Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 17, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001276520 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity Registrant Name | GENWORTH FINANCIAL, INC. | ||
Entity File Number | 001-32195 | ||
Entity Tax Identification Number | 80-0873306 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Address, Address Line One | 6620 West Broad Street | ||
Entity Address, State or Province | VA | ||
Entity Address, City or Town | Richmond | ||
Entity Address, Postal Zip Code | 23230 | ||
Entity Interactive Data Current | Yes | ||
City Area Code | 804 | ||
Local Phone Number | 281-6000 | ||
Trading Symbol | GNW | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Class A Common Stock, par value $.001 per share | ||
Entity Common Stock, Shares Outstanding | 505,794,485 | ||
Entity Public Float | $ 1.2 | ||
ICFR Auditor Attestation Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $55,676 and allowance for credit losses of $4 as of December 31, 2020) | $ 65,790 | $ 60,339 |
Equity securities, at fair value | 476 | 239 |
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4 as of December 31, 2020 and 2019) | 6,774 | 6,976 |
Less: Allowance for credit losses | (31) | (13) |
Commercial mortgage loans, net | 6,743 | 6,963 |
Policy loans | 1,978 | 2,058 |
Other invested assets | 2,253 | 1,632 |
Total investments | 77,240 | 71,231 |
Cash, cash equivalents and restricted cash | 2,656 | 3,341 |
Accrued investment income | 671 | 654 |
Deferred acquisition costs | 1,529 | 1,836 |
Intangible assets and goodwill | 200 | 201 |
Reinsurance recoverable | 16,864 | 17,103 |
Less: Allowance for credit losses | (45) | 0 |
Reinsurance recoverable, net | 16,819 | 17,103 |
Other assets | 444 | 443 |
Deferred tax asset | 107 | 425 |
Separate account assets | 6,081 | 6,108 |
Total assets | 105,747 | 101,342 |
Liabilities and equity | ||
Future policy benefits | 42,695 | 40,384 |
Policyholder account balances | 21,503 | 22,217 |
Liability for policy and contract claims | 11,817 | 10,958 |
Unearned premiums | 1,968 | 1,893 |
Other liabilities | 1,718 | 1,386 |
Non-recourse funding obligations | 0 | 311 |
Long-term borrowings | 3,548 | 3,277 |
Separate account liabilities | 6,081 | 6,108 |
Liabilities related to discontinued operations | 597 | 176 |
Total liabilities | 89,927 | 86,710 |
Commitments and contingencies | ||
Equity: | ||
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 594 million and 592 million shares issued as of December 31, 2020 and 2019, respectively; 506 million and 504 million shares outstanding as of December 31, 2020 and 2019, respectively | 1 | 1 |
Additional paid-in capital | 12,008 | 11,990 |
Accumulated other comprehensive income (loss) | 4,425 | 3,433 |
Retained earnings | 1,584 | 1,461 |
Treasury stock, at cost (88 million shares as of December 31, 2020 and 2019) | (2,700) | (2,700) |
Total Genworth Financial, Inc.'s stockholders' equity | 15,318 | 14,185 |
Noncontrolling interests | 502 | 447 |
Total equity | 15,820 | 14,632 |
Total liabilities and equity | $ 105,747 | $ 101,342 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt securities amortized costs | $ 55,676 | |
Debt securities allowance for credit losses | 4 | |
Unamortized balance of loan origination fees | $ 4 | $ 4 |
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 | 594,000,000 | 592,000,000 |
Class A common stock, shares outstanding | 506,000,000 | 504,000,000 |
Treasury stock, shares | 88,000,000 | 88,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||||
Revenues: | |||||||||||||||||||
Premiums | $ 4,110 | $ 4,037 | $ 3,994 | ||||||||||||||||
Net investment income | 3,260 | 3,220 | 3,121 | ||||||||||||||||
Net investment gains (losses) | 558 | 50 | (9) | ||||||||||||||||
Policy fees and other income | 730 | 789 | 795 | ||||||||||||||||
Total revenues | $ 2,263 | [1] | $ 2,420 | [1] | $ 2,138 | [1] | $ 1,837 | [1] | $ 2,038 | $ 2,020 | $ 1,994 | $ 2,044 | 8,658 | 8,096 | 7,901 | ||||
Benefits and expenses: | |||||||||||||||||||
Benefits and other changes in policy reserves | 5,391 | 5,163 | 5,606 | ||||||||||||||||
Interest credited | 549 | 577 | 611 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 988 | 962 | 943 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 492 | 441 | 348 | ||||||||||||||||
Goodwill impairment | 5 | 0 | 0 | ||||||||||||||||
Interest expense | 202 | 239 | 256 | ||||||||||||||||
Total benefits and expenses | 1,883 | [2] | 1,835 | [2] | 1,990 | [2] | 1,919 | [2] | 1,957 | [3] | 1,848 | [3] | 1,770 | [3] | 1,807 | [3] | 7,627 | 7,382 | 7,764 |
Income from continuing operations before income taxes | 1,031 | 714 | 137 | ||||||||||||||||
Provision for income taxes | 270 | 195 | 70 | ||||||||||||||||
Income (loss) from continuing operations | 296 | [1],[2],[4] | 435 | [1],[2],[4] | 102 | [1],[2],[4] | (72) | [1],[2],[4] | 55 | [5] | 138 | [5] | 158 | [5] | 168 | [5] | 761 | 519 | 67 |
Income (loss) from discontinued operations, net of taxes | (30) | [6] | 1 | [6] | (520) | [6] | 0 | [6] | (31) | [7] | (80) | [7] | 60 | [7] | 62 | [7] | (549) | 11 | 230 |
Net income | 266 | [1],[2],[4],[6] | 436 | [1],[2],[4],[6] | (418) | [1],[2],[4],[6] | (72) | [1],[2],[4],[6] | 24 | [5],[7] | 58 | [5],[7] | 218 | [5],[7] | 230 | [5],[7] | 212 | 530 | 297 |
Less: net income from continuing operations attributable to noncontrolling interests | (1) | 18 | 23 | (6) | 19 | 10 | 15 | 20 | 34 | 64 | 70 | ||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 22 | 30 | 35 | 36 | 0 | 123 | 108 | ||||||||
Net income available to Genworth Financial, Inc.'s common stockholders | 267 | 418 | (441) | (66) | (17) | 18 | 168 | 174 | 178 | 343 | 119 | ||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders: | |||||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 297 | 417 | 79 | (66) | 36 | 128 | 143 | 148 | 727 | 455 | (3) | ||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders | (30) | 1 | (520) | 0 | (53) | (110) | 25 | 26 | (549) | (112) | 122 | ||||||||
Net income available to Genworth Financial, Inc.'s common stockholders | $ 267 | $ 418 | $ (441) | $ (66) | $ (17) | $ 18 | $ 168 | $ 174 | $ 178 | $ 343 | $ 119 | ||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders per share: | |||||||||||||||||||
Basic | $ 0.59 | $ 0.83 | $ 0.16 | $ (0.13) | $ 0.07 | $ 0.25 | $ 0.29 | $ 0.29 | $ 1.44 | $ 0.90 | $ (0.01) | ||||||||
Diluted | 0.58 | 0.82 | 0.15 | (0.13) | 0.07 | 0.25 | 0.28 | 0.29 | 1.42 | 0.89 | (0.01) | ||||||||
Net income available to Genworth Financial, Inc.'s common stockholders per share: | |||||||||||||||||||
Basic | 0.53 | 0.83 | (0.87) | (0.13) | (0.03) | 0.04 | 0.33 | 0.35 | 0.35 | 0.68 | 0.24 | ||||||||
Diluted | $ 0.52 | $ 0.82 | $ (0.86) | $ (0.13) | $ (0.03) | $ 0.04 | $ 0.33 | $ 0.34 | $ 0.35 | $ 0.67 | $ 0.24 | ||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||
Basic | 505.6 | 505.6 | 505.4 | 504.3 | 503.5 | 503.5 | 503.4 | 501.2 | 505.2 | 502.9 | 500.4 | ||||||||
Diluted | 512.5 | [8] | 511.5 | [8] | 512.5 | [8] | 504.3 | [8] | 510.4 | 511.2 | 508.7 | 508.6 | 511.6 | 509.7 | 500.4 | ||||
[1] | In the fourth quarter of 2020, we recorded lower net investment gains as compared to the third quarter of 2020. The higher net investment gains recorded in the third quarter of 2020 related to the sale of available-for-sale fixed maturity securities of $330 million driven primarily from the sale of U.S. government securities due to portfolio rebalancing and asset exposure management as a result of the prolonged low interest rate environment. This decrease to total revenues was partially offset by higher net investment income recorded in the fourth quarter of 2020 largely driven by bond calls and mortgage loan repayments of $40 million and limited partnerships of $38 million. | ||||||||||||||||||
[2] | Given our assumption that COVID-19 has temporarily decreased the number of new claims submitted, our long-term care insurance business strengthened IBNR reserves in the fourth quarter of 2020 by $47 million. Additionally, our long-term care insurance business recorded a $91 million increase to claim reserves reflecting our assumption that COVID-19 accelerated mortality experience on the most vulnerable claimants, leaving the remaining claim population less likely to terminate compared to the pre-pandemic average population. Our U.S. mortgage insurance business recorded an unfavorable reserve adjustment of $37 million primarily due to slowing cure emergence patterns impacting the frequency of claim. Our Australia mortgage insurance business strengthened its loss reserves by $88 million, including its IBNR reserves, due to a refinement in methodology to better align with historical delinquency behavior, as well as to reflect delayed impacts from higher expected delinquencies and the pressured economic conditions caused by COVID-19. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2020. This review resulted in lower total benefits and expenses of $82 million from a net favorable unlocking in our term universal and universal life insurance products largely attributable to a model refinement in our term universal life insurance product related to persistency and grace period timing and lower projected cost of insurance assessments on our universal life insurance products. In addition, we recorded a DAC impairment of $63 million in our universal life insurance products due principally to lower future estimated gross profits. | ||||||||||||||||||
[3] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2019, which resulted in higher total benefits and expenses of $145 million from an unfavorable unlocking in our universal and term universal life insurance products driven mostly by the lower interest rate environment. | ||||||||||||||||||
[4] | In the fourth quarter of 2020, our long-term care insurance business strengthened its reserves by $109 million after-tax. Our U.S. mortgage insurance and Australia mortgage insurance businesses strengthened their loss reserves by $29 million and $62 million, respectively, after-tax. Our life insurance business recorded a $60 million net favorable unlocking, net of taxes, related to its annual review of assumptions. This favorable unlocking in our life insurance business was partially offset by a DAC impairment of $50 million, net of taxes, as a result of recoverability testing. For all of the aforementioned transactions, see above under superscript (2) for additional details. | ||||||||||||||||||
[5] | In the fourth quarter of 2019, our life insurance business recorded a $107 million unfavorable unlocking, net of taxes, related to its annual review of assumptions in our universal and term universal life insurance products, as described above. This unfavorable unlocking in our life insurance business was partially offset by a favorable update of $11 million, net of taxes, in our U.S. mortgage insurance business in connection with a review of its single premium earnings pattern and from a favorable reserve adjustment of $10 million, net of taxes. | ||||||||||||||||||
[6] | In the fourth quarter of 2020, we recorded a loss from discontinued operations, net of taxes, of $30 million principally attributed to foreign currency remeasurement losses of $26 million, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022. See note 23 for additional details on discontinued operations. | ||||||||||||||||||
[7] | In the fourth quarter of 2019, we recorded an after-tax loss of approximately $110 million principally in connection with pending litigation involving our former lifestyle protection insurance business. See note 20 for additional information related to asserted claims regarding the sale of our lifestyle protection insurance business. We completed the sale of Genworth MI Canada Inc. (“Genworth Canada”) on December 12, 2019 and recorded an incremental gain of $43 million in the fourth quarter of 2019 predominantly related to a favorable tax position refinement. In addition, during the fourth quarter of 2019 through the sale closing date of December 12, 2019, we recorded $36 million of income from discontinued operations attributed to Genworth Canada. | ||||||||||||||||||
[8] | Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months ended March 31, 2020, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, RSUs and SARs of 5.4 million would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income | $ 212 | $ 530 | $ 297 |
Other comprehensive income (loss), net of taxes: | |||
Net unrealized gains (losses) on securities without an allowance for credit losses | 764 | 0 | 0 |
Net unrealized gains (losses) on securities with an allowance for credit losses | (6) | 0 | 0 |
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 0 | 846 | (669) |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 2 | (2) |
Derivatives qualifying as hedges | 209 | 221 | (298) |
Foreign currency translation and other adjustments | 55 | 487 | (301) |
Total other comprehensive income (loss) | 1,022 | 1,556 | (1,270) |
Total comprehensive income (loss) | 1,234 | 2,086 | (973) |
Less: comprehensive income attributable to noncontrolling interests | 64 | 354 | 22 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 1,170 | $ 1,732 | $ (995) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Cumulative effect of change in accounting, net of taxes | Common stock | Common stockCumulative effect of change in accounting, net of taxes | Additional paid-in capital | Additional paid-in capitalCumulative effect of change in accounting, net of taxes | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss)Cumulative effect of change in accounting, net of taxes | Retained earnings | Retained earningsCumulative effect of change in accounting, net of taxes | Treasury stock, at cost | Treasury stock, at costCumulative effect of change in accounting, net of taxes | Total Genworth Financial, Inc.'s stockholders' equity | Total Genworth Financial, Inc.'s stockholders' equityCumulative effect of change in accounting, net of taxes | Noncontrolling interests | Noncontrolling interestsCumulative effect of change in accounting, net of taxes |
Balances, beginning at Dec. 31, 2017 | $ 15,328 | $ 17 | $ 1 | $ 0 | $ 11,977 | $ 0 | $ 3,027 | $ 131 | $ 1,113 | $ (114) | $ (2,700) | $ 0 | $ 13,418 | $ 17 | $ 1,910 | $ 0 |
Repurchase of subsidiary shares | (105) | 0 | 0 | 0 | 0 | 0 | 0 | (105) | ||||||||
Comprehensive income (loss): | ||||||||||||||||
Net income | 297 | 0 | 0 | 0 | 119 | 0 | 119 | 178 | ||||||||
Other comprehensive income (loss), net of taxes | (1,270) | 0 | 0 | (1,114) | 0 | 0 | (1,114) | (156) | ||||||||
Total comprehensive income (loss) | (973) | (995) | 22 | |||||||||||||
Dividends to noncontrolling interests | (97) | 0 | 0 | 0 | 0 | 0 | 0 | (97) | ||||||||
Stock-based compensation expense and exercises and other | 19 | 0 | 10 | 0 | 0 | 0 | 10 | 9 | ||||||||
Balances, ending at Dec. 31, 2018 | 14,189 | 1 | 11,987 | 2,044 | 1,118 | (2,700) | 12,450 | 1,739 | ||||||||
Repurchase of subsidiary shares | (44) | 0 | 0 | 0 | 0 | 0 | 0 | (44) | ||||||||
Sale of business that included noncontrolling interests | (1,417) | 0 | 0 | 0 | 0 | 0 | 0 | (1,417) | ||||||||
Comprehensive income (loss): | ||||||||||||||||
Net income | 530 | 0 | 0 | 0 | 343 | 0 | 343 | 187 | ||||||||
Other comprehensive income (loss), net of taxes | 1,556 | 0 | 0 | 1,389 | 0 | 0 | 1,389 | 167 | ||||||||
Total comprehensive income (loss) | 2,086 | 1,732 | 354 | |||||||||||||
Dividends to noncontrolling interests | (197) | 0 | 0 | 0 | 0 | 0 | 0 | (197) | ||||||||
Stock-based compensation expense and exercises and other | 15 | 0 | 3 | 0 | 0 | 0 | 3 | 12 | ||||||||
Balances, ending at Dec. 31, 2019 | 14,632 | $ (55) | 1 | $ 0 | 11,990 | $ 0 | 3,433 | $ 0 | 1,461 | $ (55) | (2,700) | $ 0 | 14,185 | $ (55) | 447 | $ 0 |
Comprehensive income (loss): | ||||||||||||||||
Net income | 212 | 0 | 0 | 0 | 178 | 0 | 178 | 34 | ||||||||
Other comprehensive income (loss), net of taxes | 1,022 | 0 | 0 | 992 | 0 | 0 | 992 | 30 | ||||||||
Total comprehensive income (loss) | 1,234 | 1,170 | 64 | |||||||||||||
Dividends to noncontrolling interests | (9) | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Stock-based compensation expense and exercises and other | 18 | 0 | 18 | 0 | 0 | 0 | 18 | 0 | ||||||||
Balances, ending at Dec. 31, 2020 | $ 15,820 | $ 1 | $ 12,008 | $ 4,425 | $ 1,584 | $ (2,700) | $ 15,318 | $ 502 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 212 | $ 530 | $ 297 |
Less (income) loss from discontinued operations, net of taxes | 549 | (11) | (230) |
Adjustments to reconcile net income to net cash from operating activities: | |||
Amortization of fixed maturity securities discounts and premiums | (138) | (118) | (130) |
Net investment (gains) losses | (558) | (50) | 9 |
Charges assessed to policyholders | (646) | (699) | (697) |
Acquisition costs deferred | (15) | (27) | (42) |
Amortization of deferred acquisition costs and intangibles | 492 | 441 | 348 |
Goodwill impairment | 5 | 0 | 0 |
Deferred income taxes | 268 | 139 | 28 |
Derivative instruments and limited partnerships | (87) | (98) | (260) |
Stock-based compensation expense | 40 | 27 | 35 |
Change in certain assets and liabilities: | |||
Accrued investment income and other assets | (142) | (358) | (166) |
Insurance reserves | 1,217 | 1,259 | 1,555 |
Current tax liabilities | (10) | 26 | 8 |
Other liabilities, policy and contract claims and other policy-related balances | 1,042 | 609 | 598 |
Cash from (used by) operating activities—discontinued operations | (269) | 409 | 280 |
Net cash from operating activities | 1,960 | 2,079 | 1,633 |
Cash flows from (used by) investing activities: | |||
Fixed maturity securities | 3,800 | 3,436 | 3,312 |
Commercial mortgage loans | 744 | 597 | 746 |
Other invested assets | 182 | 153 | 83 |
Proceeds from sales of investments: | |||
Fixed maturity and equity securities | 4,234 | 3,883 | 5,488 |
Purchases and originations of investments: | |||
Fixed maturity and equity securities | (9,386) | (6,899) | (9,386) |
Commercial mortgage loans | (547) | (813) | (1,047) |
Other invested assets | (449) | (476) | (360) |
Short-term investments, net | 79 | (66) | 538 |
Policy loans, net | 190 | 62 | 35 |
Proceeds from sale of business, net of cash transferred | 0 | 1,398 | 0 |
Cash from (used by) investing activities—discontinued operations | 0 | 26 | (31) |
Net cash from (used by) investing activities | (1,153) | 1,301 | (622) |
Cash flows used by financing activities: | |||
Deposits to universal life and investment contracts | 862 | 824 | 1,193 |
Withdrawals from universal life and investment contracts | (2,282) | (2,319) | (2,355) |
Redemption and repurchase of non-recourse funding obligations | (315) | 0 | 0 |
Proceeds from issuance of long-term debt | 766 | 0 | 441 |
Repayment and repurchase of long-term debt | (527) | (446) | (600) |
Repayment of borrowings related to securitization entities | 0 | 0 | (40) |
Repurchase of subsidiary shares | 0 | (22) | (55) |
Dividends paid to noncontrolling interests | (9) | (87) | (40) |
Other, net | (2) | (35) | (56) |
Cash used by financing activities—discontinued operations | 0 | (132) | (109) |
Net cash used by financing activities | (1,507) | (2,217) | (1,621) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash (includes $—, $6 and $(25) related to discontinued operations) | 15 | 1 | (88) |
Net change in cash, cash equivalents and restricted cash | (685) | 1,164 | (698) |
Cash, cash equivalents and restricted cash at beginning of period | 3,341 | 2,177 | 2,875 |
Cash, cash equivalents and restricted cash at end of period | 2,656 | 3,341 | 2,177 |
Less cash, cash equivalents and restricted cash of discontinued operations at end of period | 0 | 0 | 203 |
Cash, cash equivalents and restricted cash of continuing operations at end of period | $ 2,656 | $ 3,341 | $ 1,974 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Cash Flows [Abstract] | |||
Discontinued operations exchange rate effect | $ 0 | $ 6 | $ (25) |
Nature of Business and Formatio
Nature of Business and Formation of Genworth | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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. The accompanying financial statements include on a consolidated basis the accounts of Genworth Financial 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,” “Genworth Financial,” 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 four operating segments: • U.S. Mortgage Insurance. • Australia Mortgage Insurance. • U.S. Life Insurance. • Runoff. In addition to our four 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 23 for additional information related to discontinued operations. Each reporting period, we assess our ability to continue as a going concern for one year from the date the financial statements are issued. As of December 31, 2020, Genworth Holdings has $1,032 million of unrestricted cash and cash equivalents. For the year ended December 31, 2020, our obligations due within one year from the issue date of our audited consolidated financial statements included herein: • Genworth Holdings had senior notes that matured notes that will mature amounts. We • As part of the settlement agreement reached in July 2020 regarding the case titled AXA S.A. v. Genworth Financial International Holdings, LLC et al pre-payments, one-time We also evaluate other conditions and events and their relative significance in relation to our ability to meet our obligations. For example, Genworth Holdings received in the fourth quarter of 2020 intercompany cash tax payments generated primarily from taxable income on investment gains (“COVID-19”), • In 2021, until the secured promissory note to AXA is paid, dividends above $50 million from our U.S. mortgage insurance subsidiaries are subject to mandatory prepayment conditions. In addition, the receipt of dividends and sale proceeds above certain thresholds from our Australian mortgage insurance business are also subject to mandatory prepayment conditions. • On October 21, 2016, we entered into an agreement with China Oceanwide Holdings Group Co., Ltd. (“China Oceanwide”), under which China Oceanwide 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. As part of the transaction, China Oceanwide and/or its affiliates, additionally committed to contribute an aggregate of $1.5 billion to us over time following consummation of the merger. Due to the uncertainty around the completion and timing of the remaining steps required to close the China Oceanwide transaction, on January 4, 2021, Genworth and China Oceanwide agreed that an extension of the then current December 31, 2020 merger agreement end date would not be sought. The consummation of this transaction is dependent on steps outside of our control; accordingly, the associated post-closing capital contributions from China Oceanwide have not been included in this evaluation. In connection with repaying our senior notes maturing in September 2021, Genworth Holdings expects to have a cash shortfall of approximately $15 million which raises doubt about our ability to meet our financial obligations within the next year. While conditions and events occurring and expected to occur raise doubt about our ability to meet our financial obligations, management’s plans alleviate this doubt. We believe that our plans, along with existing cash and cash equivalents, will provide Genworth Holdings sufficient liquidity to meet its obligations and maintain business operations for one year from the issue date of the consolidated financial statements. To address this shortfall and longer-term obligations, as well as build cash buffers, we are actively taking additional steps toward raising capital by preparing for a possible partial public offering of our U.S. mortgage insurance The impact of the ongoing coronavirus pandemic is very difficult to predict. Its related outcomes and impact on our business and the capital markets, and our ability to raise capital will depend on the length of the pandemic, economic impacts of social, global and political influences, and the shape of the economic recovery, among other factors and uncertainties. While these risks exist, we believe we have sufficient funds to meet our obligations for one year following the issuance of our consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Disclosue of Accounting Changes [Abstract] | |
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. The ultimate impact from COVID-19 COVID-19 COVID-19 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 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 loss upon call or prepayment of available-for-sale 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 available-for-sale Allowance for Credit Losses and Impairments on Available-For-Sale On January 1, 2020, we adopted new accounting guidance related to credit losses on financial instruments. Under this new accounting guidance, securities in an unrealized loss position are evaluated to determine whether the decline in fair value is related to credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency/agencies and adverse conditions specifically related to the security, among other factors. If a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis and we have either (i) the intent to sell the security, or (ii) it is more likely than not that we will be required to sell the security prior to recovering the amortized cost, we record a reduction to the security’s amortized cost and recognize the loss in net investment gains (losses) for the difference between the security’s amortized cost and estimated fair value. If neither of the two preceding conditions exist, an allowance for credit losses is recorded and a loss is recognized in net investment gains (losses), limited to the amount that the fair value is less than the amortized cost basis. Losses are written off against the allowance when deemed uncollectible or when we intend to sell or expect we will be required to sell a security prior to recovering its amortized cost. When there is an allowance for credit losses, we reassess the credit losses each balance sheet date and subsequent increases or decreases are recorded as an adjustment to the allowance for credit losses, with a corresponding gain or loss recorded in net investment gains (losses). Estimating the cash flows expected to be collected is a quantitative and qualitative process that incorporates information received from third-party sources along with internal assumptions and judgments. When developing the estimate of cash flows expected to be collected at the individual security level, we utilize an analytical model that provides for various loss scenarios and consider the industry sector, current levels of subordination, geographic location and other relevant characteristics of the security or underlying assets, as well as reasonable and supportable forecasts. We regularly monitor our investment portfolio to ensure that securities with a credit loss are identified in a timely manner and any losses are recognized in the proper period. We exclude accrued interest related to available-for-sale available-for-sale 90 days Prior to the adoption of new accounting guidance related to credit losses on financial instruments on January 1, 2020, we evaluated securities in an unrealized loss position for other-than-temporary impairment as of each balance sheet date. For debt securities, we considered all available information relevant to the collectability of the security, including information about past events, then-current conditions, and reasonable and supportable forecasts, when developing the estimate of cash flows expected to be collected. More specifically for mortgage-backed We recognized other-than-temporary impairments on debt securities in an unrealized loss position when one of the following circumstances exists: • we did not expect full recovery of our amortized cost basis when due, • the present value of cash flows expected to be collected was less than our amortized cost basis, • we intended to sell a security or • it was more likely than not that we would be required to sell a security prior to recovery. For other-than-temporary impairments recognized during the period, we presented the total other-than-temporary comprehensi ve 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 period were calculated as the difference between the amortized cost and fair value. For other-than-temporarily impaired securities where we did not intend to sell the security and it was not more likely than not that we would be required to sell the security prior to recovery, total other-than-temporary impairments were adjusted by the portion of other-than-temporary impairments recognized in OCI (“non-credit”). For securities that were deemed to be other-than-temporarily impaired and a non-credit other-than-temporary To estimate the amount of other-than-temporary impairment attributed to credit losses on debt securities where we did not intend to sell the security and it was not more likely than not that we would be required to sell the security prior to recovery, we determined 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 was lower than the amortized cost of the security, the difference between the present value and amortized cost represented 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 While the other-than-temporary impairment model for debt securities generally included fixed maturity securities, there were certain hybrid securities that are classified as fixed maturity securities where the application of a debt impairment model depended on whether there had 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 have resulted in the application of the equity securities impairment model where we recognized an impairment charge 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 other-than-temporary 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 securities, 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. 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 for which inputs are observable or where those significant value drivers are observable. • Level 3—Instruments for which 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 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 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 principal amounts outstanding, net of unamortized premium or discount, deferred expenses and allowance for credit 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. Loans that are considered uncollectible are carried on non-accrual non-accrual 90 days loan-to-value. non-accrual We determine the adequacy of the allowance for credit losses utilizing an analytical model that provides various loss scenarios based on historical experience adjusted for current events, trends, economic conditions and reasonable and supportable forecasts that result in a loss in the loan portfolio over the estimated life of the loans. We revert to historical credit loss experience for periods beyond forecasts that are reasonable and supportable. The allowance for credit losses is measured on a collective basis with consideration for debt service coverage ratio, debt-to-value, Accrued interest related to commercial mortgage loans is included in accrued investment income in our consolidated balance sheet and had a carrying value of $23 million as of December 31, 2020. We do not measure an allowance for credit losses related to accrued interest as uncollectible accrued interest related to our commercial mortgage loans is written off after 90 days and once collectability is determined to be uncertain and not probable. Amounts written off related to accrued interest are recorded as a credit loss expense included in net investment gains (losses). Prior to the adoption of new accounting guidance related to credit losses on financial instruments on January 1, 2020, we evaluated the impairment of commercial mortgage loans first on an individual loan basis. “Impaired” loans were 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. For individually impaired loans, we recorded an impairment charge when it was probable that a loss has been incurred. The impairment was recorded as an increase in the allowance for loan losses. If an individual loan was not deemed impaired, then we evaluated the remaining loans collectively to determine whether an impairment should be recorded. The allowance for loan losses for loans that were not considered individually impaired that were evaluated collectively was maintained at a level that we determined was adequate to absorb estimated probable incurred losses in the loan portfolio. Our process to determine the adequacy of the allowance utilized 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 included debt service coverage ratios, debt-to-value, g) Securities Lending Activity 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. h) Cash, Cash Equivalents and Restricted Cash Certificates of deposit, money market funds and other highly liquid investments with original maturities of three months or less are considered cash equivalents in the consolidated balance sheets and consolidated statements of cash flows. Items with maturities greater than three months but less than one year at the time of acquisition are generally considered short-term investments. i) 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 in-force 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 available-for-sale Therefore, DAC amortized based on expected gross profits is adjusted to reflect the effects that would have been recognized had the unrealized investment (gains) losses been actually realized with a corresponding amount recorded in other comprehensive income (loss). DAC associated with traditional long-duration insurance contracts is not adjusted for unrealized investment (gains) or losses unless a premium deficiency would have resulted upon the (gain) or loss being realized. Short-Duration Contracts. We regularly review our assumptions and test DAC for recoverability at least annually. For deferred annuity and universal life insurance contracts, if the present value of expected future gross profits is less than the unamortized DAC for a line of business, a charge to net 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 net 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. j) Intangible Assets Present Value of Future Profits. We regularly review our PVFP assumptions and periodically test PVFP for recoverability similar to our treatment of DAC. See note 7 for additional information related to PVFP including recoverability. Deferred Sales Inducements to Contractholders. Other Intangible Assets k) 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. In 2020, we recorded a goodwill impairment charge of $5 million related to our mortgage insurance business in Australia, which represented the full amount of goodwill of that business. No goodwill impairment charges were recorded in 2019 or 2018. As of December 31, 2020, we had no remaining goodwill recorded in our consolidated balance sheet. l) 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. Allowance for Credit Losses on Reinsurance Recoverables On January 1, 2020, we adopted new accounting guidance related to credit losses on financial instruments. Under this new accounting guidance, we record an allowance for credit losses related to reinsurance recoverables. The allowance for credit losses is evaluated based on historical loss experience adjusted for current events and reasonable and supportable forecasts from both internal and external sources. The allowance is measured by reinsurer, taking into consideration the reinsured product type and collateral type, and is calculated based on an externally reported probability of default corresponding to the reinsurer’s credit rating and the expected duration of the reinsurer’s contractual obligation to reimburse us for ceded claims on the underlying policies. Our estimate of the allowance reflects consideration for collateral securing the reinsurance agreements and expected recoveries of amounts previously charged off and expected to be charged off. We also consider other credit risk factors, including, among other factors, the historical frequency and severity of the associated insurance claims, aging of recoverables and regulatory, legal and economic factors, to determine if an additional incremental allowance for credit losses is required. No reversion adjustments are necessary as the starting point for our allowance for credit losses reflects historical loss experience covering the expected duration of the reinsurer’s contractual obligation to reimburse us. If available facts and circumstances indicate the reinsurance recoverable does not reflect expectations consistent with the collective analysis, the reinsurance recoverable is assessed on a separate basis. Write-offs are deducted from the allowance in the period the reinsurance recoverable is determined to be uncollectible. m) 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 net 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 For all qualifying and highly effective cash flow hedges, changes in fair value of the derivative instrument are 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 net 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 net 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 net income (loss) when net 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 net 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 net income (loss). Changes in the fair value of non-qualifying 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 are 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 re-pledge non-cash re-pledged. derivative counterparties. Fixed maturity securities that we pledge as collateral remain on our consolidated balance sheet within fixed maturity securities available-for-sale. n) 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 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. o) Insurance Reserves Future Policy Benefits The liability for future policy benefits is equal to the present value of expected future benefits and expenses, less the present value of expected future net premiums based on assumptions including projected interest rates and 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 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, all of which are locked-in 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 gross premiums are less than the current present value of expected future benefits and expenses (including any unamortized DAC), a charge to net income (loss) is recorded for accelerated DAC amortization and, if necessary, a premium deficiency reserve is established. If a charge is recorded, DAC amortiz |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 2019 2018 Weighted-average common shares used in basic earnings (loss) per share calculations 505.2 502.9 500.4 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 6.4 6.8 — Weighted-average common shares used in diluted earnings (loss) per share calculations (1) 511.6 509.7 500.4 Income from continuing operations: Income from continuing operations $ 761 $ 519 $ 67 Less: net income from continuing operations attributable to noncontrolling interests 34 64 70 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 727 $ 455 $ (3 ) Basic per share $ 1.44 $ 0.90 $ (0.01 ) Diluted per share $ 1.42 $ 0.89 $ (0.01 ) Income (loss) from discontinued operations: Income (loss) from discontinued operations, net of taxes $ (549 ) $ 11 $ 230 Less: net income from discontinued operations attributable to noncontrolling interests — 123 108 Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders $ (549 ) $ (112 ) $ 122 Basic per share $ (1.09 ) $ (0.22 ) $ 0.24 Diluted per share $ (1.07 ) $ (0.22 ) $ 0.24 Net income (loss): Income from continuing operations $ 761 $ 519 $ 67 Income (loss) from discontinued operations, net of taxes (549 ) 11 230 Net income 212 530 297 Less: net income attributable to noncontrolling interests 34 187 178 Net income available to Genworth Financial, Inc.’s common stockholders $ 178 $ 343 $ 119 Basic per share (2) $ 0.35 $ 0.68 $ 0.24 Diluted per share (2) $ 0.35 $ 0.67 $ 0.24 (1) Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the year ended December 31, 2018, 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 3.8 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, 2018, dilutive potential weighted-average common shares outstanding would have been 504.2 million. (2) May not total due to whole number calculation. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments | (4) Investments (a) Net Investment Income Sources of net investment income were as follows for the years ended December 31: (Amounts in millions) 2020 2019 2018 Fixed maturity securities—taxable $ 2,480 $ 2,494 $ 2,456 Fixed maturity securities—non-taxable 6 8 11 Equity securities 13 16 20 Commercial mortgage loans 345 348 327 Policy loans 199 180 169 Other invested assets 295 234 181 Cash, cash equivalents, restricted cash and short-term investments 17 39 48 Gross investment income before expenses and fees 3,355 3,319 3,212 Expenses and fees (95 ) (99 ) (91 ) Net investment income $ 3,260 $ 3,220 $ 3,121 (b) Net Investment Gains (Losses) The following table sets forth net investment gains (losses) for the years ended December 31: (Amounts in millions) 2020 2019 2018 Available-for-sale Realized gains $ 512 $ 107 $ 162 Realized losses (34 ) (39 ) (137 ) Net realized gains (losses) on available-for-sale 478 68 25 Impairments: Total other-than-temporary impairments — (1 ) — Portion of other-than-temporary impairments included in other comprehensive income (loss) — — — Net other-than-temporary impairments — (1 ) — Net change in allowance for credit losses on available-for-sale (5 ) — — Write-down of available-for-sale (1) (4 ) — — Net realized gains (losses) on equity securities sold (1 ) 9 11 Net unrealized gains (losses) on equity securities still held 2 14 (34 ) Limited partnerships 112 29 11 Commercial mortgage loans (2 ) (2 ) — Derivative instruments (2) (17 ) (72 ) (22 ) Other (5 ) 5 — Net investment gains (losses) $ 558 $ 50 $ (9 ) (1) Represents write-down of securities we intend to sell or will be required to sell prior to recovery of the amortized cost basis. (2) See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). See note 2 for a discussion of our policy for evaluating and measuring the allowance for credit losses related to our available-for-sale available-for-sale (Amounts in millions) Beginning Increase from Increase Securities Decrease Write-offs Recoveries Ending Fixed maturity securities: Non-U.S. corporate $ — $ 4 $ (2 ) $ (1 ) $ — $ — $ — $ 1 Commercial mortgage - — 3 — — — — — 3 Total available-for-sale fixed $ — $ 7 $ (2 ) $ (1 ) $ — $ — $ — $ 4 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) 2019 2018 Beginning balance $ 24 $ 32 Reductions: Securities sold, paid down or disposed (2 ) (8 ) Ending balance $ 22 $ 24 (c) Unrealized Investment Gains and Losses Net unrealized gains and losses on available-for-sale (Amounts in millions) 2020 2019 2018 Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses (1) $ 10,159 $ 6,676 $ 1,775 Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses (1) (7 ) — — Adjustments to DAC, PVFP, sales inducements and benefit reserves (7,302 ) (4,789 ) (952 ) Income taxes, net (611 ) (406 ) (190 ) Net unrealized investment gains (losses) 2,239 1,481 633 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 25 25 38 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 2,214 $ 1,456 $ 595 (1) Excludes foreign exchange. The change in net unrealized gains (losses) on available-for-sale (Amounts in millions) 2020 2019 2018 Beginning balance $ 1,456 $ 595 $ 1,085 Cumulative effect of changes in accounting: Stranded tax effects — — 189 Recognition and measurement of financial assets and liabilities, net of taxes of $—, $— and $18 — — (25 ) Total cumulative effect of changes in accounting — — 164 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities 3,950 4,980 (3,327 ) Adjustment to DAC (1) 122 (956 ) 1,182 Adjustment to PVFP (1 ) (49 ) 69 Adjustment to sales inducements (5 ) (32 ) 34 Adjustment to benefit reserves and policyholder contract balances (2) (2,629 ) (2,800 ) 1,208 Provision for income taxes (305 ) (233 ) 181 Change in unrealized gains (losses) on investment securities 1,132 910 (653 ) Reclassification adjustments to net investment (gains) losses, net of taxes of $100, $17 and $5 (374 ) (62 ) (18 ) Change in net unrealized investment gains (losses) 758 848 (671 ) Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests — (13 ) (17 ) Ending balance $ 2,214 $ 1,456 $ 595 (1) See note 6 for additional information. (2) See note 9 for additional information. Amounts reclassified out of accumulated other comprehensive income (loss) to net investment gains (losses) include realized gains (losses) on sales of securities, which are determined on a specific identification basis. (d) Fixed Maturity Securities As of December 31, 2020, the amortized cost or cost, gross unrealized gains (losses), allowance for credit losses and fair value of our fixed maturity securities classified as available-for-sale (Amounts in millions) Amortized Gross Gross Allowance Fair Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 3,401 $ 1,404 $ — $ — $ 4,805 State and political subdivisions 2,627 544 (1 ) — 3,170 Non-U.S. 1,420 144 (5 ) — 1,559 U.S. corporate: Utilities 4,244 970 (2 ) — 5,212 Energy 2,549 367 (16 ) — 2,900 Finance and insurance 7,843 1,307 (2 ) — 9,148 Consumer—non-cyclical 5,147 1,324 (1 ) — 6,470 Technology and communications 3,207 620 — — 3,827 Industrial 1,375 232 — — 1,607 Capital goods 2,466 535 — — 3,001 Consumer—cyclical 1,722 285 — — 2,007 Transportation 1,200 304 (2 ) — 1,502 Other 395 45 — — 440 Total U.S. corporate 30,148 5,989 (23 ) — 36,114 Non-U.S. Utilities 899 84 — — 983 Energy 1,190 209 (1 ) — 1,398 Finance and insurance 2,470 357 (6 ) (1 ) 2,820 Consumer—non-cyclical 712 113 (1 ) — 824 Technology and communications 1,082 229 — — 1,311 Industrial 970 159 — — 1,129 Capital goods 549 68 (1 ) — 616 Consumer—cyclical 356 41 (1 ) — 396 Transportation 520 90 (1 ) — 609 Other 1,582 246 — — 1,828 Total non-U.S. 10,330 1,596 (11 ) (1 ) 11,914 Residential mortgage-backed 1,698 211 — — 1,909 Commercial mortgage-backed 2,759 231 (13 ) (3 ) 2,974 Other asset-backed 3,293 56 (4 ) — 3,345 Total available-for-sale $ 55,676 $ 10,175 $ (57 ) $ (4 ) $ 65,790 As of December 31, 2019, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity securities classified as available-for-sale Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized cost or cost Not other-than- temporarily impaired Other-than- temporarily impaired Not other-than- temporarily impaired Other-than- temporarily impaired Fair value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,073 $ 952 $ — $ — $ — $ 5,025 State 2,394 355 — (2 ) — 2,747 Non-U.S. 1,235 117 — (2 ) — 1,350 U.S. corporate: Utilities 4,322 675 — — — 4,997 Energy 2,404 303 — (8 ) — 2,699 Finance and insurance 6,977 798 — (1 ) — 7,774 Consumer—non-cyclical 4,909 796 — (4 ) — 5,701 Technology and communications 2,883 363 — (1 ) — 3,245 Industrial 1,271 125 — — — 1,396 Capital goods 2,345 367 — (1 ) — 2,711 Consumer—cyclical 1,590 172 — (2 ) — 1,760 Transportation 1,320 187 — (1 ) — 1,506 Other 292 30 — — — 322 Total U.S. corporate 28,313 3,816 — (18 ) — 32,111 Non-U.S. Utilities 779 50 — — — 829 Energy 1,140 179 — — — 1,319 Finance and insurance 2,087 232 — — — 2,319 Consumer—non-cyclical 631 55 — (2 ) — 684 Technology and communications 1,010 128 — — — 1,138 Industrial 896 92 — — — 988 Capital goods 565 40 — — — 605 Consumer—cyclical 373 24 — — — 397 Transportation 557 73 — (1 ) — 629 Other 1,431 188 — (2 ) — 1,617 Total non-U.S. 9,469 1,061 — (5 ) — 10,525 Residential mortgage-backed 2,057 199 15 (1 ) — 2,270 Commercial mortgage-backed 2,897 137 — (8 ) — 3,026 Other asset-backed 3,262 30 — (7 ) — 3,285 Total available-for-sale $ 53,700 $ 6,667 $ 15 $ (43 ) $ — $ 60,339 The following table presents the gross unrealized losses and fair values of our fixed maturity securities for which an allowance for credit losses has not been recorded, 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, 2020: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross unrealized Number Fair Gross unrealized Number Fair Gross unrealized Number Description of Securities Fixed maturity securities: State and political subdivisions $ 28 $ (1 ) 6 $ — $ — — $ 28 $ (1 ) 6 Non-U.S. 135 (5 ) 13 — — — 135 (5 ) 13 U.S. corporate 345 (20 ) 59 33 (3 ) 4 378 (23 ) 63 Non-U.S. 145 (4 ) 32 6 (1 ) 1 151 (5 ) 33 Commercial mortgage-backed 227 (11 ) 34 1 (1 ) 1 228 (12 ) 35 Other asset-backed 238 (2 ) 60 207 (2 ) 48 445 (4 ) 108 Total for fixed maturity securities in an unrealized loss position $ 1,118 $ (43 ) 204 $ 247 $ (7 ) 54 $ 1,365 $ (50 ) 258 % Below cost: <20% Below cost $ 1,108 $ (36 ) 202 $ 246 $ (6 ) 53 $ 1,354 $ (42 ) 255 20%-50% 10 (7 ) 2 1 (1 ) 1 11 (8 ) 3 Total for fixed maturity securities in an unrealized loss position $ 1,118 $ (43 ) 204 $ 247 $ (7 ) 54 $ 1,365 $ (50 ) 258 Investment grade $ 943 $ (24 ) 171 $ 207 $ (2 ) 48 $ 1,150 $ (26 ) 219 Below investment grade 175 (19 ) 33 40 (5 ) 6 215 (24 ) 39 Total for fixed maturity securities in an unrealized loss position $ 1,118 $ (43 ) 204 $ 247 $ (7 ) 54 $ 1,365 $ (50 ) 258 The following table presents the gross unrealized losses and fair values of our corporate securities for which an allowance for credit losses has not been recorded, 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, 202 0 Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross unrealized Number Fair Gross unrealized Number Fair Gross unrealized Number Description of Securities U.S. corporate: Utilities $ 49 $ (2 ) 9 $ — $ — — $ 49 $ (2 ) 9 Energy 106 (13 ) 19 33 (3 ) 4 139 (16 ) 23 Finance and insurance 128 (2 ) 15 — — — 128 (2 ) 15 Consumer—non-cyclical 16 (1 ) 5 — — — 16 (1 ) 5 Transportation 46 (2 ) 11 — — — 46 (2 ) 11 Subtotal, U.S. corporate securities 345 (20 ) 59 33 (3 ) 4 378 (23 ) 63 Non-U.S. Energy 66 (1 ) 10 — — — 66 (1 ) 10 Consumer—non-cyclical — — — 6 (1 ) 1 6 (1 ) 1 Capital goods 31 (1 ) 8 — — — 31 (1 ) 8 Consumer—cyclical 15 (1 ) 6 — — — 15 (1 ) 6 Transportation 33 (1 ) 8 — — — 33 (1 ) 8 Subtotal, non-U.S. 145 (4 ) 32 6 (1 ) 1 151 (5 ) 33 Total for corporate securities in an unrealized loss position $ 490 $ (24 ) 91 $ 39 $ (4 ) 5 $ 529 $ (28 ) 96 We did not recognize an allowance for credit losses on securities in an unrealized loss position included in the tables above. Based on a qualitative and quantitative review of the issuers of the securities, we believe the decline in fair value is largely due to recent market volatility and is not indicative of credit losses. The issuers continue to make timely principal and interest payments. For all securities in an unrealized loss position without an allowance for credit losses, 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 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, 2019: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities Fixed maturity securities: State and political subdivisions $ 91 $ (2 ) 14 $ — $ — — $ 91 $ (2 ) 14 Non-U.S. 224 (2 ) 20 — — — 224 (2 ) 20 U.S. corporate 123 (5 ) 27 302 (13 ) 33 425 (18 ) 60 Non-U.S. 79 (1 ) 12 62 (4 ) 7 141 (5 ) 19 Residential mortgage-backed 22 (1 ) 10 — — — 22 (1 ) 10 Commercial mortgage-backed 381 (5 ) 51 14 (3 ) 3 395 (8 ) 54 Other asset-backed 532 (2 ) 97 439 (5 ) 115 971 (7 ) 212 Total for fixed maturity securities in an $ 1,452 $ (18 ) 231 $ 817 $ (25 ) 158 $ 2,269 $ (43 ) 389 % Below cost: <20% Below cost $ 1,452 $ (18 ) 231 $ 807 $ (20 ) 155 $ 2,259 $ (38 ) 386 20%-50% — — — 10 (5 ) 3 10 (5 ) 3 Total for fixed maturity securities in an $ 1,452 $ (18 ) 231 $ 817 $ (25 ) 158 $ 2,269 $ (43 ) 389 Investment grade $ 1,408 $ (14 ) 223 $ 702 $ (15 ) 145 $ 2,110 $ (29 ) 368 Below investment grade 44 (4 ) 8 115 (10 ) 13 159 (14 ) 21 Total for fixed maturity securities in an $ 1,452 $ (18 ) 231 $ 817 $ (25 ) 158 $ 2,269 $ (43 ) 389 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, 2019: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities U.S. corporate: Energy $ 54 $ (3 ) 10 $ 80 $ (5 ) 10 $ 134 $ (8 ) 20 Finance and insurance — — — 34 (1 ) 4 34 (1 ) 4 Consumer—non-cyclical 34 (1 ) 9 93 (3 ) 9 127 (4 ) 18 Technology and communications — — — 18 (1 ) 2 18 (1 ) 2 Capital goods 35 (1 ) 8 — — — 35 (1 ) 8 Consumer—cyclical — — — 54 (2 ) 6 54 (2 ) 6 Transportation — — — 23 (1 ) 2 23 (1 ) 2 Subtotal, U.S. corporate securities 123 (5 ) 27 302 (13 ) 33 425 (18 ) 60 Non-U.S. Consumer—non-cyclical — — — 31 (2 ) 3 31 (2 ) 3 Transportation — — — 25 (1 ) 3 25 (1 ) 3 Other 79 (1 ) 12 6 (1 ) 1 85 (2 ) 13 Subtotal, non-U.S. 79 (1 ) 12 62 (4 ) 7 141 (5 ) 19 Total for corporate securities in an unrealized loss position $ 202 $ (6 ) 39 $ 364 $ (17 ) 40 $ 566 $ (23 ) 79 The scheduled maturity distribution of fixed maturity securities as of December 31, 2020 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. (Amounts in millions) Amortized Fair Due one year or less $ 1,425 $ 1,447 Due after one year through five years 9,863 10,586 Due after five years through ten years 13,285 15,177 Due after ten years 23,353 30,352 Subtotal 47,926 57,562 Residential mortgage-backed 1,698 1,909 Commercial mortgage-backed 2,759 2,974 Other asset-backed 3,293 3,345 Total $ 55,676 $ 65,790 As of December 31, 2020, securities issued by finance and insurance, consumer—non-cyclical, As of December 31, 2020, 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, 2020 and 2019, securities of $46 million and $44 million, respectively, 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 credit 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: 2020 2019 (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,442 36 % $ 2,590 37 % Industrial 1,638 24 1,670 24 Office 1,567 23 1,632 23 Apartments 529 8 541 8 Mixed use 286 4 281 4 Other 312 5 266 4 Subtotal 6,774 100 % 6,980 100 % Unamortized balance of loan origination fees — (4 ) Allowance for credit losses (31 ) (13 ) Total $ 6,743 $ 6,963 2020 2019 (Amounts in millions) Carrying % of Carrying % of Geographic region: South Atlantic $ 1,711 25 % $ 1,715 25 % Pacific 1,510 22 1,673 24 Middle Atlantic 994 15 992 14 Mountain 781 12 753 11 West North Central 467 7 488 7 East North Central 441 6 455 6 West South Central 423 6 433 6 New England 260 4 257 4 East South Central 187 3 214 3 Subtotal 6,774 100 % 6,980 100 % Unamortized balance of loan origination fees — (4 ) Allowance for credit losses (31 ) (13 ) Total $ 6,743 $ 6,963 As of December 31, 2020 and 2019, all of our commercial mortgage loans were current. For a discussion of our policy related to placing commercial mortgage loans on non-accrual non-accrual During the years ended December 31, 2020 and 2019, we did not have any modifications or extensions that were considered troubled debt restructurings. The following table sets forth the allowance for credit losses related to commercial mortgage loans as of or for the years ended December 31: (Amounts in millions) 2020 2019 2018 Allowance for credit losses: Beginning balance $ 13 $ 9 $ 9 Cumulative effect of change in accounting 16 — — Provision 2 4 — Write-offs — — — Recoveries — — — Ending balance $ 31 $ 13 $ 9 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 debt-to-value debt-to-value indicate risk associated with the loan. A lower debt-to-value one-time non-recurring The following tables set forth commercial mortgage loans by year of origination and credit quality indicator as of December 31, 2020: (Amounts in millions) 2020 2019 2018 2017 2016 2015 and Total Debt-to-value: 0% - 50% $ 60 $ 24 $ 78 $ 154 $ 147 $ 2,182 $ 2,645 51% - 60% 50 89 321 299 164 705 1,628 61% - 75% 431 647 530 270 152 366 2,396 76% - 100% — 23 36 — 11 33 103 Greater than 100% — — — — — 2 2 Total amortized cost $ 541 $ 783 $ 965 $ 723 $ 474 $ 3,288 $ 6,774 Debt service coverage ratio: Less than 1.00 $ 3 $ 8 $ 27 $ 10 $ — $ 168 $ 216 1.00 - 1.25 58 68 54 42 25 279 526 1.26 - 1.50 80 241 204 60 74 333 992 1.51 - 2.00 279 294 446 342 252 977 2,590 Greater than 2.00 121 172 234 269 123 1,531 2,450 Total amortized cost $ 541 $ 783 $ 965 $ 723 $ 474 $ 3,288 $ 6,774 The following tables set forth the debt-to-value 2020 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater Total Property type: Retail $ 913 $ 639 $ 859 $ 29 $ 2 $ 2,442 Industrial 798 351 456 33 — 1,638 Office 523 431 595 18 — 1,567 Apartments 199 86 238 6 — 529 Mixed use 112 47 127 — — 286 Other 100 74 121 17 — 312 Total amortized cost $ 2,645 $ 1,628 $ 2,396 $ 103 $ 2 $ 6,774 % of total 39 % 24 % 35 % 2 % — % 100 % Weighted-average debt service coverage ratio 2.40 1.83 1.61 1.49 0.64 1.97 2019 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater Total Property type: Retail $ 986 $ 579 $ 1,025 $ — $ — $ 2,590 Industrial 808 337 525 — — 1,670 Office 529 380 723 — — 1,632 Apartments 211 110 220 — — 541 Mixed use 104 70 107 — — 281 Other 56 69 141 — — 266 Total recorded investment $ 2,694 $ 1,545 $ 2,741 $ — $ — $ 6,980 % of total 39 % 22 % 39 % — % — % 100 % Weighted-average debt service coverage ratio 2.32 1.81 1.55 — — 1.90 The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of December : 2020 (Amounts in millions) Less 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater Total Property type: Retail $ 55 $ 169 $ 483 $ 969 $ 766 $ 2,442 Industrial 21 85 143 616 773 1,638 Office 101 99 170 634 563 1,567 Apartments 9 24 126 228 142 529 Mixed use 5 24 29 115 113 286 Other 25 125 41 28 93 312 Total amortized cost $ 216 $ 526 $ 992 $ 2,590 $ 2,450 $ 6,774 % of total 3 % 8 % 15 % 38 % 36 % 100 % Weighted-average debt-to-value 57 % 62 % 62 % 57 % 44 % 53 % 2019 Greater (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 than 2.00 Total Property type: Retail $ 68 $ 141 $ 596 $ 1,148 $ 637 $ 2,590 Industrial 24 51 221 658 716 1,670 Office 44 89 277 751 471 1,632 Apartments 16 32 129 175 189 541 Mixed use 4 16 37 107 117 281 Other 34 147 20 31 34 266 Total recorded investment $ 190 $ 476 $ 1,280 $ 2,870 $ 2,164 $ 6,980 % of total 3 % 7 % 18 % 41 % 31 % 100 % Weighted-average debt-to-value 59 % 61 % 63 % 58 % 41 % 54 % (f) 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 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 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
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 some 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 (Amounts in millions) Balance sheet classification 2020 2019 Balance 2020 2019 Derivatives designated as hedges Cash flow hedges: Interest rate swaps Other invested assets $ 468 $ 197 Other liabilities $ 23 $ 10 Foreign currency swaps Other invested assets 1 4 Other liabilities 2 — Total cash flow hedges 469 201 25 10 Total derivatives designated as hedges 469 201 25 10 Derivatives not designated as hedges Equity index options Other invested assets 63 81 Other liabilities — — Financial futures Other invested assets — — Other liabilities — — Other foreign currency contracts Other invested assets 55 8 Other liabilities 1 1 GMWB embedded derivatives Reinsurance (1) 26 20 Policyholder (2) 379 323 Fixed index annuity embedded derivatives Other assets — — Policyholder (3) 399 452 Indexed universal life embedded derivatives Reinsurance — — Policyholder (4) 26 19 Total derivatives not designated as hedges 144 109 805 795 Total derivatives $ 613 $ 310 $ 830 $ 805 (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 embedded derivatives, fixed index annuity embedded derivatives and indexed universal life embedded derivatives, the change between periods is best illustrated by the number of policies. The following tables represent activity associated with derivative instruments as of the dates indicated: (Notional in millions) Measurement December 31, Additions Maturities/ December 31, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 8,968 $ 1,844 $ (2,634 ) $ 8,178 Foreign currency swaps Notional 110 17 — 127 Total cash flow hedges 9,078 1,861 (2,634 ) 8,305 Total derivatives designated as hedges 9,078 1,861 (2,634 ) 8,305 Derivatives not designated as hedges Interest rate swaps Notional 4,674 — — 4,674 Equity index options Notional 2,451 2,053 (2,504 ) 2,000 Financial futures Notional 1,182 5,516 (5,594 ) 1,104 Other foreign currency contracts Notional 628 7,080 (5,937 ) 1,771 Total derivatives not designated as hedges 8,935 14,649 (14,035 ) 9,549 Total derivatives $ 18,013 $ 16,510 $ (16,669 ) $ 17,854 (Number of policies) Measurement December 31, Additions Maturities/ December 31, Derivatives not designated as hedges GMWB embedded derivatives Policies 25,623 — (1,910 ) 23,713 Fixed index annuity embedded derivatives Policies 15,441 — (2,663 ) 12,778 Indexed universal life embedded derivatives Policies 884 — (42 ) 842 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 effects of cash flow hedges for the year ended December 31, 2020: (Amounts in millions) Gain Gain (loss) Classification of Gain (loss) Classification of Interest rate swaps hedging $ 482 $ 196 Net investment $ — Net gains (losses) Interest rate swaps hedging — 12 Net investment — Net investment Interest rate swaps hedging liabilities (38 ) — Interest expense — Net investment Foreign currency swaps (5 ) — Net investment — Net investment Total $ 439 $ 208 $ — The following table provides information about the pre-tax income effects of cash flow hedges for the year ended December 31, 2019: (Amounts in millions) Gain Gain (loss) Classification of gain (loss) net income Gain (loss) Classification of gain (loss) recognized in Interest rate swaps hedging assets $ 456 $ 164 Net investment $ — Net investment Interest rate swaps hedging assets — 6 Net investment — Net investment Interest rate swaps hedging liabilities (36 ) — Interest expense — Net investment Foreign currency swaps (2 ) — Net investment — Net investment Foreign currency swaps — — Net investment 2 Net investment Total $ 418 $ 170 $ 2 The following table provides information about the pre-tax income effects of cash flow hedges for the year ended December 31, 2018: (Amounts in millions) Gain (loss) Gain (loss) net income Classification of gain (loss) reclassified into net Gain (loss) Classification of gain (loss) recognized in Interest rate swaps hedging assets $ (261 ) $ 153 Net investment $ — Net investment Interest rate swaps hedging assets — 9 Net investment — Net investment Interest rate swaps hedging liabilities 16 — Interest expense — Net investment Foreign currency swaps 4 — Net investment — Net investment Total $ (241 ) $ 162 $ — 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) 2020 2019 2018 Derivatives qualifying as effective accounting hedges as of January 1 $ 2,002 $ 1,781 $ 2,065 Cumulative effect of changes in accounting: Stranded tax effects — — 12 Changes to the hedge accounting model, net of deferred taxes of $—, $— and $(1) — — 2 Total cumulative effect of changes in accounting — — 14 Current period increases (decreases) in fair value, net of deferred taxes of $(95), $(87) and $50 344 331 (194 ) Reclassification to net (income), net of deferred taxes of $73, $60 and $58 (135 ) (110 ) (104 ) Derivatives qualifying as effective accounting hedges as of December 31 $ 2,211 $ 2,002 $ 1,781 The total of derivatives designated as cash flow hedges of $2,211 million, net of taxes, recorded in stockholders’ equity as of December 31, 2020 is expected to be reclassified to net income in the future, concurrently with and primarily offsetting changes in interest expense and interest income on floating rate instruments and interest income on future fixed rate bond purchases. Of this amount, $131 million, net of taxes, is expected to be reclassified to net income in the next 12 months. Actual amounts may vary from this amount as a result of market conditions. All forecasted transactions associated with qualifying cash flow hedges are expected to occur by 2057. During the years ended December 31, 2020, 2019 and 2018, we reclassified $15 million, $5 million and $9 million, respectively, to net income in connection with forecasted transactions that were no longer considered probable of occurring. Derivatives Not Designated As Hedges We also enter into certain non-qualifying 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; (iii) foreign currency forward contracts to mitigate currency risk associated with non-functional The following table provides the pre-tax (Amounts in millions) 2020 2019 2018 Classification of gain (loss) recognized Interest rate swaps $ (11 ) $ (3 ) $ 3 Net investment gains (losses) Equity index options 4 43 (34 ) Net investment gains (losses) Financial futures 2 (64 ) 26 Net investment gains (losses) Equity return swaps — — (4 ) Net investment gains (losses) Other foreign currency contracts 38 (8 ) 4 Net investment gains (losses) GMWB embedded derivatives (28 ) 38 (54 ) Net investment gains (losses) Fixed index annuity embedded derivatives (51 ) (90 ) 15 Net investment gains (losses) Indexed universal life embedded derivatives 17 4 13 Net investment gains (losses) Total derivatives not designated as hedges $ (29 ) $ (80 ) $ (31 ) Derivative Counterparty Credit Risk Most of our derivative arrangements with counterparties require the posting of collateral upon meeting certain net exposure thresholds. The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of December 31: 2020 2019 (Amounts in millions) Derivative (1) Derivative (1) Net Derivative (1) Derivative (1) Net Amounts presented in the balance sheet: Gross amounts recognized $ 587 $ 26 $ 561 $ 291 $ 11 $ 280 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 587 26 561 291 11 280 Gross amounts not offset in the balance sheet: Financial instruments (2) (20 ) (20 ) — (7 ) (7 ) — Collateral received (408 ) — (408 ) (179 ) — (179 ) Collateral pledged — (505 ) 505 — (405 ) 405 Over collateralization 2 499 (497 ) 18 401 (383 ) Net amount $ 161 $ — $ 161 $ 123 $ — $ 123 (1) Included $1 million of accruals on derivatives classified as other assets as of December 31, 2019 and does not include amounts related to embedded derivatives as of December 31, 2020 and 2019. (2) Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty. |
Deferred Acquisition Costs
Deferred Acquisition Costs | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 2019 2018 Unamortized balance as of January 1 $ 3,280 $ 3,630 $ 3,868 Impact of foreign currency translation 4 — (4 ) Costs deferred 15 27 42 Amortization, net of interest accretion (448 ) (377 ) (276 ) Unamortized balance as of December 31 2,851 3,280 3,630 Accumulated effect of net unrealized investment (gains) losses (1,322 ) (1,444 ) (488 ) Balance as of December 31 $ 1,529 $ 1,836 $ 3,142 We regularly review DAC to determine if it is recoverable from future income. In 2020, we recorded a DAC impairment of $63 million in our universal life insurance products due principally to lower future estimated gross profits. As of December 31, 2020, all of our other businesses had sufficient future income and therefore the related DAC was recoverable. In 2019 and 2018, we performed loss recognition testing and determined the related DAC was recoverable. See note 9 for additional information related to loss recognition testing. In the fourth quarter of 2020, as part of our annual review of assumptions, we increased DAC amortization by $48 million in our universal and term universal life insurance products predominantly due to changes in expected gross profits driven mostly by lower projected cost of insurance assessments on our universal life insurance products and a model refinement in our term universal life insurance product related to persistency and grace period timing. In the fourth quarter of 2019, as part of our annual review of assumptions, we increased DAC amortization by $58 million in our universal and term universal life insurance products reflecting updated assumptions primarily related to the lower interest rate environment. As of December 31, 2020, 2019 and 2018, shadow accounting adjustments reduced the DAC balance by $1.3 billion, $1.4 billion and $0.5 billion, respectively, with an offsetting amount recorded in other comprehensive income (loss). The higher amounts recorded for the years ended December 31, 2020 and 2019 were primarily due to the decline in interest rates increasing unrealized investment gains. The majority of the shadow accounting adjustments as of December 31, 2020 and 2019 were recorded in our long-term care insurance business, which reduced its DAC balance to zero in each year. As of December 31, 2020 and 2019, our long-term care insurance business recorded shadow accounting adjustments of $1.0 billion and $1.1 billion, respectively, out of the total shadow accounting adjustments recorded of $1.3 billion and $1.4 billion, respectively. There was no impact to net income related to our shadow accounting adjustments. See note 2 for further information related to shadow accounting adjustments. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets | (7) Intangible Assets The following table presents our intangible assets as of December 31: 2020 2019 (Amounts in millions) Gross Accumulated Gross Accumulated PVFP $ 2,065 $ (1,992 ) $ 2,066 $ (1,992 ) Capitalized software 464 (387 ) 487 (403 ) Deferred sales inducements to contractholders 284 (274 ) 288 (258 ) Other 187 (147 ) 138 (130 ) Total $ 3,000 $ (2,800 ) $ 2,979 $ (2,783 ) Amortization expense related to PVFP, capitalized software and other intangible assets for the years ended December 31, 2020, 2019 and 2018 was $44 million, $64 million and $72 million, respectively. Amortization expense related to deferred sales inducements of $16 million, $15 million and $22 million, respectively, for the years ended December 31, 2020, 2019 and 2018 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) 2020 2019 2018 Unamortized balance as of January 1 $ 154 $ 170 $ 187 Interest accreted at 5.19%, 5.56% and 5.60% 8 9 10 Amortization (8 ) (25 ) (27 ) Unamortized balance as of December 31 154 154 170 Accumulated effect of net unrealized investment (gains) losses (81 ) (80 ) (31 ) Balance as of December 31 $ 73 $ 74 $ 139 We regularly review our assumptions and periodically test PVFP for recoverability in a manner similar to our treatment of DAC. As of December 31, 2020, 2019 and 2018 we believe all of our businesses have sufficient future income and therefore the related PVFP is recoverable. The percentage of the December 31, 2020 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: 2021 4.8 % 2022 4.3 % 2023 4.3 % 2024 4.2 % 2025 3.9 % 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, 2020 | |
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 insurance 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. U.S. Life Insurance Companies As of December 31, 2020, 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, an affiliate of our former parent, General Electric Company (“GE”). In the Reinsurance Transactions, we ceded to UFLIC in-force in-force As of December 31, 2020 and 2019, we had a reinsurance recoverable of $13,415 million and $13,752 million, respectively, with UFLIC. 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 $13,188 million and $873 million, respectively, as of December 31, 2020 and $11,874 million and $938 million, respectively, as of December 31, 2019 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 (Amounts in millions) 2020 2019 2018 Direct life insurance in-force $ 509,670 $ 555,252 $ 594,472 Amounts assumed from other companies 624 673 729 Amounts ceded to other companies (1) (458,999 ) (500,965 ) (537,590 ) Net life insurance in-force $ 51,295 $ 54,960 $ 57,611 Percentage of amount assumed to net 1 % 1 % 1 % (1) Includes amounts accounted for under the deposit method. Mortgage Insurance We reinsure a portion of our U.S. mortgage insurance risk in order to obtain credit towards the financial requirements of the government-sponsored enterprise (“GSE”) private mortgage insurer eligibility requirements (“PMIERs”). The transactions are structured as excess of loss coverage where both the attachment and detachment points of the ceded risk tier are within the PMIERs capital requirements at inception. Each reinsurance treaty has a term of 10 years and grants to Genworth a unilateral right to commute prior to the full term, subject to certain performance triggers. On October 22, 2020, our U.S. mortgage insurance business obtained $350 million of excess of loss reinsurance coverage from Triangle Re 2020-1 is a VIE and special purpose insurer domiciled in Bermuda and financed the reinsurance coverage by issuing mortgage insurance-linked notes to unaffiliated investors. The notes are non-recourse to us and our affiliates. The excess of loss reinsurance coverage is fully collateralized by a reinsurance trust account which requires funds received by the trust to be invested in eligible investments in accordance with the reinsurance trust agreement. The collateralized trust serves to cover reinsurance obligations if losses exceed our first loss tier. For the reinsurance coverage, we retain the first layer of aggregate losses up to $ million. Triangle Re provides % reinsurance coverage for losses above our retained first layer up to $ million. On November 25, 2019, our U.S. mortgage insurance business obtained $303 million of excess of loss reinsurance coverage with Triangle Re 2019-1 In our mortgage insurance business in Australia, all of the reinsurance treaties are on an excess of loss basis that are designed to attach under stress loss events. As of December 31, 2020, our Australian mortgage insurance business had five excess of loss treaties, all with a one-year base term with options to extend for five to nine years, with an aggregate coverage limit of AUD$800 million. On January 1, 2021, our mortgage insurance business in Australia renewed its five excess of loss reinsurance treaties with the same base term, extension options and aggregate coverage limit. Premiums Written and Earned The following table sets forth the effects of reinsurance on premiums written and earned for the years ended December 31: Written Earned (Amounts in millions) 2020 2019 2018 2020 2019 2018 Direct: Life insurance $ 795 $ 846 $ 881 $ 795 $ 846 $ 881 Accident and health insurance (1) 2,836 2,792 2,775 2,860 2,821 2,800 Mortgage insurance 1,346 1,157 1,092 1,342 1,239 1,194 Total direct 4,977 4,795 4,748 4,997 4,906 4,875 Assumed: Life insurance 1 1 1 2 1 1 Accident and health insurance (1) 313 321 328 322 326 332 Mortgage insurance 5 5 7 6 8 11 Total assumed 319 327 336 330 335 344 Ceded: Life insurance (558 ) (569 ) (576 ) (559 ) (569 ) (576 ) Accident and health insurance (1) (550 ) (557 ) (566 ) (562 ) (564 ) (571 ) Mortgage insurance (97 ) (64 ) (85 ) (96 ) (71 ) (78 ) Total ceded (1,205 ) (1,190 ) (1,227 ) (1,217 ) (1,204 ) (1,225 ) Net premiums $ 4,091 $ 3,932 $ 3,857 $ 4,110 $ 4,037 $ 3,994 Percentage of amount assumed to net 8 % 8 % 9 % (1) Accident and health insurance is comprised almost entirely of our long-term care insurance products. Reinsurance recoveries recognized as a reduction of benefits and other changes in policy reserves amounted to $2,649 million, $2,751 million and $2,696 million during 2020, 2019 and 2018, respectively. Allowance for Credit Losses on Reinsurance Recoverables The following table sets forth the changes in the allowance for credit losses related to reinsurance recoverables as of or for the year ended December 31, 2020: (Amounts in millions) 2020 Allowance for credit losses: Beginning balance $ — Cumulative effect of change in accounting 40 Provision 5 Write-offs — Recoveries — Ending balance $ 45 As discussed in note 2, our policy for evaluating and measuring the allowance for credit losses related to reinsurance recoverables utilizes the reinsurer’s credit rating, updated quarterly, to assess the credit quality of reinsurance recoverables. The following table sets forth A.M. Best Company, Inc.’s (“A.M. Best”) credit ratings related to our reinsurance recoverables, gross of the allowance for credit losses, as of December 31, 2020: (Amounts in millions) Collateralized Non-collateralized Total Credit rating: A++ $ — $ 519 $ 519 A+ 1,437 1,343 2,780 A 19 45 64 B+ — 1 1 Not rated 13,419 81 13,500 Total reinsurance recoverable $ 14,875 $ 1,989 $ 16,864 In March 2019, upon UFLIC’s request, A.M. Best withdrew UFLIC’s credit rating. There was no impact to us from this action as UFLIC has trust accounts and a guarantee from its parent, as discussed above, and is sufficiently collateralized. Accordingly, the reinsurance recoverable with UFLIC is fully collectible and no allowance for credit losses was recorded as of December 31, 2020. Reinsurance recoverables are considered past due when contractual payments have not been received from the reinsurer by the required payment date. Claims submitted for payment are generally due in less than one year. As of December 31, 2020, we did not have any reinsurance recoverables past due, except for Scottish Re US Inc. (“Scottish Re”), a reinsurance company domiciled in Delaware. On March 6, 2019, Scottish Re was ordered into receivership for the purposes of rehabilitation by the Court of Chancery of the State of Delaware. The proposed Plan of Rehabilitation of Scottish Re was filed on June 30, 2020; however, we expect a revised Plan of Rehabilitation to be filed by March 16, 2021 with any objections required to be submitted by April 15, 2021. We do not know what deadlines will be imposed related to the Court of Chancery’s consideration of the proposed plan and no hearing date has been scheduled. As of December 31, 2020, amounts past due related to Scottish Re were $19 million, all of which was included in the allowance for credit losses. We will continue to monitor the plan of rehabilitation and expected recovery of the claims balance. |
Insurance Reserves
Insurance Reserves | 12 Months Ended |
Dec. 31, 2020 | |
Insurance Reserves | (9) Insurance Reserves Future Policy Benefits The following table sets forth our recorded liabilities and the major assumptions underlying our future policy benefits as of December 31: (Amounts in millions) Mortality/ Interest rate 2020 2019 Long-term care insurance contracts (a ) 3.75% - 7.50% $ 28,770 $ 26,170 Structured settlements with life contingencies (b ) 1.00% - 8.00% 8,240 8,398 Annuity contracts with life contingencies (b ) 1.00% - 8.00% 3,252 3,281 Traditional life insurance contracts (c ) 3.00% - 7.50% 2,101 2,205 Supplementary contracts with life contingencies (b ) 1.00% - 8.00% 332 330 Total future policy benefits $ 42,695 $ 40,384 (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 We regularly review our assumptions and perform loss recognition testing at least annually. Due to the premium deficiencies that existed in previous years, we perform loss recognition testing on our fixed immediate annuity products more frequently than annually. The 2020 test did not result in a premium deficiency and therefore our liability for future policy benefits was sufficient. However, our 2019 and 2018 loss recognition testing resulted in premium deficiencies of $39 million and $22 million, respectively, in our fixed immediate annuity products. The premium deficiencies were primarily driven by the low interest rate environment. 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 As of December 31, 2020 and 2019, we accrued future policy benefit reserves of $625 million and $323 million, respectively, in our consolidated balance sheets for profits followed by losses in our long-term care insurance business. The present value of expected future losses was approximately $2.1 billion and $2.0 billion as of December 31, 2020 and 2019, respectively. As of December 31, 2020, we estimate a factor of approximately 76% of those profits on our long-term care insurance block, excluding the acquired block, will be accrued in the future to offset estimated future losses during later periods. In 2019, we estimated a factor of approximately 80% to ratably accrue additional future policy benefits. The decrease in the factor was mostly driven by higher actual profits in 2020 resulting in a larger increase in accrued future policy benefits for profits followed by losses. This decrease was partially offset by the updated profit pattern from our annual review of assumptions completed in the fourth quarter of 2020, as well as updates to our future in-force Policyholder Account Balances The following table sets forth our recorded liabilities for policyholder account balances as of December 31: (Amounts in millions) 2020 2019 Annuity contracts $ 8,273 $ 9,375 Funding agreements 300 253 Structured settlements without life contingencies 1,114 1,219 Supplementary contracts without life contingencies 576 606 Other 13 13 Total investment contracts 10,276 11,466 Universal and term universal life insurance contracts 11,227 10,751 Total policyholder account balances $ 21,503 $ 22,217 In the fourth quarter of 2020, as part of our annual review of assumptions, we decreased our liability for policyholder account balances by $118 million in our term universal and universal life insurance products primarily due to a model refinement in our term universal life insurance product related to persistency and grace period timing and from lower projected cost of insurance assessments on our universal life insurance products. Other assumption updates mostly focused on long-term trends in mortality, persistency and interest rates. In the fourth quarter of 2019, as part of our annual review of assumptions, we increased our liability for policyholder account balances by $72 million in our universal and term universal life insurance products due principally to the lower interest rate environment. 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, 2020 and 2019, we held $42 million and $43 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 had a letter of credit related to one FHLB which was terminated in 2019. 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. These funding agreements as of December 31, 2020 and 2019 were collateralized by fixed maturity securities with a fair value of $1,309 million and $608 million, respectively. The amount of funding agreements outstanding with the FHLBs was $ million and $ million, respectively, as of December , and which was included in policyholder account balances. Included in the amount of funding agreements outstanding with the FHLBs as of December , and are FHLB agreements entered into by our universal life insurance business of $ million and $ million, respectively, which were included in universal and term universal life insurance contracts in the table above. Shadow Accounting Adjustments As of December 31, 2020 and 2019, we accrued future policy benefit reserves of $4.5 billion and $2.6 billion, respectively, with an offsetting amount recorded in other comprehensive income (loss) related to shadow accounting adjustments. The higher amounts accrued for the year ended December 31, 2020 were primarily due to the decline in interest rates increasing unrealized investment gains. The majority of the shadow accounting adjustments as of December 31, 2020 were recorded in our long-term care insurance business, which comprised $3.7 billion out of the total $4.5 billion accrued. In addition, as of December 31, 2020 and 2019, we accrued policyholder account balances of $1.4 billion and $0.7 billion, respectively, in our universal and term universal life insurance products with an offsetting amount recorded in other comprehensive income (loss) related to shadow accounting adjustments. There was no impact to net income (loss) related to our shadow accounting adjustments. See note 2 for further information related to shadow accounting adjustments. Certain Non-Traditional 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) 2020 2019 Account values with death benefit guarantees (net of reinsurance): Standard death benefits (return of net deposits) account value $ 2,611 $ 2,008 Net amount at risk $ 2 $ 2 Average attained age of contractholders 76 76 Enhanced death benefits (ratchet, rollup) account value $ 1,350 $ 1,986 Net amount at risk $ 105 $ 115 Average attained age of contractholders 76 75 Account values with living benefit guarantees: GMWBs $ 1,999 $ 2,106 Guaranteed annuitization benefits $ 998 $ 1,030 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, 2020 and 2019, our total liability associated with variable annuity contracts with minimum guarantees was approximately $4,668 million and $4,738 million, respectively. Account value decreased from 2019 principally driven by the continued runoff of these products. The liability, net of reinsurance, for our variable annuity contracts with GMDB and guaranteed annuitization benefits was $128 million and $114 million as of December 31, 2020 and 2019, 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, 2020 and 2019, our exposure related to GMWB and guaranteed annuitization benefit contracts that were considered “in the money” was $669 million and $715 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) 2020 2019 Balanced funds $ 2,343 $ 2,446 Equity funds 1,016 1,079 Bond funds 304 385 Money market funds 216 84 Total $ 3,879 $ 3,994 |
Liability for Policy and Contra
Liability for Policy and Contract Claims | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 2019 Liability for policy and contract claims for insurance lines other than short-duration contracts: Long-term care insurance $ 10,518 $ 10,239 Life insurance 378 248 Fixed annuities 12 13 Runoff 12 9 Total 10,920 10,509 Liability for policy and contract claims related to short-duration contracts: U.S. Mortgage Insurance segment 555 233 Australia Mortgage Insurance segment 331 208 Other mortgage insurance businesses 11 8 Total 897 449 Total liability for policy and contract claims $ 11,817 $ 10,958 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 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. In addition, loss reserves recorded on new delinquencies in our U.S. mortgage insurance business have a high degree of estimation, particularly due to the level of uncertainty regarding whether borrowers in forbearance will ultimately cure or result in a claim payment. The increase in the liability for policy and contract claims in 2020 of $322 million in our U.S. mortgage insurance business was principally attributable to a significant increase in the number of new delinquencies driven largely by borrower forbearance resulting from COVID-19. driven by deterioration of early cure emergence patterns impacting 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) 2020 2019 2018 Beginning balance as of January 1 $ 10,239 $ 9,516 $ 8,548 Less reinsurance recoverables (2,283 ) (2,262 ) (2,292 ) Net balance as of January 1 7,956 7,254 6,256 Incurred related to insured events of: Current year 2,595 2,717 2,548 Prior years (398 ) (219 ) 130 Total incurred 2,197 2,498 2,678 Paid related to insured events of: Current year (189 ) (205 ) (201 ) Prior years (2,118 ) (1,975 ) (1,814 ) Total paid (2,307 ) (2,180 ) (2,015 ) Interest on liability for policy and contract claims 412 384 335 Net balance as of December 31 8,258 7,956 7,254 Add reinsurance recoverables 2,260 2,283 2,262 Ending balance as of December 31 $ 10,518 $ 10,239 $ 9,516 The increase in the liability for policy and contract claims of $279 million in our long-term care insurance business was primarily attributable to higher new claims and claim severity as a result of the aging of the in-force Given our assumption that COVID-19 has temporarily decreased the number of new claims submitted, incurred but not reported (“IBNR”) reserves were strengthened million, partially offsetting the favorable development on IBNR claims COVID-19 pre-pandemic fourth quarter of 2020. The favorable impact from our annual claims reserve review primarily related to assumption updates to claim terminations and claim incidence based on our current long-term view of these assumptions. The COVID-19 impacts to our long-term care insurance business are not currently expected to be indicative of future trends or loss performance. In 2020, the favorable development of $398 million related to insured events of prior years was primarily attributable to favorable claim terminations mostly attributable to higher mortality, favorable development on prior year IBNR claims and favorable experience on pending claims that did not become an active claim. These decreases were partially offset by unfavorable impacts from changes in assumptions and methodologies associated with our annual claim reserve review completed in the fourth quarter of 2020 and from higher reserves of $101 million to account for changes to incidence and mortality experience driven by COVID-19, In 2019, the liability for policy and contract claims increased $723 million in our long-term care insurance business. The increase was primarily attributable to new claims as a result of the aging of the in-force In 2019, the favorable development of $219 million related to insured events of prior years was primarily attributable to favorable development on prior year IBNR claims and favorable experience on pending claims that did not become an active claim. In 2018, the liability for policy and contract claims increased $968 million in our long-term care insurance business largely from new claims as a result of the aging of the in-force 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. 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 IBNR liabilities plus expected development on reported claims included within the net incurred claims amounts for our U.S. Mortgage Insurance segment as of December 31, 2020. The information about the incurred claims development for the years ended December 31, 2011 to 2019 and the historical reported delinquencies as of December 31, 2019 and prior are presented as supplementary information. (Dollar amounts in millions) Incurred claims and allocated claim adjustment expenses, net of reinsurance Total of IBNR Number of (2) For the years ended December 31, Accident (1) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Unaudited 2011 $ 910 $ 931 $ 913 $ 929 $ 938 $ 939 $ 939 $ 939 $ 938 $ 939 $ — 69,314 2012 — 718 675 671 673 671 668 667 666 666 — 48,575 2013 — — 475 407 392 387 384 382 381 381 — 34,412 2014 — — — 328 288 269 261 259 258 259 — 26,726 2015 — — — — 235 208 187 181 180 180 — 21,724 2016 — — — — — 198 160 138 136 137 1 19,158 2017 — — — — — — 171 121 102 105 1 19,497 2018 — — — — — — — 117 84 84 1 14,779 2019 — — — — — — — — 106 111 1 15,710 2020 — — — — — — — — — 365 19 38,863 Total incurred $ 3,227 (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, 2020. The information about paid claims development for the years ended December 31, 2011 to 2019 is presented as supplementary information. (Amounts in millions) Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance Accident year (1) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Unaudited 2011 $ 65 $ 497 $ 722 $ 816 $ 874 $ 906 $ 927 $ 935 $ 937 $ 939 2012 — 92 391 532 602 634 650 658 662 663 2013 — — 44 202 297 340 362 372 375 376 2014 — — — 22 127 195 233 247 253 254 2015 — — — — 12 85 145 167 173 175 2016 — — — — — 10 64 110 124 127 2017 — — — — — — 6 46 77 87 2018 — — — — — — — 3 32 48 2019 — — — — — — — — 2 18 2020 — — — — — — — — — 1 Total paid $ 2,688 Total incurred $ 3,227 Total paid 2,688 All outstanding liabilities before 2011 16 Liability for policy and contract claims $ 555 (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, 2020: Average annual percentage payout of incurred claims by age Years 1 2 3 4 5 6 7 8 9 10 Unaudited Percentage of payout 6.6 % 37.6 % 26.8 % 11.1 % 4.6 % 2.3 % 1.2 % 0.5 % 0.2 % 0.1 % Australia 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 IBNR liabilities plus expected development on reported claims included within the net incurred claims amounts for our Australia Mortgage Insurance segment as of December 31, 2020. The information about the incurred claims development for the years ended December 31, 2011 to 2019 and the historical reported delinquencies as of December 31, 2019 and prior are presented as supplementary information. (Dollar (1) Incurred claims and allocated claim adjustment expenses, net of reinsurance Total of Number of (3) For the years ended December 31, Accident (2) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Unaudited 2011 $ 70 $ 133 $ 130 $ 125 $ 123 $ 121 $ 120 $ 120 $ 120 $ 128 $ 3 2,574 2012 — 66 105 93 89 86 86 86 86 93 2 2,102 2013 — — 62 81 70 64 60 61 61 70 3 1,781 2014 — — — 59 82 70 65 63 63 75 5 1,713 2015 — — — — 69 104 87 84 83 103 6 1,787 2016 — — — — — 95 127 114 108 129 13 2,080 2017 — — — — — — 90 123 105 114 12 1,821 2018 — — — — — — — 87 107 107 17 1,903 2019 — — — — — — — — 106 93 47 2,298 2020 — — — — — — — — — 81 49 1,392 Total incurred $ 993 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 202 0 (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, 2020 for each respective accident year. The following table sets forth paid claims development, net of reinsurance, for our Australia Mortgage Insurance segment for the year ended December 31, 2020. The information about paid claims development for the years ended December 31, 2011 to December 31, 2019 is presented as supplementary information: (Amounts in millions) (1) Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance Accident year (2) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Unaudited 2011 $ 4 $ 67 $ 110 $ 118 $ 120 $ 120 $ 120 $ 120 $ 120 $ 121 2012 — 11 61 78 82 83 84 85 86 86 2013 — — 9 35 51 57 59 60 60 62 2014 — — — 6 26 46 58 61 61 64 2015 — — — — 4 28 65 76 79 84 2016 — — — — — 6 51 85 95 103 2017 — — — — — — 9 49 76 85 2018 — — — — — — — 11 46 67 2019 — — — — — — — — 14 40 2020 — — — — — — — — — 5 Total paid $ 717 Total incurred $ 993 Total paid 717 Other (3) 35 All outstanding liabilities before 2011 20 Liability for policy and contract claims $ 331 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2020. (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, 2020: Average annual percentage payout of incurred claims, by age Years 1 2 3 4 5 6 7 8 9 10 Unaudited Percentage of payout 8.4 % 35.5 % 25.8 % 8.9 % 2.9 % 1.6 % 1.2 % 1.1 % 0.5 % 0.6 % |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
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 th e employee’s age, service and eligible pay. Employees are vested in the plan after three years of service. As of December 31, 2020 and 2019, we recorded a liability related to these benefits of $11 million and $12 million, respectively. In addition, certain employees also participate in non-qualified non-qualified 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, 2020 and 2019, the accumulated postretirement benefit obligation associated with these benefits was $77 million and $71 million, respectively, which we accrued in other liabilities in the consolidated balance sheets. In 2020 and 2019, we recognized a decrease of $6 million and $5 million, respectively, in OCI, excluding amounts related to our Canada mortgage insurance business which was classified as held for sale prior to the fourth quarter of 2019. Our cost associated with our pension, retiree health and life insurance benefit plans was $18 million, $19 million and $18 million for the years ended December 31, 2020, 2019 and 2018, respectively. (b) Savings Plans Our domestic employees participate in qualified and non-qualified pre-tax oes two complete years ® Prior to January 2021, employees also had the option of purchasing a fund which invests primarily in Genworth stock as part of the defined contribution savings plan. We had contracted with Newport Trust Company (“Newport”) to act as an independent fiduciary and investment manager with respect to Genworth stock in the defined contribution savings plan. On January 8, 2021, Newport froze the fund due to uncertainty around the closing of the China Oceanwide transaction and the feasibility of executing other strategic plans. Accordingly, future investments or transfers into the fund are no longer permitted. Our cost associated with these plans was $13 million, $13 million and $12 million for the years ended December 31, 2020, 2019 and 2018, respectively. (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 2020, 2019 and 2018. |
Borrowings and Other Financings
Borrowings and Other Financings | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings and Other Financings | (12) Borrowings and Other Financings (a) Long-Term Borrowings The following table sets forth total long-term borrowings as of December 31: (Amounts in millions) 2020 2019 Genworth Holdings 7.70% Senior Notes, due 2020 $ — $ 397 7.20% Senior Notes, due 2021 338 382 7.625% Senior Notes, due 2021 660 701 4.90% Senior Notes, due 2023 400 399 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 2,693 3,174 Bond consent fees (19 ) (25 ) Deferred borrowing charges (9 ) (12 ) Total Genworth Holdings 2,665 3,137 Genworth Mortgage Holdings, Inc. 6.50% Senior Notes, due 2025 750 — Deferred borrowing charges (12 ) — Total Genworth Mortgage Holdings, Inc. 738 — Genworth Financial Mortgage Insurance Pty Limited Floating Rate Junior Subordinated Notes, due 2025 — 140 Floating Rate Junior Subordinated Notes, due 2030 146 — Deferred borrowing charges (1 ) — Total Genworth Financial Mortgage Insurance Pty Limited 145 140 Total $ 3,548 $ 3,277 Genworth Holdings Long-Term Senior Notes On January 21, 2020, Genworth Holdings early redeemed $397 million of its 7.70% senior notes originally scheduled to mature in June 2020 for a pre-tax cash payment of $409 million, comprised of the outstanding principal balance, accrued interest and a make-whole premium of $9 As of December 31, 2020, Genworth Holdings had outstanding five series of fixed rate senior notes with varying interest rates between 4.80% and 7.625% and maturity dates between 2021 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. Genworth Holdings paid its 7.20% senior notes with a principal balance of $338 million at maturity on February 16, 2021. During the year ended December 31, 2020, Genworth Holdings also repurchased $84 million principal amount of its senior notes with 2021 maturity dates for a pre-tax Long-Term Junior Subordinated Notes As of December 31, 2020, 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 6.50% 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. AXA Promissory Note See note 23 for information regarding a secured promissory note issued to AXA and reported as discontinued operations, in which we agreed to make deferred cash payments in two installments in June 2022 Genworth Mortgage Holdings, Inc. On August 21, 2020, Genworth Mortgage Holdings, Inc. (“GMHI”), our wholly-owned U.S. mortgage insurance subsidiary, issued $750 million of its 6.50% senior notes due in 2025 (“2025 Senior Notes”) . Interest on the notes is payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2021. These notes mature on August 15, 2025. GMHI may redeem the notes, in whole or in part, at any time prior to Genworth Financial Mortgage Insurance Pty Limited On July 3, 2020, Genworth Financial Mortgage Insurance Pty Limited (“GFMIPL”), our majority-owned Australia mortgage insurance subsidiary, issued AUD$147 million floating rate subordinated notes due in July 2030 in exchange for AUD$147 million of its floating rate subordinated notes due in July 2025 and issued an additional AUD$43 million floating rate subordinated notes due in July 2030. These notes will pay interest quarterly at a floating rate equal to the three-month Bank Bill Swap reference rate plus a margin of 5.0% per annum on August 24, 2020 and and paid accrued interest ther eon. Following the settlement of these transactions and as of December 31, 2020, GFMIPL had outstanding subordinated floating rate notes having an aggregate principal amount of AUD$190 million, with an interest rate of three-month Bank Bill Swap reference rate plus a margin of 5.0% per annum and a maturity date in July 2030. (b) Non-Recourse As of December 31, 2019, Rivermont Life Insurance Company I (“Rivermont I”), our wholly-owned special purpose consolidated captive insurance subsidiary, had outstanding non-recourse one-month non-recourse In January 2020, upon receipt of approval from the Director of Insurance of the State of South Carolina, Rivermont I redeemed all of its $315 million of outstanding non-recourse pre-tax write-off (c) Liquidity Principal amounts under our long-term borrowings (including senior notes) by maturity were as follows as of December 31, 2020: (Amounts in millions) Amount 2021 $ 997 2022 — 2023 400 2024 400 2025 and thereafter 1,796 Total $ 3,593 (d) Securities lending activity Under our securities lending program, 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. 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, 2020 and 2019, the fair value of securities loaned under our securities lending program was $66 million and $49 million, respectively. As of December 31, 2020 and 2019, the fair value of collateral held under our securities lending program was $67 million and $51 million, respectively, and the offsetting obligation to return collateral of $67 million and $51 million, respectively, was included in other liabilities in the consolidated balance sheets. We did not have any non-cash Risks associated with securities lending programs Our securities lending program exposes 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 agreement. 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 program requires 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 agreement as of December 31: 2020 (Amounts in millions) Overnight and Up to 30 days 31—90 days Greater than Total Securities lending: Fixed maturity securities: Non-U.S. $ 1 $ — $ — $ — $ 1 U.S. corporate 40 — — — 40 Non-U.S. 19 — — — 19 Subtotal, fixed maturity securities 60 — — — 60 Equity securities 7 — — — 7 Total securities lending $ 67 $ — $ — $ — $ 67 2019 (Amounts in millions) Overnight and Up to 30 days 31—90 days Greater than Total Securities lending: Fixed maturity securities: Non-U.S. $ 1 $ — $ — $ — $ 1 U.S. corporate 34 — — — 34 Non-U.S. 16 — — — 16 Subtotal, fixed maturity securities 51 — — — 51 Total securities lending $ 51 $ — $ — $ — $ 51 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | (13) Income Taxes Income from continuing operations before income taxes included the following components for the years ended December 31: (Amounts in millions) 2020 2019 2018 Domestic $ 953 $ 540 $ (57 ) Foreign 78 174 194 Income from continuing operations before income taxes $ 1,031 $ 714 $ 137 The total provision for income taxes was as follows for the years ended December 31: (Amounts in millions) 2020 2019 2018 Current federal income taxes $ 4 $ 6 $ 11 Deferred federal income taxes 230 111 (14 ) Total federal income taxes 234 117 (3 ) Current state income taxes 2 2 1 Deferred state income taxes 2 5 — Total state income taxes 4 7 1 Current foreign income taxes (4 ) 48 30 Deferred foreign income taxes 36 23 42 Total foreign income taxes 32 71 72 Total provision for income taxes $ 270 $ 195 $ 70 Our current income tax payable was $8 million and $19 million as of December 31, 2020 and 2019, respectively. The reconciliation of the federal statutory tax rate to the effective income tax rate was as follows for the years ended December 31: 2020 2019 2018 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Increase (reduction) in rate resulting from: Effect of foreign operations 1.3 2.2 15.3 Swaps terminated prior to the TCJA 2.7 3.3 16.6 Stock-based compensation 0.2 0.1 4.2 Valuation allowance — — (5.4 ) Prior year adjustments 0.2 — (2.4 ) Tax favored investments (0.4 ) (0.6 ) (3.4 ) Nondeductible expenses 0.4 0.5 3.0 Other, net 0.8 0.8 0.2 TCJA, impact from change in tax rate — — 8.8 TCJA, impact on foreign operations — — (7.1 ) Effective rate 26.2 % 27.3 % 50.8 % The effective tax rate for the year ended December 31, 2020 decreased compared to the year ended December 31, 2019 primarily attributable to a lower effect from foreign operations and gains on forward starting swaps settled prior to the enactment of the TCJA, which will continue to be tax effected at 35% as they are amortized into net investment income, in relation to higher pre-tax income in 2020. For the year ended December 31, 2019, the decrease in the effective rate compared to the year ended December 31, 2018 was primarily attributable to higher pre-tax pre-tax foreign operations. The TCJA rate items in 2018 related to estimates made under Staff Accounting Bulletin 118 which did not recur in 2019. The components of our deferred income taxes were as follows as of December 31: (Amounts in millions) 2020 2019 Assets: Foreign tax credit carryforwards $ 136 $ 320 Net operating loss carryforwards 73 129 State income taxes 386 336 Insurance reserves 633 686 Accrued commission and general expenses 114 114 Liabilities associated with discontinued operations 126 37 Investments 20 48 Other 23 42 Gross deferred income tax assets 1,511 1,712 Valuation allowance (412 ) (347 ) Total deferred income tax assets 1,099 1,365 Liabilities: Net unrealized gains on investment securities 601 396 Net unrealized gains on derivatives 70 71 DAC 171 275 PVFP and other intangibles 10 21 Insurance reserves transition adjustment 123 148 Other 17 29 Total deferred income tax liabilities 992 940 Net deferred income tax asset $ 107 $ 425 The above valuation allowances of $412 million and $347 million as of December 31, 2020 and 2019, respectively, related to state deferred tax assets and foreign net operating losses. The state deferred tax assets related primarily to the future deductions associated with the Section 338 elections and non-insurance U.S. federal NOL carryforwards amounted to $185 million as of December 31, 2020, and, if unused, will expire beginning in 2028. The benefits of the NOL carryforwards have been recognized in our consolidated financial statements, except to the extent of the valuation allowances described above relating to state and foreign taxes. Foreign tax credit carryforwards amounted to $136 million as of December 31, 2020, and will begin to expire in 2025. Also included in the net operating loss carryforwards line are foreign NOL carryforwards, fully offset by a valuation allowance. Our ability to realize our net deferred tax asset of $107 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 pre-tax 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 three years on an after-tax IPO-related A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (Amounts in millions) 2020 2019 2018 Balance as of January 1 $ 64 $ 79 $ 42 Tax positions related to the current period: Gross additions — — 2 Gross reductions (3 ) (15 ) (3 ) Tax positions related to the prior years: Gross additions 1 — 40 Gross reductions — — (2 ) Balance as of December 31 $ 62 $ 64 $ 79 The total amount of unrecognized tax benefits was $62 million as of December 31, 2020, which if recognized would affect the effective tax rate on continuing operations by $44 million. These unrecognized tax benefits included the impact of foreign currency translation from our international operations. We believe it is reasonably possible that in 2021, due to the potential resolution of certain potential settlements and other administrative and statutory proceedings and limitations, up to approximately $44 million unrecognized tax benefits will be recognized. 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 2020, 2019 and 2018. Our companies have elected to file a single U.S. consolidated income tax return (the “life/non-life 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 2016. 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 2015. In September 2019, the ATO completed a Streamlined Assurance Review of Genworth Mortgage Insurance Australia Limited (“Genworth Australia”) for the years 2016 and 2017, where Genworth Australia obtained a high level of assurance that the right Australian income tax outcomes were reported in Genworth Australia’s income tax returns for 2016 and 2017. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information | (14) Supplemental Cash Flow Information Net cash paid for taxes was $12 million, $31 million and $33 million and cash paid for interest was $196 million, $292 million and $309 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
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”) 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. The 2004 Omnibus Incentive Plan together with the 2012 Omnibus Incentive Plan and the 2018 Omnibus Incentive Plan are referred to collectively as the “Omnibus Incentive Plans.” We recorded stock-based compensation expense under the Omnibus Incentive Plans of $39 million, $26 million and $35 million, respectively, for the years ended December 31, 2020, 2019 and 2018. 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 2020, 2019 and 2018 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 2020, 2019 and 2018, we issued RSUs with average restriction periods of three years, with a fair value of $3.53, $3.36 and $3.58, respectively, which were measured at the market price of a share of our Class A Common Stock on the grant date. During 2020, 2019 and 2018, we granted performance stock units (“PSUs”) with a fair value of $3.03, $4.61 and $3.58, respectively. The PSUs were granted at market price as of the approval date by our Board of Directors. PSUs may be earned over a three-year period based upon the achievement of certain performance goals. The PSUs granted in 2020 have a three-year measurement period starting on January 1, 2020 going through December 31, 2022. The performance metrics are based on adjusted operating income of our U.S. Mortgage Insurance and Australia Mortgage Insurance segments and gross incremental annual premiums in our long-term care insurance business, defined as approved weighted-average premium rate increases multiplied by the annualized in-force The PSUs granted in 2019 have a three-year measurement period starting on January 1, 2019 going through December 31, 2021. The performance metric is based on consolidated adjusted operating income. The PSUs granted in 2018 have three separate and distinct performance measurement periods starting on January 1 going through December 31 for the years ended December 31, 2018, 2019 and 2020, respectively. The performance metric is based on a range of consolidated annual adjusted operating income. For all PSU awards granted, 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 for each applicable performance period, the number of units earned and vested for each distinct performance period. For the years ended December 31, 2020, 2019 and 2018, we recorded $18 million, $5 million and $7 million, respectively, of expense associated with our PSUs. In 2020, 2019 and 2018, we granted cash awards with a fair value of $1.00. We have time-based cash awards, which vest over three years, with a third 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, 2020 and 2019: (Number of awards, in millions) Time-based Performance-based Balance as of January 1, 2019 24 17 Granted 16 — Performance adjustment — 1 Vested (12 ) (4 ) Forfeited (2 ) (1 ) Balance as of January 1, 2020 26 13 Granted 17 — Performance adjustment — 1 Vested (11 ) (5 ) Forfeited (2 ) (2 ) Balance as of December 31, 2020 30 7 The following table summarizes stock option activity as of December 31, 2020 and 2019: (Shares in thousands) Shares subject Weighted-average Balance as of January 1, 2019 1,118 $ 11.77 Granted — $ — Exercised (200 ) $ 2.46 Expired and forfeited (117 ) $ 11.30 Balance as of January 1, 2020 801 $ 14.17 Granted — $ — Exercised — $ — Expired and forfeited (800 ) $ 14.17 Balance as of December 31, 2020 1 $ 12.75 Exercisable as of December 31, 2020 1 $ 12.75 The following table summarizes information about stock options outstanding as of December 31, 2020: Outstanding and exercisable Exercise/Average price Shares in Average (1) $12.75 (2) 1 0.11 1 (1) Average contractual life remaining in years. (2) Shares for both options outstanding and exercisable have no aggregate intrinsic value. The following tables summarize the status of our other equity-based awards as of December 31, 2020 and 2019: RSUs PSUs DSUs SARs (Awards in thousands) Number Weighted- Number Weighted- Number Weighted- Number Weighted- Balance as of January 1, 2019 2,356 $ 4.14 4,930 $ 3.30 1,266 $ 4.76 8,627 $ 3.42 Granted 1,737 $ 3.36 2,852 $ 4.61 265 $ 2.71 — $ — Performance adjustment (1) — $ — 495 $ 2.81 — $ — — $ — Exercised (1,401 ) $ 4.32 (3,100 ) $ 2.81 (16 ) $ 7.45 (50 ) $ 1.28 Terminated (17 ) $ 7.38 (35 ) $ 2.81 — $ — (426 ) $ 3.70 Balance as of January 1, 2020 2,675 $ 3.51 5,142 $ 4.28 1,515 $ 4.37 8,151 $ 3.41 Granted 1,683 $ 3.53 2,789 $ 3.03 237 $ 2.00 — $ — Performance adjustment (1) — $ — 443 $ 4.01 — $ — — $ — Exercised (1,336 ) $ 3.62 (1,994 ) $ 4.01 (215 ) $ 4.76 — $ — Terminated (488 ) $ 3.47 (646 ) $ 3.86 — $ — (1,121 ) $ 3.99 Balance as of December 31, 2020 2,534 $ 3.48 5,734 $ 3.79 1,537 $ 3.95 7,030 $ 3.32 (1) The performance adjustment relates to additional awards expected to be earned through the achievement of certain performance metrics. As of December 31, 2020 and 2019, total unrecognized stock-based compensation expense related to non-vested In 2020, there were no stock options exercised. In 2019, there was less than $1 million in cash received from stock options exercised. 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 $5 million as of December 31, 2020 and 2019, respectively. 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, 2020 and 2019: (Shares subject to option, in thousands) Restricted share rights Long - incentive Balance as of January 1, 2019 427 1,827 Granted 285 801 Exercised (348 ) (163 ) Terminated (29 ) (576 ) Balance as of January 1, 2020 335 1,889 Granted 153 535 Exercised (322 ) (178 ) Terminated (8 ) (1,077 ) Balance as of December 31, 2020 158 1,169 As of December 31, 2020 and 2019, none of the restricted share rights balances were vested. For the years ended December 31, 2020 and 2019, we recorded $1 million of stock-based compensation in each year. For the year ended December 31, 2018, we recorded less than $1 million of stock-based compensation. We also estimated total unrecognized expense of less than $1 million in each year for the years ended December 31, 2020, 2019 and 2018 related to these awards. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value of Financial Instruments | (16) Fair Value of Financial Instruments Recurring Fair Value Measurements We have fixed maturity securities, 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. Fixed maturity, short-term investments and equity securities The fair value of fixed maturity securities, 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, that security is valued using market information for similar securities, which is also a market approach. When market information is not available for a specific security (or similar securities) 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. Further, 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. In general, we first obtain valuations from pricing services. If prices are unavailable for public securities, 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 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 similar securities are not readily observable and these securities are not typically valued by pricing services. 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. 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 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. 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, a significant increase (decrease) in credit spreads would have resulted in a significant decrease (increase) in the fair value for our fixed maturity securities as of December 31, 2020. For remaining securities priced using internal models, we determine fair value using an income approach. We maximize the use of observable inputs but typically utilize significant unobservable inputs to determine fair value. Accordingly, the valuations are typically classified as Level 3. Our assessment of whether or not there were significant unobservable inputs related to fixed maturity securities was based on our observations obtained through the course of managing our investment portfolio, including interaction with other market participants, observations related to the availability and consistency of pricing and/or rating, and understanding of general market activity such as new issuance and the level of secondary market trading for a class of securities. Additionally, we considered data obtained from pricing services to determine whether our estimated values incorporate significant unobservable inputs that would result in the valuation being classified as Level 3. A summary of the inputs used for our fixed maturity securities, short-term investments Level 1 measurements Equity securities. securities Separate account assets. assets based on quoted Level 2 measurements Fixed maturity securities • Third-party pricing services: estimating approximatel understanding methodologies The (Amounts in millions) Fair Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $4,805 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 $3,104 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. $1,559 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 $32,367 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, 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. $9,604 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 $1,895 OAS-based 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 $2,954 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 swap curves, TRACE reports Other asset-backed $ Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers Spreads to daily updated swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports • Internal models: non-U.S. corporate 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 pricing services. Short-term investments The fair value of short-term investments classified as Level 2 is determined after considering prices obtained by pricing services. Level 3 measurements Fixed maturity securities • Broker quotes: non-U.S. Brokers utilized for valuation of assets are reviewed annually. The fair value of our Level 3 fixed maturity securities priced by broker quotes was $730 million as of December 31, 2020. • Internal models: non-U.S. Equity securities. Net asset value 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”) from the underlying fund statements as a practical expedient for fair value. Derivatives We consider counterparty collateral arrangements and rights of set-off non-performance non-performance non-performance Interest rate swaps. Foreign currency swaps. Equity index options. Financial futures. Other foreign currency contracts. GMWB embedded derivatives We are required to bifurcate an embedded derivative for certain features associated with annuity products and related reinsurance agreements where we provide a GMWB to the policyholder and are required to record the GMWB embedded derivative at fair value. The valuation of our GMWB embedded derivative is based on an income approach that incorporates inputs such as forward interest rates, equity index volatility, equity index and fund correlation, and policyholder assumptions such as utilization, lapse and mortality. We determine fair value using an internal model based on the various inputs noted above. Non-performance non-performance non-performance We classify the GMWB valuation as Level 3 based on having significant unobservable inputs, with equity index volatility and non-performance non-performance Fixed index annuity embedded derivatives We have fixed indexed annuity products where interest is credited to the policyholder’s account balance based on equity index changes. This feature is required to be bifurcated as an embedded derivative and recorded at fair value. Fair value is determined using an income approach where the present value of the excess cash flows above the guaranteed cash flows is used to determine the value attributed to the equity index feature. The inputs used in determining the fair value include policyholder behavior (lapses and withdrawals), near-term equity index volatility, expected future interest credited, forward interest rates and an adjustment to the discount rate to incorporate non-performance Indexed universal life embedded derivatives We have indexed universal life insurance 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 The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of December 31: 2020 (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 $ 4,805 $ — $ 4,805 $ — $ — State and political subdivisions 3,170 — 3,104 66 — Non-U.S. 1,559 — 1,559 — — U.S. corporate: Utilities 5,212 — 4,370 842 — Energy 2,900 — 2,772 128 — Finance and insurance 9,148 — 8,541 607 — Consumer—non-cyclical 6,470 — 6,361 109 — Technology and communications 3,827 — 3,780 47 — Industrial 1,607 — 1,567 40 — Capital goods 3,001 — 2,941 60 — Consumer—cyclical 2,007 — 1,857 150 — Transportation 1,502 — 1,432 70 — Other 440 — 221 219 — Total U.S. corporate 36,114 — 33,842 2,272 — Non-U.S. Utilities 983 — 631 352 — Energy 1,398 — 1,153 245 — Finance and insurance 2,820 — 2,515 305 — Consumer—non-cyclical 824 — 757 67 — Technology and communications 1,311 — 1,283 28 — Industrial 1,129 — 1,034 95 — Capital goods 616 — 438 178 — Consumer—cyclical 396 — 250 146 — Transportation 609 — 500 109 — Other 1,828 — 1,745 83 — Total non-U.S. 11,914 — 10,306 1,608 — Residential mortgage-backed 1,909 — 1,895 14 — Commercial mortgage-backed 2,974 — 2,954 20 — Other asset-backed 3,345 — 3,236 109 — Total fixed maturity securities 65,790 — 61,701 4,089 — Equity securities 476 276 149 51 — Other invested assets: Derivative assets: Interest rate swaps 468 — 468 — — Foreign currency swaps 1 — 1 — — Equity index options 63 — — 63 — Other foreign currency contracts 55 — 55 — — Total derivative assets 587 — 524 63 — Securities lending collateral 67 — 67 — — Short-term investments 159 25 134 — — Limited partnerships 835 — — — 835 Total other invested assets 1,648 25 725 63 835 Reinsurance recoverable (2) 26 — — 26 — Separate account assets 6,081 6,081 — — — Total assets $ 74,021 $ 6,382 $ 62,575 $ 4,229 $ 835 (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. 2019 (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 $ 5,025 $ — $ 5,025 $ — $ — State and political subdivisions 2,747 — 2,645 102 — Non-U.S. 1,350 — 1,350 — — U.S. corporate: Utilities 4,997 — 4,132 865 — Energy 2,699 — 2,570 129 — Finance and insurance 7,774 — 7,202 572 — Consumer—non-cyclical 5,701 — 5,607 94 — Technology and communications 3,245 — 3,195 50 — Industrial 1,396 — 1,356 40 — Capital goods 2,711 — 2,609 102 — Consumer—cyclical 1,760 — 1,587 173 — Transportation 1,506 — 1,428 78 — Other 322 — 186 136 — Total U.S. corporate 32,111 — 29,872 2,239 — Non-U.S. Utilities 829 — 455 374 — Energy 1,319 — 1,072 247 — Finance and insurance 2,319 — 2,085 234 — Consumer—non-cyclical 684 — 625 59 — Technology and communications 1,138 — 1,110 28 — Industrial 988 — 884 104 — Capital goods 605 — 444 161 — Consumer—cyclical 397 — 250 147 — Transportation 629 — 438 191 — Other 1,617 — 1,477 140 — Total non-U.S. 10,525 — 8,840 1,685 — Residential mortgage-backed 2,270 — 2,243 27 — Commercial mortgage-backed 3,026 — 3,020 6 — Other asset-backed 3,285 — 3,153 132 — Total fixed maturity securities 60,339 — 56,148 4,191 — Equity securities 239 62 126 51 — Other invested assets: Derivative assets: Interest rate swaps 197 — 197 — — Foreign currency swaps 4 — 4 — — Equity index options 81 — — 81 — Other foreign currency contracts 8 — 8 — — Total derivative assets 290 — 209 81 — Securities lending collateral 51 — 51 — — Short-term investments 211 — 211 — — Limited partnerships 503 — — — 503 Total other invested assets 1,055 — 471 81 503 Reinsurance recoverable (2) 20 — — 20 — Separate account assets 6,108 6,108 — — — Total assets $ 67,761 $ 6,170 $ 56,745 $ 4,343 $ 503 (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. The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: Beginning Total realized and Ending as of Total gains (losses) (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Included Included Fixed maturity securities: State and political subdivisions $ 102 $ 3 $ (11 ) $ — $ — $ — $ (1 ) $ — $ (27 ) $ 66 $ 3 $ (11 ) Non-U.S. — — — — — — (1 ) 1 — — — — U.S. corporate: Utilities 865 9 8 76 (13 ) — (56 ) 42 (89 ) 842 — 14 Energy 129 1 1 30 (21 ) — (21 ) 22 (13 ) 128 — (3 ) Finance and insurance 572 2 16 167 — — (41 ) — (109 ) 607 — 19 Consumer—non-cyclical 94 — 4 8 — — (22 ) 25 — 109 — 4 Technology and communications 50 — 3 82 — — (1 ) 13 (100 ) 47 — 5 Industrial 40 — — — — — — — — 40 — — Capital goods 102 — — — — — (8 ) 11 (45 ) 60 — 1 Consumer—cyclical 173 3 4 15 — — (36 ) 47 (56 ) 150 — 6 Transportation 78 — (1 ) — — — (4 ) 27 (30 ) 70 — 2 Other 136 — 2 25 — — (7 ) 87 (24 ) 219 — 2 Total U.S. corporate 2,239 15 37 403 (34 ) — (196 ) 274 (466 ) 2,272 — 50 Non-U.S. Utilities 374 — 10 13 — — — 28 (73 ) 352 — 9 Energy 247 — (5 ) 7 — — (28 ) 24 — 245 — (5 ) Finance and insurance 234 4 17 15 — — (10 ) 77 (32 ) 305 4 17 Consumer—non-cyclical 59 — 3 20 — — — 1 (16 ) 67 — 2 Technology and communications 28 — — — — — — — — 28 — 1 Industrial 104 — 4 — — — (5 ) — (8 ) 95 — 3 Capital goods 161 1 1 20 — — (39 ) 34 — 178 — 1 Consumer—cyclical 147 — 3 21 — — (26 ) 32 (31 ) 146 — 2 Transportation 191 — 1 7 — — (10 ) 22 (102 ) 109 — 4 Other 140 9 (1 ) 6 — — (72 ) 1 — 83 — 2 Total non-U.S. 1,685 14 33 109 — — (190 ) 219 (262 ) 1,608 4 36 Residential mortgage-backed 27 — (1 ) — — — (1 ) 4 (15 ) 14 — — Commercial mortgage-backed 6 — 1 — — — — 20 (7 ) 20 — 1 Other asset-backed 132 — 1 130 — — (35 ) 10 (129 ) 109 — — Total fixed maturity securities 4,191 32 60 642 (34 ) — (424 ) 528 (906 ) 4,089 7 76 Equity securities 51 — — 6 (7 ) — — 1 — 51 — — Other invested assets: Derivative assets: Equity index options 81 4 — 59 — — (81 ) — — 63 5 — Total derivative assets 81 4 — 59 — — (81 ) — — 63 5 — Total other invested assets 81 4 — 59 — — (81 ) — — 63 5 — Reinsurance recoverable (2) 20 4 — — — 2 — — — 26 4 — Total Level 3 assets $ 4,343 $ 40 $ 60 $ 707 $ (41 ) $ 2 $ (505 ) $ 529 $ (906 ) $ 4,229 $ 16 $ 76 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. Beginning Total realized and Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending Total gains (losses) (Amounts in millions) Included in Included Fixed maturity securities: State and political subdivisions $ 51 $ 3 $ 20 $ — $ — $ — $ — $ 28 $ — $ 102 $ 3 U.S. corporate: Utilities 643 1 72 156 (14 ) — (49 ) 72 (16 ) 865 — Energy 121 — 9 17 (5 ) — (13 ) — — 129 — Finance and insurance 534 — 51 50 — — (39 ) 35 (59 ) 572 — Consumer—non-cyclical 73 — 5 23 (5 ) — (11 ) 9 — 94 — Technology and communications 50 — 7 — — — (1 ) 5 (11 ) 50 — Industrial 39 — 1 — — — — — — 40 — Capital goods 92 — 10 — — — — — — 102 — Consumer—cyclical 211 — 11 — (13 ) — (18 ) — (18 ) 173 (1 ) Transportation 57 — 3 39 — — (10 ) — (11 ) 78 — Other 178 — 6 23 — — (20 ) 8 (59 ) 136 — Total U.S. corporate 1,998 1 175 308 (37 ) — (161 ) 129 (174 ) 2,239 (1 ) Non-U.S. Utilities 404 — 30 30 (7 ) — (67 ) — (16 ) 374 — Energy 217 (1 ) 19 46 (18 ) — (16 ) — — 247 — Finance and insurance 171 4 23 7 — — (16 ) 54 (9 ) 234 4 Consumer—non-cyclical 106 2 5 1 — — (55 ) — — 59 — Technology and communications 26 — 2 — — — — — — 28 — Industrial 61 — 5 38 — — — — — 104 — Capital goods 173 — 12 10 — — (16 ) 3 (21 ) 161 — Consumer—cyclical 122 — 12 16 — — (3 ) — — 147 — Transportation 171 — 10 27 — — — — (17 ) 191 — Other 81 — 12 43 — — (2 ) 6 — 140 — Total non-U.S. 1,532 5 130 218 (25 ) — (175 ) 63 (63 ) 1,685 4 Residential mortgage-backed 35 — 1 — (2 ) — (1 ) — (6 ) 27 — Commercial mortgage-backed 95 — 17 3 — — — 1 (110 ) 6 — Other asset-backed 154 — 3 139 — — (69 ) 28 (123 ) 132 — Total fixed maturity securities 3,865 9 346 668 (64 ) — (406 ) 249 (476 ) 4,191 6 Equity securities 58 — — 2 (9 ) — — — — 51 — Other invested assets: Derivative assets: Equity index options 39 43 — 63 — — (64 ) — — 81 18 Total derivative assets 39 43 — 63 — — (64 ) — — 81 18 Total other invested assets 39 43 — 63 — — (64 ) — — 81 18 Reinsurance recoverable (2) 20 (1 ) — — — 1 — — — 20 (1 ) Total Level 3 assets $ 3,982 $ 51 $ 346 $ 733 $ (73 ) $ 1 $ (470 ) $ 249 $ (476 ) $ 4,343 $ 23 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. (Amounts in millions) Beginning balance as of January 1, 2018 Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Transfer into Level 3 (1) Transfer out of Level 3 (1) Ending balance as of December 31, 2018 Total gains (losses) included in net income attributable to assets still held Included in net income Included in OCI 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. 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. 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 227 — (3 ) 114 (16 ) — (93 ) 54 (129 ) 154 — Total fixed maturity securities 3,940 5 (240 ) 758 (62 ) — (521 ) 466 (481 ) 3,865 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 $ 4,078 $ (24 ) $ (240 ) $ 850 $ (66 ) $ 1 $ (602 ) $ 466 $ (481 ) $ 3,982 $ (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. The following table presents the gains and losses included in net income from assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the years ended December 31: (Amounts in millions) 2020 2019 2018 Total realized and unrealized gains (losses) included in net income: Net investment income $ 32 $ 10 $ 8 Net investment gains (losses) 8 41 (32 ) Total $ 40 $ 51 $ (24 ) Total gains (losses) included in net income attributable to assets still held: Net investment income $ 7 $ 6 $ 9 Net investment gains (losses) 9 17 (21 ) Total $ 16 $ 23 $ (12 ) The amount presented for realized and unrealized gains (losses) included in net income for fixed maturity securities primarily represents amortization and accretion of premiums and discounts on certain fixed maturity securities. 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, 2020: (Amounts in millions) Valuation technique Fair value Unobservable Range Weighted-average (1) Fixed maturity securities: U.S. corporate: Utilities Internal models $ 792 Credit spreads 66 bps – bps 148 bps Energy Internal models 6 Credit spreads 73 bps Not applicable Finance and insurance Internal models 593 Credit spreads 56 bps – 137 bps Consumer—non-cyclical Internal models 109 Credit spreads 66 bps – 143 bps Technology and communications Internal models 47 Credit spreads 104 bps – bps 181 bps Industrial Internal models 40 Credit spreads 112 bps – 155 bps Capital goods Internal models 60 Credit spreads 76 bps – 143 bps Consumer—cyclical Internal models 141 Credit spreads 104 bps – 147 bps Transportation Internal models 58 Credit spreads 58 bps – 106 bps Other Internal models 204 Credit spreads 79 bps – 113 bps Total U.S. corporate Internal models $ 2,050 Credit spreads 56 bps – 140 bps Non-U.S. Utilities Internal models $ 351 Credit spreads 68 bps – 125 bps Energy Internal models 90 Credit spreads 76 bps – 121 bps Finance and insurance Internal models 191 Credit spreads 89 bps – 107 bps Consumer—non-cyclical Internal models 65 Credit spreads 80 bps – 106 bps Technology and communications Internal models 28 Credit spreads 76 bps – 129 bps Industrial Internal models 95 Credit spreads 73 bps – 125 bps Capital goods Internal models 148 Credit spreads 80 bps – 128 bps Consumer—cyclical Internal models 45 Credit spreads 115 bps – 142 bps Transportation Internal models 92 Credit spreads 66 bps – 102 bps Other Internal models 83 Credit spreads 93 bps – 145 bps Total non-U.S. Internal models $ 1,188 Credit spreads 66 bps – 122 bps Derivative assets: Equity index options Discounted cash flows $ 63 Equity index 6 % – 29 % (1) Unobservable inputs weighted by the relative fair value of the associated instrument Certain classes of instruments classified as Level 3 are excluded above as a result of not 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: 2020 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 379 $ — $ — $ 379 Fixed index annuity embedded derivatives 399 — — 399 Indexed universal life embedded derivatives 26 — — 26 Total policyholder account balances 804 — — 804 Derivative liabilities: Interest rate swaps 23 — 23 — Foreign currency swaps 2 — 2 — Other foreign currency contracts 1 — 1 — Total derivative liabilities 26 — 26 — Total liabilities $ 830 $ — $ 26 $ 804 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. 2019 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 323 $ — $ — $ 323 Fixed index annuity embedded derivatives 452 — — 452 Indexed universal life embedded derivatives 19 — — 19 Total policyholder account balances 794 — — 794 Derivative liabilities: Interest rate swaps 10 — 10 — Other foreign currency contracts 1 — 1 — Total derivative liabilities 11 — 11 — Total liabilities $ 805 $ — $ 11 $ 794 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. The following tables present additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: Beginning as of Total realized and Ending as of Total (gains) losses (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer Transfer Included Included Policyholder account balances: GMWB embedded derivatives (1) $ 323 $ 32 $ — $ — $ — $ 24 $ — $ — $ — $ 379 $ 38 $ — Fixed index annuity embedded derivatives 452 51 — — — — (104 ) — — 399 51 — Indexed universal life embedded derivatives 19 (17 ) — — — 24 — — — 26 (17 ) — Total policyholder account balances 794 66 — — — 48 (104 ) — — 804 72 — Total Level 3 liabilities $ 794 $ 66 $ — $ — $ — $ 48 $ (104 ) $ — $ — $ 804 $ 72 $ — (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. Beginning as of Total realized and Ending as of Total (gains) attributable (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer Transfer Policyholder account balances: GMWB embedded derivatives (1) $ 337 $ (39 ) $ — $ — $ — $ 25 $ — $ — $ — $ 323 $ (34 ) Fixed index annuity embedded derivatives 389 90 — — — — (27 ) — — 452 90 Indexed universal life embedded derivatives 12 (4 ) — — — 11 — — — 19 (4 ) Total policyholder account balances 738 47 — — — 36 (27 ) — — 794 52 Total Level 3 liabilities $ 738 $ 47 $ — $ — $ — $ 36 $ (27 ) $ — $ — $ 794 $ 52 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. Beginning as of Total realized and Ending as of Total (gains) attributable (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer Transfer Policyholder account balances: 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. The following table presents the gains and losses included in net (income) from liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the years ended December 31: (Amounts in millions) 2020 2019 2018 Total realized and unrealized (gains) losses included in net (income): Net investment income $ — $ — $ — Net investment (gains) losses 66 47 31 Total $ 66 $ 47 $ 3 |
Insurance Subsidiary Financial
Insurance Subsidiary Financial Information and Regulatory Matters | 12 Months Ended |
Dec. 31, 2020 | |
Insurance Subsidiary Financial Information and Regulatory Matters | (17) Insurance Subsidiary Financial Information and Regulatory Matters Dividends Our insurance subsidiaries are subject to oversight by applicable insurance laws and regulations as to the amount of dividends they may pay to their parent in any year, the purpose of which is to protect affected insurance policyholders or contractholders, not stockholders. In general, dividends in excess of prescribed limits are deemed “extraordinary” and require insurance regulatory approval. Based on estimated statutory results as of December 31, 2020, in accordance with applicable dividend restrictions, our insurance subsidiaries could pay dividends of approximately $190 million to us in 2021. While the approximately $190 million is considered unrestricted, our insurance subsidiaries may not pay dividends to us in 2021 at this level if they need to preserve capital for regulatory purposes, including as the result of COVID-19, Dividends received from our domestic insurance subsidiaries is highly dependent on the performance of our U.S. mortgage insurance subsidiaries and their ability to pay dividends to us as anticipated. Given the performance of our U.S. life insurance subsidiaries, dividends will not be paid by these subsidiaries for the foreseeable future. Our domestic insurance subsidiaries paid dividends during 2020, 2019 and 2018 (none of which were deemed “extraordinary”) of $437 million, $250 million and $60 million, respectively. During 2020, our U.S. mortgage insurance subsidiaries paid $437 million dividends from net proceeds received from GMHI’s issuance of its 2025 Senior Notes. Our Australian mortgage insurance subsidiaries paid dividends of $21 million, $212 million and $129 million during 2020, 2019 and 2018, respectively. The reduced dividends in 2020 were predominantly in response to COVID-19. 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”) and River Lake Insurance Company X (“River Lake X”), together with River Lake VI, River Lake VII, River Lake VIII 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 accounting practices, these entities could be subject to regulatory action. Accordingly, we believe that the permitted accounting practices will remain in effect for so long as we maintain the SPFCs. The material permitted accounting practices for the SPFCs were as follows: • In 2020 and 2019, River Lake VI had a permitted accounting practice from the State of Delaware to carry its excess of loss reinsurance agreement with The Canada Life Assurance Company for its universal life insurance business assumed from GLAIC as an admitted asset. In 2020 and 2019 River Lake VI also had a permitted accounting practice from the State of Delaware to carry its term life insurance reserves on a basis similar to U.S. GAAP, including an extension of this permitted accounting practice to include additional term life insurance policies assumed from GLAIC in 2019. • In 2020 and 2019, River Lake VII, River Lake VIII and River Lake X each had a permitted accounting practice from the State of Vermont to carry their reserves on a basis similar to U.S. GAAP. In addition, in 2019, River Lake Insurance Company IX (“River Lake IX”) also had a permitted accounting practice from the State of Vermont to carry its reserves on a basis similar to U.S. GAAP. However, as of December 31, 2019, there were no remaining reserves in River Lake IX as discussed below. In 2020, Genworth Life Insurance Company of New York (“GLICNY”) and Genworth Life and Annuity Insurance Company (“GLAIC”) were also granted the following permitted practices: • GLICNY was granted a permitted accounting practice from the New York State Department of Financial Services (“NYDFS”) whereby GLICNY is exempt from the requirements of principle-based reserves (“PBR”) as prescribed in the NAIC Valuation Manual under New York Regulation. The permitted practice is limited to term life insurance conversion policies issued in 2020 where existing policyholders exercised their contract options prior to the enactment of PBR requirements. • GLAIC was granted a permitted accounting practice from the Commonwealth of Virginia State Corporation Commission Bureau of Insurance whereby GLAIC is exempt from the requirements of PBR as prescribed in the NAIC Valuation Manual. The permitted practice is limited to ordinary life insurance business issued in 2020 on revised contracts where existing policyholders exercised their contract options prior to the enactment of PBR requirements. The impact of these permitted accounting practices of the SPFCs The impact of these permitted accounting practices of GLICNY and GLAIC on our combined U.S. domiciled life insurance subsidiaries’ statutory capital and surplus was not significant as of December 31, 2020. The tables below include the combined statutory net income and statutory capital and surplus for our U.S. domiciled insurance subsidiaries for the periods indicated: Years ended December 31, (Amounts in millions) 2020 2019 2018 Combined statutory net income (loss): Life insurance subsidiaries, excluding captive life reinsurance subsidiaries $ 197 $ 740 $ (895 ) Mortgage insurance subsidiaries 404 847 697 Combined statutory net income (loss), excluding captive reinsurance subsidiaries 601 1,587 (198 ) Captive life insurance subsidiaries 9 (350 ) 1,520 Combined statutory net income $ 610 $ 1,237 $ 1,322 As of December 31, (Amounts in millions) 2020 2019 Combined statutory capital and surplus: Life insurance subsidiaries, excluding captive life reinsurance subsidiaries $ 2,131 $ 2,188 Mortgage insurance subsidiaries 4,073 3,664 Combined statutory capital and surplus $ 6,204 $ 5,852 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, secured by excess of loss reinsurance treaties with third parties or, in the case of Rivermont I previously, funded through the issuance of non-recourse In December 2019, GLAIC, one of our U.S. domiciled life insurance companies, recaptured its term life insurance business previously ceded to River Lake IX and its universal life insurance business previously ceded to Rivermont I. GLAIC then immediately ceded that recaptured business to River Lake VI. Prior to the GLAIC recapture, River Lake IX also recaptured all external reinsurance with third parties and terminated those agreements. As a result, there was no remaining reinsurance (assumed or ceded) in River Lake IX or Rivermont I as of December 31, 2019. River Lake IX also returned capital of $20 million to GLAIC in December 2019. In 2020, River Lake IX was dissolved and is no longer included as a SPFC. Additionally, the capital and surplus (excluding non-recourse non-recourse 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, 2020 and 2019, each of our life insurance subsidiaries exceeded the minimum required RBC levels in their respective domiciliary state. The consolidated RBC ratio of our U.S. domiciled life insurance subsidiaries was approximately 229% and 213% as of December 31, 2020 and 2019, respectively. During 2020, 2019 and 2018, we established $232 million, $54 million and $120 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. As a part of our cash flow testing process for our life insurance subsidiaries, we consider incremental benefits from expected future in-force in-force in-force However, we have been monitoring emerging experience with our New York policyholders, which experience has been adverse as compared to our nationwide experience. With the benefit of additional data and analysis, and based on discussions with the NYDFS, we are using assumptions that reflect New York specific experience in GLICNY’s asset adequacy analysis in 2020. After discussions with the NYDFS and through the exercise of professional actuarial judgment, GLICNY also incorporated in its 2020 assets adequacy analysis assumptions for future in-force million of additional statutory reserves for long-term care insurance in 2020. During 2020, GLICNY also reallocated million of asset adequacy deficiency reserves from long-term care insurance to asset adequacy deficiency reserves of $35 million to variable annuities and formulaic statutory reserves of $31 million for structured settlements. As a result of the 2020 activity, the aggregate amount of statutory reserves established by GLICNY for asset adequacy deficits increased to million as of December 31, 2020. Of this amount, $504 million related to long-term care insurance and $35 million related to variable annuities. In 2019, after discussions with the NYDFS and through the exercise of professional actuarial judgment, GLICNY incorporated in its 2019 asset adequacy analysis recently filed in-force 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 $2.5 billion and $2.0 billion, respectively, as of December 31, 2020 and 2019 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 risk-to-capital risk-to-capital Private mortgage insurers must meet the operational and financial requirements under PMIERs as set forth by the GSEs in order to remain eligible to insure loans that are purchased by the GSEs. Each approved mortgage insurer is required to provide the GSEs with an annual certification and a quarterly report evidencing its compliance with PMIERs. On June 29, 2020, the GSEs issued guidance amending PMIERs in light of COVID-19 The GSEs issued another revised and restated version in December 2020 that extended certain defined periods within the PMIERs Amendment. For loans that became non-performing due to a COVID-19 hardship, PMIERs was temporarily amended with respect to each non-performing loan that (i) has an initial missed monthly payment occurring on or after March 1, 2020 and prior to April 1, 2021 or (ii) is subject to a forbearance plan granted in response to a financial hardship related to COVID-19, the terms of which are materially consistent with terms of forbearance plans offered by the GSEs. The risk-based required asset amount factor for the non-performing loan will be the greater of (a) the applicable risk-based required asset amount factor for a performing loan were it not delinquent, and (b) the product of a multiplier and the applicable risk-based required asset amount factor for a non-performing loan. In the case of (i) above, absent the loan being subject to a forbearance plan described in (ii) above, the will be applicable for no longer than three calendar months beginning with the month in which the loan became a non-performing loan due to having missed two monthly payments. Loans subject to a forbearance plan described in (ii) above include those that are either in a repayment plan or loan modification trial period following the forbearance plan unless reported to the approved insurer that the loan is no longer in such forbearance plan, repayment plan, or loan modification trial period. The PMIERs Amendment also imposes temporary capital preservation provisions through June 30, 2021 that require an approved insurer to obtain prior written GSE approval before paying any dividends, pledging or transferring assets to an affiliate or entering into any new, or altering any existing, arrangements under tax sharing and intercompany expense-sharing agreements, even if such insurer has a surplus of available assets. Lastly, the PMIERs Amendment imposes permanent revisions to the risk-based required asset amount factor for non-performing loans for properties located in future Federal Emergency Management Agency (“FEMA”) Declared Major Disaster Areas eligible for individual assistance. In September 2020, the GSEs imposed certain restrictions (“GSE Restrictions”) with respect to capital on our U.S. mortgage insurance business. These restrictions will remain in effect until the later of six quarters or until the following collective (“GSE Conditions”) are met: a) approval of GMICO’s plan to secure additional capital, if needed, b) GMICO obtains “BBB+”/“Baa1” (or higher) rating from Standard & Poor’s Financial Services, LLC, Moody’s Investors Service, Inc. or Fitch Ratings, Inc. for two consecutive quarters and c) Genworth achieves certain financial metrics. Prior to the satisfaction of the GSE Conditions, the GSE Restrictions require: • GMICO to maintain 115% of PMIERs M R A • GMHI to retain $300 million of its holding company cash that can be drawn down exclusively for its debt service or to contribute to GMICO to meet its regulatory capital needs including PMIERs; and • written approval must be received from the GSEs before We have met all PMIERs reporting requirements as required by the GSEs. As of December 31, 2020 and 2019, our U.S. mortgage insurance business had estimated available assets of $4,588 million and $3,811 million, 2020 benefited from the application of a 0.30 multiplier applied to the risk-based required asset amount factor for certain non-performing transactions International insurance subsidiaries—statutory financial information Our international insurance subsidiaries also prepare financial statements in accordance with local regulatory requirements. Our international insurance subsidiaries have accounting practices under local regulatory requirements that differ from U.S. GAAP, such as the application of accounting changes resulting from premium earnings pattern and liability adequacy reviews. As of December 31, 2020 and 2019, combined local statutory capital and surplus of our international insurance subsidiaries was $1.3 billion and $1.2 billion, respectively. Combined local statutory net income included in continuing operations for our international insurance subsidiaries was $108 million, $87 million and $57 million for the years ended December 31, 2020, 2019 and 2018, 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 $272 million and $384 million as of December 31, 2020 and 2019, 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 commitments discussed in note 20, 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 was $4 million and $5 million as of December 31, 2020 and 2019, respectively. 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 United Kingdom subsidiary to AmTrust Financial Services, Inc., the guarantee was limited 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, 2020, the risk in-force |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information | (18) Segment Information (a) Operating Segment Information We have the following four operating business segments: U.S. 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 products which have not been actively sold since 2011). In addition to our four operating business segments, we also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of our operating segments, including certain smaller international mortgage insurance businesses and discontinued operations. We tax our international businesses at their local jurisdictional tax rates and our domestic businesses at the U.S. corporate federal income tax rate of 21 pre-tax We use the same accounting policies and procedures to measure segment income (loss) and assets as our consolidated net income (loss) and assets. Our chief operating decision maker evaluates segment performance and allocates resources on the basis of “adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders.” We define adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as income (loss) from continuing operations excluding the after-tax non-operating non-recourse non-operating non-operating While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, we believe that adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, and measures that are derived from or incorporate adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders is not a substitute for net income (loss) available to Genworth Financial, Inc.’s common stockholders determined in accordance with U.S. GAAP. In addition, our definition of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders may differ from the definitions used by other companies. Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate for our domestic segments and a 30% tax rate for our Australia Mortgage Insurance segment and are net of the portion attributable to noncontrolling interests. In 2018, we assumed a flat 21% tax rate on adjustments for all of our segments. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves. In 2020, we recorded a goodwill impairment of $3 million, net of the portion attributable to noncontrolling interests, in our Australia mortgage insurance business. During 2020, we repurchased $ 84 2021 pre-tax 4 pre-tax 9 June 2020 315 non-recourse 2050 pre-tax 4 write-off In 2020, 2019 and 2018, we recorded a pre-tax 3 4 2 There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented other than fees incurred in 2018 related to Genworth Holdings’ bond consent solicitation of $6 million for broker, advisor and investment banking fees. The following is a summary of our segments and Corporate and Other activities as of or for the years ended December 31: 2020 U.S. Australia U.S. Life Runoff Corporate Total (Amounts in millions) Premiums $ 971 $ 274 $ 2,858 $ — $ 7 $ 4,110 Net investment income 133 32 2,878 210 7 3,260 Net investment gains (losses) (4 ) 66 517 (26 ) 5 558 Policy fees and other income 6 1 595 130 (2 ) 730 Total revenues 1,106 373 6,848 314 17 8,658 Benefits and other changes in policy reserves 381 177 4,781 48 4 5,391 Interest credited — — 383 166 — 549 Acquisition and operating expenses, net of deferrals 206 74 620 48 40 988 Amortization of deferred acquisition costs and intangibles 21 29 418 23 1 492 Goodwill impairment — 5 — — — 5 Interest expense 18 7 5 — 172 202 Total benefits and expenses 626 292 6,207 285 217 7,627 Income (loss) from continuing operations before income taxes 480 81 641 29 (200 ) 1,031 Provision (benefit) for income taxes 102 24 163 4 (23 ) 270 Income (loss) from continuing operations 378 57 478 25 (177 ) 761 Loss from discontinued operations, net of taxes — — — — (549 ) (549 ) Net income (loss) 378 57 478 25 (726 ) 212 Less: net income from continuing operations attributable to noncontrolling interests — 34 — — — 34 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 378 $ 23 $ 478 $ 25 $ (726 ) $ 178 Net income (loss) available to Genworth Financial, Inc.’s common stockholders: Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 378 $ 23 $ 478 $ 25 $ (177 ) $ 727 Loss from discontinued operations available to Genworth Financial, Inc.’s common stockholders — — — — (549 ) (549 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 378 $ 23 $ 478 $ 25 $ (726 ) $ 178 Total assets $ 5,627 $ 2,884 $ 84,671 $ 9,735 $ 2,830 $ 105,747 2019 U.S. Australia U.S. Life Runoff Corporate Total (Amounts in millions) Premiums $ 856 $ 312 $ 2,861 $ — $ 8 $ 4,037 Net investment income 117 55 2,852 187 9 3,220 Net investment gains (losses) 1 23 82 (25 ) (31 ) 50 Policy fees and other income 4 — 643 140 2 789 Total revenues 978 390 6,438 302 (12 ) 8,096 Benefits and other changes in policy reserves 50 104 4,979 27 3 5,163 Interest credited — — 419 158 — 577 Acquisition and operating expenses, net of deferrals 191 69 604 52 46 962 Amortization of deferred acquisition costs and intangibles 15 33 372 18 3 441 Interest expense — 8 17 — 214 239 Total benefits and expenses 256 214 6,391 255 266 7,382 Income (loss) from continuing operations before income taxes 722 176 47 47 (278 ) 714 Provision (benefit) for income taxes 153 53 34 8 (53 ) 195 Income (loss) from continuing operations 569 123 13 39 (225 ) 519 Income from discontinued operations, net of taxes — — — — 11 11 Net income (loss) 569 123 13 39 (214 ) 530 Less: net income from continuing operations attributable to noncontrolling interests — 64 — — — 64 Less: net income from discontinued operations attributable to noncontrolling — — — — 123 123 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 569 $ 59 $ 13 $ 39 $ (337 ) $ 343 Net income (loss) available to Genworth Financial, Inc.’s common stockholders: Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 569 $ 59 $ 13 $ 39 $ (225 ) $ 455 Loss from discontinued operations available to Genworth Financial, Inc.’s common stockholders — — — — (112 ) (112 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 569 $ 59 $ 13 $ 39 $ (337 ) $ 343 Total assets $ 4,504 $ 2,406 $ 81,640 $ 9,953 $ 2,839 $ 101,342 2018 U.S. Australia U.S. Life Runoff Corporate Total (Amounts in millions) Premiums $ 746 $ 373 $ 2,867 $ — $ 8 $ 3,994 Net investment income 93 67 2,781 174 6 3,121 Net investment gains (losses) — (15 ) 29 (33 ) 10 (9 ) Policy fees and other income 2 2 641 153 (3 ) 795 Total revenues 841 427 6,318 294 21 7,901 Benefits and other changes in policy reserves 36 110 5,416 39 5 5,606 Interest credited — — 461 150 — 611 Acquisition and operating expenses, net of deferrals 169 65 584 57 68 943 Amortization of deferred acquisition costs and intangibles 14 43 257 33 1 348 Interest expense — 9 16 — 231 256 Total benefits and expenses 219 227 6,734 279 305 7,764 Income (loss) from continuing operations before income taxes 622 200 (416 ) 15 (284 ) 137 Provision (benefit) for income taxes 132 60 (68 ) 2 (56 ) 70 Income (loss) from continuing operations 490 140 (348 ) 13 (228 ) 67 Income from discontinued operations, net of taxes — — — — 230 230 Net income (loss) 490 140 (348 ) 13 2 297 Less: net income from continuing operations attributable to noncontrolling interests — 70 — — — 70 Less: net income from discontinued operations attributable to noncontrolling interests — — — — 108 108 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 490 $ 70 $ (348 ) $ 13 $ (106 ) $ 119 Net income (loss) available to Genworth Financial, Inc.’s common stockholders: Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 490 $ 70 $ (348 ) $ 13 $ (228 ) $ (3 ) Income from discontinued operations available to Genworth Financial, Inc.’s common stockholders — — — — 122 122 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 490 $ 70 $ (348 ) $ 13 $ (106 ) $ 119 (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) 2020 2019 2018 Revenues: U.S. Mortgage Insurance segment $ 1,106 $ 978 $ 841 Australia Mortgage Insurance segment 373 390 427 U.S. Life Insurance segment: Long-term care insurance 4,960 4,385 4,197 Life insurance 1,357 1,444 1,430 Fixed annuities 531 609 691 U.S. Life Insurance segment 6,848 6,438 6,318 Runoff segment 314 302 294 Corporate and Other activities 17 (12 ) 21 Total revenues $ 8,658 $ 8,096 $ 7,901 (c) Reconciliations The following tables present the reconciliation of net income available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders 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) 2020 2019 2018 Net income available to Genworth Financial, Inc.’s common stockholders $ 178 $ 343 $ 119 Add: net income from continuing operations attributable to noncontrolling interests 34 64 70 Add: net income from discontinued operations attributable to noncontrolling interests — 123 108 Net income 212 530 297 Less: income (loss) from discontinued operations, net of taxes (549 ) 11 230 Income from continuing operations 761 519 67 Less: net income from continuing operations attributable to noncontrolling interests 34 64 70 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders 727 455 (3 ) Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net (1) (538 ) (50 ) (10 ) Goodwill impairment, net (2) 3 — — (Gains) losses on early extinguishment of debt 9 — — Expenses related to restructuring 3 4 2 Fees associated with bond consent solicitation — — 6 Taxes on adjustments 113 11 — Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ 317 $ 420 $ (5 ) (1) For the years ended December 31, 2020, 2019 and 2018, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(11) million, $(11) million and $(12) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $31 million, $11 million and $(7) million, respectively. (2) For the year ended December 31, 2020, goodwill impairment was adjusted for the portion attributable to noncontrolling interests of $2 million. (Amounts in millions) 2020 2019 2018 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: U.S. Mortgage Insurance segment $ 381 $ 568 $ 490 Australia Mortgage Insurance segment 1 51 76 U.S. Life Insurance segment: Long-term care insurance 237 57 (348 ) Life insurance (247 ) (181 ) (107 ) Fixed annuities 78 69 79 U.S. Life Insurance segment 68 (55 ) (376 ) Runoff segment 43 56 35 Corporate and Other activities (176 ) (200 ) (230 ) Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ 317 $ 420 $ (5 ) (d) Geographic Segment Information We conduct our operations in the following geographic regions: (1) United States (2) Australia and (3) Other Countries. The following is a summary of geographic region activity as of or for the years ended December 31: 2020 (Amounts in millions) United Australia Other Total Total Total revenues $ 8,276 $ 373 $ 9 $ 382 $ 8,658 Income (loss) from continuing operations $ 706 $ 57 $ (2 ) $ 55 $ 761 Net income (loss) $ 157 $ 57 $ (2 ) $ 55 $ 212 Total assets $ 102,804 $ 2,884 $ 59 $ 2,943 $ 105,747 2019 (Amounts in millions) United Australia Other Total Total Total revenues $ 7,701 $ 390 $ 5 $ 395 $ 8,096 Income (loss) from continuing operations $ 398 $ 123 $ (2 ) $ 121 $ 519 Net income $ 398 $ 123 $ 9 $ 132 $ 530 Total assets $ 98,881 $ 2,406 $ 55 $ 2,461 $ 101,342 2018 (Amounts in millions) United Australia Other Total Total Total revenues $ 7,469 $ 427 $ 5 $ 432 $ 7,901 Income (loss) from continuing operations $ (69 ) $ 140 $ (4 ) $ 136 $ 67 Net income (loss) $ (69 ) $ 140 $ 226 $ 366 $ 297 |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Results of Operations (unaudited) | (19) Quarterly Results of Operations (unaudited) Our unaudited quarterly results of operations for the year ended December 31, 2020 are summarized in the table below. Three months ended (Amounts in millions, except per share amounts) March 31, June 30, September 30, December 31, Total revenues (1) $ 1,837 $ 2,138 $ 2,420 $ 2,263 Total benefits and expenses (2) $ 1,919 $ 1,990 $ 1,835 $ 1,883 Income (loss) from continuing operations (1), (2), (3) $ (72 ) $ 102 $ 435 $ 296 Income (loss) from discontinued operations, net of taxes (4) $ — $ (520 ) $ 1 $ (30 ) Net income (loss) (1), (2), (3), (4) $ (72 ) $ (418 ) $ 436 $ 266 Net income (loss) from continuing operations attributable to noncontrolling interests $ (6 ) $ 23 $ 18 $ (1 ) Net income from discontinued operations attributable to noncontrolling interests $ — $ — $ — $ — Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (66 ) $ (441 ) $ 418 $ 267 Net income (loss) available to Genworth Financial, Inc.’s common stockholders: Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ (66 ) $ 79 $ 417 $ 297 Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders — (520 ) 1 (30 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (66 ) $ (441 ) $ 418 $ 267 Income (loss) from continuing operations available to Genworth Financial, Inc.’s Basic $ (0.13 ) $ 0.16 $ 0.83 $ 0.59 Diluted $ (0.13 ) $ 0.15 $ 0.82 $ 0.58 Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share: Basic $ (0.13 ) $ (0.87 ) $ 0.83 $ 0.53 Diluted $ (0.13 ) $ (0.86 ) $ 0.82 $ 0.52 Weighted-average common shares outstanding: Basic 504.3 505.4 505.6 505.6 Diluted (5) 504.3 512.5 511.5 512.5 (1) In the fourth quarter of 2020, we recorded lower net investment gains as compared to the third quarter of 2020. The higher net investment gains recorded in the third quarter of 2020 related to the sale of available-for-sale (2) Given our assumption that COVID-19 by $47 million. Additionally, our long-term care insurance business recorded a $91 million increase to claim reserves reflecting our assumption that COVID-19 pre-pandemic more closely for loans in payment deferral programs . . This review resulted in lower total benefits and expenses of $82 million from a net favorable unlocking in our term universal and universal life insurance products largely attributable to a model refinement in our term universal life insurance product related to persistency and grace period timing and lower projected cost of insurance assessments on our universal life insurance products. In addition, we recorded a DAC impairment of $63 million in our universal life insurance products due principally to lower future estimated gross profits. (3) In the fourth quarter of 2020 , our long-term care insurance business strengthened its reserves by $109 million after-tax. after-tax. for additional details. (4) In the fourth quarter of 2020 , we recorded a loss from discontinued operations, net of taxes, of $30 million principally attributed to foreign currency remeasurement losses of $26 million, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022 . See note 23 for additional details on discontinued operations. (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 March 31 , 2020 , we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31 , 2020 , as the inclusion of shares for stock options, RSUs and SARs of 5.4 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 March 31 , 2020 , dilutive potential weighted-average common shares outstanding would have been 509.7 million. Our unaudited quarterly results of operations for the year ended December 31, 2019 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 $ 2,044 $ 1,994 $ 2,020 $ 2,038 Total benefits and expenses (1) $ 1,807 $ 1,770 $ 1,848 $ 1,957 Income from continuing operations (2) $ 168 $ 158 $ 138 $ 55 Income (loss) from discontinued operations, net of taxes (3) $ 62 $ 60 $ (80 ) $ (31 ) Net income (2) , $ 230 $ 218 $ 58 $ 24 Net income from continuing operations attributable to noncontrolling interests $ 20 $ 15 $ 10 $ 19 Net income from discontinued operations attributable to noncontrolling interests $ 36 $ 35 $ 30 $ 22 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 174 $ 168 $ 18 $ (17 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders: Income from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 148 $ 143 $ 128 $ 36 Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders 26 25 (110 ) (53 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 174 $ 168 $ 18 $ (17 ) Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.29 $ 0.29 $ 0.25 $ 0.07 Diluted $ 0.29 $ 0.28 $ 0.25 $ 0.07 Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.35 $ 0.33 $ 0.04 $ (0.03 ) Diluted $ 0.34 $ 0.33 $ 0.04 $ (0.03 ) Weighted-average common shares outstanding: Basic 501.2 503.4 503.5 503.5 Diluted 508.6 508.7 511.2 510.4 (1) Our life insurance business completed its annual review of assumptions in the fourth quarter of 2019, which resulted in higher total benefits and expenses of $145 million from an unfavorable unlocking in our universal and term universal life insurance products driven mostly by the lower interest rate environment. (2) In the fourth quarter of 2019, our life insurance business recorded a $107 million unfavorable unlocking, net of taxes, related to its annual review of assumptions in our universal and term universal life insurance products, as described above. This unfavorable unlocking in our life insurance business was partially offset by a favorable update of $11 million, net of taxes, in our U.S. mortgage insurance business in connection with a review of its single premium earnings pattern and from a favorable reserve adjustment of $10 million, net of taxes. (3) In the fourth quarter of 2019, we recorded an after-tax |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | (20) 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 In January 2016, Genworth Financial, its current chief executive officer, its former chief executive officer, its then former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by International Union of Operating Engineers Local No. 478 Pension Fund, Richard L. Salberg and David Pinkoski in the Court of Chancery of the State of Delaware. The case was captioned Int’l Union of Operating Engineers Local No. 478 Pension Fund, et al v. McInerney, et al Cohen v. McInerney, et al Genworth Financial, Inc. Consolidated Derivative Litigation In October 2016, Genworth Financial, its current chief executive officer, its former chief executive officer, its then current chief financial officer, its then former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by Esther Chopp in the Court of Chancery of the State of Delaware. The case is captioned Chopp v. McInerney, et al In December 2017, Genworth Financial International Holdings, LLC (“GFIH”) and AXA S.A. v. Genworth Financial International Holdings, LLC et al mis-selling mis-selling and updated its demand to £499 million, excluding an alleged claim for a tax gross up for a possible additional amount of £117 million or more. The damages hearing took place from June 15, 2020 through June 23, 2020. On July 20, 2020, Genworth and GFIH entered into a settlement agreement with AXA pursuant to which the parties have agreed, pending satisfaction of certain conditions, not to enforce, appeal or set aside the liability judgment of December 6, 2019 and the subsequently issued damages judgment of July 27, 2020. See note 23 for additional details on the terms of the settlement with AXA, the sale of our former lifestyle protection insurance business and amounts recorded related to loss from discontinued operations. 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 non-mortality In September 2018, Genworth Financial, Genworth Holdings, Genworth North America Corporation, GFIH and GLIC were named as defendants 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 amend their complaint. On March 12, 2019, we moved to dismiss plaintiffs’ amended complaint. On April 26, 2019, plaintiffs filed a memorandum in opposition to our motion to dismiss, which we replied to on June 14, 2019. On August 7, 2019, plaintiffs filed a motion seeking to prevent proceeds that GFIH expected to receive from the then planned sale of its shares in Genworth Canada from being transferred out of GFIH. On September 11, 2019, plaintiffs filed a renewed motion seeking the same relief from their August 7, 2019 motion with an exception that allowed GFIH to transfer $450 million of expected proceeds from the sale of Genworth Canada through a dividend to Genworth Holdings to allow the pay-off 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 GLICNY COVID-19. when the appeals period expired and no appeal was filed. We began implementation of the special election letters in accordance with the approved settlement terms on January 4, 2021. Based on the Court’s final approval of the settlement, we do not anticipate the outcome of this matter to have a material adverse impact on our results of operations or financial position. On April 6, 2020, GLAIC, our indirect wholly-owned subsidiary, was named as a defendant in a putative class action lawsuit filed in the United States District Court for the Eastern District of Virginia, captioned Brighton Trustees, LLC, on behalf of and as trustee for Diamond LS Trust; and Bank of Utah, solely as securities intermediary for Diamond LS Trust; on behalf of themselves and all others similarly situated v. Genworth Life and Annuity Insurance Company Ronald L. Daubenmier, individually and on behalf of himself and all others similarly situated v. Genworth Life and Annuity Insurance Company In January 2021, GLIC and GLICNY were named as defendants in a putative class action lawsuit pending in the United States District Court for the Eastern District of Virginia captioned Judy Halcom, Hugh Penson, Harold Cherry, and Richard Landino, individually, and on behalf of all others similarly situated v. Genworth Life Insurance Company and Genworth Life Insurance Company of New York In January 2021, 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 District of Oregon captioned Patsy H. McMillan, Individually and On Behalf Of All Others Similarly Situated, v. Genworth Life and Annuity Insurance Company At this time 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 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, 2020, we were committed to fund $1,090 million in limited partnership investments, $32 million in U.S. commercial mortgage loan investments and $85 million in private placement investments. As of December 31, 2020, we were also committed to fund $32 million of bank loan investments which had not yet been drawn. Amounts disclosed are net of an allowance for credit losses, see note 2 for additional information related to credit losses on off-balance |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Changes In Accumulated Other Comprehensive Income (Loss) | (21) Changes in Accumulated Other Comprehensive Income (Loss) The following tables show the changes in accumulated other comprehensive income (loss), net of taxes, by component as of and for the periods indicated: (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2020 $ 1,456 $ 2,002 $ (25 ) $ 3,433 OCI before reclassifications 1,132 344 55 1,531 Amounts reclassified from (to) OCI (374 ) (135 ) — (509 ) Current period OCI 758 209 55 1,022 Balances as of December 31, 2020 before noncontrolling interests 2,214 2,211 30 4,455 Less: change in OCI attributable to noncontrolling interests — — 30 30 Balances as of December 31, 2020 $ 2,214 $ 2,211 $ — $ 4,425 (1) Net of adjustments to DAC, PVFP, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2019 $ 595 $ 1,781 $ (332 ) $ 2,044 OCI before reclassifications 910 331 487 1,728 Amounts reclassified from (to) OCI (62 ) (110 ) — (172 ) Current period OCI 848 221 487 1,556 Balances as of December 31, 2019 before noncontrolling interests 1,443 2,002 155 3,600 Less: change in OCI attributable to noncontrolling interests (13 ) — 180 167 Balances as of December 31, 2019 $ 1,456 $ 2,002 $ (25 ) $ 3,433 (1) Net of adjustments to DAC, PVFP, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 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. The foreign currency translation and other adjustments balance in the charts above included $(15) million, $(4) million and $(2) million, respectively, net of taxes of $4 million, $1 million and $1 million, respectively, related to a net unrecognized postretirement benefit obligation as of December 31, 2020, 2019 and 2018. The balance also included taxes of $21 million, $22 and $(45) million, respectively, related to foreign currency translation adjustments as of December 31, 2020, 2019 and 2018. The 2018 balances also 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 consolidated statements of income Years ended December 31, (Amounts in millions) 2020 2019 2018 Net unrealized investment (gains) losses: Unrealized (gains) losses on investments (1) $ (474 ) $ (79 ) $ (23 ) Net investment (gains) losses Income taxes 100 17 5 Provision for income taxes Total $ (374 ) $ (62 ) $ (18 ) Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (196 ) $ (164 ) $ (153 ) Net investment income Interest rate swaps hedging assets (12 ) (6 ) (9 ) Net investment (gains) losses Income taxes 73 60 58 Provision for income taxes Total $ (135 ) $ (110 ) $ (104 ) (1) Amounts exclude adjustments to DAC, PVFP, sales inducements and benefit reserves. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interests | (22) Noncontrolling Interests 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. In May 2015, we sold 92.3 million of our shares in Genworth Australia and we beneficially owned approximately 52.0% of the ordinary shares of Genworth Australia through subsidiaries. In February 2019, Genworth Australia announced its intention to commence an on-market buy-back on-market buy-back buy-backs buy-back In May 2018, Genworth Australia announced its intention to commence an on-market buy-back on-market buy-back In February 2018, Genworth Australia repurchased approximately 19 million of its shares for AUD$49 million under a previous on-market buy-back on-market In 2020, 2019 and 2018, dividends of $9 million, $87 million and $40 million, respectively, were paid to the noncontrolling interests of Genworth Australia. Canada Prior to the sale of Genworth Canada on December 12, 2019, we held approximately 57% of its common shares on a consolidated basis through subsidiaries and accounted for the portion attributable to noncontrolling interests as a component of total equity. Upon sale closing, we deconsolidated Genworth Canada, which included removing the carrying value of ownership interest attributable to noncontrolling interests of $1.3 billion from total equity in our consolidated balance sheet as of December 31, 2019. |
Sale of Businesses
Sale of Businesses | 12 Months Ended |
Dec. 31, 2020 | |
Sale of Businesses | (23) Sale of Businesses Lifestyle protection insurance On December 1, 2015, we completed the sale of our lifestyle protection insurance business to AXA. In 2017, AXA sued us for damages on an indemnity in the 2015 agreement related to alleged remediation it paid to customers who purchased PPI. On July 20, 2020, we reached a settlement agreement related to losses incurred from mis-selling mis-selling The following table presents the amounts owed to AXA under the settlement agreement, which are reflected as liabilities related to discontinued operations in our consolidated balance sheet for the year ended December 31, 2020: (Amounts in millions) British U.S. Dollar Installment payments due to AXA: June 2022 £ 159 $ 217 September 2022: Beginning balance 158 217 Amounts billed as future losses (1) 29 39 Ending balance 187 256 Total amounts due under the promissory note 346 473 Future claims: Estimated beginning balance 107 146 Change in estimated future claims 1 1 Less: Amounts billed to date (1) (29 ) (39 ) Estimated future billings 79 108 Total amounts due to AXA under the settlement agreement £ 425 $ 581 (1) In January 2021, we were billed an additional amount related to future losses of £35 million that will be reflected as part of the September 2022 installment payment in our first quarter of 2021 financial results. There was no significant change to our current estimate of future billings of £79 million based on this most recent invoiced amount. An after-tax after-tax mis-selling To secure our obligation under the promissory note, we granted a 19.9% security interest in the outstanding common stock of GMHI and Genworth Australia to AXA. AXA does not have the right to sell or repledge the collateral and is not entitled to any voting rights. The collateral will be released back to us upon full repayment of the promissory note. Accordingly, the collateral arrangement has no impact on our consolidated financial statements. In the event AXA recovers amounts from third parties related to the mis-selling mis-selling The promissory note is also subject to certain mandatory prepayments upon the occurrence of: • the consummation of certain qualifying debt transactions in which total gross proceeds of at least $750 million are raised; • the consummation of certain qualifying equity issuances or dispositions with respect to GMHI, or any of our subsidiaries, in which total net cash proceeds of at least $475 million are raised; • certain dispositions of our U.S. mortgage insurance business; • the potential consummation of the China Oceanwide merger and the funding of the contemplated capital investment plan; • transactions involving a change of control of Genworth, other than the China Oceanwide transaction; and • receipt of dividends and sale proceeds from certain Genworth subsidiaries above certain threshold amounts. The promissory note also contains certain negative and affirmative covenants, restrictions imposed on the collateral, representations and warranties and customary events of default. In addition to the promissory note, we also have an unrelated liability that is owed to AXA associated with underwriting losses on a product sold by a distributor in our former lifestyle protection insurance business. As of December 31, 2020 and 2019, the balance of the liability is $16 million and $42 million, respectively, and is included as liabilities related to discontinued operations in our consolidated balance sheets. During the third quarter of 2020, based on an updated estimate, we reduced the liability by $28 million which was recognized as an after-tax In January 2020, we made an interim payment to AXA for £100 million ($134 million), which was accrued as a contingent liability and reflected as liabilities related to discontinued operations as of December 31, 2019. This amount was also included in income (loss) from discontinued operations for the year ended December 31, 2019. We have established our current best estimates for future claims that are still being processed under the settlement agreement, as well as for the unrelated liability related to underwriting losses and other expenses; however, there may be future adjustments to these estimates. If amounts are different from our estimates, it could result in an adjustment to our liabilities and an additional amount reflected in income (loss) from discontinued operations. Canada mortgage insurance business On December 12, 2019, we completed the sale of Genworth Canada to Brookfield Business Partners L.P. (“Brookfield”) and received approximately $1.7 billion in net cash proceeds. In the fourth quarter of 2019 and prior to sale closing, we also received a special dividend of approximately $54 million from Genworth Canada. This special dividend reduced the sales price on a per purchased share basis by CAD$1.45 per common share. During 2019, we recognized an after-tax The following table provides a summary of the loss on sale recorded in connection with the disposition of Genworth Canada for the year ended December 31, 2019: (Amounts in millions) Net cash proceeds $ 1,736 Add: carrying value of noncontrolling interests (1) 1,417 Total adjusted consideration (2) 3,153 Carrying value of the disposal group before accumulated other comprehensive loss 3,022 Add: total accumulated other comprehensive loss of disposal group (3) 325 Total adjusted carrying value of the disposal group 3,347 Pre-tax (194 ) Tax benefit on sale 73 After-tax $ (121 ) (1) In accordance with accounting guidance on the deconsolidation of a subsidiary or group of assets, the carrying amount of any noncontrolling interests in the subsidiary sold (adjusted to reflect amounts in accumulated other comprehensive income (loss) recognized upon final disposition) is added to the total fair value of the consideration to be received. (2) Represents the aggregate of the net cash proceeds received upon sale closing plus the adjusted carrying amount of noncontrolling interests in the subsidiary sold. (3) Consists primarily of cumulative losses on foreign currency translation adjustments of $369 million and deferred tax losses of $71 million, partially offset by unrealized investment gains of $115 million. A summary of operating results for Genworth Canada reported as discontinued operations were as follows for the years ended December 31: (Amounts in millions) 2019 2018 Revenues: Premiums $ 466 $ 525 Net investment income 132 141 Net investment gains (losses) (13 ) (137 ) Total revenues 585 529 Benefits and expenses: Benefits and other changes in policy reserves 79 78 Acquisition and operating expenses, net of deferrals 64 54 Amortization of deferred acquisition costs and intangibles 39 43 Interest expense (1) 50 43 Total benefits and expenses 232 218 Income before income taxes and loss on sale (2) 353 311 Provision for income taxes 111 81 Income before loss on sale 242 230 Loss on sale, net of taxes (121 ) — Income from discontinued operations, net of taxes 121 230 Less: net income from discontinued operations attributable to noncontrolling interests 123 108 Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders $ (2 ) $ 122 (1) Interest on debt assumed by Brookfield and interest on debt that was repaid as a result of the sale of Genworth Canada was allocated and reported in discontinued operations. The Term Loan, owed by Genworth Holdings and secured by GFIH’s ownership interest in Genworth Canada’s outstanding common shares, was repaid in connection with the close of the Genworth Canada sale. Accordingly, interest expense related to the Term Loan of $34 million and $25 million for the years ended December 31, 2019 and 2018, respectively, was allocated and reported in discontinued operations. (2) The years ended December 31, 2019 and 2018 include pre-tax |
Schedule I Genworth Financial,
Schedule I Genworth Financial, Inc. Summary of Investments-Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, the amortized cost or cost, fair value and carrying value of our invested assets were as follows: Type of investment Amortized cost Fair Carrying Fixed maturity securities: Bonds: U.S. government, agencies and authorities $ 3,401 $ 4,805 $ 4,805 State and political subdivisions 2,627 3,170 3,170 Non-U.S. government 1,420 1,559 1,559 Public utilities 5,143 6,195 6,195 All other corporate bonds 43,085 50,061 50,061 Total fixed maturity securities 55,676 65,790 65,790 Equity securities 468 476 476 Commercial mortgage loans, net 6,743 xxxxx 6,743 Policy loans 1,978 xxxxx 1,978 Other invested assets (1) 1,738 xxxxx 2,253 Total investments $ 66,603 xxxxx $ 77,240 (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, 2020 | |
Schedule II Genworth Financial, Inc. (Parent Company Only) | Schedule II Genworth Financial, Inc. (Parent Company Only) Balance Sheets (Amounts in millions) December 31, 2020 2019 Assets: Investments in subsidiaries $ 15,358 $ 14,079 Deferred tax asset 13 13 Other assets 2 4 Intercompany notes receivable — 119 Total assets $ 15,373 $ 14,215 Liabilities and stockholders’ equity Liabilities: Other liabilities $ 55 $ 30 Total liabilities 55 30 Commitments and contingencies Stockholders’ equity: Common stock 1 1 Additional paid-in 12,008 11,990 Accumulated other comprehensive income (loss) 4,425 3,433 Retained earnings 1,584 1,461 Treasury stock, at cost (2,700 ) (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 15,318 14,185 Total liabilities and stockholders’ equity $ 15,373 $ 14,215 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, 2020 2019 2018 Revenues: Net investment income $ (3 ) $ (3 ) $ (3 ) Total revenues (3 ) (3 ) (3 ) Expenses: Acquisition and operating expenses, net of deferrals 31 20 33 Interest expense 1 3 2 Total expenses 32 23 35 Loss before income taxes and equity in income of subsidiaries (35 ) (26 ) (38 ) Benefit from income taxes (2 ) (3 ) (6 ) Equity in income of subsidiaries 210 366 151 Income from continuing operations 177 343 119 Income from discontinued operations, net of taxes 1 — — Net income available to Genworth Financial, Inc.’s common stockholders $ 178 $ 343 $ 119 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, 2020 2019 2018 Net income available to Genworth Financial, Inc.’s common stockholders $ 178 $ 343 $ 119 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities without an allowance for credit losses 764 — — Net unrealized gains (losses) on securities with an allowance for credit losses (6 ) — — Net unrealized gains (losses) on securities not other-than-temporarily impaired — 859 (652 ) Net unrealized gains (losses) on other-than-temporarily impaired securities — 2 (2 ) Derivatives qualifying as hedges 209 221 (298 ) Foreign currency translation and other adjustments 25 307 (162 ) Total other comprehensive income (loss) 992 1,389 (1,114 ) Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ 1,170 $ 1,732 $ (995 ) 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, 2020 2019 2018 Cash flows from operating activities: Net income available to Genworth Financial, Inc.’s common stockholders $ 178 $ 343 $ 119 Less income from discontinued operations, net of taxes (1 ) — — Adjustments to reconcile net income available to Genworth Financial, Inc.’s common stockholders to net cash from operating activities: Equity in income from subsidiaries (210 ) (366 ) (151 ) Dividends from subsidiaries — 250 50 Deferred income taxes (1 ) 1 13 Stock-based compensation expense 39 26 35 Change in certain assets and liabilities: Accrued investment income and other assets 2 — — Current tax liabilities (1 ) 16 (35 ) Other liabilities and other policy-related balances 11 (17 ) (13 ) Net cash from operating activities 17 253 18 Cash flows used by investing activities: Intercompany notes receivable (10 ) (119 ) — Capital contributions paid to subsidiaries (2 ) (5 ) (6 ) Net cash used by investing activities (12 ) (124 ) (6 ) Cash flows used by financing activities: Other, net (5 ) (7 ) (2 ) Intercompany notes payable — (122 ) (10 ) Net cash used by financing activities (5 ) (129 ) (12 ) 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, 2020, 2019 and 2018 (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. (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 and Genworth Holdings have joint and several guarantees associated with the Tax Matters Agreement. (4) Income Taxes As of December 31, 2020 and 2019, Genworth Financial had a deferred tax asset of $13 million primarily comprised of share-based compensation. Genworth Financial’s current income tax payable was $3 million and $4 million as of December 31, 2020 and 2019, respectively. Net cash received (paid) for taxes was $—, $21 million and $(16) million for the years ended December 31, 2020, 2019 and 2018, respectively. (5) Supplemental Cash Flow Information In 2020, we forgave an intercompany loan of $129 million due from Genworth Holdings. The extinguishment of the loan between the related parties was treated as a non-cash (6) Sale of Business On December 1, 2015, we completed the sale of our lifestyle protection insurance business to AXA through our subsidiaries. In 2017, AXA sued GFIH, our wholly-owned indirect subsidiary, and Genworth Holdings for damages on an indemnity in the 2015 agreement related to alleged remediation it paid to customers who purchased PPI. On July 20, 2020, Genworth Holdings reached a settlement agreement related to losses incurred from mis-selling mis-selling million reflected in Genworth Financial’s consolidated statement of income for the year ended December 31, 2020 relate primarily to Genworth Holdings as it was the entity named as the primary defendant in the lawsuit and the obligor in the settlement agreement. Accordingly, the associated amounts reported as discontinued operations are included within equity in income of subsidiaries in the parent company statement of income for the year ended December 31, 2020. Income from discontinued operations presented in the parent company statement of income for the year ended December 31, 2020 relates to tax adjustments incurred by Genworth Financial related to previously disposed businesses. |
Schedule III Supplemental Insur
Schedule III Supplemental Insurance Information | 12 Months Ended |
Dec. 31, 2020 | |
Schedule III Supplemental Insurance Information | Schedule III Genworth Financial, Inc. Supplemental Insurance Information (Amounts in millions) Segment Deferred Future Policy Policyholder Liability for Policy Unearned December 31, 2020 U.S. Mortgage Insurance $ 29 $ — $ — $ 555 $ 307 Australia Mortgage Insurance 42 — — 331 1,193 U.S. Life Insurance 1,319 42,693 18,385 10,908 465 Runoff 139 2 3,118 12 3 Corporate and Other — — — 11 — Total $ 1,529 $ 42,695 $ 21,503 $ 11,817 $ 1,968 December 31, 2019 U.S. Mortgage Insurance $ 30 $ — $ — $ 233 $ 384 Australia Mortgage Insurance 37 — — 208 1,008 U.S. Life Insurance 1,613 40,382 19,006 10,500 498 Runoff 156 2 3,211 9 3 Corporate and Other — — — 8 — Total $ 1,836 $ 40,384 $ 22,217 $ 10,958 $ 1,893 See Report of Independent Registered Public Accounting Firm Schedule III—Continued Genworth Financial, Inc. Supplemental Insurance Information (Amounts in millions) Segment Premium Net Interest Credited Amortization of Other Premiums December 31, 2020 U.S. Mortgage Insurance $ 971 $ 133 $ 381 $ 14 $ 231 $ 894 Australia Mortgage Insurance 274 32 177 11 104 353 U.S. Life Insurance 2,858 2,878 5,164 400 643 2,837 Runoff — 210 214 23 48 — Corporate and Other 7 7 4 — 213 7 Total $ 4,110 $ 3,260 $ 5,940 $ 448 $ 1,239 $ 4,091 December 31, 2019 U.S. Mortgage Insurance $ 856 $ 117 $ 50 $ 8 $ 198 $ 818 Australia Mortgage Insurance 312 55 104 13 97 272 U.S. Life Insurance 2,861 2,852 5,398 340 653 2,834 Runoff — 187 185 16 54 — Corporate and Other 8 9 3 — 263 8 Total $ 4,037 $ 3,220 $ 5,740 $ 377 $ 1,265 $ 3,932 December 31, 2018 U.S. Mortgage Insurance $ 746 $ 93 $ 36 $ 9 $ 174 $ 764 Australia Mortgage Insurance 373 67 110 16 101 242 U.S. Life Insurance 2,867 2,781 5,877 218 639 2,843 Runoff — 174 189 33 57 — Corporate and Other 8 6 5 — 300 8 Total $ 3,994 $ 3,121 $ 6,217 $ 276 $ 1,271 $ 3,857 See Report of Independent Registered Public Accounting Firm |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 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 loss upon call or prepayment of available-for-sale 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 available-for-sale Allowance for Credit Losses and Impairments on Available-For-Sale On January 1, 2020, we adopted new accounting guidance related to credit losses on financial instruments. Under this new accounting guidance, securities in an unrealized loss position are evaluated to determine whether the decline in fair value is related to credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency/agencies and adverse conditions specifically related to the security, among other factors. If a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis and we have either (i) the intent to sell the security, or (ii) it is more likely than not that we will be required to sell the security prior to recovering the amortized cost, we record a reduction to the security’s amortized cost and recognize the loss in net investment gains (losses) for the difference between the security’s amortized cost and estimated fair value. If neither of the two preceding conditions exist, an allowance for credit losses is recorded and a loss is recognized in net investment gains (losses), limited to the amount that the fair value is less than the amortized cost basis. Losses are written off against the allowance when deemed uncollectible or when we intend to sell or expect we will be required to sell a security prior to recovering its amortized cost. When there is an allowance for credit losses, we reassess the credit losses each balance sheet date and subsequent increases or decreases are recorded as an adjustment to the allowance for credit losses, with a corresponding gain or loss recorded in net investment gains (losses). Estimating the cash flows expected to be collected is a quantitative and qualitative process that incorporates information received from third-party sources along with internal assumptions and judgments. When developing the estimate of cash flows expected to be collected at the individual security level, we utilize an analytical model that provides for various loss scenarios and consider the industry sector, current levels of subordination, geographic location and other relevant characteristics of the security or underlying assets, as well as reasonable and supportable forecasts. We regularly monitor our investment portfolio to ensure that securities with a credit loss are identified in a timely manner and any losses are recognized in the proper period. We exclude accrued interest related to available-for-sale available-for-sale 90 days Prior to the adoption of new accounting guidance related to credit losses on financial instruments on January 1, 2020, we evaluated securities in an unrealized loss position for other-than-temporary impairment as of each balance sheet date. For debt securities, we considered all available information relevant to the collectability of the security, including information about past events, then-current conditions, and reasonable and supportable forecasts, when developing the estimate of cash flows expected to be collected. More specifically for mortgage-backed We recognized other-than-temporary impairments on debt securities in an unrealized loss position when one of the following circumstances exists: • we did not expect full recovery of our amortized cost basis when due, • the present value of cash flows expected to be collected was less than our amortized cost basis, • we intended to sell a security or • it was more likely than not that we would be required to sell a security prior to recovery. For other-than-temporary impairments recognized during the period, we presented the total other-than-temporary comprehensi ve 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 period were calculated as the difference between the amortized cost and fair value. For other-than-temporarily impaired securities where we did not intend to sell the security and it was not more likely than not that we would be required to sell the security prior to recovery, total other-than-temporary impairments were adjusted by the portion of other-than-temporary impairments recognized in OCI (“non-credit”). For securities that were deemed to be other-than-temporarily impaired and a non-credit other-than-temporary To estimate the amount of other-than-temporary impairment attributed to credit losses on debt securities where we did not intend to sell the security and it was not more likely than not that we would be required to sell the security prior to recovery, we determined 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 was lower than the amortized cost of the security, the difference between the present value and amortized cost represented 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 While the other-than-temporary impairment model for debt securities generally included fixed maturity securities, there were certain hybrid securities that are classified as fixed maturity securities where the application of a debt impairment model depended on whether there had 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 have resulted in the application of the equity securities impairment model where we recognized an impairment charge 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 other-than-temporary |
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 securities, 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. 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 for which inputs are observable or where those significant value drivers are observable. • Level 3—Instruments for which 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 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 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 principal amounts outstanding, net of unamortized premium or discount, deferred expenses and allowance for credit 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. Loans that are considered uncollectible are carried on non-accrual non-accrual 90 days loan-to-value. non-accrual We determine the adequacy of the allowance for credit losses utilizing an analytical model that provides various loss scenarios based on historical experience adjusted for current events, trends, economic conditions and reasonable and supportable forecasts that result in a loss in the loan portfolio over the estimated life of the loans. We revert to historical credit loss experience for periods beyond forecasts that are reasonable and supportable. The allowance for credit losses is measured on a collective basis with consideration for debt service coverage ratio, debt-to-value, Accrued interest related to commercial mortgage loans is included in accrued investment income in our consolidated balance sheet and had a carrying value of $23 million as of December 31, 2020. We do not measure an allowance for credit losses related to accrued interest as uncollectible accrued interest related to our commercial mortgage loans is written off after 90 days and once collectability is determined to be uncertain and not probable. Amounts written off related to accrued interest are recorded as a credit loss expense included in net investment gains (losses). Prior to the adoption of new accounting guidance related to credit losses on financial instruments on January 1, 2020, we evaluated the impairment of commercial mortgage loans first on an individual loan basis. “Impaired” loans were 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. For individually impaired loans, we recorded an impairment charge when it was probable that a loss has been incurred. The impairment was recorded as an increase in the allowance for loan losses. If an individual loan was not deemed impaired, then we evaluated the remaining loans collectively to determine whether an impairment should be recorded. The allowance for loan losses for loans that were not considered individually impaired that were evaluated collectively was maintained at a level that we determined was adequate to absorb estimated probable incurred losses in the loan portfolio. Our process to determine the adequacy of the allowance utilized 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 included debt service coverage ratios, debt-to-value, |
Securities Lending Activity | g) Securities Lending Activity 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 |
Cash, Cash Equivalents and Restricted Cash | h) Cash, Cash Equivalents and Restricted Cash Certificates of deposit, money market funds and other highly liquid investments with original maturities of three months or less are considered cash equivalents in the consolidated balance sheets and consolidated statements of cash flows. Items with maturities greater than three months but less than one year at the time of acquisition are generally considered short-term investments. |
Deferred Acquisition Costs | i) 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 in-force 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 available-for-sale Therefore, DAC amortized based on expected gross profits is adjusted to reflect the effects that would have been recognized had the unrealized investment (gains) losses been actually realized with a corresponding amount recorded in other comprehensive income (loss). DAC associated with traditional long-duration insurance contracts is not adjusted for unrealized investment (gains) or losses unless a premium deficiency would have resulted upon the (gain) or loss being realized. Short-Duration Contracts. We regularly review our assumptions and test DAC for recoverability at least annually. For deferred annuity and universal life insurance contracts, if the present value of expected future gross profits is less than the unamortized DAC for a line of business, a charge to net 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 net 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 | j) Intangible Assets Present Value of Future Profits. We regularly review our PVFP assumptions and periodically test PVFP for recoverability similar to our treatment of DAC. See note 7 for additional information related to PVFP including recoverability. Deferred Sales Inducements to Contractholders. Other Intangible Assets |
Goodwill | k) 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. In 2020, we recorded a goodwill impairment charge of $5 million related to our |
Reinsurance | l) 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. Allowance for Credit Losses on Reinsurance Recoverables On January 1, 2020, we adopted new accounting guidance related to credit losses on financial instruments. Under this new accounting guidance, we record an allowance for credit losses related to reinsurance recoverables. The allowance for credit losses is evaluated based on historical loss experience adjusted for current events and reasonable and supportable forecasts from both internal and external sources. The allowance is measured by reinsurer, taking into consideration the reinsured product type and collateral type, and is calculated based on an externally reported probability of default corresponding to the reinsurer’s credit rating and the expected duration of the reinsurer’s contractual obligation to reimburse us for ceded claims on the underlying policies. Our estimate of the allowance reflects consideration for collateral securing the reinsurance agreements and expected recoveries of amounts previously charged off and expected to be charged off. We also consider other credit risk factors, including, among other factors, the historical frequency and severity of the associated insurance claims, aging of recoverables and regulatory, legal and economic factors, to determine if an additional incremental allowance for credit losses is required. No reversion adjustments are necessary as the starting point for our allowance for credit losses reflects historical loss experience covering the expected duration of the reinsurer’s contractual obligation to reimburse us. If available facts and circumstances indicate the reinsurance recoverable does not reflect expectations consistent with the collective analysis, the reinsurance recoverable is assessed on a separate basis. Write-offs are deducted from the allowance in the period the reinsurance recoverable is determined to be uncollectible. |
Derivatives | m) 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 net 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 For all qualifying and highly effective cash flow hedges, changes in fair value of the derivative instrument are 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 net 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 net 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 net income (loss) when net 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 net 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 net income (loss). Changes in the fair value of non-qualifying 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 are 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 re-pledge non-cash re-pledged. derivative counterparties. Fixed maturity securities that we pledge as collateral remain on our consolidated balance sheet within fixed maturity securities available-for-sale. |
Separate Accounts and Related Insurance Obligations | n) 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 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 | o) Insurance Reserves Future Policy Benefits The liability for future policy benefits is equal to the present value of expected future benefits and expenses, less the present value of expected future net premiums based on assumptions including projected interest rates and 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 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, all of which are locked-in 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 gross premiums are less than the current present value of expected future benefits and expenses (including any unamortized DAC), a charge to net 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 in-force 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 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 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 and term 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 claims experience, which includes assumptions for insured mortality (i.e. life expectancy or longevity), interest rates and policyholder persistency or lapses (i.e., the probability that a policy or contract will remain in-force 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 | p) 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 projected interest rates and 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 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. The estimates are determined using either a factor-based approach, in which assumptions of claim rates for loans in default and the average amount paid for loans that result in a claim are calculated using traditional actuarial techniques, or a case-based approach, in which each individual delinquent loan is reviewed and a best-estimate loss is determined based on the status of the insured loan and an estimation of net sale proceeds from the disposition of the mortgaged property. 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 moves toward foreclosure and the likelihood of the associated claim loss increases, the amount of the loss reserves associated with the potential claims may also increase. Management considers the liability for policy and contract claims provided to be its best estimate to cover the losses that have occurred. Management monitors actual experience, and where circumstances warrant, will revise its assumptions. The methods of determining such estimates and establishing the reserves are reviewed periodically and any adjustments are reflected in operations in the period in which they become known. Future developments may result in losses and loss expenses greater or less than the liability for policy and contract claims provided. |
Unearned Premiums | q) 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, |
Stock-Based Compensation | r) 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 | s) 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 | t) 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 net 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 life/non-life |
Foreign Currency Translation | u) 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 net income (loss) and have not been material in any years presented in our consolidated statements of income. |
Variable Interest Entities | v) 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, reinsurance transactions and certain mortgage insurance policies. We have a beneficial interest in a VIE where we are the servicer and transferor of certain assets that were sold to the VIE. Our primary economic interest in this VIE represents the excess interest of the commercial mortgage loans. 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 and is comprised of an entity backed by commercial mortgage loans. 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, consolidation of the VIE is required. As of December 31, 2020 and 2019, we had $38 million and $47 million, respectively, of total securitized assets required to be consolidated. The assets held by the securitization entity are restricted and can only be used to fulfill the obligations of the securitization entity. We do not have any additional exposure or guarantees associated with this securitization entity. There was no new asset securitization activity in 2020. We have reinsurance agreements with entities that are considered VIEs. Our involvement with these VIEs represents mortgage insurance claim coverage through excess of loss reinsurance, which includes significant insurance risk and a reasonable possibility of a significant loss but does not result in the unilateral power to direct the activities that most significantly affect the VIEs’ economic performance or result in the obligation to absorb losses or the right to receive benefits. Accordingly, consolidation of the VIEs is not required. The assets of the VIEs are deposited in a reinsurance trust for our benefit that will be the source of reinsurance claim payments. Refer to note 8 for additional information related to our reinsurance agreements with entities that are considered VIEs. 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 represents a passive investment in the returns generated by the VIE and typically does 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. |
Accounting Pronouncements Recently Adopted | w) Accounting Changes Defined Benefit Plan Disclosures On January 1, 2020, we adopted new accounting guidance related to disclosure requirements for defined benefit plans as part of the Financial Accounting Standards Board’s (the “FASB”) disclosure framework project. The guidance adds, eliminates and modifies certain disclosure requirements for defined benefit pension and other postretirement benefit plans. We adopted this new accounting guidance using the retrospective method, which did not have a significant impact on our consolidated financial statements and disclosures. Fair Value Disclosures On January 1, 2020, we adopted new accounting guidance related to fair value disclosure requirements as part of the FASB’s disclosure framework project. The guidance adds, eliminates and modifies certain disclosure requirements for fair value measurements. The guidance includes new disclosure requirements related to changes 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. We adopted this new accounting guidance using the prospective method for disclosures related to changes 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, the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty and the retrospective method for all other disclosures. This accounting guidance did not impact our consolidated financial statements but impacted our fair value disclosures. Accounting for Credit Losses on Financial Instruments On January 1, 2020, we adopted new accounting guidance related to accounting for credit losses on financial instruments. The guidance requires entities to recognize an allowance equal to its estimate of lifetime expected credit losses and applies to most financial instruments not measured at fair value, which primarily includes our commercial mortgage loans, bank loan investments and reinsurance recoverables. The new guidance also requires the recognition of an allowance for expected credit losses as a liability in our consolidated balance sheet for off-balance instrument-by-instrument We adopted the guidance related to our investments carried at amortized cost, reinsurance recoverables and off-balance expected credit losses for our off-balance We adopted the guidance related to our available-for-sale available-for-sale Reference Rate Reform In March 2020 and January 2021, the FASB issued new accounting guidance related to reference rate reform, which was effective for us on January 1, 2020. The guidance provides temporary guidance to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform, which includes the transition away from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. This new guidance provides optional practical expedients and exceptions for applying generally accepted accounting principles to investments, derivatives or other transactions affected by reference rate reform such as those that impact the assessment of derivative hedge effectiveness and contract modifications, to include continuing hedge accounting when certain critical terms of a hedging relationship change and modifying certain effectiveness assessments to exclude certain potential sources of ineffectiveness. The new guidance was updated to clarify that the optional practical expedients and exceptions can be applied to derivatives that use an interest rate for margining, discounting, or contract price alignment. In addition to the optional practical expedients, the guidance includes a general principle that permits an entity to consider contract modifications due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. We adopted this guidance prospectively and it did not have a significant impact on our consolidated financial statements or disclosures. However, the amendments in this guidance may be elected over time through December 31, 2022 as reference rate reform activities occur and therefore, this guidance may impact our procedures, including our process for assessing the effectiveness of our cash flow hedging relationships, determined on an individual hedge basis, as we implement measures to transition away from LIBOR. Benchmark Interest Rates Used in Derivative Hedge Accounting On January 1, 2019, we adopted 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 using the prospective method, which did not have any impact on our consolidated financial statements and disclosures. Nonemployee Shared-Based Payments On January 1, 2019, we adopted new accounting guidance related to accounting for nonemployee share-based Amortization Period of Certain Callable Debt Securities Held at a Premium On January 1, 2019, we adopted new accounting guidance related to 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 using the modified retrospective method, which did not have a significant impact on our consolidated financial statements at adoption. Accounting for Leases On January 1, 2019, we adopted new accounting guidance related to the accounting for leases. The new guidance generally requires lessees to recognize both a right-of-use right-of-use de-recognized right-of-use right-of-use Our leased assets are predominantly classified as operating leases and consist of office space in 11 locations primarily in the United States and Australia. Lease payments included in the calculation of our lease liability include fixed amounts contained within each rental agreement and variable lease payments that are based upon an index or rate. We have elected to combine lease and non-lease non-lease 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, including amounts related to our Canada mortgage insurance business which were classified as held for sale prior to the fourth quarter of 2019: (Amounts in millions) Accumulated other comprehensive Retained Total Net Derivatives Foreign currency 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. 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 and 2019 goodwill impairment tests. 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 and reclassified a $20 million make-whole premium, which resulted in an increase in net cash used by financing activities and an increase in net cash from operating activities in our statement of cash flows for the year ended December 31, 2016. 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 clarified that the need for a valuation allowance on a deferred tax asset related to available-for-sale income and $17 million of gains related to limited partnerships previously recorded at cost to cumulative effect of change in accounting within retained earnings, including amounts related to our Canada mortgage insurance business which were classified as held for sale prior to the fourth quarter of 2019. 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 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. |
Accounting Pronouncements Not Yet Adopted | x) Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued new accounting guidance related to simplifying the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. We adopted this new accounting guidance on January 1, 2021 using the retrospective method or modified retrospective method for certain changes and prospective method for all other changes, which did not have a significant impact on our consolidated financial statements and disclosures. 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 catch-up • 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 • the provision for adverse deviation and the premium deficiency test will be eliminated; • market risk benefits associated with deposit-type contracts will be measured at fair value with changes related to instrument-specific credit risk recorded in other comprehensive income (loss) and remaining 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. This guidance is effective for us on January 1, 2023 using the modified retrospective method, with early adoption permitted, which we do not intend to elect. Given the nature and extent of the changes to our operations, this guidance is expected to have a significant impact on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Components for Cumulative Effect Adjustment | (Amounts in millions) Accumulated other comprehensive Retained Total Net Derivatives Foreign currency 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, 2020 | |
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) 2020 2019 2018 Weighted-average common shares used in basic earnings (loss) per share calculations 505.2 502.9 500.4 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 6.4 6.8 — Weighted-average common shares used in diluted earnings (loss) per share calculations (1) 511.6 509.7 500.4 Income from continuing operations: Income from continuing operations $ 761 $ 519 $ 67 Less: net income from continuing operations attributable to noncontrolling interests 34 64 70 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 727 $ 455 $ (3 ) Basic per share $ 1.44 $ 0.90 $ (0.01 ) Diluted per share $ 1.42 $ 0.89 $ (0.01 ) Income (loss) from discontinued operations: Income (loss) from discontinued operations, net of taxes $ (549 ) $ 11 $ 230 Less: net income from discontinued operations attributable to noncontrolling interests — 123 108 Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders $ (549 ) $ (112 ) $ 122 Basic per share $ (1.09 ) $ (0.22 ) $ 0.24 Diluted per share $ (1.07 ) $ (0.22 ) $ 0.24 Net income (loss): Income from continuing operations $ 761 $ 519 $ 67 Income (loss) from discontinued operations, net of taxes (549 ) 11 230 Net income 212 530 297 Less: net income attributable to noncontrolling interests 34 187 178 Net income available to Genworth Financial, Inc.’s common stockholders $ 178 $ 343 $ 119 Basic per share (2) $ 0.35 $ 0.68 $ 0.24 Diluted per share (2) $ 0.35 $ 0.67 $ 0.24 (1) Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the year ended December 31, 2018, 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 3.8 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, 2018, dilutive potential weighted-average common shares outstanding would have been 504.2 million. (2) May not total due to whole number calculation. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net Investment Income | Sources of net investment income were as follows for the years ended December 31: (Amounts in millions) 2020 2019 2018 Fixed maturity securities—taxable $ 2,480 $ 2,494 $ 2,456 Fixed maturity securities—non-taxable 6 8 11 Equity securities 13 16 20 Commercial mortgage loans 345 348 327 Policy loans 199 180 169 Other invested assets 295 234 181 Cash, cash equivalents, restricted cash and short-term investments 17 39 48 Gross investment income before expenses and fees 3,355 3,319 3,212 Expenses and fees (95 ) (99 ) (91 ) Net investment income $ 3,260 $ 3,220 $ 3,121 |
Net Investment Gains (Losses) | The following table sets forth net investment gains (losses) for the years ended December 31: (Amounts in millions) 2020 2019 2018 Available-for-sale Realized gains $ 512 $ 107 $ 162 Realized losses (34 ) (39 ) (137 ) Net realized gains (losses) on available-for-sale 478 68 25 Impairments: Total other-than-temporary impairments — (1 ) — Portion of other-than-temporary impairments included in other comprehensive income (loss) — — — Net other-than-temporary impairments — (1 ) — Net change in allowance for credit losses on available-for-sale (5 ) — — Write-down of available-for-sale (1) (4 ) — — Net realized gains (losses) on equity securities sold (1 ) 9 11 Net unrealized gains (losses) on equity securities still held 2 14 (34 ) Limited partnerships 112 29 11 Commercial mortgage loans (2 ) (2 ) — Derivative instruments (2) (17 ) (72 ) (22 ) Other (5 ) 5 — Net investment gains (losses) $ 558 $ 50 $ (9 ) (1) Represents write-down of securities we intend to sell or will be required to sell prior to recovery of the amortized cost basis. (2) See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). |
Allowance for credit losses related to fixed maturity securities | The following table represents the allowance for credit losses aggregated by security type for available-for-sale (Amounts in millions) Beginning Increase from Increase Securities Decrease Write-offs Recoveries Ending Fixed maturity securities: Non-U.S. corporate $ — $ 4 $ (2 ) $ (1 ) $ — $ — $ — $ 1 Commercial mortgage - — 3 — — — — — 3 Total available-for-sale fixed $ — $ 7 $ (2 ) $ (1 ) $ — $ — $ — $ 4 |
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) 2019 2018 Beginning balance $ 24 $ 32 Reductions: Securities sold, paid down or disposed (2 ) (8 ) Ending balance $ 22 $ 24 |
Unrealized Investment Gains and Losses | Net unrealized gains and losses on available-for-sale (Amounts in millions) 2020 2019 2018 Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses (1) $ 10,159 $ 6,676 $ 1,775 Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses (1) (7 ) — — Adjustments to DAC, PVFP, sales inducements and benefit reserves (7,302 ) (4,789 ) (952 ) Income taxes, net (611 ) (406 ) (190 ) Net unrealized investment gains (losses) 2,239 1,481 633 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 25 25 38 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 2,214 $ 1,456 $ 595 (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) 2020 2019 2018 Beginning balance $ 1,456 $ 595 $ 1,085 Cumulative effect of changes in accounting: Stranded tax effects — — 189 Recognition and measurement of financial assets and liabilities, net of taxes of $—, $— and $18 — — (25 ) Total cumulative effect of changes in accounting — — 164 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities 3,950 4,980 (3,327 ) Adjustment to DAC (1) 122 (956 ) 1,182 Adjustment to PVFP (1 ) (49 ) 69 Adjustment to sales inducements (5 ) (32 ) 34 Adjustment to benefit reserves and policyholder contract balances (2) (2,629 ) (2,800 ) 1,208 Provision for income taxes (305 ) (233 ) 181 Change in unrealized gains (losses) on investment securities 1,132 910 (653 ) Reclassification adjustments to net investment (gains) losses, net of taxes of $100, $17 and $5 (374 ) (62 ) (18 ) Change in net unrealized investment gains (losses) 758 848 (671 ) Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests — (13 ) (17 ) Ending balance $ 2,214 $ 1,456 $ 595 (1) See note 6 for additional information. (2) See note 9 for additional information. |
Fixed Maturity Securities | As of December 31, 2020, the amortized cost or cost, gross unrealized gains (losses), allowance for credit losses and fair value of our fixed maturity securities classified as available-for-sale (Amounts in millions) Amortized Gross Gross Allowance Fair Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 3,401 $ 1,404 $ — $ — $ 4,805 State and political subdivisions 2,627 544 (1 ) — 3,170 Non-U.S. 1,420 144 (5 ) — 1,559 U.S. corporate: Utilities 4,244 970 (2 ) — 5,212 Energy 2,549 367 (16 ) — 2,900 Finance and insurance 7,843 1,307 (2 ) — 9,148 Consumer—non-cyclical 5,147 1,324 (1 ) — 6,470 Technology and communications 3,207 620 — — 3,827 Industrial 1,375 232 — — 1,607 Capital goods 2,466 535 — — 3,001 Consumer—cyclical 1,722 285 — — 2,007 Transportation 1,200 304 (2 ) — 1,502 Other 395 45 — — 440 Total U.S. corporate 30,148 5,989 (23 ) — 36,114 Non-U.S. Utilities 899 84 — — 983 Energy 1,190 209 (1 ) — 1,398 Finance and insurance 2,470 357 (6 ) (1 ) 2,820 Consumer—non-cyclical 712 113 (1 ) — 824 Technology and communications 1,082 229 — — 1,311 Industrial 970 159 — — 1,129 Capital goods 549 68 (1 ) — 616 Consumer—cyclical 356 41 (1 ) — 396 Transportation 520 90 (1 ) — 609 Other 1,582 246 — — 1,828 Total non-U.S. 10,330 1,596 (11 ) (1 ) 11,914 Residential mortgage-backed 1,698 211 — — 1,909 Commercial mortgage-backed 2,759 231 (13 ) (3 ) 2,974 Other asset-backed 3,293 56 (4 ) — 3,345 Total available-for-sale $ 55,676 $ 10,175 $ (57 ) $ (4 ) $ 65,790 As of December 31, 2019, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity securities classified as available-for-sale Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized cost or cost Not other-than- temporarily impaired Other-than- temporarily impaired Not other-than- temporarily impaired Other-than- temporarily impaired Fair value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,073 $ 952 $ — $ — $ — $ 5,025 State 2,394 355 — (2 ) — 2,747 Non-U.S. 1,235 117 — (2 ) — 1,350 U.S. corporate: Utilities 4,322 675 — — — 4,997 Energy 2,404 303 — (8 ) — 2,699 Finance and insurance 6,977 798 — (1 ) — 7,774 Consumer—non-cyclical 4,909 796 — (4 ) — 5,701 Technology and communications 2,883 363 — (1 ) — 3,245 Industrial 1,271 125 — — — 1,396 Capital goods 2,345 367 — (1 ) — 2,711 Consumer—cyclical 1,590 172 — (2 ) — 1,760 Transportation 1,320 187 — (1 ) — 1,506 Other 292 30 — — — 322 Total U.S. corporate 28,313 3,816 — (18 ) — 32,111 Non-U.S. Utilities 779 50 — — — 829 Energy 1,140 179 — — — 1,319 Finance and insurance 2,087 232 — — — 2,319 Consumer—non-cyclical 631 55 — (2 ) — 684 Technology and communications 1,010 128 — — — 1,138 Industrial 896 92 — — — 988 Capital goods 565 40 — — — 605 Consumer—cyclical 373 24 — — — 397 Transportation 557 73 — (1 ) — 629 Other 1,431 188 — (2 ) — 1,617 Total non-U.S. 9,469 1,061 — (5 ) — 10,525 Residential mortgage-backed 2,057 199 15 (1 ) — 2,270 Commercial mortgage-backed 2,897 137 — (8 ) — 3,026 Other asset-backed 3,262 30 — (7 ) — 3,285 Total available-for-sale $ 53,700 $ 6,667 $ 15 $ (43 ) $ — $ 60,339 |
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 for which an allowance for credit losses has not been recorded, 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, 2020: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross unrealized Number Fair Gross unrealized Number Fair Gross unrealized Number Description of Securities Fixed maturity securities: State and political subdivisions $ 28 $ (1 ) 6 $ — $ — — $ 28 $ (1 ) 6 Non-U.S. 135 (5 ) 13 — — — 135 (5 ) 13 U.S. corporate 345 (20 ) 59 33 (3 ) 4 378 (23 ) 63 Non-U.S. 145 (4 ) 32 6 (1 ) 1 151 (5 ) 33 Commercial mortgage-backed 227 (11 ) 34 1 (1 ) 1 228 (12 ) 35 Other asset-backed 238 (2 ) 60 207 (2 ) 48 445 (4 ) 108 Total for fixed maturity securities in an unrealized loss position $ 1,118 $ (43 ) 204 $ 247 $ (7 ) 54 $ 1,365 $ (50 ) 258 % Below cost: <20% Below cost $ 1,108 $ (36 ) 202 $ 246 $ (6 ) 53 $ 1,354 $ (42 ) 255 20%-50% 10 (7 ) 2 1 (1 ) 1 11 (8 ) 3 Total for fixed maturity securities in an unrealized loss position $ 1,118 $ (43 ) 204 $ 247 $ (7 ) 54 $ 1,365 $ (50 ) 258 Investment grade $ 943 $ (24 ) 171 $ 207 $ (2 ) 48 $ 1,150 $ (26 ) 219 Below investment grade 175 (19 ) 33 40 (5 ) 6 215 (24 ) 39 Total for fixed maturity securities in an unrealized loss position $ 1,118 $ (43 ) 204 $ 247 $ (7 ) 54 $ 1,365 $ (50 ) 258 The following table presents the gross unrealized losses and fair values of our corporate securities for which an allowance for credit losses has not been recorded, 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, 202 0 Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross unrealized Number Fair Gross unrealized Number Fair Gross unrealized Number Description of Securities U.S. corporate: Utilities $ 49 $ (2 ) 9 $ — $ — — $ 49 $ (2 ) 9 Energy 106 (13 ) 19 33 (3 ) 4 139 (16 ) 23 Finance and insurance 128 (2 ) 15 — — — 128 (2 ) 15 Consumer—non-cyclical 16 (1 ) 5 — — — 16 (1 ) 5 Transportation 46 (2 ) 11 — — — 46 (2 ) 11 Subtotal, U.S. corporate securities 345 (20 ) 59 33 (3 ) 4 378 (23 ) 63 Non-U.S. Energy 66 (1 ) 10 — — — 66 (1 ) 10 Consumer—non-cyclical — — — 6 (1 ) 1 6 (1 ) 1 Capital goods 31 (1 ) 8 — — — 31 (1 ) 8 Consumer—cyclical 15 (1 ) 6 — — — 15 (1 ) 6 Transportation 33 (1 ) 8 — — — 33 (1 ) 8 Subtotal, non-U.S. 145 (4 ) 32 6 (1 ) 1 151 (5 ) 33 Total for corporate securities in an unrealized loss position $ 490 $ (24 ) 91 $ 39 $ (4 ) 5 $ 529 $ (28 ) 96 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, 2019: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities Fixed maturity securities: State and political subdivisions $ 91 $ (2 ) 14 $ — $ — — $ 91 $ (2 ) 14 Non-U.S. 224 (2 ) 20 — — — 224 (2 ) 20 U.S. corporate 123 (5 ) 27 302 (13 ) 33 425 (18 ) 60 Non-U.S. 79 (1 ) 12 62 (4 ) 7 141 (5 ) 19 Residential mortgage-backed 22 (1 ) 10 — — — 22 (1 ) 10 Commercial mortgage-backed 381 (5 ) 51 14 (3 ) 3 395 (8 ) 54 Other asset-backed 532 (2 ) 97 439 (5 ) 115 971 (7 ) 212 Total for fixed maturity securities in an $ 1,452 $ (18 ) 231 $ 817 $ (25 ) 158 $ 2,269 $ (43 ) 389 % Below cost: <20% Below cost $ 1,452 $ (18 ) 231 $ 807 $ (20 ) 155 $ 2,259 $ (38 ) 386 20%-50% — — — 10 (5 ) 3 10 (5 ) 3 Total for fixed maturity securities in an $ 1,452 $ (18 ) 231 $ 817 $ (25 ) 158 $ 2,269 $ (43 ) 389 Investment grade $ 1,408 $ (14 ) 223 $ 702 $ (15 ) 145 $ 2,110 $ (29 ) 368 Below investment grade 44 (4 ) 8 115 (10 ) 13 159 (14 ) 21 Total for fixed maturity securities in an $ 1,452 $ (18 ) 231 $ 817 $ (25 ) 158 $ 2,269 $ (43 ) 389 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, 2019: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities U.S. corporate: Energy $ 54 $ (3 ) 10 $ 80 $ (5 ) 10 $ 134 $ (8 ) 20 Finance and insurance — — — 34 (1 ) 4 34 (1 ) 4 Consumer—non-cyclical 34 (1 ) 9 93 (3 ) 9 127 (4 ) 18 Technology and communications — — — 18 (1 ) 2 18 (1 ) 2 Capital goods 35 (1 ) 8 — — — 35 (1 ) 8 Consumer—cyclical — — — 54 (2 ) 6 54 (2 ) 6 Transportation — — — 23 (1 ) 2 23 (1 ) 2 Subtotal, U.S. corporate securities 123 (5 ) 27 302 (13 ) 33 425 (18 ) 60 Non-U.S. Consumer—non-cyclical — — — 31 (2 ) 3 31 (2 ) 3 Transportation — — — 25 (1 ) 3 25 (1 ) 3 Other 79 (1 ) 12 6 (1 ) 1 85 (2 ) 13 Subtotal, non-U.S. 79 (1 ) 12 62 (4 ) 7 141 (5 ) 19 Total for corporate securities in an unrealized loss position $ 202 $ (6 ) 39 $ 364 $ (17 ) 40 $ 566 $ (23 ) 79 |
Maturity Distribution of Fixed Maturity Securities | Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. (Amounts in millions) Amortized Fair Due one year or less $ 1,425 $ 1,447 Due after one year through five years 9,863 10,586 Due after five years through ten years 13,285 15,177 Due after ten years 23,353 30,352 Subtotal 47,926 57,562 Residential mortgage-backed 1,698 1,909 Commercial mortgage-backed 2,759 2,974 Other asset-backed 3,293 3,345 Total $ 55,676 $ 65,790 |
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans | The following table sets forth the allowance for credit losses related to commercial mortgage loans as of or for the years ended December 31: (Amounts in millions) 2020 2019 2018 Allowance for credit losses: Beginning balance $ 13 $ 9 $ 9 Cumulative effect of change in accounting 16 — — Provision 2 4 — Write-offs — — — Recoveries — — — Ending balance $ 31 $ 13 $ 9 |
Commercial Mortgage Loans By Credit Quality Indicator | The following tables set forth commercial mortgage loans by year of origination and credit quality indicator as of December 31, 2020: (Amounts in millions) 2020 2019 2018 2017 2016 2015 and Total Debt-to-value: 0% - 50% $ 60 $ 24 $ 78 $ 154 $ 147 $ 2,182 $ 2,645 51% - 60% 50 89 321 299 164 705 1,628 61% - 75% 431 647 530 270 152 366 2,396 76% - 100% — 23 36 — 11 33 103 Greater than 100% — — — — — 2 2 Total amortized cost $ 541 $ 783 $ 965 $ 723 $ 474 $ 3,288 $ 6,774 Debt service coverage ratio: Less than 1.00 $ 3 $ 8 $ 27 $ 10 $ — $ 168 $ 216 1.00 - 1.25 58 68 54 42 25 279 526 1.26 - 1.50 80 241 204 60 74 333 992 1.51 - 2.00 279 294 446 342 252 977 2,590 Greater than 2.00 121 172 234 269 123 1,531 2,450 Total amortized cost $ 541 $ 783 $ 965 $ 723 $ 474 $ 3,288 $ 6,774 |
Loan To Value Ratio | |
Commercial Mortgage Loans By Credit Quality Indicator | The following tables set forth the debt-to-value 2020 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater Total Property type: Retail $ 913 $ 639 $ 859 $ 29 $ 2 $ 2,442 Industrial 798 351 456 33 — 1,638 Office 523 431 595 18 — 1,567 Apartments 199 86 238 6 — 529 Mixed use 112 47 127 — — 286 Other 100 74 121 17 — 312 Total amortized cost $ 2,645 $ 1,628 $ 2,396 $ 103 $ 2 $ 6,774 % of total 39 % 24 % 35 % 2 % — % 100 % Weighted-average debt service coverage ratio 2.40 1.83 1.61 1.49 0.64 1.97 2019 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater Total Property type: Retail $ 986 $ 579 $ 1,025 $ — $ — $ 2,590 Industrial 808 337 525 — — 1,670 Office 529 380 723 — — 1,632 Apartments 211 110 220 — — 541 Mixed use 104 70 107 — — 281 Other 56 69 141 — — 266 Total recorded investment $ 2,694 $ 1,545 $ 2,741 $ — $ — $ 6,980 % of total 39 % 22 % 39 % — % — % 100 % Weighted-average debt service coverage ratio 2.32 1.81 1.55 — — 1.90 |
Debt Service Coverage Ratio | |
Commercial Mortgage Loans By Credit Quality Indicator | The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of December : 2020 (Amounts in millions) Less 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater Total Property type: Retail $ 55 $ 169 $ 483 $ 969 $ 766 $ 2,442 Industrial 21 85 143 616 773 1,638 Office 101 99 170 634 563 1,567 Apartments 9 24 126 228 142 529 Mixed use 5 24 29 115 113 286 Other 25 125 41 28 93 312 Total amortized cost $ 216 $ 526 $ 992 $ 2,590 $ 2,450 $ 6,774 % of total 3 % 8 % 15 % 38 % 36 % 100 % Weighted-average debt-to-value 57 % 62 % 62 % 57 % 44 % 53 % 2019 Greater (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 than 2.00 Total Property type: Retail $ 68 $ 141 $ 596 $ 1,148 $ 637 $ 2,590 Industrial 24 51 221 658 716 1,670 Office 44 89 277 751 471 1,632 Apartments 16 32 129 175 189 541 Mixed use 4 16 37 107 117 281 Other 34 147 20 31 34 266 Total recorded investment $ 190 $ 476 $ 1,280 $ 2,870 $ 2,164 $ 6,980 % of total 3 % 7 % 18 % 41 % 31 % 100 % Weighted-average debt-to-value 59 % 61 % 63 % 58 % 41 % 54 % |
Other Geographic Area | Commercial Mortgage Loan | |
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans | We diversify our commercial mortgage loans by both property type and geographic region. The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of December 31: 2020 2019 (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,442 36 % $ 2,590 37 % Industrial 1,638 24 1,670 24 Office 1,567 23 1,632 23 Apartments 529 8 541 8 Mixed use 286 4 281 4 Other 312 5 266 4 Subtotal 6,774 100 % 6,980 100 % Unamortized balance of loan origination fees — (4 ) Allowance for credit losses (31 ) (13 ) Total $ 6,743 $ 6,963 2020 2019 (Amounts in millions) Carrying % of Carrying % of Geographic region: South Atlantic $ 1,711 25 % $ 1,715 25 % Pacific 1,510 22 1,673 24 Middle Atlantic 994 15 992 14 Mountain 781 12 753 11 West North Central 467 7 488 7 East North Central 441 6 455 6 West South Central 423 6 433 6 New England 260 4 257 4 East South Central 187 3 214 3 Subtotal 6,774 100 % 6,980 100 % Unamortized balance of loan origination fees — (4 ) Allowance for credit losses (31 ) (13 ) Total $ 6,743 $ 6,963 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule Of Positions in Derivative Instruments | The following table sets forth our positions in derivative instruments as of December 31: Derivative assets Derivative liabilities Fair value Fair value (Amounts in millions) Balance sheet classification 2020 2019 Balance 2020 2019 Derivatives designated as hedges Cash flow hedges: Interest rate swaps Other invested assets $ 468 $ 197 Other liabilities $ 23 $ 10 Foreign currency swaps Other invested assets 1 4 Other liabilities 2 — Total cash flow hedges 469 201 25 10 Total derivatives designated as hedges 469 201 25 10 Derivatives not designated as hedges Equity index options Other invested assets 63 81 Other liabilities — — Financial futures Other invested assets — — Other liabilities — — Other foreign currency contracts Other invested assets 55 8 Other liabilities 1 1 GMWB embedded derivatives Reinsurance (1) 26 20 Policyholder (2) 379 323 Fixed index annuity embedded derivatives Other assets — — Policyholder (3) 399 452 Indexed universal life embedded derivatives Reinsurance — — Policyholder (4) 26 19 Total derivatives not designated as hedges 144 109 805 795 Total derivatives $ 613 $ 310 $ 830 $ 805 (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: (Notional in millions) Measurement December 31, Additions Maturities/ December 31, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 8,968 $ 1,844 $ (2,634 ) $ 8,178 Foreign currency swaps Notional 110 17 — 127 Total cash flow hedges 9,078 1,861 (2,634 ) 8,305 Total derivatives designated as hedges 9,078 1,861 (2,634 ) 8,305 Derivatives not designated as hedges Interest rate swaps Notional 4,674 — — 4,674 Equity index options Notional 2,451 2,053 (2,504 ) 2,000 Financial futures Notional 1,182 5,516 (5,594 ) 1,104 Other foreign currency contracts Notional 628 7,080 (5,937 ) 1,771 Total derivatives not designated as hedges 8,935 14,649 (14,035 ) 9,549 Total derivatives $ 18,013 $ 16,510 $ (16,669 ) $ 17,854 (Number of policies) Measurement December 31, Additions Maturities/ December 31, Derivatives not designated as hedges GMWB embedded derivatives Policies 25,623 — (1,910 ) 23,713 Fixed index annuity embedded derivatives Policies 15,441 — (2,663 ) 12,778 Indexed universal life embedded derivatives Policies 884 — (42 ) 842 |
Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges | The following table provides information about the pre-tax income effects of cash flow hedges for the year ended December 31, 2020: (Amounts in millions) Gain Gain (loss) Classification of Gain (loss) Classification of Interest rate swaps hedging $ 482 $ 196 Net investment $ — Net gains (losses) Interest rate swaps hedging — 12 Net investment — Net investment Interest rate swaps hedging liabilities (38 ) — Interest expense — Net investment Foreign currency swaps (5 ) — Net investment — Net investment Total $ 439 $ 208 $ — The following table provides information about the pre-tax income effects of cash flow hedges for the year ended December 31, 2019: (Amounts in millions) Gain Gain (loss) Classification of gain (loss) net income Gain (loss) Classification of gain (loss) recognized in Interest rate swaps hedging assets $ 456 $ 164 Net investment $ — Net investment Interest rate swaps hedging assets — 6 Net investment — Net investment Interest rate swaps hedging liabilities (36 ) — Interest expense — Net investment Foreign currency swaps (2 ) — Net investment — Net investment Foreign currency swaps — — Net investment 2 Net investment Total $ 418 $ 170 $ 2 The following table provides information about the pre-tax income effects of cash flow hedges for the year ended December 31, 2018: (Amounts in millions) Gain (loss) Gain (loss) net income Classification of gain (loss) reclassified into net Gain (loss) Classification of gain (loss) recognized in Interest rate swaps hedging assets $ (261 ) $ 153 Net investment $ — Net investment Interest rate swaps hedging assets — 9 Net investment — Net investment Interest rate swaps hedging liabilities 16 — Interest expense — Net investment Foreign currency swaps 4 — Net investment — Net investment Total $ (241 ) $ 162 $ — |
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) 2020 2019 2018 Derivatives qualifying as effective accounting hedges as of January 1 $ 2,002 $ 1,781 $ 2,065 Cumulative effect of changes in accounting: Stranded tax effects — — 12 Changes to the hedge accounting model, net of deferred taxes of $—, $— and $(1) — — 2 Total cumulative effect of changes in accounting — — 14 Current period increases (decreases) in fair value, net of deferred taxes of $(95), $(87) and $50 344 331 (194 ) Reclassification to net (income), net of deferred taxes of $73, $60 and $58 (135 ) (110 ) (104 ) Derivatives qualifying as effective accounting hedges as of December 31 $ 2,211 $ 2,002 $ 1,781 |
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 (Amounts in millions) 2020 2019 2018 Classification of gain (loss) recognized Interest rate swaps $ (11 ) $ (3 ) $ 3 Net investment gains (losses) Equity index options 4 43 (34 ) Net investment gains (losses) Financial futures 2 (64 ) 26 Net investment gains (losses) Equity return swaps — — (4 ) Net investment gains (losses) Other foreign currency contracts 38 (8 ) 4 Net investment gains (losses) GMWB embedded derivatives (28 ) 38 (54 ) Net investment gains (losses) Fixed index annuity embedded derivatives (51 ) (90 ) 15 Net investment gains (losses) Indexed universal life embedded derivatives 17 4 13 Net investment gains (losses) Total derivatives not designated as hedges $ (29 ) $ (80 ) $ (31 ) |
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: 2020 2019 (Amounts in millions) Derivative (1) Derivative (1) Net Derivative (1) Derivative (1) Net Amounts presented in the balance sheet: Gross amounts recognized $ 587 $ 26 $ 561 $ 291 $ 11 $ 280 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 587 26 561 291 11 280 Gross amounts not offset in the balance sheet: Financial instruments (2) (20 ) (20 ) — (7 ) (7 ) — Collateral received (408 ) — (408 ) (179 ) — (179 ) Collateral pledged — (505 ) 505 — (405 ) 405 Over collateralization 2 499 (497 ) 18 401 (383 ) Net amount $ 161 $ — $ 161 $ 123 $ — $ 123 (1) Included $1 million of accruals on derivatives classified as other assets as of December 31, 2019 and does not include amounts related to embedded derivatives as of December 31, 2020 and 2019. (2) Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty. |
Deferred Acquisition Costs (Tab
Deferred Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 2019 2018 Unamortized balance as of January 1 $ 3,280 $ 3,630 $ 3,868 Impact of foreign currency translation 4 — (4 ) Costs deferred 15 27 42 Amortization, net of interest accretion (448 ) (377 ) (276 ) Unamortized balance as of December 31 2,851 3,280 3,630 Accumulated effect of net unrealized investment (gains) losses (1,322 ) (1,444 ) (488 ) Balance as of December 31 $ 1,529 $ 1,836 $ 3,142 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets | The following table presents our intangible assets as of December 31: 2020 2019 (Amounts in millions) Gross Accumulated Gross Accumulated PVFP $ 2,065 $ (1,992 ) $ 2,066 $ (1,992 ) Capitalized software 464 (387 ) 487 (403 ) Deferred sales inducements to contractholders 284 (274 ) 288 (258 ) Other 187 (147 ) 138 (130 ) Total $ 3,000 $ (2,800 ) $ 2,979 $ (2,783 ) |
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) 2020 2019 2018 Unamortized balance as of January 1 $ 154 $ 170 $ 187 Interest accreted at 5.19%, 5.56% and 5.60% 8 9 10 Amortization (8 ) (25 ) (27 ) Unamortized balance as of December 31 154 154 170 Accumulated effect of net unrealized investment (gains) losses (81 ) (80 ) (31 ) Balance as of December 31 $ 73 $ 74 $ 139 |
Percentage of Current PVFP Balance Estimated to be Amortized | The percentage of the December 31, 2020 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: 2021 4.8 % 2022 4.3 % 2023 4.3 % 2024 4.2 % 2025 3.9 % |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net Domestic Life Insurance In-Force | The following table sets forth net domestic life insurance in-force (Amounts in millions) 2020 2019 2018 Direct life insurance in-force $ 509,670 $ 555,252 $ 594,472 Amounts assumed from other companies 624 673 729 Amounts ceded to other companies (1) (458,999 ) (500,965 ) (537,590 ) Net life insurance in-force $ 51,295 $ 54,960 $ 57,611 Percentage of amount assumed to net 1 % 1 % 1 % (1) Includes amounts accounted for under the deposit method. |
Schedule of Effects of Reinsurance on Premiums Written and Earned | The following table sets forth the effects of reinsurance on premiums written and earned for the years ended December 31: Written Earned (Amounts in millions) 2020 2019 2018 2020 2019 2018 Direct: Life insurance $ 795 $ 846 $ 881 $ 795 $ 846 $ 881 Accident and health insurance (1) 2,836 2,792 2,775 2,860 2,821 2,800 Mortgage insurance 1,346 1,157 1,092 1,342 1,239 1,194 Total direct 4,977 4,795 4,748 4,997 4,906 4,875 Assumed: Life insurance 1 1 1 2 1 1 Accident and health insurance (1) 313 321 328 322 326 332 Mortgage insurance 5 5 7 6 8 11 Total assumed 319 327 336 330 335 344 Ceded: Life insurance (558 ) (569 ) (576 ) (559 ) (569 ) (576 ) Accident and health insurance (1) (550 ) (557 ) (566 ) (562 ) (564 ) (571 ) Mortgage insurance (97 ) (64 ) (85 ) (96 ) (71 ) (78 ) Total ceded (1,205 ) (1,190 ) (1,227 ) (1,217 ) (1,204 ) (1,225 ) Net premiums $ 4,091 $ 3,932 $ 3,857 $ 4,110 $ 4,037 $ 3,994 Percentage of amount assumed to net 8 % 8 % 9 % (1) Accident and health insurance is comprised almost entirely of our long-term care insurance products. |
Schedule of Reinsurance Recoverable in Allowance for Credit Losses | The following table sets forth the changes in the allowance for credit losses related to reinsurance recoverables as of or for the year ended December 31, 2020: (Amounts in millions) 2020 Allowance for credit losses: Beginning balance $ — Cumulative effect of change in accounting 40 Provision 5 Write-offs — Recoveries — Ending balance $ 45 |
Schedule Of Credit Ratings on Reinsurance Recoverable | The following table sets forth A.M. Best Company, Inc.’s (“A.M. Best”) credit ratings related to our reinsurance recoverables, gross of the allowance for credit losses, as of December 31, 2020: (Amounts in millions) Collateralized Non-collateralized Total Credit rating: A++ $ — $ 519 $ 519 A+ 1,437 1,343 2,780 A 19 45 64 B+ — 1 1 Not rated 13,419 81 13,500 Total reinsurance recoverable $ 14,875 $ 1,989 $ 16,864 |
Insurance Reserves (Tables)
Insurance Reserves (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Recorded Liabilities and Major Assumptions Underlying Future Policy Benefits | The following table sets forth our recorded liabilities and the major assumptions underlying our future policy benefits as of December 31: (Amounts in millions) Mortality/ Interest rate 2020 2019 Long-term care insurance contracts (a ) 3.75% - 7.50% $ 28,770 $ 26,170 Structured settlements with life contingencies (b ) 1.00% - 8.00% 8,240 8,398 Annuity contracts with life contingencies (b ) 1.00% - 8.00% 3,252 3,281 Traditional life insurance contracts (c ) 3.00% - 7.50% 2,101 2,205 Supplementary contracts with life contingencies (b ) 1.00% - 8.00% 332 330 Total future policy benefits $ 42,695 $ 40,384 (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 |
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) 2020 2019 Annuity contracts $ 8,273 $ 9,375 Funding agreements 300 253 Structured settlements without life contingencies 1,114 1,219 Supplementary contracts without life contingencies 576 606 Other 13 13 Total investment contracts 10,276 11,466 Universal and term universal life insurance contracts 11,227 10,751 Total policyholder account balances $ 21,503 $ 22,217 |
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) 2020 2019 Account values with death benefit guarantees (net of reinsurance): Standard death benefits (return of net deposits) account value $ 2,611 $ 2,008 Net amount at risk $ 2 $ 2 Average attained age of contractholders 76 76 Enhanced death benefits (ratchet, rollup) account value $ 1,350 $ 1,986 Net amount at risk $ 105 $ 115 Average attained age of contractholders 76 75 Account values with living benefit guarantees: GMWBs $ 1,999 $ 2,106 Guaranteed annuitization benefits $ 998 $ 1,030 |
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) 2020 2019 Balanced funds $ 2,343 $ 2,446 Equity funds 1,016 1,079 Bond funds 304 385 Money market funds 216 84 Total $ 3,879 $ 3,994 |
Liability for Policy and Cont_2
Liability for Policy and Contract Claims (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 2019 Liability for policy and contract claims for insurance lines other than short-duration contracts: Long-term care insurance $ 10,518 $ 10,239 Life insurance 378 248 Fixed annuities 12 13 Runoff 12 9 Total 10,920 10,509 Liability for policy and contract claims related to short-duration contracts: U.S. Mortgage Insurance segment 555 233 Australia Mortgage Insurance segment 331 208 Other mortgage insurance businesses 11 8 Total 897 449 Total liability for policy and contract claims $ 11,817 $ 10,958 |
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) 2020 2019 2018 Beginning balance as of January 1 $ 10,239 $ 9,516 $ 8,548 Less reinsurance recoverables (2,283 ) (2,262 ) (2,292 ) Net balance as of January 1 7,956 7,254 6,256 Incurred related to insured events of: Current year 2,595 2,717 2,548 Prior years (398 ) (219 ) 130 Total incurred 2,197 2,498 2,678 Paid related to insured events of: Current year (189 ) (205 ) (201 ) Prior years (2,118 ) (1,975 ) (1,814 ) Total paid (2,307 ) (2,180 ) (2,015 ) Interest on liability for policy and contract claims 412 384 335 Net balance as of December 31 8,258 7,956 7,254 Add reinsurance recoverables 2,260 2,283 2,262 Ending balance as of December 31 $ 10,518 $ 10,239 $ 9,516 |
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 IBNR liabilities plus expected development on reported claims included within the net incurred claims amounts for our U.S. Mortgage Insurance segment as of December 31, 2020. The information about the incurred claims development for the years ended December 31, 2011 to 2019 and the historical reported delinquencies as of December 31, 2019 and prior are presented as supplementary information. (Dollar amounts in millions) Incurred claims and allocated claim adjustment expenses, net of reinsurance Total of IBNR Number of (2) For the years ended December 31, Accident (1) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Unaudited 2011 $ 910 $ 931 $ 913 $ 929 $ 938 $ 939 $ 939 $ 939 $ 938 $ 939 $ — 69,314 2012 — 718 675 671 673 671 668 667 666 666 — 48,575 2013 — — 475 407 392 387 384 382 381 381 — 34,412 2014 — — — 328 288 269 261 259 258 259 — 26,726 2015 — — — — 235 208 187 181 180 180 — 21,724 2016 — — — — — 198 160 138 136 137 1 19,158 2017 — — — — — — 171 121 102 105 1 19,497 2018 — — — — — — — 117 84 84 1 14,779 2019 — — — — — — — — 106 111 1 15,710 2020 — — — — — — — — — 365 19 38,863 Total incurred $ 3,227 (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, net of reinsurance, as well as cumulative number of reported delinquencies and the total of IBNR liabilities plus expected development on reported claims included within the net incurred claims amounts for our Australia Mortgage Insurance segment as of December 31, 2020. The information about the incurred claims development for the years ended December 31, 2011 to 2019 and the historical reported delinquencies as of December 31, 2019 and prior are presented as supplementary information. (Dollar (1) Incurred claims and allocated claim adjustment expenses, net of reinsurance Total of Number of (3) For the years ended December 31, Accident (2) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Unaudited 2011 $ 70 $ 133 $ 130 $ 125 $ 123 $ 121 $ 120 $ 120 $ 120 $ 128 $ 3 2,574 2012 — 66 105 93 89 86 86 86 86 93 2 2,102 2013 — — 62 81 70 64 60 61 61 70 3 1,781 2014 — — — 59 82 70 65 63 63 75 5 1,713 2015 — — — — 69 104 87 84 83 103 6 1,787 2016 — — — — — 95 127 114 108 129 13 2,080 2017 — — — — — — 90 123 105 114 12 1,821 2018 — — — — — — — 87 107 107 17 1,903 2019 — — — — — — — — 106 93 47 2,298 2020 — — — — — — — — — 81 49 1,392 Total incurred $ 993 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 202 0 (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, 2020 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, 2020: Average annual percentage payout of incurred claims by age Years 1 2 3 4 5 6 7 8 9 10 Unaudited Percentage of payout 6.6 % 37.6 % 26.8 % 11.1 % 4.6 % 2.3 % 1.2 % 0.5 % 0.2 % 0.1 % The following table sets forth our average payout of incurred claims by age for our Australia Mortgage Insurance segment as of December 31, 2020: Average annual percentage payout of incurred claims, by age Years 1 2 3 4 5 6 7 8 9 10 Unaudited Percentage of payout 8.4 % 35.5 % 25.8 % 8.9 % 2.9 % 1.6 % 1.2 % 1.1 % 0.5 % 0.6 % |
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, 2020. The information about paid claims development for the years ended December 31, 2011 to 2019 is presented as supplementary information. (Amounts in millions) Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance Accident year (1) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Unaudited 2011 $ 65 $ 497 $ 722 $ 816 $ 874 $ 906 $ 927 $ 935 $ 937 $ 939 2012 — 92 391 532 602 634 650 658 662 663 2013 — — 44 202 297 340 362 372 375 376 2014 — — — 22 127 195 233 247 253 254 2015 — — — — 12 85 145 167 173 175 2016 — — — — — 10 64 110 124 127 2017 — — — — — — 6 46 77 87 2018 — — — — — — — 3 32 48 2019 — — — — — — — — 2 18 2020 — — — — — — — — — 1 Total paid $ 2,688 Total incurred $ 3,227 Total paid 2,688 All outstanding liabilities before 2011 16 Liability for policy and contract claims $ 555 (1) Represents the year in which first monthly mortgage payments have been missed by the borrower. The following table sets forth paid claims development, net of reinsurance, for our Australia Mortgage Insurance segment for the year ended December 31, 2020. The information about paid claims development for the years ended December 31, 2011 to December 31, 2019 is presented as supplementary information: (Amounts in millions) (1) Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance Accident year (2) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Unaudited 2011 $ 4 $ 67 $ 110 $ 118 $ 120 $ 120 $ 120 $ 120 $ 120 $ 121 2012 — 11 61 78 82 83 84 85 86 86 2013 — — 9 35 51 57 59 60 60 62 2014 — — — 6 26 46 58 61 61 64 2015 — — — — 4 28 65 76 79 84 2016 — — — — — 6 51 85 95 103 2017 — — — — — — 9 49 76 85 2018 — — — — — — — 11 46 67 2019 — — — — — — — — 14 40 2020 — — — — — — — — — 5 Total paid $ 717 Total incurred $ 993 Total paid 717 Other (3) 35 All outstanding liabilities before 2011 20 Liability for policy and contract claims $ 331 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2020. (2) Represents the year in which first monthly mortgage payments have been missed by the borrower. (3) Includes foreign currency translation. |
Borrowings and Other Financin_2
Borrowings and Other Financings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Long Term Borrowings | The following table sets forth total long-term borrowings as of December 31: (Amounts in millions) 2020 2019 Genworth Holdings 7.70% Senior Notes, due 2020 $ — $ 397 7.20% Senior Notes, due 2021 338 382 7.625% Senior Notes, due 2021 660 701 4.90% Senior Notes, due 2023 400 399 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 2,693 3,174 Bond consent fees (19 ) (25 ) Deferred borrowing charges (9 ) (12 ) Total Genworth Holdings 2,665 3,137 Genworth Mortgage Holdings, Inc. 6.50% Senior Notes, due 2025 750 — Deferred borrowing charges (12 ) — Total Genworth Mortgage Holdings, Inc. 738 — Genworth Financial Mortgage Insurance Pty Limited Floating Rate Junior Subordinated Notes, due 2025 — 140 Floating Rate Junior Subordinated Notes, due 2030 146 — Deferred borrowing charges (1 ) — Total Genworth Financial Mortgage Insurance Pty Limited 145 140 Total $ 3,548 $ 3,277 |
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) by maturity were as follows as of December 31, 2020: (Amounts in millions) Amount 2021 $ 997 2022 — 2023 400 2024 400 2025 and thereafter 1,796 Total $ 3,593 |
Remaining Contractual Maturity of Agreements | The following tables present the remaining contractual maturity of the agreement as of December 31: 2020 (Amounts in millions) Overnight and Up to 30 days 31—90 days Greater than Total Securities lending: Fixed maturity securities: Non-U.S. $ 1 $ — $ — $ — $ 1 U.S. corporate 40 — — — 40 Non-U.S. 19 — — — 19 Subtotal, fixed maturity securities 60 — — — 60 Equity securities 7 — — — 7 Total securities lending $ 67 $ — $ — $ — $ 67 2019 (Amounts in millions) Overnight and Up to 30 days 31—90 days Greater than Total Securities lending: Fixed maturity securities: Non-U.S. $ 1 $ — $ — $ — $ 1 U.S. corporate 34 — — — 34 Non-U.S. 16 — — — 16 Subtotal, fixed maturity securities 51 — — — 51 Total securities lending $ 51 $ — $ — $ — $ 51 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Components of Income before Income Taxes | Income from continuing operations before income taxes included the following components for the years ended December 31: (Amounts in millions) 2020 2019 2018 Domestic $ 953 $ 540 $ (57 ) Foreign 78 174 194 Income from continuing operations before income taxes $ 1,031 $ 714 $ 137 |
Components of Income Tax Provision | The total provision for income taxes was as follows for the years ended December 31: (Amounts in millions) 2020 2019 2018 Current federal income taxes $ 4 $ 6 $ 11 Deferred federal income taxes 230 111 (14 ) Total federal income taxes 234 117 (3 ) Current state income taxes 2 2 1 Deferred state income taxes 2 5 — Total state income taxes 4 7 1 Current foreign income taxes (4 ) 48 30 Deferred foreign income taxes 36 23 42 Total foreign income taxes 32 71 72 Total provision for income taxes $ 270 $ 195 $ 70 |
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: 2020 2019 2018 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Increase (reduction) in rate resulting from: Effect of foreign operations 1.3 2.2 15.3 Swaps terminated prior to the TCJA 2.7 3.3 16.6 Stock-based compensation 0.2 0.1 4.2 Valuation allowance — — (5.4 ) Prior year adjustments 0.2 — (2.4 ) Tax favored investments (0.4 ) (0.6 ) (3.4 ) Nondeductible expenses 0.4 0.5 3.0 Other, net 0.8 0.8 0.2 TCJA, impact from change in tax rate — — 8.8 TCJA, impact on foreign operations — — (7.1 ) Effective rate 26.2 % 27.3 % 50.8 % |
Components of Net Deferred Income Tax Liability | The components of our deferred income taxes were as follows as of December 31: (Amounts in millions) 2020 2019 Assets: Foreign tax credit carryforwards $ 136 $ 320 Net operating loss carryforwards 73 129 State income taxes 386 336 Insurance reserves 633 686 Accrued commission and general expenses 114 114 Liabilities associated with discontinued operations 126 37 Investments 20 48 Other 23 42 Gross deferred income tax assets 1,511 1,712 Valuation allowance (412 ) (347 ) Total deferred income tax assets 1,099 1,365 Liabilities: Net unrealized gains on investment securities 601 396 Net unrealized gains on derivatives 70 71 DAC 171 275 PVFP and other intangibles 10 21 Insurance reserves transition adjustment 123 148 Other 17 29 Total deferred income tax liabilities 992 940 Net deferred income tax asset $ 107 $ 425 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (Amounts in millions) 2020 2019 2018 Balance as of January 1 $ 64 $ 79 $ 42 Tax positions related to the current period: Gross additions — — 2 Gross reductions (3 ) (15 ) (3 ) Tax positions related to the prior years: Gross additions 1 — 40 Gross reductions — — (2 ) Balance as of December 31 $ 62 $ 64 $ 79 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Cash Award Activity | The following table summarizes cash award activity as of December 31, 2020 and 2019: (Number of awards, in millions) Time-based Performance-based Balance as of January 1, 2019 24 17 Granted 16 — Performance adjustment — 1 Vested (12 ) (4 ) Forfeited (2 ) (1 ) Balance as of January 1, 2020 26 13 Granted 17 — Performance adjustment — 1 Vested (11 ) (5 ) Forfeited (2 ) (2 ) Balance as of December 31, 2020 30 7 |
Rollforward of Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding | The following table summarizes stock option activity as of December 31, 2020 and 2019: (Shares in thousands) Shares subject Weighted-average Balance as of January 1, 2019 1,118 $ 11.77 Granted — $ — Exercised (200 ) $ 2.46 Expired and forfeited (117 ) $ 11.30 Balance as of January 1, 2020 801 $ 14.17 Granted — $ — Exercised — $ — Expired and forfeited (800 ) $ 14.17 Balance as of December 31, 2020 1 $ 12.75 Exercisable as of December 31, 2020 1 $ 12.75 |
Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding as of December 31, 2020: Outstanding and exercisable Exercise/Average price Shares in Average (1) $12.75 (2) 1 0.11 1 (1) Average contractual life remaining in years. (2) Shares for both options outstanding and exercisable have no aggregate intrinsic value. |
Status of Our Other Equity-Based Awards | The following tables summarize the status of our other equity-based awards as of December 31, 2020 and 2019: RSUs PSUs DSUs SARs (Awards in thousands) Number Weighted- Number Weighted- Number Weighted- Number Weighted- Balance as of January 1, 2019 2,356 $ 4.14 4,930 $ 3.30 1,266 $ 4.76 8,627 $ 3.42 Granted 1,737 $ 3.36 2,852 $ 4.61 265 $ 2.71 — $ — Performance adjustment (1) — $ — 495 $ 2.81 — $ — — $ — Exercised (1,401 ) $ 4.32 (3,100 ) $ 2.81 (16 ) $ 7.45 (50 ) $ 1.28 Terminated (17 ) $ 7.38 (35 ) $ 2.81 — $ — (426 ) $ 3.70 Balance as of January 1, 2020 2,675 $ 3.51 5,142 $ 4.28 1,515 $ 4.37 8,151 $ 3.41 Granted 1,683 $ 3.53 2,789 $ 3.03 237 $ 2.00 — $ — Performance adjustment (1) — $ — 443 $ 4.01 — $ — — $ — Exercised (1,336 ) $ 3.62 (1,994 ) $ 4.01 (215 ) $ 4.76 — $ — Terminated (488 ) $ 3.47 (646 ) $ 3.86 — $ — (1,121 ) $ 3.99 Balance as of December 31, 2020 2,534 $ 3.48 5,734 $ 3.79 1,537 $ 3.95 7,030 $ 3.32 (1) The performance adjustment relates to additional awards expected to be earned through the achievement of certain performance metrics. |
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, 2020 and 2019: (Shares subject to option, in thousands) Restricted share rights Long - incentive Balance as of January 1, 2019 427 1,827 Granted 285 801 Exercised (348 ) (163 ) Terminated (29 ) (576 ) Balance as of January 1, 2020 335 1,889 Granted 153 535 Exercised (322 ) (178 ) Terminated (8 ) (1,077 ) Balance as of December 31, 2020 158 1,169 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 (Amounts in millions) Fair Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $4,805 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 $3,104 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. $1,559 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 $32,367 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, 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. $9,604 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 $1,895 OAS-based 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 $2,954 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 swap curves, TRACE reports Other asset-backed $ Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers Spreads to daily updated swap 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 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 December 31: 2020 (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 $ 4,805 $ — $ 4,805 $ — $ — State and political subdivisions 3,170 — 3,104 66 — Non-U.S. 1,559 — 1,559 — — U.S. corporate: Utilities 5,212 — 4,370 842 — Energy 2,900 — 2,772 128 — Finance and insurance 9,148 — 8,541 607 — Consumer—non-cyclical 6,470 — 6,361 109 — Technology and communications 3,827 — 3,780 47 — Industrial 1,607 — 1,567 40 — Capital goods 3,001 — 2,941 60 — Consumer—cyclical 2,007 — 1,857 150 — Transportation 1,502 — 1,432 70 — Other 440 — 221 219 — Total U.S. corporate 36,114 — 33,842 2,272 — Non-U.S. Utilities 983 — 631 352 — Energy 1,398 — 1,153 245 — Finance and insurance 2,820 — 2,515 305 — Consumer—non-cyclical 824 — 757 67 — Technology and communications 1,311 — 1,283 28 — Industrial 1,129 — 1,034 95 — Capital goods 616 — 438 178 — Consumer—cyclical 396 — 250 146 — Transportation 609 — 500 109 — Other 1,828 — 1,745 83 — Total non-U.S. 11,914 — 10,306 1,608 — Residential mortgage-backed 1,909 — 1,895 14 — Commercial mortgage-backed 2,974 — 2,954 20 — Other asset-backed 3,345 — 3,236 109 — Total fixed maturity securities 65,790 — 61,701 4,089 — Equity securities 476 276 149 51 — Other invested assets: Derivative assets: Interest rate swaps 468 — 468 — — Foreign currency swaps 1 — 1 — — Equity index options 63 — — 63 — Other foreign currency contracts 55 — 55 — — Total derivative assets 587 — 524 63 — Securities lending collateral 67 — 67 — — Short-term investments 159 25 134 — — Limited partnerships 835 — — — 835 Total other invested assets 1,648 25 725 63 835 Reinsurance recoverable (2) 26 — — 26 — Separate account assets 6,081 6,081 — — — Total assets $ 74,021 $ 6,382 $ 62,575 $ 4,229 $ 835 (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. 2019 (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 $ 5,025 $ — $ 5,025 $ — $ — State and political subdivisions 2,747 — 2,645 102 — Non-U.S. 1,350 — 1,350 — — U.S. corporate: Utilities 4,997 — 4,132 865 — Energy 2,699 — 2,570 129 — Finance and insurance 7,774 — 7,202 572 — Consumer—non-cyclical 5,701 — 5,607 94 — Technology and communications 3,245 — 3,195 50 — Industrial 1,396 — 1,356 40 — Capital goods 2,711 — 2,609 102 — Consumer—cyclical 1,760 — 1,587 173 — Transportation 1,506 — 1,428 78 — Other 322 — 186 136 — Total U.S. corporate 32,111 — 29,872 2,239 — Non-U.S. Utilities 829 — 455 374 — Energy 1,319 — 1,072 247 — Finance and insurance 2,319 — 2,085 234 — Consumer—non-cyclical 684 — 625 59 — Technology and communications 1,138 — 1,110 28 — Industrial 988 — 884 104 — Capital goods 605 — 444 161 — Consumer—cyclical 397 — 250 147 — Transportation 629 — 438 191 — Other 1,617 — 1,477 140 — Total non-U.S. 10,525 — 8,840 1,685 — Residential mortgage-backed 2,270 — 2,243 27 — Commercial mortgage-backed 3,026 — 3,020 6 — Other asset-backed 3,285 — 3,153 132 — Total fixed maturity securities 60,339 — 56,148 4,191 — Equity securities 239 62 126 51 — Other invested assets: Derivative assets: Interest rate swaps 197 — 197 — — Foreign currency swaps 4 — 4 — — Equity index options 81 — — 81 — Other foreign currency contracts 8 — 8 — — Total derivative assets 290 — 209 81 — Securities lending collateral 51 — 51 — — Short-term investments 211 — 211 — — Limited partnerships 503 — — — 503 Total other invested assets 1,055 — 471 81 503 Reinsurance recoverable (2) 20 — — 20 — Separate account assets 6,108 6,108 — — — Total assets $ 67,761 $ 6,170 $ 56,745 $ 4,343 $ 503 (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 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 Total realized and Ending as of Total gains (losses) (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Included Included Fixed maturity securities: State and political subdivisions $ 102 $ 3 $ (11 ) $ — $ — $ — $ (1 ) $ — $ (27 ) $ 66 $ 3 $ (11 ) Non-U.S. — — — — — — (1 ) 1 — — — — U.S. corporate: Utilities 865 9 8 76 (13 ) — (56 ) 42 (89 ) 842 — 14 Energy 129 1 1 30 (21 ) — (21 ) 22 (13 ) 128 — (3 ) Finance and insurance 572 2 16 167 — — (41 ) — (109 ) 607 — 19 Consumer—non-cyclical 94 — 4 8 — — (22 ) 25 — 109 — 4 Technology and communications 50 — 3 82 — — (1 ) 13 (100 ) 47 — 5 Industrial 40 — — — — — — — — 40 — — Capital goods 102 — — — — — (8 ) 11 (45 ) 60 — 1 Consumer—cyclical 173 3 4 15 — — (36 ) 47 (56 ) 150 — 6 Transportation 78 — (1 ) — — — (4 ) 27 (30 ) 70 — 2 Other 136 — 2 25 — — (7 ) 87 (24 ) 219 — 2 Total U.S. corporate 2,239 15 37 403 (34 ) — (196 ) 274 (466 ) 2,272 — 50 Non-U.S. Utilities 374 — 10 13 — — — 28 (73 ) 352 — 9 Energy 247 — (5 ) 7 — — (28 ) 24 — 245 — (5 ) Finance and insurance 234 4 17 15 — — (10 ) 77 (32 ) 305 4 17 Consumer—non-cyclical 59 — 3 20 — — — 1 (16 ) 67 — 2 Technology and communications 28 — — — — — — — — 28 — 1 Industrial 104 — 4 — — — (5 ) — (8 ) 95 — 3 Capital goods 161 1 1 20 — — (39 ) 34 — 178 — 1 Consumer—cyclical 147 — 3 21 — — (26 ) 32 (31 ) 146 — 2 Transportation 191 — 1 7 — — (10 ) 22 (102 ) 109 — 4 Other 140 9 (1 ) 6 — — (72 ) 1 — 83 — 2 Total non-U.S. 1,685 14 33 109 — — (190 ) 219 (262 ) 1,608 4 36 Residential mortgage-backed 27 — (1 ) — — — (1 ) 4 (15 ) 14 — — Commercial mortgage-backed 6 — 1 — — — — 20 (7 ) 20 — 1 Other asset-backed 132 — 1 130 — — (35 ) 10 (129 ) 109 — — Total fixed maturity securities 4,191 32 60 642 (34 ) — (424 ) 528 (906 ) 4,089 7 76 Equity securities 51 — — 6 (7 ) — — 1 — 51 — — Other invested assets: Derivative assets: Equity index options 81 4 — 59 — — (81 ) — — 63 5 — Total derivative assets 81 4 — 59 — — (81 ) — — 63 5 — Total other invested assets 81 4 — 59 — — (81 ) — — 63 5 — Reinsurance recoverable (2) 20 4 — — — 2 — — — 26 4 — Total Level 3 assets $ 4,343 $ 40 $ 60 $ 707 $ (41 ) $ 2 $ (505 ) $ 529 $ (906 ) $ 4,229 $ 16 $ 76 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. Beginning Total realized and Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending Total gains (losses) (Amounts in millions) Included in Included Fixed maturity securities: State and political subdivisions $ 51 $ 3 $ 20 $ — $ — $ — $ — $ 28 $ — $ 102 $ 3 U.S. corporate: Utilities 643 1 72 156 (14 ) — (49 ) 72 (16 ) 865 — Energy 121 — 9 17 (5 ) — (13 ) — — 129 — Finance and insurance 534 — 51 50 — — (39 ) 35 (59 ) 572 — Consumer—non-cyclical 73 — 5 23 (5 ) — (11 ) 9 — 94 — Technology and communications 50 — 7 — — — (1 ) 5 (11 ) 50 — Industrial 39 — 1 — — — — — — 40 — Capital goods 92 — 10 — — — — — — 102 — Consumer—cyclical 211 — 11 — (13 ) — (18 ) — (18 ) 173 (1 ) Transportation 57 — 3 39 — — (10 ) — (11 ) 78 — Other 178 — 6 23 — — (20 ) 8 (59 ) 136 — Total U.S. corporate 1,998 1 175 308 (37 ) — (161 ) 129 (174 ) 2,239 (1 ) Non-U.S. Utilities 404 — 30 30 (7 ) — (67 ) — (16 ) 374 — Energy 217 (1 ) 19 46 (18 ) — (16 ) — — 247 — Finance and insurance 171 4 23 7 — — (16 ) 54 (9 ) 234 4 Consumer—non-cyclical 106 2 5 1 — — (55 ) — — 59 — Technology and communications 26 — 2 — — — — — — 28 — Industrial 61 — 5 38 — — — — — 104 — Capital goods 173 — 12 10 — — (16 ) 3 (21 ) 161 — Consumer—cyclical 122 — 12 16 — — (3 ) — — 147 — Transportation 171 — 10 27 — — — — (17 ) 191 — Other 81 — 12 43 — — (2 ) 6 — 140 — Total non-U.S. 1,532 5 130 218 (25 ) — (175 ) 63 (63 ) 1,685 4 Residential mortgage-backed 35 — 1 — (2 ) — (1 ) — (6 ) 27 — Commercial mortgage-backed 95 — 17 3 — — — 1 (110 ) 6 — Other asset-backed 154 — 3 139 — — (69 ) 28 (123 ) 132 — Total fixed maturity securities 3,865 9 346 668 (64 ) — (406 ) 249 (476 ) 4,191 6 Equity securities 58 — — 2 (9 ) — — — — 51 — Other invested assets: Derivative assets: Equity index options 39 43 — 63 — — (64 ) — — 81 18 Total derivative assets 39 43 — 63 — — (64 ) — — 81 18 Total other invested assets 39 43 — 63 — — (64 ) — — 81 18 Reinsurance recoverable (2) 20 (1 ) — — — 1 — — — 20 (1 ) Total Level 3 assets $ 3,982 $ 51 $ 346 $ 733 $ (73 ) $ 1 $ (470 ) $ 249 $ (476 ) $ 4,343 $ 23 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. (Amounts in millions) Beginning balance as of January 1, 2018 Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Transfer into Level 3 (1) Transfer out of Level 3 (1) Ending balance as of December 31, 2018 Total gains (losses) included in net income attributable to assets still held Included in net income Included in OCI 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. 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. 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 227 — (3 ) 114 (16 ) — (93 ) 54 (129 ) 154 — Total fixed maturity securities 3,940 5 (240 ) 758 (62 ) — (521 ) 466 (481 ) 3,865 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 $ 4,078 $ (24 ) $ (240 ) $ 850 $ (66 ) $ 1 $ (602 ) $ 466 $ (481 ) $ 3,982 $ (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. |
Gains and Losses Included in Net Income (Loss) from Assets Measured at Fair Value | The following table presents the gains and losses included in net income from assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the years ended December 31: (Amounts in millions) 2020 2019 2018 Total realized and unrealized gains (losses) included in net income: Net investment income $ 32 $ 10 $ 8 Net investment gains (losses) 8 41 (32 ) Total $ 40 $ 51 $ (24 ) Total gains (losses) included in net income attributable to assets still held: Net investment income $ 7 $ 6 $ 9 Net investment gains (losses) 9 17 (21 ) Total $ 16 $ 23 $ (12 ) |
Summary of Significant Unobservable Inputs Used for Certain Asset Fair Value Measurements | The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of December 31, 2020: (Amounts in millions) Valuation technique Fair value Unobservable Range Weighted-average (1) Fixed maturity securities: U.S. corporate: Utilities Internal models $ 792 Credit spreads 66 bps – bps 148 bps Energy Internal models 6 Credit spreads 73 bps Not applicable Finance and insurance Internal models 593 Credit spreads 56 bps – 137 bps Consumer—non-cyclical Internal models 109 Credit spreads 66 bps – 143 bps Technology and communications Internal models 47 Credit spreads 104 bps – bps 181 bps Industrial Internal models 40 Credit spreads 112 bps – 155 bps Capital goods Internal models 60 Credit spreads 76 bps – 143 bps Consumer—cyclical Internal models 141 Credit spreads 104 bps – 147 bps Transportation Internal models 58 Credit spreads 58 bps – 106 bps Other Internal models 204 Credit spreads 79 bps – 113 bps Total U.S. corporate Internal models $ 2,050 Credit spreads 56 bps – 140 bps Non-U.S. Utilities Internal models $ 351 Credit spreads 68 bps – 125 bps Energy Internal models 90 Credit spreads 76 bps – 121 bps Finance and insurance Internal models 191 Credit spreads 89 bps – 107 bps Consumer—non-cyclical Internal models 65 Credit spreads 80 bps – 106 bps Technology and communications Internal models 28 Credit spreads 76 bps – 129 bps Industrial Internal models 95 Credit spreads 73 bps – 125 bps Capital goods Internal models 148 Credit spreads 80 bps – 128 bps Consumer—cyclical Internal models 45 Credit spreads 115 bps – 142 bps Transportation Internal models 92 Credit spreads 66 bps – 102 bps Other Internal models 83 Credit spreads 93 bps – 145 bps Total non-U.S. Internal models $ 1,188 Credit spreads 66 bps – 122 bps Derivative assets: Equity index options Discounted cash flows $ 63 Equity index 6 % – 29 % (1) Unobservable inputs weighted by the relative fair value of the associated instrument |
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: 2020 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 379 $ — $ — $ 379 Fixed index annuity embedded derivatives 399 — — 399 Indexed universal life embedded derivatives 26 — — 26 Total policyholder account balances 804 — — 804 Derivative liabilities: Interest rate swaps 23 — 23 — Foreign currency swaps 2 — 2 — Other foreign currency contracts 1 — 1 — Total derivative liabilities 26 — 26 — Total liabilities $ 830 $ — $ 26 $ 804 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. 2019 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 323 $ — $ — $ 323 Fixed index annuity embedded derivatives 452 — — 452 Indexed universal life embedded derivatives 19 — — 19 Total policyholder account balances 794 — — 794 Derivative liabilities: Interest rate swaps 10 — 10 — Other foreign currency contracts 1 — 1 — Total derivative liabilities 11 — 11 — Total liabilities $ 805 $ — $ 11 $ 794 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liabilities Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value | The following tables present additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: Beginning as of Total realized and Ending as of Total (gains) losses (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer Transfer Included Included Policyholder account balances: GMWB embedded derivatives (1) $ 323 $ 32 $ — $ — $ — $ 24 $ — $ — $ — $ 379 $ 38 $ — Fixed index annuity embedded derivatives 452 51 — — — — (104 ) — — 399 51 — Indexed universal life embedded derivatives 19 (17 ) — — — 24 — — — 26 (17 ) — Total policyholder account balances 794 66 — — — 48 (104 ) — — 804 72 — Total Level 3 liabilities $ 794 $ 66 $ — $ — $ — $ 48 $ (104 ) $ — $ — $ 804 $ 72 $ — (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. Beginning as of Total realized and Ending as of Total (gains) attributable (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer Transfer Policyholder account balances: GMWB embedded derivatives (1) $ 337 $ (39 ) $ — $ — $ — $ 25 $ — $ — $ — $ 323 $ (34 ) Fixed index annuity embedded derivatives 389 90 — — — — (27 ) — — 452 90 Indexed universal life embedded derivatives 12 (4 ) — — — 11 — — — 19 (4 ) Total policyholder account balances 738 47 — — — 36 (27 ) — — 794 52 Total Level 3 liabilities $ 738 $ 47 $ — $ — $ — $ 36 $ (27 ) $ — $ — $ 794 $ 52 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. Beginning as of Total realized and Ending as of Total (gains) attributable (Amounts in millions) Included Included Purchases Sales Issuances Settlements Transfer Transfer Policyholder account balances: 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) 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) 2020 2019 2018 Total realized and unrealized (gains) losses included in net (income): Net investment income $ — $ — $ — Net investment (gains) losses 66 47 31 Total $ 66 $ 47 $ 31 Total (gains) losses included in net (income) attributable to liabilities still held: Net investment income $ — $ — $ — Net investment (gains) losses 72 52 33 Total $ 72 $ 52 $ 33 |
Summary of Significant Unobservable Inputs Used for Certain Liability Fair Value Measurements | The following table presents a summary of the significant unobservable fair value (Amounts in millions) Valuation Fair Unobservable input Range Weighted- (1) Policyholder account balances: Withdrawal 56% – 74% Lapse rate 2% – 4% Non-performance (credit spreads) 10bps – 65bps GMWB embedded derivatives (2) Stochastic cash $ 379 Equity index 19% – 23% Fixed index annuity embedded derivatives Option budget $ 399 Expected future —% – 1% Indexed universal life embedded derivatives Option budget $ 26 Expected future 3% – 5% (1) Unobservable inputs weighted by the policyholder account balances associated with the instrument. (2) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. The unobservable inputs associated with GMWB embedded derivatives are not interrelated and therefore, a directional change in one input will not affect the other inputs. |
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 December 31: 2020 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans, net (1 ) $ 6,743 $ 7,145 $ — $ — $ 7,145 Other invested assets (1 ) 368 378 — 24 354 Liabilities: Long-term borrowings (2) (1 ) 3,548 3,240 — 3,090 150 Investment contracts (1 ) 10,276 11,353 — — 11,353 Other firm commitments: Commitments to fund limited partnerships 1,090 — — — — — Commitments to fund bank loan investments 32 — — — — — Ordinary course of business lending commitments 117 — — — — — 2019 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans, net (1 ) $ 6,963 $ 7,239 $ — $ — $ 7,239 Other invested assets (1 ) 432 432 — 49 383 Liabilities: Long-term borrowings (2) (1 ) 3,277 3,093 — 2,951 142 Non-recourse (2) (1 ) 311 207 — — 207 Investment contracts (1 ) 11,466 12,086 — — 12,086 Other firm commitments: Commitments to fund limited partnerships 976 — — — — — Commitments to fund bank loan investments 52 — — — — — Ordinary course of business lending commitments 69 — — — — — (1) These financial instruments do not have notional amounts. (2) See note 12 for additional information related to borrowings. |
Insurance Subsidiary Financia_2
Insurance Subsidiary Financial Information and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Combined Statutory Net Income (Loss) and Statutory Capital and Surplus | The tables below include the combined statutory net income and statutory capital and surplus for our U.S. domiciled insurance subsidiaries for the periods indicated: Years ended December 31, (Amounts in millions) 2020 2019 2018 Combined statutory net income (loss): Life insurance subsidiaries, excluding captive life reinsurance subsidiaries $ 197 $ 740 $ (895 ) Mortgage insurance subsidiaries 404 847 697 Combined statutory net income (loss), excluding captive reinsurance subsidiaries 601 1,587 (198 ) Captive life insurance subsidiaries 9 (350 ) 1,520 Combined statutory net income $ 610 $ 1,237 $ 1,322 As of December 31, (Amounts in millions) 2020 2019 Combined statutory capital and surplus: Life insurance subsidiaries, excluding captive life reinsurance subsidiaries $ 2,131 $ 2,188 Mortgage insurance subsidiaries 4,073 3,664 Combined statutory capital and surplus $ 6,204 $ 5,852 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: 2020 U.S. Australia U.S. Life Runoff Corporate Total (Amounts in millions) Premiums $ 971 $ 274 $ 2,858 $ — $ 7 $ 4,110 Net investment income 133 32 2,878 210 7 3,260 Net investment gains (losses) (4 ) 66 517 (26 ) 5 558 Policy fees and other income 6 1 595 130 (2 ) 730 Total revenues 1,106 373 6,848 314 17 8,658 Benefits and other changes in policy reserves 381 177 4,781 48 4 5,391 Interest credited — — 383 166 — 549 Acquisition and operating expenses, net of deferrals 206 74 620 48 40 988 Amortization of deferred acquisition costs and intangibles 21 29 418 23 1 492 Goodwill impairment — 5 — — — 5 Interest expense 18 7 5 — 172 202 Total benefits and expenses 626 292 6,207 285 217 7,627 Income (loss) from continuing operations before income taxes 480 81 641 29 (200 ) 1,031 Provision (benefit) for income taxes 102 24 163 4 (23 ) 270 Income (loss) from continuing operations 378 57 478 25 (177 ) 761 Loss from discontinued operations, net of taxes — — — — (549 ) (549 ) Net income (loss) 378 57 478 25 (726 ) 212 Less: net income from continuing operations attributable to noncontrolling interests — 34 — — — 34 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 378 $ 23 $ 478 $ 25 $ (726 ) $ 178 Net income (loss) available to Genworth Financial, Inc.’s common stockholders: Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 378 $ 23 $ 478 $ 25 $ (177 ) $ 727 Loss from discontinued operations available to Genworth Financial, Inc.’s common stockholders — — — — (549 ) (549 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 378 $ 23 $ 478 $ 25 $ (726 ) $ 178 Total assets $ 5,627 $ 2,884 $ 84,671 $ 9,735 $ 2,830 $ 105,747 2019 U.S. Australia U.S. Life Runoff Corporate Total (Amounts in millions) Premiums $ 856 $ 312 $ 2,861 $ — $ 8 $ 4,037 Net investment income 117 55 2,852 187 9 3,220 Net investment gains (losses) 1 23 82 (25 ) (31 ) 50 Policy fees and other income 4 — 643 140 2 789 Total revenues 978 390 6,438 302 (12 ) 8,096 Benefits and other changes in policy reserves 50 104 4,979 27 3 5,163 Interest credited — — 419 158 — 577 Acquisition and operating expenses, net of deferrals 191 69 604 52 46 962 Amortization of deferred acquisition costs and intangibles 15 33 372 18 3 441 Interest expense — 8 17 — 214 239 Total benefits and expenses 256 214 6,391 255 266 7,382 Income (loss) from continuing operations before income taxes 722 176 47 47 (278 ) 714 Provision (benefit) for income taxes 153 53 34 8 (53 ) 195 Income (loss) from continuing operations 569 123 13 39 (225 ) 519 Income from discontinued operations, net of taxes — — — — 11 11 Net income (loss) 569 123 13 39 (214 ) 530 Less: net income from continuing operations attributable to noncontrolling interests — 64 — — — 64 Less: net income from discontinued operations attributable to noncontrolling — — — — 123 123 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 569 $ 59 $ 13 $ 39 $ (337 ) $ 343 Net income (loss) available to Genworth Financial, Inc.’s common stockholders: Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 569 $ 59 $ 13 $ 39 $ (225 ) $ 455 Loss from discontinued operations available to Genworth Financial, Inc.’s common stockholders — — — — (112 ) (112 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 569 $ 59 $ 13 $ 39 $ (337 ) $ 343 Total assets $ 4,504 $ 2,406 $ 81,640 $ 9,953 $ 2,839 $ 101,342 2018 U.S. Australia U.S. Life Runoff Corporate Total (Amounts in millions) Premiums $ 746 $ 373 $ 2,867 $ — $ 8 $ 3,994 Net investment income 93 67 2,781 174 6 3,121 Net investment gains (losses) — (15 ) 29 (33 ) 10 (9 ) Policy fees and other income 2 2 641 153 (3 ) 795 Total revenues 841 427 6,318 294 21 7,901 Benefits and other changes in policy reserves 36 110 5,416 39 5 5,606 Interest credited — — 461 150 — 611 Acquisition and operating expenses, net of deferrals 169 65 584 57 68 943 Amortization of deferred acquisition costs and intangibles 14 43 257 33 1 348 Interest expense — 9 16 — 231 256 Total benefits and expenses 219 227 6,734 279 305 7,764 Income (loss) from continuing operations before income taxes 622 200 (416 ) 15 (284 ) 137 Provision (benefit) for income taxes 132 60 (68 ) 2 (56 ) 70 Income (loss) from continuing operations 490 140 (348 ) 13 (228 ) 67 Income from discontinued operations, net of taxes — — — — 230 230 Net income (loss) 490 140 (348 ) 13 2 297 Less: net income from continuing operations attributable to noncontrolling interests — 70 — — — 70 Less: net income from discontinued operations attributable to noncontrolling interests — — — — 108 108 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 490 $ 70 $ (348 ) $ 13 $ (106 ) $ 119 Net income (loss) available to Genworth Financial, Inc.’s common stockholders: Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 490 $ 70 $ (348 ) $ 13 $ (228 ) $ (3 ) Income from discontinued operations available to Genworth Financial, Inc.’s common stockholders — — — — 122 122 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 490 $ 70 $ (348 ) $ 13 $ (106 ) $ 119 |
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) 2020 2019 2018 Revenues: U.S. Mortgage Insurance segment $ 1,106 $ 978 $ 841 Australia Mortgage Insurance segment 373 390 427 U.S. Life Insurance segment: Long-term care insurance 4,960 4,385 4,197 Life insurance 1,357 1,444 1,430 Fixed annuities 531 609 691 U.S. Life Insurance segment 6,848 6,438 6,318 Runoff segment 314 302 294 Corporate and Other activities 17 (12 ) 21 Total revenues $ 8,658 $ 8,096 $ 7,901 |
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities | The following tables present the reconciliation of net income available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders 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) 2020 2019 2018 Net income available to Genworth Financial, Inc.’s common stockholders $ 178 $ 343 $ 119 Add: net income from continuing operations attributable to noncontrolling interests 34 64 70 Add: net income from discontinued operations attributable to noncontrolling interests — 123 108 Net income 212 530 297 Less: income (loss) from discontinued operations, net of taxes (549 ) 11 230 Income from continuing operations 761 519 67 Less: net income from continuing operations attributable to noncontrolling interests 34 64 70 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders 727 455 (3 ) Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net (1) (538 ) (50 ) (10 ) Goodwill impairment, net (2) 3 — — (Gains) losses on early extinguishment of debt 9 — — Expenses related to restructuring 3 4 2 Fees associated with bond consent solicitation — — 6 Taxes on adjustments 113 11 — Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ 317 $ 420 $ (5 ) (1) For the years ended December 31, 2020, 2019 and 2018, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(11) million, $(11) million and $(12) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $31 million, $11 million and $(7) million, respectively. (2) For the year ended December 31, 2020, goodwill impairment was adjusted for the portion attributable to noncontrolling interests of $2 million. (Amounts in millions) 2020 2019 2018 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: U.S. Mortgage Insurance segment $ 381 $ 568 $ 490 Australia Mortgage Insurance segment 1 51 76 U.S. Life Insurance segment: Long-term care insurance 237 57 (348 ) Life insurance (247 ) (181 ) (107 ) Fixed annuities 78 69 79 U.S. Life Insurance segment 68 (55 ) (376 ) Runoff segment 43 56 35 Corporate and Other activities (176 ) (200 ) (230 ) Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ 317 $ 420 $ (5 ) (d) Geographic Segment Information We conduct our operations in the following geographic regions: (1) United States (2) Australia and (3) Other Countries. |
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: 2020 (Amounts in millions) United Australia Other Total Total Total revenues $ 8,276 $ 373 $ 9 $ 382 $ 8,658 Income (loss) from continuing operations $ 706 $ 57 $ (2 ) $ 55 $ 761 Net income (loss) $ 157 $ 57 $ (2 ) $ 55 $ 212 Total assets $ 102,804 $ 2,884 $ 59 $ 2,943 $ 105,747 2019 (Amounts in millions) United Australia Other Total Total Total revenues $ 7,701 $ 390 $ 5 $ 395 $ 8,096 Income (loss) from continuing operations $ 398 $ 123 $ (2 ) $ 121 $ 519 Net income $ 398 $ 123 $ 9 $ 132 $ 530 Total assets $ 98,881 $ 2,406 $ 55 $ 2,461 $ 101,342 2018 (Amounts in millions) United Australia Other Total Total Total revenues $ 7,469 $ 427 $ 5 $ 432 $ 7,901 Income (loss) from continuing operations $ (69 ) $ 140 $ (4 ) $ 136 $ 67 Net income (loss) $ (69 ) $ 140 $ 226 $ 366 $ 297 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Component of Changes in Accumulated Other Comprehensive Income (Loss), Net of Taxes | The following tables show the changes in accumulated other comprehensive income (loss), net of taxes, by component as of and for the periods indicated: (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2020 $ 1,456 $ 2,002 $ (25 ) $ 3,433 OCI before reclassifications 1,132 344 55 1,531 Amounts reclassified from (to) OCI (374 ) (135 ) — (509 ) Current period OCI 758 209 55 1,022 Balances as of December 31, 2020 before noncontrolling interests 2,214 2,211 30 4,455 Less: change in OCI attributable to noncontrolling interests — — 30 30 Balances as of December 31, 2020 $ 2,214 $ 2,211 $ — $ 4,425 (1) Net of adjustments to DAC, PVFP, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2019 $ 595 $ 1,781 $ (332 ) $ 2,044 OCI before reclassifications 910 331 487 1,728 Amounts reclassified from (to) OCI (62 ) (110 ) — (172 ) Current period OCI 848 221 487 1,556 Balances as of December 31, 2019 before noncontrolling interests 1,443 2,002 155 3,600 Less: change in OCI attributable to noncontrolling interests (13 ) — 180 167 Balances as of December 31, 2019 $ 1,456 $ 2,002 $ (25 ) $ 3,433 (1) Net of adjustments to DAC, PVFP, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 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. |
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 consolidated statements of income Years ended December 31, (Amounts in millions) 2020 2019 2018 Net unrealized investment (gains) losses: Unrealized (gains) losses on investments (1) $ (474 ) $ (79 ) $ (23 ) Net investment (gains) losses Income taxes 100 17 5 Provision for income taxes Total $ (374 ) $ (62 ) $ (18 ) Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (196 ) $ (164 ) $ (153 ) Net investment income Interest rate swaps hedging assets (12 ) (6 ) (9 ) Net investment (gains) losses Income taxes 73 60 58 Provision for income taxes Total $ (135 ) $ (110 ) $ (104 ) (1) Amounts exclude adjustments to DAC, PVFP, sales inducements and benefit reserves. |
Quarterly Results of Operatio_2
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Results of Operations | Our unaudited quarterly results of operations for the year ended December 31, 2020 are summarized in the table below. Three months ended (Amounts in millions, except per share amounts) March 31, June 30, September 30, December 31, Total revenues (1) $ 1,837 $ 2,138 $ 2,420 $ 2,263 Total benefits and expenses (2) $ 1,919 $ 1,990 $ 1,835 $ 1,883 Income (loss) from continuing operations (1), (2), (3) $ (72 ) $ 102 $ 435 $ 296 Income (loss) from discontinued operations, net of taxes (4) $ — $ (520 ) $ 1 $ (30 ) Net income (loss) (1), (2), (3), (4) $ (72 ) $ (418 ) $ 436 $ 266 Net income (loss) from continuing operations attributable to noncontrolling interests $ (6 ) $ 23 $ 18 $ (1 ) Net income from discontinued operations attributable to noncontrolling interests $ — $ — $ — $ — Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (66 ) $ (441 ) $ 418 $ 267 Net income (loss) available to Genworth Financial, Inc.’s common stockholders: Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ (66 ) $ 79 $ 417 $ 297 Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders — (520 ) 1 (30 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (66 ) $ (441 ) $ 418 $ 267 Income (loss) from continuing operations available to Genworth Financial, Inc.’s Basic $ (0.13 ) $ 0.16 $ 0.83 $ 0.59 Diluted $ (0.13 ) $ 0.15 $ 0.82 $ 0.58 Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share: Basic $ (0.13 ) $ (0.87 ) $ 0.83 $ 0.53 Diluted $ (0.13 ) $ (0.86 ) $ 0.82 $ 0.52 Weighted-average common shares outstanding: Basic 504.3 505.4 505.6 505.6 Diluted (5) 504.3 512.5 511.5 512.5 (1) In the fourth quarter of 2020, we recorded lower net investment gains as compared to the third quarter of 2020. The higher net investment gains recorded in the third quarter of 2020 related to the sale of available-for-sale (2) Given our assumption that COVID-19 by $47 million. Additionally, our long-term care insurance business recorded a $91 million increase to claim reserves reflecting our assumption that COVID-19 pre-pandemic more closely for loans in payment deferral programs . . This review resulted in lower total benefits and expenses of $82 million from a net favorable unlocking in our term universal and universal life insurance products largely attributable to a model refinement in our term universal life insurance product related to persistency and grace period timing and lower projected cost of insurance assessments on our universal life insurance products. In addition, we recorded a DAC impairment of $63 million in our universal life insurance products due principally to lower future estimated gross profits. (3) In the fourth quarter of 2020 , our long-term care insurance business strengthened its reserves by $109 million after-tax. after-tax. for additional details. (4) In the fourth quarter of 2020 , we recorded a loss from discontinued operations, net of taxes, of $30 million principally attributed to foreign currency remeasurement losses of $26 million, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022 . See note 23 for additional details on discontinued operations. (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 March 31 , 2020 , we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31 , 2020 , as the inclusion of shares for stock options, RSUs and SARs of 5.4 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 March 31 , 2020 , dilutive potential weighted-average common shares outstanding would have been 509.7 million. Our unaudited quarterly results of operations for the year ended December 31, 2019 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 $ 2,044 $ 1,994 $ 2,020 $ 2,038 Total benefits and expenses (1) $ 1,807 $ 1,770 $ 1,848 $ 1,957 Income from continuing operations (2) $ 168 $ 158 $ 138 $ 55 Income (loss) from discontinued operations, net of taxes (3) $ 62 $ 60 $ (80 ) $ (31 ) Net income (2) , $ 230 $ 218 $ 58 $ 24 Net income from continuing operations attributable to noncontrolling interests $ 20 $ 15 $ 10 $ 19 Net income from discontinued operations attributable to noncontrolling interests $ 36 $ 35 $ 30 $ 22 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 174 $ 168 $ 18 $ (17 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders: Income from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 148 $ 143 $ 128 $ 36 Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders 26 25 (110 ) (53 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 174 $ 168 $ 18 $ (17 ) Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.29 $ 0.29 $ 0.25 $ 0.07 Diluted $ 0.29 $ 0.28 $ 0.25 $ 0.07 Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.35 $ 0.33 $ 0.04 $ (0.03 ) Diluted $ 0.34 $ 0.33 $ 0.04 $ (0.03 ) Weighted-average common shares outstanding: Basic 501.2 503.4 503.5 503.5 Diluted 508.6 508.7 511.2 510.4 (1) Our life insurance business completed its annual review of assumptions in the fourth quarter of 2019, which resulted in higher total benefits and expenses of $145 million from an unfavorable unlocking in our universal and term universal life insurance products driven mostly by the lower interest rate environment. (2) In the fourth quarter of 2019, our life insurance business recorded a $107 million unfavorable unlocking, net of taxes, related to its annual review of assumptions in our universal and term universal life insurance products, as described above. This unfavorable unlocking in our life insurance business was partially offset by a favorable update of $11 million, net of taxes, in our U.S. mortgage insurance business in connection with a review of its single premium earnings pattern and from a favorable reserve adjustment of $10 million, net of taxes. (3) In the fourth quarter of 2019, we recorded an after-tax |
Sale of Businesses (Tables)
Sale of Businesses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Libilities Related to Discontinued Operations | The following table presents the amounts owed to AXA under the settlement agreement, which are reflected as liabilities related to discontinued operations in our consolidated balance sheet for the year ended December 31, 2020: (Amounts in millions) British U.S. Dollar Installment payments due to AXA: June 2022 £ 159 $ 217 September 2022: Beginning balance 158 217 Amounts billed as future losses (1) 29 39 Ending balance 187 256 Total amounts due under the promissory note 346 473 Future claims: Estimated beginning balance 107 146 Change in estimated future claims 1 1 Less: Amounts billed to date (1) (29 ) (39 ) Estimated future billings 79 108 Total amounts due to AXA under the settlement agreement £ 425 $ 581 (1) In January 2021, we were billed an additional amount related to future losses of £35 million that will be reflected as part of the September 2022 installment payment in our first quarter of 2021 financial results. There was no significant change to our current estimate of future billings of £79 million based on this most recent invoiced amount. |
Schedule Of Income Loss On Sale Recorded In Our Disposition Group | The following table provides a summary of the loss on sale recorded in connection with the disposition of Genworth Canada for the year ended December 31, 2019: (Amounts in millions) Net cash proceeds $ 1,736 Add: carrying value of noncontrolling interests (1) 1,417 Total adjusted consideration (2) 3,153 Carrying value of the disposal group before accumulated other comprehensive loss 3,022 Add: total accumulated other comprehensive loss of disposal group (3) 325 Total adjusted carrying value of the disposal group 3,347 Pre-tax (194 ) Tax benefit on sale 73 After-tax $ (121 ) (1) In accordance with accounting guidance on the deconsolidation of a subsidiary or group of assets, the carrying amount of any noncontrolling interests in the subsidiary sold (adjusted to reflect amounts in accumulated other comprehensive income (loss) recognized upon final disposition) is added to the total fair value of the consideration to be received. (2) Represents the aggregate of the net cash proceeds received upon sale closing plus the adjusted carrying amount of noncontrolling interests in the subsidiary sold. (3) Consists primarily of cumulative losses on foreign currency translation adjustments of $369 million and deferred tax losses of $71 million, partially offset by unrealized investment gains of $115 million. |
Summary of Operating Results Related to Discontinued Operations | A summary of operating results for Genworth Canada reported as discontinued operations were as follows for the years ended December 31: (Amounts in millions) 2019 2018 Revenues: Premiums $ 466 $ 525 Net investment income 132 141 Net investment gains (losses) (13 ) (137 ) Total revenues 585 529 Benefits and expenses: Benefits and other changes in policy reserves 79 78 Acquisition and operating expenses, net of deferrals 64 54 Amortization of deferred acquisition costs and intangibles 39 43 Interest expense (1) 50 43 Total benefits and expenses 232 218 Income before income taxes and loss on sale (2) 353 311 Provision for income taxes 111 81 Income before loss on sale 242 230 Loss on sale, net of taxes (121 ) — Income from discontinued operations, net of taxes 121 230 Less: net income from discontinued operations attributable to noncontrolling interests 123 108 Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders $ (2 ) $ 122 (1) Interest on debt assumed by Brookfield and interest on debt that was repaid as a result of the sale of Genworth Canada was allocated and reported in discontinued operations. The Term Loan, owed by Genworth Holdings and secured by GFIH’s ownership interest in Genworth Canada’s outstanding common shares, was repaid in connection with the close of the Genworth Canada sale. Accordingly, interest expense related to the Term Loan of $34 million and $25 million for the years ended December 31, 2019 and 2018, respectively, was allocated and reported in discontinued operations. (2) The years ended December 31, 2019 and 2018 include pre-tax |
Nature of Business and Format_2
Nature of Business and Formation of Genworth - Additional Information (Detail) $ / shares in Units, $ in Millions | Oct. 21, 2016USD ($)$ / shares | Jan. 31, 2020 | Dec. 31, 2020USD ($)Segment | Apr. 01, 2013 |
Number of operating segments | Segment | 4 | |||
Unrestricted cash and cash equivalents | $ 1,032 | |||
Debt instrument interest payment on outstanding debt | 165 | |||
Cash shorfall | 15 | |||
Domestic Insurance Subsidiaries | Minimum | ||||
Dividends receivable | 50 | |||
AXA Settlement Agreement | ||||
Debt instrument, maturity month and year | 2020-07 | |||
Litigation Settlement, Expense | 53 | |||
Genworth Holdings | ||||
Percentage of subsidiary equity ownership | 100.00% | |||
Debt instrument, maturity month and year | 2020-06 | |||
Genworth Holdings | 7.20% Senior Notes, Due 2021 | ||||
Debt instrument face amount | $ 338 | |||
Debt instrument interest rate | 7.20% | |||
Debt instrument, maturity month and year | 2021-02 | |||
Genworth Holdings | 7.625% Senior Notes, Due 2021 | ||||
Debt instrument face amount | $ 659 | |||
Debt instrument interest rate | 7.625% | |||
Debt instrument, maturity month and year | 2021-09 | |||
China Oceanwide Holdings Group Co., Ltd. | Definitive Acquisition Agreement | ||||
Total transaction value to acquire all of our outstanding common stock | $ 2,700 | |||
Per share amount to acquire all of our outstanding common stock | $ / shares | $ 5.43 | |||
Additional contribution following consummation of the merger | $ 1,500 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | Jan. 01, 2018USD ($) | Dec. 31, 2020USD ($)Location | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2020USD ($) | Jan. 01, 2019USD ($) | |
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 | |||||||
Goodwill impairment charges | $ 5 | $ 0 | $ 0 | |||||
Unearned premiums, increase (decrease) in earned premiums due to updated premium recognition factors for international mortgage insurance business | 14 | |||||||
Retained earnings | 1,584 | 1,461 | ||||||
Accumulated other comprehensive income | 4,425 | 3,433 | 2,044 | $ 3,027 | ||||
Net cash from financing activities | $ (1,507) | (2,217) | $ (1,621) | |||||
Number of office space lease locations | Location | 11 | |||||||
Operating Lease, Weighted Average Remaining Lease Term | 9 years 4 months 24 days | |||||||
Operating lease weighted average discount rate | 6.60% | |||||||
Lease rental expense | $ 11 | |||||||
Restricted commercial mortgage loans related to securitization entities | 38 | 47 | ||||||
Commercial mortgage loans | ||||||||
Accounting Policies [Abstract] | ||||||||
Accrued interest carrying value in Accrued investment income | $ 23 | |||||||
Maximum [Member] | ||||||||
Accounting Policies [Abstract] | ||||||||
Operating lease term | 18 years | |||||||
Minimum [Member] | ||||||||
Accounting Policies [Abstract] | ||||||||
Operating lease term | 1 year | |||||||
Non-cash | Derivative assets | ||||||||
Accounting Policies [Abstract] | ||||||||
Fair value of non-cash collateral received | $ 161 | 112 | ||||||
Subject to enforceable master netting arrangement | ||||||||
Accounting Policies [Abstract] | ||||||||
Fair value of non-cash collateral received | (408) | (179) | ||||||
Fair value of collateral pledged | 505 | 405 | ||||||
Subject to enforceable master netting arrangement | Derivative liabilities | ||||||||
Accounting Policies [Abstract] | ||||||||
Fair value of non-cash collateral received | [1] | 0 | 0 | |||||
Fair value of collateral pledged | [1] | (505) | (405) | |||||
Subject to enforceable master netting arrangement | Derivative assets | ||||||||
Accounting Policies [Abstract] | ||||||||
Fair value of non-cash collateral received | [1] | (408) | (179) | |||||
Fair value of collateral pledged | [1] | 0 | 0 | |||||
Subject to enforceable master netting arrangement | Cash Collateral | Derivative liabilities | ||||||||
Accounting Policies [Abstract] | ||||||||
Fair value of collateral pledged | 100 | $ 64 | ||||||
Fixed maturity securities | ||||||||
Accounting Policies [Abstract] | ||||||||
Accrued interest carrying value in Accrued investment income | $ 548 | |||||||
Accounting Standards Update 2017-12 | Derivative and Hedging | Cumulative effect of change in accounting | ||||||||
Accounting Policies [Abstract] | ||||||||
Retained earnings | $ (2) | |||||||
Accumulated other comprehensive income | 2 | |||||||
Accounting Standards Update 2016-15 | Repayment and Repurchase of Long-Term Debt | ||||||||
Accounting Policies [Abstract] | ||||||||
Net cash from financing activities | (20) | |||||||
Accounting standards update 2016-02 | ||||||||
Accounting Policies [Abstract] | ||||||||
Right of use asset related to operating leases included in other assets | $ 52 | |||||||
Operating Lease, Liability | 55 | |||||||
Accrued rent expense, derecognized | $ 3 | |||||||
Accounting Standards Update 2016-13 | Off-balance sheet credit exposures | Cumulative effect of change in accounting | ||||||||
Accounting Policies [Abstract] | ||||||||
Retained earnings | $ 1 | |||||||
Accounting Standards Update 2016-13 | Reinsurance recoverables | Cumulative effect of change in accounting | ||||||||
Accounting Policies [Abstract] | ||||||||
Retained earnings | 31 | |||||||
Adoption of new accounting guidance, deferred tax impact | 9 | |||||||
Accounting Standards Update 2016-13 | Investments carried at amortized cost | Cumulative effect of change in accounting | ||||||||
Accounting Policies [Abstract] | ||||||||
Retained earnings | 23 | |||||||
Adoption of new accounting guidance, deferred tax impact | $ 6 | |||||||
Accounting Standards Update 2016-01 | Limited Partner | Cumulative effect of change in accounting | ||||||||
Accounting Policies [Abstract] | ||||||||
Retained earnings | 17 | |||||||
Accounting Standards Update 2016-01 | Equity Securities | Cumulative effect of change in accounting | ||||||||
Accounting Policies [Abstract] | ||||||||
Retained earnings | 25 | |||||||
Accumulated other comprehensive income | $ (25) | |||||||
[1] | Included $1 million of accruals on derivatives classified as other assets as of December 31, 2019 and does not include amounts related to embedded derivatives as of December 31, 2020 and 2019. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Components for Cumulative Effect Adjustment (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2018 |
Deferred taxes: | |||
Net unrealized gains on investment securities | $ 601 | $ 396 | |
Net unrealized gains on derivatives | 70 | 71 | |
Accrued commission and general expenses | (114) | (114) | |
Total Genworth Financial, Inc.'s stockholders' equity | $ 15,318 | $ 14,185 | |
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 | ||
Tax Cuts And Jobs Act of 2017 | Cumulative effect of changes in accounting | |||
Deferred taxes: | |||
Total Genworth Financial, Inc.'s stockholders' equity | 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 | ||
Accumulated other comprehensive income (loss) / Net unrealized investment gains (losses) | Tax Cuts And Jobs Act of 2017 | Cumulative effect of changes in accounting | |||
Deferred taxes: | |||
Total Genworth Financial, Inc.'s stockholders' equity | 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 | ||
Accumulated other comprehensive income (loss) / Derivatives qualifying as hedges | Tax Cuts And Jobs Act of 2017 | Cumulative effect of changes in accounting | |||
Deferred taxes: | |||
Total Genworth Financial, Inc.'s stockholders' equity | 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) | ||
Accumulated other comprehensive income (loss) / Foreign currency translation and other adjustments | Tax Cuts And Jobs Act of 2017 | Cumulative effect of changes in accounting | |||
Deferred taxes: | |||
Total Genworth Financial, Inc.'s stockholders' equity | (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 | ||
Retained earnings | Tax Cuts And Jobs Act of 2017 | Cumulative effect of changes in accounting | |||
Deferred taxes: | |||
Total Genworth Financial, Inc.'s stockholders' equity | $ (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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Weighted-average common shares used in basic earnings (loss) per share calculations | 505.6 | 505.6 | 505.4 | 504.3 | 503.5 | 503.5 | 503.4 | 501.2 | 505.2 | 502.9 | 500.4 | ||||||||
Stock options, restricted stock units and stock appreciation rights | 6.4 | 6.8 | 0 | ||||||||||||||||
Weighted-average common shares used in diluted earnings (loss) per share calculations | 512.5 | [1] | 511.5 | [1] | 512.5 | [1] | 504.3 | [1] | 510.4 | 511.2 | 508.7 | 508.6 | 511.6 | 509.7 | 500.4 | ||||
Income from continuing operations: | |||||||||||||||||||
Income from continuing operations | $ 296 | [2],[3],[4] | $ 435 | [2],[3],[4] | $ 102 | [2],[3],[4] | $ (72) | [2],[3],[4] | $ 55 | [5] | $ 138 | [5] | $ 158 | [5] | $ 168 | [5] | $ 761 | $ 519 | $ 67 |
Less: net income (loss) from continuing operations attributable to noncontrolling interests | (1) | 18 | 23 | (6) | 19 | 10 | 15 | 20 | 34 | 64 | 70 | ||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | $ 297 | $ 417 | $ 79 | $ (66) | $ 36 | $ 128 | $ 143 | $ 148 | $ 727 | $ 455 | $ (3) | ||||||||
Basic per share | $ 0.59 | $ 0.83 | $ 0.16 | $ (0.13) | $ 0.07 | $ 0.25 | $ 0.29 | $ 0.29 | $ 1.44 | $ 0.90 | $ (0.01) | ||||||||
Diluted per share | $ 0.58 | $ 0.82 | $ 0.15 | $ (0.13) | $ 0.07 | $ 0.25 | $ 0.28 | $ 0.29 | $ 1.42 | $ 0.89 | $ (0.01) | ||||||||
Income (loss) from discontinued operations: | |||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | $ (30) | [6] | $ 1 | [6] | $ (520) | [6] | $ 0 | [6] | $ (31) | [7] | $ (80) | [7] | $ 60 | [7] | $ 62 | [7] | $ (549) | $ 11 | $ 230 |
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 22 | 30 | 35 | 36 | 0 | 123 | 108 | ||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders | (30) | 1 | (520) | 0 | (53) | (110) | 25 | 26 | $ (549) | $ (112) | $ 122 | ||||||||
Basic per share | $ (1.09) | $ (0.22) | $ 0.24 | ||||||||||||||||
Diluted per share | $ (1.07) | $ (0.22) | $ 0.24 | ||||||||||||||||
Net income (loss): | |||||||||||||||||||
Income from continuing operations | 296 | [2],[3],[4] | 435 | [2],[3],[4] | 102 | [2],[3],[4] | (72) | [2],[3],[4] | 55 | [5] | 138 | [5] | 158 | [5] | 168 | [5] | $ 761 | $ 519 | $ 67 |
Income from discontinued operations, net of taxes | (30) | [6] | 1 | [6] | (520) | [6] | 0 | [6] | (31) | [7] | (80) | [7] | 60 | [7] | 62 | [7] | (549) | 11 | 230 |
Net income | 266 | [2],[3],[4],[6] | 436 | [2],[3],[4],[6] | (418) | [2],[3],[4],[6] | (72) | [2],[3],[4],[6] | 24 | [5],[7] | 58 | [5],[7] | 218 | [5],[7] | 230 | [5],[7] | 212 | 530 | 297 |
Less: net income attributable to noncontrolling interests | 34 | 187 | 178 | ||||||||||||||||
Net income available to Genworth Financial, Inc.'s common stockholders | $ 267 | $ 418 | $ (441) | $ (66) | $ (17) | $ 18 | $ 168 | $ 174 | $ 178 | $ 343 | $ 119 | ||||||||
Basic per share | $ 0.53 | $ 0.83 | $ (0.87) | $ (0.13) | $ (0.03) | $ 0.04 | $ 0.33 | $ 0.35 | $ 0.35 | $ 0.68 | $ 0.24 | ||||||||
Diluted per share | $ 0.52 | $ 0.82 | $ (0.86) | $ (0.13) | $ (0.03) | $ 0.04 | $ 0.33 | $ 0.34 | $ 0.35 | $ 0.67 | $ 0.24 | ||||||||
[1] | Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months ended March 31, 2020, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, RSUs and SARs of 5.4 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 March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million. | ||||||||||||||||||
[2] | Given our assumption that COVID-19 has temporarily decreased the number of new claims submitted, our long-term care insurance business strengthened IBNR reserves in the fourth quarter of 2020 by $47 million. Additionally, our long-term care insurance business recorded a $91 million increase to claim reserves reflecting our assumption that COVID-19 accelerated mortality experience on the most vulnerable claimants, leaving the remaining claim population less likely to terminate compared to the pre-pandemic average population. Our U.S. mortgage insurance business recorded an unfavorable reserve adjustment of $37 million primarily due to slowing cure emergence patterns impacting the frequency of claim. Our Australia mortgage insurance business strengthened its loss reserves by $88 million, including its IBNR reserves, due to a refinement in methodology to better align with historical delinquency behavior, as well as to reflect delayed impacts from higher expected delinquencies and the pressured economic conditions caused by COVID-19. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2020. This review resulted in lower total benefits and expenses of $82 million from a net favorable unlocking in our term universal and universal life insurance products largely attributable to a model refinement in our term universal life insurance product related to persistency and grace period timing and lower projected cost of insurance assessments on our universal life insurance products. In addition, we recorded a DAC impairment of $63 million in our universal life insurance products due principally to lower future estimated gross profits. | ||||||||||||||||||
[3] | In the fourth quarter of 2020, our long-term care insurance business strengthened its reserves by $109 million after-tax. Our U.S. mortgage insurance and Australia mortgage insurance businesses strengthened their loss reserves by $29 million and $62 million, respectively, after-tax. Our life insurance business recorded a $60 million net favorable unlocking, net of taxes, related to its annual review of assumptions. This favorable unlocking in our life insurance business was partially offset by a DAC impairment of $50 million, net of taxes, as a result of recoverability testing. For all of the aforementioned transactions, see above under superscript (2) for additional details. | ||||||||||||||||||
[4] | In the fourth quarter of 2020, we recorded lower net investment gains as compared to the third quarter of 2020. The higher net investment gains recorded in the third quarter of 2020 related to the sale of available-for-sale fixed maturity securities of $330 million driven primarily from the sale of U.S. government securities due to portfolio rebalancing and asset exposure management as a result of the prolonged low interest rate environment. This decrease to total revenues was partially offset by higher net investment income recorded in the fourth quarter of 2020 largely driven by bond calls and mortgage loan repayments of $40 million and limited partnerships of $38 million. | ||||||||||||||||||
[5] | In the fourth quarter of 2019, our life insurance business recorded a $107 million unfavorable unlocking, net of taxes, related to its annual review of assumptions in our universal and term universal life insurance products, as described above. This unfavorable unlocking in our life insurance business was partially offset by a favorable update of $11 million, net of taxes, in our U.S. mortgage insurance business in connection with a review of its single premium earnings pattern and from a favorable reserve adjustment of $10 million, net of taxes. | ||||||||||||||||||
[6] | In the fourth quarter of 2020, we recorded a loss from discontinued operations, net of taxes, of $30 million principally attributed to foreign currency remeasurement losses of $26 million, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022. See note 23 for additional details on discontinued operations. | ||||||||||||||||||
[7] | In the fourth quarter of 2019, we recorded an after-tax loss of approximately $110 million principally in connection with pending litigation involving our former lifestyle protection insurance business. See note 20 for additional information related to asserted claims regarding the sale of our lifestyle protection insurance business. We completed the sale of Genworth MI Canada Inc. (“Genworth Canada”) on December 12, 2019 and recorded an incremental gain of $43 million in the fourth quarter of 2019 predominantly related to a favorable tax position refinement. In addition, during the fourth quarter of 2019 through the sale closing date of December 12, 2019, we recorded $36 million of income from discontinued operations attributed to Genworth Canada. |
Earning (Loss) Per Share (Paren
Earning (Loss) Per Share (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2018 | |
Earnings Per Share Disclosure [Line Items] | ||
Weighted-average diluted common shares outstanding, antidilutive securities (stock options, RSUs and SARs) | 5.4 | 3.8 |
Weighted-average number of diluted shares if not in a loss position | 509.7 | 504.2 |
Net Investment Income (Detail)
Net Investment Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Investment Income [Line Items] | |||
Gross investment income before expenses and fees | $ 3,355 | $ 3,319 | $ 3,212 |
Expenses and fees | (95) | (99) | (91) |
Net investment income | 3,260 | 3,220 | 3,121 |
Fixed maturity securities—taxable | |||
Net Investment Income [Line Items] | |||
Gross investment income before expenses and fees | 2,480 | 2,494 | 2,456 |
Fixed maturity securities—non-taxable | |||
Net Investment Income [Line Items] | |||
Gross investment income before expenses and fees | 6 | 8 | 11 |
Equity Securities | |||
Net Investment Income [Line Items] | |||
Gross investment income before expenses and fees | 13 | 16 | 20 |
Commercial mortgage loans | |||
Net Investment Income [Line Items] | |||
Gross investment income before expenses and fees | 345 | 348 | 327 |
Policy Loans | |||
Net Investment Income [Line Items] | |||
Gross investment income before expenses and fees | 199 | 180 | 169 |
Other invested assets | |||
Net Investment Income [Line Items] | |||
Gross investment income before expenses and fees | 295 | 234 | 181 |
Cash, cash equivalents, restricted cash and short-term investments | |||
Net Investment Income [Line Items] | |||
Gross investment income before expenses and fees | $ 17 | $ 39 | $ 48 |
Net Investment Gains (Losses) (
Net Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Available-for-sale securities: | ||||
Realized gains | $ 512 | $ 107 | $ 162 | |
Realized losses | (34) | (39) | (137) | |
Net realized gains (losses) on available-for-sale securities | 478 | 68 | 25 | |
Total other-than-temporary impairments | 0 | (1) | 0 | |
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 0 | 0 | 0 | |
Net other-than-temporary impairments | 0 | (1) | 0 | |
Net change in allowance for credit losses on available-for-sale fixed maturity securities | (5) | 0 | 0 | |
Write-down of available-for-sale fixed maturity securities | [1] | (4) | 0 | 0 |
Net realized gains (losses) on equity securities sold | (1) | 9 | 11 | |
Net unrealized gains (losses) on equity securities still held | 2 | 14 | (34) | |
Limited partnerships | 112 | 29 | 11 | |
Commercial mortgage loans | (2) | (2) | 0 | |
Derivative instruments | [2] | (17) | (72) | (22) |
Other | (5) | 5 | 0 | |
Total net investment gains (losses) | $ 558 | $ 50 | $ (9) | |
[1] | Represents write-down of securities we intend to sell or will be required to sell prior to recovery of the amortized cost basis. | |||
[2] | See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). |
Net Investment Allowance for Cr
Net Investment Allowance for Credit Losses (Detail) - Fixed maturity securities $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |
Beginning Balance | $ 0 |
Increase from securities without allowance in previous periods | 7 |
Increase (decrease) from securities with allowance in previous periods | (2) |
Securities Sold | (1) |
Decrease due to change in intent or requirement to sell | 0 |
Write-offs | 0 |
Recoveries | 0 |
Ending Balance | 4 |
Non-U.S. corporate | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |
Beginning Balance | 0 |
Increase from securities without allowance in previous periods | 4 |
Increase (decrease) from securities with allowance in previous periods | (2) |
Securities Sold | (1) |
Decrease due to change in intent or requirement to sell | 0 |
Write-offs | 0 |
Recoveries | 0 |
Ending Balance | 1 |
Commercial mortgage-backed | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |
Beginning Balance | 0 |
Increase from securities without allowance in previous periods | 3 |
Increase (decrease) from securities with allowance in previous periods | 0 |
Securities Sold | 0 |
Decrease due to change in intent or requirement to sell | 0 |
Write-offs | 0 |
Recoveries | 0 |
Ending Balance | $ 3 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Investments [Line Items] | ||
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 on nonaccrual status | $ 0 | $ 0 |
Total Assets | 105,747 | 101,342 |
Modified or extended troubled debt restructurings | $ 0 | 0 |
Limited Partnership Interests | ||
Schedule of Investments [Line Items] | ||
Minimum threshold ownership percentage of limited partnership interest, equity method | 3.00% | |
Limited Partnership Interests | Variable interest Entity, not primary beneficiary | ||
Schedule of Investments [Line Items] | ||
Total Assets | $ 1,018 | 616 |
Finance and insurance | Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Percent of investment portfolio, greater than 10% | 25.00% | |
Utilities | Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Percent of investment portfolio, greater than 10% | 13.00% | |
Consumer-non-cyclical | Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Percent of investment portfolio, greater than 10% | 15.00% | |
Insurance [Member] | ||
Schedule of Investments [Line Items] | ||
Securities on deposit with various state government insurance departments | $ 46 | $ 44 |
Technology and Communications [Member] | Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Percent of investment portfolio, greater than 10% | 11.00% |
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, 2019 | Dec. 31, 2018 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Cumulative credit losses, beginning balance | $ 24 | $ 32 |
Securities sold, paid down or disposed | (2) | (8) |
Cumulative credit losses, ending balance | $ 22 | $ 24 |
Net Unrealized Gains and Losses
Net Unrealized Gains and Losses on Available-for-Sale Investment Securities Reflected as Separate Component of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses | [1] | $ 10,159 | $ 6,676 | $ 1,775 | |
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses | [1] | (7) | 0 | 0 | |
Adjustments to DAC, PVFP, sales inducements and benefit reserves | (7,302) | (4,789) | (952) | ||
Income taxes, net | (611) | (406) | (190) | ||
Net unrealized investment gains (losses) | 2,239 | 1,481 | 633 | ||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests | 25 | 25 | 38 | ||
Net unrealized investment gains (losses) | $ 2,214 | $ 1,456 | $ 595 | $ 1,085 | |
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Investments [Abstract] | ||||||
Net unrealized investment gains (losses), beginning of period | $ 1,456 | $ 595 | $ 1,085 | |||
Cumulative effect of changes in accounting: | ||||||
Stranded tax effects | 0 | 0 | 189 | |||
Recognition and measurement of financial assets and liabilities, net of taxes of $—, $18 and $— | 0 | 0 | (25) | |||
Accumulated other comprehensive income | 4,425 | 3,433 | 2,044 | $ 3,027 | ||
Unrealized gains (losses) on investment securities | 3,950 | 4,980 | (3,327) | |||
Adjustment to DAC | [1] | 122 | (956) | 1,182 | ||
Adjustment to PVFP | (1) | (49) | 69 | |||
Adjustment to sales inducements | (5) | (32) | 34 | |||
Adjustment to benefit reserves and policyholder contract balances | [2] | (2,629) | (2,800) | 1,208 | ||
Provision for income taxes | (305) | (233) | 181 | |||
Change in unrealized gains (losses) on investment securities | 1,132 | 910 | (653) | |||
Reclassification adjustments to net investment (gains) losses, net of taxes of $17, $5 and $55 | (374) | (62) | (18) | |||
Change in net unrealized investment gains (losses) | 758 | 848 | (671) | |||
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests | 0 | (13) | (17) | |||
Net unrealized investment gains (losses), end of period | 2,214 | 1,456 | 595 | |||
Net unrealized investment (gains) losses | ||||||
Cumulative effect of changes in accounting: | ||||||
Accumulated other comprehensive income | [3] | 2,214 | 1,456 | 595 | 1,085 | |
Cumulative effect of changes in accounting | ||||||
Cumulative effect of changes in accounting: | ||||||
Accumulated other comprehensive income | 131 | |||||
Cumulative effect of changes in accounting | Net unrealized investment (gains) losses | ||||||
Cumulative effect of changes in accounting: | ||||||
Accumulated other comprehensive income | $ 0 | $ 0 | $ 164 | $ 164 | [3] | |
[1] | See note 6 for additional information. | |||||
[2] | See note 9 for additional information. | |||||
[3] | Net of adjustments to DAC, PVFP, sales inducements and benefit reserves. See note 4 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ 0 | $ 0 | $ 18 |
Reclassification adjustments to net investment (gains) losses, taxes | $ 100 | $ 17 | $ 5 |
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, 2020 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | ||
Amortized cost or cost, total | $ 53,700 | |
Fair value, total | 60,339 | |
Amortized cost or cost, fixed maturity securities | $ 55,676 | |
Fair value, fixed maturity securities | 65,790 | 60,339 |
Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, total | 55,676 | |
Gross unrealized gains | 10,175 | |
Gross unrealized losses | (57) | |
Fair value, total | 65,790 | |
Allowance for credit losses | (4) | 0 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,401 | 4,073 |
Gross unrealized gains, fixed maturity securities | 1,404 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 4,805 | 5,025 |
Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,627 | 2,394 |
Gross unrealized gains, fixed maturity securities | 544 | |
Gross unrealized losses, fixed maturity securities | (1) | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 3,170 | 2,747 |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,420 | 1,235 |
Gross unrealized gains, fixed maturity securities | 144 | |
Gross unrealized losses, fixed maturity securities | (5) | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 1,559 | 1,350 |
Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 30,148 | 28,313 |
Gross unrealized gains, fixed maturity securities | 5,989 | |
Gross unrealized losses, fixed maturity securities | (23) | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 36,114 | 32,111 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,244 | 4,322 |
Gross unrealized gains, fixed maturity securities | 970 | |
Gross unrealized losses, fixed maturity securities | (2) | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 5,212 | 4,997 |
Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,549 | 2,404 |
Gross unrealized gains, fixed maturity securities | 367 | |
Gross unrealized losses, fixed maturity securities | (16) | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 2,900 | 2,699 |
Fixed maturity securities | U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 7,843 | 6,977 |
Gross unrealized gains, fixed maturity securities | 1,307 | |
Gross unrealized losses, fixed maturity securities | (2) | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 9,148 | 7,774 |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 5,147 | 4,909 |
Gross unrealized gains, fixed maturity securities | 1,324 | |
Gross unrealized losses, fixed maturity securities | (1) | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 6,470 | 5,701 |
Fixed maturity securities | U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,207 | 2,883 |
Gross unrealized gains, fixed maturity securities | 620 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 3,827 | 3,245 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,375 | 1,271 |
Gross unrealized gains, fixed maturity securities | 232 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 1,607 | 1,396 |
Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,466 | 2,345 |
Gross unrealized gains, fixed maturity securities | 535 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 3,001 | 2,711 |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,722 | 1,590 |
Gross unrealized gains, fixed maturity securities | 285 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 2,007 | 1,760 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,200 | 1,320 |
Gross unrealized gains, fixed maturity securities | 304 | |
Gross unrealized losses, fixed maturity securities | (2) | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 1,502 | 1,506 |
Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 395 | 292 |
Gross unrealized gains, fixed maturity securities | 45 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 440 | 322 |
Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 10,330 | 9,469 |
Gross unrealized gains, fixed maturity securities | 1,596 | |
Gross unrealized losses, fixed maturity securities | (11) | |
Allowance for credit losses | (1) | 0 |
Fair value, fixed maturity securities | 11,914 | 10,525 |
Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 899 | 779 |
Gross unrealized gains, fixed maturity securities | 84 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 983 | 829 |
Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,190 | 1,140 |
Gross unrealized gains, fixed maturity securities | 209 | |
Gross unrealized losses, fixed maturity securities | (1) | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 1,398 | 1,319 |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,470 | 2,087 |
Gross unrealized gains, fixed maturity securities | 357 | |
Gross unrealized losses, fixed maturity securities | (6) | |
Allowance for credit losses | (1) | |
Fair value, fixed maturity securities | 2,820 | 2,319 |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 712 | 631 |
Gross unrealized gains, fixed maturity securities | 113 | |
Gross unrealized losses, fixed maturity securities | (1) | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 824 | 684 |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,082 | 1,010 |
Gross unrealized gains, fixed maturity securities | 229 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 1,311 | 1,138 |
Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 970 | 896 |
Gross unrealized gains, fixed maturity securities | 159 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 1,129 | 988 |
Fixed maturity securities | Non-U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 549 | 565 |
Gross unrealized gains, fixed maturity securities | 68 | |
Gross unrealized losses, fixed maturity securities | (1) | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 616 | 605 |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 356 | 373 |
Gross unrealized gains, fixed maturity securities | 41 | |
Gross unrealized losses, fixed maturity securities | (1) | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 396 | 397 |
Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 520 | 557 |
Gross unrealized gains, fixed maturity securities | 90 | |
Gross unrealized losses, fixed maturity securities | (1) | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 609 | 629 |
Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,582 | 1,431 |
Gross unrealized gains, fixed maturity securities | 246 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 1,828 | 1,617 |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,698 | 2,057 |
Gross unrealized gains, fixed maturity securities | 211 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | 1,909 | 2,270 |
Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,759 | 2,897 |
Gross unrealized gains, fixed maturity securities | 231 | |
Gross unrealized losses, fixed maturity securities | (13) | |
Allowance for credit losses | (3) | 0 |
Fair value, fixed maturity securities | 2,974 | 3,026 |
Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,293 | 3,262 |
Gross unrealized gains, fixed maturity securities | 56 | |
Gross unrealized losses, fixed maturity securities | (4) | |
Allowance for credit losses | 0 | |
Fair value, fixed maturity securities | $ 3,345 | 3,285 |
Not other-than-temporary impairments | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains | 6,667 | |
Gross unrealized losses | (43) | |
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 | 952 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Not other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 355 | |
Gross unrealized losses, fixed maturity securities | (2) | |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 117 | |
Gross unrealized losses, fixed maturity securities | (2) | |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 3,816 | |
Gross unrealized losses, fixed maturity securities | (18) | |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 675 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 303 | |
Gross unrealized losses, fixed maturity securities | (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 | 798 | |
Gross unrealized losses, fixed maturity securities | (1) | |
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 | 796 | |
Gross unrealized losses, fixed maturity securities | (4) | |
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 | 363 | |
Gross unrealized losses, fixed maturity securities | (1) | |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 125 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 367 | |
Gross unrealized losses, fixed maturity securities | (1) | |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 172 | |
Gross unrealized losses, fixed maturity securities | (2) | |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 187 | |
Gross unrealized losses, fixed maturity securities | (1) | |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 30 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 1,061 | |
Gross unrealized losses, fixed maturity securities | (5) | |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 50 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 179 | |
Gross unrealized losses, fixed maturity securities | 0 | |
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 | 232 | |
Gross unrealized losses, fixed maturity securities | 0 | |
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 | 55 | |
Gross unrealized losses, fixed maturity securities | (2) | |
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 | 128 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 92 | |
Gross unrealized losses, fixed maturity securities | 0 | |
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 | 40 | |
Gross unrealized losses, fixed maturity securities | 0 | |
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 | 24 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 73 | |
Gross unrealized losses, fixed maturity securities | (1) | |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 188 | |
Gross unrealized losses, fixed maturity securities | (2) | |
Not other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 199 | |
Gross unrealized losses, fixed maturity securities | (1) | |
Not other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 137 | |
Gross unrealized losses, fixed maturity securities | (8) | |
Not other-than-temporary impairments | Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 30 | |
Gross unrealized losses, fixed maturity securities | (7) | |
Other-than-temporary impairments | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains | 15 | |
Gross unrealized losses | 0 | |
Other-than-temporary impairments | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 15 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | 0 | |
Other-than-temporary impairments | Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | |
Gross unrealized losses, fixed maturity securities | $ 0 |
Gross Unrealized Losses and Fai
Gross Unrealized Losses and Fair Value of Investment Securities (Detail) $ in Millions | Dec. 31, 2020USD ($)Securities | Dec. 31, 2019USD ($)Securities |
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 1,118 | $ 1,452 |
Less than 12 months, Gross unrealized losses | $ (43) | $ (18) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 204 | 231 |
12 months or more, Fair value | $ 247 | $ 817 |
12 months or more, Gross unrealized losses | $ (7) | $ (25) |
12 months or more, Number of securities in a continuous loss position | Securities | 54 | 158 |
Fair value | $ 1,365 | $ 2,269 |
Gross unrealized losses | $ (50) | $ (43) |
Number of securities in a continuous loss position | Securities | 258 | 389 |
Investment grade | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 943 | $ 1,408 |
Less than 12 months, Gross unrealized losses | $ (24) | $ (14) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 171 | 223 |
12 months or more, Fair value | $ 207 | $ 702 |
12 months or more, Gross unrealized losses | $ (2) | $ (15) |
12 months or more, Number of securities in a continuous loss position | Securities | 48 | 145 |
Fair value | $ 1,150 | $ 2,110 |
Gross unrealized losses | $ (26) | $ (29) |
Number of securities in a continuous loss position | Securities | 219 | 368 |
Below investment grade | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 175 | $ 44 |
Less than 12 months, Gross unrealized losses | $ (19) | $ (4) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 33 | 8 |
12 months or more, Fair value | $ 40 | $ 115 |
12 months or more, Gross unrealized losses | $ (5) | $ (10) |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | 13 |
Fair value | $ 215 | $ 159 |
Gross unrealized losses | $ (24) | $ (14) |
Number of securities in a continuous loss position | Securities | 39 | 21 |
Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 1,118 | $ 1,452 |
Less than 12 months, Gross unrealized losses | $ (43) | $ (18) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 204 | 231 |
12 months or more, Fair value | $ 247 | $ 817 |
12 months or more, Gross unrealized losses | $ (7) | $ (25) |
12 months or more, Number of securities in a continuous loss position | Securities | 54 | 158 |
Fair value | $ 1,365 | $ 2,269 |
Gross unrealized losses | $ (50) | $ (43) |
Number of securities in a continuous loss position | Securities | 258 | 389 |
Fixed maturity securities | Less Than 20 Percent Below Cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 1,108 | $ 1,452 |
Less than 12 months, Gross unrealized losses | $ (36) | $ (18) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 202 | 231 |
12 months or more, Fair value | $ 246 | $ 807 |
12 months or more, Gross unrealized losses | $ (6) | $ (20) |
12 months or more, Number of securities in a continuous loss position | Securities | 53 | 155 |
Fair value | $ 1,354 | $ 2,259 |
Gross unrealized losses | $ (42) | $ (38) |
Number of securities in a continuous loss position | Securities | 255 | 386 |
Fixed maturity securities | 20 To 50 percent below cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 10 | $ 0 |
Less than 12 months, Gross unrealized losses | $ (7) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2 | 0 |
12 months or more, Fair value | $ 1 | $ 10 |
12 months or more, Gross unrealized losses | $ (1) | $ (5) |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | 3 |
Fair value | $ 11 | $ 10 |
Gross unrealized losses | $ (8) | $ (5) |
Number of securities in a continuous loss position | Securities | 3 | 3 |
Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 28 | $ 91 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 6 | 14 |
12 months or more, Fair value | $ 0 | $ 0 |
12 months or more, Gross unrealized losses | $ 0 | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 0 |
Fair value | $ 28 | $ 91 |
Gross unrealized losses | $ (1) | $ (2) |
Number of securities in a continuous loss position | Securities | 6 | 14 |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 135 | $ 224 |
Less than 12 months, Gross unrealized losses | $ (5) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 13 | 20 |
12 months or more, Fair value | $ 0 | $ 0 |
12 months or more, Gross unrealized losses | $ 0 | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 0 |
Fair value | $ 135 | $ 224 |
Gross unrealized losses | $ (5) | $ (2) |
Number of securities in a continuous loss position | Securities | 13 | 20 |
Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 345 | $ 123 |
Less than 12 months, Gross unrealized losses | $ (20) | $ (5) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 59 | 27 |
12 months or more, Fair value | $ 33 | $ 302 |
12 months or more, Gross unrealized losses | $ (3) | $ (13) |
12 months or more, Number of securities in a continuous loss position | Securities | 4 | 33 |
Fair value | $ 378 | $ 425 |
Gross unrealized losses | $ (23) | $ (18) |
Number of securities in a continuous loss position | Securities | 63 | 60 |
Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 145 | $ 79 |
Less than 12 months, Gross unrealized losses | $ (4) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 32 | 12 |
12 months or more, Fair value | $ 6 | $ 62 |
12 months or more, Gross unrealized losses | $ (1) | $ (4) |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | 7 |
Fair value | $ 151 | $ 141 |
Gross unrealized losses | $ (5) | $ (5) |
Number of securities in a continuous loss position | Securities | 33 | 19 |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 22 | |
Less than 12 months, Gross unrealized losses | $ (1) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 10 | |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 22 | |
Gross unrealized losses | $ (1) | |
Number of securities in a continuous loss position | Securities | 10 | |
Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 227 | $ 381 |
Less than 12 months, Gross unrealized losses | $ (11) | $ (5) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 34 | 51 |
12 months or more, Fair value | $ 1 | $ 14 |
12 months or more, Gross unrealized losses | $ (1) | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | 3 |
Fair value | $ 228 | $ 395 |
Gross unrealized losses | $ (12) | $ (8) |
Number of securities in a continuous loss position | Securities | 35 | 54 |
Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 238 | $ 532 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 60 | 97 |
12 months or more, Fair value | $ 207 | $ 439 |
12 months or more, Gross unrealized losses | $ (2) | $ (5) |
12 months or more, Number of securities in a continuous loss position | Securities | 48 | 115 |
Fair value | $ 445 | $ 971 |
Gross unrealized losses | $ (4) | $ (7) |
Number of securities in a continuous loss position | Securities | 108 | 212 |
Gross Unrealized Losses and F_2
Gross Unrealized Losses and Fair Value of Corporate Securities Based on Industries (Detail) $ in Millions | Dec. 31, 2020USD ($)Securities | Dec. 31, 2019USD ($)Securities |
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 1,118 | $ 1,452 |
Less than 12 months, Gross unrealized losses | $ (43) | $ (18) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 204 | 231 |
12 months or more, Fair value | $ 247 | $ 817 |
12 months or more, Gross unrealized losses | $ (7) | $ (25) |
12 months or more, Number of securities in a continuous loss position | Securities | 54 | 158 |
Fair value | $ 1,365 | $ 2,269 |
Gross unrealized losses | $ (50) | $ (43) |
Number of securities in a continuous loss position | Securities | 258 | 389 |
Fixed maturity securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 1,118 | $ 1,452 |
Less than 12 months, Gross unrealized losses | $ (43) | $ (18) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 204 | 231 |
12 months or more, Fair value | $ 247 | $ 817 |
12 months or more, Gross unrealized losses | $ (7) | $ (25) |
12 months or more, Number of securities in a continuous loss position | Securities | 54 | 158 |
Fair value | $ 1,365 | $ 2,269 |
Gross unrealized losses | $ (50) | $ (43) |
Number of securities in a continuous loss position | Securities | 258 | 389 |
Fixed maturity securities | U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 345 | $ 123 |
Less than 12 months, Gross unrealized losses | $ (20) | $ (5) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 59 | 27 |
12 months or more, Fair value | $ 33 | $ 302 |
12 months or more, Gross unrealized losses | $ (3) | $ (13) |
12 months or more, Number of securities in a continuous loss position | Securities | 4 | 33 |
Fair value | $ 378 | $ 425 |
Gross unrealized losses | $ (23) | $ (18) |
Number of securities in a continuous loss position | Securities | 63 | 60 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 49 | |
Less than 12 months, Gross unrealized losses | $ (2) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 9 | |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 49 | |
Gross unrealized losses | $ (2) | |
Number of securities in a continuous loss position | Securities | 9 | |
Fixed maturity securities | U.S. corporate | Energy | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 106 | $ 54 |
Less than 12 months, Gross unrealized losses | $ (13) | $ (3) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 19 | 10 |
12 months or more, Fair value | $ 33 | $ 80 |
12 months or more, Gross unrealized losses | $ (3) | $ (5) |
12 months or more, Number of securities in a continuous loss position | Securities | 4 | 10 |
Fair value | $ 139 | $ 134 |
Gross unrealized losses | $ (16) | $ (8) |
Number of securities in a continuous loss position | Securities | 23 | 20 |
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 | $ 128 | $ 0 |
Less than 12 months, Gross unrealized losses | $ (2) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 15 | 0 |
12 months or more, Fair value | $ 0 | $ 34 |
12 months or more, Gross unrealized losses | $ 0 | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 4 |
Fair value | $ 128 | $ 34 |
Gross unrealized losses | $ (2) | $ (1) |
Number of securities in a continuous loss position | Securities | 15 | 4 |
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 | $ 16 | $ 34 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 5 | 9 |
12 months or more, Fair value | $ 0 | $ 93 |
12 months or more, Gross unrealized losses | $ 0 | $ (3) |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 9 |
Fair value | $ 16 | $ 127 |
Gross unrealized losses | $ (1) | $ (4) |
Number of securities in a continuous loss position | Securities | 5 | 18 |
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 | $ 0 | |
Less than 12 months, Gross unrealized losses | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 0 | |
12 months or more, Fair value | $ 18 | |
12 months or more, Gross unrealized losses | $ (1) | |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | |
Fair value | $ 18 | |
Gross unrealized losses | $ (1) | |
Number of securities in a continuous loss position | Securities | 2 | |
Fixed maturity securities | U.S. corporate | Capital goods | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 35 | |
Less than 12 months, Gross unrealized losses | $ (1) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 8 | |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 35 | |
Gross unrealized losses | $ (1) | |
Number of securities in a continuous loss position | Securities | 8 | |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 0 | |
Less than 12 months, Gross unrealized losses | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 0 | |
12 months or more, Fair value | $ 54 | |
12 months or more, Gross unrealized losses | $ (2) | |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | |
Fair value | $ 54 | |
Gross unrealized losses | $ (2) | |
Number of securities in a continuous loss position | Securities | 6 | |
Fixed maturity securities | U.S. corporate | Transportation | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 46 | $ 0 |
Less than 12 months, Gross unrealized losses | $ (2) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 11 | 0 |
12 months or more, Fair value | $ 0 | $ 23 |
12 months or more, Gross unrealized losses | $ 0 | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 2 |
Fair value | $ 46 | $ 23 |
Gross unrealized losses | $ (2) | $ (1) |
Number of securities in a continuous loss position | Securities | 11 | 2 |
Fixed maturity securities | Non-U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 145 | $ 79 |
Less than 12 months, Gross unrealized losses | $ (4) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 32 | 12 |
12 months or more, Fair value | $ 6 | $ 62 |
12 months or more, Gross unrealized losses | $ (1) | $ (4) |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | 7 |
Fair value | $ 151 | $ 141 |
Gross unrealized losses | $ (5) | $ (5) |
Number of securities in a continuous loss position | Securities | 33 | 19 |
Fixed maturity securities | Non-U.S. corporate | Energy | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 66 | |
Less than 12 months, Gross unrealized losses | $ (1) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 10 | |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 66 | |
Gross unrealized losses | $ (1) | |
Number of securities in a continuous loss position | Securities | 10 | |
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 | $ 0 | $ 0 |
Less than 12 months, Gross unrealized losses | $ 0 | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 0 | 0 |
12 months or more, Fair value | $ 6 | $ 31 |
12 months or more, Gross unrealized losses | $ (1) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | 3 |
Fair value | $ 6 | $ 31 |
Gross unrealized losses | $ (1) | $ (2) |
Number of securities in a continuous loss position | Securities | 1 | 3 |
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 | $ 31 | |
Less than 12 months, Gross unrealized losses | $ (1) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 8 | |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 31 | |
Gross unrealized losses | $ (1) | |
Number of securities in a continuous loss position | Securities | 8 | |
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 | $ 15 | |
Less than 12 months, Gross unrealized losses | $ (1) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 6 | |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 15 | |
Gross unrealized losses | $ (1) | |
Number of securities in a continuous loss position | Securities | 6 | |
Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 33 | $ 0 |
Less than 12 months, Gross unrealized losses | $ (1) | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 8 | 0 |
12 months or more, Fair value | $ 0 | $ 25 |
12 months or more, Gross unrealized losses | $ 0 | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 3 |
Fair value | $ 33 | $ 25 |
Gross unrealized losses | $ (1) | $ (1) |
Number of securities in a continuous loss position | Securities | 8 | 3 |
Fixed maturity securities | Non-U.S. corporate | Other | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 79 | |
Less than 12 months, Gross unrealized losses | $ (1) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 12 | |
12 months or more, Fair value | $ 6 | |
12 months or more, Gross unrealized losses | $ (1) | |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | |
Fair value | $ 85 | |
Gross unrealized losses | $ (2) | |
Number of securities in a continuous loss position | Securities | 13 | |
Fixed maturity securities | Corporate Debt Securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 490 | $ 202 |
Less than 12 months, Gross unrealized losses | $ (24) | $ (6) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 91 | 39 |
12 months or more, Fair value | $ 39 | $ 364 |
12 months or more, Gross unrealized losses | $ (4) | $ (17) |
12 months or more, Number of securities in a continuous loss position | Securities | 5 | 40 |
Fair value | $ 529 | $ 566 |
Gross unrealized losses | $ (28) | $ (23) |
Number of securities in a continuous loss position | Securities | 96 | 79 |
Scheduled Maturity Distribution
Scheduled Maturity Distribution of Fixed Maturity Securities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized cost or cost | ||
Due one year or less | $ 1,425 | |
Due after one year through five years | 9,863 | |
Due after five years through ten years | 13,285 | |
Due after ten years | 23,353 | |
Subtotal | 47,926 | |
Amortized cost or cost, fixed maturity securities | 55,676 | |
Fair value | ||
Due one year or less | 1,447 | |
Due after one year through five years | 10,586 | |
Due after five years through ten years | 15,177 | |
Due after ten years | 30,352 | |
Subtotal | 57,562 | |
Fair value, fixed maturity securities | 65,790 | $ 60,339 |
Residential mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 1,698 | |
Fair value | ||
Fixed maturity securities | 1,909 | |
Commercial mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 2,759 | |
Fair value | ||
Fixed maturity securities | 2,974 | |
Other asset-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,293 | |
Fair value | ||
Fixed maturity securities | $ 3,345 |
Distribution Across Property Ty
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 6,774 | $ 6,976 |
Unamortized balance of loan origination fees and costs | $ 0 | $ (4) |
% of total | 100.00% | 100.00% |
Allowance for credit losses | $ (31) | $ (13) |
Commercial mortgage loans, net | 6,743 | 6,963 |
Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 6,774 | 6,980 |
Unamortized balance of loan origination fees and costs | $ 0 | $ (4) |
% of total | 100.00% | 100.00% |
Allowance for credit losses | $ (31) | $ (13) |
Commercial mortgage loans, net | 6,743 | 6,963 |
South Atlantic | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,711 | $ 1,715 |
% of total | 25.00% | 25.00% |
Pacific | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,510 | $ 1,673 |
% of total | 22.00% | 24.00% |
Middle Atlantic | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 994 | $ 992 |
% of total | 15.00% | 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, amortized cost | $ 781 | $ 753 |
% of total | 12.00% | 11.00% |
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, amortized cost | $ 467 | $ 488 |
% 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, amortized cost | $ 441 | $ 455 |
% 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, amortized cost | $ 423 | $ 433 |
% of total | 6.00% | 6.00% |
New England | Commercial Mortgage Loan | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 260 | $ 257 |
% of total | 4.00% | 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, amortized cost | $ 187 | $ 214 |
% 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, amortized cost | $ 2,442 | $ 2,590 |
% of total | 36.00% | 37.00% |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,638 | $ 1,670 |
% of total | 24.00% | 24.00% |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,567 | $ 1,632 |
% of total | 23.00% | 23.00% |
Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 529 | $ 541 |
% of total | 8.00% | 8.00% |
Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 286 | $ 281 |
% of total | 4.00% | 4.00% |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 312 | $ 266 |
% of total | 5.00% | 4.00% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | $ 13 | ||
Ending balance | 31 | $ 13 | |
Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 13 | 9 | $ 9 |
Cumulative effect of change in accounting | 16 | 0 | 0 |
Provision | 2 | 4 | 0 |
Write-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending balance | $ 31 | $ 13 | $ 9 |
Commercial Mortgage Loans By Ye
Commercial Mortgage Loans By Year of Origination and Credit Quality Indicator (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,774 | $ 6,976 |
Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 6,774 | 6,980 |
0% - 50% | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2,645 | 2,694 |
0% - 50% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2,645 | |
51% - 60% | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,628 | 1,545 |
51% - 60% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,628 | |
61% - 75% | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2,396 | 2,741 |
61% - 75% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2,396 | |
76% - 100% | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 103 | 0 |
76% - 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 103 | |
Greater than 100% | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2 | 0 |
Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2 | |
Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 216 | 190 |
1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 526 | 476 |
1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 992 | 1,280 |
1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2,590 | 2,870 |
Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2,450 | $ 2,164 |
2020 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 541 | |
2020 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 60 | |
2020 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 50 | |
2020 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 431 | |
2020 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2020 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2020 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 3 | |
2020 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 58 | |
2020 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 80 | |
2020 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 279 | |
2020 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 121 | |
2019 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 783 | |
2019 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 24 | |
2019 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 89 | |
2019 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 647 | |
2019 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 23 | |
2019 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2019 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 8 | |
2019 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 68 | |
2019 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 241 | |
2019 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 294 | |
2019 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 172 | |
2018 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 965 | |
2018 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 78 | |
2018 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 321 | |
2018 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 530 | |
2018 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 36 | |
2018 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2018 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 27 | |
2018 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 54 | |
2018 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 204 | |
2018 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 446 | |
2018 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 234 | |
2017 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 723 | |
2017 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 154 | |
2017 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 299 | |
2017 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 270 | |
2017 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2017 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2017 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 10 | |
2017 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 42 | |
2017 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 60 | |
2017 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 342 | |
2017 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 269 | |
2016 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 474 | |
2016 | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 147 | |
2016 | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 164 | |
2016 | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 152 | |
2016 | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 11 | |
2016 | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2016 | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | |
2016 | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 25 | |
2016 | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 74 | |
2016 | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 252 | |
2016 | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 123 | |
2015 and prior | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 3,288 | |
2015 and prior | 0% - 50% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2,182 | |
2015 and prior | 51% - 60% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 705 | |
2015 and prior | 61% - 75% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 366 | |
2015 and prior | 76% - 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 33 | |
2015 and prior | Greater than 100% | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 2 | |
2015 and prior | Less than 1.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 168 | |
2015 and prior | 1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 279 | |
2015 and prior | 1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 333 | |
2015 and prior | 1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 977 | |
2015 and prior | Greater than 2.00 | Fixed Rate Commercial Mortgage Loans [Member] | ||
Disclosure Of Commercial Mortgage Loans By Year Of Origination And Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,531 |
Loan-to-Value of Commercial Mor
Loan-to-Value of Commercial Mortgage Loans by Property Type (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 6,774 | $ 6,976 |
Commercial mortgage loans, amortized cost | $ 6,774 | $ 6,980 |
% of total | 100.00% | 100.00% |
Weighted-average debt service coverage ratio | 1.97 | 1.90 |
Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 2,442 | $ 2,590 |
% of total | 36.00% | 37.00% |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,638 | $ 1,670 |
% of total | 24.00% | 24.00% |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,567 | $ 1,632 |
% of total | 23.00% | 23.00% |
Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 529 | $ 541 |
% of total | 8.00% | 8.00% |
Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 286 | $ 281 |
% of total | 4.00% | 4.00% |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 312 | $ 266 |
% of total | 5.00% | 4.00% |
0% - 50% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 2,645 | $ 2,694 |
% of total | 39.00% | 39.00% |
Weighted-average debt service coverage ratio | 2.40 | 2.32 |
0% - 50% | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 913 | $ 986 |
0% - 50% | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 798 | 808 |
0% - 50% | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 523 | 529 |
0% - 50% | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 199 | 211 |
0% - 50% | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 112 | 104 |
0% - 50% | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 100 | 56 |
51% - 60% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 1,628 | $ 1,545 |
% of total | 24.00% | 22.00% |
Weighted-average debt service coverage ratio | 1.83 | 1.81 |
51% - 60% | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 639 | $ 579 |
51% - 60% | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 351 | 337 |
51% - 60% | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 431 | 380 |
51% - 60% | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 86 | 110 |
51% - 60% | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 47 | 70 |
51% - 60% | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 74 | 69 |
61% - 75% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 2,396 | $ 2,741 |
% of total | 35.00% | 39.00% |
Weighted-average debt service coverage ratio | 1.61 | 1.55 |
61% - 75% | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 859 | $ 1,025 |
61% - 75% | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 456 | 525 |
61% - 75% | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 595 | 723 |
61% - 75% | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 238 | 220 |
61% - 75% | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 127 | 107 |
61% - 75% | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 121 | 141 |
76% - 100% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 103 | $ 0 |
% of total | 2.00% | 0.00% |
Weighted-average debt service coverage ratio | 1.49 | 0 |
76% - 100% | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 29 | $ 0 |
76% - 100% | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 33 | 0 |
76% - 100% | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 18 | 0 |
76% - 100% | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 6 | 0 |
76% - 100% | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
76% - 100% | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 17 | 0 |
Greater than 100% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 2 | $ 0 |
% of total | 0.00% | 0.00% |
Weighted-average debt service coverage ratio | 0.64 | 0 |
Greater than 100% | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 2 | $ 0 |
Greater than 100% | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Greater than 100% | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Greater than 100% | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Greater than 100% | Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | 0 | 0 |
Greater than 100% | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, amortized cost | $ 0 | $ 0 |
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, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,774 | $ 6,976 |
% 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 | $ 6,774 | $ 6,980 |
% of total | 100.00% | 100.00% |
Weighted-average loan-to-value | 53.00% | 54.00% |
Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,442 | $ 2,590 |
% of total | 36.00% | 37.00% |
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 | $ 2,442 | $ 2,590 |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,638 | $ 1,670 |
% of total | 24.00% | 24.00% |
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 | $ 1,638 | $ 1,670 |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,567 | $ 1,632 |
% of total | 23.00% | 23.00% |
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 | $ 1,567 | $ 1,632 |
Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 529 | $ 541 |
% of total | 8.00% | 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 | $ 529 | $ 541 |
Mixed Use | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 286 | $ 281 |
% of total | 4.00% | 4.00% |
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 | $ 286 | $ 281 |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 312 | $ 266 |
% of total | 5.00% | 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 | $ 312 | $ 266 |
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 | $ 216 | $ 190 |
% of total | 3.00% | 3.00% |
Weighted-average loan-to-value | 57.00% | 59.00% |
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 | $ 55 | $ 68 |
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 | 21 | 24 |
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 | 101 | 44 |
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 | 9 | 16 |
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 | 5 | 4 |
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 | 25 | 34 |
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 | $ 526 | $ 476 |
% of total | 8.00% | 7.00% |
Weighted-average loan-to-value | 62.00% | 61.00% |
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 | $ 169 | $ 141 |
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 | 85 | 51 |
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 | 99 | 89 |
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 | 32 |
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 | 24 | 16 |
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 | 125 | 147 |
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 | $ 992 | $ 1,280 |
% of total | 15.00% | 18.00% |
Weighted-average loan-to-value | 62.00% | 63.00% |
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 | $ 483 | $ 596 |
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 | 143 | 221 |
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 | 170 | 277 |
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 | 126 | 129 |
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 | 29 | 37 |
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 | 41 | 20 |
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 | $ 2,590 | $ 2,870 |
% of total | 38.00% | 41.00% |
Weighted-average loan-to-value | 57.00% | 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 | $ 969 | $ 1,148 |
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 | 616 | 658 |
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 | 634 | 751 |
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 | 228 | 175 |
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 | 115 | 107 |
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 | 28 | 31 |
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 | $ 2,450 | $ 2,164 |
% of total | 36.00% | 31.00% |
Weighted-average loan-to-value | 44.00% | 41.00% |
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 | $ 766 | $ 637 |
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 | 773 | 716 |
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 | 563 | 471 |
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 | 142 | 189 |
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 | 113 | 117 |
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 | $ 93 | $ 34 |
Schedule of Positions in Deriva
Schedule of Positions in Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Derivative assets, fair value | $ 613 | $ 310 | |
Derivative liabilities, fair value | 830 | 805 | |
Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 804 | 794 | |
Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 26 | 11 | |
Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 587 | 290 | |
Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 23 | 10 | |
Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 468 | 197 | |
Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 2 | ||
Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 1 | 4 | |
Equity index options | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 63 | 81 | |
Other foreign currency contracts | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 1 | 1 | |
Other foreign currency contracts | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 55 | 8 | |
GMWB embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [1] | 379 | 323 |
GMWB embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | [2] | 26 | 20 |
Fixed index annuity embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 399 | 452 | |
Indexed universal life embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 26 | 19 | |
Designated As Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 469 | 201 | |
Derivative liabilities, fair value | 25 | 10 | |
Designated As Hedging Instrument | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 469 | 201 | |
Derivative liabilities, fair value | 25 | 10 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 23 | 10 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 468 | 197 | |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 2 | 0 | |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 1 | 4 | |
Derivatives not designated as hedges | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 144 | 109 | |
Derivative liabilities, fair value | 805 | 795 | |
Derivatives not designated as hedges | Equity index options | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Derivatives not designated as hedges | Equity index options | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 63 | 81 | |
Derivatives not designated as hedges | Financial futures | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Derivatives not designated as hedges | Financial futures | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 1 | 1 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 55 | 8 | |
Derivatives not designated as hedges | GMWB embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 379 | 323 | |
Derivatives not designated as hedges | GMWB embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 26 | 20 | |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 399 | 452 | |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Other assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 26 | 19 | |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | $ 0 | $ 0 | |
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. | ||
[2] | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Activity Associated with Deriva
Activity Associated with Derivative Instruments (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)Policies | |
Derivative [Line Items] | |
Notional amount, beginning balance | $ 18,013 |
Additions | 16,510 |
Maturities/ terminations | (16,669) |
Notional amount, ending balance | 17,854 |
Designated As Hedging Instrument | |
Derivative [Line Items] | |
Notional amount, beginning balance | 9,078 |
Additions | 1,861 |
Maturities/ terminations | (2,634) |
Notional amount, ending balance | 8,305 |
Designated As Hedging Instrument | Cash Flow Hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 9,078 |
Additions | 1,861 |
Maturities/ terminations | (2,634) |
Notional amount, ending balance | 8,305 |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 8,968 |
Additions | 1,844 |
Maturities/ terminations | (2,634) |
Notional amount, ending balance | 8,178 |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 110 |
Additions | 17 |
Maturities/ terminations | 0 |
Notional amount, ending balance | 127 |
Derivatives not designated as hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 8,935 |
Additions | 14,649 |
Maturities/ terminations | (14,035) |
Notional amount, ending balance | 9,549 |
Derivatives not designated as hedges | Interest rate swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 4,674 |
Additions | 0 |
Maturities/ terminations | 0 |
Notional amount, ending balance | 4,674 |
Derivatives not designated as hedges | Equity index options | |
Derivative [Line Items] | |
Notional amount, beginning balance | 2,451 |
Additions | 2,053 |
Maturities/ terminations | (2,504) |
Notional amount, ending balance | 2,000 |
Derivatives not designated as hedges | Financial futures | |
Derivative [Line Items] | |
Notional amount, beginning balance | 1,182 |
Additions | 5,516 |
Maturities/ terminations | (5,594) |
Notional amount, ending balance | 1,104 |
Derivatives not designated as hedges | Other foreign currency contracts | |
Derivative [Line Items] | |
Notional amount, beginning balance | 628 |
Additions | 7,080 |
Maturities/ terminations | (5,937) |
Notional amount, ending balance | $ 1,771 |
Derivatives not designated as hedges | GMWB embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 25,623 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (1,910) |
Notional amount, ending balance | Policies | 23,713 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 15,441 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (2,663) |
Notional amount, ending balance | Policies | 12,778 |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 884 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (42) |
Notional amount, ending balance | Policies | 842 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in OCI | $ 439 | $ 418 | $ (241) |
Gain (loss) reclassified into net income from OCI | 208 | 170 | 162 |
Gain (loss) recognized in net income (loss) | 0 | 2 | 0 |
Interest Rate Swaps Hedging Assets | Net Investment Income | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in OCI | 482 | 456 | (261) |
Gain (loss) reclassified into net income from OCI | 196 | 164 | 153 |
Interest Rate Swaps Hedging Assets | Net Investment Gains (Losses) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in OCI | 0 | 0 | 0 |
Gain (loss) reclassified into net income from OCI | 12 | 6 | 9 |
Gain (loss) recognized in net income (loss) | 0 | 0 | 0 |
Interest Rate Swaps Hedging Liabilities | Interest Expense | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in OCI | (38) | (36) | 16 |
Gain (loss) reclassified into net income from OCI | 0 | 0 | 0 |
Interest Rate Swaps Hedging Liabilities | Net Investment Gains (Losses) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in net income (loss) | 0 | 0 | 0 |
Foreign currency swaps | Net Investment Income | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in OCI | (5) | (2) | 4 |
Gain (loss) reclassified into net income from OCI | 0 | 0 | 0 |
Gain (loss) recognized in net income (loss) | 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 from OCI | 0 | ||
Gain (loss) recognized in net income (loss) | $ 0 | $ 2 | $ 0 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments [Abstract] | ||||
Derivatives qualifying as effective accounting hedges as of January 1 | $ 2,002 | $ 1,781 | $ 2,065 | |
Cumulative effect of changes in accounting: | ||||
Stranded tax effects | 0 | 0 | 12 | |
Changes to the hedge accounting model, net of deferred taxes of $—, $—and $(1) | 0 | 0 | 2 | |
Accumulated other comprehensive income | 4,425 | 3,433 | 2,044 | $ 3,027 |
Current period increases (decreases) in fair value, net of deferred taxes of $(95), $(87) and $50 | 344 | 331 | (194) | |
Reclassification to net (income), net of deferred taxes of $73, $60 and $58 | (135) | (110) | (104) | |
Derivatives qualifying as effective accounting hedges as of December 31 | 2,211 | 2,002 | 1,781 | |
Cumulative effect of changes in accounting | ||||
Cumulative effect of changes in accounting: | ||||
Accumulated other comprehensive income | $ 131 | |||
Cumulative effect of changes in accounting | Derivatives qualifying as hedges | ||||
Cumulative effect of changes in accounting: | ||||
Accumulated other comprehensive income | $ 0 | $ 0 | $ 14 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Changes to the hedge accounting model, deferred taxes | $ 0 | $ 0 | $ (1) |
Current period increases (decreases) in fair value, deferred taxes | (95) | (87) | 50 |
Reclassification to net (income), deferred taxes | $ 73 | $ 60 | $ 58 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||||
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to future net income (loss), net of tax | $ 2,211 | $ 2,002 | $ 1,781 | $ 2,065 |
Year by which all forecasted transactions associated with qualifying cash flow hedges are expected to occur | 2057 | |||
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to net income in the next 12 months, net of tax | $ 131 | |||
Amount reclassified to net income in connection with forecasted transactions that were no longer considered probable of occurring | $ 15 | $ 5 | $ 9 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Pre-tax gain (loss) recognized in net loss | $ (29) | $ (80) | $ (31) |
Interest rate swaps | Net Investment Gains (Losses) | |||
Derivative [Line Items] | |||
Pre-tax gain (loss) recognized in net loss | (11) | (3) | 3 |
Equity index options | Net Investment Gains (Losses) | |||
Derivative [Line Items] | |||
Pre-tax gain (loss) recognized in net loss | 4 | 43 | (34) |
Financial futures | Net Investment Gains (Losses) | |||
Derivative [Line Items] | |||
Pre-tax gain (loss) recognized in net loss | 2 | (64) | 26 |
Equity return swaps | Net Investment Gains (Losses) | |||
Derivative [Line Items] | |||
Pre-tax gain (loss) recognized in net loss | 0 | 0 | (4) |
Other foreign currency contracts | Net Investment Gains (Losses) | |||
Derivative [Line Items] | |||
Pre-tax gain (loss) recognized in net loss | 38 | (8) | 4 |
GMWB embedded derivatives | Net Investment Gains (Losses) | |||
Derivative [Line Items] | |||
Pre-tax gain (loss) recognized in net loss | (28) | 38 | (54) |
Fixed index annuity embedded derivatives | Net Investment Gains (Losses) | |||
Derivative [Line Items] | |||
Pre-tax gain (loss) recognized in net loss | (51) | (90) | 15 |
Indexed universal life embedded derivatives | Net Investment Gains (Losses) | |||
Derivative [Line Items] | |||
Pre-tax gain (loss) recognized in net loss | $ 17 | $ 4 | $ 13 |
Additional Information about De
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Gross amounts recognized, derivatives assets | $ 613 | $ 310 | |
Gross amounts recognized, derivatives liabilities | 830 | 805 | |
Subject to enforceable master netting arrangement | |||
Derivative [Line Items] | |||
Gross amounts recognized, net derivatives | 561 | 280 | |
Gross amounts offset in the balance sheet, net derivatives | 0 | 0 | |
Net amounts presented in the balance sheet, net derivatives | 561 | 280 | |
Gross amounts not offset in the balance sheet, financial instruments, net derivatives | [1] | 0 | 0 |
Collateral received | (408) | (179) | |
Collateral pledged | 505 | 405 | |
Over collateralization, net derivatives | (497) | (383) | |
Net amount | 161 | 123 | |
Subject to enforceable master netting arrangement | Derivative assets | |||
Derivative [Line Items] | |||
Gross amounts recognized, derivatives assets | [2] | 587 | 291 |
Gross amounts offset in the balance sheet, derivatives assets | [2] | 0 | 0 |
Net amounts presented in the balance sheet, derivatives assets | [2] | 587 | 291 |
Gross amounts not offset in the balance sheet, financial instruments, derivatives assets | [1],[2] | (20) | (7) |
Collateral received | [2] | (408) | (179) |
Collateral pledged | [2] | 0 | 0 |
Over collateralization, derivatives assets | [2] | 2 | 18 |
Net amount, derivatives assets | [2] | 161 | 123 |
Subject to enforceable master netting arrangement | Derivative liabilities | |||
Derivative [Line Items] | |||
Gross amounts recognized, derivatives liabilities | [2] | 26 | 11 |
Gross amounts offset in the balance sheet, derivatives liabilities | [2] | 0 | 0 |
Net amounts presented in the balance sheet, derivatives liabilities | [2] | 26 | 11 |
Gross amounts not offset in the balance sheet, financial instruments, derivative liabilities | [1],[2] | (20) | (7) |
Collateral received | [2] | 0 | 0 |
Collateral pledged | [2] | (505) | (405) |
Over collateralization, derivatives liabilities | [2] | 499 | 401 |
Net amount, derivatives liabilities | [2] | $ 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 $1 million of accruals on derivatives classified as other assets as of December 31, 2019 and does not include amounts related to embedded derivatives as of December 31, 2020 and 2019. |
Additional Information about _2
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Parenthetical) (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Other assets | Derivative assets | |
Derivative [Line Items] | |
Net amounts presented in the balance sheet, accruals on derivative assets | $ 1 |
Activity Impacting Deferred Acq
Activity Impacting Deferred Acquisition Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Policy Acquisition Costs [Line Items] | |||
Unamortized beginning balance | $ 3,280 | $ 3,630 | $ 3,868 |
Impact of foreign currency translation | 4 | 0 | (4) |
Costs deferred | 15 | 27 | 42 |
Amortization, net of interest accretion | (448) | (377) | (276) |
Unamortized ending balance | 2,851 | 3,280 | 3,630 |
Accumulated effect of net unrealized investment (gains) losses | (1,322) | (1,444) | (488) |
Ending balance | $ 1,529 | $ 1,836 | $ 3,142 |
Deferred Acquisition Costs - Ad
Deferred Acquisition Costs - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Policy Acquisition Costs [Line Items] | |||
Deferred Policy acquisition costs amortization | $ 448 | $ 377 | $ 276 |
Accumulated effect of net unrealized investment gains (losses) | 1,322 | 1,444 | 488 |
Universal and term universal life insurance contracts | Unlocking | |||
Deferred Policy Acquisition Costs [Line Items] | |||
Deferred Policy acquisition costs amortization | 48 | 58 | |
Deferred policy acquisition costs, impairment loss | 63 | ||
Shadow accounting adjustment | Long-term Care Insurance | |||
Deferred Policy Acquisition Costs [Line Items] | |||
Accumulated effect of net unrealized investment gains (losses) | 1,000 | 1,100 | |
Shadow accounting adjustment | |||
Deferred Policy Acquisition Costs [Line Items] | |||
Accumulated effect of net unrealized investment gains (losses) | $ 1,300 | $ 1,400 | $ 500 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 3,000 | $ 2,979 |
Accumulated amortization | (2,800) | (2,783) |
Present Value Of Future Profits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 2,065 | 2,066 |
Accumulated amortization | (1,992) | (1,992) |
Capitalized Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 464 | 487 |
Accumulated amortization | (387) | (403) |
Deferred Sales Inducements To Contractholders | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 284 | 288 |
Accumulated amortization | (274) | (258) |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 187 | 138 |
Accumulated amortization | $ (147) | $ (130) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense related to PVFP, capitalized software and other intangible assets | $ 44 | $ 64 | $ 72 |
Amortization expense related to deferred sales inducements | $ 16 | $ 15 | $ 22 |
Activity in Present Value of Fu
Activity in Present Value of Future Profits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Unamortized balance as of January 1 | $ 154 | $ 170 | $ 187 |
Interest accreted at 5.19%, 5.56% and 5.60% | 8 | 9 | 10 |
Amortization | (8) | (25) | (27) |
Unamortized balance as of December 31 | 154 | 154 | 170 |
Accumulated effect of net unrealized investment (gains) losses | (81) | (80) | (31) |
Balance as of December 31 | $ 73 | $ 74 | $ 139 |
Activity in Present Value of _2
Activity in Present Value of Future Profits (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Interest accreted percentage | 5.19% | 5.56% | 5.60% |
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, 2020 |
Finite-Lived Intangible Assets [Line Items] | |
2021 | 4.80% |
2022 | 4.30% |
2023 | 4.30% |
2024 | 4.20% |
2025 | 3.90% |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - USD ($) $ in Millions | Oct. 22, 2020 | Nov. 25, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
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 | 16,819 | $ 17,103 | |||
Reinsurance recoveries recognized as a reduction of benefits and other changes in reserves | 2,649 | 2,751 | $ 2,696 | ||
Triangle Re 2020 | Mortgage Insurance Policy [Member] | |||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Fully collaterised excess loss coverage | $ 350 | ||||
Aggregate loss retention | $ 522 | ||||
Percentage of reinsurance covered | 67.00% | ||||
Reinsurance coverage in excess of retention | $ 350 | ||||
Triangle Re 2019 | Mortgage Insurance Policy [Member] | |||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Fully collaterised excess loss coverage | $ 303 | ||||
Aggregate loss retention | $ 237 | ||||
Percentage of reinsurance covered | 95.00% | ||||
Reinsurance coverage in excess of retention | $ 713 | ||||
U.S. Life Insurance Subsidiaries | Fixed maturity securities | |||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Assets pledged as collateral | 13,188 | 11,874 | |||
U.S. Life Insurance Subsidiaries | Commercial Mortgage Loan | |||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Assets pledged as collateral | 873 | 938 | |||
Scottish Re Group Limited [Member] | |||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Reinsurance Recoverable, Past Due | $ 19 | ||||
Union Fidelity Life Insurance Company | |||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Minimum amount of risk-based capital General Electric Company agreed to maintain in UFLIC | 150.00% | ||||
Union Fidelity Life Insurance Company | Ceded Credit Risk | |||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Reinsurance recoverable | $ 13,415 | $ 13,752 |
Net Domestic Life Insurance In-
Net Domestic Life Insurance In-Force (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reinsurance [Abstract] | ||||
Direct life insurance in-force | $ 509,670 | $ 555,252 | $ 594,472 | |
Amounts assumed from other companies | 624 | 673 | 729 | |
Amounts ceded to other companies | [1] | (458,999) | (500,965) | (537,590) |
Net life insurance in-force | $ 51,295 | $ 54,960 | $ 57,611 | |
Percentage of amount assumed to net | 1.00% | 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Reinsurance [Abstract] | ||||
Direct, Written | $ 4,977 | $ 4,795 | $ 4,748 | |
Assumed, Written | 319 | 327 | 336 | |
Ceded, Written | (1,205) | (1,190) | (1,227) | |
Net premiums, Written | 4,091 | 3,932 | 3,857 | |
Direct, Earned | 4,997 | 4,906 | 4,875 | |
Assumed, Earned | 330 | 335 | 344 | |
Ceded, Earned | (1,217) | (1,204) | (1,225) | |
Net premiums, Earned | $ 4,110 | $ 4,037 | $ 3,994 | |
Percentage of amount assumed to net | 8.00% | 8.00% | 9.00% | |
Life insurance | ||||
Reinsurance [Abstract] | ||||
Direct, Written | $ 795 | $ 846 | $ 881 | |
Assumed, Written | 1 | 1 | 1 | |
Ceded, Written | (558) | (569) | (576) | |
Direct, Earned | 795 | 846 | 881 | |
Assumed, Earned | 2 | 1 | 1 | |
Ceded, Earned | (559) | (569) | (576) | |
Accident and Health Insurance Product Line | ||||
Reinsurance [Abstract] | ||||
Direct, Written | [1] | 2,836 | 2,792 | 2,775 |
Assumed, Written | [1] | 313 | 321 | 328 |
Ceded, Written | [1] | (550) | (557) | (566) |
Direct, Earned | [1] | 2,860 | 2,821 | 2,800 |
Assumed, Earned | [1] | 322 | 326 | 332 |
Ceded, Earned | [1] | (562) | (564) | (571) |
Mortgage insurance | ||||
Reinsurance [Abstract] | ||||
Direct, Written | 1,346 | 1,157 | 1,092 | |
Assumed, Written | 5 | 5 | 7 | |
Ceded, Written | (97) | (64) | (85) | |
Direct, Earned | 1,342 | 1,239 | 1,194 | |
Assumed, Earned | 6 | 8 | 11 | |
Ceded, Earned | $ (96) | $ (71) | $ (78) | |
[1] | Accident and health insurance is comprised almost entirely of our long-term care insurance products. |
Reinsurance - Schedule of Reins
Reinsurance - Schedule of Reinsurance Recoverable in Allowance for Credit Losses (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Beginning balance | $ 0 |
Cumulative effect of change in accounting | 40 |
Provision | 5 |
Write-offs | 0 |
Recoveries | 0 |
Ending balance | $ 45 |
Reinsurance - Schedule Of Credi
Reinsurance - Schedule Of Credit Ratings on Reinsurance Recoverable (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Reinsurance recoverable | $ 16,864 | $ 17,103 |
A++ | ||
Reinsurance recoverable | 519 | |
A+ | ||
Reinsurance recoverable | 2,780 | |
A | ||
Reinsurance recoverable | 64 | |
B+ | ||
Reinsurance recoverable | 1 | |
Non rated | ||
Reinsurance recoverable | 13,500 | |
Collateralized | ||
Reinsurance recoverable | 14,875 | |
Collateralized | A++ | ||
Reinsurance recoverable | 0 | |
Collateralized | A+ | ||
Reinsurance recoverable | 1,437 | |
Collateralized | A | ||
Reinsurance recoverable | 19 | |
Collateralized | B+ | ||
Reinsurance recoverable | 0 | |
Collateralized | Non rated | ||
Reinsurance recoverable | 13,419 | |
Non-collateralized | ||
Reinsurance recoverable | 1,989 | |
Non-collateralized | A++ | ||
Reinsurance recoverable | 519 | |
Non-collateralized | A+ | ||
Reinsurance recoverable | 1,343 | |
Non-collateralized | A | ||
Reinsurance recoverable | 45 | |
Non-collateralized | B+ | ||
Reinsurance recoverable | 1 | |
Non-collateralized | Non rated | ||
Reinsurance recoverable | $ 81 |
Recorded Liabilities and Major
Recorded Liabilities and Major Assumptions Underlying Future Policy Benefits (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | $ 42,695 | $ 40,384 | |
Long Term Care Insurance Contracts | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | [1] | $ 28,770 | 26,170 |
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] | $ 8,240 | 8,398 |
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] | $ 3,252 | 3,281 |
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] | $ 2,101 | 2,205 |
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] | $ 332 | $ 330 |
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% | |
[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). |
Insurance Reserves - Additional
Insurance Reserves - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance Reserves [Line Items] | |||||
Future policy benefit reserves | $ 42,695 | $ 40,384 | $ 42,695 | $ 40,384 | |
Policyholder account values | 21,503 | 22,217 | 21,503 | 22,217 | |
Shadow accounting adjustment | |||||
Insurance Reserves [Line Items] | |||||
Future policy benefit reserves | 4,500 | 2,600 | 4,500 | 2,600 | |
Immediate Fixed Annuity | Loss Recognition Testing | |||||
Insurance Reserves [Line Items] | |||||
Increase in future policy benefit reserves | 0 | 39 | $ 22 | ||
Universal and term universal life insurance contracts | Shadow accounting adjustment | |||||
Insurance Reserves [Line Items] | |||||
Policyholder account values | 1,400 | 700 | 1,400 | 700 | |
Long-term Care Insurance | Shadow accounting adjustment | |||||
Insurance Reserves [Line Items] | |||||
Future policy benefit reserves | 3,700 | 3,700 | |||
Profits Followed By Losses | Long-term Care Insurance | |||||
Insurance Reserves [Line Items] | |||||
Future policy benefit reserves | 625 | 323 | 625 | 323 | |
Long-term care insurance future policy benefit reserves present value of expected losses | $ 2,100 | $ 2,000 | $ 2,100 | $ 2,000 | |
Percentage of profits to be accrued to reserves | 76.00% | 80.00% | 76.00% | 80.00% | |
Unlocking | Universal and term universal life insurance contracts | |||||
Insurance Reserves [Line Items] | |||||
Increase (decrease) in liability for policyholder account balances | $ (118) | $ 72 | |||
Federal Home Loan Bank | |||||
Insurance Reserves [Line Items] | |||||
Federal Home Loan Bank common stock held | 42 | 43 | $ 42 | $ 43 | |
Amount of funding agreements issued to the Federal Home Loan Bank | 421 | 441 | 421 | 441 | |
Pledged assets for Federal Home Loan Bank at fair value | 1,309 | 608 | 1,309 | 608 | |
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 | 121 | 188 | 121 | 188 | |
Variable Annuity | Nontraditional Long-Duration Contracts | |||||
Insurance Reserves [Line Items] | |||||
Nontraditional long-duration contracts liability | 4,668 | 4,738 | 4,668 | 4,738 | |
Guaranteed Minimum Death Benefit | Nontraditional Long-Duration Contracts | Annuity contracts | |||||
Insurance Reserves [Line Items] | |||||
Nontraditional long-duration contracts liability | 128 | 114 | 128 | 114 | |
Guaranteed Minimum Withdrawal And Guaranteed Annuitization Benefit Contracts | |||||
Insurance Reserves [Line Items] | |||||
Guaranteed annuitization benefit contracts | $ 669 | $ 715 | $ 669 | $ 715 |
Recorded Liabilities for Policy
Recorded Liabilities for Policyholder Account Balances (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Insurance Reserves [Line Items] | ||
Policyholder account balances | $ 21,503 | $ 22,217 |
Investment contracts | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 10,276 | 11,466 |
Investment contracts | Annuity contracts | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 8,273 | 9,375 |
Investment contracts | Funding agreements | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 300 | 253 |
Investment contracts | Structured settlements without life contingencies | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 1,114 | 1,219 |
Investment contracts | Supplementary contracts without life contingencies | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 576 | 606 |
Investment contracts | Other | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 13 | 13 |
Universal and term universal life insurance contract | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | $ 11,227 | $ 10,751 |
Information about Variable Annu
Information about Variable Annuity Products with Death and Living Benefit Guarantees (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Guaranteed minimum standard death benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Death benefits account value | $ 2,611 | $ 2,008 |
Net amount at risk | $ 2 | $ 2 |
Average attained age of contractholders | 76 years | 76 years |
Guaranteed minimum enhanced death benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Death benefits account value | $ 1,350 | $ 1,986 |
Net amount at risk | $ 105 | $ 115 |
Average attained age of contractholders | 76 years | 75 years |
Guaranteed minimum living benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Death benefits account value | $ 1,999 | $ 2,106 |
Guaranteed annuitization benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Death benefits account value | $ 998 | $ 1,030 |
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, 2020 | Dec. 31, 2019 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | $ 3,879 | $ 3,994 |
Balanced funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | 2,343 | 2,446 |
Equity funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | 1,016 | 1,079 |
Bond funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | 304 | 385 |
Money market funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | $ 216 | $ 84 |
Liability for Policy and Cont_3
Liability for Policy and Contract Claims (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Total liability for policy and contract claims | $ 11,817 | $ 10,958 | |||
Long-term Care Insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Total liability for policy and contract claims | 10,518 | 10,239 | $ 9,516 | $ 8,548 | |
Liability for policy and contract claims, net of reinsurance | 8,258 | 7,956 | $ 7,254 | $ 6,256 | |
U.S. Mortgage Insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Total liability for policy and contract claims | [1] | 555 | |||
Australia Mortgage Insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Total liability for policy and contract claims | [1],[2] | 331 | |||
Insurance lines other than short-duration contracts | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Total liability for policy and contract claims | 10,920 | 10,509 | |||
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 | 10,518 | 10,239 | |||
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 | 378 | 248 | |||
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 | 12 | 13 | |||
Insurance lines other than short-duration contracts | Runoff | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Total liability for policy and contract claims | 12 | 9 | |||
Short-duration contracts | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Liability for policy and contract claims, net of reinsurance | 897 | 449 | |||
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 | 555 | 233 | |||
Short-duration contracts | Australia Mortgage Insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Liability for policy and contract claims, net of reinsurance | 331 | 208 | |||
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 | $ 11 | $ 8 | |||
[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, 2020. |
Changes in Liability for Policy
Changes in Liability for Policy and Contract Claims (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Beginning balance | $ 10,958 | |||
Ending balance | $ 11,817 | 11,817 | $ 10,958 | |
Long-term Care Insurance | ||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Beginning balance | 10,239 | 9,516 | $ 8,548 | |
Less reinsurance recoverables | (2,283) | (2,262) | (2,292) | |
Net beginning balance | 7,956 | 7,254 | 6,256 | |
Current year | 91 | 2,595 | 2,717 | 2,548 |
Prior years | 101 | (398) | (219) | 130 |
Total incurred | 2,197 | 2,498 | 2,678 | |
Current year | (189) | (205) | (201) | |
Prior years | (2,118) | (1,975) | (1,814) | |
Total paid | (2,307) | (2,180) | (2,015) | |
Interest on liability for policy and contract claims | 412 | 384 | 335 | |
Net ending balance | 8,258 | 8,258 | 7,956 | 7,254 |
Add reinsurance recoverables | 2,260 | 2,260 | 2,283 | 2,262 |
Ending balance | $ 10,518 | $ 10,518 | $ 10,239 | $ 9,516 |
Liability for Policy and Cont_4
Liability for Policy and Contract Claims - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Long-term Care Insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Increase (Decrease) in claim reserves | $ 279 | $ 723 | $ 968 | ||
Incurred related to insured events of prior year | $ 101 | (398) | $ (219) | 130 | |
Increase (decrease) in reserves for liability for policy and contract claims | 47 | 108 | |||
Additional increase (decrease) in reserves for liability for policy and contract claims | 91 | ||||
Long-term Care Insurance | Changes in Assumptions and Methodologies | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Increase (Decrease) in claim reserves | $ (38) | $ 308 | |||
Increase in reinsurance recoverable | $ 17 | ||||
Incurred related to insured events of prior year | 231 | ||||
Increase in reinsurance recoverable related to insured events of prior year | $ 18 | ||||
U.S. Mortgage Insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Increase (decrease) in reserves for liability for policy and contract claims | 322 | ||||
Policy Contract | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Increase (decrease) in reserves for liability for policy and contract claims | 65 | ||||
Additional increase (decrease) in reserves for liability for policy and contract claims | $ 279 |
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, 2020USD ($)Claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | |
U.S. Mortgage Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 3,227 | |||||||||
U.S. Mortgage Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | 939 | $ 938 | $ 939 | $ 939 | $ 939 | $ 938 | $ 929 | $ 913 | $ 931 | $ 910 |
Total of IBNR liabilities including expected development on reported claims | [1] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [2] | 69,314 | |||||||||
U.S. Mortgage Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 666 | 666 | 667 | 668 | 671 | 673 | 671 | 675 | 718 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [2] | 48,575 | |||||||||
U.S. Mortgage Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 381 | 381 | 382 | 384 | 387 | 392 | 407 | 475 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [2] | 34,412 | |||||||||
U.S. Mortgage Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 259 | 258 | 259 | 261 | 269 | 288 | 328 | 0 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [2] | 26,726 | |||||||||
U.S. Mortgage Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 180 | 180 | 181 | 187 | 208 | 235 | 0 | 0 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [2] | 21,724 | |||||||||
U.S. Mortgage Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 137 | 136 | 138 | 160 | 198 | 0 | 0 | 0 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1] | $ 1 | |||||||||
Number of reported delinquencies | Claim | [2] | 19,158 | |||||||||
U.S. Mortgage Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 105 | 102 | 121 | 171 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1] | $ 1 | |||||||||
Number of reported delinquencies | Claim | [2] | 19,497 | |||||||||
U.S. Mortgage Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 84 | 84 | 117 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1] | $ 1 | |||||||||
Number of reported delinquencies | Claim | [2] | 14,779 | |||||||||
U.S. Mortgage Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 111 | 106 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1] | $ 1 | |||||||||
Number of reported delinquencies | Claim | [2] | 15,710 | |||||||||
U.S. Mortgage Insurance | Accident Year 2020 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 365 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1] | $ 19 | |||||||||
Number of reported delinquencies | Claim | [2] | 38,863 | |||||||||
Australia Mortgage Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 993 | |||||||||
Australia Mortgage Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | 128 | 120 | 120 | 120 | 121 | 123 | 125 | 130 | 133 | 70 |
Total of IBNR liabilities including expected development on reported claims | [1],[3] | $ 3 | |||||||||
Number of reported delinquencies | Claim | [3],[4] | 2,574 | |||||||||
Australia Mortgage Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 93 | 86 | 86 | 86 | 86 | 89 | 93 | 105 | 66 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1],[3] | $ 2 | |||||||||
Number of reported delinquencies | Claim | [3],[4] | 2,102 | |||||||||
Australia Mortgage Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 70 | 61 | 61 | 60 | 64 | 70 | 81 | 62 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1],[3] | $ 3 | |||||||||
Number of reported delinquencies | Claim | [3],[4] | 1,781 | |||||||||
Australia Mortgage Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 75 | 63 | 63 | 65 | 70 | 82 | 59 | 0 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1],[3] | $ 5 | |||||||||
Number of reported delinquencies | Claim | [3],[4] | 1,713 | |||||||||
Australia Mortgage Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 103 | 83 | 84 | 87 | 104 | 69 | 0 | 0 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1],[3] | $ 6 | |||||||||
Number of reported delinquencies | Claim | [3],[4] | 1,787 | |||||||||
Australia Mortgage Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 129 | 108 | 114 | 127 | 95 | 0 | 0 | 0 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1],[3] | $ 13 | |||||||||
Number of reported delinquencies | Claim | [3],[4] | 2,080 | |||||||||
Australia Mortgage Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 114 | 105 | 123 | 90 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1],[3] | $ 12 | |||||||||
Number of reported delinquencies | Claim | [3],[4] | 1,821 | |||||||||
Australia Mortgage Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 107 | 107 | 87 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1],[3] | $ 17 | |||||||||
Number of reported delinquencies | Claim | [3],[4] | 1,903 | |||||||||
Australia Mortgage Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 93 | 106 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of IBNR liabilities including expected development on reported claims | [1],[3] | $ 47 | |||||||||
Number of reported delinquencies | Claim | [3],[4] | 2,298 | |||||||||
Australia Mortgage Insurance | Accident Year 2020 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 81 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Total of IBNR liabilities including expected development on reported claims | [1],[3] | $ 49 | |||||||||
Number of reported delinquencies | Claim | [3],[4] | 1,392 | |||||||||
[1] | Represents the year in which first monthly mortgage payments have been missed by the borrower. | ||||||||||
[2] | Represents reported and outstanding delinquencies less actual cures as of December 31 for each respective accident year. | ||||||||||
[3] | Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2020. | ||||||||||
[4] | Represents outstanding delinquencies plus paid claims as of December 31, 2020 for each respective accident year. |
Paid Claims Development, Net of
Paid Claims Development, Net of Reinsurance (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 12, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Claims Development [Line Items] | ||||||||||||
Liability for policy and contract claims | $ 11,817 | $ 10,958 | ||||||||||
U.S. Mortgage Insurance | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1] | 3,227 | ||||||||||
Total paid | [1] | 2,688 | ||||||||||
All outstanding liabilities before 2011 | [1] | 16 | ||||||||||
Liability for policy and contract claims | [1] | 555 | ||||||||||
U.S. Mortgage Insurance | Accident Year 2011 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1] | 939 | 938 | $ 939 | $ 939 | $ 939 | $ 938 | $ 929 | $ 913 | $ 931 | $ 910 | |
Total paid | [1] | 939 | 937 | 935 | 927 | 906 | 874 | 816 | 722 | 497 | 65 | |
U.S. Mortgage Insurance | Accident Year 2012 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1] | 666 | 666 | 667 | 668 | 671 | 673 | 671 | 675 | 718 | 0 | |
Total paid | [1] | 663 | 662 | 658 | 650 | 634 | 602 | 532 | 391 | 92 | 0 | |
U.S. Mortgage Insurance | Accident Year 2013 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1] | 381 | 381 | 382 | 384 | 387 | 392 | 407 | 475 | 0 | 0 | |
Total paid | [1] | 376 | 375 | 372 | 362 | 340 | 297 | 202 | 44 | 0 | 0 | |
U.S. Mortgage Insurance | Accident Year 2014 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1] | 259 | 258 | 259 | 261 | 269 | 288 | 328 | 0 | 0 | 0 | |
Total paid | [1] | 254 | 253 | 247 | 233 | 195 | 127 | 22 | 0 | 0 | 0 | |
U.S. Mortgage Insurance | Accident Year 2015 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1] | 180 | 180 | 181 | 187 | 208 | 235 | 0 | 0 | 0 | 0 | |
Total paid | [1] | 175 | 173 | 167 | 145 | 85 | 12 | 0 | 0 | 0 | 0 | |
U.S. Mortgage Insurance | Accident Year 2016 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1] | 137 | 136 | 138 | 160 | 198 | 0 | 0 | 0 | 0 | 0 | |
Total paid | [1] | 127 | 124 | 110 | 64 | 10 | 0 | 0 | 0 | 0 | 0 | |
U.S. Mortgage Insurance | Accident Year 2017 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1] | 105 | 102 | 121 | 171 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total paid | [1] | 87 | 77 | 46 | 6 | 0 | 0 | 0 | 0 | 0 | 0 | |
U.S. Mortgage Insurance | Accident Year 2018 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1] | 84 | 84 | 117 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total paid | [1] | 48 | 32 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
U.S. Mortgage Insurance | Accident Year 2019 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1] | 111 | 106 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total paid | [1] | 18 | 2 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
U.S. Mortgage Insurance | Accident Year 2020 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1] | 365 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total paid | [1] | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Australia Mortgage Insurance | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1],[2] | 993 | ||||||||||
Total paid | [1],[2] | 717 | ||||||||||
Other | [1],[2],[3] | 35 | ||||||||||
All outstanding liabilities before 2011 | [1],[2] | 20 | ||||||||||
Liability for policy and contract claims | [1],[2] | 331 | ||||||||||
Australia Mortgage Insurance | Accident Year 2011 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1],[2] | 128 | 120 | 120 | 120 | 121 | 123 | 125 | 130 | 133 | 70 | |
Total paid | [1],[2] | 121 | 120 | 120 | 120 | 120 | 120 | 118 | 110 | 67 | 4 | |
Australia Mortgage Insurance | Accident Year 2012 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1],[2] | 93 | 86 | 86 | 86 | 86 | 89 | 93 | 105 | 66 | 0 | |
Total paid | [1],[2] | 86 | 86 | 85 | 84 | 83 | 82 | 78 | 61 | 11 | 0 | |
Australia Mortgage Insurance | Accident Year 2013 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1],[2] | 70 | 61 | 61 | 60 | 64 | 70 | 81 | 62 | 0 | 0 | |
Total paid | [1],[2] | 62 | 60 | 60 | 59 | 57 | 51 | 35 | 9 | 0 | 0 | |
Australia Mortgage Insurance | Accident Year 2014 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1],[2] | 75 | 63 | 63 | 65 | 70 | 82 | 59 | 0 | 0 | 0 | |
Total paid | [1],[2] | 64 | 61 | 61 | 58 | 46 | 26 | 6 | 0 | 0 | 0 | |
Australia Mortgage Insurance | Accident Year 2015 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1],[2] | 103 | 83 | 84 | 87 | 104 | 69 | 0 | 0 | 0 | 0 | |
Total paid | [1],[2] | 84 | 79 | 76 | 65 | 28 | 4 | 0 | 0 | 0 | 0 | |
Australia Mortgage Insurance | Accident Year 2016 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1],[2] | 129 | 108 | 114 | 127 | 95 | 0 | 0 | 0 | 0 | 0 | |
Total paid | [1],[2] | 103 | 95 | 85 | 51 | 6 | 0 | 0 | 0 | 0 | 0 | |
Australia Mortgage Insurance | Accident Year 2017 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1],[2] | 114 | 105 | 123 | 90 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total paid | [1],[2] | 85 | 76 | 49 | 9 | 0 | 0 | 0 | 0 | 0 | 0 | |
Australia Mortgage Insurance | Accident Year 2018 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1],[2] | 107 | 107 | 87 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total paid | [1],[2] | 67 | 46 | 11 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Australia Mortgage Insurance | Accident Year 2019 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1],[2] | 93 | 106 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total paid | [1],[2] | 40 | 14 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Australia Mortgage Insurance | Accident Year 2020 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Total incurred | [1],[2] | 81 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total paid | [1],[2] | $ 5 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |
[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, 2020. | |||||||||||
[3] | Includes foreign currency translation. |
Average Payout of Incurred Clai
Average Payout of Incurred Claims by Age (Detail) | Dec. 31, 2020 |
U.S. Mortgage Insurance | |
Claims Development [Line Items] | |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year one | 6.60% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year two | 37.60% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year three | 26.80% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year four | 11.10% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year five | 4.60% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year six | 2.30% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year seven | 1.20% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year eight | 0.50% |
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 | 0.10% |
Australia Mortgage Insurance [Member] | |
Claims Development [Line Items] | |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year one | 8.40% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year two | 35.50% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year three | 25.80% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year four | 8.90% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year five | 2.90% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year six | 1.60% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year seven | 1.20% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year eight | 1.10% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year nine | 0.50% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year ten | 0.60% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
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 | $ 13 | 13 | $ 12 | |
Maximum contribution to employees savings plans | 5.00% | |||
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 | 12 | ||
Pension and Retiree Health and Life Insurance Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Costs associated with plan | 18 | 19 | $ 18 | |
Retiree Health and Life Insurance Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Liability related to benefit plan | 77 | 71 | ||
Change in other comprehensive income, (increase) reduction | $ 6 | 5 | ||
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 | $ 69 | 58 | ||
Change in other comprehensive income, (increase) reduction | $ 8 | $ 4 |
Borrowings and Other Financin_3
Borrowings and Other Financings - Long Term Borrowings (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total | $ 3,548 | $ 3,277 |
Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 2,693 | 3,174 |
Bond consent fees | (19) | (25) |
Deferred borrowing charges | (9) | (12) |
Total | 2,665 | 3,137 |
Genworth Holdings | 7.70% Senior Notes, Due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 0 | 397 |
Genworth Holdings | 7.20% Senior Notes, Due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 338 | 382 |
Genworth Holdings | 7.625% Senior Notes, Due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 660 | 701 |
Genworth Holdings | 4.90% Senior Notes, Due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 400 | 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 | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 598 | 598 |
Genworth Mortgage Holdings, Inc. | ||
Debt Instrument [Line Items] | ||
Deferred borrowing charges | (12) | 0 |
Total | 738 | 0 |
Genworth Mortgage Holdings, Inc. | 6.50% Senior Notes, Due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 750 | 0 |
Genworth Financial Mortgage Insurance Pty Limited | ||
Debt Instrument [Line Items] | ||
Deferred borrowing charges | (1) | 0 |
Total | 145 | 140 |
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Subordinated Notes, due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 0 | 140 |
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Subordinated Notes, due 2030 | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 146 | $ 0 |
Borrowings and Other Financin_4
Borrowings and Other Financings - Long Term Borrowings (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Aug. 21, 2020 | Jan. 21, 2020 | |
7.70% Senior Notes, Due 2020 | Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Interest rate | 7.70% | 7.70% | |
Debt instrument, maturity year | 2020 | ||
7.20% Senior Notes, Due 2021 | Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Interest rate | 7.20% | ||
Debt instrument, maturity year | 2021 | ||
7.625% Senior Notes, Due 2021 | Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Interest rate | 7.625% | ||
Debt instrument, maturity year | 2021 | ||
4.90% Senior Notes, Due 2023 | Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.90% | ||
Debt instrument, maturity year | 2023 | ||
4.80% Senior Notes, Due 2024 | Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.80% | ||
Debt instrument, maturity year | 2024 | ||
6.50% Senior Notes, Due 2034 | Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.50% | ||
Debt instrument, maturity year | 2034 | ||
Floating Rate Junior Subordinated Notes, due 2066 | Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity year | 2066 | ||
6.50% Senior Notes, Due 2025 | Genworth Mortgage Holdings, Inc. | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.50% | 6.50% | |
Debt instrument, maturity year | 2025 | ||
Floating Rate Junior Subordinated Notes Due 2025 | Genworth Financial Mortgage Insurance Pty Limited | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity year | 2025 | ||
Floating Rate Junior Subordinated Notes, due 2030 | Genworth Financial Mortgage Insurance Pty Limited | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity year | 2030 |
Borrowings and Other Financin_5
Borrowings and Other Financings - Additional Information (Detail) $ in Millions | Feb. 16, 2021USD ($) | Oct. 06, 2020AUD ($) | Aug. 24, 2020AUD ($) | Aug. 21, 2020USD ($) | Jul. 03, 2020AUD ($) | Jan. 21, 2020USD ($) | Jan. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020AUD ($) |
Debt Instrument [Line Items] | |||||||||||
Pre-tax gain (loss) on early extinguishment of debt | $ (9,000,000) | $ 0 | $ 0 | ||||||||
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 | $ 66,000,000 | 49,000,000 | |||||||||
Securities lending activity, fair value of collateral held | 67,000,000 | 51,000,000 | |||||||||
Securities lending activity, obligation to return collateral | 67,000,000 | 51,000,000 | |||||||||
Long-term debt | 3,548,000,000 | 3,277,000,000 | |||||||||
Genworth Holdings | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Borrowing costs that were deferred | 9,000,000 | 12,000,000 | |||||||||
Debt instrument, maturity month and year | 2020-06 | ||||||||||
Pre-tax make-whole expense on redemption of senior notes | $ 9,000,000 | ||||||||||
Long-term debt | $ 2,665,000,000 | 3,137,000,000 | |||||||||
Genworth Holdings | Fixed Rate Senior Notes | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 4.80% | 4.80% | |||||||||
Senior notes option to redeem | 100.00% | ||||||||||
Genworth Holdings | Fixed Rate Senior Notes | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 7.625% | 7.625% | |||||||||
Genworth Holdings | Junior Notes, due 2066 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Issued notes, aggregate principal amount | $ 598,000,000 | ||||||||||
Debt instrument, maturity month and year | 2066-11 | ||||||||||
Debt instrument, interest rate terms | three-month 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 | ||||||||||
Debt Instrument, Call Date, Latest | Nov. 15, 2046 | ||||||||||
Genworth Holdings | 7.70% Senior Notes, Due 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 7.70% | 7.70% | 7.70% | ||||||||
Debt instrument, maturity month and year | 2020-06 | ||||||||||
Early redemption of senior notes | $ 409,000,000 | ||||||||||
Pre-tax make-whole expense on redemption of senior notes | 9,000,000 | ||||||||||
Pre-tax gain (loss) on early extinguishment of debt | 9,000,000 | ||||||||||
Debt instrument, maturity year | 2020 | ||||||||||
Early redemption of senior notes, principal amount | $ 397,000,000 | ||||||||||
Genworth Holdings | Senior Notes 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Pre-tax gain (loss) on early extinguishment of debt | $ 4,000,000 | ||||||||||
Debt instrument, maturity year | 2021 | ||||||||||
Aggregate principal amount of notes repurchased | $ 84,000,000 | ||||||||||
Genworth Holdings | AXA Promissory Note | |||||||||||
Debt Instrument [Line Items] | |||||||||||
First installment payment date | Jun. 30, 2022 | ||||||||||
Final installment payment date | 2022-09 | ||||||||||
Genworth Holdings | 7.20% Senior Notes, Due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, maturity date | Feb. 16, 2021 | ||||||||||
Interest rate | 7.20% | ||||||||||
Issued notes, aggregate principal amount | $ 338,000,000 | ||||||||||
Genworth Financial Mortgage Insurance Pty Limited | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Borrowing costs that were deferred | $ 1,000,000 | 0 | |||||||||
Long-term debt | $ 145,000,000 | 140,000,000 | |||||||||
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Subordinated Notes, due 2030 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Description of Variable Rate Basis | Swap reference rate plus a margin of 5.0% per annum | ||||||||||
Issued notes, aggregate principal amount | $ 43 | ||||||||||
Debt instrument, maturity month and year | 2030-07 | ||||||||||
Debt instrument, interest rate terms | interest rate of three-month Bank Bill Swap reference rate plus a margin of 5.0% per annum and a maturity date in July 2030. | ||||||||||
Debt instrument face amount issued in exchange | $ 147 | ||||||||||
Debt instrument, option to redeem date | Jul. 3, 2025 | ||||||||||
Long-term debt | $ 190 | ||||||||||
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Subordinated Notes Due 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, maturity month and year | 2025-07 | 2025-07 | 2025-07 | ||||||||
Aggregate principal amount of notes repurchased | $ 48 | $ 5 | |||||||||
Aggregate principal amount of notes exchanged | $ 147 | ||||||||||
Genworth Mortgage Holdings, Inc. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Borrowing costs that were deferred | $ 12,000,000 | 0 | |||||||||
Long-term debt | $ 738,000,000 | $ 0 | |||||||||
Genworth Mortgage Holdings, Inc. | 6.50% Senior Notes, due 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 6.50% | 6.50% | 6.50% | ||||||||
Issued notes, aggregate principal amount | $ 750,000,000 | ||||||||||
Debt instrument, maturity year | 2025 | ||||||||||
Long term debt terms of interest payment | Interest on the notes is payable semi-annually | ||||||||||
Long-term debt maturity date | Aug. 15, 2025 | ||||||||||
Option to redeem, price percentage of principal | 100.00% | ||||||||||
Debt instrument, option to redeem date, prior to | Feb. 15, 2025 | ||||||||||
Debt instrument, option to redeem date, on or afte | Feb. 15, 2025 | ||||||||||
First interest payment date | Feb. 15, 2021 | ||||||||||
Rivermont Life Insurance Company I | Non-Recourse Funding Obligations Due 2050 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Weighted average interest rate | 3.78% | ||||||||||
Borrowing costs that were deferred | $ 4,000,000 | ||||||||||
Pre-tax gain (loss) on early extinguishment of debt | $ 4,000,000 | ||||||||||
Debt instrument, maturity year | 2050 | 2050 | |||||||||
Non-recourse funding obligationsTotal | $ 311,000,000 | ||||||||||
Interest rate reset period, number of days | 28 days | ||||||||||
Redemption of secured debt | $ 315,000,000 |
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, 2020USD ($) |
Principal Amounts Of Long Term Debt Including Senior Notes And Non Recourse Funding By Maturity [Line Items] | |
2021 | $ 997 |
2022 | 0 |
2023 | 400 |
2024 | 400 |
2025 and thereafter | 1,796 |
Total | $ 3,593 |
Remaining Contractual Maturity
Remaining Contractual Maturity of Agreements (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | $ 67,000,000 | $ 51,000,000 |
Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 7,000,000 | |
Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 60,000,000 | 51,000,000 |
Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 1,000,000 | 1,000,000 |
Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 40,000,000 | 34,000,000 |
Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 19,000,000 | 16,000,000 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 67,000,000 | 51,000,000 |
Overnight and continuous | Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 7,000,000 | |
Overnight and continuous | Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 60,000,000 | 51,000,000 |
Overnight and continuous | Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 1,000,000 | 1,000,000 |
Overnight and continuous | Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 40,000,000 | 34,000,000 |
Overnight and continuous | Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 19,000,000 | 16,000,000 |
Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Up to 30 days | Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Up to 30 days | Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Up to 30 days | Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Up to 30 days | Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | $ 0 | $ 0 |
Components of Income before Inc
Components of Income before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | |||
Domestic | $ 953 | $ 540 | $ (57) |
Foreign | 78 | 174 | 194 |
Income from continuing operations before income taxes | $ 1,031 | $ 714 | $ 137 |
Components of Income Tax Provis
Components of Income Tax Provision (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | |||
Current federal income taxes | $ 4 | $ 6 | $ 11 |
Deferred federal income taxes | 230 | 111 | (14) |
Total federal income taxes | 234 | 117 | (3) |
Current state income taxes | 2 | 2 | 1 |
Deferred state income taxes | 2 | 5 | 0 |
Total state income taxes | 4 | 7 | 1 |
Current foreign income taxes | (4) | 48 | 30 |
Deferred foreign income taxes | 36 | 23 | 42 |
Total foreign income taxes | 32 | 71 | 72 |
Total provision for income taxes | $ 270 | $ 195 | $ 70 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||
Current income tax payable | $ 8 | $ 19 | ||
Valuation allowances | 412 | 347 | ||
NOL carryforwards | 185 | |||
Foreign tax credit carryforwards | $ 136 | 320 | ||
Net operating loss carryforwards, expiration date/(year) | 2028 | |||
Foreign tax credit carryforwards, expiration year | 2025 | |||
Net deferred tax asset | $ 107 | 425 | ||
Unrecognized tax benefits | 62 | 64 | $ 79 | $ 42 |
Unrecognized tax benefits, amount that if recognized would affect the effective rate on continuing operations | 44 | |||
Unrecognized tax benefits, interest and penalties (expense) | 1 | 1 | 1 | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities in 2020 | 44 | |||
Section 338 Election | ||||
Income Taxes [Line Items] | ||||
Maximum deferred tax assets related to Section 338 election deduction | $ 640 | |||
Percentage of tax savings associated with Section 338 deductions | 80.00% | |||
Tax Matters Agreement | ||||
Income Taxes [Line Items] | ||||
Interest expense related to tax matters agreement | $ 3 | 4 | $ 6 | |
Accretion rate for tax matters agreement | 5.72% | |||
Liability for estimated present value of tax payments to former parent | $ 41 | $ 54 |
Reconciliation of Federal Statu
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Examination [Line Items] | |||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% |
Effect of foreign operations | 1.30% | 2.20% | 15.30% |
Swaps terminated prior to the TCJA | 2.70% | 3.30% | 16.60% |
Stock-based compensation | 0.20% | 0.10% | 4.20% |
Valuation allowance | 0.00% | 0.00% | (5.40%) |
Prior year adjustments | 0.20% | 0.00% | (2.40%) |
Tax favored investments | (0.40%) | (0.60%) | (3.40%) |
Nondeductible expenses | 0.40% | 0.50% | 3.00% |
Other, net | 0.80% | 0.80% | 0.20% |
TCJA, impact from change in tax rate | 0.00% | 0.00% | 8.80% |
TCJA, impact on foreign operations | 0.00% | 0.00% | (7.10%) |
Effective rate | 26.20% | 27.30% | 50.80% |
Components Net Deferred Income
Components Net Deferred Income Tax Liability (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Taxes [Abstract] | ||
Foreign tax credit carryforwards | $ 136 | $ 320 |
Net operating loss carryforwards | 73 | 129 |
State income taxes | 386 | 336 |
Insurance reserves | 633 | 686 |
Accrued commission and general expenses | 114 | 114 |
Liabilities associated with discontinued operations | 126 | 37 |
Investments | 20 | 48 |
Other | 23 | 42 |
Gross deferred income tax assets | 1,511 | 1,712 |
Valuation allowance | (412) | (347) |
Total deferred income tax assets | 1,099 | 1,365 |
Net unrealized gains on investment securities | 601 | 396 |
Net unrealized gains on derivatives | 70 | 71 |
DAC | 171 | 275 |
PVFP and other intangibles | 10 | 21 |
Insurance reserves transition adjustment | 123 | 148 |
Other | 17 | 29 |
Total deferred income tax liabilities | 992 | 940 |
Net deferred income tax asset | $ 107 | $ 425 |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | |||
Balance as of January 1 | $ 64 | $ 79 | $ 42 |
Gross additions, current period | 0 | 0 | 2 |
Gross reductions, current period | (3) | (15) | (3) |
Gross additions, prior years | 1 | 0 | 40 |
Gross reductions, prior years | 0 | 0 | (2) |
Balance as of December 31 | $ 62 | $ 64 | $ 79 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |||
Net cash paid for taxes | $ 12 | $ 31 | $ 33 |
Cash paid for interest | $ 196 | $ 292 | $ 309 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Based Employee Compensation [Line Items] | |||||
Stock-based compensation expense | $ 40 | $ 27 | $ 35 | ||
Unrecognized stock-based compensation expense | $ 15 | $ 17 | |||
Unrecognized stock-based compensation expense, expected weighted-average period of recognition (years) | 1 year | 1 year | |||
Amounts received from option exercises | $ 1 | ||||
Tax benefit realized from the exercise of share based awards | $ 4 | $ 5 | |||
Exercised, shares subject to option | 0 | 200,000 | |||
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 | $ 1 | ||
Time Based Cash Awards | |||||
Share Based Employee Compensation [Line Items] | |||||
Average vesting period | 3 years | 3 years | 3 years | ||
Performance Based Cash Awards | |||||
Share Based Employee Compensation [Line Items] | |||||
Average vesting period | 3 years | ||||
Restricted Stock Units | |||||
Share Based Employee Compensation [Line Items] | |||||
Granted stock options, fair value | $ 3.53 | $ 3.36 | $ 3.58 | ||
Average vesting period | 3 years | 3 years | 3 years | ||
Performance Stock Units ("PSUs") | |||||
Share Based Employee Compensation [Line Items] | |||||
Stock-based compensation expense | $ 18 | $ 5 | $ 7 | ||
Granted stock options, fair value | $ 3.03 | $ 4.61 | $ 3.58 | ||
Average vesting period | 3 years | 3 years | 3 years | ||
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 | $ 39 | $ 26 | $ 35 | ||
2018 Omnibus Incentive Plan | |||||
Share Based Employee Compensation [Line Items] | |||||
Equity awards, total amount of shares authorized to be outstanding | 25,000,000 | ||||
Equity awards, amount of shares authorized to grant | 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, 2020 | Dec. 31, 2019 | |
Performance Based Cash Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 13 | 17 |
Granted, number of awards | 0 | 0 |
Performance adjustment | 1 | 1 |
Vested, number of awards | (5) | (4) |
Forfeited, number of awards | (2) | (1) |
Balance as of December 31, number of awards | 7 | 13 |
Time Based Cash Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 26 | 24 |
Granted, number of awards | 17 | 16 |
Performance adjustment | 0 | 0 |
Vested, number of awards | (11) | (12) |
Forfeited, number of awards | (2) | (2) |
Balance as of December 31, number of awards | 30 | 26 |
Rollforward of Share-Based Comp
Rollforward of Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-Based Compensation [Abstract] | ||
Beginning balance, shares subject to option | 801,000 | 1,118,000 |
Granted, shares subject to option | 0 | 0 |
Exercised, shares subject to option | 0 | (200,000) |
Expired and forfeited, shares subject to option | (800,000) | (117,000) |
Ending balance, shares subject to option | 1,000 | 801,000 |
Exercisable as of December 31, shares subject to option | 1,000 | |
Beginning balance, weighted-average exercise price | $ 14.17 | $ 11.77 |
Granted, weighted-average exercise price | 0 | 0 |
Exercised, weighted-average exercise price | 0 | 2.46 |
Expired and forfeited, weighted-average exercise price | 14.17 | 11.30 |
Ending balance, weighted-average exercise price | 12.75 | $ 14.17 |
Exercisable as of December 31, weighted-average exercise price | $ 12.75 |
Information about Stock Options
Information about Stock Options Outstanding (Detail) shares in Thousands | 12 Months Ended | |
Dec. 31, 2020$ / sharesshares | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range | $ / shares | $ 12.75 | |
Outstanding, shares | shares | 1 | |
Exercise Price Range, $ 12.75 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range | $ / shares | $ 12.75 | |
Outstanding, shares | shares | 1 | [1] |
Outstanding, average life (years) | 1 month 9 days | [1],[2] |
[1] | Shares for both options outstanding and exercisable have no aggregate intrinsic value. | |
[2] | Average contractual life remaining in years. |
Information about Stock Optio_2
Information about Stock Options Outstanding (Parenthetical) (Detail) | Dec. 31, 2020USD ($) |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Aggregate intrinsic value, total options outstanding | $ 0 |
Aggregate intrinsic value, exercisable options | $ 0 |
Stock Option Activity and Other
Stock Option Activity and Other Equity-Based Awards (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance as of January 1, number of awards | 2,675 | 2,356 | |
Granted, number of awards | 1,683 | 1,737 | |
Performance adjustment | 0 | 0 | |
Exercised, number of awards | (1,336) | (1,401) | |
Terminated, number of awards | (488) | (17) | |
Balance as of December 31, number of awards | 2,534 | 2,675 | 2,356 |
Balance as of January 1, weighted-average grant date fair value | $ 3.51 | $ 4.14 | |
Granted, weighted-average grant date fair value | 3.53 | 3.36 | $ 3.58 |
Performance adjustment, weighted-average grant date fair value | 0 | 0 | |
Exercised, weighted-average grant date fair value | 3.62 | 4.32 | |
Terminated, weighted-average grant date fair value | 3.47 | 7.38 | |
Balance as of December 31, weighted-average grant date fair value | $ 3.48 | $ 3.51 | $ 4.14 |
Performance Stock Units ("PSUs") | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance as of January 1, number of awards | 5,142 | 4,930 | |
Granted, number of awards | 2,789 | 2,852 | |
Performance adjustment | 443 | 495 | |
Exercised, number of awards | (1,994) | (3,100) | |
Terminated, number of awards | (646) | (35) | |
Balance as of December 31, number of awards | 5,734 | 5,142 | 4,930 |
Balance as of January 1, weighted-average grant date fair value | $ 4.28 | $ 3.30 | |
Granted, weighted-average grant date fair value | 3.03 | 4.61 | |
Performance adjustment, weighted-average grant date fair value | 4.01 | 2.81 | |
Exercised, weighted-average grant date fair value | 4.01 | 2.81 | |
Terminated, weighted-average grant date fair value | 3.86 | 2.81 | |
Balance as of December 31, weighted-average grant date fair value | $ 3.79 | $ 4.28 | $ 3.30 |
Deferred Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance as of January 1, number of awards | 1,515 | 1,266 | |
Granted, number of awards | 237 | 265 | |
Performance adjustment | 0 | 0 | |
Exercised, number of awards | (215) | (16) | |
Terminated, number of awards | 0 | 0 | |
Balance as of December 31, number of awards | 1,537 | 1,515 | 1,266 |
Balance as of January 1, weighted-average grant date fair value | $ 4.37 | $ 4.76 | |
Granted, weighted-average grant date fair value | 2 | 2.71 | |
Performance adjustment, weighted-average grant date fair value | 0 | 0 | |
Exercised, weighted-average grant date fair value | 4.76 | 7.45 | |
Terminated, weighted-average grant date fair value | 0 | 0 | |
Balance as of December 31, weighted-average grant date fair value | $ 3.95 | $ 4.37 | $ 4.76 |
Stock Appreciation Rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance as of January 1, number of awards | 8,151 | 8,627 | |
Granted, number of awards | 0 | 0 | |
Performance adjustment | 0 | 0 | |
Exercised, number of awards | 0 | (50) | |
Terminated, number of awards | (1,121) | (426) | |
Balance as of December 31, number of awards | 7,030 | 8,151 | 8,627 |
Balance as of January 1, weighted-average grant date fair value | $ 3.41 | $ 3.42 | |
Granted, weighted-average grant date fair value | 0 | 0 | |
Performance adjustment, weighted-average grant date fair value | 0 | 0 | |
Exercised, weighted-average grant date fair value | 0 | 1.28 | |
Terminated, weighted-average grant date fair value | 3.99 | 3.70 | |
Balance as of December 31, weighted-average grant date fair value | $ 3.32 | $ 3.41 | $ 3.42 |
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 | 1,889 | 1,827 | |
Granted, number of awards | 535 | 801 | |
Exercised, number of awards | (178) | (163) | |
Terminated, number of awards | (1,077) | (576) | |
Balance as of December 31, number of awards | 1,169 | 1,889 | 1,827 |
Restricted Stock | Genworth Australia | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance as of January 1, number of awards | 335 | 427 | |
Granted, number of awards | 153 | 285 | |
Exercised, number of awards | (322) | (348) | |
Terminated, number of awards | (8) | (29) | |
Balance as of December 31, number of awards | 158 | 335 | 427 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 65,790 | $ 60,339 |
GMWB non-performance risk impact | $ 66 | 62 |
Period end valuation | 0 | |
Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 36,114 | 32,111 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 11,914 | 10,525 |
Level 2 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 61,701 | 56,148 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 33,842 | 29,872 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 10,306 | 8,840 |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | ||
Fair Value of Financial Instruments [Line Items] | ||
Percentage of available for sale debt securities | 90.00% | |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 32,367 | |
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 | 9,604 | |
Level 2 | Fixed maturity securities | Internal models | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 1,475 | |
Level 2 | Fixed maturity securities | Internal models | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 702 | |
Level 3 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 4,089 | 4,191 |
Level 3 | Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,272 | 2,239 |
Level 3 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 1,608 | $ 1,685 |
Level 3 | Fixed maturity securities | Internal models | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 3,359 | |
Level 3 | Fixed maturity securities | Broker Quotes | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 730 |
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, 2020 | Dec. 31, 2019 | |
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 65,790 | $ 60,339 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 4,805 | 5,025 |
Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,170 | 2,747 |
Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 1,559 | 1,350 |
Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 36,114 | 32,111 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 11,914 | 10,525 |
Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 1,909 | 2,270 |
Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,974 | 3,026 |
Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,345 | 3,285 |
Level 2 | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 61,701 | 56,148 |
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 | 4,805 | 5,025 |
Level 2 | Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,104 | 2,645 |
Level 2 | Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 1,559 | 1,350 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 33,842 | 29,872 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 10,306 | 8,840 |
Level 2 | Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 1,895 | 2,243 |
Level 2 | Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,954 | 3,020 |
Level 2 | Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,236 | $ 3,153 |
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 | $ 4,805 | |
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 | $ 3,104 | |
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 | $ 1,559 | |
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 | $ 32,367 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, 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 | $ 9,604 | |
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 | $ 1,895 | |
Primary methodologies | OAS-based 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 | $ 2,954 | |
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 swap 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 | $ 3,236 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers | |
Significant inputs | Spreads to daily updated swap 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, 2020 | Dec. 31, 2019 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | $ 65,790 | $ 60,339 | ||
Available-for-sale equity securities | 476 | 239 | ||
Derivative assets, fair value | 613 | 310 | ||
Total other invested assets | 2,253 | 1,632 | ||
Separate account assets | 6,081 | 6,108 | ||
Total assets | 74,021 | 67,761 | ||
Net Asset Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | [1] | 0 | 0 | |
Available-for-sale equity securities | [1] | 0 | 0 | |
Separate account assets | [1] | 0 | 0 | |
Total assets | [1] | 835 | 503 | |
Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 587 | 290 | ||
Securities lending collateral | 67 | 51 | ||
Short-term investments | 159 | 211 | ||
Limited partnerships | 835 | 503 | ||
Total other invested assets | 1,648 | 1,055 | ||
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 | 0 | |
Securities lending collateral | [1] | 0 | 0 | |
Short-term investments | [1] | 0 | 0 | |
Limited partnerships | [1] | 835 | 503 | |
Total other invested assets | [1] | 835 | 503 | |
Interest rate swaps | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 468 | 197 | ||
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 | 0 | |
Foreign currency swaps | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 1 | 4 | ||
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 | 0 | |
Equity index options | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 63 | 81 | ||
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 | 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 | 55 | 8 | ||
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 | 0 | |
GMWB embedded derivatives | Reinsurance recoverable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [2] | 26 | 20 | |
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] | 0 | 0 | [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 | 4,805 | 5,025 | ||
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 | 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 | 3,170 | 2,747 | ||
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 | 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 | 1,559 | 1,350 | ||
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 | 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 | 36,114 | 32,111 | ||
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 | 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 | 5,212 | 4,997 | ||
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 | 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 | 2,900 | 2,699 | ||
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 | 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 | 9,148 | 7,774 | ||
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 | 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 | 6,470 | 5,701 | ||
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 | 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 | 3,827 | 3,245 | ||
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 | 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 | 1,607 | 1,396 | ||
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 | 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 | 3,001 | 2,711 | ||
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 | 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 | 2,007 | 1,760 | ||
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 | 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 | 1,502 | 1,506 | ||
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 | 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 | 440 | 322 | ||
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 | 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 | 11,914 | 10,525 | ||
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 | 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 | 983 | 829 | ||
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 | 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 | 1,398 | 1,319 | ||
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 | 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 | 2,820 | 2,319 | ||
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 | 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 | 824 | 684 | ||
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 | 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 | 1,311 | 1,138 | ||
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 | 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 | 1,129 | 988 | ||
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 | 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 | 616 | 605 | ||
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 | 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 | 396 | 397 | ||
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 | 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 | 609 | 629 | ||
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 | 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 | 1,828 | 1,617 | ||
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 | 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 | 1,909 | 2,270 | ||
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 | 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 | 2,974 | 3,026 | ||
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 | 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 | 3,345 | 3,285 | ||
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 | 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 | 276 | 62 | ||
Total other invested assets | 0 | 0 | ||
Separate account assets | 6,081 | 6,108 | ||
Total assets | 6,382 | 6,170 | ||
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 | 25 | 0 | ||
Limited partnerships | 0 | 0 | ||
Total other invested assets | 25 | 0 | ||
Level 1 | Interest rate swaps | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 0 | 0 | ||
Level 1 | Foreign currency swaps | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 0 | 0 | ||
Level 1 | Equity index options | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 0 | 0 | ||
Level 1 | 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 | 0 | 0 | ||
Level 1 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | State and Political Subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Non-U.S. government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | U.S. corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | U.S. corporate | Utilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | U.S. corporate | Energy | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | U.S. corporate | Finance and insurance | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | U.S. corporate | Technology and communications | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | U.S. corporate | Industrial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | U.S. corporate | Capital goods | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | U.S. corporate | Transportation | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | U.S. corporate | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Non-U.S. corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Non-U.S. corporate | Utilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Non-U.S. corporate | Energy | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Non-U.S. corporate | Industrial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Non-U.S. corporate | Capital goods | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Non-U.S. corporate | Transportation | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Non-U.S. corporate | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Residential mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Commercial mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 1 | Fixed maturity securities | Other asset-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 61,701 | 56,148 | ||
Available-for-sale equity securities | 149 | 126 | ||
Total other invested assets | 24 | 49 | ||
Separate account assets | 0 | 0 | ||
Total assets | 62,575 | 56,745 | ||
Level 2 | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 524 | 209 | ||
Securities lending collateral | 67 | 51 | ||
Short-term investments | 134 | 211 | ||
Limited partnerships | 0 | 0 | ||
Total other invested assets | 725 | 471 | ||
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 | 468 | 197 | ||
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 | 1 | 4 | ||
Level 2 | Equity index options | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 0 | 0 | ||
Level 2 | Other foreign currency contracts | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 55 | 8 | ||
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 | 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 | 4,805 | 5,025 | ||
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 | 3,104 | 2,645 | ||
Level 2 | Fixed maturity securities | Non-U.S. government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 1,559 | 1,350 | ||
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 | 33,842 | 29,872 | ||
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 | 4,370 | 4,132 | ||
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 | 2,772 | 2,570 | ||
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 | 8,541 | 7,202 | ||
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 | 6,361 | 5,607 | ||
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 | 3,780 | 3,195 | ||
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 | 1,567 | 1,356 | ||
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 | 2,941 | 2,609 | ||
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 | 1,857 | 1,587 | ||
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 | 1,432 | 1,428 | ||
Level 2 | Fixed maturity securities | U.S. corporate | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 221 | 186 | ||
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 | 10,306 | 8,840 | ||
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 | 631 | 455 | ||
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 | 1,153 | 1,072 | ||
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 | 2,515 | 2,085 | ||
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 | 757 | 625 | ||
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 | 1,283 | 1,110 | ||
Level 2 | Fixed maturity securities | Non-U.S. corporate | Industrial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 1,034 | 884 | ||
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 | 438 | 444 | ||
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 | 250 | 250 | ||
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 | 500 | 438 | ||
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 | 1,745 | 1,477 | ||
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 | 1,895 | 2,243 | ||
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 | 2,954 | 3,020 | ||
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 | 3,236 | 3,153 | ||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 4,089 | 4,191 | ||
Available-for-sale equity securities | 51 | 51 | ||
Total other invested assets | 354 | 383 | ||
Separate account assets | 0 | 0 | ||
Total assets | 4,229 | 4,343 | ||
Level 3 | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 63 | 81 | ||
Securities lending collateral | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Limited partnerships | 0 | 0 | ||
Total other invested assets | 63 | 81 | ||
Level 3 | Interest rate swaps | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 0 | 0 | ||
Level 3 | Foreign currency swaps | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 0 | 0 | ||
Level 3 | Equity index options | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 63 | 81 | ||
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] | 26 | 20 | |
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 | 0 | ||
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 | 66 | 102 | ||
Level 3 | Fixed maturity securities | Non-U.S. government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Level 3 | Fixed maturity securities | U.S. corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 2,272 | 2,239 | ||
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 | 842 | 865 | ||
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 | 128 | 129 | ||
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 | 607 | 572 | ||
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 | 109 | 94 | ||
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 | 47 | 50 | ||
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 | 40 | 40 | ||
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 | 60 | 102 | ||
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 | 150 | 173 | ||
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 | 70 | 78 | ||
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 | 219 | 136 | ||
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 | 1,608 | 1,685 | ||
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 | 352 | 374 | ||
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 | 245 | 247 | ||
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 | 305 | 234 | ||
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 | 67 | 59 | ||
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 | 28 | 28 | ||
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 | 95 | 104 | ||
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 | 178 | 161 | ||
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 | 146 | 147 | ||
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 | 109 | 191 | ||
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 | 83 | 140 | ||
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 | 14 | 27 | ||
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 | 20 | 6 | ||
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 | $ 109 | $ 132 | ||
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 4,343 | $ 3,982 | $ 4,078 | |
Total realized and unrealized gains (losses), Included in net income | 40 | 51 | (24) | |
Total gains (losses) included in OCI attributable to assets still held | 60 | 346 | (240) | |
Purchases | 707 | 733 | 850 | |
Sales | (41) | (73) | (66) | |
Issuances | 2 | 1 | 1 | |
Settlements | (505) | (470) | (602) | |
Transfer into Level 3 | [1] | 529 | 249 | 466 |
Transfer out of Level 3 | [1] | (906) | (476) | (481) |
Ending balance | 4,229 | 4,343 | 3,982 | |
Total gains (losses) included in net income attributable to assets still held | 16 | 23 | (12) | |
Total gains (losses) included in OCI attributable to assets still held | 76 | |||
Other invested assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 81 | 39 | 80 | |
Total realized and unrealized gains (losses), Included in net income | 4 | 43 | (34) | |
Total gains (losses) included in OCI attributable to assets still held | 0 | 0 | 0 | |
Purchases | 59 | 63 | 74 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (81) | (64) | (81) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 |
Ending balance | 63 | 81 | 39 | |
Total gains (losses) included in net income attributable to assets still held | 5 | 18 | (26) | |
Total gains (losses) included in OCI attributable to assets still held | 0 | |||
Other invested assets | Derivative assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 81 | 39 | 80 | |
Total realized and unrealized gains (losses), Included in net income | 4 | 43 | (34) | |
Total gains (losses) included in OCI attributable to assets still held | 0 | 0 | 0 | |
Purchases | 59 | 63 | 74 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (81) | (64) | (81) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 |
Ending balance | 63 | 81 | 39 | |
Total gains (losses) included in net income attributable to assets still held | 5 | 18 | (26) | |
Total gains (losses) included in OCI attributable to assets still held | 0 | |||
Other invested assets | Derivative assets | Equity index options | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 81 | 39 | 80 | |
Total realized and unrealized gains (losses), Included in net income | 4 | 43 | (34) | |
Total gains (losses) included in OCI attributable to assets still held | 0 | 0 | 0 | |
Purchases | 59 | 63 | 74 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (81) | (64) | (81) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 |
Ending balance | 63 | 81 | 39 | |
Total gains (losses) included in net income attributable to assets still held | 5 | 18 | (26) | |
Total gains (losses) included in OCI attributable to assets still held | 0 | |||
Reinsurance recoverable | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | [2] | 20 | 20 | 14 |
Total realized and unrealized gains (losses), Included in net income | [2] | 4 | (1) | 5 |
Total gains (losses) included in OCI attributable to assets still held | [2] | 0 | 0 | 0 |
Purchases | [2] | 0 | 0 | 0 |
Sales | [2] | 0 | 0 | 0 |
Issuances | [2] | 2 | 1 | 1 |
Settlements | [2] | 0 | 0 | 0 |
Transfer into Level 3 | [1],[2] | 0 | 0 | 0 |
Transfer out of Level 3 | [1],[2] | 0 | 0 | 0 |
Ending balance | [2] | 26 | 20 | 20 |
Total gains (losses) included in net income attributable to assets still held | [2] | 4 | (1) | 5 |
Total gains (losses) included in OCI attributable to assets still held | [2] | 0 | ||
Fixed maturity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 4,191 | 3,865 | 3,940 | |
Total realized and unrealized gains (losses), Included in net income | 32 | 9 | 5 | |
Total gains (losses) included in OCI attributable to assets still held | 60 | 346 | (240) | |
Purchases | 642 | 668 | 758 | |
Sales | (34) | (64) | (62) | |
Issuances | 0 | 0 | 0 | |
Settlements | (424) | (406) | (521) | |
Transfer into Level 3 | [1] | 528 | 249 | 466 |
Transfer out of Level 3 | [1] | (906) | (476) | (481) |
Ending balance | 4,089 | 4,191 | 3,865 | |
Total gains (losses) included in net income attributable to assets still held | 7 | 6 | 9 | |
Total gains (losses) included in OCI attributable to assets still held | 76 | |||
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 | 0 | 1 | ||
Total realized and unrealized gains (losses), Included in net income | 0 | |||
Total gains (losses) included in OCI attributable to assets still held | 0 | |||
Purchases | 0 | |||
Sales | 0 | |||
Issuances | 0 | |||
Settlements | (1) | |||
Transfer into Level 3 | [1] | 0 | ||
Transfer out of Level 3 | [1] | 0 | ||
Ending balance | 0 | |||
Total gains (losses) included in net income attributable to assets still held | 0 | |||
Fixed maturity securities | State and political subdivisions | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 102 | 51 | 37 | |
Total realized and unrealized gains (losses), Included in net income | 3 | 3 | 3 | |
Total gains (losses) included in OCI attributable to assets still held | (11) | 20 | 4 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (1) | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 28 | 18 |
Transfer out of Level 3 | [1] | (27) | 0 | (11) |
Ending balance | 66 | 102 | 51 | |
Total gains (losses) included in net income attributable to assets still held | 3 | 3 | 3 | |
Total gains (losses) included in OCI attributable to assets still held | (11) | |||
Fixed maturity securities | U.S. corporate | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 2,239 | 1,998 | 2,152 | |
Total realized and unrealized gains (losses), Included in net income | 15 | 1 | (1) | |
Total gains (losses) included in OCI attributable to assets still held | 37 | 175 | (160) | |
Purchases | 403 | 308 | 290 | |
Sales | (34) | (37) | (27) | |
Issuances | 0 | 0 | 0 | |
Settlements | (196) | (161) | (303) | |
Transfer into Level 3 | [1] | 274 | 129 | 165 |
Transfer out of Level 3 | [1] | (466) | (174) | (118) |
Ending balance | 2,272 | 2,239 | 1,998 | |
Total gains (losses) included in net income attributable to assets still held | 0 | (1) | 1 | |
Total gains (losses) included in OCI attributable to assets still held | 50 | |||
Fixed maturity securities | U.S. corporate | Utilities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 865 | 643 | 574 | |
Total realized and unrealized gains (losses), Included in net income | 9 | 1 | (1) | |
Total gains (losses) included in OCI attributable to assets still held | 8 | 72 | (40) | |
Purchases | 76 | 156 | 111 | |
Sales | (13) | (14) | (12) | |
Issuances | 0 | 0 | 0 | |
Settlements | (56) | (49) | (6) | |
Transfer into Level 3 | [1] | 42 | 72 | 55 |
Transfer out of Level 3 | [1] | (89) | (16) | (38) |
Ending balance | 842 | 865 | 643 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 14 | |||
Fixed maturity securities | U.S. corporate | Energy | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 129 | 121 | 147 | |
Total realized and unrealized gains (losses), Included in net income | 1 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 1 | 9 | (7) | |
Purchases | 30 | 17 | 22 | |
Sales | (21) | (5) | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (21) | (13) | (34) | |
Transfer into Level 3 | [1] | 22 | 0 | 0 |
Transfer out of Level 3 | [1] | (13) | 0 | (7) |
Ending balance | 128 | 129 | 121 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | (3) | |||
Fixed maturity securities | U.S. corporate | Finance and insurance | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 572 | 534 | 626 | |
Total realized and unrealized gains (losses), Included in net income | 2 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 16 | 51 | (77) | |
Purchases | 167 | 50 | 84 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (41) | (39) | (122) | |
Transfer into Level 3 | [1] | 0 | 35 | 49 |
Transfer out of Level 3 | [1] | (109) | (59) | (26) |
Ending balance | 607 | 572 | 534 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 1 | |
Total gains (losses) included in OCI attributable to assets still held | 19 | |||
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 94 | 73 | 81 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 4 | 5 | (3) | |
Purchases | 8 | 23 | 0 | |
Sales | 0 | (5) | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (22) | (11) | (5) | |
Transfer into Level 3 | [1] | 25 | 9 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 |
Ending balance | 109 | 94 | 73 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 4 | |||
Fixed maturity securities | U.S. corporate | Technology and communications | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 50 | 50 | 73 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 3 | 7 | (6) | |
Purchases | 82 | 0 | 20 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (1) | (1) | (60) | |
Transfer into Level 3 | [1] | 13 | 5 | 31 |
Transfer out of Level 3 | [1] | (100) | (11) | (8) |
Ending balance | 47 | 50 | 50 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 5 | |||
Fixed maturity securities | U.S. corporate | Industrial | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 40 | 39 | 39 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 0 | 1 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 |
Ending balance | 40 | 40 | 39 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 0 | |||
Fixed maturity securities | U.S. corporate | Capital goods | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 102 | 92 | 121 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 0 | 10 | (10) | |
Purchases | 0 | 0 | 33 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (8) | 0 | (45) | |
Transfer into Level 3 | [1] | 11 | 0 | 0 |
Transfer out of Level 3 | [1] | (45) | 0 | (7) |
Ending balance | 60 | 102 | 92 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 1 | |||
Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 173 | 211 | 262 | |
Total realized and unrealized gains (losses), Included in net income | 3 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 4 | 11 | (12) | |
Purchases | 15 | 0 | 17 | |
Sales | 0 | (13) | (5) | |
Issuances | 0 | 0 | 0 | |
Settlements | (36) | (18) | (19) | |
Transfer into Level 3 | [1] | 47 | 0 | 0 |
Transfer out of Level 3 | [1] | (56) | (18) | (32) |
Ending balance | 150 | 173 | 211 | |
Total gains (losses) included in net income attributable to assets still held | 0 | (1) | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 6 | |||
Fixed maturity securities | U.S. corporate | Transportation | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 78 | 57 | 60 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | (1) | 3 | (2) | |
Purchases | 0 | 39 | 3 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (4) | (10) | (4) | |
Transfer into Level 3 | [1] | 27 | 0 | 0 |
Transfer out of Level 3 | [1] | (30) | (11) | 0 |
Ending balance | 70 | 78 | 57 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 2 | |||
Fixed maturity securities | U.S. corporate | Other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 136 | 178 | 169 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 2 | 6 | (3) | |
Purchases | 25 | 23 | 0 | |
Sales | 0 | 0 | (10) | |
Issuances | 0 | 0 | 0 | |
Settlements | (7) | (20) | (8) | |
Transfer into Level 3 | [1] | 87 | 8 | 30 |
Transfer out of Level 3 | [1] | (24) | (59) | 0 |
Ending balance | 219 | 136 | 178 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 2 | |||
Fixed maturity securities | Non-U.S. corporate | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 1,685 | 1,532 | 1,416 | |
Total realized and unrealized gains (losses), Included in net income | 14 | 5 | 3 | |
Total gains (losses) included in OCI attributable to assets still held | 33 | 130 | (77) | |
Purchases | 109 | 218 | 247 | |
Sales | 0 | (25) | (19) | |
Issuances | 0 | 0 | 0 | |
Settlements | (190) | (175) | (123) | |
Transfer into Level 3 | [1] | 219 | 63 | 184 |
Transfer out of Level 3 | [1] | (262) | (63) | (99) |
Ending balance | 1,608 | 1,685 | 1,532 | |
Total gains (losses) included in net income attributable to assets still held | 4 | 4 | 5 | |
Total gains (losses) included in OCI attributable to assets still held | 36 | |||
Fixed maturity securities | Non-U.S. corporate | Utilities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 374 | 404 | 343 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 10 | 30 | (19) | |
Purchases | 13 | 30 | 52 | |
Sales | 0 | (7) | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | 0 | (67) | (20) | |
Transfer into Level 3 | [1] | 28 | 0 | 69 |
Transfer out of Level 3 | [1] | (73) | (16) | (21) |
Ending balance | 352 | 374 | 404 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 9 | |||
Fixed maturity securities | Non-U.S. corporate | Energy | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 247 | 217 | 176 | |
Total realized and unrealized gains (losses), Included in net income | 0 | (1) | 0 | |
Total gains (losses) included in OCI attributable to assets still held | (5) | 19 | (9) | |
Purchases | 7 | 46 | 53 | |
Sales | 0 | (18) | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (28) | (16) | (29) | |
Transfer into Level 3 | [1] | 24 | 0 | 26 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 |
Ending balance | 245 | 247 | 217 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | (5) | |||
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 234 | 171 | 161 | |
Total realized and unrealized gains (losses), Included in net income | 4 | 4 | 4 | |
Total gains (losses) included in OCI attributable to assets still held | 17 | 23 | (13) | |
Purchases | 15 | 7 | 6 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (10) | (16) | (2) | |
Transfer into Level 3 | [1] | 77 | 54 | 16 |
Transfer out of Level 3 | [1] | (32) | (9) | (1) |
Ending balance | 305 | 234 | 171 | |
Total gains (losses) included in net income attributable to assets still held | 4 | 4 | 4 | |
Total gains (losses) included in OCI attributable to assets still held | 17 | |||
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 59 | 106 | 124 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 2 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 3 | 5 | (5) | |
Purchases | 20 | 1 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | 0 | (55) | (20) | |
Transfer into Level 3 | [1] | 1 | 0 | 7 |
Transfer out of Level 3 | [1] | (16) | 0 | 0 |
Ending balance | 67 | 59 | 106 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 2 | |||
Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 28 | 26 | 29 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 0 | 2 | 0 | |
Purchases | 0 | 0 | 10 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | 0 | 0 | (13) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 |
Ending balance | 28 | 28 | 26 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 1 | |||
Fixed maturity securities | Non-U.S. corporate | Industrial | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 104 | 61 | 116 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 4 | 5 | (5) | |
Purchases | 0 | 38 | 3 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (5) | 0 | (10) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | (8) | 0 | (43) |
Ending balance | 95 | 104 | 61 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 3 | |||
Fixed maturity securities | Non-U.S. corporate | Capital goods | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 161 | 173 | 191 | |
Total realized and unrealized gains (losses), Included in net income | 1 | 0 | 1 | |
Total gains (losses) included in OCI attributable to assets still held | 1 | 12 | (8) | |
Purchases | 20 | 10 | 15 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (39) | (16) | (26) | |
Transfer into Level 3 | [1] | 34 | 3 | 0 |
Transfer out of Level 3 | [1] | 0 | (21) | 0 |
Ending balance | 178 | 161 | 173 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 1 | |
Total gains (losses) included in OCI attributable to assets still held | 1 | |||
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 147 | 122 | 54 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 3 | 12 | (5) | |
Purchases | 21 | 16 | 30 | |
Sales | 0 | 0 | (1) | |
Issuances | 0 | 0 | 0 | |
Settlements | (26) | (3) | (3) | |
Transfer into Level 3 | [1] | 32 | 0 | 48 |
Transfer out of Level 3 | [1] | (31) | 0 | (1) |
Ending balance | 146 | 147 | 122 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 2 | |||
Fixed maturity securities | Non-U.S. corporate | Transportation | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 191 | 171 | 170 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | (2) | |
Total gains (losses) included in OCI attributable to assets still held | 1 | 10 | (9) | |
Purchases | 7 | 27 | 45 | |
Sales | 0 | 0 | (18) | |
Issuances | 0 | 0 | 0 | |
Settlements | (10) | 0 | 0 | |
Transfer into Level 3 | [1] | 22 | 0 | 18 |
Transfer out of Level 3 | [1] | (102) | (17) | (33) |
Ending balance | 109 | 191 | 171 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 4 | |||
Fixed maturity securities | Non-U.S. corporate | Other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 140 | 81 | 52 | |
Total realized and unrealized gains (losses), Included in net income | 9 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | (1) | 12 | (4) | |
Purchases | 6 | 43 | 33 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (72) | (2) | 0 | |
Transfer into Level 3 | [1] | 1 | 6 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 |
Ending balance | 83 | 140 | 81 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 2 | |||
Fixed maturity securities | Residential mortgage-backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 27 | 35 | 77 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | (1) | 1 | 0 | |
Purchases | 0 | 0 | 37 | |
Sales | 0 | (2) | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (1) | (1) | (1) | |
Transfer into Level 3 | [1] | 4 | 0 | 14 |
Transfer out of Level 3 | [1] | (15) | (6) | (92) |
Ending balance | 14 | 27 | 35 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 0 | |||
Fixed maturity securities | Commercial mortgage-backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 6 | 95 | 30 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 1 | 17 | (4) | |
Purchases | 0 | 3 | 70 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 20 | 1 | 31 |
Transfer out of Level 3 | [1] | (7) | (110) | (32) |
Ending balance | 20 | 6 | 95 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 1 | |||
Fixed maturity securities | Other asset-backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 132 | 154 | 227 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 1 | 3 | (3) | |
Purchases | 130 | 139 | 114 | |
Sales | 0 | 0 | (16) | |
Issuances | 0 | 0 | 0 | |
Settlements | (35) | (69) | (93) | |
Transfer into Level 3 | [1] | 10 | 28 | 54 |
Transfer out of Level 3 | [1] | (129) | (123) | (129) |
Ending balance | 109 | 132 | 154 | |
Total gains (losses) included in net income attributable to assets still held | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 0 | |||
Fixed maturity securities | Non-U.S. government | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 0 | |||
Total realized and unrealized gains (losses), Included in net income | 0 | |||
Total gains (losses) included in OCI attributable to assets still held | 0 | |||
Purchases | 0 | |||
Sales | 0 | |||
Issuances | 0 | |||
Settlements | (1) | |||
Transfer into Level 3 | [1] | 1 | ||
Transfer out of Level 3 | [1] | 0 | ||
Ending balance | 0 | 0 | ||
Total gains (losses) included in net income attributable to assets still held | 0 | |||
Total gains (losses) included in OCI attributable to assets still held | 0 | |||
Equity Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 51 | 58 | 44 | |
Total realized and unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total gains (losses) included in OCI attributable to assets still held | 0 | 0 | 0 | |
Purchases | 6 | 2 | 18 | |
Sales | (7) | (9) | (4) | |
Issuances | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 1 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 |
Ending balance | 51 | 51 | 58 | |
Total gains (losses) included in net income attributable to assets still held | 0 | $ 0 | $ 0 | |
Total gains (losses) included in OCI attributable to assets still held | $ 0 | |||
[1] | The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. | |||
[2] | 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair value of financial instruments [Abstract] | |||
Total realized and unrealized gains (losses) included in net income, assets | $ 40 | $ 51 | $ (24) |
Total gains (losses) included in net income attributable to assets still held, assets | 16 | 23 | (12) |
Net Investment Income | |||
Fair value of financial instruments [Abstract] | |||
Total realized and unrealized gains (losses) included in net income, assets | 32 | 10 | 8 |
Total gains (losses) included in net income attributable to assets still held, assets | 7 | 6 | 9 |
Net investment gains (losses) | |||
Fair value of financial instruments [Abstract] | |||
Total realized and unrealized gains (losses) included in net income, assets | 8 | 41 | (32) |
Total gains (losses) included in net income attributable to assets still held, assets | $ 9 | $ 17 | $ (21) |
Summary of Significant Unobserv
Summary of Significant Unobservable Inputs Used for Fair Value Measurements Classified As Level 3 (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)bps | Dec. 31, 2019USD ($) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | $ | $ 830 | $ 805 | ||
Fixed maturity securities available-for-sale, at fair value | $ | 65,790 | 60,339 | ||
Derivative assets, fair value | $ | 613 | 310 | ||
Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | $ | 804 | 794 | ||
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] | 379 | 323 | |
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 | $ | 399 | 452 | ||
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 | $ | 26 | 19 | ||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fixed maturity securities available-for-sale, at fair value | $ | $ 4,089 | 4,191 | ||
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 | $ | $ 63 | |||
Fair value input, equity index volatility, lower limit | [2] | 6.00% | ||
Fair value input, equity index volatility, upper limit | [3] | 53.00% | ||
Fair value input, equity index volatility, weighted-average | 29.00% | |||
Level 3 | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | $ | $ 804 | 794 | ||
Level 3 | Policyholder account balances | GMWB embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Valuation technique | Stochastic cashflow model | |||
Derivative liabilities, fair value | $ | [1] | $ 379 | [2] | 323 |
Fair value, withdrawal utilization rate, lower limit | 56.00% | |||
Fair value, withdrawal utilization rate, upper limit | 88.00% | |||
Fair value, lapse rate, lower limit | 2.00% | |||
Fair value, lapse rate, upper limit | 9.00% | |||
Fair value input, credit spreads, lower limit | 0.10 | |||
Fair value input, credit spreads, upper limit | 0.83 | |||
Fair value input, credit spreads, weighted-average | [4] | 0.65 | ||
Fair value input, equity index volatility, lower limit | [2] | 19.00% | ||
Fair value input, equity index volatility, upper limit | [2] | 27.00% | ||
Fair value, withdrawal utilization rate, weighted-average | [4] | 74.00% | ||
Fair value, lapse rate, weighted-average | [4] | 4.00% | ||
Fair value input, equity index volatility, weighted-average | [2],[4] | 23.00% | ||
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 | $ | $ 399 | 452 | ||
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 | [4] | 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 | $ | $ 26 | $ 19 | ||
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 | [4] | 5.00% | ||
Internal Models | Level 3 | U.S. corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Valuation technique | Internal models | |||
Fixed maturity securities available-for-sale, at fair value | $ | $ 2,050 | |||
Fair value input, credit spreads, lower limit | 0.56 | |||
Fair value input, credit spreads, upper limit | 2.66 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.40 | ||
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 | $ | $ 792 | |||
Fair value input, credit spreads, lower limit | 0.66 | |||
Fair value input, credit spreads, upper limit | 2.19 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.48 | ||
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 | $ | $ 6 | |||
Fair value input, credit spreads, upper limit | 0.73 | |||
Internal Models | Level 3 | U.S. corporate | Finance and insurance | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Valuation technique | Internal models | |||
Fixed maturity securities available-for-sale, at fair value | $ | $ 593 | |||
Fair value input, credit spreads, lower limit | 0.56 | |||
Fair value input, credit spreads, upper limit | 2.22 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.37 | ||
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 | $ | $ 109 | |||
Fair value input, credit spreads, lower limit | 0.66 | |||
Fair value input, credit spreads, upper limit | 2.66 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.43 | ||
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 | $ | $ 47 | |||
Fair value input, credit spreads, lower limit | 1.04 | |||
Fair value input, credit spreads, upper limit | 2.21 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.81 | ||
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 | $ | $ 40 | |||
Fair value input, credit spreads, lower limit | 1.12 | |||
Fair value input, credit spreads, upper limit | 2.37 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.55 | ||
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 | $ | $ 60 | |||
Fair value input, credit spreads, lower limit | 0.76 | |||
Fair value input, credit spreads, upper limit | 2.08 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.43 | ||
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 | $ | $ 141 | |||
Fair value input, credit spreads, lower limit | 1.04 | |||
Fair value input, credit spreads, upper limit | 1.83 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.47 | ||
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 | $ | $ 58 | |||
Fair value input, credit spreads, lower limit | 0.58 | |||
Fair value input, credit spreads, upper limit | 1.50 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.06 | ||
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 | $ | $ 204 | |||
Fair value input, credit spreads, lower limit | 0.79 | |||
Fair value input, credit spreads, upper limit | 2.08 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.13 | ||
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 | $ | $ 1,188 | |||
Fair value input, credit spreads, lower limit | 0.66 | |||
Fair value input, credit spreads, upper limit | 5.25 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.22 | ||
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 | $ | $ 351 | |||
Fair value input, credit spreads, lower limit | 0.68 | |||
Fair value input, credit spreads, upper limit | 2.19 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.25 | ||
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 | $ | $ 90 | |||
Fair value input, credit spreads, lower limit | 0.76 | |||
Fair value input, credit spreads, upper limit | 1.87 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.21 | ||
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 | $ | $ 191 | |||
Fair value input, credit spreads, lower limit | 0.89 | |||
Fair value input, credit spreads, upper limit | 1.44 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.07 | ||
Internal Models | Level 3 | Non-U.S. corporate | Consumer-non-cyclical | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fixed maturity securities available-for-sale, at fair value | $ | $ 65 | |||
Fair value input, credit spreads, lower limit | 0.80 | |||
Fair value input, credit spreads, upper limit | 1.37 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.06 | ||
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 | $ | $ 28 | |||
Fair value input, credit spreads, lower limit | 0.76 | |||
Fair value input, credit spreads, upper limit | 1.61 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.29 | ||
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 | $ | $ 95 | |||
Fair value input, credit spreads, lower limit | 0.73 | |||
Fair value input, credit spreads, upper limit | 1.87 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.25 | ||
Internal Models | Level 3 | Non-U.S. corporate | Capital goods | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Valuation technique | Internal models | |||
Fixed maturity securities available-for-sale, at fair value | $ | $ 148 | |||
Fair value input, credit spreads, lower limit | 0.80 | |||
Fair value input, credit spreads, upper limit | 1.86 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.28 | ||
Internal Models | Level 3 | Non-U.S. corporate | Consumer-cyclical | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Valuation technique | Internal models | |||
Fixed maturity securities available-for-sale, at fair value | $ | $ 45 | |||
Fair value input, credit spreads, lower limit | 1.15 | |||
Fair value input, credit spreads, upper limit | 1.87 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.42 | ||
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 | $ | $ 92 | |||
Fair value input, credit spreads, lower limit | 0.66 | |||
Fair value input, credit spreads, upper limit | 1.87 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.02 | ||
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 | $ | $ 83 | |||
Fair value input, credit spreads, lower limit | 0.93 | |||
Fair value input, credit spreads, upper limit | 5.25 | |||
Fair value input, credit spreads, weighted-average | [3] | 1.45 | ||
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. | |||
[2] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. The unobservable inputs associated with GMWB embedded derivatives are not interrelated and therefore, a directional change in one input will not affect the other inputs. | |||
[3] | Unobservable inputs weighted by the relative fair value of the associated instrument for fixed maturity securities and by notional for derivative assets. | |||
[4] | Unobservable inputs weighted by the policyholder account balances associated with the instrument. |
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, 2020 | Dec. 31, 2019 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | $ 830 | $ 805 | ||
Total liabilities | 830 | 805 | ||
Other liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 26 | 11 | ||
Other liabilities | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 23 | 10 | ||
Other liabilities | Foreign currency swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 2 | |||
Other liabilities | Other foreign currency contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 1 | 1 | ||
Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 804 | 794 | ||
Policyholder account balances | GMWB embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | [1] | 379 | 323 | |
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 | 399 | 452 | ||
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 | 26 | 19 | ||
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 | 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 | 26 | 11 | ||
Level 2 | Other liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 26 | 11 | ||
Level 2 | Other liabilities | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 23 | 10 | ||
Level 2 | Other liabilities | Foreign currency swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 2 | |||
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 | 1 | 1 | ||
Level 2 | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 0 | 0 | ||
Level 2 | Policyholder account balances | GMWB embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | [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 | 804 | 794 | ||
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 | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 804 | 794 | ||
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] | 379 | [2] | 323 |
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 | 399 | 452 | ||
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 | $ 26 | $ 19 | ||
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. | |||
[2] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. The unobservable inputs associated with GMWB embedded derivatives are not interrelated and therefore, a directional change in one input will not affect the other inputs. |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 794 | $ 738 | $ 683 | |
Total realized and unrealized (gains) losses included in net (income) | 66 | 47 | 31 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 48 | 36 | 39 | |
Settlements | (104) | (27) | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | (15) | |
Ending balance | 804 | 794 | 738 | |
Total (gains) losses included in net (income) attributable to liabilities still held | 72 | 52 | 33 | |
Total (gains) losses included in OCI attributable to liabilities still held | 0 | |||
Policyholder account balances | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 794 | 738 | 683 | |
Total realized and unrealized (gains) losses included in net (income) | 66 | 47 | 31 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 48 | 36 | 39 | |
Settlements | (104) | (27) | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | (15) | |
Ending balance | 804 | 794 | 738 | |
Total (gains) losses included in net (income) attributable to liabilities still held | 72 | 52 | 33 | |
Total (gains) losses included in OCI attributable to liabilities still held | 0 | |||
Policyholder account balances | GMWB embedded derivatives | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | [1] | 323 | 337 | 250 |
Total realized and unrealized (gains) losses included in net (income) | [1] | 32 | (39) | 59 |
Total realized and unrealized (gains) losses included in OCI | [1] | 0 | 0 | 0 |
Purchases | [1] | 0 | 0 | 0 |
Sales | [1] | 0 | 0 | 0 |
Issuances | [1] | 24 | 25 | 28 |
Settlements | [1] | 0 | 0 | 0 |
Transfer into Level 3 | [1] | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 |
Ending balance | [1] | 379 | 323 | 337 |
Total (gains) losses included in net (income) attributable to liabilities still held | [1] | 38 | (34) | 61 |
Total (gains) losses included in OCI attributable to liabilities still held | [1] | 0 | ||
Policyholder account balances | Fixed index annuity embedded derivatives | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 452 | 389 | 419 | |
Total realized and unrealized (gains) losses included in net (income) | 51 | 90 | (15) | |
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 | (104) | (27) | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | (15) | |
Ending balance | 399 | 452 | 389 | |
Total (gains) losses included in net (income) attributable to liabilities still held | 51 | 90 | (15) | |
Total (gains) losses included in OCI attributable to liabilities still held | 0 | |||
Policyholder account balances | Indexed universal life embedded derivatives | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 19 | 12 | 14 | |
Total realized and unrealized (gains) losses included in net (income) | (17) | (4) | (13) | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 24 | 11 | 11 | |
Settlements | 0 | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | |
Ending balance | 26 | 19 | 12 | |
Total (gains) losses included in net (income) attributable to liabilities still held | (17) | $ (4) | $ (13) | |
Total (gains) losses included in OCI attributable to liabilities still held | $ 0 | |||
[1] | 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Total realized and unrealized (gains) losses included in net (income) loss, liabilities | $ 66 | $ 47 | $ 31 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | 72 | 52 | 33 |
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 | 66 | 47 | 31 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | $ 72 | $ 52 | $ 33 |
Insurance Subsidiary Financia_3
Insurance Subsidiary Financial Information and Regulatory Matters - Additional Information (Detail) $ in Millions | Dec. 31, 2020USD ($) | Feb. 01, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)Ratio | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 12, 2019USD ($) |
Statutory Accounting Practices [Line Items] | ||||||||
Amount of dividends our subsidiaries could pay in 2021 without obtaining regulatory approval | $ 190 | $ 190 | $ 190 | |||||
Statutory contingency reserve, annual additions, percentage of earned premiums, minimum | 50.00% | 50.00% | 50.00% | |||||
Minimum loss ratio requirement to hold statutory contingency reserve | 35.00% | 35.00% | 35.00% | |||||
Period of time when statutory contingency reserve has to be held, in years | 10 years | |||||||
Statutory contingency reserve | $ 2,500 | $ 2,000 | $ 2,500 | $ 2,500 | $ 2,000 | |||
Return of capital | $ 20 | 20 | ||||||
Moody's, Baa1 Rating | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Credit rating | Baa1 | |||||||
PMIERs Amended Stipulation For Non Performing Loans Relating To Government Sponsored Enterprises | Fitch, BBB+ Rating | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Credit rating | BBB+ | |||||||
Forbearance Plan | Payment Not Made On After Thirty First Of March Two Thousand And Twenty And On Or Before Thirty First Of January First Two Thousand And Twenty One | PMIERs Amended Stipulation For Non Performing Loans Relating To Government Sponsored Enterprises | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Multiplier used for assessing risk based factor for non performing loans | 0.30 | |||||||
Forbearance Plan | Regulation Applicable For Not More Than Three Months | PMIERs Amended Stipulation For Non Performing Loans Relating To Government Sponsored Enterprises | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Multiplier used for assessing risk based factor for non performing loans | 0.30 | |||||||
U.S. Mortgage Insurance | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Maximum risk-to-capital ratio | Ratio | 25 | |||||||
Percentage of available assets to PMIERs required assets | 137.00% | 138.00% | ||||||
Net assets actually available | $ 4,588 | $ 4,588 | $ 4,588 | $ 3,811 | ||||
Net assets required | 3,359 | $ 2,754 | 3,359 | 3,359 | 2,754 | |||
Net assets in excess of the statutory requirement | 1,229 | 1,229 | 1,229 | $ 1,057 | ||||
Cumulative benefit in respect of asset required base | 1,046 | 1,046 | 1,046 | |||||
U.S. Mortgage Insurance | PMIERs Amended Stipulation For Non Performing Loans Relating To Government Sponsored Enterprises | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Net assets actually available | 936 | 936 | 936 | |||||
Guarantees provided to third parties | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Maximum potential amount of future obligation | 4 | 5 | 4 | 4 | 5 | |||
Mexico Guarantee | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Maximum potential amount of future obligation | 175 | 175 | 175 | |||||
Long-term Care Insurance | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Asset adequacy deficit | 504 | |||||||
Genworth European Mortgage Insurance Business | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Maximum potential amount of future obligation | 1,300 | 1,300 | 1,300 | |||||
Variable Annuity [Member] | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Asset adequacy deficit | 35 | |||||||
Domestic subsidiaries | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Combined statutory capital and surplus | 6,204 | 5,852 | 6,204 | 6,204 | 5,852 | |||
Combined statutory net income (loss) | 610 | 1,237 | $ 1,322 | |||||
Contributed surplus | $ 198 | |||||||
Domestic subsidiaries | Captive life reinsurance subsidiaries | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Combined statutory capital and surplus | $ 106 | $ 447 | $ 106 | 106 | 447 | |||
Combined statutory net income (loss) | 9 | (350) | 1,520 | |||||
Domestic subsidiaries | Life insurance | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Impact of permitted practices on combined statutory capital and surplus | $ 0 | $ 0 | ||||||
Consolidated RBC ratio | 229.00% | 213.00% | 229.00% | 229.00% | 213.00% | |||
International insurance subsidiaries | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Dividends received from insurance subsidiaries | $ 21 | $ 212 | 129 | |||||
Combined statutory capital and surplus | $ 1,300 | $ 1,200 | $ 1,300 | 1,300 | 1,200 | |||
Combined statutory net income (loss) | 108 | 87 | 57 | |||||
Surplus amount exceeding local solvency requirements | 272 | 384 | 272 | 272 | 384 | |||
Domestic insurance subsidiaries | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Dividends received from insurance subsidiaries | 437 | 250 | 60 | |||||
Dividend paid during the period | 437 | |||||||
Domestic insurance subsidiaries | Extraordinary Dividend | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Dividends received from insurance subsidiaries | 0 | |||||||
Insurance Subsidiaries | Universal and term universal life insurance contracts | Virginia and Delaware | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Additional statutory reserves | 232 | 54 | 232 | 232 | 54 | $ 120 | ||
Insurance Subsidiary | Long-term Care Insurance | NEW YORK | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Statutory Reserves Established For Asset Adequacy Deficiencies | 454 | 454 | ||||||
Asset adequacy deficit | 16 | |||||||
Additional statutory reserve | 100 | 16 | 100 | 100 | 16 | |||
Statutory Reserve including additional reserve | $ 539 | $ 470 | $ 539 | $ 539 | $ 470 | |||
Genworth Mortgage Insurance Corporation (GMICO) | PMIERs Amended Stipulation For Non Performing Loans Relating To Government Sponsored Enterprises | Twelve Months Ended Thirty First December Two Thousand And Twenty One | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Percentage of minimum required assets to be maintained as per statutory need | 115.00% | 115.00% | 115.00% | |||||
Genworth Mortgage Insurance Corporation (GMICO) | PMIERs Amended Stipulation For Non Performing Loans Relating To Government Sponsored Enterprises | Twelve Months Ended Thirty First December Two Thousand And Twenty Two | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Percentage of minimum required assets to be maintained as per statutory need | 120.00% | 120.00% | 120.00% | |||||
Genworth Mortgage Insurance Corporation (GMICO) | PMIERs Amended Stipulation For Non Performing Loans Relating To Government Sponsored Enterprises | Twelve Months Ended Thirty First December Two Thousand And Twenty Three | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Percentage of minimum required assets to be maintained as per statutory need | 125.00% | 125.00% | 125.00% | |||||
Genworth Mortgage Insurance Corporation (GMICO) | U.S. Mortgage Insurance subsidiaries | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Risk-to-capital ratio | 12.3 | 12.5 | 12.3 | 12.3 | 12.5 | |||
Genworth Mortgage Holdings, Inc. | PMIERs Amended Stipulation For Non Performing Loans Relating To Government Sponsored Enterprises | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Restricted cash | $ 300 | $ 300 | $ 300 | |||||
Genworth Life Insurance Company of New York (GLICNY) | Long-term Care Insurance | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Asset adequacy deficiency reserves | 66 | 66 | 66 | |||||
Genworth Life Insurance Company of New York (GLICNY) | Variable Annuity [Member] | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Asset adequacy deficiency reserves | 35 | 35 | 35 | |||||
Genworth Life Insurance Company of New York (GLICNY) | Structured Settlements [Member] | ||||||||
Statutory Accounting Practices [Line Items] | ||||||||
Statutory Reserves Established For Asset Adequacy Deficiencies | $ 31 | $ 31 | $ 31 |
Schedule of Statutory Accountin
Schedule of Statutory Accounting Practices (Detail) - Domestic subsidiaries - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Accounting Practices [Line Items] | |||
Combined statutory net income (loss) | $ 610 | $ 1,237 | $ 1,322 |
Combined statutory capital and surplus | 6,204 | 5,852 | |
Life insurance subsidiaries, excluding captive life reinsurance subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Combined statutory net income (loss) | 197 | 740 | (895) |
Combined statutory capital and surplus | 2,131 | 2,188 | |
Mortgage insurance subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Combined statutory net income (loss) | 404 | 847 | 697 |
Combined statutory capital and surplus | 4,073 | 3,664 | |
Combined statutory net income, excluding captive reinsurance subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Combined statutory net income (loss) | 601 | 1,587 | (198) |
Captive life reinsurance subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Combined statutory net income (loss) | 9 | (350) | $ 1,520 |
Combined statutory capital and surplus | $ 106 | $ 447 |
Fair Value Financial Instrument
Fair Value Financial Instruments Not Required to Be Carried at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | $ 6,743 | $ 6,963 | |
Other invested assets | 2,253 | 1,632 | |
Liabilities: | |||
Long-term borrowings | 3,548 | 3,277 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 0 | 0 | |
Other invested assets | 0 | 0 | |
Liabilities: | |||
Long-term borrowings | [1] | 0 | 0 |
Non-recourse funding obligations | [1] | 0 | |
Investment contracts | 0 | 0 | |
Level 1 | Commitments to fund limited partnerships | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 1 | Commitments to fund bank loan investments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 1 | Ordinary course of business lending commitments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 0 | 0 | |
Other invested assets | 24 | 49 | |
Liabilities: | |||
Long-term borrowings | [1] | 3,090 | 2,951 |
Non-recourse funding obligations | [1] | 0 | |
Investment contracts | 0 | 0 | |
Level 2 | Commitments to fund limited partnerships | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 2 | Commitments to fund bank loan investments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 2 | Ordinary course of business lending commitments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 7,145 | 7,239 | |
Other invested assets | 354 | 383 | |
Liabilities: | |||
Long-term borrowings | [1] | 150 | 142 |
Non-recourse funding obligations | [1] | 207 | |
Investment contracts | 11,353 | 12,086 | |
Level 3 | Commitments to fund limited partnerships | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 3 | Commitments to fund bank loan investments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Level 3 | Ordinary course of business lending commitments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Carrying value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 6,743 | 6,963 | |
Other invested assets | 368 | 432 | |
Liabilities: | |||
Long-term borrowings | [1] | 3,548 | 3,277 |
Non-recourse funding obligations | [1] | 311 | |
Investment contracts | 10,276 | 11,466 | |
Carrying value | Commitments to fund limited partnerships | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Carrying value | Commitments to fund bank loan investments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Carrying value | Ordinary course of business lending commitments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 7,145 | 7,239 | |
Other invested assets | 378 | 432 | |
Liabilities: | |||
Long-term borrowings | [1] | 3,240 | 3,093 |
Non-recourse funding obligations | [1] | 207 | |
Investment contracts | 11,353 | 12,086 | |
Fair value | Commitments to fund limited partnerships | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Fair value | Commitments to fund bank loan investments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Fair value | Ordinary course of business lending commitments | |||
Liabilities: | |||
Off-balance sheet risk | 0 | 0 | |
Notional amount | Commitments to fund limited partnerships | |||
Liabilities: | |||
Off-balance sheet risk | 1,090 | 976 | |
Notional amount | Commitments to fund bank loan investments | |||
Liabilities: | |||
Off-balance sheet risk | 32 | 52 | |
Notional amount | Ordinary course of business lending commitments | |||
Liabilities: | |||
Off-balance sheet risk | $ 117 | $ 69 | |
[1] | See note 12 for additional information related to borrowings. |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2020USD ($) | Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | Segment | 4 | |||
Assumed tax rate on adjustments to adjusted operating income | 21.00% | 21.00% | ||
Expenses related to restructuring | $ 3 | $ 4 | $ 2 | |
Fees associated with bond consent solicitation | 0 | 0 | 6 | |
Goodwill impairment | 5 | 0 | 0 | |
Pre-tax gain (loss) on early extinguishment of debt | $ (9) | $ 0 | 0 | |
Floating Rate Subordinated Notes Due in 2050 | Non-Recourse Funding Obligations | ||||
Segment Reporting Information [Line Items] | ||||
Pre-tax gain (loss) on early extinguishment of debt | $ 4 | |||
Redemption of secured debt | $ 315 | |||
Debt instrument, maturity year | 2050 | |||
Australia Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Assumed tax rate on adjustments to adjusted operating income | 30.00% | |||
Goodwill impairment | $ 3 | |||
Genworth Holdings | ||||
Segment Reporting Information [Line Items] | ||||
Pre-tax make-whole expense | $ 9 | |||
Fees associated with bond consent solicitation | $ 6 | |||
Debt instrument, maturity month and year | 2020-06 | |||
Genworth Holdings | Senior Notes 2021 | ||||
Segment Reporting Information [Line Items] | ||||
Aggregate principal amount of notes repurchased | 84 | |||
Pre-tax gain (loss) on early extinguishment of debt | $ 4 | |||
Debt instrument, maturity year | 2021 |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Goodwill impairment | $ 5 | $ 0 | $ 0 | ||||||||||||||||
Premiums | 4,110 | 4,037 | 3,994 | ||||||||||||||||
Net investment income | 3,260 | 3,220 | 3,121 | ||||||||||||||||
Net investment gains (losses) | 558 | 50 | (9) | ||||||||||||||||
Policy fees and other income | 730 | 789 | 795 | ||||||||||||||||
Total revenues | $ 2,263 | [1] | $ 2,420 | [1] | $ 2,138 | [1] | $ 1,837 | [1] | $ 2,038 | $ 2,020 | $ 1,994 | $ 2,044 | 8,658 | 8,096 | 7,901 | ||||
Benefits and other changes in policy reserves | 5,391 | 5,163 | 5,606 | ||||||||||||||||
Interest credited | 549 | 577 | 611 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 988 | 962 | 943 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 492 | 441 | 348 | ||||||||||||||||
Interest expense | 202 | 239 | 256 | ||||||||||||||||
Total benefits and expenses | 1,883 | [2] | 1,835 | [2] | 1,990 | [2] | 1,919 | [2] | 1,957 | [3] | 1,848 | [3] | 1,770 | [3] | 1,807 | [3] | 7,627 | 7,382 | 7,764 |
Income (loss) from continuing operations before income taxes | 1,031 | 714 | 137 | ||||||||||||||||
Provision (benefit) for income taxes | 270 | 195 | 70 | ||||||||||||||||
Income (loss) from continuing operations | 296 | [1],[2],[4] | 435 | [1],[2],[4] | 102 | [1],[2],[4] | (72) | [1],[2],[4] | 55 | [5] | 138 | [5] | 158 | [5] | 168 | [5] | 761 | 519 | 67 |
Net income (loss) | 266 | [1],[2],[4],[6] | 436 | [1],[2],[4],[6] | (418) | [1],[2],[4],[6] | (72) | [1],[2],[4],[6] | 24 | [5],[7] | 58 | [5],[7] | 218 | [5],[7] | 230 | [5],[7] | 212 | 530 | 297 |
Less: net income from continuing operations attributable to noncontrolling interests | (1) | 18 | 23 | (6) | 19 | 10 | 15 | 20 | 34 | 64 | 70 | ||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 22 | 30 | 35 | 36 | 0 | 123 | 108 | ||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 267 | 418 | (441) | (66) | (17) | 18 | 168 | 174 | 178 | 343 | 119 | ||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 297 | 417 | 79 | (66) | 36 | 128 | 143 | 148 | 727 | 455 | (3) | ||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders | (30) | $ 1 | $ (520) | $ 0 | (53) | $ (110) | $ 25 | $ 26 | (549) | (112) | 122 | ||||||||
Total assets | 105,747 | 101,342 | 105,747 | 101,342 | |||||||||||||||
Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Goodwill impairment | 5 | ||||||||||||||||||
Total revenues | 8,658 | 8,096 | 7,901 | ||||||||||||||||
Income (loss) from continuing operations | 761 | 519 | 67 | ||||||||||||||||
Net income (loss) | 212 | 530 | 297 | ||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 727 | 455 | (3) | ||||||||||||||||
Discontinued Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Loss from discontinued operations, net of taxes | (549) | 11 | 230 | ||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 123 | 108 | |||||||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders | (549) | (112) | 122 | ||||||||||||||||
U.S. Mortgage Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total assets | 5,627 | 4,504 | 5,627 | 4,504 | |||||||||||||||
U.S. Mortgage Insurance | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Goodwill impairment | 0 | ||||||||||||||||||
Premiums | 971 | 856 | 746 | ||||||||||||||||
Net investment income | 133 | 117 | 93 | ||||||||||||||||
Net investment gains (losses) | (4) | 1 | 0 | ||||||||||||||||
Policy fees and other income | 6 | 4 | 2 | ||||||||||||||||
Total revenues | 1,106 | 978 | 841 | ||||||||||||||||
Benefits and other changes in policy reserves | 381 | 50 | 36 | ||||||||||||||||
Interest credited | 0 | 0 | 0 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 206 | 191 | 169 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 21 | 15 | 14 | ||||||||||||||||
Interest expense | 18 | 0 | 0 | ||||||||||||||||
Total benefits and expenses | 626 | 256 | 219 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 480 | 722 | 622 | ||||||||||||||||
Provision (benefit) for income taxes | 102 | 153 | 132 | ||||||||||||||||
Income (loss) from continuing operations | 378 | 569 | 490 | ||||||||||||||||
Net income (loss) | 378 | 569 | 490 | ||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 378 | 569 | 490 | ||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 378 | 569 | 490 | ||||||||||||||||
U.S. Mortgage Insurance | Discontinued Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 0 | |||||||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders | 0 | 0 | 0 | ||||||||||||||||
Australia Mortgage Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Goodwill impairment | 3 | ||||||||||||||||||
Total assets | 2,884 | 2,406 | 2,884 | 2,406 | |||||||||||||||
Australia Mortgage Insurance | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Goodwill impairment | 5 | ||||||||||||||||||
Premiums | 274 | 312 | 373 | ||||||||||||||||
Net investment income | 32 | 55 | 67 | ||||||||||||||||
Net investment gains (losses) | 66 | 23 | (15) | ||||||||||||||||
Policy fees and other income | 1 | 0 | 2 | ||||||||||||||||
Total revenues | 373 | 390 | 427 | ||||||||||||||||
Benefits and other changes in policy reserves | 177 | 104 | 110 | ||||||||||||||||
Interest credited | 0 | 0 | 0 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 74 | 69 | 65 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 29 | 33 | 43 | ||||||||||||||||
Interest expense | 7 | 8 | 9 | ||||||||||||||||
Total benefits and expenses | 292 | 214 | 227 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 81 | 176 | 200 | ||||||||||||||||
Provision (benefit) for income taxes | 24 | 53 | 60 | ||||||||||||||||
Income (loss) from continuing operations | 57 | 123 | 140 | ||||||||||||||||
Net income (loss) | 57 | 123 | 140 | ||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 34 | 64 | 70 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 23 | 59 | 70 | ||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 23 | 59 | 70 | ||||||||||||||||
Australia Mortgage Insurance | Discontinued Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 0 | |||||||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders | 0 | 0 | 0 | ||||||||||||||||
U.S. Life Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total assets | 84,671 | 81,640 | 84,671 | 81,640 | |||||||||||||||
U.S. Life Insurance | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Goodwill impairment | 0 | ||||||||||||||||||
Premiums | 2,858 | 2,861 | 2,867 | ||||||||||||||||
Net investment income | 2,878 | 2,852 | 2,781 | ||||||||||||||||
Net investment gains (losses) | 517 | 82 | 29 | ||||||||||||||||
Policy fees and other income | 595 | 643 | 641 | ||||||||||||||||
Total revenues | 6,848 | 6,438 | 6,318 | ||||||||||||||||
Benefits and other changes in policy reserves | 4,781 | 4,979 | 5,416 | ||||||||||||||||
Interest credited | 383 | 419 | 461 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 620 | 604 | 584 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 418 | 372 | 257 | ||||||||||||||||
Interest expense | 5 | 17 | 16 | ||||||||||||||||
Total benefits and expenses | 6,207 | 6,391 | 6,734 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 641 | 47 | (416) | ||||||||||||||||
Provision (benefit) for income taxes | 163 | 34 | (68) | ||||||||||||||||
Income (loss) from continuing operations | 478 | 13 | (348) | ||||||||||||||||
Net income (loss) | 478 | 13 | (348) | ||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 478 | 13 | (348) | ||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 478 | 13 | (348) | ||||||||||||||||
U.S. Life Insurance | Discontinued Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 0 | |||||||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders | 0 | 0 | 0 | ||||||||||||||||
Runoff | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total assets | 9,735 | 9,953 | 9,735 | 9,953 | |||||||||||||||
Runoff | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Goodwill impairment | 0 | ||||||||||||||||||
Premiums | 0 | 0 | 0 | ||||||||||||||||
Net investment income | 210 | 187 | 174 | ||||||||||||||||
Net investment gains (losses) | (26) | (25) | (33) | ||||||||||||||||
Policy fees and other income | 130 | 140 | 153 | ||||||||||||||||
Total revenues | 314 | 302 | 294 | ||||||||||||||||
Benefits and other changes in policy reserves | 48 | 27 | 39 | ||||||||||||||||
Interest credited | 166 | 158 | 150 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 48 | 52 | 57 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 23 | 18 | 33 | ||||||||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||||||||
Total benefits and expenses | 285 | 255 | 279 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 29 | 47 | 15 | ||||||||||||||||
Provision (benefit) for income taxes | 4 | 8 | 2 | ||||||||||||||||
Income (loss) from continuing operations | 25 | 39 | 13 | ||||||||||||||||
Net income (loss) | 25 | 39 | 13 | ||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 25 | 39 | 13 | ||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 25 | 39 | 13 | ||||||||||||||||
Runoff | Discontinued Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 0 | |||||||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders | 0 | 0 | 0 | ||||||||||||||||
Corporate and Other | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total assets | $ 2,830 | $ 2,839 | 2,830 | 2,839 | |||||||||||||||
Corporate and Other | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Goodwill impairment | 0 | ||||||||||||||||||
Premiums | 7 | 8 | 8 | ||||||||||||||||
Net investment income | 7 | 9 | 6 | ||||||||||||||||
Net investment gains (losses) | 5 | (31) | 10 | ||||||||||||||||
Policy fees and other income | (2) | 2 | (3) | ||||||||||||||||
Total revenues | 17 | (12) | 21 | ||||||||||||||||
Benefits and other changes in policy reserves | 4 | 3 | 5 | ||||||||||||||||
Interest credited | 0 | 0 | 0 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 40 | 46 | 68 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 1 | 3 | 1 | ||||||||||||||||
Interest expense | 172 | 214 | 231 | ||||||||||||||||
Total benefits and expenses | 217 | 266 | 305 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | (200) | (278) | (284) | ||||||||||||||||
Provision (benefit) for income taxes | (23) | (53) | (56) | ||||||||||||||||
Income (loss) from continuing operations | (177) | (225) | (228) | ||||||||||||||||
Net income (loss) | (726) | (214) | 2 | ||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (726) | (337) | (106) | ||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | (177) | (225) | (228) | ||||||||||||||||
Corporate and Other | Discontinued Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Loss from discontinued operations, net of taxes | (549) | 11 | 230 | ||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 123 | 108 | |||||||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders | $ (549) | $ (112) | $ 122 | ||||||||||||||||
[1] | In the fourth quarter of 2020, we recorded lower net investment gains as compared to the third quarter of 2020. The higher net investment gains recorded in the third quarter of 2020 related to the sale of available-for-sale fixed maturity securities of $330 million driven primarily from the sale of U.S. government securities due to portfolio rebalancing and asset exposure management as a result of the prolonged low interest rate environment. This decrease to total revenues was partially offset by higher net investment income recorded in the fourth quarter of 2020 largely driven by bond calls and mortgage loan repayments of $40 million and limited partnerships of $38 million. | ||||||||||||||||||
[2] | Given our assumption that COVID-19 has temporarily decreased the number of new claims submitted, our long-term care insurance business strengthened IBNR reserves in the fourth quarter of 2020 by $47 million. Additionally, our long-term care insurance business recorded a $91 million increase to claim reserves reflecting our assumption that COVID-19 accelerated mortality experience on the most vulnerable claimants, leaving the remaining claim population less likely to terminate compared to the pre-pandemic average population. Our U.S. mortgage insurance business recorded an unfavorable reserve adjustment of $37 million primarily due to slowing cure emergence patterns impacting the frequency of claim. Our Australia mortgage insurance business strengthened its loss reserves by $88 million, including its IBNR reserves, due to a refinement in methodology to better align with historical delinquency behavior, as well as to reflect delayed impacts from higher expected delinquencies and the pressured economic conditions caused by COVID-19. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2020. This review resulted in lower total benefits and expenses of $82 million from a net favorable unlocking in our term universal and universal life insurance products largely attributable to a model refinement in our term universal life insurance product related to persistency and grace period timing and lower projected cost of insurance assessments on our universal life insurance products. In addition, we recorded a DAC impairment of $63 million in our universal life insurance products due principally to lower future estimated gross profits. | ||||||||||||||||||
[3] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2019, which resulted in higher total benefits and expenses of $145 million from an unfavorable unlocking in our universal and term universal life insurance products driven mostly by the lower interest rate environment. | ||||||||||||||||||
[4] | In the fourth quarter of 2020, our long-term care insurance business strengthened its reserves by $109 million after-tax. Our U.S. mortgage insurance and Australia mortgage insurance businesses strengthened their loss reserves by $29 million and $62 million, respectively, after-tax. Our life insurance business recorded a $60 million net favorable unlocking, net of taxes, related to its annual review of assumptions. This favorable unlocking in our life insurance business was partially offset by a DAC impairment of $50 million, net of taxes, as a result of recoverability testing. For all of the aforementioned transactions, see above under superscript (2) for additional details. | ||||||||||||||||||
[5] | In the fourth quarter of 2019, our life insurance business recorded a $107 million unfavorable unlocking, net of taxes, related to its annual review of assumptions in our universal and term universal life insurance products, as described above. This unfavorable unlocking in our life insurance business was partially offset by a favorable update of $11 million, net of taxes, in our U.S. mortgage insurance business in connection with a review of its single premium earnings pattern and from a favorable reserve adjustment of $10 million, net of taxes. | ||||||||||||||||||
[6] | In the fourth quarter of 2020, we recorded a loss from discontinued operations, net of taxes, of $30 million principally attributed to foreign currency remeasurement losses of $26 million, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022. See note 23 for additional details on discontinued operations. | ||||||||||||||||||
[7] | In the fourth quarter of 2019, we recorded an after-tax loss of approximately $110 million principally in connection with pending litigation involving our former lifestyle protection insurance business. See note 20 for additional information related to asserted claims regarding the sale of our lifestyle protection insurance business. We completed the sale of Genworth MI Canada Inc. (“Genworth Canada”) on December 12, 2019 and recorded an incremental gain of $43 million in the fourth quarter of 2019 predominantly related to a favorable tax position refinement. In addition, during the fourth quarter of 2019 through the sale closing date of December 12, 2019, we recorded $36 million of income from discontinued operations attributed to Genworth Canada. |
Summary of Revenues for Segment
Summary of Revenues for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | [1] | Sep. 30, 2020 | [1] | Jun. 30, 2020 | [1] | Mar. 31, 2020 | [1] | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | $ 2,263 | $ 2,420 | $ 2,138 | $ 1,837 | $ 2,038 | $ 2,020 | $ 1,994 | $ 2,044 | $ 8,658 | $ 8,096 | $ 7,901 | ||||
Segment, Continuing Operations | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 8,658 | 8,096 | 7,901 | ||||||||||||
Segment, Continuing Operations | U.S. Mortgage Insurance | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 1,106 | 978 | 841 | ||||||||||||
Segment, Continuing Operations | Australia Mortgage Insurance | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 373 | 390 | 427 | ||||||||||||
Segment, Continuing Operations | Long-term Care Insurance | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 4,960 | 4,385 | 4,197 | ||||||||||||
Segment, Continuing Operations | Life Insurance | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 1,357 | 1,444 | 1,430 | ||||||||||||
Segment, Continuing Operations | Fixed Annuities | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 531 | 609 | 691 | ||||||||||||
Segment, Continuing Operations | U.S. Life Insurance | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 6,848 | 6,438 | 6,318 | ||||||||||||
Segment, Continuing Operations | Runoff | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 314 | 302 | 294 | ||||||||||||
Segment, Continuing Operations | Corporate and Other | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | $ 17 | $ (12) | $ 21 | ||||||||||||
[1] | In the fourth quarter of 2020, we recorded lower net investment gains as compared to the third quarter of 2020. The higher net investment gains recorded in the third quarter of 2020 related to the sale of available-for-sale fixed maturity securities of $330 million driven primarily from the sale of U.S. government securities due to portfolio rebalancing and asset exposure management as a result of the prolonged low interest rate environment. This decrease to total revenues was partially offset by higher net investment income recorded in the fourth quarter of 2020 largely driven by bond calls and mortgage loan repayments of $40 million and limited partnerships of $38 million. |
Summary of Net Operating Income
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income available to Genworth Financial, Inc.'s common stockholders | $ 267 | $ 418 | $ (441) | $ (66) | $ (17) | $ 18 | $ 168 | $ 174 | $ 178 | $ 343 | $ 119 | |||||||||
Add: net income (loss) from continuing operations attributable to noncontrolling interests | (1) | 18 | 23 | (6) | 19 | 10 | 15 | 20 | 34 | 64 | 70 | |||||||||
Add: net income from discontinued operations attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 22 | 30 | 35 | 36 | 0 | 123 | 108 | |||||||||
Net income | 266 | [1],[2],[3],[4] | 436 | [1],[2],[3],[4] | (418) | [1],[2],[3],[4] | (72) | [1],[2],[3],[4] | 24 | [5],[6] | 58 | [5],[6] | 218 | [5],[6] | 230 | [5],[6] | 212 | 530 | 297 | |
Income (loss) from discontinued operations, net of taxes | (30) | [3] | 1 | [3] | (520) | [3] | 0 | [3] | (31) | [6] | (80) | [6] | 60 | [6] | 62 | [6] | (549) | 11 | 230 | |
Income from continuing operations | 296 | [1],[2],[4] | 435 | [1],[2],[4] | 102 | [1],[2],[4] | (72) | [1],[2],[4] | 55 | [5] | 138 | [5] | 158 | [5] | 168 | [5] | 761 | 519 | 67 | |
Less: net income (loss) from continuing operations attributable to noncontrolling interests | (1) | 18 | 23 | (6) | 19 | 10 | 15 | 20 | 34 | 64 | 70 | |||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | $ 297 | $ 417 | $ 79 | $ (66) | $ 36 | $ 128 | $ 143 | $ 148 | 727 | 455 | (3) | |||||||||
Net investment (gains) losses, net | [7] | (538) | (50) | (10) | ||||||||||||||||
Goodwill impairment, net | [8] | 3 | 0 | 0 | ||||||||||||||||
(Gains) losses on early extinguishment of debt, net | 9 | 0 | 0 | |||||||||||||||||
Expenses related to restructuring | 3 | 4 | 2 | |||||||||||||||||
Fees associated with bond consent solicitation | 0 | 0 | 6 | |||||||||||||||||
Taxes on adjustments | 113 | 11 | 0 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 317 | 420 | (5) | |||||||||||||||||
Segment, Continuing Operations | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income | 212 | 530 | 297 | |||||||||||||||||
Income from continuing operations | 761 | 519 | 67 | |||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 727 | 455 | (3) | |||||||||||||||||
Segment, Continuing Operations | U.S. Mortgage Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income available to Genworth Financial, Inc.'s common stockholders | 378 | 569 | 490 | |||||||||||||||||
Add: net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Net income | 378 | 569 | 490 | |||||||||||||||||
Income from continuing operations | 378 | 569 | 490 | |||||||||||||||||
Less: net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 378 | 569 | 490 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 381 | 568 | 490 | |||||||||||||||||
Segment, Continuing Operations | Australia Mortgage Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income available to Genworth Financial, Inc.'s common stockholders | 23 | 59 | 70 | |||||||||||||||||
Add: net income (loss) from continuing operations attributable to noncontrolling interests | 34 | 64 | 70 | |||||||||||||||||
Net income | 57 | 123 | 140 | |||||||||||||||||
Income from continuing operations | 57 | 123 | 140 | |||||||||||||||||
Less: net income (loss) from continuing operations attributable to noncontrolling interests | 34 | 64 | 70 | |||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 23 | 59 | 70 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 1 | 51 | 76 | |||||||||||||||||
Segment, Continuing Operations | Long-term Care Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 237 | 57 | (348) | |||||||||||||||||
Segment, Continuing Operations | Life Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | (247) | (181) | (107) | |||||||||||||||||
Segment, Continuing Operations | Fixed Annuities | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 78 | 69 | 79 | |||||||||||||||||
Segment, Continuing Operations | U.S. Life Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income available to Genworth Financial, Inc.'s common stockholders | 478 | 13 | (348) | |||||||||||||||||
Add: net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Net income | 478 | 13 | (348) | |||||||||||||||||
Income from continuing operations | 478 | 13 | (348) | |||||||||||||||||
Less: net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 478 | 13 | (348) | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 68 | (55) | (376) | |||||||||||||||||
Segment, Continuing Operations | Runoff | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income available to Genworth Financial, Inc.'s common stockholders | 25 | 39 | 13 | |||||||||||||||||
Add: net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Net income | 25 | 39 | 13 | |||||||||||||||||
Income from continuing operations | 25 | 39 | 13 | |||||||||||||||||
Less: net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 25 | 39 | 13 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 43 | 56 | 35 | |||||||||||||||||
Segment, Continuing Operations | Corporate and Other | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income available to Genworth Financial, Inc.'s common stockholders | (726) | (337) | (106) | |||||||||||||||||
Add: net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Net income | (726) | (214) | 2 | |||||||||||||||||
Income from continuing operations | (177) | (225) | (228) | |||||||||||||||||
Less: net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | (177) | (225) | (228) | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (176) | $ (200) | $ (230) | |||||||||||||||||
[1] | Given our assumption that COVID-19 has temporarily decreased the number of new claims submitted, our long-term care insurance business strengthened IBNR reserves in the fourth quarter of 2020 by $47 million. Additionally, our long-term care insurance business recorded a $91 million increase to claim reserves reflecting our assumption that COVID-19 accelerated mortality experience on the most vulnerable claimants, leaving the remaining claim population less likely to terminate compared to the pre-pandemic average population. Our U.S. mortgage insurance business recorded an unfavorable reserve adjustment of $37 million primarily due to slowing cure emergence patterns impacting the frequency of claim. Our Australia mortgage insurance business strengthened its loss reserves by $88 million, including its IBNR reserves, due to a refinement in methodology to better align with historical delinquency behavior, as well as to reflect delayed impacts from higher expected delinquencies and the pressured economic conditions caused by COVID-19. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2020. This review resulted in lower total benefits and expenses of $82 million from a net favorable unlocking in our term universal and universal life insurance products largely attributable to a model refinement in our term universal life insurance product related to persistency and grace period timing and lower projected cost of insurance assessments on our universal life insurance products. In addition, we recorded a DAC impairment of $63 million in our universal life insurance products due principally to lower future estimated gross profits. | |||||||||||||||||||
[2] | In the fourth quarter of 2020, our long-term care insurance business strengthened its reserves by $109 million after-tax. Our U.S. mortgage insurance and Australia mortgage insurance businesses strengthened their loss reserves by $29 million and $62 million, respectively, after-tax. Our life insurance business recorded a $60 million net favorable unlocking, net of taxes, related to its annual review of assumptions. This favorable unlocking in our life insurance business was partially offset by a DAC impairment of $50 million, net of taxes, as a result of recoverability testing. For all of the aforementioned transactions, see above under superscript (2) for additional details. | |||||||||||||||||||
[3] | In the fourth quarter of 2020, we recorded a loss from discontinued operations, net of taxes, of $30 million principally attributed to foreign currency remeasurement losses of $26 million, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022. See note 23 for additional details on discontinued operations. | |||||||||||||||||||
[4] | In the fourth quarter of 2020, we recorded lower net investment gains as compared to the third quarter of 2020. The higher net investment gains recorded in the third quarter of 2020 related to the sale of available-for-sale fixed maturity securities of $330 million driven primarily from the sale of U.S. government securities due to portfolio rebalancing and asset exposure management as a result of the prolonged low interest rate environment. This decrease to total revenues was partially offset by higher net investment income recorded in the fourth quarter of 2020 largely driven by bond calls and mortgage loan repayments of $40 million and limited partnerships of $38 million. | |||||||||||||||||||
[5] | In the fourth quarter of 2019, our life insurance business recorded a $107 million unfavorable unlocking, net of taxes, related to its annual review of assumptions in our universal and term universal life insurance products, as described above. This unfavorable unlocking in our life insurance business was partially offset by a favorable update of $11 million, net of taxes, in our U.S. mortgage insurance business in connection with a review of its single premium earnings pattern and from a favorable reserve adjustment of $10 million, net of taxes. | |||||||||||||||||||
[6] | In the fourth quarter of 2019, we recorded an after-tax loss of approximately $110 million principally in connection with pending litigation involving our former lifestyle protection insurance business. See note 20 for additional information related to asserted claims regarding the sale of our lifestyle protection insurance business. We completed the sale of Genworth MI Canada Inc. (“Genworth Canada”) on December 12, 2019 and recorded an incremental gain of $43 million in the fourth quarter of 2019 predominantly related to a favorable tax position refinement. In addition, during the fourth quarter of 2019 through the sale closing date of December 12, 2019, we recorded $36 million of income from discontinued operations attributed to Genworth Canada. | |||||||||||||||||||
[7] | For the years ended December 31, 2020, 2019 and 2018, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(11) million, $(11) million and $(12) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $31 million, $11 million and $(7) million, respectively. | |||||||||||||||||||
[8] | For the year ended December 31, 2020, goodwill impairment was adjusted for the portion attributable to noncontrolling interests of $2 million. |
Summary of Net Operating Inco_2
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Goodwill impairment loss attributable to noncontrolling interest | $ 2 | ||
Net Investment (Gains) Losses | |||
Segment Reporting Information [Line Items] | |||
Adjustment for DAC and other intangibles and certain benefit reserves | 11 | $ (11) | $ 12 |
Adjustment for portion attributable to noncontrolling interests | $ 31 | $ 11 | $ (7) |
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, 2020 | Sep. 30, 2020 | [1] | Jun. 30, 2020 | [1] | Mar. 31, 2020 | [1] | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | $ 2,263 | [1] | $ 2,420 | $ 2,138 | $ 1,837 | $ 2,038 | $ 2,020 | $ 1,994 | $ 2,044 | $ 8,658 | $ 8,096 | $ 7,901 | |||||||
Income (loss) from continuing operations | 296 | [1],[2],[3] | 435 | [2],[3] | 102 | [2],[3] | (72) | [2],[3] | 55 | [4] | 138 | [4] | 158 | [4] | 168 | [4] | 761 | 519 | 67 |
Net income (loss) | 266 | [1],[2],[3],[5] | $ 436 | [2],[3],[5] | $ (418) | [2],[3],[5] | $ (72) | [2],[3],[5] | 24 | [4],[6] | $ 58 | [4],[6] | $ 218 | [4],[6] | $ 230 | [4],[6] | 212 | 530 | 297 |
Total assets | 105,747 | 101,342 | 105,747 | 101,342 | |||||||||||||||
Continuing Operations [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 8,658 | 8,096 | 7,901 | ||||||||||||||||
Income (loss) from continuing operations | 761 | 519 | 67 | ||||||||||||||||
Net income (loss) | 212 | 530 | 297 | ||||||||||||||||
Geographic Distribution, Domestic | United States | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total assets | 102,804 | 98,881 | 102,804 | 98,881 | |||||||||||||||
Geographic Distribution, Domestic | United States | Continuing Operations [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 8,276 | 7,701 | 7,469 | ||||||||||||||||
Income (loss) from continuing operations | 706 | 398 | (69) | ||||||||||||||||
Net income (loss) | 157 | 398 | (69) | ||||||||||||||||
Geographic Distribution, Foreign | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total assets | 2,943 | 2,461 | 2,943 | 2,461 | |||||||||||||||
Geographic Distribution, Foreign | Continuing Operations [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 382 | 395 | 432 | ||||||||||||||||
Income (loss) from continuing operations | 55 | 121 | 136 | ||||||||||||||||
Net income (loss) | 55 | 132 | 366 | ||||||||||||||||
Geographic Distribution, Foreign | Australia | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total assets | 2,884 | 2,406 | 2,884 | 2,406 | |||||||||||||||
Geographic Distribution, Foreign | Australia | Continuing Operations [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 373 | 390 | 427 | ||||||||||||||||
Income (loss) from continuing operations | 57 | 123 | 140 | ||||||||||||||||
Net income (loss) | 57 | 123 | 140 | ||||||||||||||||
Geographic Distribution, Foreign | Other Countries | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total assets | $ 59 | $ 55 | 59 | 55 | |||||||||||||||
Geographic Distribution, Foreign | Other Countries | Continuing Operations [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 9 | 5 | 5 | ||||||||||||||||
Income (loss) from continuing operations | (2) | (2) | (4) | ||||||||||||||||
Net income (loss) | $ (2) | $ 9 | $ 226 | ||||||||||||||||
[1] | In the fourth quarter of 2020, we recorded lower net investment gains as compared to the third quarter of 2020. The higher net investment gains recorded in the third quarter of 2020 related to the sale of available-for-sale fixed maturity securities of $330 million driven primarily from the sale of U.S. government securities due to portfolio rebalancing and asset exposure management as a result of the prolonged low interest rate environment. This decrease to total revenues was partially offset by higher net investment income recorded in the fourth quarter of 2020 largely driven by bond calls and mortgage loan repayments of $40 million and limited partnerships of $38 million. | ||||||||||||||||||
[2] | Given our assumption that COVID-19 has temporarily decreased the number of new claims submitted, our long-term care insurance business strengthened IBNR reserves in the fourth quarter of 2020 by $47 million. Additionally, our long-term care insurance business recorded a $91 million increase to claim reserves reflecting our assumption that COVID-19 accelerated mortality experience on the most vulnerable claimants, leaving the remaining claim population less likely to terminate compared to the pre-pandemic average population. Our U.S. mortgage insurance business recorded an unfavorable reserve adjustment of $37 million primarily due to slowing cure emergence patterns impacting the frequency of claim. Our Australia mortgage insurance business strengthened its loss reserves by $88 million, including its IBNR reserves, due to a refinement in methodology to better align with historical delinquency behavior, as well as to reflect delayed impacts from higher expected delinquencies and the pressured economic conditions caused by COVID-19. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2020. This review resulted in lower total benefits and expenses of $82 million from a net favorable unlocking in our term universal and universal life insurance products largely attributable to a model refinement in our term universal life insurance product related to persistency and grace period timing and lower projected cost of insurance assessments on our universal life insurance products. In addition, we recorded a DAC impairment of $63 million in our universal life insurance products due principally to lower future estimated gross profits. | ||||||||||||||||||
[3] | In the fourth quarter of 2020, our long-term care insurance business strengthened its reserves by $109 million after-tax. Our U.S. mortgage insurance and Australia mortgage insurance businesses strengthened their loss reserves by $29 million and $62 million, respectively, after-tax. Our life insurance business recorded a $60 million net favorable unlocking, net of taxes, related to its annual review of assumptions. This favorable unlocking in our life insurance business was partially offset by a DAC impairment of $50 million, net of taxes, as a result of recoverability testing. For all of the aforementioned transactions, see above under superscript (2) for additional details. | ||||||||||||||||||
[4] | In the fourth quarter of 2019, our life insurance business recorded a $107 million unfavorable unlocking, net of taxes, related to its annual review of assumptions in our universal and term universal life insurance products, as described above. This unfavorable unlocking in our life insurance business was partially offset by a favorable update of $11 million, net of taxes, in our U.S. mortgage insurance business in connection with a review of its single premium earnings pattern and from a favorable reserve adjustment of $10 million, net of taxes. | ||||||||||||||||||
[5] | In the fourth quarter of 2020, we recorded a loss from discontinued operations, net of taxes, of $30 million principally attributed to foreign currency remeasurement losses of $26 million, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022. See note 23 for additional details on discontinued operations. | ||||||||||||||||||
[6] | In the fourth quarter of 2019, we recorded an after-tax loss of approximately $110 million principally in connection with pending litigation involving our former lifestyle protection insurance business. See note 20 for additional information related to asserted claims regarding the sale of our lifestyle protection insurance business. We completed the sale of Genworth MI Canada Inc. (“Genworth Canada”) on December 12, 2019 and recorded an incremental gain of $43 million in the fourth quarter of 2019 predominantly related to a favorable tax position refinement. In addition, during the fourth quarter of 2019 through the sale closing date of December 12, 2019, we recorded $36 million of income from discontinued operations attributed to Genworth Canada. |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||||
Quarterly Results Of Operations [Abstract] | |||||||||||||||||||
Total revenues | $ 2,263 | [1] | $ 2,420 | [1] | $ 2,138 | [1] | $ 1,837 | [1] | $ 2,038 | $ 2,020 | $ 1,994 | $ 2,044 | $ 8,658 | $ 8,096 | $ 7,901 | ||||
Total benefits and expenses | 1,883 | [2] | 1,835 | [2] | 1,990 | [2] | 1,919 | [2] | 1,957 | [3] | 1,848 | [3] | 1,770 | [3] | 1,807 | [3] | 7,627 | 7,382 | 7,764 |
Income (loss) from continuing operations | 296 | [1],[2],[4] | 435 | [1],[2],[4] | 102 | [1],[2],[4] | (72) | [1],[2],[4] | 55 | [5] | 138 | [5] | 158 | [5] | 168 | [5] | 761 | 519 | 67 |
Income (loss) from discontinued operations, net of taxes | (30) | [6] | 1 | [6] | (520) | [6] | 0 | [6] | (31) | [7] | (80) | [7] | 60 | [7] | 62 | [7] | (549) | 11 | 230 |
Net income (loss) | 266 | [1],[2],[4],[6] | 436 | [1],[2],[4],[6] | (418) | [1],[2],[4],[6] | (72) | [1],[2],[4],[6] | 24 | [5],[7] | 58 | [5],[7] | 218 | [5],[7] | 230 | [5],[7] | 212 | 530 | 297 |
Net income (loss) from continuing operations attributable to noncontrolling interests | (1) | 18 | 23 | (6) | 19 | 10 | 15 | 20 | 34 | 64 | 70 | ||||||||
Net income from discontinued operations attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 22 | 30 | 35 | 36 | 0 | 123 | 108 | ||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 267 | 418 | (441) | (66) | (17) | 18 | 168 | 174 | 178 | 343 | 119 | ||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders: | |||||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 297 | 417 | 79 | (66) | 36 | 128 | 143 | 148 | 727 | 455 | (3) | ||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders | (30) | 1 | (520) | 0 | (53) | (110) | 25 | 26 | (549) | (112) | 122 | ||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 267 | $ 418 | $ (441) | $ (66) | $ (17) | $ 18 | $ 168 | $ 174 | $ 178 | $ 343 | $ 119 | ||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders per share: | |||||||||||||||||||
Basic | $ 0.59 | $ 0.83 | $ 0.16 | $ (0.13) | $ 0.07 | $ 0.25 | $ 0.29 | $ 0.29 | $ 1.44 | $ 0.90 | $ (0.01) | ||||||||
Diluted | 0.58 | 0.82 | 0.15 | (0.13) | 0.07 | 0.25 | 0.28 | 0.29 | 1.42 | 0.89 | (0.01) | ||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share: | |||||||||||||||||||
Basic | 0.53 | 0.83 | (0.87) | (0.13) | (0.03) | 0.04 | 0.33 | 0.35 | 0.35 | 0.68 | 0.24 | ||||||||
Diluted | $ 0.52 | $ 0.82 | $ (0.86) | $ (0.13) | $ (0.03) | $ 0.04 | $ 0.33 | $ 0.34 | $ 0.35 | $ 0.67 | $ 0.24 | ||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||
Basic | 505.6 | 505.6 | 505.4 | 504.3 | 503.5 | 503.5 | 503.4 | 501.2 | 505.2 | 502.9 | 500.4 | ||||||||
Diluted | 512.5 | [8] | 511.5 | [8] | 512.5 | [8] | 504.3 | [8] | 510.4 | 511.2 | 508.7 | 508.6 | 511.6 | 509.7 | 500.4 | ||||
[1] | In the fourth quarter of 2020, we recorded lower net investment gains as compared to the third quarter of 2020. The higher net investment gains recorded in the third quarter of 2020 related to the sale of available-for-sale fixed maturity securities of $330 million driven primarily from the sale of U.S. government securities due to portfolio rebalancing and asset exposure management as a result of the prolonged low interest rate environment. This decrease to total revenues was partially offset by higher net investment income recorded in the fourth quarter of 2020 largely driven by bond calls and mortgage loan repayments of $40 million and limited partnerships of $38 million. | ||||||||||||||||||
[2] | Given our assumption that COVID-19 has temporarily decreased the number of new claims submitted, our long-term care insurance business strengthened IBNR reserves in the fourth quarter of 2020 by $47 million. Additionally, our long-term care insurance business recorded a $91 million increase to claim reserves reflecting our assumption that COVID-19 accelerated mortality experience on the most vulnerable claimants, leaving the remaining claim population less likely to terminate compared to the pre-pandemic average population. Our U.S. mortgage insurance business recorded an unfavorable reserve adjustment of $37 million primarily due to slowing cure emergence patterns impacting the frequency of claim. Our Australia mortgage insurance business strengthened its loss reserves by $88 million, including its IBNR reserves, due to a refinement in methodology to better align with historical delinquency behavior, as well as to reflect delayed impacts from higher expected delinquencies and the pressured economic conditions caused by COVID-19. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2020. This review resulted in lower total benefits and expenses of $82 million from a net favorable unlocking in our term universal and universal life insurance products largely attributable to a model refinement in our term universal life insurance product related to persistency and grace period timing and lower projected cost of insurance assessments on our universal life insurance products. In addition, we recorded a DAC impairment of $63 million in our universal life insurance products due principally to lower future estimated gross profits. | ||||||||||||||||||
[3] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2019, which resulted in higher total benefits and expenses of $145 million from an unfavorable unlocking in our universal and term universal life insurance products driven mostly by the lower interest rate environment. | ||||||||||||||||||
[4] | In the fourth quarter of 2020, our long-term care insurance business strengthened its reserves by $109 million after-tax. Our U.S. mortgage insurance and Australia mortgage insurance businesses strengthened their loss reserves by $29 million and $62 million, respectively, after-tax. Our life insurance business recorded a $60 million net favorable unlocking, net of taxes, related to its annual review of assumptions. This favorable unlocking in our life insurance business was partially offset by a DAC impairment of $50 million, net of taxes, as a result of recoverability testing. For all of the aforementioned transactions, see above under superscript (2) for additional details. | ||||||||||||||||||
[5] | In the fourth quarter of 2019, our life insurance business recorded a $107 million unfavorable unlocking, net of taxes, related to its annual review of assumptions in our universal and term universal life insurance products, as described above. This unfavorable unlocking in our life insurance business was partially offset by a favorable update of $11 million, net of taxes, in our U.S. mortgage insurance business in connection with a review of its single premium earnings pattern and from a favorable reserve adjustment of $10 million, net of taxes. | ||||||||||||||||||
[6] | In the fourth quarter of 2020, we recorded a loss from discontinued operations, net of taxes, of $30 million principally attributed to foreign currency remeasurement losses of $26 million, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022. See note 23 for additional details on discontinued operations. | ||||||||||||||||||
[7] | In the fourth quarter of 2019, we recorded an after-tax loss of approximately $110 million principally in connection with pending litigation involving our former lifestyle protection insurance business. See note 20 for additional information related to asserted claims regarding the sale of our lifestyle protection insurance business. We completed the sale of Genworth MI Canada Inc. (“Genworth Canada”) on December 12, 2019 and recorded an incremental gain of $43 million in the fourth quarter of 2019 predominantly related to a favorable tax position refinement. In addition, during the fourth quarter of 2019 through the sale closing date of December 12, 2019, we recorded $36 million of income from discontinued operations attributed to Genworth Canada. | ||||||||||||||||||
[8] | Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months ended March 31, 2020, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, RSUs and SARs of 5.4 million would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been 509.7 million. |
Quarterly Results of Operatio_4
Quarterly Results of Operations (Parenthetical) (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Total benefits and expenses | $ 1,883 | [1] | $ 1,835 | [1] | $ 1,990 | [1] | $ 1,919 | [1] | $ 1,957 | [2] | $ 1,848 | [2] | $ 1,770 | [2] | $ 1,807 | [2] | $ 7,627 | $ 7,382 | $ 7,764 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5.4 | 3.8 | |||||||||||||||||
Weighted-average number of diluted shares if not in a loss position | 509.7 | 504.2 | |||||||||||||||||
Income (loss) from discontinued operations, net of taxes | (30) | [3] | 1 | [3] | $ (520) | [3] | $ 0 | [3] | (31) | [4] | $ (80) | [4] | $ 60 | [4] | $ 62 | [4] | (549) | 11 | $ 230 |
Sale of available for sale debt securities | $ 330 | ||||||||||||||||||
Proceeds from sale and collection of mortgage loan repayments and bond calls | 40 | ||||||||||||||||||
Proceeds from limited partnership investments on account of redemptions | 38 | ||||||||||||||||||
Discontinued Operations [Member] | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Disposal group discontinued operations unfavourable tax charges | 17 | ||||||||||||||||||
Discontinued Operations [Member] | Foreign Exchange Forward | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Derivative gains losses foreign exchange contracts | 21 | ||||||||||||||||||
Discontinued Operations [Member] | AXA Settlement Agreement | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Litigation expense | 110 | ||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | (30) | ||||||||||||||||||
Foreign currency remeasurement loss | 26 | ||||||||||||||||||
Discontinued Operations [Member] | AXA Settlement Agreement | Promissory Note | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Interest expense | 8 | ||||||||||||||||||
Universal Life | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Impairment of deferred acquisition costs | 63 | ||||||||||||||||||
Genworth Canada Mortgage Insurance | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Gain on disposal | 43 | (121) | |||||||||||||||||
Income (loss) from discontinued operations, net of taxes | 36 | ||||||||||||||||||
Interest expense | 34 | 25 | |||||||||||||||||
Unlocking | Universal Life | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Total benefits and expenses | 82 | 145 | |||||||||||||||||
Favorable (unfavorable) adjustment, net of taxes | 60 | (107) | |||||||||||||||||
Impairment of deferred acquisition costs | 50 | ||||||||||||||||||
Australian Mortgage Insurance | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Unfavorable adjustment, net of taxes | 88 | 88 | |||||||||||||||||
Favorable (unfavorable) adjustment, net of taxes | (62) | ||||||||||||||||||
Long-term Care Insurance | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Increase (decrease) in incurred but not reported reserves | 47 | 108 | |||||||||||||||||
Increase in reserves related to accelarated claims termination | 91 | 2,595 | 2,717 | $ 2,548 | |||||||||||||||
Increase in reserves related to accelerated claims terminations | 109 | ||||||||||||||||||
U.S. Mortgage Insurance | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Favorable adjustment, net of taxes | 11 | $ 11 | |||||||||||||||||
Favorable (unfavorable) adjustment, net of taxes | (29) | $ 10 | |||||||||||||||||
Increase (decrease) in incurred but not reported reserves | 322 | ||||||||||||||||||
Unfavorable adjustment | $ 37 | $ 37 | |||||||||||||||||
[1] | Given our assumption that COVID-19 has temporarily decreased the number of new claims submitted, our long-term care insurance business strengthened IBNR reserves in the fourth quarter of 2020 by $47 million. Additionally, our long-term care insurance business recorded a $91 million increase to claim reserves reflecting our assumption that COVID-19 accelerated mortality experience on the most vulnerable claimants, leaving the remaining claim population less likely to terminate compared to the pre-pandemic average population. Our U.S. mortgage insurance business recorded an unfavorable reserve adjustment of $37 million primarily due to slowing cure emergence patterns impacting the frequency of claim. Our Australia mortgage insurance business strengthened its loss reserves by $88 million, including its IBNR reserves, due to a refinement in methodology to better align with historical delinquency behavior, as well as to reflect delayed impacts from higher expected delinquencies and the pressured economic conditions caused by COVID-19. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2020. This review resulted in lower total benefits and expenses of $82 million from a net favorable unlocking in our term universal and universal life insurance products largely attributable to a model refinement in our term universal life insurance product related to persistency and grace period timing and lower projected cost of insurance assessments on our universal life insurance products. In addition, we recorded a DAC impairment of $63 million in our universal life insurance products due principally to lower future estimated gross profits. | ||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2019, which resulted in higher total benefits and expenses of $145 million from an unfavorable unlocking in our universal and term universal life insurance products driven mostly by the lower interest rate environment. | ||||||||||||||||||
[3] | In the fourth quarter of 2020, we recorded a loss from discontinued operations, net of taxes, of $30 million principally attributed to foreign currency remeasurement losses of $26 million, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022. See note 23 for additional details on discontinued operations. | ||||||||||||||||||
[4] | In the fourth quarter of 2019, we recorded an after-tax loss of approximately $110 million principally in connection with pending litigation involving our former lifestyle protection insurance business. See note 20 for additional information related to asserted claims regarding the sale of our lifestyle protection insurance business. We completed the sale of Genworth MI Canada Inc. (“Genworth Canada”) on December 12, 2019 and recorded an incremental gain of $43 million in the fourth quarter of 2019 predominantly related to a favorable tax position refinement. In addition, during the fourth quarter of 2019 through the sale closing date of December 12, 2019, we recorded $36 million of income from discontinued operations attributed to Genworth Canada. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) £ in Millions, $ in Millions | Jul. 17, 2020USD ($) | Jun. 08, 2020GBP (£) | Jan. 31, 2020USD ($) | Dec. 06, 2019 | Sep. 11, 2019USD ($) | Dec. 01, 2017GBP (£)Company | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | Jan. 31, 2020GBP (£) | Jan. 31, 2019USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Loss contingencies actions by plaintiff | On September 11, 2019, plaintiffs filed a renewed motion seeking the same relief from their August 7, 2019 motion with an exception that allowed GFIH to transfer $450 million of expected proceeds from the sale of Genworth Canada through a dividend to Genworth Holdings to allow the pay-off of a senior secured term loan facility (“Term Loan”) dated March 7, 2018 among Genworth Holdings as the borrower, GFIH as the limited guarantor and the lending parties thereto. Oral arguments on our motion to dismiss and plaintiffs’ motion occurred on October 21, 2019, and plaintiffs’ motion was denied. On January 31, 2020, the Court granted in part our motion to dismiss, dismissing claims relating to $395 million in dividends GLIC paid to its parent from 2012 to 2014 (out of the $410 million in total dividends subject to plaintiffs’ claims). The Court denied the balance of the motion to dismiss leaving a claim relating to $15 million in dividends and unquantified claims relating to the 2016 termination of a reinsurance transaction. On March 27, 2020, we filed our answer to plaintiffs’ amended complaint. We intend to continue to vigorously defend this action. | ||||||||||||
Commitments to Fund Limited Partnerships | |||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Off-balance sheet risk | $ 1,090 | ||||||||||||
Commitments to fund U.S. commercial mortgage loan investments | |||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Off-balance sheet risk | 32 | ||||||||||||
Commitments to Fund Private Placement Investments | |||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Off-balance sheet risk | 85 | ||||||||||||
Commitments to Fund Bank Loan Investments | |||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Off-balance sheet risk | $ 32 | ||||||||||||
AXA Damages Hearing | |||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Number of insurance company sold | Company | 2 | ||||||||||||
Loss Contingency, Damages Sought | £ | £ 499 | £ 28 | |||||||||||
Percentage of losses sought as claims | 90.00% | ||||||||||||
Payments for accruals | $ 134 | £ 100 | |||||||||||
Damages sought, tax gross up amount | £ | £ 117 | ||||||||||||
Other Litigation | |||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Plaintiff's Motion Dismissed | $ 395 | ||||||||||||
Loss Contingency, Damages Sought | $ 5 | $ 5 | $ 5 | ||||||||||
Plaintiffs' motion | $ 15 | $ 410 | |||||||||||
Restricted cash proceeds on sale per litigation | $ 450 |
Component of Changes in Accumul
Component of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | $ 3,433 | $ 2,044 | $ 3,027 | ||
OCI before reclassifications | 1,531 | 1,728 | (1,148) | ||
Amounts reclassified from (to) OCI | (509) | (172) | (122) | ||
Total other comprehensive income (loss) | 1,022 | 1,556 | (1,270) | ||
Balances before nonnontrolling interests | 4,455 | 3,600 | 1,888 | ||
Less: change in OCI attributable to noncontrolling interests | 30 | 167 | (156) | ||
Ending balance | 4,425 | 3,433 | 2,044 | ||
Cumulative effect of changes in accounting | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | 131 | ||||
Net unrealized investment (gains) losses | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [1] | 1,456 | 595 | 1,085 | |
OCI before reclassifications | [1] | 1,132 | 910 | (653) | |
Amounts reclassified from (to) OCI | [1] | (374) | (62) | (18) | |
Total other comprehensive income (loss) | [1] | 758 | 848 | (671) | |
Balances before nonnontrolling interests | [1] | 2,214 | 1,443 | 578 | |
Less: change in OCI attributable to noncontrolling interests | [1] | 0 | (13) | (17) | |
Ending balance | [1] | 2,214 | 1,456 | 595 | |
Net unrealized investment (gains) losses | Cumulative effect of changes in accounting | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | 0 | 164 | 164 | [1] | |
Ending balance | 0 | 0 | 164 | ||
Derivatives qualifying as hedges | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [2] | 2,002 | 1,781 | 2,065 | |
OCI before reclassifications | [2] | 344 | 331 | (194) | |
Amounts reclassified from (to) OCI | [2] | (135) | (110) | (104) | |
Total other comprehensive income (loss) | [2] | 209 | 221 | (298) | |
Balances before nonnontrolling interests | [2] | 2,211 | 2,002 | 1,781 | |
Less: change in OCI attributable to noncontrolling interests | [2] | 0 | 0 | 0 | |
Ending balance | [2] | 2,211 | 2,002 | 1,781 | |
Derivatives qualifying as hedges | Cumulative effect of changes in accounting | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [2] | 14 | |||
Foreign currency translation and other adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (25) | (332) | (123) | ||
OCI before reclassifications | 55 | 487 | (301) | ||
Amounts reclassified from (to) OCI | 0 | 0 | 0 | ||
Total other comprehensive income (loss) | 55 | 487 | (301) | ||
Balances before nonnontrolling interests | 30 | 155 | (471) | ||
Less: change in OCI attributable to noncontrolling interests | 30 | 180 | (139) | ||
Ending balance | $ 0 | $ (25) | (332) | ||
Foreign currency translation and other adjustments | Cumulative effect of changes in accounting | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | $ (47) | ||||
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrecognized postretirement benefit obligation, current period OCI | $ (15) | $ (4) | $ (2) |
Unrecognized postretirement benefit obligation, current period OCI, tax | 4 | 1 | 1 |
Foreign currency translation and other adjustments, current period OCI, tax | $ 21 | $ 22 | $ (45) |
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, 2020 | [1],[2],[3] | Sep. 30, 2020 | [1],[2],[3] | Jun. 30, 2020 | [1],[2],[3] | Mar. 31, 2020 | [1],[2],[3] | Dec. 31, 2019 | [4] | Sep. 30, 2019 | [4] | Jun. 30, 2019 | [4] | Mar. 31, 2019 | [4] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||||
Net investment income | $ (3,260) | $ (3,220) | $ (3,121) | |||||||||||||||||
Net investment (gains) losses | (558) | (50) | 9 | |||||||||||||||||
Income taxes | 270 | 195 | 70 | |||||||||||||||||
(Income) loss from continuing operations | $ (296) | $ (435) | $ (102) | $ 72 | $ (55) | $ (138) | $ (158) | $ (168) | (761) | (519) | (67) | |||||||||
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 | [5] | (474) | (79) | (23) | ||||||||||||||||
Income taxes | 100 | 17 | 5 | |||||||||||||||||
(Income) loss from continuing operations | (374) | (62) | (18) | |||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | ||||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||||
Income taxes | 73 | 60 | 58 | |||||||||||||||||
(Income) loss from continuing operations | (135) | (110) | (104) | |||||||||||||||||
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 | (196) | (164) | (153) | |||||||||||||||||
Net investment (gains) losses | $ (12) | $ (6) | $ (9) | |||||||||||||||||
[1] | Given our assumption that COVID-19 has temporarily decreased the number of new claims submitted, our long-term care insurance business strengthened IBNR reserves in the fourth quarter of 2020 by $47 million. Additionally, our long-term care insurance business recorded a $91 million increase to claim reserves reflecting our assumption that COVID-19 accelerated mortality experience on the most vulnerable claimants, leaving the remaining claim population less likely to terminate compared to the pre-pandemic average population. Our U.S. mortgage insurance business recorded an unfavorable reserve adjustment of $37 million primarily due to slowing cure emergence patterns impacting the frequency of claim. Our Australia mortgage insurance business strengthened its loss reserves by $88 million, including its IBNR reserves, due to a refinement in methodology to better align with historical delinquency behavior, as well as to reflect delayed impacts from higher expected delinquencies and the pressured economic conditions caused by COVID-19. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2020. This review resulted in lower total benefits and expenses of $82 million from a net favorable unlocking in our term universal and universal life insurance products largely attributable to a model refinement in our term universal life insurance product related to persistency and grace period timing and lower projected cost of insurance assessments on our universal life insurance products. In addition, we recorded a DAC impairment of $63 million in our universal life insurance products due principally to lower future estimated gross profits. | |||||||||||||||||||
[2] | In the fourth quarter of 2020, our long-term care insurance business strengthened its reserves by $109 million after-tax. Our U.S. mortgage insurance and Australia mortgage insurance businesses strengthened their loss reserves by $29 million and $62 million, respectively, after-tax. Our life insurance business recorded a $60 million net favorable unlocking, net of taxes, related to its annual review of assumptions. This favorable unlocking in our life insurance business was partially offset by a DAC impairment of $50 million, net of taxes, as a result of recoverability testing. For all of the aforementioned transactions, see above under superscript (2) for additional details. | |||||||||||||||||||
[3] | In the fourth quarter of 2020, we recorded lower net investment gains as compared to the third quarter of 2020. The higher net investment gains recorded in the third quarter of 2020 related to the sale of available-for-sale fixed maturity securities of $330 million driven primarily from the sale of U.S. government securities due to portfolio rebalancing and asset exposure management as a result of the prolonged low interest rate environment. This decrease to total revenues was partially offset by higher net investment income recorded in the fourth quarter of 2020 largely driven by bond calls and mortgage loan repayments of $40 million and limited partnerships of $38 million. | |||||||||||||||||||
[4] | In the fourth quarter of 2019, our life insurance business recorded a $107 million unfavorable unlocking, net of taxes, related to its annual review of assumptions in our universal and term universal life insurance products, as described above. This unfavorable unlocking in our life insurance business was partially offset by a favorable update of $11 million, net of taxes, in our U.S. mortgage insurance business in connection with a review of its single premium earnings pattern and from a favorable reserve adjustment of $10 million, net of taxes. | |||||||||||||||||||
[5] | Amounts exclude adjustments to DAC, PVFP, sales inducements and benefit reserves. |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Detail) $ / shares in Units, shares in Millions, $ in Millions, $ in Millions | Feb. 28, 2018USD ($)shares | Feb. 28, 2018AUD ($)shares | May 11, 2015shares | Nov. 30, 2019AUD ($)$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)shares | Dec. 31, 2019AUD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018AUD ($)shares | Dec. 12, 2019USD ($) | Sep. 30, 2019AUD ($) | Aug. 27, 2019$ / shares | Feb. 28, 2019AUD ($) | May 31, 2018AUD ($) | May 15, 2015 | May 31, 2014 |
Noncontrolling Interest [Line Items] | ||||||||||||||||
Dividend paid to noncontrolling interests | $ 9 | $ 87 | $ 40 | |||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 502 | $ 447 | ||||||||||||||
Genworth MI Canada Inc. | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Beneficial ownership percentage of ordinary shares | 57.00% | |||||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 1,300 | |||||||||||||||
Genworth Australia | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Beneficial ownership percentage of ordinary shares | 52.00% | 52.00% | ||||||||||||||
Repurchase of subsidiary shares through issuer bid, number of shares | shares | 19 | 19 | 25 | 25 | 36 | 36 | ||||||||||
Common shares repurchased, value | $ 49 | $ 64 | $ 100 | |||||||||||||
Amount received as a result of participation in Issuer Bid | $ 20 | $ 23 | $ 37 | |||||||||||||
Dividend paid to noncontrolling interests | $ 9 | $ 87 | $ 40 | |||||||||||||
Shares sold | shares | 92.3 | |||||||||||||||
Maximum aggregate amount of share buy-back program | $ 100 | $ 100 | ||||||||||||||
Special dividends paid by subsidiary per share | $ / shares | $ 0.242 | $ 0.219 | ||||||||||||||
Remaining amount of share buy-back program | $ 36 | |||||||||||||||
Aggregate Distribution | $ 100 | |||||||||||||||
Genworth Australia | IPO | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Beneficial ownership percentage of ordinary shares | 66.20% |
Sale of Businesses - Summary of
Sale of Businesses - Summary of Liabilities Related to Discontinued Operations (Detail) - 12 months ended Dec. 31, 2020 - AXA Settlement Agreement £ in Millions, $ in Millions | GBP (£) | USD ($) | USD ($) | |
Installment payments due to AXA: | ||||
June 2022 | £ 159 | $ 217 | ||
Beginning balance | 158 | $ 217 | ||
Amounts billed as future losses | [1] | 29 | 39 | |
Ending balance | 187 | 256 | ||
Total amounts due under the promissory note | 346 | 473 | ||
Future claims: | ||||
Estimated beginning balance | 107 | 146 | ||
Change in estimated future claims | 1 | 1 | ||
Less: Amounts billed to date | [1] | (29) | (39) | |
Estimated future billings | 79 | $ 108 | ||
Total amounts due to AXA under the settlement agreement | £ 425 | $ 581 | ||
[1] | In January 2021, we were billed an additional amount related to future losses of £35 million that will be reflected as part of the September 2022 installment payment in our first quarter of 2021 financial results. There was no significant change to our current estimate of future billings of £79 million based on this most recent invoiced amount. |
Sale of Businesses - Summary _2
Sale of Businesses - Summary of Liabilities Related to Discontinued Operations (Parenthetical) (Detail) - A x a Settlement Agreement Promissory Note [Member] £ in Millions, $ in Millions | 1 Months Ended | |||||
Jan. 31, 2021GBP (£) | Jan. 01, 2021GBP (£) | Dec. 31, 2020GBP (£) | Dec. 31, 2020USD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | ||||||
Discontinued operations amounts of material contingent liabilities | £ 79 | $ 108 | £ 107 | $ 146 | ||
Subsequent Event [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | ||||||
Discontinued operations amounts of material contingent liabilities | £ 79 | |||||
September 2022 [Member] | Subsequent Event [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | ||||||
Disposal group discontinued operations change in estimated future claims | £ 35 |
Sale of Businesses - Additional
Sale of Businesses - Additional Information (Detail) £ in Millions, $ in Millions | Jul. 20, 2020USD ($) | Jul. 20, 2020GBP (£) | Jan. 31, 2020USD ($) | Jan. 31, 2020GBP (£) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019$ / shares |
AXA Settlement Agreement | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | |||||||||||
Foreign Currency Remeasurement Losses | $ 44 | ||||||||||
Income loss from discontinued operations after tax | $ 125 | £ 100 | (572) | ||||||||
Loss associated with mis-selling complaints | (517) | ||||||||||
Interest expense | 12 | ||||||||||
Unrelated liability | $ 16 | $ 42 | 16 | $ 42 | |||||||
Loss Contingency Accrual, Provision | $ 28 | ||||||||||
Income (Loss) from Discontinued Operations | 23 | ||||||||||
Disposal group discontinued operations unfavorable tax charges | $ 17 | ||||||||||
Derivative gains losses foreign exchange contracts | $ 18 | ||||||||||
AXA Settlement Agreement | Discontinued Operations | Promissory Note | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | |||||||||||
Debt instrument interest rate | 5.25% | 5.25% | |||||||||
Debt Instrument, Interest Rate Decrease | 2.75% | ||||||||||
Percent Of Security Interest Pledged | 19.90% | 19.90% | |||||||||
Proceeds from Issuance of debt gross | $ 750 | ||||||||||
Proceeds from Issuance or Sale of Equity | $ 475 | ||||||||||
Axa Damages - Interim Payment | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | |||||||||||
Payments for accruals | $ 134 | £ 100 | |||||||||
Genworth Canada MI | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | |||||||||||
Net cash proceeds from sale of business | 1,700 | ||||||||||
Payments of dividends to holding company | $ 54 | ||||||||||
Special dividend reducing the purchase price per share | $ / shares | $ 1.45 | ||||||||||
Interest expense | $ 34 | $ 25 |
Schedule Of Income Loss On Sale
Schedule Of Income Loss On Sale Recorded In Our Disposition Group (Detail) - Genworth Canada MI $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |||
Net cash proceeds | $ 1,736 | $ 1,736 | ||
Add: carrying value of noncontrolling interests | 1,417 | [1] | 1,417 | [1] |
Total adjusted consideration | 3,153 | [2] | 3,153 | [2] |
Carrying value of the disposal group before accumulated other comprehensive loss | 3,022 | 3,022 | ||
Add: total accumulated other comprehensive loss of disposal group | 325 | [3] | 325 | [3] |
Total adjusted carrying value of the disposal group | 3,347 | 3,347 | ||
Pre-tax loss on sale | (194) | |||
Tax benefit on sale | 73 | |||
After-tax loss on sale | $ 43 | $ (121) | ||
[1] | In accordance with accounting guidance on the deconsolidation of a subsidiary or group of assets, the carrying amount of any noncontrolling interests in the subsidiary sold (adjusted to reflect amounts in accumulated other comprehensive income (loss) recognized upon final disposition) is added to the total fair value of the consideration to be received. | |||
[2] | Represents the aggregate of the net cash proceeds received upon sale closing plus the adjusted carrying amount of noncontrolling interests in the subsidiary sold. | |||
[3] | Consists primarily of cumulative losses on foreign currency translation adjustments of $369 million and deferred tax losses of $71 million, partially offset by unrealized investment gains of $115 million. |
Schedule Of Income Loss On Sa_2
Schedule Of Income Loss On Sale Recorded In Our Disposition Group (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net unrealized investment gains (losses) | $ 1,456 | $ 2,214 | $ 595 | $ 1,085 |
Genworth Canada MI | ||||
Foreign currency translation and other adjustments | 369 | |||
Deferred tax losses on accumulated other comprehensive income | 71 | |||
Net unrealized investment gains (losses) | $ 115 |
Summary of Operating Results Re
Summary of Operating Results Related to Discontinued Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||||||||
Revenues: | ||||||||||||||||||||
Premiums | $ 4,110 | $ 4,037 | $ 3,994 | |||||||||||||||||
Net investment income | 3,260 | 3,220 | 3,121 | |||||||||||||||||
Net investment gains (losses) | 558 | 50 | (9) | |||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||
Benefits and other changes in policy reserves | 5,391 | 5,163 | 5,606 | |||||||||||||||||
Acquisition and operating expenses, net of deferrals | 988 | 962 | 943 | |||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 492 | 441 | 348 | |||||||||||||||||
Total benefits and expenses | $ 1,883 | [1] | $ 1,835 | [1] | $ 1,990 | [1] | $ 1,919 | [1] | $ 1,957 | [2] | $ 1,848 | [2] | $ 1,770 | [2] | $ 1,807 | [2] | 7,627 | 7,382 | 7,764 | |
Income from discontinued operations, net of taxes | (30) | [3] | 1 | [3] | (520) | [3] | 0 | [3] | (31) | [4] | (80) | [4] | 60 | [4] | 62 | [4] | (549) | 11 | 230 | |
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 22 | 30 | 35 | 36 | 0 | 123 | 108 | |||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders | $ (30) | $ 1 | $ (520) | $ 0 | $ (53) | $ (110) | $ 25 | $ 26 | $ (549) | (112) | 122 | |||||||||
Assets Held For Sale Related To Discontinued Operations | Canada Mortgage Insurance | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Premiums | 466 | 525 | ||||||||||||||||||
Net investment income | 132 | 141 | ||||||||||||||||||
Net investment gains (losses) | (13) | (137) | ||||||||||||||||||
Total revenues | 585 | 529 | ||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||
Benefits and other changes in policy reserves | 79 | 78 | ||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 64 | 54 | ||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 39 | 43 | ||||||||||||||||||
Interest expense | [5] | 50 | 43 | |||||||||||||||||
Total benefits and expenses | 232 | 218 | ||||||||||||||||||
Income before income taxes and loss on sale | [6] | 353 | 311 | |||||||||||||||||
Provision for income taxes | 111 | 81 | ||||||||||||||||||
Income before loss on sale | 242 | 230 | ||||||||||||||||||
Loss on sale, net of taxes | (121) | 0 | ||||||||||||||||||
Income from discontinued operations, net of taxes | 121 | 230 | ||||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 123 | 108 | ||||||||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.'s common stockholders | $ (2) | $ 122 | ||||||||||||||||||
[1] | Given our assumption that COVID-19 has temporarily decreased the number of new claims submitted, our long-term care insurance business strengthened IBNR reserves in the fourth quarter of 2020 by $47 million. Additionally, our long-term care insurance business recorded a $91 million increase to claim reserves reflecting our assumption that COVID-19 accelerated mortality experience on the most vulnerable claimants, leaving the remaining claim population less likely to terminate compared to the pre-pandemic average population. Our U.S. mortgage insurance business recorded an unfavorable reserve adjustment of $37 million primarily due to slowing cure emergence patterns impacting the frequency of claim. Our Australia mortgage insurance business strengthened its loss reserves by $88 million, including its IBNR reserves, due to a refinement in methodology to better align with historical delinquency behavior, as well as to reflect delayed impacts from higher expected delinquencies and the pressured economic conditions caused by COVID-19. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2020. This review resulted in lower total benefits and expenses of $82 million from a net favorable unlocking in our term universal and universal life insurance products largely attributable to a model refinement in our term universal life insurance product related to persistency and grace period timing and lower projected cost of insurance assessments on our universal life insurance products. In addition, we recorded a DAC impairment of $63 million in our universal life insurance products due principally to lower future estimated gross profits. | |||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2019, which resulted in higher total benefits and expenses of $145 million from an unfavorable unlocking in our universal and term universal life insurance products driven mostly by the lower interest rate environment. | |||||||||||||||||||
[3] | In the fourth quarter of 2020, we recorded a loss from discontinued operations, net of taxes, of $30 million principally attributed to foreign currency remeasurement losses of $26 million, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022. See note 23 for additional details on discontinued operations. | |||||||||||||||||||
[4] | In the fourth quarter of 2019, we recorded an after-tax loss of approximately $110 million principally in connection with pending litigation involving our former lifestyle protection insurance business. See note 20 for additional information related to asserted claims regarding the sale of our lifestyle protection insurance business. We completed the sale of Genworth MI Canada Inc. (“Genworth Canada”) on December 12, 2019 and recorded an incremental gain of $43 million in the fourth quarter of 2019 predominantly related to a favorable tax position refinement. In addition, during the fourth quarter of 2019 through the sale closing date of December 12, 2019, we recorded $36 million of income from discontinued operations attributed to Genworth Canada. | |||||||||||||||||||
[5] | Interest on debt assumed by Brookfield and interest on debt that was repaid as a result of the sale of Genworth Canada was allocated and reported in discontinued operations. The Term Loan, owed by Genworth Holdings and secured by GFIH’s ownership interest in Genworth Canada’s outstanding common shares, was repaid in connection with the close of the Genworth Canada sale. Accordingly, interest expense related to the Term Loan of $34 million and $25 million for the years ended December 31, 2019 and 2018, respectively, was allocated and reported in discontinued operations. | |||||||||||||||||||
[6] | The years ended December 31, 2019 and 2018 include pre-tax income from discontinued operations available to Genworth Financial, Inc.’s common stockholders of $186 million and $167 million, respectively. |
Summary of Operating Results _2
Summary of Operating Results Related to Discontinued Operations (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Parent Company [Member] | ||
Discontinued operation pretax income attributable to parent | $ 186 | $ 167 |
Genworth Canada MI [Member] | ||
Interest expense-term loan | $ 34 | $ 25 |
Schedule I Genworth Financial_2
Schedule I Genworth Financial, Inc. Summary of Investments-Other than Investments in Related Parties (Detail) $ in Millions | Dec. 31, 2020USD ($) | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | $ 66,603 | |
Carrying value | 77,240 | |
Commercial mortgage loans | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 6,743 | |
Carrying value | 6,743 | |
Policy Loans | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 1,978 | |
Carrying value | 1,978 | |
Other invested assets | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 1,738 | [1] |
Carrying value | 2,253 | [1] |
Fixed maturity securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 55,676 | |
Fair value | 65,790 | |
Carrying value | 65,790 | |
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 | 3,401 | |
Fair value | 4,805 | |
Carrying value | 4,805 | |
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 | 2,627 | |
Fair value | 3,170 | |
Carrying value | 3,170 | |
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 | 1,420 | |
Fair value | 1,559 | |
Carrying value | 1,559 | |
Fixed maturity securities | Bonds | Public Utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 5,143 | |
Fair value | 6,195 | |
Carrying value | 6,195 | |
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 | 43,085 | |
Fair value | 50,061 | |
Carrying value | 50,061 | |
Equity Securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 468 | |
Fair value | 476 | |
Carrying value | $ 476 | |
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Deferred tax asset | $ 1,099 | $ 1,365 | ||
Other assets | 444 | 443 | ||
Total assets | 105,747 | 101,342 | ||
Liabilities and stockholders' equity | ||||
Other liabilities | 1,718 | 1,386 | ||
Total liabilities | 89,927 | 86,710 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-in capital | 12,008 | 11,990 | ||
Net unrealized investment gains (losses) | ||||
Accumulated other comprehensive income (loss) | 4,425 | 3,433 | $ 2,044 | $ 3,027 |
Retained earnings | 1,584 | 1,461 | ||
Treasury stock, at cost | (2,700) | (2,700) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 15,318 | 14,185 | ||
Total liabilities and equity | 105,747 | 101,342 | ||
Parent Company | ||||
Assets | ||||
Investments in subsidiaries | 15,358 | 14,079 | ||
Deferred tax asset | 13 | 13 | ||
Other assets | 2 | 4 | ||
Intercompany notes receivable | 0 | 119 | ||
Total assets | 15,373 | 14,215 | ||
Liabilities and stockholders' equity | ||||
Other liabilities | 55 | 30 | ||
Total liabilities | 55 | 30 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-in capital | 12,008 | 11,990 | ||
Net unrealized investment gains (losses) | ||||
Accumulated other comprehensive income (loss) | 4,425 | 3,433 | ||
Retained earnings | 1,584 | 1,461 | ||
Treasury stock, at cost | (2,700) | (2,700) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 15,318 | 14,185 | ||
Total liabilities and equity | $ 15,373 | $ 14,215 |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||||
Revenues: | |||||||||||||||||||
Net investment income | $ 3,260 | $ 3,220 | $ 3,121 | ||||||||||||||||
Total revenues | $ 2,263 | [1] | $ 2,420 | [1] | $ 2,138 | [1] | $ 1,837 | [1] | $ 2,038 | $ 2,020 | $ 1,994 | $ 2,044 | 8,658 | 8,096 | 7,901 | ||||
Expenses: | |||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 988 | 962 | 943 | ||||||||||||||||
Interest expense | 202 | 239 | 256 | ||||||||||||||||
Loss before income taxes and equity in income of subsidiaries | 1,031 | 714 | 137 | ||||||||||||||||
Benefit from income taxes | 270 | 195 | 70 | ||||||||||||||||
Income from continuing operations | 297 | 417 | 79 | (66) | 36 | 128 | 143 | 148 | 727 | 455 | (3) | ||||||||
Income from discontinued operations, net of taxes | (30) | [2] | 1 | [2] | (520) | [2] | 0 | [2] | (31) | [3] | (80) | [3] | 60 | [3] | 62 | [3] | (549) | 11 | 230 |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 267 | $ 418 | $ (441) | $ (66) | $ (17) | $ 18 | $ 168 | $ 174 | 178 | 343 | 119 | ||||||||
Parent Company | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Net investment income | (3) | (3) | (3) | ||||||||||||||||
Total revenues | (3) | (3) | (3) | ||||||||||||||||
Expenses: | |||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 31 | 20 | 33 | ||||||||||||||||
Interest expense | 1 | 3 | 2 | ||||||||||||||||
Total expenses | 32 | 23 | 35 | ||||||||||||||||
Loss before income taxes and equity in income of subsidiaries | (35) | (26) | (38) | ||||||||||||||||
Benefit from income taxes | (2) | (3) | (6) | ||||||||||||||||
Equity in income of subsidiaries | 210 | 366 | 151 | ||||||||||||||||
Income from continuing operations | 177 | 343 | 119 | ||||||||||||||||
Income from discontinued operations, net of taxes | 1 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 178 | $ 343 | $ 119 | ||||||||||||||||
[1] | In the fourth quarter of 2020, we recorded lower net investment gains as compared to the third quarter of 2020. The higher net investment gains recorded in the third quarter of 2020 related to the sale of available-for-sale fixed maturity securities of $330 million driven primarily from the sale of U.S. government securities due to portfolio rebalancing and asset exposure management as a result of the prolonged low interest rate environment. This decrease to total revenues was partially offset by higher net investment income recorded in the fourth quarter of 2020 largely driven by bond calls and mortgage loan repayments of $40 million and limited partnerships of $38 million. | ||||||||||||||||||
[2] | In the fourth quarter of 2020, we recorded a loss from discontinued operations, net of taxes, of $30 million principally attributed to foreign currency remeasurement losses of $26 million, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022. See note 23 for additional details on discontinued operations. | ||||||||||||||||||
[3] | In the fourth quarter of 2019, we recorded an after-tax loss of approximately $110 million principally in connection with pending litigation involving our former lifestyle protection insurance business. See note 20 for additional information related to asserted claims regarding the sale of our lifestyle protection insurance business. We completed the sale of Genworth MI Canada Inc. (“Genworth Canada”) on December 12, 2019 and recorded an incremental gain of $43 million in the fourth quarter of 2019 predominantly related to a favorable tax position refinement. In addition, during the fourth quarter of 2019 through the sale closing date of December 12, 2019, we recorded $36 million of income from discontinued operations attributed to Genworth Canada. |
Schedule II Genworth Financia_4
Schedule II Genworth Financial, Inc. (Parent Company Only) (Statements of Comprehensive Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | [1],[2],[3],[4] | Sep. 30, 2020 | [1],[2],[3],[4] | Jun. 30, 2020 | [1],[2],[3],[4] | Mar. 31, 2020 | [1],[2],[3],[4] | Dec. 31, 2019 | [5],[6] | Sep. 30, 2019 | [5],[6] | Jun. 30, 2019 | [5],[6] | Mar. 31, 2019 | [5],[6] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income available to Genworth Financial, Inc.'s common stockholders | $ 266 | $ 436 | $ (418) | $ (72) | $ 24 | $ 58 | $ 218 | $ 230 | $ 212 | $ 530 | $ 297 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses | 764 | 0 | 0 | ||||||||||||||||
Net unrealized gains (losses) on securities with an allowance for credit losses | (6) | 0 | 0 | ||||||||||||||||
Derivatives qualifying as hedges | 209 | 221 | (298) | ||||||||||||||||
Foreign currency translation and other adjustments | 55 | 487 | (301) | ||||||||||||||||
Total other comprehensive income (loss) | 1,022 | 1,556 | (1,270) | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | 1,170 | 1,732 | (995) | ||||||||||||||||
Parent Company [Member] | |||||||||||||||||||
Net income available to Genworth Financial, Inc.'s common stockholders | 178 | 343 | 119 | ||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses | 764 | 0 | 0 | ||||||||||||||||
Net unrealized gains (losses) on securities with an allowance for credit losses | (6) | 0 | 0 | ||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 0 | 859 | (652) | ||||||||||||||||
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 2 | (2) | ||||||||||||||||
Derivatives qualifying as hedges | 209 | 221 | (298) | ||||||||||||||||
Foreign currency translation and other adjustments | 25 | 307 | (162) | ||||||||||||||||
Total other comprehensive income (loss) | 992 | 1,389 | (1,114) | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 1,170 | $ 1,732 | $ (995) | ||||||||||||||||
[1] | Given our assumption that COVID-19 has temporarily decreased the number of new claims submitted, our long-term care insurance business strengthened IBNR reserves in the fourth quarter of 2020 by $47 million. Additionally, our long-term care insurance business recorded a $91 million increase to claim reserves reflecting our assumption that COVID-19 accelerated mortality experience on the most vulnerable claimants, leaving the remaining claim population less likely to terminate compared to the pre-pandemic average population. Our U.S. mortgage insurance business recorded an unfavorable reserve adjustment of $37 million primarily due to slowing cure emergence patterns impacting the frequency of claim. Our Australia mortgage insurance business strengthened its loss reserves by $88 million, including its IBNR reserves, due to a refinement in methodology to better align with historical delinquency behavior, as well as to reflect delayed impacts from higher expected delinquencies and the pressured economic conditions caused by COVID-19. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2020. This review resulted in lower total benefits and expenses of $82 million from a net favorable unlocking in our term universal and universal life insurance products largely attributable to a model refinement in our term universal life insurance product related to persistency and grace period timing and lower projected cost of insurance assessments on our universal life insurance products. In addition, we recorded a DAC impairment of $63 million in our universal life insurance products due principally to lower future estimated gross profits. | ||||||||||||||||||
[2] | In the fourth quarter of 2020, our long-term care insurance business strengthened its reserves by $109 million after-tax. Our U.S. mortgage insurance and Australia mortgage insurance businesses strengthened their loss reserves by $29 million and $62 million, respectively, after-tax. Our life insurance business recorded a $60 million net favorable unlocking, net of taxes, related to its annual review of assumptions. This favorable unlocking in our life insurance business was partially offset by a DAC impairment of $50 million, net of taxes, as a result of recoverability testing. For all of the aforementioned transactions, see above under superscript (2) for additional details. | ||||||||||||||||||
[3] | In the fourth quarter of 2020, we recorded a loss from discontinued operations, net of taxes, of $30 million principally attributed to foreign currency remeasurement losses of $26 million, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022. See note 23 for additional details on discontinued operations. | ||||||||||||||||||
[4] | In the fourth quarter of 2020, we recorded lower net investment gains as compared to the third quarter of 2020. The higher net investment gains recorded in the third quarter of 2020 related to the sale of available-for-sale fixed maturity securities of $330 million driven primarily from the sale of U.S. government securities due to portfolio rebalancing and asset exposure management as a result of the prolonged low interest rate environment. This decrease to total revenues was partially offset by higher net investment income recorded in the fourth quarter of 2020 largely driven by bond calls and mortgage loan repayments of $40 million and limited partnerships of $38 million. | ||||||||||||||||||
[5] | In the fourth quarter of 2019, our life insurance business recorded a $107 million unfavorable unlocking, net of taxes, related to its annual review of assumptions in our universal and term universal life insurance products, as described above. This unfavorable unlocking in our life insurance business was partially offset by a favorable update of $11 million, net of taxes, in our U.S. mortgage insurance business in connection with a review of its single premium earnings pattern and from a favorable reserve adjustment of $10 million, net of taxes. | ||||||||||||||||||
[6] | In the fourth quarter of 2019, we recorded an after-tax loss of approximately $110 million principally in connection with pending litigation involving our former lifestyle protection insurance business. See note 20 for additional information related to asserted claims regarding the sale of our lifestyle protection insurance business. We completed the sale of Genworth MI Canada Inc. (“Genworth Canada”) on December 12, 2019 and recorded an incremental gain of $43 million in the fourth quarter of 2019 predominantly related to a favorable tax position refinement. In addition, during the fourth quarter of 2019 through the sale closing date of December 12, 2019, we recorded $36 million of income from discontinued operations attributed to Genworth Canada. |
Schedule II Genworth Financia_5
Schedule II Genworth Financial, Inc. (Parent Company Only) (Statements of Cash Flows) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | [3] | Jun. 30, 2020 | [3] | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | [6] | Jun. 30, 2019 | [6] | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Cash flows from (used by) operating activities: | |||||||||||||||||||
Net income available to Genworth Financial, Inc.'s common stockholders | $ 266 | [1],[2],[3],[4] | $ 436 | [1],[2],[4] | $ (418) | [1],[2],[4] | $ (72) | [1],[2],[3],[4] | $ 24 | [5],[6] | $ 58 | [5] | $ 218 | [5] | $ 230 | [5],[6] | $ 212 | $ 530 | $ 297 |
Less (income) loss from discontinued operations, net of taxes | 30 | [3] | $ (1) | $ 520 | 0 | [3] | 31 | [6] | $ 80 | $ (60) | (62) | [6] | 549 | (11) | (230) | ||||
Adjustments to reconcile net income available to Genworth Financial, Inc.'s common stockholders to net cash from (used by) operating activities: | |||||||||||||||||||
Deferred income taxes | 268 | 139 | 28 | ||||||||||||||||
Stock-based compensation expense | 40 | 27 | 35 | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | (142) | (358) | (166) | ||||||||||||||||
Current tax liabilities | (10) | 26 | 8 | ||||||||||||||||
Other liabilities and other policy-related balances | 1,042 | 609 | 598 | ||||||||||||||||
Net cash from operating activities | 1,960 | 2,079 | 1,633 | ||||||||||||||||
Cash flows from (used by) investing activities: | |||||||||||||||||||
Net cash from (used by) investing activities | (1,153) | 1,301 | (622) | ||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Other, net | (2) | (35) | (56) | ||||||||||||||||
Net cash used by financing activities | (1,507) | (2,217) | (1,621) | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 3,341 | 1,974 | 3,341 | 1,974 | |||||||||||||||
Cash, cash equivalents and restricted cash at end of year | 2,656 | 3,341 | 2,656 | 3,341 | 1,974 | ||||||||||||||
Parent Company | |||||||||||||||||||
Cash flows from (used by) operating activities: | |||||||||||||||||||
Net income available to Genworth Financial, Inc.'s common stockholders | 178 | 343 | 119 | ||||||||||||||||
Less (income) loss from discontinued operations, net of taxes | (1) | 0 | 0 | ||||||||||||||||
Adjustments to reconcile net income available to Genworth Financial, Inc.'s common stockholders to net cash from (used by) operating activities: | |||||||||||||||||||
Equity in income from subsidiaries | (210) | (366) | (151) | ||||||||||||||||
Dividends from subsidiaries | 0 | 250 | 50 | ||||||||||||||||
Deferred income taxes | (1) | 1 | 13 | ||||||||||||||||
Stock-based compensation expense | 39 | 26 | 35 | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | 2 | 0 | 0 | ||||||||||||||||
Current tax liabilities | (1) | 16 | (35) | ||||||||||||||||
Other liabilities and other policy-related balances | 11 | (17) | (13) | ||||||||||||||||
Net cash from operating activities | 17 | 253 | 18 | ||||||||||||||||
Cash flows from (used by) investing activities: | |||||||||||||||||||
Intercompany notes receivable | (10) | (119) | 0 | ||||||||||||||||
Capital contributions paid to subsidiaries | (2) | (5) | (6) | ||||||||||||||||
Net cash from (used by) investing activities | (12) | (124) | (6) | ||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Other, net | (5) | (7) | (2) | ||||||||||||||||
Intercompany notes payable | 0 | (122) | (10) | ||||||||||||||||
Net cash used by financing activities | (5) | (129) | (12) | ||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | 0 | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | $ 0 | $ 0 | 0 | 0 | 0 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of year | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||||
[1] | Given our assumption that COVID-19 has temporarily decreased the number of new claims submitted, our long-term care insurance business strengthened IBNR reserves in the fourth quarter of 2020 by $47 million. Additionally, our long-term care insurance business recorded a $91 million increase to claim reserves reflecting our assumption that COVID-19 accelerated mortality experience on the most vulnerable claimants, leaving the remaining claim population less likely to terminate compared to the pre-pandemic average population. Our U.S. mortgage insurance business recorded an unfavorable reserve adjustment of $37 million primarily due to slowing cure emergence patterns impacting the frequency of claim. Our Australia mortgage insurance business strengthened its loss reserves by $88 million, including its IBNR reserves, due to a refinement in methodology to better align with historical delinquency behavior, as well as to reflect delayed impacts from higher expected delinquencies and the pressured economic conditions caused by COVID-19. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2020. This review resulted in lower total benefits and expenses of $82 million from a net favorable unlocking in our term universal and universal life insurance products largely attributable to a model refinement in our term universal life insurance product related to persistency and grace period timing and lower projected cost of insurance assessments on our universal life insurance products. In addition, we recorded a DAC impairment of $63 million in our universal life insurance products due principally to lower future estimated gross profits. | ||||||||||||||||||
[2] | In the fourth quarter of 2020, our long-term care insurance business strengthened its reserves by $109 million after-tax. Our U.S. mortgage insurance and Australia mortgage insurance businesses strengthened their loss reserves by $29 million and $62 million, respectively, after-tax. Our life insurance business recorded a $60 million net favorable unlocking, net of taxes, related to its annual review of assumptions. This favorable unlocking in our life insurance business was partially offset by a DAC impairment of $50 million, net of taxes, as a result of recoverability testing. For all of the aforementioned transactions, see above under superscript (2) for additional details. | ||||||||||||||||||
[3] | In the fourth quarter of 2020, we recorded a loss from discontinued operations, net of taxes, of $30 million principally attributed to foreign currency remeasurement losses of $26 million, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022. See note 23 for additional details on discontinued operations. | ||||||||||||||||||
[4] | In the fourth quarter of 2020, we recorded lower net investment gains as compared to the third quarter of 2020. The higher net investment gains recorded in the third quarter of 2020 related to the sale of available-for-sale fixed maturity securities of $330 million driven primarily from the sale of U.S. government securities due to portfolio rebalancing and asset exposure management as a result of the prolonged low interest rate environment. This decrease to total revenues was partially offset by higher net investment income recorded in the fourth quarter of 2020 largely driven by bond calls and mortgage loan repayments of $40 million and limited partnerships of $38 million. | ||||||||||||||||||
[5] | In the fourth quarter of 2019, our life insurance business recorded a $107 million unfavorable unlocking, net of taxes, related to its annual review of assumptions in our universal and term universal life insurance products, as described above. This unfavorable unlocking in our life insurance business was partially offset by a favorable update of $11 million, net of taxes, in our U.S. mortgage insurance business in connection with a review of its single premium earnings pattern and from a favorable reserve adjustment of $10 million, net of taxes. | ||||||||||||||||||
[6] | In the fourth quarter of 2019, we recorded an after-tax loss of approximately $110 million principally in connection with pending litigation involving our former lifestyle protection insurance business. See note 20 for additional information related to asserted claims regarding the sale of our lifestyle protection insurance business. We completed the sale of Genworth MI Canada Inc. (“Genworth Canada”) on December 12, 2019 and recorded an incremental gain of $43 million in the fourth quarter of 2019 predominantly related to a favorable tax position refinement. In addition, during the fourth quarter of 2019 through the sale closing date of December 12, 2019, we recorded $36 million of income from discontinued operations attributed to Genworth Canada. |
Schedule II Genworth Financia_6
Schedule II Genworth Financial, Inc. (Parent Company Only) - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | [1] | Jun. 30, 2020 | [1] | Mar. 31, 2020 | [1] | Dec. 31, 2019 | Sep. 30, 2019 | [2] | Jun. 30, 2019 | [2] | Mar. 31, 2019 | [2] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2013 | |||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||
Deferred tax asset | $ 1,099 | $ 1,365 | $ 1,099 | $ 1,365 | ||||||||||||||||
Current income tax payable | 8 | 19 | 8 | 19 | ||||||||||||||||
Net cash received (paid) for taxes | (12) | (31) | $ (33) | |||||||||||||||||
Loss from discontinued operations, net of taxes | (30) | [1] | $ 1 | $ (520) | $ 0 | (31) | [2] | $ (80) | $ 60 | $ 62 | (549) | 11 | 230 | |||||||
Parent Company | ||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||
Deferred tax asset | 13 | 13 | 13 | 13 | ||||||||||||||||
Current income tax payable | $ 3 | $ 4 | 3 | 4 | ||||||||||||||||
Net cash received (paid) for taxes | 0 | 21 | (16) | |||||||||||||||||
Loss from discontinued operations, net of taxes | 1 | $ 0 | $ 0 | |||||||||||||||||
Genworth Holdings | ||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||
Percentage of subsidiary equity ownership | 100.00% | |||||||||||||||||||
Loans to related party forgiven | 129 | |||||||||||||||||||
Loss from discontinued operations, net of taxes | $ 549 | |||||||||||||||||||
[1] | In the fourth quarter of 2020, we recorded a loss from discontinued operations, net of taxes, of $30 million principally attributed to foreign currency remeasurement losses of $26 million, unfavorable tax charges of $17 million and other expenses of $8 million, mostly consisting of interest expense attributable to the promissory note owed to AXA. These losses were partially offset by derivative hedge gains of $21 million associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022. See note 23 for additional details on discontinued operations. | |||||||||||||||||||
[2] | In the fourth quarter of 2019, we recorded an after-tax loss of approximately $110 million principally in connection with pending litigation involving our former lifestyle protection insurance business. See note 20 for additional information related to asserted claims regarding the sale of our lifestyle protection insurance business. We completed the sale of Genworth MI Canada Inc. (“Genworth Canada”) on December 12, 2019 and recorded an incremental gain of $43 million in the fourth quarter of 2019 predominantly related to a favorable tax position refinement. In addition, during the fourth quarter of 2019 through the sale closing date of December 12, 2019, we recorded $36 million of income from discontinued operations attributed to Genworth Canada. |
Schedule III Genworth Financial
Schedule III Genworth Financial, Inc. Supplemental Insurance Information (Schedule of Supplemental Insurance Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | $ 1,529 | $ 1,836 | |
Future Policy Benefits | 42,695 | 40,384 | |
Policyholder Account Balances | 21,503 | 22,217 | |
Liability for Policy and Contract Claims | 11,817 | 10,958 | |
Unearned Premiums | 1,968 | 1,893 | |
Premium Revenue | 4,110 | 4,037 | $ 3,994 |
Net Investment Income | 3,260 | 3,220 | 3,121 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 5,940 | 5,740 | 6,217 |
Amortization of Deferred Acquisition Costs | 448 | 377 | 276 |
Other Operating Expenses | 1,239 | 1,265 | 1,271 |
Premiums Written | 4,091 | 3,932 | 3,857 |
U.S. Mortgage Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 29 | 30 | |
Future Policy Benefits | 0 | 0 | |
Policyholder Account Balances | 0 | 0 | |
Liability for Policy and Contract Claims | 555 | 233 | |
Unearned Premiums | 307 | 384 | |
Premium Revenue | 971 | 856 | 746 |
Net Investment Income | 133 | 117 | 93 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 381 | 50 | 36 |
Amortization of Deferred Acquisition Costs | 14 | 8 | 9 |
Other Operating Expenses | 231 | 198 | 174 |
Premiums Written | 894 | 818 | 764 |
Australia Mortgage Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 42 | 37 | |
Future Policy Benefits | 0 | 0 | |
Policyholder Account Balances | 0 | 0 | |
Liability for Policy and Contract Claims | 331 | 208 | |
Unearned Premiums | 1,193 | 1,008 | |
Premium Revenue | 274 | 312 | 373 |
Net Investment Income | 32 | 55 | 67 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 177 | 104 | 110 |
Amortization of Deferred Acquisition Costs | 11 | 13 | 16 |
Other Operating Expenses | 104 | 97 | 101 |
Premiums Written | 353 | 272 | 242 |
U.S. Life Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 1,319 | 1,613 | |
Future Policy Benefits | 42,693 | 40,382 | |
Policyholder Account Balances | 18,385 | 19,006 | |
Liability for Policy and Contract Claims | 10,908 | 10,500 | |
Unearned Premiums | 465 | 498 | |
Premium Revenue | 2,858 | 2,861 | 2,867 |
Net Investment Income | 2,878 | 2,852 | 2,781 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 5,164 | 5,398 | 5,877 |
Amortization of Deferred Acquisition Costs | 400 | 340 | 218 |
Other Operating Expenses | 643 | 653 | 639 |
Premiums Written | 2,837 | 2,834 | 2,843 |
Runoff | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 139 | 156 | |
Future Policy Benefits | 2 | 2 | |
Policyholder Account Balances | 3,118 | 3,211 | |
Liability for Policy and Contract Claims | 12 | 9 | |
Unearned Premiums | 3 | 3 | |
Premium Revenue | 0 | 0 | 0 |
Net Investment Income | 210 | 187 | 174 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 214 | 185 | 189 |
Amortization of Deferred Acquisition Costs | 23 | 16 | 33 |
Other Operating Expenses | 48 | 54 | 57 |
Premiums Written | 0 | 0 | 0 |
Corporate and Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 0 | 0 | |
Future Policy Benefits | 0 | 0 | |
Policyholder Account Balances | 0 | 0 | |
Liability for Policy and Contract Claims | 11 | 8 | |
Unearned Premiums | 0 | 0 | |
Premium Revenue | 7 | 8 | 8 |
Net Investment Income | 7 | 9 | 6 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 4 | 3 | 5 |
Amortization of Deferred Acquisition Costs | 0 | 0 | 0 |
Other Operating Expenses | 213 | 263 | 300 |
Premiums Written | $ 7 | $ 8 | $ 8 |