 | [3] | $ 190 | [3] | $ 112 | [3] | $ 353 | [4] | $ 107 | [4] | $ 202 | [4] | $ 155 | [4] | 119 | 817 | (277) |
Parent Company | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Net investment income | (3) | (3) | (3) | ||||||||||||||||
Total revenues | (3) | (3) | (3) | ||||||||||||||||
Expenses: | |||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 33 | 57 | 153 | ||||||||||||||||
Interest expense | 2 | 1 | 1 | ||||||||||||||||
Total expenses | 35 | 58 | 154 | ||||||||||||||||
Loss before income taxes and equity in income (loss) of subsidiaries | (38) | (61) | (157) | ||||||||||||||||
Benefit from income taxes | (6) | (47) | |||||||||||||||||
Equity in income (loss) of subsidiaries | 151 | 878 | (166) | ||||||||||||||||
Loss from discontinued operations, net of taxes | (1) | ||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 119 | $ 817 | $ (277) | ||||||||||||||||
[1] | Includes net investment losses of $114 million in the fourth quarter of 2018 primarily from our Canada Mortgage Insurance segment. These losses were primarily related to derivative losses on foreign currency swaps and forwards, and losses on preferred equity securities primarily driven by a decrease in interest rates in Canada during the fourth quarter of 2018. | ||||||||||||||||||
[2] | 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. | ||||||||||||||||||
[3] | In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. | ||||||||||||||||||
[4] | 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 $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. |
Schedule II Genworth Financia_4
Schedule II Genworth Financial, Inc. (Parent Company Only) (Statements of Comprehensive Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2017 | [2] | Sep. 30, 2017 | [2] | Jun. 30, 2017 | [2] | Mar. 31, 2017 | [2] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (327) | $ 210 | $ 249 | $ 165 | $ 265 | $ 175 | $ 271 | $ 216 | $ 297 | $ 927 | $ (67) | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (669) | (187) | 6 | ||||||||||||||||
Derivatives qualifying as hedges | (298) | (20) | 40 | ||||||||||||||||
Foreign currency translation and other adjustments | (301) | 251 | 54 | ||||||||||||||||
Total other comprehensive income (loss) | (1,270) | 45 | 91 | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | (995) | 750 | (193) | ||||||||||||||||
Parent Company [Member] | |||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 119 | 817 | (277) | ||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (652) | (178) | 17 | ||||||||||||||||
Net unrealized gains (losses) on other-than-temporarily impaired securities | (2) | 1 | (9) | ||||||||||||||||
Derivatives qualifying as hedges | (298) | (20) | 40 | ||||||||||||||||
Foreign currency translation and other adjustments | (162) | 130 | 36 | ||||||||||||||||
Total other comprehensive income (loss) | (1,114) | (67) | 84 | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (995) | $ 750 | $ (193) | ||||||||||||||||
[1] | In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. | ||||||||||||||||||
[2] | 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 $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. |
Schedule II Genworth Financia_5
Schedule II Genworth Financial, Inc. (Parent Company Only) (Statements of Cash Flows) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | [2] | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||
Cash flows from (used by) operating activities: | |||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (327) | [1] | $ 210 | [1] | $ 249 | [1] | $ 165 | [1] | $ 265 | [2] | $ 175 | [2] | $ 271 | $ 216 | [2] | $ 297 | $ 927 | $ (67) | |
Less loss from discontinued operations, net of taxes | 0 | $ 0 | $ 0 | 0 | $ 9 | 0 | 9 | 29 | |||||||||||
Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.'s common stockholders to net cash from (used by) operating activities: | |||||||||||||||||||
Deferred income taxes | 5 | (368) | 145 | ||||||||||||||||
Stock-based compensation expense | 37 | 42 | 32 | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | (168) | 30 | (358) | ||||||||||||||||
Current tax liabilities | (52) | (4) | 32 | ||||||||||||||||
Other liabilities and other policy-related balances | 573 | 368 | 705 | ||||||||||||||||
Net cash from (used by) operating activities | 1,633 | 2,554 | 1,872 | ||||||||||||||||
Cash flows from (used by) investing activities: | |||||||||||||||||||
Net cash from (used by) investing activities | (622) | (759) | (2,120) | ||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Other, net | (58) | (54) | (44) | ||||||||||||||||
Net cash from (used by) financing activities | (1,621) | (1,768) | (2,951) | ||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (88) | 64 | (10) | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 2,875 | 2,784 | 2,875 | 2,784 | 5,993 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | 2,177 | 2,875 | 2,177 | 2,875 | 2,784 | ||||||||||||||
Parent Company | |||||||||||||||||||
Cash flows from (used by) operating activities: | |||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 119 | 817 | (277) | ||||||||||||||||
Less loss from discontinued operations, net of taxes | 1 | ||||||||||||||||||
Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.'s common stockholders to net cash from (used by) operating activities: | |||||||||||||||||||
Equity in (income) loss from subsidiaries | (151) | (878) | 166 | ||||||||||||||||
Dividends from subsidiaries | 50 | ||||||||||||||||||
Deferred income taxes | 13 | 10 | (6) | ||||||||||||||||
Stock-based compensation expense | 35 | 30 | 23 | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | 5 | (9) | |||||||||||||||||
Current tax liabilities | (35) | 23 | |||||||||||||||||
Other liabilities and other policy-related balances | (13) | (35) | 20 | ||||||||||||||||
Net cash from (used by) operating activities | 18 | (28) | (82) | ||||||||||||||||
Cash flows from (used by) investing activities: | |||||||||||||||||||
Capital contributions paid to subsidiaries | (6) | (12) | |||||||||||||||||
Payments for business purchased | (7) | ||||||||||||||||||
Net cash from (used by) investing activities | (6) | (19) | |||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Other, net | (2) | (1) | |||||||||||||||||
Intercompany notes payable | (10) | 48 | 82 | ||||||||||||||||
Net cash from (used by) financing activities | (12) | 47 | 82 | ||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | 0 | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | $ 0 | $ 0 | 0 | 0 | 0 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||||
[1] | In the fourth quarter of 2018, our long-term care insurance business recorded a $230 million unfavorable adjustment, net of taxes, related to its annual review of claim reserves, as described above. In addition, our long-term care insurance business recorded a $28 million unfavorable reserve adjustment, net of taxes, related to a refined estimate of unreported policy terminations. Our life insurance business recorded an unfavorable adjustment, net of taxes, of $91 million resulting from its annual review of assumptions, as described above. Our Canada mortgage insurance business recorded net investment losses, net of taxes, of $107 million, as described above. | ||||||||||||||||||
[2] | 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 $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. |
Schedule II Genworth Financia_6
Schedule II Genworth Financial, Inc. (Parent Company Only) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2017 | Oct. 21, 2016 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Financial Statements, Captions [Line Items] | ||||||
Net cash paid for taxes | $ 197 | $ 165 | $ 203 | |||
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 | 14 | 27 | ||||
Current income tax payable | 23 | |||||
Net cash received for taxes | $ 32 | $ 41 | ||||
Deferred tax asset | $ 18 | |||||
TCJA, impact from change in tax rate, percent | 21.00% | |||||
Current income tax receivable | $ 11 | 11 | ||||
Net cash paid for taxes | 16 | |||||
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 Financial
Schedule III Genworth Financial, Inc. Supplemental Insurance Information (Schedule of Supplemental Insurance Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | $ 3,263 | $ 2,329 | |
Future Policy Benefits | 37,940 | 38,472 | |
Policyholder Account Balances | 22,968 | 24,195 | |
Liability for Policy and Contract Claims | 10,379 | 9,594 | |
Unearned Premiums | 3,546 | 3,967 | |
Premium Revenue | 4,519 | 4,004 | $ 4,160 |
Net Investment Income | 3,262 | 3,200 | 3,159 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 6,295 | 5,825 | 5,941 |
Amortization of Deferred Acquisition Costs | 316 | 342 | 481 |
Other Operating Expenses | 1,371 | 1,399 | 1,627 |
Premiums Written | 4,351 | 4,406 | 4,208 |
U.S. Mortgage Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 28 | 28 | |
Liability for Policy and Contract Claims | 296 | 455 | |
Unearned Premiums | 422 | 404 | |
Premium Revenue | 746 | 695 | 660 |
Net Investment Income | 93 | 73 | 63 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 36 | 107 | 160 |
Amortization of Deferred Acquisition Costs | 9 | 10 | 9 |
Other Operating Expenses | 174 | 169 | 170 |
Premiums Written | 764 | 757 | 744 |
Canada Mortgage Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 121 | 131 | |
Liability for Policy and Contract Claims | 84 | 87 | |
Unearned Premiums | 1,533 | 1,700 | |
Premium Revenue | 525 | 519 | 481 |
Net Investment Income | 138 | 132 | 126 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 78 | 54 | 104 |
Amortization of Deferred Acquisition Costs | 40 | 41 | 37 |
Other Operating Expenses | 91 | 100 | 97 |
Premiums Written | 494 | 509 | 576 |
Australia Mortgage Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 39 | 49 | |
Liability for Policy and Contract Claims | 196 | 218 | |
Unearned Premiums | 1,057 | 1,299 | |
Premium Revenue | 373 | (140) | 337 |
Net Investment Income | 67 | 75 | 94 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 110 | 109 | 113 |
Amortization of Deferred Acquisition Costs | 16 | (5) | 13 |
Other Operating Expenses | 101 | 105 | 107 |
Premiums Written | 242 | 231 | 231 |
U.S. Life Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 2,879 | 1,908 | |
Future Policy Benefits | 37,939 | 38,469 | |
Policyholder Account Balances | 19,663 | 21,138 | |
Liability for Policy and Contract Claims | 9,782 | 8,816 | |
Unearned Premiums | 530 | 560 | |
Premium Revenue | 2,867 | 2,922 | 2,670 |
Net Investment Income | 2,781 | 2,755 | 2,726 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 5,877 | 5,386 | 5,387 |
Amortization of Deferred Acquisition Costs | 218 | 272 | 394 |
Other Operating Expenses | 639 | 641 | 695 |
Premiums Written | 2,843 | 2,902 | 2,644 |
Runoff | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 196 | 213 | |
Future Policy Benefits | 1 | 3 | |
Policyholder Account Balances | 3,305 | 3,057 | |
Liability for Policy and Contract Claims | 14 | 11 | |
Unearned Premiums | 4 | 4 | |
Net Investment Income | 174 | 160 | 147 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 189 | 166 | 173 |
Amortization of Deferred Acquisition Costs | 33 | 24 | 28 |
Other Operating Expenses | 57 | 63 | 70 |
Corporate and Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Liability for Policy and Contract Claims | 7 | 7 | |
Premium Revenue | 8 | 8 | 12 |
Net Investment Income | 9 | 5 | 3 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 5 | 3 | 4 |
Other Operating Expenses | 309 | 321 | 488 |
Premiums Written | $ 8 | $ 7 | $ 13 |