Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-32630 | |
Entity Registrant Name | FIDELITY NATIONAL FINANCIAL, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 16-1725106 | |
Entity Address, Address Line One | 601 Riverside Avenue | |
Entity Address, City or Town | Jacksonville | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32204 | |
City Area Code | 904 | |
Local Phone Number | 854-8100 | |
Title of 12(b) Security | FNF Common Stock, $0.0001 par value | |
Trading Symbol | FNF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 273,238,230 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001331875 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Investments: | ||
Fixed maturity securities available for sale, at fair value, at March 31, 2024 and December 31, 2023, at an amortized cost of $47,789 and $45,606, respectively, net of allowance for credit losses of $40 and $42, respectively, and includes pledged fixed maturity securities of $492 and $489, respectively, related to secured trust deposits | $ 44,566 | $ 42,373 |
Derivative investments | 1,024 | 797 |
Mortgage loans, net of allowance for credit losses of $67 and $66 at March 31, 2024 and December 31, 2023, respectively | 5,440 | 5,336 |
Investments in unconsolidated affiliates | 3,632 | 3,334 |
Other long-term investments | 735 | 703 |
Short-term investments, at March 31, 2024 and December 31, 2023 | 646 | 2,119 |
Total investments | 57,378 | 56,049 |
Cash and cash equivalents, at March 31, 2024 and December 31, 2023 includes $227 and $262, respectively, of pledged cash related to secured trust deposits | 3,517 | 2,767 |
Trade and notes receivables, net of allowance for credit losses of $31 and $32 at March 31, 2024 and December 31, 2023, respectively | 409 | 442 |
Reinsurance recoverable, net of allowance for credit losses of $21 and $21 at March 31, 2024 and December 31, 2023, respectively | 10,129 | 8,977 |
Goodwill | 5,107 | 4,830 |
Prepaid expenses and other assets | 1,899 | 1,900 |
Market risk benefits asset | 95 | 88 |
Lease assets | 348 | 348 |
Other intangible assets, net | 5,027 | 4,627 |
Title plants | 420 | 418 |
Property and equipment, net | 167 | 168 |
Total assets | 84,496 | 80,614 |
Liabilities: | ||
Contractholder funds | 50,875 | 48,798 |
Future policy benefits | 7,441 | 7,050 |
Accounts payable and accrued liabilities | 3,138 | 3,009 |
Market risk benefits liability | 425 | 403 |
Notes payable | 3,884 | 3,887 |
Reserve for title claim losses | 1,746 | 1,770 |
Funds withheld for reinsurance liabilities | 8,025 | 7,083 |
Secured trust deposits | 693 | 731 |
Lease liabilities | 390 | 394 |
Income taxes payable | 14 | 0 |
Deferred tax liability | 28 | 29 |
Total liabilities | 76,659 | 73,154 |
Equity: | ||
FNF common stock, $0.0001 par value; authorized 600,000,000 shares as of March 31, 2024 and December 31, 2023; outstanding of 273,238,445 and 273,251,449 as of March 31, 2024 and December 31, 2023, respectively, and issued of 329,206,677 and 329,185,916 as of March 31, 2024 and December 31, 2023, respectively | 0 | 0 |
Preferred stock, $0.0001 par value; authorized 50,000,000 shares; issued and outstanding, none | 0 | 0 |
Additional paid-in capital | 5,924 | 5,913 |
Retained earnings | 5,361 | 5,244 |
Accumulated other comprehensive loss | (2,029) | (2,119) |
Less: Treasury stock, 55,968,232 shares and 55,934,467 shares as of March 31, 2024 and December 31, 2023, respectively, at cost | (2,131) | (2,130) |
Total Fidelity National Financial, Inc. shareholders’ equity | 7,125 | 6,908 |
Non-controlling interests | 712 | 552 |
Total equity | 7,837 | 7,460 |
Total liabilities and equity | 84,496 | 80,614 |
Preferred securities | ||
Investments: | ||
Securities, at fair value | 542 | 621 |
Equity securities | ||
Investments: | ||
Securities, at fair value | $ 793 | $ 766 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Fixed maturity securities, available-for-sale securities, amortized cost | $ 47,789 | $ 45,606 |
Fixed maturity securities, available-for-sale securities, allowance for credit losses | 40 | 42 |
Available-for-sale securities, pledged securities, secured trust deposits | 492 | 489 |
Allowance for credit loss | 67 | 66 |
Cash, pledged, secured trust deposits | 227 | 262 |
Allowance for doubtful accounts, premiums and other receivables | 31 | 32 |
Expected credit losses on reinsurance recoverable | $ 21 | $ 21 |
Common stock, par or stated value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares, outstanding (in shares) | 273,238,445 | 273,251,449 |
Common stock, shares, issued (in shares) | 329,206,677 | 329,185,916 |
Preferred stock, par or stated value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock (in shares) | 55,968,232 | 55,934,467 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Direct title insurance premiums | $ 440 | $ 428 |
Agency title insurance premiums | 593 | 550 |
Escrow, title-related and other fees | 1,281 | 880 |
Interest and investment income | 710 | 611 |
Recognized gains and losses, net | 275 | 5 |
Total revenues | 3,299 | 2,474 |
Expenses: | ||
Personnel costs | 727 | 677 |
Agent commissions | 460 | 420 |
Other operating expenses | 369 | 360 |
Benefits and other changes in policy reserves | 1,161 | 812 |
Market risk benefit (gains) losses | (11) | 59 |
Depreciation and amortization | 167 | 134 |
Provision for title claim losses | 46 | 44 |
Interest expense | 49 | 42 |
Total expenses | 2,968 | 2,548 |
Earnings (loss) before income taxes and equity in earnings of unconsolidated affiliates | 331 | (74) |
Income tax expense | 63 | 14 |
Earnings (loss) before equity in earnings of unconsolidated affiliates | 268 | (88) |
Equity in earnings of unconsolidated affiliates | 1 | 0 |
Net earnings (loss) | 269 | (88) |
Less: Net earnings (loss) attributable to non-controlling interests | 21 | (29) |
Net earnings (loss) attributable to Fidelity National Financial, Inc. common shareholders | $ 248 | $ (59) |
Basic | ||
Net earnings (loss) per share from continuing operations attributable to common shareholders (in usd per share) | $ 0.92 | $ (0.22) |
Net earnings (loss) per share attributable to common shareholders, basic (in usd per share) | 0.92 | (0.22) |
Diluted | ||
Net earnings (loss) per share from continuing operations attributable to common shareholders (in usd per share) | 0.91 | (0.22) |
Net earnings (loss) per share attributable to common shareholders, diluted (in usd per share) | $ 0.91 | $ (0.22) |
Weighted average common shares outstanding - basic (in shares) | 271 | 270 |
Weighted average common shares outstanding - diluted (in shares) | 272 | 271 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Statement of Comprehensive Income [Abstract] | |||
Net earnings (loss) | $ 269 | $ (88) | |
Other comprehensive earnings (loss): | |||
Unrealized (loss) gain on investments and other financial instruments, net of adjustments to intangible assets and unearned revenue (excluding investments in unconsolidated affiliates) | [1] | (5) | 349 |
Other comprehensive earnings — unrealized gain on investments in unconsolidated affiliates | [2] | 13 | 11 |
Unrealized loss on foreign currency translation | [3] | (6) | 1 |
Reclassification adjustments for change in unrealized gains and losses included in net earnings | [4] | 13 | 35 |
Changes in current discount rate - future policy benefits | [5] | 91 | (100) |
Change in instrument-specific credit risk - market risk benefits | [6] | 1 | 7 |
Other comprehensive loss attributable to non-controlling interest | [7] | (17) | (43) |
Other comprehensive earnings | 90 | 260 | |
Comprehensive earnings | 359 | 172 | |
Less: Comprehensive earnings (loss) attributable to non-controlling interests | 21 | (29) | |
Comprehensive earnings attributable to Fidelity National Financial, Inc. common shareholders | $ 338 | $ 201 | |
[1] Net of income tax expense of $88 million for the three months ended March 31, 2023. Net of income tax expense of $4 million and $3 million for the three months ended March 31, 2024 and 2023, respectively. Net of income tax (benefit) expense of $(1) million and less than $1 million for the three months ended March 31, 2024 and 2023, respectively. Net of income tax expense of $4 million and $9 million for the three months ended March 31, 2024 and 2023, respectively. Net of income tax expense (benefit) of $24 million and $(27) million for the three months ended March 31, 2024 and 2023, respectively. Net of income tax expense of less than $1 million and $2 million for the three months ended March 31, 2024 and 2023, respectively. Net of income tax benefit of $5 million and $11 million for the three months ended March 31, 2024 and 2023, respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized (loss) gain on investments and other financial instruments, tax expense | $ 88 | |
Unrealized gain on investments in unconsolidated affiliates, tax expense | $ 4 | 3 |
Unrealized loss on foreign currency translation, tax benefit | (1) | 1 |
Reclassification adjustments for change in unrealized gains and losses included in net earnings, tax expense | 4 | 9 |
Changes in current discount rate - future policy benefits , tax expense (benefit) | 24 | (27) |
Changes in instrument-specific credit risk - market risk benefits, tax expense | 1 | 2 |
Other comprehensive loss attributable to non-controlling interest, tax (benefit) | $ 5 | $ 11 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings (Loss) | Treasury Stock | Non-controlling Interests | |
Beginning balance (in shares) at Dec. 31, 2022 | 328,000,000 | |||||||
Beginning balance, Treasury stock (in shares) at Dec. 31, 2022 | 55,000,000 | |||||||
Beginning balance at Dec. 31, 2022 | $ 6,569 | $ 0 | $ 5,870 | $ 5,225 | $ (2,870) | $ (2,109) | $ 453 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Treasury stock repurchased | (4) | $ (4) | ||||||
Purchase of incremental share in consolidated subsidiaries | (20) | (12) | (8) | |||||
Other comprehensive loss - unrealized loss on investments and other financial instruments | 349 | 349 | ||||||
Other comprehensive earnings — unrealized gain on investments in unconsolidated affiliates | 11 | [1] | 11 | |||||
Other comprehensive loss - unrealized loss on foreign currency translation | 1 | [2] | 1 | |||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 35 | [3] | 35 | |||||
Change in instrument-specific credit risk - market risk benefits | 7 | [4] | 7 | |||||
Change in current discount rate — liability for future policy benefits | (100) | [5] | (100) | |||||
Other comprehensive income (loss) associated with noncontrolling interests | (43) | [6] | (43) | 43 | ||||
Stock-based compensation | 13 | 13 | ||||||
Dividends declared, per common share | (122) | (122) | ||||||
Subsidiary dividends declared to non-controlling interests | (3) | (3) | ||||||
Net earnings (loss) | (88) | (59) | (29) | |||||
Ending balance (in shares) at Mar. 31, 2023 | 328,000,000 | |||||||
Ending balance, Treasury stock (in shares) at Mar. 31, 2023 | 55,000,000 | |||||||
Ending balance at Mar. 31, 2023 | $ 6,648 | $ 0 | 5,871 | 5,044 | (2,610) | $ (2,113) | 456 | |
Beginning balance (in shares) at Dec. 31, 2023 | 329,000,000 | |||||||
Beginning balance, Treasury stock (in shares) at Dec. 31, 2023 | 55,934,467 | 56,000,000 | ||||||
Beginning balance at Dec. 31, 2023 | $ 7,460 | $ 0 | 5,913 | 5,244 | (2,119) | $ (2,130) | 552 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
NCI associated with current period acquisitions | 136 | 136 | ||||||
Purchase of incremental share in consolidated subsidiaries | (7) | (4) | (3) | |||||
Exercise of stock options | 1 | 1 | ||||||
Other comprehensive loss - unrealized loss on investments and other financial instruments | (5) | (5) | ||||||
Other comprehensive earnings — unrealized gain on investments in unconsolidated affiliates | 13 | [1] | 13 | |||||
Other comprehensive loss - unrealized loss on foreign currency translation | (6) | [2] | (6) | |||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 13 | [3] | 13 | |||||
Change in instrument-specific credit risk - market risk benefits | 1 | [4] | 1 | |||||
Change in current discount rate — liability for future policy benefits | 91 | [5] | 91 | |||||
Other comprehensive income (loss) associated with noncontrolling interests | (17) | [6] | (1) | (17) | 18 | |||
Stock-based compensation | 16 | 15 | 1 | |||||
Shares withheld for taxes and in treasury | (7) | $ (1) | (6) | |||||
Dividends declared, per common share | (131) | (131) | ||||||
Subsidiary dividends declared to non-controlling interests | (7) | (7) | ||||||
Net earnings (loss) | $ 269 | 248 | 21 | |||||
Ending balance (in shares) at Mar. 31, 2024 | 329,000,000 | |||||||
Ending balance, Treasury stock (in shares) at Mar. 31, 2024 | 55,968,232 | 56,000,000 | ||||||
Ending balance at Mar. 31, 2024 | $ 7,837 | $ 0 | $ 5,924 | $ 5,361 | $ (2,029) | $ (2,131) | $ 712 | |
[1] Net of income tax expense of $4 million and $3 million for the three months ended March 31, 2024 and 2023, respectively. Net of income tax (benefit) expense of $(1) million and less than $1 million for the three months ended March 31, 2024 and 2023, respectively. Net of income tax expense of $4 million and $9 million for the three months ended March 31, 2024 and 2023, respectively. Net of income tax expense of less than $1 million and $2 million for the three months ended March 31, 2024 and 2023, respectively. Net of income tax expense (benefit) of $24 million and $(27) million for the three months ended March 31, 2024 and 2023, respectively. Net of income tax benefit of $5 million and $11 million for the three months ended March 31, 2024 and 2023, respectively. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividend per common share (in dollars per share) | $ 0.48 | $ 0.45 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ 269 | $ (88) |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 167 | 134 |
Equity in earnings of unconsolidated affiliates | (1) | 0 |
(Gain) loss on sales of investments and other assets and asset impairments, net | (25) | 213 |
Interest credited/index credits to contractholder account balances | 513 | 542 |
Change in market risk benefits, net | (11) | 60 |
Deferred policy acquisition costs and deferred sales inducements | (311) | (251) |
Charges assessed to contractholders for mortality and admin | (66) | (58) |
Non-cash lease costs | 33 | 35 |
Operating lease payments | (38) | (39) |
Distributions from unconsolidated affiliates, return on investment | 19 | 36 |
Stock-based compensation cost | 16 | 14 |
Change in NAV of limited partnerships, net | (49) | (57) |
Change in valuation of derivatives, equity and preferred securities, net | (254) | (216) |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Change in insurance recoverable | (22) | (79) |
Change in future policy benefits | 505 | 224 |
Change in funds withheld from reinsurers | 940 | 1,124 |
Net decrease in trade receivables | 8 | 45 |
Net decrease in reserve for title claim losses | (24) | (19) |
Net change in income taxes | 33 | (28) |
Net change in other assets and other liabilities | (111) | (174) |
Net cash provided by operating activities | 1,591 | 1,418 |
Cash flows from investing activities: | ||
Proceeds from sales, calls and maturities of investment securities | 1,783 | 1,091 |
Additions to property and equipment, capitalized software and title plants | (35) | (34) |
Purchases of investment securities | (3,819) | (4,077) |
Net proceeds from sales and maturities of short-term investment securities | 1,473 | 1,249 |
Additions to notes receivable | (3) | (4) |
Collections of notes receivable | 25 | 0 |
Acquisitions and dispositions | (284) | (273) |
Additional investments in unconsolidated affiliates | (272) | (327) |
Distributions from unconsolidated affiliates, return of investment | 36 | 90 |
Net cash used in investing activities | (1,096) | (2,285) |
Cash flows from financing activities: | ||
Borrowings | 7 | 500 |
Debt costs/equity issuance additions | (5) | (10) |
F&G Credit Agreement repayments, net | 0 | (35) |
Dividends paid | (130) | (122) |
Subsidiary dividends paid to non-controlling interest shareholders | (7) | (7) |
Exercise of stock options | 1 | 0 |
Additional investment in consolidated subsidiary | (7) | (20) |
Net change in secured trust deposits | (38) | (61) |
Payment of contingent consideration for prior period acquisitions | (5) | (2) |
Contractholder account deposits | 1,929 | 2,115 |
Contractholder account withdrawals | (1,483) | (950) |
Purchases of treasury stock | 0 | (6) |
Cash remitted for withholding taxes on share-based compensation | (7) | 0 |
Net cash provided by financing activities | 255 | 1,402 |
Net increase in cash and cash equivalents | 750 | 535 |
Cash and cash equivalents at beginning of period | 2,767 | 2,286 |
Cash and cash equivalents at end of period | $ 3,517 | $ 2,821 |
Basis of Financial Statements
Basis of Financial Statements | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statements | Basis of Financial Statements The financial information in this report presented for interim periods is unaudited and includes the accounts of Fidelity National Financial, Inc. and its subsidiaries (collectively, “we,” “us,” “our,” the "Company" or “FNF”) prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K (our "Annual Report") for the year ended December 31, 2023. Description of the Business We are a leading provider of (i) title insurance, escrow and other title-related services, including loan sub-servicing, valuations, default services and home warranty products, (ii) technology to the real estate and mortgage industries and (iii) annuity and life insurance products. FNF is one of the nation’s largest title insurance companies operating through its title insurance underwriters - Fidelity National Title Insurance Company ("FNTIC"), Chicago Title Insurance Company ("Chicago Title"), Commonwealth Land Title Insurance Company ("Commonwealth Title"), Alamo Title Insurance and National Title Insurance of New York Inc. - which collectively issue more title insurance policies than any other title company in the United States. Through our subsidiary, ServiceLink Holdings, LLC ("ServiceLink"), we provide mortgage transaction services, including title-related services and facilitation of production and management of mortgage loans. We are also a leading provider of insurance solutions serving retail annuity and life customers and institutional clients through our majority-owned subsidiary, F&G Annuities & Life ("F&G"). For information about our reportable segments refe r to Note H Segment Information . Recent Developments Successful Completion of Consent Solicitation On April 23, 2024, we announced the successful completion of consent solicitations of the holders of each of our 4.500% Senior Notes due 2028 (the “2028 Notes”), 3.400% Senior Notes due 2030 (the “2030 Notes”), 2.450% Senior Notes due 2031 (the “2031 Notes”) and 3.200% Senior Notes due 2051 (the “2051 Notes” and, collectively with the 2028 Notes, 2030 Notes and the 2031 Notes, the “Notes”; and each a “series of Notes”) to effect a certain amendment (the “Proposed Amendment”) to the indenture governing the Notes (the “Indenture”) with respect to each series of Notes, as described below. As of 5:00 p.m., New York City time, on April 22, 2024 (the “Expiration Time”), we had received consents from a majority in principal amount of each series of Notes outstanding for the adoption of the proposed amendment to the Indenture. Each of the consent solicitations was made pursuant to the consent solicitation statement, dated April 16, 2024 (the “Consent Solicitation Statement”). A supplemental indenture giving effect to the Proposed Amendment with respect to each series of Notes was executed promptly. Upon its execution, the supplemental indenture is effective and constitutes a binding agreement between the Company and the trustee. Immediately prior to the consummation of our redomestication, by conversion, from a corporation organized under the laws of the State of Delaware to a corporation organized under the laws of the State of Nevada (the “Redomestication”), we will pay holders of each series of Notes who validly delivered their consents at or prior to the Expiration Time (and did not validly revoke such consents) the Consent Fee described in the Consent Solicitation Statement. No Consent Fee will be paid with respect to a series of Notes if any of the consent solicitations are terminated prior to the proposed amendment becoming effective or if we abandon the Redomestication or if the Redomestication is not completed for any reason whatsoever. We are not required to consummate the Redomestication even if we have received the requisite consents for the Notes and the approval of our shareholders to the Redomestication. If the Redomestication is abandoned prior to consummation or otherwise not completed for any reason whatsoever (including, without limitation, because we determine to effect a redomestication by way of merger or otherwise), or the conditions to the consent solicitations are not satisfied or waived, then no Consent Fee shall be payable and the Proposed Amendment contained in the supplemental indenture described above will not become operative. Amendment to our Revolving Credit Facility On February 16, 2024, we entered into a Sixth Amended and Restated Credit Agreement for our $800 million revolving credit facility (the "Amended Revolving Credit Facility") with Bank of America, N.A., as administrative agent and other agents party thereto (the "Sixth Restated Credit Agreement"). Among other changes, the Sixth Amended and Restated Credit Agreement amends the Revolving Credit Facility to extend the maturity date from October 29, 2025, to February 16, 2029. For further information related to the Amended Revolving Credit Facility and the Sixth Restated Credit Agreement refer to Note G Notes Payable in our Annual Report on Form 10-K for the year ended December 31, 2023. Amendment to the F&G Credit Agreement On February 16, 2024, we entered into a Second Amended and Restated F&G Credit Agreement of our $665 million credit agreement, with the guarantors party thereto, the financial institutions party thereto as lenders, and Bank of America, N.A., as administrative agent, swing line lender and an issuing bank (the "Second Amended and Restated F&G Credit Agreement"). Among other changes, the Second Amended and Restated F&G Credit Agreement amends the Amended F&G Credit Agreement to extend the maturity date and increase the aggregate principal amount of commitments under the revolving credit facility to $750 million. For more information related to the Second Amended and Restated F&G Credit Agreement refer to Note G Notes Payable in our Annual Report on Form 10-K for the year ended December 31, 2023. Acquisition of Roar On January 2, 2024, F&G acquired a 70% majority ownership stake in the equity of Roar Joint Venture, LLC ("Roar"). Roar wholesales life insurance and annuity products to banks and broker dealers through a network of agents. Total initial consideration is comprised of cash of $269 million and $48 million of contingent consideration. Under the terms of the purchase agreement, the Company has agreed to make cash payments of up to $90 million over a three year period upon the achievement by Roar of certain earnings before interest, taxes, depreciation and amortization ("EBITDA") milestones. For further information related to the acquisition of Roar, refer to Note N Acquisitions . Investment of $250 million in F&G On January 12, 2024, we completed a $250 million preferred stock investment in F&G. F&G will use the net proceeds from the investment to support growth of its assets under management. Under the terms of the agreement, we have agreed to invest $250 million in exchange for 5 million shares of F&G's 6.875% Series A Mandatory Convertible Preferred Stock, par value $0.001 per share (the "Mandatory Convertible Preferred Stock"). Each share of Mandatory Convertible Preferred Stock will have a liquidation preference of $50.00 per share. Unless earlier converted at the option of the holder, each outstanding share of the Mandatory Convertible Preferred Stock will automatically convert into shares of common stock of F&G on January 15, 2027 (the "Mandatory Conversion Date"). Upon conversion on the Mandatory Conversion Date, the conversion rate for each share of the Mandatory Convertible Preferred Stock will be no more than 1.1111 shares of common stock and no less than 0.9456 shares of common stock per share of Mandatory Convertible Preferred Stock, depending on the value of F&G's common stock. The preferred stock investment in F&G eliminates upon consolidation. Income Tax Income tax expense was $63 million and $14 million in the three months ended March 31, 2024 and 2023, respectively. Income tax expense as a percentage of earnings (loss) before income taxes was 19% and (19)% in the three months ended March 31, 2024 and 2023, respectively. The increase in income tax expense as a percentage of earnings (loss) before taxes in the three months ended March 31, 2024 as compared to the corresponding period in 2023 is primarily attributable to the 2023 period having income tax expense, due to a valuation allowance increase, despite there being a 2023 pre-tax loss. Earnings Per Share Basic earnings per share, as presented on the unaudited Condensed Consolidated Statement of Operations, is computed by dividing net earnings available to common shareholders in a given period by the weighted average number of common shares outstanding during such period. In periods when earnings are positive, diluted earnings per share is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding plus assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted loss per share is equal to basic loss per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. We have granted certain stock options and shares of restricted stock, which have been treated as common share equivalents for purposes of calculating diluted earnings per share for periods in which positive earnings have been reported. Options or other instruments, which provide the ability to purchase shares of our common stock that are antidilutive, are excluded from the computation of diluted earnings per share. There were fewer than 1 million antidilutive instruments outstanding during the three months ended March 31, 2024 and 2023. Unconsolidated Owned Distribution Investments For the three months ended March 31, 2024 and 2023, we paid approximately $50 million and $37 million, respectively, in commissions on sales through our unconsolidated funded owned distribution investments and their affiliates, with the acquisition expense deferred and amortized in Depreciation and amortization on the accompanying unaudited Condensed Consolidated Statements of Operations. Recent Accounting Pronouncements Adopted Pronouncements In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-02, Accounting for Investments in Tax Credit Structure Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force). The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. We adopted this standard on January 1, 2024, as required, and there was no material impact to our unaudited Condensed Consolidated Financial Statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this update affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction and clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. Additionally, the amendments require the following disclosures for equity securities subject to contractual sale restrictions: the fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet, the nature and remaining duration of the restriction(s), and the circumstances that could cause a lapse in the restriction(s). The amendments in this update do not change the principles of fair value measurement, rather, they clarify those principles when measuring the fair value of an equity security subject to a contractual sale restriction and improve current GAAP by reducing diversity in practice, reducing the cost and complexity in measuring fair value, and increasing comparability of financial information across reporting entities that hold those investments. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We adopted this standard as of January 1, 2024, and it did not have a material impact on our Consolidated Financial Statements and related disclosures upon adoption. Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expense categories that are regularly provided to the chief operating decision maker (CODM) and included in each reported measure of a segment’s profit or loss. In addition, the amendments enhance interim disclosure requirements that are currently required annually, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements. The amendments in this update are incremental to the current requirements of Topic 280 and do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The enhanced segment disclosure requirements apply retrospectively to all prior periods presented in the financial statements. The significant segment expense and other segment item amounts disclosed in prior periods shall be based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments in this update are effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. Early adoption is permitted, and the updates must be applied retrospectively to all periods presented in the financial statements. We do not currently expect to early adopt this standard and are in the process of assessing its impact on our disclosures upon adoption. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update enhance the transparency of the income tax disclosures by expanding on the disclosures required annually. The amendments require entities to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign income taxes, in addition to providing details about the reconciling items in some categories if above a quantitative threshold. Additionally, the amendments require annual disclosure of income taxes paid (net of refunds received) disaggregated by jurisdiction based on a quantitative threshold. The amendments in this update are effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis, however, retrospective application is permitted. We do not currently expect to early adopt this standard and are in the process of assessing its impact on our disclosures upon adoption. |
Summary of Reserve for Title Cl
Summary of Reserve for Title Claim Losses | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Summary of Reserve for Title Claim Losses | Summary of Reserve for Title Claim Losses A summary of the reserve for title claim losses follows: Three months ended March 31, 2024 2023 (In millions) Beginning balance $ 1,770 $ 1,810 Change in insurance recoverable — — Claim loss provision related to: Current year 46 43 Total title claim loss provision 46 43 Claims paid, net of recoupments related to: Current year (2) (1) Prior years (68) (61) Total title claims paid, net of recoupments (70) (62) Ending balance of claim loss reserve for title insurance $ 1,746 $ 1,791 Provision for title insurance claim losses as a percentage of title insurance premiums 4.5 % 4.5 % Several lawsuits were filed by various parties against Chicago Title Company and Chicago Title Insurance Company as its principal (collectively, the “Named Companies”) by plaintiffs claiming they were investors who were solicited by Gina Champion-Cain through her former company, ANI Development LLC (“ANI”), or other affiliates to provide funds placed in an escrow account that purportedly were to be used for high-interest, short-term loans to parties seeking to acquire California alcoholic beverage licenses. Plaintiffs further alleged that employees of Chicago Title Company assisted Ms. Champion-Cain and her entities in diverting the funds placed into an escrow account maintained by Chicago Title Company into which some of the plaintiffs’ funds were deposited. In connection with the alcoholic beverage license scheme, the SEC filed a civil enforcement proceeding asserting claims for securities fraud against Champion-Cain and ANI in a lawsuit styled, Securities and Exchange Commission v. Gina Champion-Cain and ANI Development, LLC , pending in the United States District Court for the Southern District of California. The receiver, who was appointed by the court to preserve the assets of the defendant affiliated entities, then filed a lawsuit in San Diego County Superior Court against the Named Companies seeking damages in a lawsuit styled, Krista Freitag v. Chicago Title Co. and Chicago Title Ins. Co. The Named Companies reached a global settlement with the receiver and several other investor claimants and jointly sought court approval of the global settlement and entry of an order barring any claims against the Named Companies related to the alcoholic beverage license scheme. On November 23, 2022, the federal court overruled any objections by non-joining investors and entered an order approving the global settlement barring further claims against the Named Companies (“Settlement and Bar Order”). After her receipt of the settlement funds, the receiver dismissed the lawsuit against the Named Companies. Some of the non-joining investor claimants who objected to entry of the Settlement and Bar Order appealed the decision to the United States Court of Appeals for the Ninth Circuit by (Cases 22-56206, 22-56208, and 23-55083), and appellate oral argument is expected to be held later this year. Chicago Title Company has also resolved a number of other pre-suit claims and previously-disclosed lawsuits from both individual and groups of alleged investors under confidential terms. Based on the facts and circumstances of the remaining claims, including the settlements already reached, we have recorded reserves included in our reserve for title claim losses, which we believe are adequate to cover losses related to this matter, and believe that our reserves for title claim losses are adequate. We continually upda te loss reserve estimates as new information becomes known, new loss patterns emerge, or as other contributing factors are considered and incorporated into the analysis of reserve for claim losses. Estimating future title loss payments is difficult because of the complex nature of title claims, the long periods of time over which claims are paid, significantly varying dollar amounts of individual claims and other factors. Due to the uncertainty inherent in the process and to the judgment used by management, the ultimate liability may be greater or less than our current reserves. If actual claims loss development varies from what is currently expected and is not offset by other factors, it is possible that additional reserve adjustments may be required in future periods in order to maintain our recorded reserve within a reasonable range of our actuary's central estimate. Our U.S. insurance subsidiaries, FGL Insurance, FGL NY Insurance, Raven Re and Corbeau Re file financial statements with state insurance regulatory authorities and, with the exception of Raven Re, with the National Association of Insurance Commissioners (“NAIC”) that are prepared in accordance with Statutory Accounting Principles (“SAP”) prescribed or permitted by such authorities, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the NAIC as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between SAP financial statements and financial statements prepared in accordance with GAAP are that SAP financial statements do not reflect VOBA, DAC, and DSI, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contractholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. Accordingly, SAP operating results and SAP capital and surplus may differ substantially from amounts reported in the GAAP basis financial statements for comparable items. Our non-U.S. insurance subsidiaries, F&G Life Re Ltd (Bermuda) and F&G Cayman Re Ltd (“F&G Cayman Re”), file financial statements with their respective regulators. U.S. Companies Our principal insurance subsidiaries' statutory financial statements are based on a December 31 year end. Statutory net income and statutory capital and surplus of our wholly owned insurance subsidiaries as of March 31, 2024 and December 31, 2023, were as follows (in millions): Subsidiary (state of domicile) (a) FGL Insurance FGL NY Insurance (NY) Raven Re Corbeau Re Statutory net income (loss): For the three months ended March 31, 2024 $ — $ 2 $ 15 $ (134) For the three months ended March 31, 2023 (3) 1 14 — Statutory capital and surplus: March 31, 2024 $ 1,940 $ 89 $ 155 $ 156 December 31, 2023 2,009 86 140 171 (a) FGL NY Insurance, Raven Re and Corbeau Re are subsidiaries of FGL Insurance, and the columns should not be added together. Corbeau Re was incorporated on September 1, 2023. Non-U.S. Companies Net income and capital and surplus of our wholly owned Bermuda and Cayman Islands regulated insurance subsidiaries under U.S. GAAP were as follows (in millions): Subsidiary (country of domicile) F&G Cayman Re (Cayman Islands) F&G Life Re (Bermuda) Statutory net income (loss): For the three months ended March 31, 2024 $ (31) $ 49 For the three months ended March 31, 2023 35 68 Statutory capital and surplus: March 31, 2024 $ 143 $ 61 December 31, 2023 114 11 There have been no material changes to the prescribed and permitted practices for our U.S. insurance subsidiaries, which were detailed in our Annual Report on Form 10-K, and no significant changes in the regulatory status of our insurance subsidiaries as of March 31, 2024. The prescribed and permitted statutory accounting practices have no impact on our unaudited Condensed Consolidated Financial Statements, which are prepared in accordance with GAAP. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset, or non-performance risk, which may include our own credit risk. We estimate an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market for that asset or liability in the absence of a principal market as opposed to the price that would be paid to acquire the asset or assume a liability (“entry price”). We categorize financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique, along with net asset value. The three-level hierarchy for fair value measurement is defined as follows: Level 1 - Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date. Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads, and yield curves. Level 3 - Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date based on the best information available in the circumstances. Net Asset Value ("NAV") - Certain equity investments are measured using NAV as a practical expedient in determining fair value. In addition, our unconsolidated affiliates (primarily limited partnerships) are primarily accounted for using the equity method of accounting with fair value determined using NAV as a practical expedient. Our carrying value reflects our pro rata ownership percentage as indicated by NAV in the unconsolidated affiliate's financial statements, which we may adjust if we determine NAV is not calculated consistent with investment company fair value principles. The underlying investments of the unconsolidated affiliates may have significant unobservable inputs, which may include, but are not limited to, comparable multiples and weighted average cost of capital rates applied in valuation models or a discounted cash flow model. Additionally, management inquires quarterly with the general partner to determine whether any credit or other market events have occurred since prior period financial statements to ensure any material events are properly included in current period valuation and investment income In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is 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 investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. In addition to the unobservable inputs, Level 3 fair value investments may include observable components, which are components that are actively quoted or can be validated to market-based sources. The estimated fair values of our financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, portions of other long-term investments and debt, which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows: March 31, 2024 Level 1 Level 2 Level 3 NAV Fair Value Assets (In millions) Cash and cash equivalents $ 3,517 $ — $ — $ — $ 3,517 Fixed maturity securities, available-for-sale: Asset-backed securities — 7,379 7,736 — 15,115 Commercial mortgage-backed securities — 4,806 12 — 4,818 Corporates 25 16,762 2,184 — 18,971 Hybrids 99 534 — — 633 Municipals — 1,529 18 — 1,547 Residential mortgage-backed securities — 2,460 4 — 2,464 U.S. Government 682 16 — — 698 Foreign Governments — 315 5 — 320 Short term investments 637 — 9 — 646 Preferred securities 192 342 8 — 542 Equity securities 720 — 14 59 793 Derivative investments — 1,015 9 — 1,024 Investment in unconsolidated affiliates — — 343 — 343 Reinsurance related embedded derivative, included in other assets — 134 — — 134 Market risk benefits asset — — 95 — 95 Other long-term investments — — 39 — 39 Total financial assets at fair value $ 5,872 $ 35,292 $ 10,476 $ 59 $ 51,699 Liabilities Derivatives: Indexed annuities/IUL embedded derivatives, included in contractholder funds — — 4,679 — 4,679 Interest rate swaps — — 19 — 19 Call options 3 — — — 3 Contingent consideration obligation — — 57 — 57 Market risk benefits liability — — 425 — 425 Total financial liabilities at fair value $ 3 $ — $ 5,180 $ — $ 5,183 December 31, 2023 Level 1 Level 2 Level 3 NAV Fair Value Assets (In millions) Cash and cash equivalents $ 2,767 $ — $ — $ — $ 2,767 Fixed maturity securities, available-for-sale: Asset-backed securities — 7,220 7,122 — 14,342 Commercial mortgage-backed securities — 4,457 18 — 4,475 Corporates 25 15,892 1,979 — 17,896 Hybrids 95 523 — — 618 Municipals — 1,562 49 — 1,611 Residential mortgage-backed securities — 2,426 3 — 2,429 U.S. Government 662 16 — — 678 Foreign Governments — 308 16 — 324 Short term investments 2,111 8 — — 2,119 Preferred securities 214 399 8 — 621 Equity securities 692 — 15 59 766 Derivative investments — 740 57 — 797 Investment in unconsolidated affiliates — — 285 — 285 Reinsurance related embedded derivative, included in other assets — 152 — — 152 Market risk benefits asset — — 88 — 88 Other long-term investments — — 37 — 37 Total financial assets at fair value $ 6,566 $ 33,703 $ 9,677 $ 59 $ 50,005 Liabilities Derivatives: Indexed annuities/ IUL embedded derivatives, included in contractholder funds — — 4,258 — 4,258 Market risk benefits liability — — 403 — 403 Derivative instruments - futures contracts 1 — — 1 Total financial liabilities at fair value $ 1 $ — $ 4,661 $ — $ 4,662 Valuation Methodologies Cash and Cash Equivalents The carrying amounts reported in the unaudited Condensed Consolidated Balance Sheets for these instruments approximate fair value. Fixed Maturity Preferred and Equity Securities We measure the fair value of our securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity, preferred or equity security, and we will then consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach, which utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach include third-party pricing services, independent broker quotations, or pricing matrices. We use observable and unobservable inputs in our valuation methodologies. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. In addition, market indicators and industry and economic events are monitored and further market data will be acquired when certain thresholds are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. The significant input used in the fair value measurement of equity securities for which the market approach valuation technique is employed is yield for comparable securities. Increases or decreases in the yields would result in lower or higher, respectively, fair value measurements. For broker-quoted only securities, quotes from market makers or broker-dealers are obtained from sources recognized to be market participants. We believe the broker quotes are prices at which trades could be executed based on historical trades executed at broker-quoted or slightly higher prices. We analyze the third-party valuation methodologies and related inputs to perform assessments to determine the appropriate level within the fair value hierarchy. However, we did not adjust prices received from third parties as of March 31, 2024 or December 31, 2023. Certain equity investments are measured using NAV as a practical expedient in determining fair value. Derivative Financial Instruments Our call options, futures contracts, and interest rate swaps can either be exchange traded or over the counter. Exchange traded derivatives typically fall within Level 1 of the fair value hierarchy if there is active trading activity. Two methods are used to value over-the-counter derivatives. When required inputs are available, certain derivatives are valued using valuation pricing models, which represent what we would expect to receive or pay at the balance sheet date if we cancelled or exercised the derivative, or entered into offsetting positions. Valuation models require a variety of inputs, which include the use of market-observable inputs, including interest rate, yield curve volatilities, and other factors. These over-the-counter derivatives are typically classified within Level 2 of the fair value hierarchy as the majority trade in liquid markets, we can verify model inputs and model selection does not involve significant management judgment. When inputs aren’t available for valuation models, certain over-the-counter derivatives are valued using independent broker quotes, which are based on unobservable market data and classified within Level 3 . The fair value of the reinsurance-related embedded derivatives in our funds withheld reinsurance agreements are estimated based upon the fair value of the assets supporting the funds withheld from reinsurance liabilities. The fair value of the assets is based on a quoted market price of similar assets (Level 2), and therefore the fair value of the embedded derivative is based on market-observable inputs and classified as Level 2. The fair value measurement of the indexed annuities/indexed universal life ("IUL") embedded derivatives included in contractholder funds is determined through a combination of market observable information and significant unobservable inputs using the option budget method. The market observable inputs are the market value of option and treasury rates. The significant unobservable inputs are the budgeted option cost (i.e., the expected cost to purchase call options in future periods to fund the equity indexed linked feature), surrender rates, mortality multiplier and non-performance spread. The mortality multiplier at March 31, 2024 and December 31, 2023 was applied to the 2012 Individual Annuity mortality tables. Increases or decreases in the market value of an option in isolation would result in a higher or lower, respectively, fair value measurement. Increases or decreases in treasury rates, mortality multiplier, surrender rates, or non-performance spread in isolation would result in a lower or higher fair value measurement, respectively. Generally, a change in any one unobservable input would not directly result in a change in any other unobservable input. Investments in Unconsolidated affiliates We have elected the fair value option (“FVO”) for certain investments in unconsolidated affiliates as we believe this better aligns them with other investments in unconsolidated affiliates that are measured using NAV as a practical expedient in determining fair value. Investments measured using the fair value option are included in Level 3 and the fair value of these investments are determined using either a multiple of the affiliates’ EBITDA, which is derived from market analysis of transactions involving comparable companies, or an adjusted transaction value, which contemplates measures such as EBITDA margins, revenue growth over certain time periods, growth opportunities and marketability. The fair values are based on the affiliates’ financial information. The inputs are usually considered unobservable, as not all market participants have access to this data. Short-term Investments The carrying amounts reported in the unaudited Condensed Consolidated Balance Sheets for these instruments approximate fair value. Other Long-term Investments We hold a fund-linked note, which provides for an additional payment at maturity based on the value of an embedded derivative based on the actual return of a dedicated return fund. Fair value of the embedded derivative is based on an unobservable input, the NAV of the fund at the balance sheet date. The embedded derivative is similar to a call option on the NAV of the fund with a strike price of zero since F&G will not be required to make any additional payments at maturity of the fund-linked note in order to receive the NAV of the fund on the maturity date. A Black-Scholes model determines the NAV of the fund as the fair value of the call option regardless of the values used for the other inputs to the option pricing model. The NAV of the fund is provided by the fund manager at the end of each calendar month and represents the value an investor would receive if it withdrew its investment on the balance sheet date. Therefore, the key unobservable input used in the Black-Scholes model is the value of the fund. As the value of the fund increases or decreases, the fair value of the embedded derivative will increase or decrease. See further discussion on the available-for-sale embedded derivative in Note E Derivative Financial Instruments . The fair value of the credit-linked note is based on a weighted average of a broker quote and a discounted cash flow analysis. The discounted cash flow approach is based on the expected portfolio cash flows and amortization schedule reflecting investment expectations, adjusted for assumptions on the portfolio's default and recovery rates, and the note's discount rate. The fair value of the note is provided by the fund manager at the end of each quarter. Contingent Consideration The contingent consideration liability is measured at fair value using a discounted cash flow model applied using a Monte Carlo simulation of estimated EBITDA at each measurement period and for each simulated path relative to contractual EBITDA milestones. The Monte Carlo simulation utilizes a risk-adjusted discount rate, volatility assumption, and risk-free rates to assess the probability Roar's EBITDA trajectory reaches required milestones for the earn out payments to be made. The discounted cash flow approach applies a company-specific discount rate based on F&G credit profile to future expected earn out payments to calculate the estimated fair value based on the average outcome from the simulation. See further discussion on the contingent consideration in Note N - Acquisitions. Market Risk Benefits Market Risk Benefits ("MRBs") are measured at fair value using an attributed fee measurement approach where attributed fees are explicit rider charges collectible from the policyholder used to cover the excess benefits. The fair value is calculated using a risk neutral valuation method and is based on current net amounts at risk, market data, internal and industry experience, and other factors. The balances are computed using assumptions including mortality, full and partial surrender, rider benefit utilization, risk-free rates including non-performance spread and risk margin, market value of options and economic scenarios. Policyholder behavior assumptions are reviewed at least annually, typically in the third quarter, for any revisions. See further discussion on MRBs in Note O - Market Risk Benefits . Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of March 31, 2024 and December 31, 2023, excluding assets and liabilities for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services), are as follow: Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) March 31, 2024 (In millions) March 31, 2024 Assets Asset-backed securities $ 89 Third-Party Valuation Discount Rate 5.27% - 6.54% (6.03%) Commercial mortgage-backed securities 1 Third-Party Valuation Discount Rate 6.90% - 7.84% (7.22%) Corporates 4 Discounted Cash Flow Discount Rate 43.75% - 100.00% (57.07%) Corporates 760 Third-Party Valuation Discount Rate 4.16% - 12.87% (7.06%) Residential mortgage-backed securities 3 Third-Party Valuation Discount Rate 5.64% - 5.64% (5.64%) Foreign Governments 5 Third-Party Valuation Discount Rate 6.77% - 6.77% (6.77%) Investment in unconsolidated affiliates 343 Market Comparable Company Analysis EBITDA Multiple 14.1x - 20.2x (16x) Adjusted Transaction Value N/A N/A Preferred securities 1 Discounted Cash Flow Discount rate 100.00% - 100.00% (100.00%) Equity securities 7 Discounted Cash Flow Discount rate 10.90% - 10.90% (10.90%) Market Comparable Company Analysis EBITDA multiple 6x - 6x (6x) Other long-term investments: Available-for-sale embedded derivative 30 Black Scholes Model Market Value of AnchorPath Fund 100.00% Market risk benefits asset 95 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.13%) Partial Withdrawal Rates 2.00% - 20.41% (2.50%) Non-Performance Spread 0.35% - 1.02% (0.87%) GMWB Utilization 50.00% - 60.00% (50.81%) Total financial assets at fair value (a) $ 1,338 Liabilities Derivative investments: Indexed annuity/ IUL embedded derivatives, included in contractholder funds $ 4,679 Discounted Cash Flow Market Value of Option 0.00% - 24.11% (3.52%) Mortality Multiplier 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 70.00% (6.80%) Partial Withdrawals 2.00% - 35.71% (2.74%) Non-Performance Spread 0.35% - 1.02% (0.87%) Option Cost 0.07% - 5.70% (2.47%) Contingent consideration 57 Discounted Cash Flow Risk-Adjusted Discount Rate 13.50% - 13.50% (13.50%) EBITDA Volatility 35.00% - 35.00% (35.00%) Counterparty-Discount Rate 7.00% - 7.00% (7.00%) Market risk benefits liability 425 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.13%) Partial Withdrawal Rates 2.00% - 20.41% (2.50%) Non-Performance Spread 0.35% - 1.02% (0.87%) GMWB Utilization 50.00% - 60.00% (50.81%) Total financial liabilities at fair value (a) $ 5,161 (a) Assets of $9,138 million and liabilities of $19 million for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services) are excluded from the respective totals in the table above. Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2023 (In millions) December 31, 2023 Assets Asset-backed securities $ 57 Third-Party Valuation Discount Rate 5.09% - 6.95% (6.00%) Corporates 787 Third-Party Valuation Discount Rate 0.00% - 12.87% (6.91%) Corporates 8 Discounted Cash Flow Discount Rate 44.00% - 100.00% (75.20%) Municipals 32 Third-Party Valuation Discount Rate 6.25% - 6.25% (6.25%) Residential mortgage-backed securities 3 Third-Party Valuation Discount Rate 5.46% - 5.46% (5.46%) Foreign Governments 16 Third-Party Valuation Discount Rate 6.94% - 7.68% (7.45%) Investment in unconsolidated affiliates 285 Market Comparable Company Analysis EBITDA Multiple 4.4x - 31.8x (23.2x) Preferred securities 1 Discounted Cash Flow Discount rate 100.00% Equity securities 7 Discounted Cash Flow Discount rate 11.50% - 11.50% (11.50%) Other long-term investments: Available-for-sale embedded derivative 28 Black Scholes Model Market Value of Fund 100.00% Market risk benefits asset 88 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.22%) Partial Withdrawal Rates —% - 23.26% (2.50%) Non-Performance Spread 0.38% - 1.10% (0.96%) GMWB Utilization 50.00% - 60.00% (50.81%) Total financial assets at fair value (a) $ 1,312 Liabilities Derivatives Indexed annuity/ IUL embedded derivatives, included in contractholder funds 4,258 Discounted Cash Flow Market Value of Option 0.00% - 18.93% (2.63%) Swap rates 3.84% - 5.26% (4.55%) Mortality Multiplier 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 70.00% (6.83%) Partial Withdrawals 2.00% - 34.48% (2.74%) Non-Performance Spread 0.38% - 1.10% (0.96%) Option cost 0.07% - 5.48% (2.38%) Market risk benefits liability 403 Discounted Cash Flow Mortality 100.00%- 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.22%) Partial Withdrawal Rates 0.00% - 23.26% (2.50%) Non-Performance Spread 0.38% - 1.10% (0.96%) GMWB Utilization 50.00% - 60.00% (50.81%) Total financial liabilities at fair value $ 4,661 (a) Assets of $8,365 million for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services) are excluded from the table above. The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three months ended March 31, 2024 and 2023. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Three months ended March 31, 2024 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 7,122 $ (12) $ 104 $ 762 $ (19) $ (202) $ (19) $ 7,736 $ 104 Commercial mortgage-backed securities 18 — — 1 — — (7) 12 — Corporates 1,979 — 13 217 (3) (22) — 2,184 13 Municipals 49 — 1 — (32) — — 18 1 Residential mortgage-backed securities 3 — — 1 — — — 4 — Foreign Governments 16 — — — — (11) — 5 — Preferred securities 8 — — — — — — 8 — Equity securities 15 (1) — — — — — 14 — Interest Rate Swaps 57 (48) — — — — — 9 — Investment in unconsolidated affiliates 285 58 — — — — — 343 — Short term investments — — — 9 — — — 9 — Other long-term investments: Available-for-sale embedded derivative 27 — 3 — — — — 30 3 Credit linked note 10 — — — — (1) — 9 — Subtotal Level 3 assets at fair value $ 9,589 $ (3) $ 121 $ 990 $ (54) $ (236) $ (26) $ 10,381 $ 121 Market risk benefits asset (b) 88 95 Total Level 3 assets at fair value $ 9,677 $ 10,476 Liabilities Indexed annuity/ IUL embedded derivatives, included in contractholder funds 4,258 200 — 288 — (67) — 4,679 — Interest rate swaps — 19 — — — — — 19 — Contingent consideration (c) — 9 — 48 — — — 57 — Subtotal Level 3 liabilities at fair value $ 4,258 $ 228 $ — $ 336 $ — $ (67) $ — $ 4,755 $ — Market risk benefits liability (b) 403 425 Total Level 3 liabilities at fair value $ 4,661 $ 5,180 (a) The net transfers out of Level 3 during the three months ended March 31, 2024 were exclusively to Level 2. (b) Refer to Note O- Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. (c) The initial contingent consideration recorded in the Roar transaction is included in purchases in the table above. Refer to Note N - Acquisitions for more information. Three months ended March 31, 2023 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 6,263 $ (8) $ 18 $ 416 $ (83) $ (235) $ (71) $ 6,300 $ 18 Commercial mortgage-backed securities 37 — 1 12 — — (21) 29 1 Corporates 1,440 (1) (23) 133 — (5) — 1,544 (23) Municipals 29 — 3 — — — — 32 3 Residential mortgage-backed securities 302 1 8 8 — (8) (299) 12 8 Foreign Governments 16 — — — — — — 16 — Investment in unconsolidated affiliates 23 — — 84 — — — 107 — Short term investments — — — 23 — — — 23 — Preferred securities 1 — — — — — — 1 — Equity securities 10 — — 1 — — — 11 — Other long-term investments: Available-for-sale embedded derivative 23 — 2 — — — — 25 2 Credit linked note 15 — — — — (2) — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal Level 3 assets at fair value $ 8,169 $ (8) $ 9 $ 677 $ (83) $ (250) $ (391) $ 8,123 $ 9 Market risk benefits asset (b) 117 106 Total Level 3 assets at fair value $ 8,286 $ 8,229 Liabilities Indexed annuity/IUL embedded derivatives, included in contractholder funds 3,115 385 — 96 — (27) — 3,569 — Subtotal Level 3 liabilities at fair value $ 3,115 $ 385 $ — $ 96 $ — $ (27) $ — $ 3,569 $ — Market risk benefits liability (b) 282 324 Total Level 3 liabilities at fair value $ 3,397 $ 3,893 (a) The net transfers out of Level 3 during the three months ended March 31, 2023 were to Level 2. (b) Refer to Note O - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. . Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments. Mortgage Loans The fair value of mortgage loans is established using a discounted cash flow method based on internal credit rating, maturity and future income. This yield-based approach is sourced from our third-party vendor. The internal ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt service coverage, loan-to-value, quality of tenancy, borrower, and payment record. The inputs used to measure the fair value of our mortgage loans are classified as Level 3 within the fair value hierarchy. Investments in Unconsolidated affiliates In our F&G segment, the carrying value of Investments in unconsolidated affiliates is primarily determined using NAV as a practical expedient and are included in the NAV column in the table below. Recognition of income and adjustments to the carrying amount are delayed due to the availability of the related financial statements, which are obtained from the general partner typically on a one to three-month delay. In our title segment, Investments in unconsolidated affiliates are accounted for under the equity method of accounting. In our title segment, Investments in unconsolidated affiliates were $265 million and $263 million as of March 31, 2024 and December 31, 2023, respectively. Policy Loans (included within Other long-term investments) Fair values for policy loans are estimated from a discounted cash flow analysis, using interest rates currently being offered for loans with similar credit risk. Loans with similar characteristics are aggregated for purposes of the calculations. Company Owned Life Insurance Company owned life insurance ("COLI") is a life insurance program used to finance certain employee benefit expenses. The fair value of COLI is based on net realizable value, which is generally cash surrender value. COLI is classified as Level 3 within the fair value hierarchy. Other Invested Assets (included within Other long-term investments) The fair value of bank loans is estimated using a discounted cash flow method with the discount rate based on weighted average cost of capital ("WACC"). This yield-based approach is sourced from a third-party vendor and the WACC establishes a market participant discount rate by determining the hypothetical capital structure for the asset should it be underwritten as of each period end. Bank loans are classified as Level 3 within the fair value hierarchy. For cost method investments, our carrying value approximates fair value. Cost method investments are classified as Level 1 within the fair value hierarchy. Investment Contracts Investment contracts include deferred annuities (indexed annuities and fixed rate annuities), IUL policies, funding agreements and pension risk transfers ("PRT") and immediate annuity contracts without life contingencies. The indexed annuities/IUL embedded derivatives, included in contractholder funds, are excluded as they are carried at fair value. The fair value of the deferred annuities (indexed annuities and fixed rate annuities) and IUL contracts is based on their cash surrender value (i.e., the cost the Company would incur to extinguish the liability) as these contracts are generally issued without an annuitization date. The fair value of funding agreements and PRT and immediate annuity contracts without life contingencies is derived by calculating a new fair value interest rate using the updated yield curve and treasury spreads as of the respective reporting date. The Company is not required to, and has not, estimated the fair value of the liabilities under contracts that involve significant mortality or morbidity risks, as these liabilities fall within the definition of insurance contracts that are exceptions from financial instruments that require disclosures of fair value. Other Federal Home Loan Bank of Atlanta (“FHLB”) common stock is carried at cost, which approximates fair value. The carrying amount of FHLB common stock represents the value it can be sold back to the FHLB and is classified as Level 2 within the hierarchy. Debt The fair value of debt, with the exception of the F&G Credit Agreement is based on quoted market prices. The carrying value of the F&G Credit Agreement approximates fair value as the rates are comparable to those at which we could currently borrow under similar terms. The inputs used to measure the fair value of our outstanding debt are classified as Level 2 within the fair value hierarchy. The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. March 31, 2024 Level 1 Level 2 Level 3 NAV Total Estimated Fair Value Carrying Amount Assets (In millions) FHLB common stock $ — $ 138 $ — $ — $ 138 $ 138 Commercial mortgage loans — — 2,229 — 2,229 2,550 Residential mortgage loans — — 2,590 — 2,590 2,890 Investments in unconsolidated affiliates — — 6 3,018 3,024 3,024 Policy loans — — 78 — 78 78 Other invested assets 23 — — 42 65 65 Company-owned life insurance — — 415 — 415 415 Trade and notes receivables, net of allowance — — 409 — 409 409 Total $ 23 $ 138 $ 5,727 $ 3,060 $ 8,948 $ 9,569 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 41,488 $ — $ 41,488 $ 46,194 Debt — 3,561 — — 3,561 3,884 Total $ — $ 3,561 $ 41,488 $ — $ 45,049 $ 50,078 December 31, 2023 Level 1 Level 2 Level 3 NAV Total Estimated Fair Value Carrying Amount Assets (In millions) FHLB common stock $ — $ 138 $ — $ — $ 138 $ 138 Commercial mortgage loans — — 2,253 — 2,253 2,538 Residential mortgage loans — — 2,545 — 2,545 2,798 Investments in unconsolidated affiliates — — 7 2,779 2,786 2,786 Policy loans — — 71 — 71 71 Other invested assets 17 — — 42 59 59 Company-owned life insurance — — 397 — 397 397 Trade and notes receivables, net of allowance — — 442 — 442 442 Total $ 17 $ 138 $ 5,715 $ 2,821 $ 8,691 $ 9,229 Liabilities Investment contracts, included in contractholder funds $ — $ — |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 1.25 1.00 - 1.25 <1.00 March 31, 2024 (In millions) LTV Ratios: Less than 50.00% $ 479 $ — $ 14 $ 493 19 % $ 477 21 % 50.00% to 59.99% 864 — — 864 34 % 754 34 % 60.00% to 74.99% 1,134 57 — 1,191 46 % 983 44 % 75.00% to 84.99% — 6 9 15 1 % 15 1 % CMLs $ 2,477 $ 63 $ 23 $ 2,563 100 % $ 2,229 100 % December 31, 2023 LTV Ratios: Less than 50.00% $ 519 $ 4 $ 10 $ 533 21 % $ 510 23 % 50.00% to 59.99% 764 — — 764 30 % 679 30 % 60.00% to 74.99% 1,160 56 — 1,216 48 % 1,028 46 % 75.00% to 84.99% — 6 9 15 1 % 14 1 % CMLs (a) $ 2,443 $ 66 $ 19 $ 2,528 100 % $ 2,231 100 % (a) Excludes loans under development with an amortized cost and estimated fair value of $22 million. March 31, 2024 Amortized Cost by Origination Year 2024 2023 2022 2021 2020 Prior Total Commercial mortgages (In millions) LTV Less than 50.00% $ 35 $ 86 $ 17 $ 77 $ 156 $ 122 $ 493 50.00% to 59.99% — 53 149 292 235 135 864 60.00% to 74.99% — 69 113 887 122 — 1,191 75.00% to 84.99% — 6 9 — — — 15 Total CMLs $ 35 $ 214 $ 288 $ 1,256 $ 513 $ 257 $ 2,563 Commercial mortgages DSCR Greater than 1.25x $ 35 $ 154 $ 276 $ 1,256 $ 513 $ 243 $ 2,477 1.00x - 1.25x — 60 3 — — — 63 Less than 1.00x — — 9 — — 14 23 Total CMLs $ 35 $ 214 $ 288 $ 1,256 $ 513 $ 257 $ 2,563 December 31, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2018 Prior Total Commercial mortgages (In millions) LTV Less than 50.00% $ 85 $ 17 $ 77 $ 232 $ — $ 122 $ 533 50.00% to 59.99% 53 149 267 158 — 137 764 60.00% to 74.99% 69 113 912 122 — — 1,216 75.00% to 84.99% 6 9 — — — — 15 Total CMLs (a) $ 213 $ 288 $ 1,256 $ 512 $ — $ 259 $ 2,528 Commercial mortgages DSCR Greater than 1.25x $ 154 $ 276 $ 1,256 $ 512 $ — $ 245 $ 2,443 1.00x - 1.25x 59 3 — — — 4 66 Less than 1.00x — 9 — — — 10 19 Total CMLs (a) $ 213 $ 288 $ 1,256 $ 512 $ — $ 259 $ 2,528 (a) Excludes loans under development with an amortized cost and estimated fair value of $22 million. We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At March 31, 2024 and December 31, 2023, we had no CMLs that were delinquent in principal or interest payments as shown in the risk rating exposure table above. Residential Mortgage Loans Residential mortgage loans (“RMLs”) represented approximately 5% of our total investments as of March 31, 2024 and December 31, 2023. Our RMLs are closed end, amortizing loans and 100% of the properties are located in the United States. We diversify our RML portfolio by state to attempt to reduce concentration risk. The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables, gross of valuation allowances: March 31, 2024 Amortized Cost % of Total U.S. State: (In millions) Florida $ 164 5 % California 142 5 % All other states (a) 2,638 90 % Total RMLs, gross of valuation allowance $ 2,944 100 % Allowance for expected credit loss (54) Total RMLs, net of valuation allowance $ 2,890 (a) The individual concentration of each state is equal to or less than 5% as of March 31, 2024. December 31, 2023 Amortized Cost % of Total U.S. State: (In millions) Florida $ 163 6 % New York 129 5 % Texas 129 5 % All other states (a) 2,431 84 % Total RMLs, gross of valuation allowance $ 2,852 100 % Allowance for expected credit loss (54) Total RMLs, net of valuation allowance $ 2,798 (a) The individual concentration of each state is equal to or less than 5% as of December 31, 2023. RMLs have a primary credit quality indicator of either a performing or nonperforming loan. We define non-performing RMLs as those that are 90 or more days past due or in non-accrual status, which is assessed monthly. The credit quality of RMLs as of March 31, 2024 and December 31, 2023, was as follows: March 31, 2024 December 31, 2023 Amortized Cost % of Total Amortized Cost % of Total Performance indicators: (In millions) (In millions) Performing $ 2,878 98 % $ 2,795 98 % Non-performing 66 2 % 57 2 % Total RMLs, gross of valuation allowance $ 2,944 100 % $ 2,852 100 % Allowance for expected loan loss (54) — % (54) — % Total RMLs, net of valuation allowance $ 2,890 100 % $ 2,798 100 % There were no charge offs recorded by RMLs during the three months ended March 31, 2024 or during the year ended December 31, 2023. RMLs segregated by aging of the loans (by year of origination) as of March 31, 2024 and December 31, 2023, were as follows, gross of valuation allowances: March 31, 2024 Amortized Cost by Origination Year 2024 2023 2022 2021 2020 Prior Total Residential mortgages (In millions) Current (less than 30 days past due) $ 56 $ 402 $ 984 $ 874 $ 185 $ 361 $ 2,862 30-89 days past due — 1 2 3 6 4 16 90 days or more past due — 1 11 18 12 24 66 Total residential mortgages $ 56 $ 404 $ 997 $ 895 $ 203 $ 389 $ 2,944 December 31, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Residential mortgages (In millions) Current (less than 30 days past due) $ 373 $ 985 $ 854 $ 192 $ 183 $ 192 $ 2,779 30-89 days past due — 4 7 3 — 2 16 90 days or more past due — 6 16 13 21 1 57 Total residential mortgages $ 373 $ 995 $ 877 $ 208 $ 204 $ 195 $ 2,852 Non-accrual loans by amortized cost as of March 31, 2024 and December 31, 2023, were as follows: March 31, 2024 December 31, 2023 Amortized cost of loans on non-accrual (In millions) Residential mortgage: $ 66 $ 57 Commercial mortgage: — — Total non-accrual mortgages $ 66 $ 57 Immaterial interest income was recognized on non-accrual financing receivables for the three months ended March 31, 2024 and March 31, 2023. It is our policy to cease to accrue interest on loans that are delinquent for 90 days or more. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible. If a loan becomes 90 days or more delinquent, it is our general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. As of March 31, 2024 and December 31, 2023, we had $66 million and $57 million, respectively, of mortgage loans that were over 90 days past due, of which $58 million and $41 million were in the process of foreclosure as of March 31, 2024 and December 31, 2023, respectively. Allowance for Expected Credit Loss We estimate expected credit losses for our commercial and residential mortgage loan portfolios using a probability of default/loss given default model. Significant inputs to this model include, where applicable, the loans' current performance, underlying collateral type, location, contractual life, LTV, DSC and Debt to Income or FICO. The model projects losses using a two year reasonable and supportable forecast and then reverts over a three year period to market-wide historical loss experience. Changes in our allowance for expected credit losses on mortgage loans are recognized in Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Operations. The allowances for our mortgage loan portfolio are summarized as follows: Three months ended March 31, 2024 (In millions) Residential Mortgage Commercial Mortgage Total Beginning Balance $ 54 $ 12 $ 66 Provision for loan losses — 1 1 Ending Balance $ 54 $ 13 $ 67 Three months ended March 31, 2023 (In millions) Residential Mortgage Commercial Mortgage Total Beginning Balance $ 32 $ 10 $ 42 Provision for loan losses 16 2 18 Ending Balance $ 48 $ 12 $ 60 An allowance for expected credit loss is not measured on accrued interest income for CMLs as we have a process to write-off interest on loans that enter into non-accrual status (90 days or more past due). Allowances for expected credit losses are measured on accrued interest income for RMLs and were immaterial for the three months ended March 31, 2024 and March 31, 2023. Interest and Investment Income The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows: Three months ended March 31, 2024 March 31, 2023 (In millions) Fixed maturity securities, available-for-sale $ 534 $ 447 Equity securities 10 8 Preferred securities 8 13 Mortgage loans 66 51 Invested cash and short-term investments 47 33 Limited partnerships 54 57 Tax deferred property exchange income 32 45 Other investments 29 19 Gross investment income 780 673 Investment expense (70) (62) Interest and investment income $ 710 $ 611 Interest and investment income is shown net of amounts attributable to certain funds withheld reinsurance agreements, which is passed along to the reinsurer in accordance with the terms of these agreements. Interest and investment income attributable to these agreements, and thus excluded from the totals in the table above, was $127 million and $58 million for the three months ended March 31, 2024 and March 31, 2023, respectively. Recognized Gains and Losses, Net Details underlying Recognized gains and losses, net reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows: Three months ended March 31, 2024 March 31, 2023 (In millions) Net realized (losses) on fixed maturity available-for-sale securities $ (19) $ (50) Net realized/unrealized gains on equity securities (1) 54 33 Net realized/unrealized gains (losses) on preferred securities (2) 16 (10) Net realized/unrealized gains (losses) on other invested assets 60 (5) Change in allowance for expected credit losses — (4) Derivatives and embedded derivatives: Realized gains (losses) on certain derivative instruments 21 (89) Unrealized gains on certain derivative instruments 156 147 Change in fair value of reinsurance related embedded derivatives (3) (18) (19) Change in fair value of other derivatives and embedded derivatives 5 2 Realized gains on derivatives and embedded derivatives 164 41 Recognized gains and losses, net $ 275 $ 5 (1) Includes net valuation gains of $22 million and $46 million for the three months ended March 31, 2024 and 2023, respectively. (2) Includes net valuation gains of $15 million and $35 million for the three months ended March 31, 2024 and 2023, respectively. (3) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties. Recognized gains and losses, net is shown net of amounts attributable to certain funds withheld reinsurance agreements, which are passed along to the reinsurer in accordance with the terms of these agreements. Recognized losses attributable to these agreements, and thus excluded from the totals in the table above, was $19 million and $22 million for the three months ended March 31, 2024 and March 31, 2023, respectively. The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows: Three months ended March 31, 2024 March 31, 2023 (In millions) Proceeds $ 583 $ 489 Gross gains 6 1 Gross losses (25) (51) Unconsolidated Variable Interest Entities We own investments in variable interest entities ("VIEs") that are not consolidated within our financial statements. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support, where investors lack certain characteristics of a controlling financial interest, or where the entity is structured with non-substantive voting rights. VIEs are consolidated by their ‘primary beneficiary’, a designation given to an entity that receives both the benefits from the VIE as well as the substantive power to make its key economic decisions. While we participate in the benefits from VIEs in which we invest, but do not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under our common control. It is for this reason that we are not considered the primary beneficiary for the VIE investments that are not consolidated. We invest in various limited partnerships and limited liability companies primarily as a passive investor. These investments are primarily in credit funds with a bias towards current income, real assets, or private equity. Limited partnership and limited liability company interests are accounted for under the equity method and are included in Investments in unconsolidated affiliates on our unaudited Condensed Consolidated Balance Sheets. In addition, we invest in structured investments, which may be VIEs, but for which we are not the primary beneficiary. These structured investments typically invest in fixed income investments and are managed by third parties and include asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities included in fixed maturity securities available for sale on our unaudited Condensed Consolidated Balance Sheets. Our maximum loss exposure with respect to these VIEs is limited to the investment carrying amounts reported in our unaudited Condensed Consolidated Balance Sheets for limited partnerships and the amortized costs of our fixed maturity securities, in addition to any required unfunded commitments (also refer to Note F Commitments and Contingencies ). The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (In millions) (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment in unconsolidated affiliates $ 3,367 $ 5,733 $ 3,071 $ 4,806 Fixed maturity securities 21,991 23,442 20,837 22,346 Total unconsolidated VIE investments $ 25,358 $ 29,175 $ 23,908 $ 27,152 Concentrations Our underlying investment concentrations that exceed 10% of shareholders equity are as follows: March 31, 2024 (In millions) Blackstone Wave Asset Holdco (1) $ 733 (1) Represents a special purpose vehicle that holds investments in numerous limited partnership investments whose underlying investments are further diversified by holding interest in multiple individual investments and industries." id="sjs-B4">Investments Our fixed maturity securities investments have been designated as available-for-sale ("AFS"), and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included in Accumulated Other Comprehensive Income ("AOCI"), net of deferred income taxes. Our preferred and equity securities investments are carried at fair value with unrealized gains and losses included in net earnings (loss). The Company’s consolidated investments at March 31, 2024 and December 31, 2023 are summarized as follows: March 31, 2024 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities (In millions) Asset-backed securities $ 15,254 $ (11) $ 280 $ (408) $ 15,115 Commercial mortgage-backed securities 5,040 (21) 38 (239) 4,818 Corporates 21,430 (7) 133 (2,585) 18,971 Hybrids 667 — 4 (38) 633 Municipals 1,773 — 11 (237) 1,547 Residential mortgage-backed securities 2,550 (1) 31 (116) 2,464 U.S. Government 706 — 3 (11) 698 Foreign Governments 369 — — (49) 320 Total available-for-sale securities $ 47,789 $ (40) $ 500 $ (3,683) $ 44,566 December 31, 2023 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities (In millions) Asset-backed securities $ 14,631 $ (11) $ 191 $ (469) $ 14,342 Commercial mortgage-backed/asset-backed securities 4,797 (22) 23 (323) 4,475 Corporates 20,133 (6) 186 (2,417) 17,896 Hybrids 668 — 3 (53) 618 Municipals 1,826 — 14 (229) 1,611 Residential mortgage-backed securities 2,507 (3) 29 (104) 2,429 U.S. Government 679 — 8 (9) 678 Foreign Governments 365 — 3 (44) 324 Total available-for-sale securities $ 45,606 $ (42) $ 457 $ (3,648) $ 42,373 Securities held on deposit with various state regulatory authorities had a fair value of $145 million and $141 million at March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, the Company held $69 million and $47 million, respectively, that were non-income producing for a period greater than twelve months. As of March 31, 2024 and December 31, 2023, the Company's accrued interest receivable balance was $516 million and $481 million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the unaudited Condensed Consolidated Balance Sheets. In accordance with our FHLB agreements, the investments supporting the funding agreement liabilities are pledged as collateral to secure the FHLB funding agreement liabilities and are not available to us for general purposes. The collateral investments had a fair value of $4,518 million and $4,345 million as of March 31, 2024 and December 31, 2023, respectively. The amortized cost and fair value of fixed maturity securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. March 31, 2024 December 31, 2023 (In millions) (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and Government securities: Due in one year or less $ 709 $ 691 $ 703 $ 687 Due after one year through five years 4,765 4,643 4,320 4,209 Due after five years through ten years 3,940 3,770 3,195 3,048 Due after ten years 15,531 13,065 15,453 13,183 Subtotal 24,945 22,169 23,671 21,127 Other securities, which provide for periodic payments: Asset-backed securities 15,254 15,115 14,631 14,342 Commercial mortgage-backed securities 5,040 4,818 4,797 4,475 Residential mortgage-backed securities 2,550 2,464 2,507 2,429 Subtotal 22,844 22,397 21,935 21,246 Total fixed maturity available-for-sale securities $ 47,789 $ 44,566 $ 45,606 $ 42,373 Allowance for Expected Credit Loss We regularly review AFS securities for declines in fair value that we determine to be credit related. For our fixed maturity securities, we generally consider the following in determining whether our unrealized losses are credit related, and if so, the magnitude of the credit loss: • The extent to which the fair value is less than the amortized cost basis; • The reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); • The financial condition of and near-term prospects of the issuer (including issuer's current credit rating and the probability of full recovery of principal based upon the issuer's financial strength); • Current delinquencies and nonperforming assets of underlying collateral; • Expected future default rates; • Collateral value by vintage, geographic region, industry concentration or property type; • Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and • Contractual and regulatory cash obligations and the issuer's plans to meet such obligations. We recognize an allowance for current expected credit losses on fixed maturity securities in an unrealized loss position when it is determined, using the factors discussed above, a component of the unrealized loss is related to credit. We measure the credit loss using a discounted cash flow model that utilizes the single best estimate cash flow and the recognized credit loss is limited to the total unrealized loss on the security (i.e. the fair value floor). Cash flows are discounted using the implicit yield of bonds at their time of purchase and the current book yield for asset and mortgage backed securities as well as variable rate securities. We recognize the expected credit losses in Recognized gains and losses, net in the unaudited Condensed Consolidated Statements of Operations, with an offset for the amount of non-credit impairments recognized in AOCI. We do not measure a credit loss allowance on accrued investment income because we write-off accrued interest through Interest and investment income when collectability concerns arise. We consider the following in determining whether write-offs of a security’s amortized cost are necessary: • We believe amounts related to securities have become uncollectible; • We intend to sell a security; or • It is more likely than not that we will be required to sell a security prior to recovery. If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, we will write down the security to current fair value, with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Operations. If we do not intend to sell a fixed maturity security or it is more likely than not that we will not be required to sell a fixed maturity security before recovery of its amortized cost basis but believe amounts related to a security are uncollectible (generally based on proximity to expected credit loss), an impairment is deemed to have occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Operations. The remainder of unrealized loss is held in AOCI. As of March 31, 2024 and December 31, 2023, our allowance for expected credit losses for AFS securities was $40 million and $42 million, respectively. The fair value and gross unrealized losses of AFS securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized Available-for-sale securities (In millions) Asset-backed securities $ 1,558 $ (41) $ 4,568 $ (358) $ 6,126 $ (399) Commercial mortgage-backed securities 470 (8) 2,048 (203) 2,518 (211) Corporates 3,645 (136) 11,062 (2,449) 14,707 (2,585) Hybrids 71 (2) 464 (36) 535 (38) Municipals 340 (51) 935 (186) 1,275 (237) Residential mortgage-backed securities 507 (9) 687 (99) 1,194 (108) U.S. Government 337 (2) 147 (9) 484 (11) Foreign Government 42 (2) 187 (46) 229 (48) Total available-for-sale securities $ 6,970 $ (251) $ 20,098 $ (3,386) $ 27,068 $ (3,637) Total number of available-for-sale securities in an unrealized loss position less than twelve months 1,371 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 2,775 Total number of available-for-sale securities in an unrealized loss position 4,146 December 31, 2023 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized Available-for-sale securities (In millions) Asset-backed securities $ 1,707 $ (56) $ 5,835 $ (404) $ 7,542 $ (460) Commercial mortgage-backed securities 819 (53) 1,922 (235) 2,741 (288) Corporates 2,387 (134) 10,739 (2,283) 13,126 (2,417) Hybrids 60 (2) 483 (51) 543 (53) Municipals 399 (49) 920 (179) 1,319 (228) Residential mortgage-backed securities 336 (5) 662 (89) 998 (94) U.S. Government 84 — 159 (9) 243 (9) Foreign Government 49 (3) 188 (41) 237 (44) Total available-for-sale securities $ 5,841 $ (302) $ 20,908 $ (3,291) $ 26,749 $ (3,593) Total number of available-for-sale securities in an unrealized loss position less than twelve months 1,035 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 2,846 Total number of available-for-sale securities in an unrealized loss position 3,881 The increase in unrealized losses as of March 31, 2024, compared to December 31, 2023, was caused by higher treasury rates compared to those at the time of the F&G acquisition or purchase of the security if later. For securities in an unrealized loss position as of March 31, 2024, our allowance for expected credit loss was $40 million. We believe the unrealized loss position for which we have not recorded an allowance for expected credit loss as of March 31, 2024 was primarily attributable to interest rate increases, near-term illiquidity, and other macroeconomic uncertainties as opposed to issuer specific credit concerns. Mortgage Loans Our mortgage loans are collateralized by commercial and residential properties. Commercial Mortgage Loans Commercial mortgage loans (“CMLs”) represented approximately 5% of our total investments as of March 31, 2024 and December 31, 2023. The mortgage loans in our investment portfolio are generally comprised of high quality commercial first lien and mezzanine real estate loans. Mortgage loans are primarily on income producing properties including industrial properties, retail buildings, multifamily properties and office buildings. We diversify our CML portfolio by geographic region and property type to attempt to reduce concentration risk. We continuously evaluate CMLs based on relevant current information to ensure properties are performing at a consistent and acceptable level to secure the related debt. The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables: March 31, 2024 December 31, 2023 Gross Carrying Value % of Total Gross Carrying Value % of Total Property Type: (In millions) (In millions) Hotel $ 18 1 % $ 18 1 % Industrial 617 24 % 616 24 % Mixed Use 11 — % 11 — % Multifamily 1,012 39 % 1,012 40 % Office 315 13 % 316 13 % Retail 101 4 % 102 4 % Student Housing 83 3 % 83 3 % Other 406 16 % 392 15 % Total commercial mortgage loans, gross of valuation allowance $ 2,563 100 % $ 2,550 100 % Allowance for expected credit loss (13) (12) Total commercial mortgage loans, net of valuation allowance $ 2,550 $ 2,538 U.S. Region: East North Central $ 104 4 % $ 151 6 % East South Central 75 3 % 75 3 % Middle Atlantic 354 14 % 354 14 % Mountain 386 15 % 352 14 % New England 92 3 % 168 6 % Pacific 765 30 % 766 30 % South Atlantic 618 24 % 563 22 % West North Central 21 1 % 4 — % West South Central 148 6 % 117 5 % Total commercial mortgage loans, gross of valuation allowance $ 2,563 100 % $ 2,550 100 % Allowance for expected credit loss (13) (12) Total commercial mortgage loans, net of valuation allowance $ 2,550 $ 2,538 CMLs segregated by aging of the loans and charge offs (by year of origination) as of March 31, 2024 and December 31, 2023, were as follows, gross of valuation allowances: March 31, 2024 Amortized Cost by Origination Year 2024 2023 2022 2021 2020 Prior Total Commercial mortgages (In millions) Current (less than 30 days past due) $ 35 $ 214 $ 288 $ 1,256 $ 513 $ 257 $ 2,563 30-89 days past due — — — — — — — 90 days or more past due — — — — — — — Total CMLs $ 35 $ 214 $ 288 $ 1,256 $ 513 $ 257 $ 2,563 ......................................................................................................... Charge offs..................................................................................... $ — $ — $ — $ — $ — $ — $ — December 31, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Commercial mortgages (In millions) Current (less than 30 days past due) $ 213 $ 288 $ 1,256 $ 512 $ — $ 259 $ 2,528 30-89 days past due — — — — — — — 90 days or more past due — — — — — — — Total CMLs (a) $ 213 $ 288 $ 1,256 $ 512 $ — $ 259 $ 2,528 ......................................................................................................... Charge offs..................................................................................... $ — $ — $ — $ — $ — $ 3 $ 3 (a) Excludes loans under development with an amortized cost and estimated fair value of $22 million. Loan-to-value (“LTV”) and debt service coverage (“DSC”) ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.00 indicates that a property’s operations do not generate sufficient income to cover debt payments. We normalize our DSC ratios to a 25 year amortization period for purposes of our general loan allowance evaluation. The following tables present the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios, gross of valuation allowances at March 31, 2024 and December 31, 2023 : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 <1.00 March 31, 2024 (In millions) LTV Ratios: Less than 50.00% $ 479 $ — $ 14 $ 493 19 % $ 477 21 % 50.00% to 59.99% 864 — — 864 34 % 754 34 % 60.00% to 74.99% 1,134 57 — 1,191 46 % 983 44 % 75.00% to 84.99% — 6 9 15 1 % 15 1 % CMLs $ 2,477 $ 63 $ 23 $ 2,563 100 % $ 2,229 100 % December 31, 2023 LTV Ratios: Less than 50.00% $ 519 $ 4 $ 10 $ 533 21 % $ 510 23 % 50.00% to 59.99% 764 — — 764 30 % 679 30 % 60.00% to 74.99% 1,160 56 — 1,216 48 % 1,028 46 % 75.00% to 84.99% — 6 9 15 1 % 14 1 % CMLs (a) $ 2,443 $ 66 $ 19 $ 2,528 100 % $ 2,231 100 % (a) Excludes loans under development with an amortized cost and estimated fair value of $22 million. March 31, 2024 Amortized Cost by Origination Year 2024 2023 2022 2021 2020 Prior Total Commercial mortgages (In millions) LTV Less than 50.00% $ 35 $ 86 $ 17 $ 77 $ 156 $ 122 $ 493 50.00% to 59.99% — 53 149 292 235 135 864 60.00% to 74.99% — 69 113 887 122 — 1,191 75.00% to 84.99% — 6 9 — — — 15 Total CMLs $ 35 $ 214 $ 288 $ 1,256 $ 513 $ 257 $ 2,563 Commercial mortgages DSCR Greater than 1.25x $ 35 $ 154 $ 276 $ 1,256 $ 513 $ 243 $ 2,477 1.00x - 1.25x — 60 3 — — — 63 Less than 1.00x — — 9 — — 14 23 Total CMLs $ 35 $ 214 $ 288 $ 1,256 $ 513 $ 257 $ 2,563 December 31, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2018 Prior Total Commercial mortgages (In millions) LTV Less than 50.00% $ 85 $ 17 $ 77 $ 232 $ — $ 122 $ 533 50.00% to 59.99% 53 149 267 158 — 137 764 60.00% to 74.99% 69 113 912 122 — — 1,216 75.00% to 84.99% 6 9 — — — — 15 Total CMLs (a) $ 213 $ 288 $ 1,256 $ 512 $ — $ 259 $ 2,528 Commercial mortgages DSCR Greater than 1.25x $ 154 $ 276 $ 1,256 $ 512 $ — $ 245 $ 2,443 1.00x - 1.25x 59 3 — — — 4 66 Less than 1.00x — 9 — — — 10 19 Total CMLs (a) $ 213 $ 288 $ 1,256 $ 512 $ — $ 259 $ 2,528 (a) Excludes loans under development with an amortized cost and estimated fair value of $22 million. We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At March 31, 2024 and December 31, 2023, we had no CMLs that were delinquent in principal or interest payments as shown in the risk rating exposure table above. Residential Mortgage Loans Residential mortgage loans (“RMLs”) represented approximately 5% of our total investments as of March 31, 2024 and December 31, 2023. Our RMLs are closed end, amortizing loans and 100% of the properties are located in the United States. We diversify our RML portfolio by state to attempt to reduce concentration risk. The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables, gross of valuation allowances: March 31, 2024 Amortized Cost % of Total U.S. State: (In millions) Florida $ 164 5 % California 142 5 % All other states (a) 2,638 90 % Total RMLs, gross of valuation allowance $ 2,944 100 % Allowance for expected credit loss (54) Total RMLs, net of valuation allowance $ 2,890 (a) The individual concentration of each state is equal to or less than 5% as of March 31, 2024. December 31, 2023 Amortized Cost % of Total U.S. State: (In millions) Florida $ 163 6 % New York 129 5 % Texas 129 5 % All other states (a) 2,431 84 % Total RMLs, gross of valuation allowance $ 2,852 100 % Allowance for expected credit loss (54) Total RMLs, net of valuation allowance $ 2,798 (a) The individual concentration of each state is equal to or less than 5% as of December 31, 2023. RMLs have a primary credit quality indicator of either a performing or nonperforming loan. We define non-performing RMLs as those that are 90 or more days past due or in non-accrual status, which is assessed monthly. The credit quality of RMLs as of March 31, 2024 and December 31, 2023, was as follows: March 31, 2024 December 31, 2023 Amortized Cost % of Total Amortized Cost % of Total Performance indicators: (In millions) (In millions) Performing $ 2,878 98 % $ 2,795 98 % Non-performing 66 2 % 57 2 % Total RMLs, gross of valuation allowance $ 2,944 100 % $ 2,852 100 % Allowance for expected loan loss (54) — % (54) — % Total RMLs, net of valuation allowance $ 2,890 100 % $ 2,798 100 % There were no charge offs recorded by RMLs during the three months ended March 31, 2024 or during the year ended December 31, 2023. RMLs segregated by aging of the loans (by year of origination) as of March 31, 2024 and December 31, 2023, were as follows, gross of valuation allowances: March 31, 2024 Amortized Cost by Origination Year 2024 2023 2022 2021 2020 Prior Total Residential mortgages (In millions) Current (less than 30 days past due) $ 56 $ 402 $ 984 $ 874 $ 185 $ 361 $ 2,862 30-89 days past due — 1 2 3 6 4 16 90 days or more past due — 1 11 18 12 24 66 Total residential mortgages $ 56 $ 404 $ 997 $ 895 $ 203 $ 389 $ 2,944 December 31, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Residential mortgages (In millions) Current (less than 30 days past due) $ 373 $ 985 $ 854 $ 192 $ 183 $ 192 $ 2,779 30-89 days past due — 4 7 3 — 2 16 90 days or more past due — 6 16 13 21 1 57 Total residential mortgages $ 373 $ 995 $ 877 $ 208 $ 204 $ 195 $ 2,852 Non-accrual loans by amortized cost as of March 31, 2024 and December 31, 2023, were as follows: March 31, 2024 December 31, 2023 Amortized cost of loans on non-accrual (In millions) Residential mortgage: $ 66 $ 57 Commercial mortgage: — — Total non-accrual mortgages $ 66 $ 57 Immaterial interest income was recognized on non-accrual financing receivables for the three months ended March 31, 2024 and March 31, 2023. It is our policy to cease to accrue interest on loans that are delinquent for 90 days or more. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible. If a loan becomes 90 days or more delinquent, it is our general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. As of March 31, 2024 and December 31, 2023, we had $66 million and $57 million, respectively, of mortgage loans that were over 90 days past due, of which $58 million and $41 million were in the process of foreclosure as of March 31, 2024 and December 31, 2023, respectively. Allowance for Expected Credit Loss We estimate expected credit losses for our commercial and residential mortgage loan portfolios using a probability of default/loss given default model. Significant inputs to this model include, where applicable, the loans' current performance, underlying collateral type, location, contractual life, LTV, DSC and Debt to Income or FICO. The model projects losses using a two year reasonable and supportable forecast and then reverts over a three year period to market-wide historical loss experience. Changes in our allowance for expected credit losses on mortgage loans are recognized in Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Operations. The allowances for our mortgage loan portfolio are summarized as follows: Three months ended March 31, 2024 (In millions) Residential Mortgage Commercial Mortgage Total Beginning Balance $ 54 $ 12 $ 66 Provision for loan losses — 1 1 Ending Balance $ 54 $ 13 $ 67 Three months ended March 31, 2023 (In millions) Residential Mortgage Commercial Mortgage Total Beginning Balance $ 32 $ 10 $ 42 Provision for loan losses 16 2 18 Ending Balance $ 48 $ 12 $ 60 An allowance for expected credit loss is not measured on accrued interest income for CMLs as we have a process to write-off interest on loans that enter into non-accrual status (90 days or more past due). Allowances for expected credit losses are measured on accrued interest income for RMLs and were immaterial for the three months ended March 31, 2024 and March 31, 2023. Interest and Investment Income The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows: Three months ended March 31, 2024 March 31, 2023 (In millions) Fixed maturity securities, available-for-sale $ 534 $ 447 Equity securities 10 8 Preferred securities 8 13 Mortgage loans 66 51 Invested cash and short-term investments 47 33 Limited partnerships 54 57 Tax deferred property exchange income 32 45 Other investments 29 19 Gross investment income 780 673 Investment expense (70) (62) Interest and investment income $ 710 $ 611 Interest and investment income is shown net of amounts attributable to certain funds withheld reinsurance agreements, which is passed along to the reinsurer in accordance with the terms of these agreements. Interest and investment income attributable to these agreements, and thus excluded from the totals in the table above, was $127 million and $58 million for the three months ended March 31, 2024 and March 31, 2023, respectively. Recognized Gains and Losses, Net Details underlying Recognized gains and losses, net reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows: Three months ended March 31, 2024 March 31, 2023 (In millions) Net realized (losses) on fixed maturity available-for-sale securities $ (19) $ (50) Net realized/unrealized gains on equity securities (1) 54 33 Net realized/unrealized gains (losses) on preferred securities (2) 16 (10) Net realized/unrealized gains (losses) on other invested assets 60 (5) Change in allowance for expected credit losses — (4) Derivatives and embedded derivatives: Realized gains (losses) on certain derivative instruments 21 (89) Unrealized gains on certain derivative instruments 156 147 Change in fair value of reinsurance related embedded derivatives (3) (18) (19) Change in fair value of other derivatives and embedded derivatives 5 2 Realized gains on derivatives and embedded derivatives 164 41 Recognized gains and losses, net $ 275 $ 5 (1) Includes net valuation gains of $22 million and $46 million for the three months ended March 31, 2024 and 2023, respectively. (2) Includes net valuation gains of $15 million and $35 million for the three months ended March 31, 2024 and 2023, respectively. (3) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties. Recognized gains and losses, net is shown net of amounts attributable to certain funds withheld reinsurance agreements, which are passed along to the reinsurer in accordance with the terms of these agreements. Recognized losses attributable to these agreements, and thus excluded from the totals in the table above, was $19 million and $22 million for the three months ended March 31, 2024 and March 31, 2023, respectively. The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows: Three months ended March 31, 2024 March 31, 2023 (In millions) Proceeds $ 583 $ 489 Gross gains 6 1 Gross losses (25) (51) Unconsolidated Variable Interest Entities We own investments in variable interest entities ("VIEs") that are not consolidated within our financial statements. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support, where investors lack certain characteristics of a controlling financial interest, or where the entity is structured with non-substantive voting rights. VIEs are consolidated by their ‘primary beneficiary’, a designation given to an entity that receives both the benefits from the VIE as well as the substantive power to make its key economic decisions. While we participate in the benefits from VIEs in which we invest, but do not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under our common control. It is for this reason that we are not considered the primary beneficiary for the VIE investments that are not consolidated. We invest in various limited partnerships and limited liability companies primarily as a passive investor. These investments are primarily in credit funds with a bias towards current income, real assets, or private equity. Limited partnership and limited liability company interests are accounted for under the equity method and are included in Investments in unconsolidated affiliates on our unaudited Condensed Consolidated Balance Sheets. In addition, we invest in structured investments, which may be VIEs, but for which we are not the primary beneficiary. These structured investments typically invest in fixed income investments and are managed by third parties and include asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities included in fixed maturity securities available for sale on our unaudited Condensed Consolidated Balance Sheets. Our maximum loss exposure with respect to these VIEs is limited to the investment carrying amounts reported in our unaudited Condensed Consolidated Balance Sheets for limited partnerships and the amortized costs of our fixed maturity securities, in addition to any required unfunded commitments (also refer to Note F Commitments and Contingencies ). The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (In millions) (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment in unconsolidated affiliates $ 3,367 $ 5,733 $ 3,071 $ 4,806 Fixed maturity securities 21,991 23,442 20,837 22,346 Total unconsolidated VIE investments $ 25,358 $ 29,175 $ 23,908 $ 27,152 Concentrations Our underlying investment concentrations that exceed 10% of shareholders equity are as follows: March 31, 2024 (In millions) Blackstone Wave Asset Holdco (1) $ 733 (1) Represents a special purpose vehicle that holds investments in numerous limited partnership investments whose underlying investments are further diversified by holding interest in multiple individual investments and industries. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The carrying amounts of derivative instruments, including derivative instruments embedded in indexed annuities and IUL contracts, and reinsurance is as follows: March 31, 2024 December 31, 2023 Assets: (In millions) Derivative investments: Call options $ 1,015 $ 739 Interest rate swaps 9 57 Foreign currency forward — 1 Other long-term investments: Other embedded derivatives 30 28 Prepaid expenses and other assets: Reinsurance related embedded derivatives 134 152 Total $ 1,188 $ 977 Liabilities: Contractholder funds: Indexed annuities/IUL embedded derivatives $ 4,679 $ 4,258 Accounts payable and accrued liabilities: Interest rate swaps 19 — Total $ 4,698 $ 4,258 The change in fair value of derivative instruments included within Recognized gains and (losses), net in the accompanying unaudited Condensed Consolidated Statements of Operations is as follows: Three months ended March 31, 2024 March 31, 2023 (In millions) Net investment gains (losses): Call options $ 250 $ 55 Interest rate swaps (80) — Futures contracts 6 5 Foreign currency forwards 3 (1) Other derivatives and embedded derivatives 3 1 Reinsurance related embedded derivatives (18) (19) Total net investment gains $ 164 $ 41 Benefits and other changes in policy reserves: Indexed annuities/IUL embedded derivatives increase $ 421 $ 454 Additional Disclosures See descriptions of the fair value methodologies used for derivative financial instruments in Note C - Fair Value of Financial Instruments . Indexed Annuities/IUL Embedded Derivative, Call Options and Futures We have indexed annuities and IUL contracts that permit the holder to elect an interest rate return or an equity index linked component, where interest credited to the contracts is linked to the performance of various equity indices, primarily the S&P 500 Index. This feature represents an embedded derivative under GAAP. The indexed annuities/IUL embedded derivatives are valued at fair value and included in the liability for contractholder funds in the accompanying unaudited Condensed Consolidated Balance Sheets with changes in fair value included as a component of Benefits and other changes in policy reserves in the unaudited Condensed Consolidated Statements of Operations. We purchase derivatives consisting of a combination of call options and futures contracts (specifically for indexed annuity contracts) on the applicable market indices to fund the index credits due to indexed annuity/IUL contractholders. The call options are one two three five Other market exposures are hedged periodically depending on market conditions and our risk tolerance. Our indexed annuities/IUL hedging strategy economically hedges the equity returns and exposes us to the risk that unhedged market exposures result in divergence between changes in the fair value of the liabilities and the hedging assets. We use a variety of techniques, including direct estimation of market sensitivities, to monitor this risk daily. We intend to continue to adjust the hedging strategy as market conditions and our risk tolerance changes. Interest Rate Swaps We utilize interest rate swaps to reduce market risks from interest rate changes on our earnings associated with our floating rate investments. With an interest rate swap, we agree with another party to exchange the difference between fixed-rate and floating-rate interest amounts tied to an agreed upon notional principal at specified intervals. The interest rate swaps are marked to fair value with the change in fair value, including accrued interest and related periodic cash flows received or paid, included as a component of Recognized gains and (losses), net, in the accompanying unaudited Condensed Consolidated Statements of Operations. Reinsurance Related Embedded Derivatives F&G cedes certain business on a coinsurance funds withheld basis. Investment results for the assets that support the coinsurance that are segregated within the funds withheld account are passed directly to the reinsurer pursuant to the contractual terms of the reinsurance agreement, which creates embedded derivatives considered to be total return swaps. These total return swaps are not clearly and closely related to the underlying reinsurance contract and thus require bifurcation. The fair value of the total return swaps is based on the change in fair value of the underlying assets held in the funds withheld account. These embedded derivatives are reported in Prepaid expenses and other assets if in a net gain position, or Accounts payable and accrued liabilities, if in a net loss position on the unaudited Condensed Consolidated Balance Sheets and the related gains or losses are reported in Recognized gains and (losses), net, on the unaudited Condensed Consolidated Statements of Operations. Credit Risk We are exposed to credit loss in the event of non-performance by our counterparties on the call options and interest rate swaps and reflect assumptions regarding this non-performance risk in the fair value of these derivatives. The non-performance risk is the net counterparty exposure based on the fair value of the open contracts less collateral held. We maintain a policy of requiring all derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. Information regarding our exposure to credit loss on the call options and interest rate swaps we hold is presented in the following tables. March 31, 2024 (In millions) Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 4,340 $ 132 $ 93 $ 39 Morgan Stanley AA-/Aa3/A+ 4,353 159 166 — Barclay's Bank A+/A1/A+ 6,389 124 122 2 Canadian Imperial Bank of Commerce AA-/A2/A- 5,552 163 163 — Wells Fargo AA-/Aa2/A+ 1,313 69 70 — Goldman Sachs A+/A1/A+ 2,340 45 44 1 Credit Suisse A+/A3/A+ 16 1 1 — Truist A/A2/A 3,185 135 134 1 Citibank A+/Aa3/A+ 1,145 25 26 — JP Morgan AA/Aa2/A+ 3,888 152 149 3 Total $ 32,521 $ 1,005 $ 968 $ 46 December 31, 2023 (In millions) Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 4,408 $ 96 $ 59 $ 37 Morgan Stanley AA-/Aa3/A+ 3,466 102 116 — Barclay's Bank A+/A1/A+ 6,236 102 100 2 Canadian Imperial Bank of Commerce AA-/A2/A- 5,983 147 148 — Wells Fargo AA-/Aa2/A+ 1,443 58 60 — Goldman Sachs A+/A1/A+ 1,919 45 45 — Credit Suisse A+/A3/A+ 92 4 4 — Truist A+/A2/A 2,759 124 124 — Citibank A+/Aa3/A+ 1,073 27 28 — JP Morgan AA/Aa2/A+ 2,589 91 91 — Total $ 29,968 $ 796 $ 775 $ 39 (a) An * represents credit ratings that were not available. Collateral Agreements We are required to maintain minimum ratings as a matter of routine practice as part of our over-the-counter derivative agreements on ISDA forms. Under some ISDA agreements, we have agreed to maintain certain financial strength ratings. A downgrade below these levels provides the counterparty under the agreement the right to terminate the open derivative contracts between the parties, at which time any amounts payable by us or the counterparty would be dependent on the market value of the underlying contracts. Our current rating does not allow any counterparty the right to terminate ISDA agreements. In certain transactions, both us and the counterparty have entered into a collateral support agreement requiring either party to post collateral when the net exposures exceed pre-determined thresholds. For all counterparties, except Merrill Lynch, this threshold is set to zero. As of March 31, 2024 and December 31, 2023, counterparties posted $968 million and $775 million, respectively, of collateral of which $740 million and $588 million, respectively, is included in Cash and cash equivalents with an associated payable for this collateral included in Accounts payable and accrued liabilities on the unaudited Condensed Consolidated Balance Sheets. Accordingly, the maximum amount of loss due to credit risk that we would incur if parties to the derivatives failed completely to perform according to the terms of the contracts was $46 million at March 31, 2024 and $39 million at December 31, 2023. We are required to pay counterparties the effective federal funds rate each day for cash collateral posted to F&G for daily mark to market margin changes. We reinvest derivative cash collateral to reduce the interest cost. Cash collateral is invested in overnight investment sweep products, which are included in Cash and cash equivalents in the accompanying unaudited Condensed Consolidated Balance Sheets. We held 379 and 439 futures contracts at March 31, 2024 and December 31, 2023, respectively. The fair value of the futures contracts represents the cumulative unsettled variation margin (open trade equity, net of cash settlements). We provide cash collateral to the counterparties for the initial and variation margin on the futures contracts, which is included in Cash and cash equivalents in the accompanying unaudited Condensed Consolidated Balance Sheets. The amount of cash collateral held by the counterparties for such contracts was $4 million at both March 31, 2024 and December 31, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal and Regulatory Contingencies In the ordinary course of business, we are involved in various pending and threatened litigation matters related to our operations, some of which include claims for punitive or exemplary damages. With respect to our title insurance operations, this customary litigation includes but is not limited to a wide variety of cases arising out of or related to title and escrow claims, for which we make provisions through our loss reserves. See Note B Summary of Reserve for Title Claim Losses for further discussion. Additionally, like other companies, our ordinary course litigation includes a number of class action and purported class action lawsuits, which make allegations related to aspects of our operations. We believe that no actions, other than the matters discussed below, if any, depart from customary litigation incidental to our business. We review lawsuits and other legal and regulatory matters (collectively “legal proceedings”) on an ongoing basis when making accrual and disclosure decisions. When assessing reasonably possible and probable outcomes, management bases its decision on its assessment of the ultimate outcome assuming all appeals have been exhausted. For legal proceedings in which it has been determined that a loss is both probable and reasonably estimable, a liability based on known facts and that represents our best estimate has been recorded. Our accrual for legal and regulatory matters was $10 million as of March 31, 2024 and December 31, 2023. None of the amounts we have currently recorded are considered to be material to our financial condition individually or in the aggregate. Actual losses may materially differ from the amounts recorded and the ultimate outcome of our pending legal proceedings is generally not yet determinable. While some of these matters could be material to our operating results or cash flows for any particular period if an unfavorable outcome results, at present we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition. F&G is a defendant in two putative class action lawsuits related to the alleged compromise of certain of F&G’s customers’ personal information resulting from an alleged vulnerability in the MOVEit file transfer software. F&G’s vendor, Pension Benefit Information, LLC (“PBI”), used the MOVEit software in the course of providing audit and address research services to F&G and many other corporate customers. Miller v. F&G, No. 4:23-cv-00326, was filed against F&G in the Southern District of Iowa on August 31, 2023. Miller alleges that he is an F&G customer whose information was impacted in the MOVEit incident and brings common law tort and implied contract claims. F&G has yet to be served in Miller. Plaintiff seeks injunctive relief and damages. Cooper v. Progress Software Corp., No. 1:23-cv-12067, was filed against F&G and five other defendants in the District of Massachusetts on September 7, 2023. F&G was served on September 15, 2023. Cooper also alleges that he is an F&G customer and brings similar common law tort claims and alleges claims as a purported third-party beneficiary of an alleged contract. Plaintiff seeks declaratory and injunctive relief and damages. At this time, F&G does not believe the incident will have a material impact on its business, operations, or financial results. Well over 150 similar lawsuits have been filed against other entities impacted by the MOVEit incident including a number of such lawsuits related to PBI’s use of MOVEit. On October 4, 2023, the U.S. Judicial Panel on Multidistrict Litigation (JPML) created a multidistrict litigation (MDL) pursuant to 28 U.S.C. § 1407 to handle all litigation brought by individuals whose information was potentially compromised in connection with the alleged MOVEit vulnerability. The JPML assigned the MDL to Judge Allison Burroughs of the U.S. District Court for the District of Massachusetts, and following the creation of the MDL, Miller and Cooper were transferred to Judge Burroughs. On January 19, 2024, Judge Burroughs appointed Plaintiffs’ Leadership Team and issued its First Case Management Order. Following the filing of the parties’ Joint Submission Regarding Initial Proposed Case Schedule on February 16, 2024, and a status conference with the court on March 11, 2024, the parties’ continue to work to find a mutually agreeable way to structure proceedings. The court held a status conference on April 24, 2024, and Judge Burroughs issued the Case Management Order Regarding Brief CAFA, Arbitration, Class Waiver, and Article III Standing Issues setting the deadlines for briefing of all threshold issues to be completed by September 12, 2024. In connection with the cybersecurity incident initially reported on November 21, 2023, the Company and/or its subsidiaries is a party to a consolidated putative nationwide class action, In Re: LoanCare Data Security Breach Litigation , Case No. 3:23cv1508, pending in the U.S. District Court for the Middle District of Florida and originating from the consolidation of putative class actions filed in the U.S. District Courts for the Middle District of Florida, the Central District of California, and the Western District of Missouri. On March 19, 2024, plaintiffs filed their consolidated class action complaint on behalf of a nationwide class, along with a California subclass and a Florida subclass, alleging common law tort and contract claims and certain state statutory claims. On April 17, 2024, the Company filed a motion to dismiss the consolidated complaint, and briefing is ongoing. Because of the factual issues involved and the putative nature of the action for which a class or subclass has not been certified, the Company has not yet been able to assess the probability of loss or estimate the possible loss or the range of loss. From time to time, we receive inquiries and requests for information from state insurance departments, attorneys general and other regulatory agencies about various matters relating to our business. Sometimes these take the form of civil investigative demands or subpoenas. We cooperate with all such inquiries, and we have responded to or are currently responding to inquiries from multiple governmental agencies. Also, regulators and courts have been dealing with issues arising from foreclosures and related processes and documentation. Various governmental entities are studying the title insurance product, market, pricing, and business practices, and potential regulatory and legislative changes, which may materially affect our business and operations. From time to time, we are assessed fines for violations of regulations or other matters or enter into settlements with such authorities, which may require us to pay fines or claims or take other actions. We do not anticipate such fines and settlements, either individually or in the aggregate, will have a material adverse effect on our financial condition. F&G Commitments In our F&G segment, we have unfunded commitments as of March 31, 2024 based upon the timing of when investments and agreements are executed or signed compared to when the actual investments and agreements are funded or closed. Some investments require that funding occur over a period of months or years. A summary of unfunded commitments by commitment type as of March 31, 2024 is included below: March 31, 2024 Commitment Type (In millions) Unconsolidated VIEs: Limited partnerships $ 2,366 Whole loans 678 Fixed maturity securities, ABS 341 Direct Lending 530 Other fixed maturity securities, AFS 11 Commercial mortgage loans 82 Other assets 173 Other invested assets 44 Total $ 4,225 Concurrent with the Roar purchase agreement, we executed a separate loan agreement with the sellers of Roar for us to lend up to $40 million. The loan agreement matures 60 days following the third anniversary of the first advance date. There was no balance outstanding as of March 31, 2024 and the unfunded loan commitment is included in the unfunded commitments table above in the “Other assets” line item. Refer to Note N - Acquisitions for more information on the Roar acquisition. |
Dividends
Dividends | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Dividends | Dividends On May 8, 2024, our Board of Directors declared cash dividends of $0.48 per share, payable on June 28, 2024, to FNF common shareholders of record as of June 14, 2024. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Summarized financial information concerning our reportable segments is shown in the following tables. As of and for the three months ended March 31, 2024: Title F&G Corporate and Other Elimination Total (In millions) Title premiums $ 1,033 $ — $ — $ — $ 1,033 Other revenues 484 741 56 — 1,281 Revenues from external customers 1,517 741 56 — 2,314 Interest and investment income, including recognized gains and losses, net 146 828 38 (27) 985 Total revenues 1,663 1,569 94 (27) 3,299 Depreciation and amortization 36 123 8 — 167 Interest expense — 30 19 — 49 Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates 218 142 (2) (27) 331 Income tax expense (benefit) 45 26 (8) — 63 Earnings (loss) from continuing operations before equity in earnings of unconsolidated affiliates 173 116 6 (27) 268 Equity in earnings of unconsolidated affiliates 1 — — — 1 Net earnings (loss) from continuing operations $ 174 $ 116 $ 6 $ (27) $ 269 Assets $ 7,905 $ 74,417 $ 2,174 $ — $ 84,496 Goodwill 2,797 2,017 293 — 5,107 As of and for the three months ended March 31, 2023: Title F&G Corporate and Other Total (In millions) Title premiums $ 978 $ — $ — $ 978 Other revenues 471 365 44 880 Revenues from external customers 1,449 365 44 1,858 Interest and investment income, including recognized gains and losses, net 103 504 9 616 Total revenues 1,552 869 53 2,474 Depreciation and amortization 37 90 7 134 Interest expense — 22 20 42 Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates 157 (203) (28) (74) Income tax expense (benefit) 27 (8) (5) 14 Earnings (loss) from continuing operations before equity in earnings of unconsolidated affiliates 130 (195) (23) (88) Net earnings (loss) from continuing operations $ 130 $ (195) $ (23) $ (88) Assets $ 8,017 $ 59,395 $ 2,242 $ 69,654 Goodwill 2,766 1,749 276 4,791 The activities in our segments include the following: • Title. This segment consists of the operations of our title insurance underwriters and related businesses. This segment provides core title insurance and escrow and other title-related services including loan sub-servicing, valuations, default services, and home warranty. • F&G . This segment primarily consists of the operations of our annuities and life insurance related businesses. This segment issues a broad portfolio of annuity and life products, including deferred annuities (indexed annuities and fixed rate annuities), immediate annuities and IUL. This segment also provides funding agreements and PRT solutions. • Corporate and Other. This segment consists of the operations of the parent holding company, our real estate technology subsidiaries and our remaining real estate brokerage businesses. This segment also includes certain other unallocated corporate overhead expenses and eliminations of revenues and expenses between it and our Title segment. • Elimination. This segment consists of the elimination of dividends paid from F&G to FNF, which are included in the Corporate and Other segment. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following supplemental cash flow information is provided with respect to certain cash payment and non-cash investing and financing activities: Three months ended March 31, 2024 2023 Cash paid for: (In millions) Interest $ 57 $ 34 Income taxes 3 6 Deferred sales inducements 54 29 Non-cash investing and financing activities: Change in proceeds of sales of investments available for sale receivable in period (37) 41 Change in purchases of investments available for sale payable in period 173 78 Lease liabilities recognized in exchange for lease right-of-use assets 16 9 Remeasurement of lease liabilities 13 19 Liabilities assumed in connection with acquisitions Fair value of assets acquired 474 276 Less: Total Purchase price 284 273 Liabilities and noncontrolling interests assumed $ 190 $ 3 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue Our revenue consists of: Three months ended March 31, 2024 2023 Revenue Stream Income Statement Classification Segment Total Revenue Revenue from insurance contracts: (In millions) Direct title insurance premiums Direct title insurance premiums Title $ 440 $ 428 Agency title insurance premiums Agency title insurance premiums Title 593 550 Life insurance premiums, insurance and investment product fees, and other Escrow, title-related and other fees F&G 741 365 Home warranty Escrow, title-related and other fees Title 32 30 Total revenue from insurance contracts 1,806 1,373 Revenue from contracts with customers: Escrow fees Escrow, title-related and other fees Title 167 160 Other title-related fees and income Escrow, title-related and other fees Title 145 146 ServiceLink, excluding title premiums, escrow fees, and subservicing fees Escrow, title-related and other fees Title 74 75 Real estate technology Escrow, title-related and other fees Corporate and other 35 37 Total revenue from contracts with customers 421 418 Other revenue: Loan subservicing revenue Escrow, title-related and other fees Title 66 60 Other Escrow, title-related and other fees Corporate and other 21 7 Interest and investment income Interest and investment income Various 710 611 Recognized gains and losses, net Recognized gains and losses, net Various 275 5 Total revenues Total revenues $ 3,299 $ 2,474 Our Direct title insurance premiums are recognized as revenue at the time of closing of the underlying transaction as the earnings process is then considered complete. Regulation of title insurance rates varies by state. Premiums are charged to customers based on rates predetermined in coordination with each states' respective Department of Insurance. Cash associated with such revenue is typically collected at closing of the underlying real estate transaction. Premium revenues from agency title operations are recognized when the underlying title order and transaction closing, if applicable, are complete. Revenues from our home warranty business are generated from contracts with customers to provide warranty for major home appliances. Substantially all of our home warranty contracts are one year in length and revenue is recognized ratably over the term of the contract. Escrow fees and other title-related fees and income in our Title segment are closely related to Direct title insurance premiums and are primarily associated with managing the closing of real estate transactions, including the processing of funds on behalf of the transaction participants, gathering and recording the required closing documents, providing notary and home inspection services, and other real estate or title-related activities. Revenue is primarily recognized upon closing of the underlying real estate transaction or completion of services. Cash associated with such revenue is typically collected at closing. Revenues from ServiceLink, excluding its title premiums, escrow fees and loan subservicing fees primarily include revenues from real estate appraisal services and foreclosure processing and facilitation services. Revenues from real estate appraisal services are recognized when all appraisal work is complete, a final report is issued to the client and the client is billed. Revenues from foreclosure processing and facilitation services are primarily recognized upon completion of the services and when billing to the client is complete. Life insurance premiums in our F&G segment reflect premiums for life-contingent PRT, traditional life insurance products and life-contingent immediate annuity products, which are recognized as revenue when due from the policyholder. We have ceded the majority of our traditional life business to unaffiliated third party reinsurers. While the base contract has been reinsured, we continue to retain the return of premium rider. Insurance and investment product fees and other consist primarily of the cost of insurance on IUL policies, unearned revenue liabilities ("URL") on IUL policies, policy rider fees primarily on fixed indexed annuity ("FIA") policies and surrender charges assessed against policy withdrawals in excess of the policyholder's allowable penalty-free amounts. Premium and annuity deposit collections for indexed annuities, fixed rate annuities, immediate annuities and PRT without life contingency, and amounts received for funding agreements are reported in the financial statements as deposit liabilities (i.e., contractholder funds) instead of as sales or revenues. Similarly, cash payments to customers are reported as decreases in the liability for contractholder funds and not as expenses. Sources of revenues for products accounted for as deposit liabilities include net investment income, surrender, cost of insurance and other charges deducted from contractholder funds, and net realized gains (losses) on investments. Components of expenses for products accounted for as deposit liabilities are interest-sensitive and index product benefits (primarily interest credited to account balances or the hedging cost of providing index credits to the policyholder), amortization of value of business acquired ("VOBA"), deferred acquisition costs ("DAC"), and deferred sales inducements ("DSI"), other operating costs and expenses, and income taxes. Real estate technology revenues are primarily comprised of subscription fees for use of software provided to real estate professionals. Subscriptions are only offered on a month-by-month basis and fees are billed monthly. Revenue is recognized in the month services are provided. Loan subservicing revenues are generated by certain subsidiaries of ServiceLink and are associated with the servicing of mortgage loans on behalf of its customers. Revenue is recognized when the underlying work is performed and billed. Loan subservicing revenues are subject to the recognition requirements of ASC Topic 860. Interest and investment income consists primarily of interest payments received on fixed maturity security holdings and dividends received on equity and preferred security holdings along with the investment income of limited partnerships. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, primarily related to revenue from our home warranty business, and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Contract Balances The following table provides information about trade receivables and deferred revenue: March 31, 2024 December 31, 2023 (In millions) Trade receivables $ 310 $ 317 Deferred revenue (contract liabilities) 90 91 Deferred revenue is recorded primarily for our home warranty contracts. Revenues from home warranty products are recognized over the life of the policy, which is primarily one year. The unrecognized portion is recorded as deferred revenue in Accounts payable and other accrued liabilities in the unaudited Condensed Consolidated Balance Sheets. During the three months ended March 31, 2024 and March 31 2023, we recognized $34 million a nd $32 million of revenue, respectively, which was included in deferred revenue at the beginning of the respective period. |
Value of Business Acquired, Def
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements | Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements The following table reconciles to Other intangible assets, net, on the unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023. March 31, 2024 December 31, 2023 (In millions) Customer relationships and contracts $ 340 $ 174 VOBA 1,407 1,446 DAC 2,412 2,215 DSI 392 346 Value of distribution asset 83 86 Computer software 270 266 Trademarks, tradenames, and other 123 94 Total Other intangible assets, net $ 5,027 $ 4,627 The following tables roll forward VOBA by product for the three months ended March 31, 2024 and March 31, 2023. Indexed Annuities Fixed Rate Annuities Immediate Annuities Universal Life Traditional Life Total (In millions) Balance at January 1, 2024 $ 1,025 $ 27 $ 191 $ 134 $ 69 $ 1,446 Amortization (33) (1) (2) (2) (1) (39) Balance at March 31, 2024 $ 992 $ 26 $ 189 $ 132 $ 68 $ 1,407 Indexed Annuities Fixed Rate Annuities Immediate Annuities Universal Life Traditional Life Total (In millions) Balance at January 1, 2023 $ 1,166 $ 32 $ 201 $ 143 $ 73 $ 1,615 Amortization (36) (1) (3) (2) (1) (43) Balance at March 31, 2023 $ 1,130 $ 31 $ 198 $ 141 $ 72 $ 1,572 VOBA amortization expense of $39 million and $43 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and March 31, 2023, respectively. The following tables roll forward DAC by product for the three months ended March 31, 2024 and March 31, 2023. Indexed Annuities Fixed Rate Annuities Universal Life Total (a) (In millions) Balance at January 1, 2024 $ 1,378 $ 288 $ 545 $ 2,211 Capitalization 147 44 66 257 Amortization (33) (19) (8) (60) Balance at March 31, 2024 $ 1,492 $ 313 $ 603 $ 2,408 Indexed Annuities Fixed Rate Annuities Universal Life Total (a) (In millions) Balance at January 1, 2023 $ 971 $ 83 $ 348 $ 1,402 Capitalization 113 52 56 221 Amortization (22) (5) (8) (35) Reinsurance related adjustments — 79 — 79 Balance at March 31, 2023 $ 1,062 $ 209 $ 396 $ 1,667 (a) Excludes insignificant amounts of DAC related to Funding Agreement Backed Note (“FABN”) DAC amortization expense of $60 million and $35 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and March 31, 2023, respectively, excluding insignificant amounts related to FABN. The following table presents a reconciliation of DAC to the table above, which is reconciled to the unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (In millions) Indexed Annuities $ 1,492 $ 1,378 Fixed Rate Annuities 313 288 Universal Life 603 545 Funding Agreements 4 4 Total $ 2,412 $ 2,215 The following table rolls forward DSI for our indexed annuity products for the three months ended March 31, 2024 and March 31, 2023: Three Months Ended March 31, 2024 2023 (In millions) Balance at January 1, $ 346 $ 200 Capitalization 54 29 Amortization (8) (4) Balance at March 31, $ 392 $ 225 DSI amortization expense of $8 million and $4 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and March 31, 2023, respectively. The cash flow assumptions used to amortize VOBA and DAC were consistent with the assumptions used to estimate the future policy benefits (“FPB”) for life contingent immediate annuities, and will be reviewed and unlocked, if applicable, in the same period as those balances. For nonparticipating traditional life contracts, the VOBA amortization is straight-line, without the use of cash flow assumptions. For indexed annuity contracts, the cash flow assumptions used to amortize VOBA, DAC, and DSI were consistent with the assumptions used to estimate the value of the embedded derivative and MRBs, and will be reviewed and unlocked, if applicable, in the same period as those balances. For fixed rate annuities and IUL the cash flow assumptions used to amortize VOBA, DAC and DSI reflect the Company’s best estimates for policyholder behavior, consistent with the development of assumptions for indexed annuities and immediate annuities. We review cash flow assumptions annually, generally in the third quarter. In 2023, F&G undertook a review of all significant assumptions and revised several assumptions relating to our deferred annuity (indexed annuity and fixed rate annuity) and IUL products, including surrender rates, partial withdrawal rates, mortality improvement, premium persistency, and option budgets. All updates to these assumptions brought us more in line with our company and overall industry experience since the prior assumption update. For the in-force liabilities as of March 31, 2024, the estimated amortization expense for VOBA in future fiscal periods is as follows: Estimated Amortization Expense Fiscal Year (In millions) 2024 $ 111 2025 138 2026 126 2027 115 2028 105 Thereafter 812 Total $ 1,407 |
F&G Reinsurance
F&G Reinsurance | 3 Months Ended |
Mar. 31, 2024 | |
Reinsurance Disclosures [Abstract] | |
F&G Reinsurance | F&G Reinsurance The Company reinsures portions of its policy risks with other insurance companies. The use of indemnity reinsurance does not discharge an insurer from liability on the insurance ceded. The insurer is required to pay in full the amount of its insurance liability regardless of whether it is entitled to or able to receive payment from the reinsurer. The portion of risks exceeding the Company's retention limit is reinsured. The Company primarily seeks reinsurance coverage in order to manage loss exposures, to enhance our capital position, to diversify risks and earnings, and to manage new business volume. The Company follows reinsurance accounting when the treaty adequately transfers insurance risk. Otherwise, the Company follows deposit accounting if there is inadequate transfer of insurance risk or if the underlying policy for which risk is being transferred is an investment contract that does not contain insurance risk. The effects of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the three months ended March 31, 2024 and March 31, 2023 were as follows: Three months ended March 31, 2024 March 31, 2023 Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred (In millions) Direct $ 620 $ 1,213 $ 301 $ 872 Ceded (24) (52) (26) (60) Net $ 596 $ 1,161 $ 275 $ 812 Amounts payable or recoverable for reinsurance on paid and unpaid claims are not subject to periodic or maximum limits. No policies issued by the Company have been reinsured with any foreign company, which is controlled, either directly or indirectly, by a party not primarily engaged in the business of insurance. The Company has not entered into any reinsurance agreements in which the reinsurer may unilaterally cancel any reinsurance for reasons other than non-payment of premiums or other similar credit issues. There have been no significant changes to reinsurance contracts for the three months ended March 31, 2024. The following summarizes our reinsurance recoverable (in millions) as of March 31, 2024 and December 31, 2023: Parent Company/ Reinsurance Recoverable (a) Agreement Type Products Accounting March 31, 2024 December 31, 2023 Aspida Life Re Ltd $ 6,489 $ 6,128 Coinsurance Funds Withheld Certain MYGA (b) Deposit Somerset Reinsurance Ltd 1,250 716 Coinsurance Funds Withheld Certain MYGA (b) and DA Deposit Wilton Reassurance Company 1,085 1,092 Coinsurance Block of traditional, IUL and UL (c) Reinsurance Everlake Life Insurance Company 791 509 Coinsurance (d) Certain MYGA (b) (d) Deposit Other (e) 518 536 Reinsurance recoverable, gross of allowance for credit losses 10,133 8,981 Allowance for expected credit loss (21) (21) Reinsurance recoverable, net of allowance for credit losses $ 10,112 $ 8,960 (a) Reinsurance recoverables do not include unearned ceded premiums that would be recovered in the event of early termination of certain traditional life policies. (b) As of March 31, 2024 and December 31, 2023, the combined quota share flow reinsurance amongst all reinsurers was 90% . (c) Also includes certain FGL Insurance life insurance policies that are subject to redundant reserves, reported on a statutory basis, under Regulation XXX and Guideline AXXX. (d) Reinsurance recoverable is collateralized by assets placed in a statutory comfort trust by the reinsurer and maintained for our sole benefit. (e) Represents all other reinsurers, with no single reinsurer having a carrying value in excess of 5% of total reinsurance recoverable. The Company incurred risk charge fees of $10 million during the three months ended March 31, 2024, and 2023 in relation to reinsurance agreements. Credit Losses The Company estimates expected credit losses on reinsurance recoverables using a probability of default/loss given default model. Significant inputs to the model include the reinsurer's credit risk, expected timing of recovery, industry-wide historical default experience, senior unsecured bond recovery rates, and credit enhancement features. The expected credit loss reserves were as follows: Three months ended March 31, 2024 March 31, 2023 (In millions) Balance at beginning of period $ (21) $ (10) Changes in the expected credit loss reserve — 1 Balance at end of period $ (21) $ (9) Concentration of Reinsurance Risk As indicated above, F&G has a significant concentration of reinsurance risk with third party reinsurers, ASPIDA Life Re Ltd. (“Aspida Re”), Somerset Reinsurance Ltd. (“Somerset”), Wilton Reinsurance (“Wilton Re”) and Everlake Life Insurance Company (“Everlake”) that could have a material impact on our financial position in the event that any of these reinsurers fails to perform its obligations under the various reinsurance treaties. We monitor the financial condition and financial strength of individual reinsurers using public ratings (refer to table below) and ratings reports of individual reinsurers to attempt to reduce the risk of default by such reinsurers. In addition, the risk of non-performance is further mitigated with various forms of collateral or collateral arrangements, including secured trusts, funds withheld accounts and irrevocable letters of credit. We believe that all amounts due from Aspida Re, Somerset, Wilton Re and Everlake for periodic treaty settlements, net of any applicable credit loss reserves, are collectible as of March 31, 2024. The following table presents financial strength ratings as of March 31, 2024: Parent Company/Principal Reinsurers Financial Strength Rating AM Best S&P Fitch Moody's Aspida Re A- — — — Somerset A- BBB+ — — Wilton Re A+ — A — Everlake A+ — — — |
F&G Insurance Subsidiary Financ
F&G Insurance Subsidiary Financial Information and Regulatory Matters | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
F&G Insurance Subsidiary Financial Information and Regulatory Matters | Summary of Reserve for Title Claim Losses A summary of the reserve for title claim losses follows: Three months ended March 31, 2024 2023 (In millions) Beginning balance $ 1,770 $ 1,810 Change in insurance recoverable — — Claim loss provision related to: Current year 46 43 Total title claim loss provision 46 43 Claims paid, net of recoupments related to: Current year (2) (1) Prior years (68) (61) Total title claims paid, net of recoupments (70) (62) Ending balance of claim loss reserve for title insurance $ 1,746 $ 1,791 Provision for title insurance claim losses as a percentage of title insurance premiums 4.5 % 4.5 % Several lawsuits were filed by various parties against Chicago Title Company and Chicago Title Insurance Company as its principal (collectively, the “Named Companies”) by plaintiffs claiming they were investors who were solicited by Gina Champion-Cain through her former company, ANI Development LLC (“ANI”), or other affiliates to provide funds placed in an escrow account that purportedly were to be used for high-interest, short-term loans to parties seeking to acquire California alcoholic beverage licenses. Plaintiffs further alleged that employees of Chicago Title Company assisted Ms. Champion-Cain and her entities in diverting the funds placed into an escrow account maintained by Chicago Title Company into which some of the plaintiffs’ funds were deposited. In connection with the alcoholic beverage license scheme, the SEC filed a civil enforcement proceeding asserting claims for securities fraud against Champion-Cain and ANI in a lawsuit styled, Securities and Exchange Commission v. Gina Champion-Cain and ANI Development, LLC , pending in the United States District Court for the Southern District of California. The receiver, who was appointed by the court to preserve the assets of the defendant affiliated entities, then filed a lawsuit in San Diego County Superior Court against the Named Companies seeking damages in a lawsuit styled, Krista Freitag v. Chicago Title Co. and Chicago Title Ins. Co. The Named Companies reached a global settlement with the receiver and several other investor claimants and jointly sought court approval of the global settlement and entry of an order barring any claims against the Named Companies related to the alcoholic beverage license scheme. On November 23, 2022, the federal court overruled any objections by non-joining investors and entered an order approving the global settlement barring further claims against the Named Companies (“Settlement and Bar Order”). After her receipt of the settlement funds, the receiver dismissed the lawsuit against the Named Companies. Some of the non-joining investor claimants who objected to entry of the Settlement and Bar Order appealed the decision to the United States Court of Appeals for the Ninth Circuit by (Cases 22-56206, 22-56208, and 23-55083), and appellate oral argument is expected to be held later this year. Chicago Title Company has also resolved a number of other pre-suit claims and previously-disclosed lawsuits from both individual and groups of alleged investors under confidential terms. Based on the facts and circumstances of the remaining claims, including the settlements already reached, we have recorded reserves included in our reserve for title claim losses, which we believe are adequate to cover losses related to this matter, and believe that our reserves for title claim losses are adequate. We continually upda te loss reserve estimates as new information becomes known, new loss patterns emerge, or as other contributing factors are considered and incorporated into the analysis of reserve for claim losses. Estimating future title loss payments is difficult because of the complex nature of title claims, the long periods of time over which claims are paid, significantly varying dollar amounts of individual claims and other factors. Due to the uncertainty inherent in the process and to the judgment used by management, the ultimate liability may be greater or less than our current reserves. If actual claims loss development varies from what is currently expected and is not offset by other factors, it is possible that additional reserve adjustments may be required in future periods in order to maintain our recorded reserve within a reasonable range of our actuary's central estimate. Our U.S. insurance subsidiaries, FGL Insurance, FGL NY Insurance, Raven Re and Corbeau Re file financial statements with state insurance regulatory authorities and, with the exception of Raven Re, with the National Association of Insurance Commissioners (“NAIC”) that are prepared in accordance with Statutory Accounting Principles (“SAP”) prescribed or permitted by such authorities, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the NAIC as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between SAP financial statements and financial statements prepared in accordance with GAAP are that SAP financial statements do not reflect VOBA, DAC, and DSI, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contractholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. Accordingly, SAP operating results and SAP capital and surplus may differ substantially from amounts reported in the GAAP basis financial statements for comparable items. Our non-U.S. insurance subsidiaries, F&G Life Re Ltd (Bermuda) and F&G Cayman Re Ltd (“F&G Cayman Re”), file financial statements with their respective regulators. U.S. Companies Our principal insurance subsidiaries' statutory financial statements are based on a December 31 year end. Statutory net income and statutory capital and surplus of our wholly owned insurance subsidiaries as of March 31, 2024 and December 31, 2023, were as follows (in millions): Subsidiary (state of domicile) (a) FGL Insurance FGL NY Insurance (NY) Raven Re Corbeau Re Statutory net income (loss): For the three months ended March 31, 2024 $ — $ 2 $ 15 $ (134) For the three months ended March 31, 2023 (3) 1 14 — Statutory capital and surplus: March 31, 2024 $ 1,940 $ 89 $ 155 $ 156 December 31, 2023 2,009 86 140 171 (a) FGL NY Insurance, Raven Re and Corbeau Re are subsidiaries of FGL Insurance, and the columns should not be added together. Corbeau Re was incorporated on September 1, 2023. Non-U.S. Companies Net income and capital and surplus of our wholly owned Bermuda and Cayman Islands regulated insurance subsidiaries under U.S. GAAP were as follows (in millions): Subsidiary (country of domicile) F&G Cayman Re (Cayman Islands) F&G Life Re (Bermuda) Statutory net income (loss): For the three months ended March 31, 2024 $ (31) $ 49 For the three months ended March 31, 2023 35 68 Statutory capital and surplus: March 31, 2024 $ 143 $ 61 December 31, 2023 114 11 There have been no material changes to the prescribed and permitted practices for our U.S. insurance subsidiaries, which were detailed in our Annual Report on Form 10-K, and no significant changes in the regulatory status of our insurance subsidiaries as of March 31, 2024. The prescribed and permitted statutory accounting practices have no impact on our unaudited Condensed Consolidated Financial Statements, which are prepared in accordance with GAAP. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Owned Distribution - Acquisition of Roar On January 2, 2024, F&G acquired a 70% majority ownership stake in the equity of Roar. Roar wholesales life insurance and annuity products to banks and broker dealers through a network of agents. Total initial consideration is comprised of $269 million of cash and $48 million of contingent consideration. Under the terms of the purchase agreement, the Company has agreed to make cash payments of up to $90 million over a three year period upon the achievement of certain EBITDA milestones of Roar. The initial purchase price is as follows (in millions): Cash paid for 70% majority interest of Roar shares $ 269 Less: Cash acquired net of noncontrolling interests 1 Net cash paid for 70% majority interest of Roar 268 Initial fair value of contingent consideration 48 Total net initial consideration $ 316 The following table summarizes the preliminary fair value amounts recognized for the assets acquired and liabilities assumed as of the acquisition date: Fair Value as of (In millions) Goodwill $ 268 Prepaid expenses and other assets 3 Other intangible assets 183 Total assets acquired 454 Accounts payable and accrued liabilities 2 Total liabilities assumed 2 Noncontrolling interests (fair value determined using income approach) 136 Total liabilities assumed and non-controlling interests 138 Net assets acquired $ 316 The preliminary gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the Roar acquisition consist of the following: Gross Carrying Value Estimated Useful Life Other intangible assets: (In millions) (In years) Customer relationships $ 179 12 Definite lived trademarks, tradenames, and other 4 10 Total Other intangible assets $ 183 Goodwill consists primarily of intangible assets that do not qualify for separate recognition, such as the assembled workforce and synergies between the entities. The goodwill recorded is not expected to be deductible for tax purposes. Roar’s revenues of $23 million and net earnings of $3 million are included in the unaudited Condensed Consolidated Statement of Operations for the three months ended March 31, 2024. Contingent Consideration Under the terms of the purchase agreement for Roar, we have agreed to make cash payments of up to $90 million over a three-year period upon the achievement by Roar of certain EBITDA milestones. The contingent consideration is recorded at fair value in Accounts payable and accrued liabilities. Refer to Note A - Basis of Financial Statements for more information on the Roar purchase and refer to Note C - Fair Value of Financial Instruments for more information regarding the fair value of the contingent consideration. |
Market Risk Benefits
Market Risk Benefits | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Market Risk Benefits | Market Risk Benefits The following table presents the balances of and changes in MRBs associated with indexed annuities and fixed rate annuities for the three months ended March 31, 2024 and the year ended December 31, 2023: March 31, 2024 December 31, 2023 Indexed Fixed rate annuities Indexed Fixed rate annuities (In millions) Balance, beginning of period, net liability $ 314 $ 1 $ 164 $ 1 Balance, beginning of period, before effect of changes in the instrument-specific credit risk $ 209 $ 1 $ 102 $ 1 Issuances and benefit payments 12 — (10) — Attributed fees collected and interest accrual 36 — 131 — Actual policyholder behavior different from expected 8 — 27 — Changes in assumptions and other (2) — 29 — Effects of market related movements (37) — (70) — Balance, end of period, before effect of changes in the instrument-specific credit risk $ 226 $ 1 $ 209 $ 1 Effect of changes in the instrument-specific credit risk 103 — 105 — Balance, end of period, net liability $ 329 $ 1 $ 314 $ 1 Weighted-average attained age of policyholders weighted by total AV (years) 68.20 72.55 68.28 72.59 Net amount at risk $ 1,091 $ 2 $ 1,059 $ 2 The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRBs amounts in the accompanying unaudited Condensed Consolidated Balance Sheets: March 31, 2024 December 31, 2023 Asset Liability Net Asset Liability Net (In millions) Fixed rate annuities $ — $ 1 $ 1 $ — $ 1 $ 1 Indexed annuities 95 424 329 88 402 314 Total $ 95 $ 425 $ 330 $ 88 $ 403 $ 315 The net MRB liability increased for the three months ended March 31, 2024, primarily as a result of collection of attributed fees and interest accrual as well as new MRB reserves for contracts issued within the period. These increases were partially offset by the effects of market related movements, including the impacts of higher risk-free rates and increases in the equity market related projections. For the three months ended March 31, 2024, notable changes made to the inputs to the fair value estimates of MRBs calculations included an increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and fixed rate annuities; increases in the equity market related projections resulted in a decrease in the net amount at risk associated with indexed annuities, leading to a favorable change in the value of the associated MRBs. In addition, the cash flow assumptions used to calculate MRBs reflect the Company’s best estimates for policyholder behavior. We review cash flow assumptions annually, generally in the third quarter. The net MRB liability increased for the year ended December 31, 2023, primarily as a result of collection of attributed fees and interest accrual as well actual policyholder behavior different than expected and changes in assumptions and other as discussed below. These increases were partially offset by the effects of market related movements, including the impacts of higher risk-free rates and increases in the equity market related projections. For the year ended December 31, 2023, notable changes made to the inputs to the fair value estimates of MRBs calculations included a significant increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and fixed rate annuities; increases in the equity market related projections resulted in a decrease in the net amount at risk associated with indexed annuities, leading to a favorable change in the value of the associated MRBs; and F&G’s credit spread decreased, lead to a corresponding unfavorable change in the MRBs associated with both indexed annuities and fixed rate annuities. In addition, the cash flow assumptions used to calculate MRBs reflect the Company’s best estimates for policyholder behavior. We review cash flow assumptions annually, generally in the third quarter. In 2023, F&G undertook a review of all significant assumptions and revised several assumptions relating to our deferred annuities (indexed annuities and fixed rate annuities) with MRBs including surrender rates, partial withdrawal rates, mortality improvement, and option budgets. All updates to these assumptions brought us more in line with our Company and overall industry experience since the prior assumption update. These updates, in total, led to an increase in the net MRB liability during the year ended December 31, 2023. The following tables summarize balances of and changes in contractholder funds’ account balances: March 31, 2024 Indexed annuities Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year $ 27,164 $ 13,443 $ 2,391 $ 2,613 $ 2,539 Issuances 1,381 1,341 51 — 305 Premiums received 28 — 114 — — Policy charges (a) (46) — (74) — — Surrenders and withdrawals (690) (364) (22) — — Benefit payments (119) (76) (5) (16) (329) Interest credited 139 142 33 14 24 Other 5 — — — — Balance, end of year $ 27,862 $ 14,486 $ 2,488 $ 2,611 $ 2,539 Embedded derivative adjustment (c) 468 — 107 — — Gross Liability, end of period $ 28,330 $ 14,486 $ 2,595 $ 2,611 $ 2,539 Less: Reinsurance (13) (8,612) (894) — — Net Liability, after Reinsurance $ 28,317 $ 5,874 $ 1,701 $ 2,611 $ 2,539 Weighted-average crediting rate 2.04 % 4.15 % 5.54 % N/A N/A Net amount at risk (d) N/A N/A $ 63,968 N/A N/A Cash surrender value (e) $ 25,724 $ 13,502 $ 1,938 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts, which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (e) These amounts are gross of reinsurance. December 31, 2023 Indexed annuities Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Issuances 4,722 5,061 199 — 1,256 Premiums received 103 1 382 — — Policy charges (a) (182) — (261) — — Surrenders and withdrawals (2,005) (1,142) (90) — — Benefit payments (526) (240) (27) (53) (763) Interest credited 270 405 76 54 64 Other 16 — — (1) — Balance, end of year 27,164 13,443 2,391 2,613 2,539 Embedded derivative adjustment (c) 243 — 84 — — Gross Liability, end of period 27,407 13,443 2,475 2,613 2,539 Less: Reinsurance (17) (7,520) (894) — — Net Liability, after Reinsurance $ 27,390 $ 5,923 $ 1,581 $ 2,613 $ 2,539 Weighted-average crediting rate 1.40 % 4.85 % 3.44 % N/A N/A Net amount at risk (d) N/A N/A $ 60,389 N/A N/A Cash surrender value (e) $ 25,099 $ 12,505 $ 1,872 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts, which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (e) These amounts are gross of reinsurance. The following table reconciles contractholder funds’ account balances to the contractholder funds liability in the accompanying unaudited Condensed Consolidated Balance Sheets: March 31, 2024 December 31, 2023 (In millions) Indexed annuities $ 28,330 $ 27,407 Fixed rate annuities 14,486 13,443 Immediate annuities 304 311 Universal life 2,595 2,475 Traditional life 5 5 Funding Agreement-FABN 2,611 2,613 FHLB 2,539 2,539 PRT 5 5 Total $ 50,875 $ 48,798 Annually, typically in the third quarter, we review assumptions associated with reserves for policy benefits and product guarantees. For the three months ended March 31, 2024, based on increases in interest rates and pricing changes, we updated certain indexed annuity assumptions used to calculate the fair value of the embedded derivative component within contractholder funds and also aligned reserves to actual policyholder behavior. These changes resulted in an increase in total benefits and other changes in policy reserves of approximately $57 million for the three months ended March 31, 2024. The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums: March 31, 2024 Range of guaranteed minimum crediting rate At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total Indexed Annuities (In millions) 0.00%-1.50% $ 22,671 $ 1,391 $ 522 $ 1,931 $ 26,515 1.51%-2.50% 331 1 93 568 993 Greater than 2.50% 353 1 — — 354 Total $ 23,355 $ 1,393 $ 615 $ 2,499 $ 27,862 Fixed Rate Annuities 0.00%-1.50% $ 36 $ 24 $ 1,340 $ 11,259 $ 12,659 1.51%-2.50% 4 7 21 456 488 Greater than 2.50% 870 2 4 463 1,339 Total $ 910 $ 33 $ 1,365 $ 12,178 $ 14,486 Universal Life 0.00%-1.50% $ 2,085 $ 6 $ — $ 22 $ 2,113 1.51%-2.50% — — — — — Greater than 2.50% 369 5 1 — 375 Total $ 2,454 $ 11 $ 1 $ 22 $ 2,488 December 31, 2023 Range of guaranteed minimum crediting rate At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total Indexed Annuities (In millions) 0.00%-1.50% $ 22,392 $ 1,444 $ 526 $ 1,953 $ 26,315 1.51%-2.50% 196 1 24 250 471 Greater than 2.50% 377 1 — — 378 Total $ 22,965 $ 1,446 $ 550 $ 2,203 $ 27,164 Fixed Rate Annuities 0.00%-1.50% $ 23 $ 25 $ 1,532 $ 10,271 $ 11,851 1.51%-2.50% 5 8 23 453 489 Greater than 2.50% 893 2 4 204 1,103 Total $ 921 $ 35 $ 1,559 $ 10,928 $ 13,443 Universal Life 0.00%-1.50% $ 1,987 $ 5 $ — $ 21 $ 2,013 1.51%-2.50% — — — — — Greater than 2.50% 361 16 1 — 378 Total $ 2,348 $ 21 $ 1 $ 21 $ 2,391 |
Contractholder Funds
Contractholder Funds | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Contractholder Funds | Market Risk Benefits The following table presents the balances of and changes in MRBs associated with indexed annuities and fixed rate annuities for the three months ended March 31, 2024 and the year ended December 31, 2023: March 31, 2024 December 31, 2023 Indexed Fixed rate annuities Indexed Fixed rate annuities (In millions) Balance, beginning of period, net liability $ 314 $ 1 $ 164 $ 1 Balance, beginning of period, before effect of changes in the instrument-specific credit risk $ 209 $ 1 $ 102 $ 1 Issuances and benefit payments 12 — (10) — Attributed fees collected and interest accrual 36 — 131 — Actual policyholder behavior different from expected 8 — 27 — Changes in assumptions and other (2) — 29 — Effects of market related movements (37) — (70) — Balance, end of period, before effect of changes in the instrument-specific credit risk $ 226 $ 1 $ 209 $ 1 Effect of changes in the instrument-specific credit risk 103 — 105 — Balance, end of period, net liability $ 329 $ 1 $ 314 $ 1 Weighted-average attained age of policyholders weighted by total AV (years) 68.20 72.55 68.28 72.59 Net amount at risk $ 1,091 $ 2 $ 1,059 $ 2 The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRBs amounts in the accompanying unaudited Condensed Consolidated Balance Sheets: March 31, 2024 December 31, 2023 Asset Liability Net Asset Liability Net (In millions) Fixed rate annuities $ — $ 1 $ 1 $ — $ 1 $ 1 Indexed annuities 95 424 329 88 402 314 Total $ 95 $ 425 $ 330 $ 88 $ 403 $ 315 The net MRB liability increased for the three months ended March 31, 2024, primarily as a result of collection of attributed fees and interest accrual as well as new MRB reserves for contracts issued within the period. These increases were partially offset by the effects of market related movements, including the impacts of higher risk-free rates and increases in the equity market related projections. For the three months ended March 31, 2024, notable changes made to the inputs to the fair value estimates of MRBs calculations included an increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and fixed rate annuities; increases in the equity market related projections resulted in a decrease in the net amount at risk associated with indexed annuities, leading to a favorable change in the value of the associated MRBs. In addition, the cash flow assumptions used to calculate MRBs reflect the Company’s best estimates for policyholder behavior. We review cash flow assumptions annually, generally in the third quarter. The net MRB liability increased for the year ended December 31, 2023, primarily as a result of collection of attributed fees and interest accrual as well actual policyholder behavior different than expected and changes in assumptions and other as discussed below. These increases were partially offset by the effects of market related movements, including the impacts of higher risk-free rates and increases in the equity market related projections. For the year ended December 31, 2023, notable changes made to the inputs to the fair value estimates of MRBs calculations included a significant increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and fixed rate annuities; increases in the equity market related projections resulted in a decrease in the net amount at risk associated with indexed annuities, leading to a favorable change in the value of the associated MRBs; and F&G’s credit spread decreased, lead to a corresponding unfavorable change in the MRBs associated with both indexed annuities and fixed rate annuities. In addition, the cash flow assumptions used to calculate MRBs reflect the Company’s best estimates for policyholder behavior. We review cash flow assumptions annually, generally in the third quarter. In 2023, F&G undertook a review of all significant assumptions and revised several assumptions relating to our deferred annuities (indexed annuities and fixed rate annuities) with MRBs including surrender rates, partial withdrawal rates, mortality improvement, and option budgets. All updates to these assumptions brought us more in line with our Company and overall industry experience since the prior assumption update. These updates, in total, led to an increase in the net MRB liability during the year ended December 31, 2023. The following tables summarize balances of and changes in contractholder funds’ account balances: March 31, 2024 Indexed annuities Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year $ 27,164 $ 13,443 $ 2,391 $ 2,613 $ 2,539 Issuances 1,381 1,341 51 — 305 Premiums received 28 — 114 — — Policy charges (a) (46) — (74) — — Surrenders and withdrawals (690) (364) (22) — — Benefit payments (119) (76) (5) (16) (329) Interest credited 139 142 33 14 24 Other 5 — — — — Balance, end of year $ 27,862 $ 14,486 $ 2,488 $ 2,611 $ 2,539 Embedded derivative adjustment (c) 468 — 107 — — Gross Liability, end of period $ 28,330 $ 14,486 $ 2,595 $ 2,611 $ 2,539 Less: Reinsurance (13) (8,612) (894) — — Net Liability, after Reinsurance $ 28,317 $ 5,874 $ 1,701 $ 2,611 $ 2,539 Weighted-average crediting rate 2.04 % 4.15 % 5.54 % N/A N/A Net amount at risk (d) N/A N/A $ 63,968 N/A N/A Cash surrender value (e) $ 25,724 $ 13,502 $ 1,938 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts, which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (e) These amounts are gross of reinsurance. December 31, 2023 Indexed annuities Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Issuances 4,722 5,061 199 — 1,256 Premiums received 103 1 382 — — Policy charges (a) (182) — (261) — — Surrenders and withdrawals (2,005) (1,142) (90) — — Benefit payments (526) (240) (27) (53) (763) Interest credited 270 405 76 54 64 Other 16 — — (1) — Balance, end of year 27,164 13,443 2,391 2,613 2,539 Embedded derivative adjustment (c) 243 — 84 — — Gross Liability, end of period 27,407 13,443 2,475 2,613 2,539 Less: Reinsurance (17) (7,520) (894) — — Net Liability, after Reinsurance $ 27,390 $ 5,923 $ 1,581 $ 2,613 $ 2,539 Weighted-average crediting rate 1.40 % 4.85 % 3.44 % N/A N/A Net amount at risk (d) N/A N/A $ 60,389 N/A N/A Cash surrender value (e) $ 25,099 $ 12,505 $ 1,872 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts, which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (e) These amounts are gross of reinsurance. The following table reconciles contractholder funds’ account balances to the contractholder funds liability in the accompanying unaudited Condensed Consolidated Balance Sheets: March 31, 2024 December 31, 2023 (In millions) Indexed annuities $ 28,330 $ 27,407 Fixed rate annuities 14,486 13,443 Immediate annuities 304 311 Universal life 2,595 2,475 Traditional life 5 5 Funding Agreement-FABN 2,611 2,613 FHLB 2,539 2,539 PRT 5 5 Total $ 50,875 $ 48,798 Annually, typically in the third quarter, we review assumptions associated with reserves for policy benefits and product guarantees. For the three months ended March 31, 2024, based on increases in interest rates and pricing changes, we updated certain indexed annuity assumptions used to calculate the fair value of the embedded derivative component within contractholder funds and also aligned reserves to actual policyholder behavior. These changes resulted in an increase in total benefits and other changes in policy reserves of approximately $57 million for the three months ended March 31, 2024. The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums: March 31, 2024 Range of guaranteed minimum crediting rate At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total Indexed Annuities (In millions) 0.00%-1.50% $ 22,671 $ 1,391 $ 522 $ 1,931 $ 26,515 1.51%-2.50% 331 1 93 568 993 Greater than 2.50% 353 1 — — 354 Total $ 23,355 $ 1,393 $ 615 $ 2,499 $ 27,862 Fixed Rate Annuities 0.00%-1.50% $ 36 $ 24 $ 1,340 $ 11,259 $ 12,659 1.51%-2.50% 4 7 21 456 488 Greater than 2.50% 870 2 4 463 1,339 Total $ 910 $ 33 $ 1,365 $ 12,178 $ 14,486 Universal Life 0.00%-1.50% $ 2,085 $ 6 $ — $ 22 $ 2,113 1.51%-2.50% — — — — — Greater than 2.50% 369 5 1 — 375 Total $ 2,454 $ 11 $ 1 $ 22 $ 2,488 December 31, 2023 Range of guaranteed minimum crediting rate At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total Indexed Annuities (In millions) 0.00%-1.50% $ 22,392 $ 1,444 $ 526 $ 1,953 $ 26,315 1.51%-2.50% 196 1 24 250 471 Greater than 2.50% 377 1 — — 378 Total $ 22,965 $ 1,446 $ 550 $ 2,203 $ 27,164 Fixed Rate Annuities 0.00%-1.50% $ 23 $ 25 $ 1,532 $ 10,271 $ 11,851 1.51%-2.50% 5 8 23 453 489 Greater than 2.50% 893 2 4 204 1,103 Total $ 921 $ 35 $ 1,559 $ 10,928 $ 13,443 Universal Life 0.00%-1.50% $ 1,987 $ 5 $ — $ 21 $ 2,013 1.51%-2.50% — — — — — Greater than 2.50% 361 16 1 — 378 Total $ 2,348 $ 21 $ 1 $ 21 $ 2,391 |
Future Policy Benefits
Future Policy Benefits | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Future Policy Benefits | Future Policy Benefits The following table summarizes balances and changes in the present value of expected net premiums and the present value of the expected FPB for nonparticipating traditional contracts: Traditional Life March 31, 2024 December 31, 2023 Expected net premiums (Dollars in millions) Balance, beginning of year $ 722 $ 797 Beginning balance at original discount rate 874 974 Effect of actual variances from expected experience (4) (1) Balance adjusted for variances from expectation 870 973 Interest accrual 4 19 Net premiums collected (28) (118) Ending Balance at original discount rate 846 874 Effect of changes in discount rate assumptions (157) (152) Balance, end of year $ 689 $ 722 Expected FPB Balance, beginning of year $ 2,071 $ 2,151 Beginning balance at original discount rate 2,492 2,665 Effect of actual variances from expected experience (9) (24) Balance adjusted for variances from expectation 2,483 2,641 Interest accrual 14 56 Benefits payments (51) (205) Ending Balance at original discount rate 2,446 2,492 Effect of changes in discount rate assumptions (439) (421) Balance, end of year $ 2,007 $ 2,071 Net liability for future policy benefits $ 1,318 $ 1,349 Less: Reinsurance recoverable 483 413 Net liability for future policy benefits, after reinsurance recoverable $ 835 $ 936 Weighted-average duration of liability for future policyholder benefits (years) 6.96 7.36 The following tables summarize balances and changes in the present value of the expected FPB for limited-payment contracts: March 31, 2024 Immediate annuities PRT (Dollars in millions) Balance, beginning of year $ 1,415 $ 4,189 Beginning balance at original discount rate 1,788 4,351 Effect of changes in cash flow assumptions — 11 Effect of actual variances from expected experience (4) (8) Balance adjusted for variances from expectation 1,784 4,354 Issuances 7 596 Interest accrual 14 49 Benefits payments (29) (107) Ending Balance at original discount rate 1,776 4,892 Effect of changes in discount rate assumptions (404) (237) Balance, end of year $ 1,372 $ 4,655 Net liability for future policy benefits $ 1,372 $ 4,655 Less: Reinsurance recoverable 113 — Net liability for future policy benefits, after reinsurance recoverable $ 1,259 $ 4,655 Weighted-average duration of liability for future policyholder benefits (years) 12.03 7.96 December 31, 2023 Immediate annuities PRT (Dollars in millions) Balance, beginning of year $ 1,429 $ 2,165 Beginning balance at original discount rate 1,858 2,475 Effect of changes in cash flow assumptions — (9) Effect of actual variances from expected experience (15) (7) Balance adjusted for variances from expectation $ 1,843 $ 2,459 Issuances 22 2,041 Interest accrual 51 109 Benefits payments (128) (258) Ending Balance at original discount rate $ 1,788 $ 4,351 Effect of changes in discount rate assumptions (373) (162) Balance, end of year $ 1,415 $ 4,189 Net liability for future policy benefits $ 1,415 $ 4,189 Less: Reinsurance recoverable 116 — Net liability for future policy benefits, after reinsurance recoverable $ 1,299 $ 4,189 Weighted-average duration of liability for future policyholder benefits (years) 12.47 8.23 The following tables summarize balances and changes in the liability for DPL for limited-payment contracts: March 31, 2024 December 31, 2023 Immediate annuities PRT Immediate annuities PRT (In millions) Balance, beginning of year $ 87 $ 10 $ 69 $ 4 Effect of modeling changes — — 4 — Effect of changes in cash flow assumptions — (4) — 1 Effect of actual variances from expected experience 2 2 16 5 Balance adjusted for variances from expectation 89 8 89 10 Issuances 1 — 3 — Interest accrual — — 2 1 Amortization (2) — (7) (1) Balance, end of year $ 88 $ 8 $ 87 $ 10 The following table reconciles the net FPB to the FPB in the unaudited Condensed Consolidated Balance Sheets. The DPL for Immediate Annuities and PRT is presented together with the FPB in the unaudited Condensed Consolidated Balance Sheets and has been included as a reconciling item in the table below: March 31, 2024 December 31, 2023 (In millions) Traditional Life $ 1,318 $ 1,349 Immediate annuities 1,372 1,415 PRT 4,655 4,189 Immediate annuities DPL 88 87 PRT DPL 8 10 Total $ 7,441 $ 7,050 The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts: Undiscounted Discounted March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Traditional Life (In millions) Expected future benefit payments $ 2,874 $ 3,073 $ 2,013 $ 2,155 Expected future gross premiums 1,042 1,142 751 839 Immediate annuities Expected future benefit payments $ 3,271 $ 3,402 $ 1,371 $ 1,452 Expected future gross premiums — — — — PRT Expected future benefit payments $ 8,344 $ 3,916 $ 4,899 $ 2,708 Expected future gross premiums — — — — The following table summarizes the amount of revenue and interest related to nonparticipating traditional and limited-payment contracts recognized in the unaudited Condensed Consolidated Statements of Operations: Gross Premiums (a) Interest Expense (b) March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 (In millions) Traditional Life $ 28 $ 32 $ 10 $ 9 Immediate annuities 8 6 14 16 PRT 584 263 49 23 Total $ 620 $ 301 $ 73 $ 48 (a) Included in Life insurance premiums and other fees on the unaudited Condensed Consolidated Statements of Operations. (b) Included in Benefits and other changes in policy reserves (remeasurement gains (losses) (a)) on the unaudited Condensed Consolidated Statements of Operations. The following table presents the weighted-average interest rate: March 31, 2024 December 31, 2023 Traditional Life Interest accretion rate 1.74 % 2.33 % Current discount rate 4.64 % 5.03 % Immediate annuities Interest accretion rate 3.16 % 3.14 % Current discount rate 5.20 % 4.98 % PRT Interest accretion rate 4.68 % 4.61 % Current discount rate 5.30 % 5.03 % The following tables summarize the actual experience and expected experience for mortality and lapses of the FPB: March 31, 2024 Traditional Life Immediate annuities PRT Mortality Actual experience 1.2 % 3.2 % 4.2 % Expected experience 1.4 % 2.3 % 2.8 % Lapses Actual experience — % — % — % Expected experience 0.4 % — % — % December 31, 2023 Traditional Life Immediate annuities PRT Mortality Actual experience 1.7 % 3.2 % 3.2 % Expected experience 1.4 % 1.8 % 2.3 % Lapses Actual experience — % — % — % Expected experience 0.3 % — % — % Premium deficiency testing F&G conducts annual premium deficiency testing for its long-duration contracts except for the FPB for nonparticipating traditional and limited-payment contracts. F&G also conducts annual premium deficiency testing for the VOBA of all long-duration contracts. Premium deficiency testing is performed by reviewing assumptions used to calculate the insurance liabilities and determining whether the sum of the existing contract liabilities and the present value of future gross premiums is sufficient to cover the present value of future benefits to be paid to or on behalf of policyholders and settlement costs and recover unamortized present value of future profits. Anticipated investment income, based on F&G’s experience, is considered when performing premium deficiency testing for long-duration contracts. During 2024, F&G was not required to establish any additional liabilities as a result of premium deficiency testing. F&G made changes to assumptions during the three months ended March 31, 2024 and the year ended December 31, 2023. Significant assumption inputs used in the calculation of our FPB are described below. Refer to the tables above for further details on changes to our FPB. Traditional life Significant assumption inputs to the calculation of the FPB for traditional life include mortality, lapses (including lapses due to nonpayment of premium and surrenders for cash surrender value), and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. In 2023, F&G undertook a review of all significant assumptions and revised the lapse assumption, resulting in a slight decrease to the FPB. There have been no other significant changes. Market data that underlies current discount rates was updated in 2024 from that utilized in 2023 resulting in increased discount rates that drove a moderate decrease to the FPB. Immediate annuities (life contingent) Significant assumption inputs to the calculation of the FPB for immediate annuities (life contingent) include mortality and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. In 2023, F&G undertook a review of the significant cash flow assumptions and did not make any changes to mortality. Market data that underlies current discount rates was updated in 2024 from that utilized in 2023, resulting in increased discount rates that drove a material decrease to the FPB. PRT (life contingent) Significant assumption inputs to the calculation of the FPB for PRT (life contingent) include mortality and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. In 2023, F&G undertook a review of the significant cash flow assumptions and did not make any changes to mortality. Market data that underlies current discount rates was updated in 2024 from 2023 resulting in increased discount rates that drove a material decrease to the FPB. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 248 | $ (59) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Financial Statements (
Basis of Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statements | The financial information in this report presented for interim periods is unaudited and includes the accounts of Fidelity National Financial, Inc. and its subsidiaries (collectively, “we,” “us,” “our,” the "Company" or “FNF”) prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K (our "Annual Report") for the year ended December 31, 2023. |
Earnings Per Share | Earnings Per Share Basic earnings per share, as presented on the unaudited Condensed Consolidated Statement of Operations, is computed by dividing net earnings available to common shareholders in a given period by the weighted average number of common shares outstanding during such period. In periods when earnings are positive, diluted earnings per share is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding plus assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted loss per share is equal to basic loss per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. We have granted certain stock options and shares of restricted stock, which have been treated as common share equivalents for purposes of calculating diluted earnings per share for periods in which positive earnings have been reported. Options or other instruments, which provide the ability to purchase shares of our common stock that are antidilutive, are excluded from the computation of diluted earnings per share. There were fewer than 1 million antidilutive instruments outstanding during the three months ended March 31, 2024 and 2023. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Pronouncements In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-02, Accounting for Investments in Tax Credit Structure Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force). The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. We adopted this standard on January 1, 2024, as required, and there was no material impact to our unaudited Condensed Consolidated Financial Statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this update affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction and clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. Additionally, the amendments require the following disclosures for equity securities subject to contractual sale restrictions: the fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet, the nature and remaining duration of the restriction(s), and the circumstances that could cause a lapse in the restriction(s). The amendments in this update do not change the principles of fair value measurement, rather, they clarify those principles when measuring the fair value of an equity security subject to a contractual sale restriction and improve current GAAP by reducing diversity in practice, reducing the cost and complexity in measuring fair value, and increasing comparability of financial information across reporting entities that hold those investments. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We adopted this standard as of January 1, 2024, and it did not have a material impact on our Consolidated Financial Statements and related disclosures upon adoption. Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expense categories that are regularly provided to the chief operating decision maker (CODM) and included in each reported measure of a segment’s profit or loss. In addition, the amendments enhance interim disclosure requirements that are currently required annually, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements. The amendments in this update are incremental to the current requirements of Topic 280 and do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The enhanced segment disclosure requirements apply retrospectively to all prior periods presented in the financial statements. The significant segment expense and other segment item amounts disclosed in prior periods shall be based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments in this update are effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. Early adoption is permitted, and the updates must be applied retrospectively to all periods presented in the financial statements. We do not currently expect to early adopt this standard and are in the process of assessing its impact on our disclosures upon adoption. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update enhance the transparency of the income tax disclosures by expanding on the disclosures required annually. The amendments require entities to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign income taxes, in addition to providing details about the reconciling items in some categories if above a quantitative threshold. Additionally, the amendments require annual disclosure of income taxes paid (net of refunds received) disaggregated by jurisdiction based on a quantitative threshold. The amendments in this update are effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis, however, retrospective application is permitted. We do not currently expect to early adopt this standard and are in the process of assessing its impact on our disclosures upon adoption. |
Revenue Recognition | Our Direct title insurance premiums are recognized as revenue at the time of closing of the underlying transaction as the earnings process is then considered complete. Regulation of title insurance rates varies by state. Premiums are charged to customers based on rates predetermined in coordination with each states' respective Department of Insurance. Cash associated with such revenue is typically collected at closing of the underlying real estate transaction. Premium revenues from agency title operations are recognized when the underlying title order and transaction closing, if applicable, are complete. |
Revenue Recognition, Other | We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, primarily related to revenue from our home warranty business, and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
Revenue Recognition, Services, Real Estate Transactions | Escrow fees and other title-related fees and income in our Title segment are closely related to Direct title insurance premiums and are primarily associated with managing the closing of real estate transactions, including the processing of funds on behalf of the transaction participants, gathering and recording the required closing documents, providing notary and home inspection services, and other real estate or title-related activities. Revenue is primarily recognized upon closing of the underlying real estate transaction or completion of services. Cash associated with such revenue is typically collected at closing. Revenues from ServiceLink, excluding its title premiums, escrow fees and loan subservicing fees primarily include revenues from real estate appraisal services and foreclosure processing and facilitation services. Revenues from real estate appraisal services are recognized when all appraisal work is complete, a final report is issued to the client and the client is billed. Revenues from foreclosure processing and facilitation services are primarily recognized upon completion of the services and when billing to the client is complete. Life insurance premiums in our F&G segment reflect premiums for life-contingent PRT, traditional life insurance products and life-contingent immediate annuity products, which are recognized as revenue when due from the policyholder. We have ceded the majority of our traditional life business to unaffiliated third party reinsurers. While the base contract has been reinsured, we continue to retain the return of premium rider. Insurance and investment product fees and other consist primarily of the cost of insurance on IUL policies, unearned revenue liabilities ("URL") on IUL policies, policy rider fees primarily on fixed indexed annuity ("FIA") policies and surrender charges assessed against policy withdrawals in excess of the policyholder's allowable penalty-free amounts. Premium and annuity deposit collections for indexed annuities, fixed rate annuities, immediate annuities and PRT without life contingency, and amounts received for funding agreements are reported in the financial statements as deposit liabilities (i.e., contractholder funds) instead of as sales or revenues. Similarly, cash payments to customers are reported as decreases in the liability for contractholder funds and not as expenses. Sources of revenues for products accounted for as deposit liabilities include net investment income, surrender, cost of insurance and other charges deducted from contractholder funds, and net realized gains (losses) on investments. Components of expenses for products accounted for as deposit liabilities are interest-sensitive and index product benefits (primarily interest credited to account balances or the hedging cost of providing index credits to the policyholder), amortization of value of business acquired ("VOBA"), deferred acquisition costs ("DAC"), and deferred sales inducements ("DSI"), other operating costs and expenses, and income taxes. Real estate technology revenues are primarily comprised of subscription fees for use of software provided to real estate professionals. Subscriptions are only offered on a month-by-month basis and fees are billed monthly. Revenue is recognized in the month services are provided. Loan subservicing revenues are generated by certain subsidiaries of ServiceLink and are associated with the servicing of mortgage loans on behalf of its customers. Revenue is recognized when the underlying work is performed and billed. Loan subservicing revenues are subject to the recognition requirements of ASC Topic 860. |
Summary of Reserve for Title _2
Summary of Reserve for Title Claim Losses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Summary of the Reserve for Claim Losses | A summary of the reserve for title claim losses follows: Three months ended March 31, 2024 2023 (In millions) Beginning balance $ 1,770 $ 1,810 Change in insurance recoverable — — Claim loss provision related to: Current year 46 43 Total title claim loss provision 46 43 Claims paid, net of recoupments related to: Current year (2) (1) Prior years (68) (61) Total title claims paid, net of recoupments (70) (62) Ending balance of claim loss reserve for title insurance $ 1,746 $ 1,791 Provision for title insurance claim losses as a percentage of title insurance premiums 4.5 % 4.5 % |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Carrying Amount and Estimated Fair Value of Assets and Liabilities on Recurring Basis | The estimated fair values of our financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, portions of other long-term investments and debt, which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows: March 31, 2024 Level 1 Level 2 Level 3 NAV Fair Value Assets (In millions) Cash and cash equivalents $ 3,517 $ — $ — $ — $ 3,517 Fixed maturity securities, available-for-sale: Asset-backed securities — 7,379 7,736 — 15,115 Commercial mortgage-backed securities — 4,806 12 — 4,818 Corporates 25 16,762 2,184 — 18,971 Hybrids 99 534 — — 633 Municipals — 1,529 18 — 1,547 Residential mortgage-backed securities — 2,460 4 — 2,464 U.S. Government 682 16 — — 698 Foreign Governments — 315 5 — 320 Short term investments 637 — 9 — 646 Preferred securities 192 342 8 — 542 Equity securities 720 — 14 59 793 Derivative investments — 1,015 9 — 1,024 Investment in unconsolidated affiliates — — 343 — 343 Reinsurance related embedded derivative, included in other assets — 134 — — 134 Market risk benefits asset — — 95 — 95 Other long-term investments — — 39 — 39 Total financial assets at fair value $ 5,872 $ 35,292 $ 10,476 $ 59 $ 51,699 Liabilities Derivatives: Indexed annuities/IUL embedded derivatives, included in contractholder funds — — 4,679 — 4,679 Interest rate swaps — — 19 — 19 Call options 3 — — — 3 Contingent consideration obligation — — 57 — 57 Market risk benefits liability — — 425 — 425 Total financial liabilities at fair value $ 3 $ — $ 5,180 $ — $ 5,183 December 31, 2023 Level 1 Level 2 Level 3 NAV Fair Value Assets (In millions) Cash and cash equivalents $ 2,767 $ — $ — $ — $ 2,767 Fixed maturity securities, available-for-sale: Asset-backed securities — 7,220 7,122 — 14,342 Commercial mortgage-backed securities — 4,457 18 — 4,475 Corporates 25 15,892 1,979 — 17,896 Hybrids 95 523 — — 618 Municipals — 1,562 49 — 1,611 Residential mortgage-backed securities — 2,426 3 — 2,429 U.S. Government 662 16 — — 678 Foreign Governments — 308 16 — 324 Short term investments 2,111 8 — — 2,119 Preferred securities 214 399 8 — 621 Equity securities 692 — 15 59 766 Derivative investments — 740 57 — 797 Investment in unconsolidated affiliates — — 285 — 285 Reinsurance related embedded derivative, included in other assets — 152 — — 152 Market risk benefits asset — — 88 — 88 Other long-term investments — — 37 — 37 Total financial assets at fair value $ 6,566 $ 33,703 $ 9,677 $ 59 $ 50,005 Liabilities Derivatives: Indexed annuities/ IUL embedded derivatives, included in contractholder funds — — 4,258 — 4,258 Market risk benefits liability — — 403 — 403 Derivative instruments - futures contracts 1 — — 1 Total financial liabilities at fair value $ 1 $ — $ 4,661 $ — $ 4,662 The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. March 31, 2024 Level 1 Level 2 Level 3 NAV Total Estimated Fair Value Carrying Amount Assets (In millions) FHLB common stock $ — $ 138 $ — $ — $ 138 $ 138 Commercial mortgage loans — — 2,229 — 2,229 2,550 Residential mortgage loans — — 2,590 — 2,590 2,890 Investments in unconsolidated affiliates — — 6 3,018 3,024 3,024 Policy loans — — 78 — 78 78 Other invested assets 23 — — 42 65 65 Company-owned life insurance — — 415 — 415 415 Trade and notes receivables, net of allowance — — 409 — 409 409 Total $ 23 $ 138 $ 5,727 $ 3,060 $ 8,948 $ 9,569 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 41,488 $ — $ 41,488 $ 46,194 Debt — 3,561 — — 3,561 3,884 Total $ — $ 3,561 $ 41,488 $ — $ 45,049 $ 50,078 December 31, 2023 Level 1 Level 2 Level 3 NAV Total Estimated Fair Value Carrying Amount Assets (In millions) FHLB common stock $ — $ 138 $ — $ — $ 138 $ 138 Commercial mortgage loans — — 2,253 — 2,253 2,538 Residential mortgage loans — — 2,545 — 2,545 2,798 Investments in unconsolidated affiliates — — 7 2,779 2,786 2,786 Policy loans — — 71 — 71 71 Other invested assets 17 — — 42 59 59 Company-owned life insurance — — 397 — 397 397 Trade and notes receivables, net of allowance — — 442 — 442 442 Total $ 17 $ 138 $ 5,715 $ 2,821 $ 8,691 $ 9,229 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 40,229 $ — $ 40,229 $ 44,540 Debt — 3,568 — — 3,568 3,887 Total $ — $ 3,568 $ 40,229 $ — $ 43,797 $ 48,427 |
Quantitative Information Regarding Significant Unobservable Inputs Used for Recurring Level Three Fair Value Measurements of Financial Instruments | Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of March 31, 2024 and December 31, 2023, excluding assets and liabilities for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services), are as follow: Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) March 31, 2024 (In millions) March 31, 2024 Assets Asset-backed securities $ 89 Third-Party Valuation Discount Rate 5.27% - 6.54% (6.03%) Commercial mortgage-backed securities 1 Third-Party Valuation Discount Rate 6.90% - 7.84% (7.22%) Corporates 4 Discounted Cash Flow Discount Rate 43.75% - 100.00% (57.07%) Corporates 760 Third-Party Valuation Discount Rate 4.16% - 12.87% (7.06%) Residential mortgage-backed securities 3 Third-Party Valuation Discount Rate 5.64% - 5.64% (5.64%) Foreign Governments 5 Third-Party Valuation Discount Rate 6.77% - 6.77% (6.77%) Investment in unconsolidated affiliates 343 Market Comparable Company Analysis EBITDA Multiple 14.1x - 20.2x (16x) Adjusted Transaction Value N/A N/A Preferred securities 1 Discounted Cash Flow Discount rate 100.00% - 100.00% (100.00%) Equity securities 7 Discounted Cash Flow Discount rate 10.90% - 10.90% (10.90%) Market Comparable Company Analysis EBITDA multiple 6x - 6x (6x) Other long-term investments: Available-for-sale embedded derivative 30 Black Scholes Model Market Value of AnchorPath Fund 100.00% Market risk benefits asset 95 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.13%) Partial Withdrawal Rates 2.00% - 20.41% (2.50%) Non-Performance Spread 0.35% - 1.02% (0.87%) GMWB Utilization 50.00% - 60.00% (50.81%) Total financial assets at fair value (a) $ 1,338 Liabilities Derivative investments: Indexed annuity/ IUL embedded derivatives, included in contractholder funds $ 4,679 Discounted Cash Flow Market Value of Option 0.00% - 24.11% (3.52%) Mortality Multiplier 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 70.00% (6.80%) Partial Withdrawals 2.00% - 35.71% (2.74%) Non-Performance Spread 0.35% - 1.02% (0.87%) Option Cost 0.07% - 5.70% (2.47%) Contingent consideration 57 Discounted Cash Flow Risk-Adjusted Discount Rate 13.50% - 13.50% (13.50%) EBITDA Volatility 35.00% - 35.00% (35.00%) Counterparty-Discount Rate 7.00% - 7.00% (7.00%) Market risk benefits liability 425 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.13%) Partial Withdrawal Rates 2.00% - 20.41% (2.50%) Non-Performance Spread 0.35% - 1.02% (0.87%) GMWB Utilization 50.00% - 60.00% (50.81%) Total financial liabilities at fair value (a) $ 5,161 (a) Assets of $9,138 million and liabilities of $19 million for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services) are excluded from the respective totals in the table above. Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2023 (In millions) December 31, 2023 Assets Asset-backed securities $ 57 Third-Party Valuation Discount Rate 5.09% - 6.95% (6.00%) Corporates 787 Third-Party Valuation Discount Rate 0.00% - 12.87% (6.91%) Corporates 8 Discounted Cash Flow Discount Rate 44.00% - 100.00% (75.20%) Municipals 32 Third-Party Valuation Discount Rate 6.25% - 6.25% (6.25%) Residential mortgage-backed securities 3 Third-Party Valuation Discount Rate 5.46% - 5.46% (5.46%) Foreign Governments 16 Third-Party Valuation Discount Rate 6.94% - 7.68% (7.45%) Investment in unconsolidated affiliates 285 Market Comparable Company Analysis EBITDA Multiple 4.4x - 31.8x (23.2x) Preferred securities 1 Discounted Cash Flow Discount rate 100.00% Equity securities 7 Discounted Cash Flow Discount rate 11.50% - 11.50% (11.50%) Other long-term investments: Available-for-sale embedded derivative 28 Black Scholes Model Market Value of Fund 100.00% Market risk benefits asset 88 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.22%) Partial Withdrawal Rates —% - 23.26% (2.50%) Non-Performance Spread 0.38% - 1.10% (0.96%) GMWB Utilization 50.00% - 60.00% (50.81%) Total financial assets at fair value (a) $ 1,312 Liabilities Derivatives Indexed annuity/ IUL embedded derivatives, included in contractholder funds 4,258 Discounted Cash Flow Market Value of Option 0.00% - 18.93% (2.63%) Swap rates 3.84% - 5.26% (4.55%) Mortality Multiplier 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 70.00% (6.83%) Partial Withdrawals 2.00% - 34.48% (2.74%) Non-Performance Spread 0.38% - 1.10% (0.96%) Option cost 0.07% - 5.48% (2.38%) Market risk benefits liability 403 Discounted Cash Flow Mortality 100.00%- 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.22%) Partial Withdrawal Rates 0.00% - 23.26% (2.50%) Non-Performance Spread 0.38% - 1.10% (0.96%) GMWB Utilization 50.00% - 60.00% (50.81%) Total financial liabilities at fair value $ 4,661 (a) Assets of $8,365 million for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services) are excluded from the table above. |
Changes in Fair Value of Financial Instruments - Assets | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three months ended March 31, 2024 and 2023. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Three months ended March 31, 2024 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 7,122 $ (12) $ 104 $ 762 $ (19) $ (202) $ (19) $ 7,736 $ 104 Commercial mortgage-backed securities 18 — — 1 — — (7) 12 — Corporates 1,979 — 13 217 (3) (22) — 2,184 13 Municipals 49 — 1 — (32) — — 18 1 Residential mortgage-backed securities 3 — — 1 — — — 4 — Foreign Governments 16 — — — — (11) — 5 — Preferred securities 8 — — — — — — 8 — Equity securities 15 (1) — — — — — 14 — Interest Rate Swaps 57 (48) — — — — — 9 — Investment in unconsolidated affiliates 285 58 — — — — — 343 — Short term investments — — — 9 — — — 9 — Other long-term investments: Available-for-sale embedded derivative 27 — 3 — — — — 30 3 Credit linked note 10 — — — — (1) — 9 — Subtotal Level 3 assets at fair value $ 9,589 $ (3) $ 121 $ 990 $ (54) $ (236) $ (26) $ 10,381 $ 121 Market risk benefits asset (b) 88 95 Total Level 3 assets at fair value $ 9,677 $ 10,476 Liabilities Indexed annuity/ IUL embedded derivatives, included in contractholder funds 4,258 200 — 288 — (67) — 4,679 — Interest rate swaps — 19 — — — — — 19 — Contingent consideration (c) — 9 — 48 — — — 57 — Subtotal Level 3 liabilities at fair value $ 4,258 $ 228 $ — $ 336 $ — $ (67) $ — $ 4,755 $ — Market risk benefits liability (b) 403 425 Total Level 3 liabilities at fair value $ 4,661 $ 5,180 (a) The net transfers out of Level 3 during the three months ended March 31, 2024 were exclusively to Level 2. (b) Refer to Note O- Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. (c) The initial contingent consideration recorded in the Roar transaction is included in purchases in the table above. Refer to Note N - Acquisitions for more information. Three months ended March 31, 2023 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 6,263 $ (8) $ 18 $ 416 $ (83) $ (235) $ (71) $ 6,300 $ 18 Commercial mortgage-backed securities 37 — 1 12 — — (21) 29 1 Corporates 1,440 (1) (23) 133 — (5) — 1,544 (23) Municipals 29 — 3 — — — — 32 3 Residential mortgage-backed securities 302 1 8 8 — (8) (299) 12 8 Foreign Governments 16 — — — — — — 16 — Investment in unconsolidated affiliates 23 — — 84 — — — 107 — Short term investments — — — 23 — — — 23 — Preferred securities 1 — — — — — — 1 — Equity securities 10 — — 1 — — — 11 — Other long-term investments: Available-for-sale embedded derivative 23 — 2 — — — — 25 2 Credit linked note 15 — — — — (2) — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal Level 3 assets at fair value $ 8,169 $ (8) $ 9 $ 677 $ (83) $ (250) $ (391) $ 8,123 $ 9 Market risk benefits asset (b) 117 106 Total Level 3 assets at fair value $ 8,286 $ 8,229 Liabilities Indexed annuity/IUL embedded derivatives, included in contractholder funds 3,115 385 — 96 — (27) — 3,569 — Subtotal Level 3 liabilities at fair value $ 3,115 $ 385 $ — $ 96 $ — $ (27) $ — $ 3,569 $ — Market risk benefits liability (b) 282 324 Total Level 3 liabilities at fair value $ 3,397 $ 3,893 (a) The net transfers out of Level 3 during the three months ended March 31, 2023 were to Level 2. (b) Refer to Note O - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. |
Changes in Fair Value of Financial Instruments - Liabilities | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three months ended March 31, 2024 and 2023. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Three months ended March 31, 2024 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 7,122 $ (12) $ 104 $ 762 $ (19) $ (202) $ (19) $ 7,736 $ 104 Commercial mortgage-backed securities 18 — — 1 — — (7) 12 — Corporates 1,979 — 13 217 (3) (22) — 2,184 13 Municipals 49 — 1 — (32) — — 18 1 Residential mortgage-backed securities 3 — — 1 — — — 4 — Foreign Governments 16 — — — — (11) — 5 — Preferred securities 8 — — — — — — 8 — Equity securities 15 (1) — — — — — 14 — Interest Rate Swaps 57 (48) — — — — — 9 — Investment in unconsolidated affiliates 285 58 — — — — — 343 — Short term investments — — — 9 — — — 9 — Other long-term investments: Available-for-sale embedded derivative 27 — 3 — — — — 30 3 Credit linked note 10 — — — — (1) — 9 — Subtotal Level 3 assets at fair value $ 9,589 $ (3) $ 121 $ 990 $ (54) $ (236) $ (26) $ 10,381 $ 121 Market risk benefits asset (b) 88 95 Total Level 3 assets at fair value $ 9,677 $ 10,476 Liabilities Indexed annuity/ IUL embedded derivatives, included in contractholder funds 4,258 200 — 288 — (67) — 4,679 — Interest rate swaps — 19 — — — — — 19 — Contingent consideration (c) — 9 — 48 — — — 57 — Subtotal Level 3 liabilities at fair value $ 4,258 $ 228 $ — $ 336 $ — $ (67) $ — $ 4,755 $ — Market risk benefits liability (b) 403 425 Total Level 3 liabilities at fair value $ 4,661 $ 5,180 (a) The net transfers out of Level 3 during the three months ended March 31, 2024 were exclusively to Level 2. (b) Refer to Note O- Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. (c) The initial contingent consideration recorded in the Roar transaction is included in purchases in the table above. Refer to Note N - Acquisitions for more information. Three months ended March 31, 2023 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Included in OCI Included in Included in Assets (In millions) Fixed maturity securities available-for-sale: Asset-backed securities $ 6,263 $ (8) $ 18 $ 416 $ (83) $ (235) $ (71) $ 6,300 $ 18 Commercial mortgage-backed securities 37 — 1 12 — — (21) 29 1 Corporates 1,440 (1) (23) 133 — (5) — 1,544 (23) Municipals 29 — 3 — — — — 32 3 Residential mortgage-backed securities 302 1 8 8 — (8) (299) 12 8 Foreign Governments 16 — — — — — — 16 — Investment in unconsolidated affiliates 23 — — 84 — — — 107 — Short term investments — — — 23 — — — 23 — Preferred securities 1 — — — — — — 1 — Equity securities 10 — — 1 — — — 11 — Other long-term investments: Available-for-sale embedded derivative 23 — 2 — — — — 25 2 Credit linked note 15 — — — — (2) — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal Level 3 assets at fair value $ 8,169 $ (8) $ 9 $ 677 $ (83) $ (250) $ (391) $ 8,123 $ 9 Market risk benefits asset (b) 117 106 Total Level 3 assets at fair value $ 8,286 $ 8,229 Liabilities Indexed annuity/IUL embedded derivatives, included in contractholder funds 3,115 385 — 96 — (27) — 3,569 — Subtotal Level 3 liabilities at fair value $ 3,115 $ 385 $ — $ 96 $ — $ (27) $ — $ 3,569 $ — Market risk benefits liability (b) 282 324 Total Level 3 liabilities at fair value $ 3,397 $ 3,893 (a) The net transfers out of Level 3 during the three months ended March 31, 2023 were to Level 2. (b) Refer to Note O - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Consolidated Investments | The Company’s consolidated investments at March 31, 2024 and December 31, 2023 are summarized as follows: March 31, 2024 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities (In millions) Asset-backed securities $ 15,254 $ (11) $ 280 $ (408) $ 15,115 Commercial mortgage-backed securities 5,040 (21) 38 (239) 4,818 Corporates 21,430 (7) 133 (2,585) 18,971 Hybrids 667 — 4 (38) 633 Municipals 1,773 — 11 (237) 1,547 Residential mortgage-backed securities 2,550 (1) 31 (116) 2,464 U.S. Government 706 — 3 (11) 698 Foreign Governments 369 — — (49) 320 Total available-for-sale securities $ 47,789 $ (40) $ 500 $ (3,683) $ 44,566 December 31, 2023 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities (In millions) Asset-backed securities $ 14,631 $ (11) $ 191 $ (469) $ 14,342 Commercial mortgage-backed/asset-backed securities 4,797 (22) 23 (323) 4,475 Corporates 20,133 (6) 186 (2,417) 17,896 Hybrids 668 — 3 (53) 618 Municipals 1,826 — 14 (229) 1,611 Residential mortgage-backed securities 2,507 (3) 29 (104) 2,429 U.S. Government 679 — 8 (9) 678 Foreign Governments 365 — 3 (44) 324 Total available-for-sale securities $ 45,606 $ (42) $ 457 $ (3,648) $ 42,373 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturity securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. March 31, 2024 December 31, 2023 (In millions) (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and Government securities: Due in one year or less $ 709 $ 691 $ 703 $ 687 Due after one year through five years 4,765 4,643 4,320 4,209 Due after five years through ten years 3,940 3,770 3,195 3,048 Due after ten years 15,531 13,065 15,453 13,183 Subtotal 24,945 22,169 23,671 21,127 Other securities, which provide for periodic payments: Asset-backed securities 15,254 15,115 14,631 14,342 Commercial mortgage-backed securities 5,040 4,818 4,797 4,475 Residential mortgage-backed securities 2,550 2,464 2,507 2,429 Subtotal 22,844 22,397 21,935 21,246 Total fixed maturity available-for-sale securities $ 47,789 $ 44,566 $ 45,606 $ 42,373 |
Fair Value and Gross Unrealized Losses of Available-for-sale Securities | The fair value and gross unrealized losses of AFS securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized Available-for-sale securities (In millions) Asset-backed securities $ 1,558 $ (41) $ 4,568 $ (358) $ 6,126 $ (399) Commercial mortgage-backed securities 470 (8) 2,048 (203) 2,518 (211) Corporates 3,645 (136) 11,062 (2,449) 14,707 (2,585) Hybrids 71 (2) 464 (36) 535 (38) Municipals 340 (51) 935 (186) 1,275 (237) Residential mortgage-backed securities 507 (9) 687 (99) 1,194 (108) U.S. Government 337 (2) 147 (9) 484 (11) Foreign Government 42 (2) 187 (46) 229 (48) Total available-for-sale securities $ 6,970 $ (251) $ 20,098 $ (3,386) $ 27,068 $ (3,637) Total number of available-for-sale securities in an unrealized loss position less than twelve months 1,371 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 2,775 Total number of available-for-sale securities in an unrealized loss position 4,146 December 31, 2023 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized Available-for-sale securities (In millions) Asset-backed securities $ 1,707 $ (56) $ 5,835 $ (404) $ 7,542 $ (460) Commercial mortgage-backed securities 819 (53) 1,922 (235) 2,741 (288) Corporates 2,387 (134) 10,739 (2,283) 13,126 (2,417) Hybrids 60 (2) 483 (51) 543 (53) Municipals 399 (49) 920 (179) 1,319 (228) Residential mortgage-backed securities 336 (5) 662 (89) 998 (94) U.S. Government 84 — 159 (9) 243 (9) Foreign Government 49 (3) 188 (41) 237 (44) Total available-for-sale securities $ 5,841 $ (302) $ 20,908 $ (3,291) $ 26,749 $ (3,593) Total number of available-for-sale securities in an unrealized loss position less than twelve months 1,035 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 2,846 Total number of available-for-sale securities in an unrealized loss position 3,881 |
Schedule of Distribution of CMLs, Gross Valuation by Property Type and Geographic Region | The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables: March 31, 2024 December 31, 2023 Gross Carrying Value % of Total Gross Carrying Value % of Total Property Type: (In millions) (In millions) Hotel $ 18 1 % $ 18 1 % Industrial 617 24 % 616 24 % Mixed Use 11 — % 11 — % Multifamily 1,012 39 % 1,012 40 % Office 315 13 % 316 13 % Retail 101 4 % 102 4 % Student Housing 83 3 % 83 3 % Other 406 16 % 392 15 % Total commercial mortgage loans, gross of valuation allowance $ 2,563 100 % $ 2,550 100 % Allowance for expected credit loss (13) (12) Total commercial mortgage loans, net of valuation allowance $ 2,550 $ 2,538 U.S. Region: East North Central $ 104 4 % $ 151 6 % East South Central 75 3 % 75 3 % Middle Atlantic 354 14 % 354 14 % Mountain 386 15 % 352 14 % New England 92 3 % 168 6 % Pacific 765 30 % 766 30 % South Atlantic 618 24 % 563 22 % West North Central 21 1 % 4 — % West South Central 148 6 % 117 5 % Total commercial mortgage loans, gross of valuation allowance $ 2,563 100 % $ 2,550 100 % Allowance for expected credit loss (13) (12) Total commercial mortgage loans, net of valuation allowance $ 2,550 $ 2,538 |
Loans Segregated by Risk Rating Exposure | CMLs segregated by aging of the loans and charge offs (by year of origination) as of March 31, 2024 and December 31, 2023, were as follows, gross of valuation allowances: March 31, 2024 Amortized Cost by Origination Year 2024 2023 2022 2021 2020 Prior Total Commercial mortgages (In millions) Current (less than 30 days past due) $ 35 $ 214 $ 288 $ 1,256 $ 513 $ 257 $ 2,563 30-89 days past due — — — — — — — 90 days or more past due — — — — — — — Total CMLs $ 35 $ 214 $ 288 $ 1,256 $ 513 $ 257 $ 2,563 ......................................................................................................... Charge offs..................................................................................... $ — $ — $ — $ — $ — $ — $ — December 31, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Commercial mortgages (In millions) Current (less than 30 days past due) $ 213 $ 288 $ 1,256 $ 512 $ — $ 259 $ 2,528 30-89 days past due — — — — — — — 90 days or more past due — — — — — — — Total CMLs (a) $ 213 $ 288 $ 1,256 $ 512 $ — $ 259 $ 2,528 ......................................................................................................... Charge offs..................................................................................... $ — $ — $ — $ — $ — $ 3 $ 3 (a) Excludes loans under development with an amortized cost and estimated fair value of $22 million. March 31, 2024 Amortized Cost by Origination Year 2024 2023 2022 2021 2020 Prior Total Residential mortgages (In millions) Current (less than 30 days past due) $ 56 $ 402 $ 984 $ 874 $ 185 $ 361 $ 2,862 30-89 days past due — 1 2 3 6 4 16 90 days or more past due — 1 11 18 12 24 66 Total residential mortgages $ 56 $ 404 $ 997 $ 895 $ 203 $ 389 $ 2,944 December 31, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Residential mortgages (In millions) Current (less than 30 days past due) $ 373 $ 985 $ 854 $ 192 $ 183 $ 192 $ 2,779 30-89 days past due — 4 7 3 — 2 16 90 days or more past due — 6 16 13 21 1 57 Total residential mortgages $ 373 $ 995 $ 877 $ 208 $ 204 $ 195 $ 2,852 |
Schedule of Investment in Mortgage Loans by Loan to Value and Debt Service Coverage Ratios | The following tables present the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios, gross of valuation allowances at March 31, 2024 and December 31, 2023 : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 <1.00 March 31, 2024 (In millions) LTV Ratios: Less than 50.00% $ 479 $ — $ 14 $ 493 19 % $ 477 21 % 50.00% to 59.99% 864 — — 864 34 % 754 34 % 60.00% to 74.99% 1,134 57 — 1,191 46 % 983 44 % 75.00% to 84.99% — 6 9 15 1 % 15 1 % CMLs $ 2,477 $ 63 $ 23 $ 2,563 100 % $ 2,229 100 % December 31, 2023 LTV Ratios: Less than 50.00% $ 519 $ 4 $ 10 $ 533 21 % $ 510 23 % 50.00% to 59.99% 764 — — 764 30 % 679 30 % 60.00% to 74.99% 1,160 56 — 1,216 48 % 1,028 46 % 75.00% to 84.99% — 6 9 15 1 % 14 1 % CMLs (a) $ 2,443 $ 66 $ 19 $ 2,528 100 % $ 2,231 100 % (a) Excludes loans under development with an amortized cost and estimated fair value of $22 million. March 31, 2024 Amortized Cost by Origination Year 2024 2023 2022 2021 2020 Prior Total Commercial mortgages (In millions) LTV Less than 50.00% $ 35 $ 86 $ 17 $ 77 $ 156 $ 122 $ 493 50.00% to 59.99% — 53 149 292 235 135 864 60.00% to 74.99% — 69 113 887 122 — 1,191 75.00% to 84.99% — 6 9 — — — 15 Total CMLs $ 35 $ 214 $ 288 $ 1,256 $ 513 $ 257 $ 2,563 Commercial mortgages DSCR Greater than 1.25x $ 35 $ 154 $ 276 $ 1,256 $ 513 $ 243 $ 2,477 1.00x - 1.25x — 60 3 — — — 63 Less than 1.00x — — 9 — — 14 23 Total CMLs $ 35 $ 214 $ 288 $ 1,256 $ 513 $ 257 $ 2,563 December 31, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2018 Prior Total Commercial mortgages (In millions) LTV Less than 50.00% $ 85 $ 17 $ 77 $ 232 $ — $ 122 $ 533 50.00% to 59.99% 53 149 267 158 — 137 764 60.00% to 74.99% 69 113 912 122 — — 1,216 75.00% to 84.99% 6 9 — — — — 15 Total CMLs (a) $ 213 $ 288 $ 1,256 $ 512 $ — $ 259 $ 2,528 Commercial mortgages DSCR Greater than 1.25x $ 154 $ 276 $ 1,256 $ 512 $ — $ 245 $ 2,443 1.00x - 1.25x 59 3 — — — 4 66 Less than 1.00x — 9 — — — 10 19 Total CMLs (a) $ 213 $ 288 $ 1,256 $ 512 $ — $ 259 $ 2,528 |
Schedule of Residential Mortgage Loans by State | The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables, gross of valuation allowances: March 31, 2024 Amortized Cost % of Total U.S. State: (In millions) Florida $ 164 5 % California 142 5 % All other states (a) 2,638 90 % Total RMLs, gross of valuation allowance $ 2,944 100 % Allowance for expected credit loss (54) Total RMLs, net of valuation allowance $ 2,890 (a) The individual concentration of each state is equal to or less than 5% as of March 31, 2024. December 31, 2023 Amortized Cost % of Total U.S. State: (In millions) Florida $ 163 6 % New York 129 5 % Texas 129 5 % All other states (a) 2,431 84 % Total RMLs, gross of valuation allowance $ 2,852 100 % Allowance for expected credit loss (54) Total RMLs, net of valuation allowance $ 2,798 (a) The individual concentration of each state is equal to or less than 5% as of December 31, 2023. |
Schedule of Loans with Credit Quality Indicators, Performing or Nonperforming | The credit quality of RMLs as of March 31, 2024 and December 31, 2023, was as follows: March 31, 2024 December 31, 2023 Amortized Cost % of Total Amortized Cost % of Total Performance indicators: (In millions) (In millions) Performing $ 2,878 98 % $ 2,795 98 % Non-performing 66 2 % 57 2 % Total RMLs, gross of valuation allowance $ 2,944 100 % $ 2,852 100 % Allowance for expected loan loss (54) — % (54) — % Total RMLs, net of valuation allowance $ 2,890 100 % $ 2,798 100 % |
Nonaccrual Loans by Amortized Cost | Non-accrual loans by amortized cost as of March 31, 2024 and December 31, 2023, were as follows: March 31, 2024 December 31, 2023 Amortized cost of loans on non-accrual (In millions) Residential mortgage: $ 66 $ 57 Commercial mortgage: — — Total non-accrual mortgages $ 66 $ 57 |
Allowance for Expected Credit Losses on Loans | The allowances for our mortgage loan portfolio are summarized as follows: Three months ended March 31, 2024 (In millions) Residential Mortgage Commercial Mortgage Total Beginning Balance $ 54 $ 12 $ 66 Provision for loan losses — 1 1 Ending Balance $ 54 $ 13 $ 67 Three months ended March 31, 2023 (In millions) Residential Mortgage Commercial Mortgage Total Beginning Balance $ 32 $ 10 $ 42 Provision for loan losses 16 2 18 Ending Balance $ 48 $ 12 $ 60 |
Schedule of Sources of Net Investment Income Reported | The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows: Three months ended March 31, 2024 March 31, 2023 (In millions) Fixed maturity securities, available-for-sale $ 534 $ 447 Equity securities 10 8 Preferred securities 8 13 Mortgage loans 66 51 Invested cash and short-term investments 47 33 Limited partnerships 54 57 Tax deferred property exchange income 32 45 Other investments 29 19 Gross investment income 780 673 Investment expense (70) (62) Interest and investment income $ 710 $ 611 |
Recognized Gains and Losses, net | Details underlying Recognized gains and losses, net reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows: Three months ended March 31, 2024 March 31, 2023 (In millions) Net realized (losses) on fixed maturity available-for-sale securities $ (19) $ (50) Net realized/unrealized gains on equity securities (1) 54 33 Net realized/unrealized gains (losses) on preferred securities (2) 16 (10) Net realized/unrealized gains (losses) on other invested assets 60 (5) Change in allowance for expected credit losses — (4) Derivatives and embedded derivatives: Realized gains (losses) on certain derivative instruments 21 (89) Unrealized gains on certain derivative instruments 156 147 Change in fair value of reinsurance related embedded derivatives (3) (18) (19) Change in fair value of other derivatives and embedded derivatives 5 2 Realized gains on derivatives and embedded derivatives 164 41 Recognized gains and losses, net $ 275 $ 5 (1) Includes net valuation gains of $22 million and $46 million for the three months ended March 31, 2024 and 2023, respectively. (2) Includes net valuation gains of $15 million and $35 million for the three months ended March 31, 2024 and 2023, respectively. (3) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties. |
Proceeds from Sale of Fixed Maturity Available-for-sale Securities | The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows: Three months ended March 31, 2024 March 31, 2023 (In millions) Proceeds $ 583 $ 489 Gross gains 6 1 Gross losses (25) (51) |
Schedule of Carrying Value and Maximum Loss Exposure, Unconsolidated VIEs | The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (In millions) (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment in unconsolidated affiliates $ 3,367 $ 5,733 $ 3,071 $ 4,806 Fixed maturity securities 21,991 23,442 20,837 22,346 Total unconsolidated VIE investments $ 25,358 $ 29,175 $ 23,908 $ 27,152 |
Schedules of Investment Concentrations | Our underlying investment concentrations that exceed 10% of shareholders equity are as follows: March 31, 2024 (In millions) Blackstone Wave Asset Holdco (1) $ 733 (1) Represents a special purpose vehicle that holds investments in numerous limited partnership investments whose underlying investments are further diversified by holding interest in multiple individual investments and industries. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Carrying Amount of Derivative Instruments | The carrying amounts of derivative instruments, including derivative instruments embedded in indexed annuities and IUL contracts, and reinsurance is as follows: March 31, 2024 December 31, 2023 Assets: (In millions) Derivative investments: Call options $ 1,015 $ 739 Interest rate swaps 9 57 Foreign currency forward — 1 Other long-term investments: Other embedded derivatives 30 28 Prepaid expenses and other assets: Reinsurance related embedded derivatives 134 152 Total $ 1,188 $ 977 Liabilities: Contractholder funds: Indexed annuities/IUL embedded derivatives $ 4,679 $ 4,258 Accounts payable and accrued liabilities: Interest rate swaps 19 — Total $ 4,698 $ 4,258 |
Change in Fair Value of Derivative Instruments | The change in fair value of derivative instruments included within Recognized gains and (losses), net in the accompanying unaudited Condensed Consolidated Statements of Operations is as follows: Three months ended March 31, 2024 March 31, 2023 (In millions) Net investment gains (losses): Call options $ 250 $ 55 Interest rate swaps (80) — Futures contracts 6 5 Foreign currency forwards 3 (1) Other derivatives and embedded derivatives 3 1 Reinsurance related embedded derivatives (18) (19) Total net investment gains $ 164 $ 41 Benefits and other changes in policy reserves: Indexed annuities/IUL embedded derivatives increase $ 421 $ 454 |
Exposure to Credit Loss on Call Options Held | Information regarding our exposure to credit loss on the call options and interest rate swaps we hold is presented in the following tables. March 31, 2024 (In millions) Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 4,340 $ 132 $ 93 $ 39 Morgan Stanley AA-/Aa3/A+ 4,353 159 166 — Barclay's Bank A+/A1/A+ 6,389 124 122 2 Canadian Imperial Bank of Commerce AA-/A2/A- 5,552 163 163 — Wells Fargo AA-/Aa2/A+ 1,313 69 70 — Goldman Sachs A+/A1/A+ 2,340 45 44 1 Credit Suisse A+/A3/A+ 16 1 1 — Truist A/A2/A 3,185 135 134 1 Citibank A+/Aa3/A+ 1,145 25 26 — JP Morgan AA/Aa2/A+ 3,888 152 149 3 Total $ 32,521 $ 1,005 $ 968 $ 46 December 31, 2023 (In millions) Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 4,408 $ 96 $ 59 $ 37 Morgan Stanley AA-/Aa3/A+ 3,466 102 116 — Barclay's Bank A+/A1/A+ 6,236 102 100 2 Canadian Imperial Bank of Commerce AA-/A2/A- 5,983 147 148 — Wells Fargo AA-/Aa2/A+ 1,443 58 60 — Goldman Sachs A+/A1/A+ 1,919 45 45 — Credit Suisse A+/A3/A+ 92 4 4 — Truist A+/A2/A 2,759 124 124 — Citibank A+/Aa3/A+ 1,073 27 28 — JP Morgan AA/Aa2/A+ 2,589 91 91 — Total $ 29,968 $ 796 $ 775 $ 39 (a) An * represents credit ratings that were not available. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Unfunded Commitments | March 31, 2024 Commitment Type (In millions) Unconsolidated VIEs: Limited partnerships $ 2,366 Whole loans 678 Fixed maturity securities, ABS 341 Direct Lending 530 Other fixed maturity securities, AFS 11 Commercial mortgage loans 82 Other assets 173 Other invested assets 44 Total $ 4,225 Concurrent with the Roar purchase agreement, we executed a separate loan agreement with the sellers of Roar for us to lend up to $40 million. The loan agreement matures 60 days following the third anniversary of the first advance date. There was no balance outstanding as of March 31, 2024 and the unfunded loan commitment is included in the unfunded commitments table above in the “Other assets” line item. Refer to Note N - Acquisitions for more information on the Roar acquisition. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Summarized financial information concerning our reportable segments is shown in the following tables. As of and for the three months ended March 31, 2024: Title F&G Corporate and Other Elimination Total (In millions) Title premiums $ 1,033 $ — $ — $ — $ 1,033 Other revenues 484 741 56 — 1,281 Revenues from external customers 1,517 741 56 — 2,314 Interest and investment income, including recognized gains and losses, net 146 828 38 (27) 985 Total revenues 1,663 1,569 94 (27) 3,299 Depreciation and amortization 36 123 8 — 167 Interest expense — 30 19 — 49 Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates 218 142 (2) (27) 331 Income tax expense (benefit) 45 26 (8) — 63 Earnings (loss) from continuing operations before equity in earnings of unconsolidated affiliates 173 116 6 (27) 268 Equity in earnings of unconsolidated affiliates 1 — — — 1 Net earnings (loss) from continuing operations $ 174 $ 116 $ 6 $ (27) $ 269 Assets $ 7,905 $ 74,417 $ 2,174 $ — $ 84,496 Goodwill 2,797 2,017 293 — 5,107 As of and for the three months ended March 31, 2023: Title F&G Corporate and Other Total (In millions) Title premiums $ 978 $ — $ — $ 978 Other revenues 471 365 44 880 Revenues from external customers 1,449 365 44 1,858 Interest and investment income, including recognized gains and losses, net 103 504 9 616 Total revenues 1,552 869 53 2,474 Depreciation and amortization 37 90 7 134 Interest expense — 22 20 42 Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates 157 (203) (28) (74) Income tax expense (benefit) 27 (8) (5) 14 Earnings (loss) from continuing operations before equity in earnings of unconsolidated affiliates 130 (195) (23) (88) Net earnings (loss) from continuing operations $ 130 $ (195) $ (23) $ (88) Assets $ 8,017 $ 59,395 $ 2,242 $ 69,654 Goodwill 2,766 1,749 276 4,791 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | The following supplemental cash flow information is provided with respect to certain cash payment and non-cash investing and financing activities: Three months ended March 31, 2024 2023 Cash paid for: (In millions) Interest $ 57 $ 34 Income taxes 3 6 Deferred sales inducements 54 29 Non-cash investing and financing activities: Change in proceeds of sales of investments available for sale receivable in period (37) 41 Change in purchases of investments available for sale payable in period 173 78 Lease liabilities recognized in exchange for lease right-of-use assets 16 9 Remeasurement of lease liabilities 13 19 Liabilities assumed in connection with acquisitions Fair value of assets acquired 474 276 Less: Total Purchase price 284 273 Liabilities and noncontrolling interests assumed $ 190 $ 3 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Our revenue consists of: Three months ended March 31, 2024 2023 Revenue Stream Income Statement Classification Segment Total Revenue Revenue from insurance contracts: (In millions) Direct title insurance premiums Direct title insurance premiums Title $ 440 $ 428 Agency title insurance premiums Agency title insurance premiums Title 593 550 Life insurance premiums, insurance and investment product fees, and other Escrow, title-related and other fees F&G 741 365 Home warranty Escrow, title-related and other fees Title 32 30 Total revenue from insurance contracts 1,806 1,373 Revenue from contracts with customers: Escrow fees Escrow, title-related and other fees Title 167 160 Other title-related fees and income Escrow, title-related and other fees Title 145 146 ServiceLink, excluding title premiums, escrow fees, and subservicing fees Escrow, title-related and other fees Title 74 75 Real estate technology Escrow, title-related and other fees Corporate and other 35 37 Total revenue from contracts with customers 421 418 Other revenue: Loan subservicing revenue Escrow, title-related and other fees Title 66 60 Other Escrow, title-related and other fees Corporate and other 21 7 Interest and investment income Interest and investment income Various 710 611 Recognized gains and losses, net Recognized gains and losses, net Various 275 5 Total revenues Total revenues $ 3,299 $ 2,474 |
Information about Trade Receivables and Deferred Revenue | The following table provides information about trade receivables and deferred revenue: March 31, 2024 December 31, 2023 (In millions) Trade receivables $ 310 $ 317 Deferred revenue (contract liabilities) 90 91 |
Value of Business Acquired, D_2
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Other Intangible Assets, Finite | The following table reconciles to Other intangible assets, net, on the unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023. March 31, 2024 December 31, 2023 (In millions) Customer relationships and contracts $ 340 $ 174 VOBA 1,407 1,446 DAC 2,412 2,215 DSI 392 346 Value of distribution asset 83 86 Computer software 270 266 Trademarks, tradenames, and other 123 94 Total Other intangible assets, net $ 5,027 $ 4,627 |
Schedule of Other Intangible Assets, Indefinite | The following table reconciles to Other intangible assets, net, on the unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023. March 31, 2024 December 31, 2023 (In millions) Customer relationships and contracts $ 340 $ 174 VOBA 1,407 1,446 DAC 2,412 2,215 DSI 392 346 Value of distribution asset 83 86 Computer software 270 266 Trademarks, tradenames, and other 123 94 Total Other intangible assets, net $ 5,027 $ 4,627 |
Rollforward of Value of Business Acquired | The following tables roll forward VOBA by product for the three months ended March 31, 2024 and March 31, 2023. Indexed Annuities Fixed Rate Annuities Immediate Annuities Universal Life Traditional Life Total (In millions) Balance at January 1, 2024 $ 1,025 $ 27 $ 191 $ 134 $ 69 $ 1,446 Amortization (33) (1) (2) (2) (1) (39) Balance at March 31, 2024 $ 992 $ 26 $ 189 $ 132 $ 68 $ 1,407 Indexed Annuities Fixed Rate Annuities Immediate Annuities Universal Life Traditional Life Total (In millions) Balance at January 1, 2023 $ 1,166 $ 32 $ 201 $ 143 $ 73 $ 1,615 Amortization (36) (1) (3) (2) (1) (43) Balance at March 31, 2023 $ 1,130 $ 31 $ 198 $ 141 $ 72 $ 1,572 |
Rollforward of Deferred Policy Acquisition Costs | The following tables roll forward DAC by product for the three months ended March 31, 2024 and March 31, 2023. Indexed Annuities Fixed Rate Annuities Universal Life Total (a) (In millions) Balance at January 1, 2024 $ 1,378 $ 288 $ 545 $ 2,211 Capitalization 147 44 66 257 Amortization (33) (19) (8) (60) Balance at March 31, 2024 $ 1,492 $ 313 $ 603 $ 2,408 Indexed Annuities Fixed Rate Annuities Universal Life Total (a) (In millions) Balance at January 1, 2023 $ 971 $ 83 $ 348 $ 1,402 Capitalization 113 52 56 221 Amortization (22) (5) (8) (35) Reinsurance related adjustments — 79 — 79 Balance at March 31, 2023 $ 1,062 $ 209 $ 396 $ 1,667 (a) Excludes insignificant amounts of DAC related to Funding Agreement Backed Note (“FABN”) |
Reconciliation of DAC to Condensed Consolidated Balance Sheets | The following table presents a reconciliation of DAC to the table above, which is reconciled to the unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (In millions) Indexed Annuities $ 1,492 $ 1,378 Fixed Rate Annuities 313 288 Universal Life 603 545 Funding Agreements 4 4 Total $ 2,412 $ 2,215 |
Rollforward of Deferred Sale Inducement Cost | The following table rolls forward DSI for our indexed annuity products for the three months ended March 31, 2024 and March 31, 2023: Three Months Ended March 31, 2024 2023 (In millions) Balance at January 1, $ 346 $ 200 Capitalization 54 29 Amortization (8) (4) Balance at March 31, $ 392 $ 225 DSI amortization expense of $8 million and $4 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and March 31, 2023, respectively. |
Estimated Amortization Expense for VOBA in Future Fiscal Periods | For the in-force liabilities as of March 31, 2024, the estimated amortization expense for VOBA in future fiscal periods is as follows: Estimated Amortization Expense Fiscal Year (In millions) 2024 $ 111 2025 138 2026 126 2027 115 2028 105 Thereafter 812 Total $ 1,407 |
F&G Reinsurance (Tables)
F&G Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Reinsurance Disclosures [Abstract] | |
Effect of Reinsurance on Premiums Earned, Benefits Incurred and Reserve Changes | The effects of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the three months ended March 31, 2024 and March 31, 2023 were as follows: Three months ended March 31, 2024 March 31, 2023 Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred (In millions) Direct $ 620 $ 1,213 $ 301 $ 872 Ceded (24) (52) (26) (60) Net $ 596 $ 1,161 $ 275 $ 812 |
Schedule of Reinsurance Recoverable | The following summarizes our reinsurance recoverable (in millions) as of March 31, 2024 and December 31, 2023: Parent Company/ Reinsurance Recoverable (a) Agreement Type Products Accounting March 31, 2024 December 31, 2023 Aspida Life Re Ltd $ 6,489 $ 6,128 Coinsurance Funds Withheld Certain MYGA (b) Deposit Somerset Reinsurance Ltd 1,250 716 Coinsurance Funds Withheld Certain MYGA (b) and DA Deposit Wilton Reassurance Company 1,085 1,092 Coinsurance Block of traditional, IUL and UL (c) Reinsurance Everlake Life Insurance Company 791 509 Coinsurance (d) Certain MYGA (b) (d) Deposit Other (e) 518 536 Reinsurance recoverable, gross of allowance for credit losses 10,133 8,981 Allowance for expected credit loss (21) (21) Reinsurance recoverable, net of allowance for credit losses $ 10,112 $ 8,960 (a) Reinsurance recoverables do not include unearned ceded premiums that would be recovered in the event of early termination of certain traditional life policies. (b) As of March 31, 2024 and December 31, 2023, the combined quota share flow reinsurance amongst all reinsurers was 90% . (c) Also includes certain FGL Insurance life insurance policies that are subject to redundant reserves, reported on a statutory basis, under Regulation XXX and Guideline AXXX. (d) Reinsurance recoverable is collateralized by assets placed in a statutory comfort trust by the reinsurer and maintained for our sole benefit. (e) Represents all other reinsurers, with no single reinsurer having a carrying value in excess of 5% of total reinsurance recoverable. |
Reinsurance Recoverable Expected Credit Loss | The expected credit loss reserves were as follows: Three months ended March 31, 2024 March 31, 2023 (In millions) Balance at beginning of period $ (21) $ (10) Changes in the expected credit loss reserve — 1 Balance at end of period $ (21) $ (9) |
Financial Strength Ratings Of Principal Reinsurers | The following table presents financial strength ratings as of March 31, 2024: Parent Company/Principal Reinsurers Financial Strength Rating AM Best S&P Fitch Moody's Aspida Re A- — — — Somerset A- BBB+ — — Wilton Re A+ — A — Everlake A+ — — — |
F&G Insurance Subsidiary Fina_2
F&G Insurance Subsidiary Financial Information and Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Statutory Accounting Practices | Our principal insurance subsidiaries' statutory financial statements are based on a December 31 year end. Statutory net income and statutory capital and surplus of our wholly owned insurance subsidiaries as of March 31, 2024 and December 31, 2023, were as follows (in millions): Subsidiary (state of domicile) (a) FGL Insurance FGL NY Insurance (NY) Raven Re Corbeau Re Statutory net income (loss): For the three months ended March 31, 2024 $ — $ 2 $ 15 $ (134) For the three months ended March 31, 2023 (3) 1 14 — Statutory capital and surplus: March 31, 2024 $ 1,940 $ 89 $ 155 $ 156 December 31, 2023 2,009 86 140 171 (a) FGL NY Insurance, Raven Re and Corbeau Re are subsidiaries of FGL Insurance, and the columns should not be added together. Corbeau Re was incorporated on September 1, 2023. Non-U.S. Companies Net income and capital and surplus of our wholly owned Bermuda and Cayman Islands regulated insurance subsidiaries under U.S. GAAP were as follows (in millions): Subsidiary (country of domicile) F&G Cayman Re (Cayman Islands) F&G Life Re (Bermuda) Statutory net income (loss): For the three months ended March 31, 2024 $ (31) $ 49 For the three months ended March 31, 2023 35 68 Statutory capital and surplus: March 31, 2024 $ 143 $ 61 December 31, 2023 114 11 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Initial Purchase Price | The initial purchase price is as follows (in millions): Cash paid for 70% majority interest of Roar shares $ 269 Less: Cash acquired net of noncontrolling interests 1 Net cash paid for 70% majority interest of Roar 268 Initial fair value of contingent consideration 48 Total net initial consideration $ 316 |
Schedule of Preliminary Fair Value Amounts Expected To Be Recognized for Assets Acquired And Liabilities Assumed | The following table summarizes the preliminary fair value amounts recognized for the assets acquired and liabilities assumed as of the acquisition date: Fair Value as of (In millions) Goodwill $ 268 Prepaid expenses and other assets 3 Other intangible assets 183 Total assets acquired 454 Accounts payable and accrued liabilities 2 Total liabilities assumed 2 Noncontrolling interests (fair value determined using income approach) 136 Total liabilities assumed and non-controlling interests 138 Net assets acquired $ 316 |
Preliminary Gross Carrying Value and Weighted Average Estimated Useful Lives of Other intangible Assets Acquired | The preliminary gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the Roar acquisition consist of the following: Gross Carrying Value Estimated Useful Life Other intangible assets: (In millions) (In years) Customer relationships $ 179 12 Definite lived trademarks, tradenames, and other 4 10 Total Other intangible assets $ 183 |
Market Risk Benefits (Tables)
Market Risk Benefits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Balances and Changes in Market Risk Benefit | The following table presents the balances of and changes in MRBs associated with indexed annuities and fixed rate annuities for the three months ended March 31, 2024 and the year ended December 31, 2023: March 31, 2024 December 31, 2023 Indexed Fixed rate annuities Indexed Fixed rate annuities (In millions) Balance, beginning of period, net liability $ 314 $ 1 $ 164 $ 1 Balance, beginning of period, before effect of changes in the instrument-specific credit risk $ 209 $ 1 $ 102 $ 1 Issuances and benefit payments 12 — (10) — Attributed fees collected and interest accrual 36 — 131 — Actual policyholder behavior different from expected 8 — 27 — Changes in assumptions and other (2) — 29 — Effects of market related movements (37) — (70) — Balance, end of period, before effect of changes in the instrument-specific credit risk $ 226 $ 1 $ 209 $ 1 Effect of changes in the instrument-specific credit risk 103 — 105 — Balance, end of period, net liability $ 329 $ 1 $ 314 $ 1 Weighted-average attained age of policyholders weighted by total AV (years) 68.20 72.55 68.28 72.59 Net amount at risk $ 1,091 $ 2 $ 1,059 $ 2 The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRBs amounts in the accompanying unaudited Condensed Consolidated Balance Sheets: March 31, 2024 December 31, 2023 Asset Liability Net Asset Liability Net (In millions) Fixed rate annuities $ — $ 1 $ 1 $ — $ 1 $ 1 Indexed annuities 95 424 329 88 402 314 Total $ 95 $ 425 $ 330 $ 88 $ 403 $ 315 |
Contractholder Funds (Tables)
Contractholder Funds (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Summary of Balances and Changes in Contractholder Funds | The following tables summarize balances of and changes in contractholder funds’ account balances: March 31, 2024 Indexed annuities Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year $ 27,164 $ 13,443 $ 2,391 $ 2,613 $ 2,539 Issuances 1,381 1,341 51 — 305 Premiums received 28 — 114 — — Policy charges (a) (46) — (74) — — Surrenders and withdrawals (690) (364) (22) — — Benefit payments (119) (76) (5) (16) (329) Interest credited 139 142 33 14 24 Other 5 — — — — Balance, end of year $ 27,862 $ 14,486 $ 2,488 $ 2,611 $ 2,539 Embedded derivative adjustment (c) 468 — 107 — — Gross Liability, end of period $ 28,330 $ 14,486 $ 2,595 $ 2,611 $ 2,539 Less: Reinsurance (13) (8,612) (894) — — Net Liability, after Reinsurance $ 28,317 $ 5,874 $ 1,701 $ 2,611 $ 2,539 Weighted-average crediting rate 2.04 % 4.15 % 5.54 % N/A N/A Net amount at risk (d) N/A N/A $ 63,968 N/A N/A Cash surrender value (e) $ 25,724 $ 13,502 $ 1,938 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts, which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (e) These amounts are gross of reinsurance. December 31, 2023 Indexed annuities Fixed rate annuities Universal Life FABN (b) FHLB (b) (Dollars in millions) Balance, beginning of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Issuances 4,722 5,061 199 — 1,256 Premiums received 103 1 382 — — Policy charges (a) (182) — (261) — — Surrenders and withdrawals (2,005) (1,142) (90) — — Benefit payments (526) (240) (27) (53) (763) Interest credited 270 405 76 54 64 Other 16 — — (1) — Balance, end of year 27,164 13,443 2,391 2,613 2,539 Embedded derivative adjustment (c) 243 — 84 — — Gross Liability, end of period 27,407 13,443 2,475 2,613 2,539 Less: Reinsurance (17) (7,520) (894) — — Net Liability, after Reinsurance $ 27,390 $ 5,923 $ 1,581 $ 2,613 $ 2,539 Weighted-average crediting rate 1.40 % 4.85 % 3.44 % N/A N/A Net amount at risk (d) N/A N/A $ 60,389 N/A N/A Cash surrender value (e) $ 25,099 $ 12,505 $ 1,872 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts, which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (e) These amounts are gross of reinsurance. |
Schedule Of Reconciliation Of Policyholder Account Balances To Statement Of Financial Position | The following table reconciles contractholder funds’ account balances to the contractholder funds liability in the accompanying unaudited Condensed Consolidated Balance Sheets: March 31, 2024 December 31, 2023 (In millions) Indexed annuities $ 28,330 $ 27,407 Fixed rate annuities 14,486 13,443 Immediate annuities 304 311 Universal life 2,595 2,475 Traditional life 5 5 Funding Agreement-FABN 2,611 2,613 FHLB 2,539 2,539 PRT 5 5 Total $ 50,875 $ 48,798 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums: March 31, 2024 Range of guaranteed minimum crediting rate At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total Indexed Annuities (In millions) 0.00%-1.50% $ 22,671 $ 1,391 $ 522 $ 1,931 $ 26,515 1.51%-2.50% 331 1 93 568 993 Greater than 2.50% 353 1 — — 354 Total $ 23,355 $ 1,393 $ 615 $ 2,499 $ 27,862 Fixed Rate Annuities 0.00%-1.50% $ 36 $ 24 $ 1,340 $ 11,259 $ 12,659 1.51%-2.50% 4 7 21 456 488 Greater than 2.50% 870 2 4 463 1,339 Total $ 910 $ 33 $ 1,365 $ 12,178 $ 14,486 Universal Life 0.00%-1.50% $ 2,085 $ 6 $ — $ 22 $ 2,113 1.51%-2.50% — — — — — Greater than 2.50% 369 5 1 — 375 Total $ 2,454 $ 11 $ 1 $ 22 $ 2,488 December 31, 2023 Range of guaranteed minimum crediting rate At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total Indexed Annuities (In millions) 0.00%-1.50% $ 22,392 $ 1,444 $ 526 $ 1,953 $ 26,315 1.51%-2.50% 196 1 24 250 471 Greater than 2.50% 377 1 — — 378 Total $ 22,965 $ 1,446 $ 550 $ 2,203 $ 27,164 Fixed Rate Annuities 0.00%-1.50% $ 23 $ 25 $ 1,532 $ 10,271 $ 11,851 1.51%-2.50% 5 8 23 453 489 Greater than 2.50% 893 2 4 204 1,103 Total $ 921 $ 35 $ 1,559 $ 10,928 $ 13,443 Universal Life 0.00%-1.50% $ 1,987 $ 5 $ — $ 21 $ 2,013 1.51%-2.50% — — — — — Greater than 2.50% 361 16 1 — 378 Total $ 2,348 $ 21 $ 1 $ 21 $ 2,391 |
Future Policy Benefits (Tables)
Future Policy Benefits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Summary Balances and Changes in the Present Value of Expected Net Premiums and Present Value | The following table summarizes balances and changes in the present value of expected net premiums and the present value of the expected FPB for nonparticipating traditional contracts: Traditional Life March 31, 2024 December 31, 2023 Expected net premiums (Dollars in millions) Balance, beginning of year $ 722 $ 797 Beginning balance at original discount rate 874 974 Effect of actual variances from expected experience (4) (1) Balance adjusted for variances from expectation 870 973 Interest accrual 4 19 Net premiums collected (28) (118) Ending Balance at original discount rate 846 874 Effect of changes in discount rate assumptions (157) (152) Balance, end of year $ 689 $ 722 Expected FPB Balance, beginning of year $ 2,071 $ 2,151 Beginning balance at original discount rate 2,492 2,665 Effect of actual variances from expected experience (9) (24) Balance adjusted for variances from expectation 2,483 2,641 Interest accrual 14 56 Benefits payments (51) (205) Ending Balance at original discount rate 2,446 2,492 Effect of changes in discount rate assumptions (439) (421) Balance, end of year $ 2,007 $ 2,071 Net liability for future policy benefits $ 1,318 $ 1,349 Less: Reinsurance recoverable 483 413 Net liability for future policy benefits, after reinsurance recoverable $ 835 $ 936 Weighted-average duration of liability for future policyholder benefits (years) 6.96 7.36 The following tables summarize balances and changes in the present value of the expected FPB for limited-payment contracts: March 31, 2024 Immediate annuities PRT (Dollars in millions) Balance, beginning of year $ 1,415 $ 4,189 Beginning balance at original discount rate 1,788 4,351 Effect of changes in cash flow assumptions — 11 Effect of actual variances from expected experience (4) (8) Balance adjusted for variances from expectation 1,784 4,354 Issuances 7 596 Interest accrual 14 49 Benefits payments (29) (107) Ending Balance at original discount rate 1,776 4,892 Effect of changes in discount rate assumptions (404) (237) Balance, end of year $ 1,372 $ 4,655 Net liability for future policy benefits $ 1,372 $ 4,655 Less: Reinsurance recoverable 113 — Net liability for future policy benefits, after reinsurance recoverable $ 1,259 $ 4,655 Weighted-average duration of liability for future policyholder benefits (years) 12.03 7.96 December 31, 2023 Immediate annuities PRT (Dollars in millions) Balance, beginning of year $ 1,429 $ 2,165 Beginning balance at original discount rate 1,858 2,475 Effect of changes in cash flow assumptions — (9) Effect of actual variances from expected experience (15) (7) Balance adjusted for variances from expectation $ 1,843 $ 2,459 Issuances 22 2,041 Interest accrual 51 109 Benefits payments (128) (258) Ending Balance at original discount rate $ 1,788 $ 4,351 Effect of changes in discount rate assumptions (373) (162) Balance, end of year $ 1,415 $ 4,189 Net liability for future policy benefits $ 1,415 $ 4,189 Less: Reinsurance recoverable 116 — Net liability for future policy benefits, after reinsurance recoverable $ 1,299 $ 4,189 Weighted-average duration of liability for future policyholder benefits (years) 12.47 8.23 |
Summary of Changes in Liability for Deferred Profit Liability | The following tables summarize balances and changes in the liability for DPL for limited-payment contracts: March 31, 2024 December 31, 2023 Immediate annuities PRT Immediate annuities PRT (In millions) Balance, beginning of year $ 87 $ 10 $ 69 $ 4 Effect of modeling changes — — 4 — Effect of changes in cash flow assumptions — (4) — 1 Effect of actual variances from expected experience 2 2 16 5 Balance adjusted for variances from expectation 89 8 89 10 Issuances 1 — 3 — Interest accrual — — 2 1 Amortization (2) — (7) (1) Balance, end of year $ 88 $ 8 $ 87 $ 10 |
Schedule Of Reconciliation Of Future Policy Benefits To Statement Of Financial Position | The following table reconciles the net FPB to the FPB in the unaudited Condensed Consolidated Balance Sheets. The DPL for Immediate Annuities and PRT is presented together with the FPB in the unaudited Condensed Consolidated Balance Sheets and has been included as a reconciling item in the table below: March 31, 2024 December 31, 2023 (In millions) Traditional Life $ 1,318 $ 1,349 Immediate annuities 1,372 1,415 PRT 4,655 4,189 Immediate annuities DPL 88 87 PRT DPL 8 10 Total $ 7,441 $ 7,050 |
Schedule Of Liability For Future Policy Benefit Expected Future Policy Benefit Undiscounted Before Reinsurance | The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts: Undiscounted Discounted March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Traditional Life (In millions) Expected future benefit payments $ 2,874 $ 3,073 $ 2,013 $ 2,155 Expected future gross premiums 1,042 1,142 751 839 Immediate annuities Expected future benefit payments $ 3,271 $ 3,402 $ 1,371 $ 1,452 Expected future gross premiums — — — — PRT Expected future benefit payments $ 8,344 $ 3,916 $ 4,899 $ 2,708 Expected future gross premiums — — — — |
Revenue from External Customers by Products and Services | The following table summarizes the amount of revenue and interest related to nonparticipating traditional and limited-payment contracts recognized in the unaudited Condensed Consolidated Statements of Operations: Gross Premiums (a) Interest Expense (b) March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 (In millions) Traditional Life $ 28 $ 32 $ 10 $ 9 Immediate annuities 8 6 14 16 PRT 584 263 49 23 Total $ 620 $ 301 $ 73 $ 48 (a) Included in Life insurance premiums and other fees on the unaudited Condensed Consolidated Statements of Operations. (b) Included in Benefits and other changes in policy reserves (remeasurement gains (losses) (a)) on the unaudited Condensed Consolidated Statements of Operations. |
Schedule Of Liability For Future Policy Benefit, Weighted Average Discount Rates | The following table presents the weighted-average interest rate: March 31, 2024 December 31, 2023 Traditional Life Interest accretion rate 1.74 % 2.33 % Current discount rate 4.64 % 5.03 % Immediate annuities Interest accretion rate 3.16 % 3.14 % Current discount rate 5.20 % 4.98 % PRT Interest accretion rate 4.68 % 4.61 % Current discount rate 5.30 % 5.03 % |
Schedule Of Liability for Future Policy Benefit, Mortality And Lapse, Actual And Expected Experience | The following tables summarize the actual experience and expected experience for mortality and lapses of the FPB: March 31, 2024 Traditional Life Immediate annuities PRT Mortality Actual experience 1.2 % 3.2 % 4.2 % Expected experience 1.4 % 2.3 % 2.8 % Lapses Actual experience — % — % — % Expected experience 0.4 % — % — % December 31, 2023 Traditional Life Immediate annuities PRT Mortality Actual experience 1.7 % 3.2 % 3.2 % Expected experience 1.4 % 1.8 % 2.3 % Lapses Actual experience — % — % — % Expected experience 0.3 % — % — % |
Basis of Financial Statements -
Basis of Financial Statements - Recent Developments (Details) $ / shares in Units, $ in Millions | Jan. 16, 2024 USD ($) | Jan. 12, 2024 USD ($) $ / shares shares | Jan. 02, 2024 USD ($) | Apr. 23, 2024 | Mar. 31, 2024 $ / shares | Feb. 16, 2024 USD ($) | Feb. 15, 2024 USD ($) | Dec. 31, 2023 $ / shares |
Business Acquisition [Line Items] | ||||||||
Preferred stock, par or stated value per share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
F&G | 6.875% Series A Mandatory Convertible Preferred Stock | ||||||||
Business Acquisition [Line Items] | ||||||||
Investment in preferred stock | $ 250 | $ 250 | ||||||
Preferred stock investment, shares issued in transaction (in shares) | shares | 5,000,000 | |||||||
Preferred stock, dividend rate, percentage | 6.875% | |||||||
Preferred stock, par or stated value per share (in dollars per share) | $ / shares | $ 0.001 | |||||||
Preferred stock, liquidation preference (in usd per share)) | $ / shares | $ 50 | |||||||
F&G | 6.875% Series A Mandatory Convertible Preferred Stock | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Preferred stock, conversion ratio | 1.1111 | |||||||
F&G | 6.875% Series A Mandatory Convertible Preferred Stock | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Preferred stock, conversion ratio | 0.9456 | |||||||
Roar | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership interests acquired | 70% | |||||||
Cash consideration | $ 269 | |||||||
Contingent consideration arrangements, payments (up to) | $ 90 | |||||||
Contingent consideration liability payment period | 3 years | |||||||
Roar | F&G | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership interests acquired | 70% | |||||||
Cash consideration | $ 269 | |||||||
Contingent consideration obligation | 48 | |||||||
Contingent consideration arrangements, payments (up to) | $ 90 | |||||||
Contingent consideration liability payment period | 3 years | |||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||||||
Business Acquisition [Line Items] | ||||||||
Line of credit facility | $ 800 | |||||||
F&G Credit Agreement | Line of Credit | Revolving Credit Facility | ||||||||
Business Acquisition [Line Items] | ||||||||
Line of credit facility | $ 750 | $ 665 | ||||||
Subsequent Event | 4.50 % Notes due 2028 | Senior Notes | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 4.50% | |||||||
Subsequent Event | 3.40% Notes due 2030 | Senior Notes | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 3.40% | |||||||
Subsequent Event | 2.45% Senior Notes due 2031 | Senior Notes | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 2.45% |
Basis of Financial Statements_2
Basis of Financial Statements - Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Income tax expense | $ 63 | $ 14 |
Income tax expense as percentage of earnings before income taxes, percent | 19% | (19.00%) |
Basis of Financial Statements_3
Basis of Financial Statements - Earnings Per Share (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2023 shares | |
Accounting Policies [Abstract] | |
Antidilutive securities excluded from computation of EPS, less than (in shares) | 1 |
Basis of Financial Statements_4
Basis of Financial Statements - Owned Distribution Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Distribution Investments And Affiliates | Commission Fees Paid | ||
Business Acquisition [Line Items] | ||
Payments for commissions | $ 50 | $ 37 |
Summary of Reserve for Title _3
Summary of Reserve for Title Claim Losses - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Loss Contingencies [Line Items] | ||
Change in insurance recoverable | $ 22 | $ 79 |
Title | ||
Loss Contingencies [Line Items] | ||
Beginning balance | 1,770 | 1,810 |
Change in insurance recoverable | 0 | 0 |
Claim loss provision related to: | ||
Current year | 46 | 43 |
Total title claim loss provision | 46 | 43 |
Claims paid, net of recoupments related to: | ||
Current year | (2) | (1) |
Prior years | (68) | (61) |
Total title claims paid, net of recoupments | (70) | (62) |
Ending balance of claim loss reserve for title insurance | $ 1,746 | $ 1,791 |
Provision for title insurance claim losses as a percentage of title insurance premiums | 4.50% | 4.50% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Amounts of Assets and Liabilities at Estimated Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Fixed maturity securities available for sale | $ 44,566 | $ 42,373 |
Derivative asset | 1,024 | 797 |
Market risk benefits asset | 95 | 88 |
Total financial assets at fair value | 1,338 | 1,312 |
Derivatives: | ||
Market risk benefits liability | 425 | 403 |
Level 1 | ||
Assets | ||
Cash and cash equivalents | 3,517 | 2,767 |
Short term investments | 637 | 2,111 |
Derivative asset | 0 | 0 |
Investment in unconsolidated affiliates | 0 | 0 |
Market risk benefits asset | 0 | 0 |
Total financial assets at fair value | 5,872 | 6,566 |
Derivatives: | ||
Contingent consideration obligation | 0 | |
Market risk benefits liability | 0 | 0 |
Total financial liabilities at fair value | 3 | 1 |
Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Short term investments | 0 | 8 |
Derivative asset | 1,015 | 740 |
Investment in unconsolidated affiliates | 0 | 0 |
Market risk benefits asset | 0 | 0 |
Total financial assets at fair value | 35,292 | 33,703 |
Derivatives: | ||
Contingent consideration obligation | 0 | |
Market risk benefits liability | 0 | 0 |
Total financial liabilities at fair value | 0 | 0 |
Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Short term investments | 9 | 0 |
Derivative asset | 9 | 57 |
Investment in unconsolidated affiliates | 343 | 285 |
Market risk benefits asset | 95 | 88 |
Total financial assets at fair value | 10,476 | 9,677 |
Derivatives: | ||
Contingent consideration obligation | 57 | |
Market risk benefits liability | 425 | 403 |
Total financial liabilities at fair value | 5,180 | 4,661 |
NAV | ||
Assets | ||
Total financial assets at fair value | 59 | 59 |
Fair Value | ||
Assets | ||
Cash and cash equivalents | 3,517 | 2,767 |
Short term investments | 646 | 2,119 |
Derivative asset | 1,024 | 797 |
Investment in unconsolidated affiliates | 343 | 285 |
Market risk benefits asset | 95 | 88 |
Total financial assets at fair value | 51,699 | 50,005 |
Derivatives: | ||
Contingent consideration obligation | 57 | |
Market risk benefits liability | 425 | 403 |
Total financial liabilities at fair value | 5,183 | 4,662 |
Reinsurance related embedded derivative, included in other assets | Level 1 | ||
Assets | ||
Derivative asset | 0 | 0 |
Reinsurance related embedded derivative, included in other assets | Level 2 | ||
Assets | ||
Derivative asset | 134 | 152 |
Reinsurance related embedded derivative, included in other assets | Level 3 | ||
Assets | ||
Derivative asset | 0 | 0 |
Reinsurance related embedded derivative, included in other assets | Fair Value | ||
Assets | ||
Derivative asset | 134 | 152 |
Indexed annuities/IUL embedded derivatives, included in contractholder funds | Level 1 | ||
Derivatives: | ||
Derivative liability | 0 | 0 |
Indexed annuities/IUL embedded derivatives, included in contractholder funds | Level 2 | ||
Derivatives: | ||
Derivative liability | 0 | 0 |
Indexed annuities/IUL embedded derivatives, included in contractholder funds | Level 3 | ||
Derivatives: | ||
Derivative liability | 4,679 | 4,258 |
Indexed annuities/IUL embedded derivatives, included in contractholder funds | Fair Value | ||
Derivatives: | ||
Derivative liability | 4,679 | 4,258 |
Interest Rate Swaps | Level 1 | ||
Derivatives: | ||
Derivative liability | 0 | |
Interest Rate Swaps | Level 2 | ||
Derivatives: | ||
Derivative liability | 0 | |
Interest Rate Swaps | Level 3 | ||
Derivatives: | ||
Derivative liability | 19 | |
Interest Rate Swaps | Fair Value | ||
Derivatives: | ||
Derivative liability | 19 | |
Call options | Level 1 | ||
Derivatives: | ||
Derivative liability | 3 | |
Call options | Level 2 | ||
Derivatives: | ||
Derivative liability | 0 | |
Call options | Level 3 | ||
Derivatives: | ||
Derivative liability | 0 | |
Call options | Fair Value | ||
Derivatives: | ||
Derivative liability | 3 | |
Futures contracts | Level 1 | ||
Derivatives: | ||
Derivative liability | 1 | |
Futures contracts | Level 2 | ||
Derivatives: | ||
Derivative liability | 0 | |
Futures contracts | Level 3 | ||
Derivatives: | ||
Derivative liability | 0 | |
Futures contracts | Fair Value | ||
Derivatives: | ||
Derivative liability | 1 | |
Asset-backed securities | ||
Assets | ||
Fixed maturity securities available for sale | 15,115 | 14,342 |
Asset-backed securities | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
Asset-backed securities | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 7,379 | 7,220 |
Asset-backed securities | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 7,736 | 7,122 |
Asset-backed securities | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 15,115 | 14,342 |
Commercial mortgage-backed securities | ||
Assets | ||
Fixed maturity securities available for sale | 4,818 | 4,475 |
Commercial mortgage-backed securities | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
Commercial mortgage-backed securities | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 4,806 | 4,457 |
Commercial mortgage-backed securities | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 12 | 18 |
Commercial mortgage-backed securities | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 4,818 | 4,475 |
Corporates | ||
Assets | ||
Fixed maturity securities available for sale | 18,971 | 17,896 |
Corporates | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 25 | 25 |
Corporates | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 16,762 | 15,892 |
Corporates | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 2,184 | 1,979 |
Corporates | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 18,971 | 17,896 |
Hybrids | ||
Assets | ||
Fixed maturity securities available for sale | 633 | 618 |
Hybrids | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 99 | 95 |
Hybrids | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 534 | 523 |
Hybrids | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
Hybrids | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 633 | 618 |
Municipals | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
Municipals | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 1,529 | 1,562 |
Municipals | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 18 | 49 |
Municipals | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 1,547 | 1,611 |
Residential mortgage-backed securities | ||
Assets | ||
Fixed maturity securities available for sale | 2,464 | 2,429 |
Residential mortgage-backed securities | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
Residential mortgage-backed securities | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 2,460 | 2,426 |
Residential mortgage-backed securities | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 4 | 3 |
Residential mortgage-backed securities | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 2,464 | 2,429 |
U.S. Government | ||
Assets | ||
Fixed maturity securities available for sale | 698 | 678 |
U.S. Government | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 682 | 662 |
U.S. Government | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 16 | 16 |
U.S. Government | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
U.S. Government | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 698 | 678 |
Foreign Governments | ||
Assets | ||
Fixed maturity securities available for sale | 320 | 324 |
Foreign Governments | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
Foreign Governments | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 315 | 308 |
Foreign Governments | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 5 | 16 |
Foreign Governments | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 320 | 324 |
Preferred securities | ||
Assets | ||
Equity and preferred securities | 542 | 621 |
Preferred securities | Level 1 | ||
Assets | ||
Equity and preferred securities | 192 | 214 |
Preferred securities | Level 2 | ||
Assets | ||
Equity and preferred securities | 342 | 399 |
Preferred securities | Level 3 | ||
Assets | ||
Equity and preferred securities | 8 | 8 |
Preferred securities | Fair Value | ||
Assets | ||
Equity and preferred securities | 542 | 621 |
Equity securities | Level 1 | ||
Assets | ||
Equity and preferred securities | 720 | 692 |
Equity securities | Level 2 | ||
Assets | ||
Equity and preferred securities | 0 | 0 |
Equity securities | Level 3 | ||
Assets | ||
Equity and preferred securities | 14 | 15 |
Equity securities | NAV | ||
Assets | ||
Equity and preferred securities | 59 | 59 |
Equity securities | Fair Value | ||
Assets | ||
Equity and preferred securities | 793 | 766 |
Other long-term investments | Level 1 | ||
Assets | ||
Other long-term investments | 0 | 0 |
Other long-term investments | Level 2 | ||
Assets | ||
Other long-term investments | 0 | 0 |
Other long-term investments | Level 3 | ||
Assets | ||
Other long-term investments | 39 | 37 |
Other long-term investments | Fair Value | ||
Assets | ||
Other long-term investments | $ 39 | $ 37 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) $ in Millions | Mar. 31, 2024 USD ($) $ / Contract | Dec. 31, 2023 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in unconsolidated affiliates | $ 3,632 | $ 3,334 |
Title | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in unconsolidated affiliates | $ 265 | $ 263 |
Credit linked note | Valuation, Income Approach | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative, strike price | $ / Contract | 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Quantitative Information Regarding Significant Unobservable Inputs Used for Recurring Level 3 Fair Value Measurements of Financial Instruments (Details) $ in Millions | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 1,338 | $ 1,312 |
Liabilities, fair value | 5,161 | 4,661 |
Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 9,138 | 8,365 |
Liabilities, fair value | 19 | |
Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | 4,679 | $ 4,258 |
Contingent Consideration | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 57 | |
Minimum | Discounted Cash Flow | EBITA Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | 0.3500 | |
Minimum | Discounted Cash Flow | Counterparty Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | 0.0700 | |
Minimum | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0025 | 0.0025 |
Minimum | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0200 | 0.0200 |
Minimum | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0035 | 0.0038 |
Minimum | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Market Value of Option | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0 | 0 |
Minimum | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Swap Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0384 | |
Minimum | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Mortality Multiplier | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1 | 1 |
Minimum | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Option Cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0007 | 0.0007 |
Minimum | Contingent Consideration | Discounted Cash Flow | Risk Adjusted Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | 0.1350 | |
Maximum | Discounted Cash Flow | EBITA Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | 0.3500 | |
Maximum | Discounted Cash Flow | Counterparty Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | 0.0700 | |
Maximum | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.7000 | 0.7000 |
Maximum | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.3571 | 0.3448 |
Maximum | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0102 | 0.0110 |
Maximum | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Market Value of Option | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.2411 | 0.1893 |
Maximum | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Swap Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0526 | |
Maximum | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Mortality Multiplier | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1 | 1 |
Maximum | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Option Cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0570 | 0.0548 |
Maximum | Contingent Consideration | Discounted Cash Flow | Risk Adjusted Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | 0.1350 | |
Weighted Average | Discounted Cash Flow | EBITA Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | 0.3500 | |
Weighted Average | Discounted Cash Flow | Counterparty Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | 0.0700 | |
Weighted Average | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0680 | 0.0683 |
Weighted Average | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0274 | 0.0274 |
Weighted Average | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0087 | 0.0096 |
Weighted Average | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Market Value of Option | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0352 | 0.0263 |
Weighted Average | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Swap Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0455 | |
Weighted Average | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Mortality Multiplier | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1 | 1 |
Weighted Average | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | Discounted Cash Flow | Option Cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0247 | 0.0238 |
Weighted Average | Contingent Consideration | Discounted Cash Flow | Risk Adjusted Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | 0.1350 | |
Asset-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 89 | $ 57 |
Asset-backed securities | Minimum | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0527 | 0.0509 |
Asset-backed securities | Maximum | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0654 | 0.0695 |
Asset-backed securities | Weighted Average | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0603 | 0.0600 |
Commercial mortgage-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 1 | |
Commercial mortgage-backed securities | Minimum | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0722 | |
Commercial mortgage-backed securities | Maximum | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0690 | |
Commercial mortgage-backed securities | Weighted Average | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0784 | |
Corporates | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 760 | $ 787 |
Corporates | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 4 | $ 8 |
Corporates | Minimum | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0416 | 0 |
Corporates | Minimum | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.4375 | 0.4400 |
Corporates | Maximum | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.1287 | 0.1287 |
Corporates | Maximum | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1 | 1 |
Corporates | Weighted Average | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0706 | 0.0691 |
Corporates | Weighted Average | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.5707 | 0.7520 |
Municipals | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 32 | |
Municipals | Minimum | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0625 | |
Municipals | Maximum | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0625 | |
Municipals | Weighted Average | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0625 | |
Residential mortgage-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 3 | $ 3 |
Residential mortgage-backed securities | Minimum | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0564 | 0.0546 |
Residential mortgage-backed securities | Maximum | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0564 | 0.0546 |
Residential mortgage-backed securities | Weighted Average | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0564 | 0.0546 |
Foreign Governments | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 5 | $ 16 |
Foreign Governments | Minimum | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0677 | 0.0694 |
Foreign Governments | Maximum | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0677 | 0.0768 |
Foreign Governments | Weighted Average | Third-Party Valuation | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0677 | 0.0745 |
Investment in unconsolidated affiliates | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 285 | |
Investment in unconsolidated affiliates | Minimum | Broker quoted/Market Comparable | EBITDA Multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in unconsolidated affiliate | 4.4 | |
Investment in unconsolidated affiliates | Maximum | Broker quoted/Market Comparable | EBITDA Multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in unconsolidated affiliate | 31.8 | |
Investment in unconsolidated affiliates | Weighted Average | Broker quoted/Market Comparable | EBITDA Multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in unconsolidated affiliate | 23.2 | |
Investment in unconsolidated affiliates | Affiliated Entity | Broker quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 343 | |
Preferred securities | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 1 | |
Preferred securities | Affiliated Entity | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 1 | |
Preferred securities | Affiliated Entity | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 1 | |
Preferred securities | Affiliated Entity | Minimum | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 1 | |
Preferred securities | Affiliated Entity | Maximum | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 1 | |
Preferred securities | Affiliated Entity | Weighted Average | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 1 | |
Equity securities | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 7 | |
Equity securities | Minimum | Broker quoted/Market Comparable | EBITDA Multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 6 | |
Equity securities | Maximum | Broker quoted/Market Comparable | EBITDA Multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 6 | |
Equity securities | Weighted Average | Broker quoted/Market Comparable | EBITDA Multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 6 | |
Equity securities | Affiliated Entity | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 7 | |
Equity securities | Affiliated Entity | Minimum | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 0.1090 | 0.1150 |
Equity securities | Affiliated Entity | Maximum | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 0.1090 | 0.1150 |
Equity securities | Affiliated Entity | Weighted Average | Discounted Cash Flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred/Equity securities | 0.1090 | 0.1150 |
Available-for-sale embedded derivative | Black Scholes model | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 30 | $ 28 |
Available-for-sale embedded derivative | Black Scholes model | Market Value of AnchorPath Fund | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative asset | 1 | 1 |
Market risk benefits asset | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 95 | $ 88 |
Market risk benefits asset | Minimum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits asset | Minimum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0025 | 0.0025 |
Market risk benefits asset | Minimum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0200 | 0 |
Market risk benefits asset | Minimum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0035 | 0.0038 |
Market risk benefits asset | Minimum | Discounted Cash Flow | GMWB Utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5000 | 0.5000 |
Market risk benefits asset | Maximum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits asset | Maximum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.1000 | 0.1000 |
Market risk benefits asset | Maximum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.2041 | 0.2326 |
Market risk benefits asset | Maximum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0102 | 0.0110 |
Market risk benefits asset | Maximum | Discounted Cash Flow | GMWB Utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.6000 | 0.6000 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0513 | 0.0522 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0250 | 0.0250 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0087 | 0.0096 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | GMWB Utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5081 | 0.5081 |
Market risk benefits liability | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 425 | $ 403 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0025 | 0.0025 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0200 | 0 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0035 | 0.0038 |
Market risk benefits liability | Minimum | Discounted Cash Flow | GMWB Utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5000 | 0.5000 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.1000 | 0.1000 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.2041 | 0.2326 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0102 | 0.0110 |
Market risk benefits liability | Maximum | Discounted Cash Flow | GMWB Utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.6000 | 0.6000 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0513 | 0.0522 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0250 | 0.0250 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0087 | 0.0096 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | GMWB Utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5081 | 0.5081 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Changes to Fair Value of Financial Instruments Level 3 (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Liabilities | ||
Liabilities, Total Gains (Losses) Included in Earnings | $ 228 | $ 385 |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 |
Liabilities, Purchases | 336 | 96 |
Liabilities, Sales | 0 | 0 |
Liabilities, Settlements | (67) | (27) |
Liabilities, Net transfer In (Out) of Level 3 | $ 0 | $ 0 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Recognized gains and losses, net | Recognized gains and losses, net |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Unrealized (loss) gain on investments and other financial instruments, net of adjustments to intangible assets and unearned revenue (excluding investments in unconsolidated affiliates) | Unrealized (loss) gain on investments and other financial instruments, net of adjustments to intangible assets and unearned revenue (excluding investments in unconsolidated affiliates) |
Level 3 | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | $ 9,677 | $ 8,286 |
Balance at End of Period | 10,476 | 8,229 |
Liabilities | ||
Balance at Beginning of Period | 4,661 | 3,397 |
Balance at End of Period | 5,180 | 3,893 |
Indexed annuities/IUL embedded derivatives, included in contractholder funds | ||
Liabilities | ||
Balance at Beginning of Period | 4,258 | 3,115 |
Liabilities, Total Gains (Losses) Included in Earnings | 200 | 385 |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 |
Liabilities, Purchases | 288 | 96 |
Liabilities, Sales | 0 | 0 |
Liabilities, Settlements | (67) | (27) |
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 4,679 | 3,569 |
Change in Unrealized Gains (Losses) Included in OCI | 0 | 0 |
Interest Rate Swaps | ||
Liabilities | ||
Balance at Beginning of Period | 0 | |
Liabilities, Total Gains (Losses) Included in Earnings | 19 | |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | |
Liabilities, Purchases | 0 | |
Liabilities, Sales | 0 | |
Liabilities, Settlements | 0 | |
Liabilities, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 19 | |
Change in Unrealized Gains (Losses) Included in OCI | 0 | |
Contingent consideration | ||
Liabilities | ||
Balance at Beginning of Period | 0 | |
Liabilities, Total Gains (Losses) Included in Earnings | 9 | |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | |
Liabilities, Purchases | 48 | |
Liabilities, Sales | 0 | |
Liabilities, Settlements | 0 | |
Liabilities, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 57 | |
Change in Unrealized Gains (Losses) Included in OCI | 0 | |
Asset-backed securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 7,122 | 6,263 |
Assets, Total Gains (Losses) Included in Earnings | (12) | (8) |
Assets, Total Gains (Losses) Included in AOCI | 104 | 18 |
Assets, Purchases | 762 | 416 |
Assets, Sales | (19) | (83) |
Assets, Settlements | (202) | (235) |
Assets, Net transfer In (Out) of Level 3 | (19) | (71) |
Balance at End of Period | 7,736 | 6,300 |
Change in Unrealized Included in OCI | 104 | 18 |
Commercial mortgage-backed securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 18 | 37 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 1 |
Assets, Purchases | 1 | 12 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | (7) | (21) |
Balance at End of Period | 12 | 29 |
Change in Unrealized Included in OCI | 0 | 1 |
Corporates | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 1,979 | 1,440 |
Assets, Total Gains (Losses) Included in Earnings | 0 | (1) |
Assets, Total Gains (Losses) Included in AOCI | 13 | (23) |
Assets, Purchases | 217 | 133 |
Assets, Sales | (3) | 0 |
Assets, Settlements | (22) | (5) |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 2,184 | 1,544 |
Change in Unrealized Included in OCI | 13 | (23) |
Municipals | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 49 | 29 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 1 | 3 |
Assets, Purchases | 0 | 0 |
Assets, Sales | (32) | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 18 | 32 |
Change in Unrealized Included in OCI | 1 | 3 |
Residential mortgage-backed securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 3 | 302 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 1 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 8 |
Assets, Purchases | 1 | 8 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | (8) |
Assets, Net transfer In (Out) of Level 3 | 0 | (299) |
Balance at End of Period | 4 | 12 |
Change in Unrealized Included in OCI | 0 | 8 |
Foreign Governments | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 16 | 16 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | (11) | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 5 | 16 |
Change in Unrealized Included in OCI | 0 | 0 |
Preferred securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 8 | 1 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 8 | 1 |
Change in Unrealized Included in OCI | 0 | 0 |
Equity securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 15 | 10 |
Assets, Total Gains (Losses) Included in Earnings | (1) | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 |
Assets, Purchases | 0 | 1 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 14 | 11 |
Change in Unrealized Included in OCI | 0 | 0 |
Interest Rate Swaps | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 57 | |
Assets, Total Gains (Losses) Included in Earnings | (48) | |
Assets, Total Gains (Losses) Included in AOCI | 0 | |
Assets, Purchases | 0 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 9 | |
Change in Unrealized Included in OCI | 0 | |
Investment in unconsolidated affiliates | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 285 | 23 |
Assets, Total Gains (Losses) Included in Earnings | 58 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 |
Assets, Purchases | 0 | 84 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 343 | 107 |
Change in Unrealized Included in OCI | 0 | 0 |
Short term investments | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 0 | 0 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 |
Assets, Purchases | 9 | 23 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 9 | 23 |
Change in Unrealized Included in OCI | 0 | 0 |
Available-for-sale embedded derivative | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 27 | 23 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 3 | 2 |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 30 | 25 |
Change in Unrealized Included in OCI | 3 | 2 |
Credit linked note | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 10 | 15 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | (1) | (2) |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 9 | 13 |
Change in Unrealized Included in OCI | 0 | 0 |
Secured borrowing receivable | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 10 | |
Assets, Total Gains (Losses) Included in Earnings | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | |
Assets, Purchases | 0 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 10 | |
Change in Unrealized Included in OCI | 0 | |
Subtotal Level 3 assets at fair value | Level 3 | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 9,589 | 8,169 |
Assets, Total Gains (Losses) Included in Earnings | (3) | (8) |
Assets, Total Gains (Losses) Included in AOCI | 121 | 9 |
Assets, Purchases | 990 | 677 |
Assets, Sales | (54) | (83) |
Assets, Settlements | (236) | (250) |
Assets, Net transfer In (Out) of Level 3 | (26) | (391) |
Balance at End of Period | 10,381 | 8,123 |
Change in Unrealized Included in OCI | 121 | 9 |
Market risk benefits asset | ||
Fixed maturity securities available-for-sale: | ||
Balance at End of Period | 95 | |
Market risk benefits asset | Level 3 | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 88 | 117 |
Balance at End of Period | 106 | |
Subtotal Level 3 liabilities at fair value | ||
Liabilities | ||
Change in Unrealized Gains (Losses) Included in OCI | 0 | 0 |
Subtotal Level 3 liabilities at fair value | Level 3 | ||
Liabilities | ||
Balance at Beginning of Period | 4,258 | 3,115 |
Balance at End of Period | 4,755 | 3,569 |
Market risk benefits liability | Level 3 | ||
Liabilities | ||
Balance at Beginning of Period | 403 | 282 |
Balance at End of Period | $ 425 | $ 324 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of Financial Instruments Carried at Other Than Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Investments in unconsolidated affiliates | $ 3,632 | $ 3,334 |
Trade and notes receivables, net of allowance | 409 | 442 |
Total | ||
Total Estimated Fair Value | ||
Assets | ||
FHLB common stock | 138 | 138 |
Commercial mortgage loans | 2,229 | 2,253 |
Residential mortgage loans | 2,590 | 2,545 |
Investments in unconsolidated affiliates | 3,024 | 2,786 |
Policy loans | 78 | 71 |
Other invested assets | 65 | 397 |
Company-owned life insurance | 415 | 59 |
Trade and notes receivables, net of allowance | 409 | 442 |
Total | 8,948 | 8,691 |
Liabilities | ||
Investment contracts, included in contractholder funds | 41,488 | 40,229 |
Debt | 3,561 | 3,568 |
Total | 45,049 | 43,797 |
Carrying Value | ||
Assets | ||
FHLB common stock | 138 | 138 |
Commercial mortgage loans | 2,550 | 2,538 |
Residential mortgage loans | 2,890 | 2,798 |
Investments in unconsolidated affiliates | 3,024 | 2,786 |
Policy loans | 78 | 71 |
Other invested assets | 65 | 397 |
Company-owned life insurance | 415 | 59 |
Trade and notes receivables, net of allowance | 409 | 442 |
Total | 9,569 | 9,229 |
Liabilities | ||
Investment contracts, included in contractholder funds | 46,194 | 44,540 |
Debt | 3,884 | 3,887 |
Total | 50,078 | 48,427 |
Level 1 | ||
Assets | ||
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Residential mortgage loans | 0 | 0 |
Investments in unconsolidated affiliates | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets | 23 | 0 |
Company-owned life insurance | 0 | 17 |
Trade and notes receivables, net of allowance | 0 | 0 |
Total | 23 | 17 |
Liabilities | ||
Investment contracts, included in contractholder funds | 0 | 0 |
Debt | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Assets | ||
FHLB common stock | 138 | 138 |
Commercial mortgage loans | 0 | 0 |
Residential mortgage loans | 0 | 0 |
Investments in unconsolidated affiliates | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets | 0 | 0 |
Company-owned life insurance | 0 | 0 |
Trade and notes receivables, net of allowance | 0 | 0 |
Total | 138 | 138 |
Liabilities | ||
Investment contracts, included in contractholder funds | 0 | 0 |
Debt | 3,561 | 3,568 |
Total | 3,561 | |
Level 3 | ||
Assets | ||
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 2,229 | 2,253 |
Residential mortgage loans | 2,590 | 2,545 |
Investments in unconsolidated affiliates | 6 | 7 |
Policy loans | 78 | 71 |
Other invested assets | 0 | 397 |
Company-owned life insurance | 415 | 0 |
Trade and notes receivables, net of allowance | 409 | 442 |
Total | 5,727 | 5,715 |
Liabilities | ||
Investment contracts, included in contractholder funds | 41,488 | 40,229 |
Debt | 0 | 0 |
Total | 41,488 | 40,229 |
NAV | ||
Assets | ||
Investments in unconsolidated affiliates | 3,018 | 2,779 |
Other invested assets | 42 | 42 |
Total | $ 3,060 | $ 2,821 |
Investments - Consolidated Inve
Investments - Consolidated Investments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Available-for-sale securities | ||
Amortized Cost | $ 47,789 | $ 45,606 |
Allowance for Expected Credit Losses | (40) | (42) |
Gross Unrealized Gains | 500 | 457 |
Gross Unrealized Losses | (3,683) | (3,648) |
Fair Value/Carrying Value | 44,566 | 42,373 |
Asset-backed securities | ||
Available-for-sale securities | ||
Amortized Cost | 15,254 | 14,631 |
Allowance for Expected Credit Losses | (11) | (11) |
Gross Unrealized Gains | 280 | 191 |
Gross Unrealized Losses | (408) | (469) |
Fair Value/Carrying Value | 15,115 | 14,342 |
Commercial mortgage-backed securities | ||
Available-for-sale securities | ||
Amortized Cost | 5,040 | 4,797 |
Allowance for Expected Credit Losses | (21) | (22) |
Gross Unrealized Gains | 38 | 23 |
Gross Unrealized Losses | (239) | (323) |
Fair Value/Carrying Value | 4,818 | 4,475 |
Corporates | ||
Available-for-sale securities | ||
Amortized Cost | 21,430 | 20,133 |
Allowance for Expected Credit Losses | (7) | (6) |
Gross Unrealized Gains | 133 | 186 |
Gross Unrealized Losses | (2,585) | (2,417) |
Fair Value/Carrying Value | 18,971 | 17,896 |
Hybrids | ||
Available-for-sale securities | ||
Amortized Cost | 667 | 668 |
Allowance for Expected Credit Losses | 0 | 0 |
Gross Unrealized Gains | 4 | 3 |
Gross Unrealized Losses | (38) | (53) |
Fair Value/Carrying Value | 633 | 618 |
Municipals | ||
Available-for-sale securities | ||
Amortized Cost | 1,773 | 1,826 |
Allowance for Expected Credit Losses | 0 | 0 |
Gross Unrealized Gains | 11 | 14 |
Gross Unrealized Losses | (237) | (229) |
Fair Value/Carrying Value | 1,547 | 1,611 |
Residential mortgage-backed securities | ||
Available-for-sale securities | ||
Amortized Cost | 2,550 | 2,507 |
Allowance for Expected Credit Losses | (1) | (3) |
Gross Unrealized Gains | 31 | 29 |
Gross Unrealized Losses | (116) | (104) |
Fair Value/Carrying Value | 2,464 | 2,429 |
U.S. Government | ||
Available-for-sale securities | ||
Amortized Cost | 706 | 679 |
Allowance for Expected Credit Losses | 0 | 0 |
Gross Unrealized Gains | 3 | 8 |
Gross Unrealized Losses | (11) | (9) |
Fair Value/Carrying Value | 698 | 678 |
Foreign Governments | ||
Available-for-sale securities | ||
Amortized Cost | 369 | 365 |
Allowance for Expected Credit Losses | 0 | 0 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | (49) | (44) |
Fair Value/Carrying Value | $ 320 | $ 324 |
Investments - Narrative (Detail
Investments - Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) loan | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) loan | |
Debt Securities, Available-for-sale [Line Items] | |||
Investment, non-income producing, greater than twelve months | $ 69,000,000 | $ 47,000,000 | |
Accrued interest receivable | 516,000,000 | 481,000,000 | |
FHLB collateral pledged | 4,518,000,000 | 4,345,000,000 | |
Fixed maturity securities, available-for-sale securities, allowance for credit losses | 40,000,000 | $ 42,000,000 | |
Allowance for credit loss for securities in an unrealized loss position | $ 0 | ||
Commercial mortgage loans, percentage of investments | 5% | 5% | |
DSC ratio, amortization period | 25 years | ||
Mortgage loans delinquent in principal or interest | loan | 0 | ||
Amortized cost of loans on non-accrual | $ 66,000,000 | $ 57,000,000 | |
Loans in process of foreclosure | 58,000,000 | $ 41,000,000 | |
Gross investment income | 780,000,000 | $ 673,000,000 | |
Reinsurance agreement, recognized gains (losses) | (19,000,000) | (22,000,000) | |
Funds Withheld, Reinsurance Agreements | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gross investment income | $ 127,000,000 | $ 58,000,000 | |
United States | |||
Debt Securities, Available-for-sale [Line Items] | |||
Residential mortgage loans, location percentage | 100% | ||
Commercial mortgage loans | |||
Debt Securities, Available-for-sale [Line Items] | |||
Mortgage loans delinquent in principal or interest | loan | 0 | ||
Charge offs | $ 0 | $ 3,000,000 | |
Amortized cost of loans on non-accrual | $ 0 | 0 | |
Commercial mortgage loans | Mortgage loans | |||
Debt Securities, Available-for-sale [Line Items] | |||
Allowance for expected credit loss, probability of loss/default model, projected loss, using reasonable forecast period | 2 years | ||
Allowance for credit loss, probability of loss/default, using market historical loss experience, period | 3 years | ||
Residential mortgage loans | |||
Debt Securities, Available-for-sale [Line Items] | |||
Residential mortgage loans, percentage of total investments | 5% | ||
Charge offs | $ 0 | ||
Amortized cost of loans on non-accrual | $ 66,000,000 | 57,000,000 | |
Residential mortgage loans | Mortgage loans | |||
Debt Securities, Available-for-sale [Line Items] | |||
Allowance for expected credit loss, probability of loss/default model, projected loss, using reasonable forecast period | 2 years | ||
Allowance for credit loss, probability of loss/default, using market historical loss experience, period | 3 years | ||
Fixed maturity securities, available-for-sale | |||
Debt Securities, Available-for-sale [Line Items] | |||
Assets held by insurance regulators | $ 145,000,000 | $ 141,000,000 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Fixed Maturity Available-for-Sale Securities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Other securities which provide for periodic payments, Amortized Cost | $ 22,844 | $ 21,935 |
Amortized Cost | 47,789 | 45,606 |
Fair Value | ||
Other securities which provide for periodic payments, Fair Value | 22,397 | 21,246 |
Total fixed maturity available-for-sale securities, Fair Value | 44,566 | 42,373 |
Corporates, Non-structured Hybrids, Municipal and Government securities: | ||
Amortized Cost | ||
Due in one year or less | 709 | 703 |
Due after one year through five years | 4,765 | 4,320 |
Due after five years through ten years | 3,940 | 3,195 |
Due after ten years | 15,531 | 15,453 |
Subtotal, Amortized Cost | 24,945 | 23,671 |
Fair Value | ||
Due in one year or less | 691 | 687 |
Due after one year through five years | 4,643 | 4,209 |
Due after five years through ten years | 3,770 | 3,048 |
Due after ten years | 13,065 | 13,183 |
Subtotal, Fair Value | 22,169 | 21,127 |
Asset-backed securities | ||
Amortized Cost | ||
Other securities which provide for periodic payments, Amortized Cost | 15,254 | 14,631 |
Amortized Cost | 15,254 | 14,631 |
Fair Value | ||
Other securities which provide for periodic payments, Fair Value | 15,115 | 14,342 |
Total fixed maturity available-for-sale securities, Fair Value | 15,115 | 14,342 |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Other securities which provide for periodic payments, Amortized Cost | 5,040 | 4,797 |
Amortized Cost | 5,040 | 4,797 |
Fair Value | ||
Other securities which provide for periodic payments, Fair Value | 4,818 | 4,475 |
Total fixed maturity available-for-sale securities, Fair Value | 4,818 | 4,475 |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Other securities which provide for periodic payments, Amortized Cost | 2,550 | 2,507 |
Fair Value | ||
Other securities which provide for periodic payments, Fair Value | $ 2,464 | $ 2,429 |
Investments - Fair Value and Gr
Investments - Fair Value and Gross Unrealized Losses of Available-for-Sale Securities (Details) $ in Millions | Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 6,970 | $ 5,841 |
Gross Unrealized Losses Less than 12 months | (251) | (302) |
Fair Value, 12 Months or longer | 20,098 | 20,908 |
Gross Unrealized Losses, 12 months or longer | (3,386) | (3,291) |
Total Fair Value | 27,068 | 26,749 |
Total Gross Unrealized Losses | $ (3,637) | $ (3,593) |
Total number of available-for-sale securities in an unrealized loss position less than twelve months | security | 1,371 | 1,035 |
Total number of available-for-sale securities in an unrealized loss position twelve months or longer | security | 2,775 | 2,846 |
Total number of available-for-sale securities in an unrealized loss position | security | 4,146 | 3,881 |
Asset-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 1,558 | $ 1,707 |
Gross Unrealized Losses Less than 12 months | (41) | (56) |
Fair Value, 12 Months or longer | 4,568 | 5,835 |
Gross Unrealized Losses, 12 months or longer | (358) | (404) |
Total Fair Value | 6,126 | 7,542 |
Total Gross Unrealized Losses | (399) | (460) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 470 | 819 |
Gross Unrealized Losses Less than 12 months | (8) | (53) |
Fair Value, 12 Months or longer | 2,048 | 1,922 |
Gross Unrealized Losses, 12 months or longer | (203) | (235) |
Total Fair Value | 2,518 | 2,741 |
Total Gross Unrealized Losses | (211) | (288) |
Corporates | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 3,645 | 2,387 |
Gross Unrealized Losses Less than 12 months | (136) | (134) |
Fair Value, 12 Months or longer | 11,062 | 10,739 |
Gross Unrealized Losses, 12 months or longer | (2,449) | (2,283) |
Total Fair Value | 14,707 | 13,126 |
Total Gross Unrealized Losses | (2,585) | (2,417) |
Hybrids | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 71 | 60 |
Gross Unrealized Losses Less than 12 months | (2) | (2) |
Fair Value, 12 Months or longer | 464 | 483 |
Gross Unrealized Losses, 12 months or longer | (36) | (51) |
Total Fair Value | 535 | 543 |
Total Gross Unrealized Losses | (38) | (53) |
Municipals | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 340 | 399 |
Gross Unrealized Losses Less than 12 months | (51) | (49) |
Fair Value, 12 Months or longer | 935 | 920 |
Gross Unrealized Losses, 12 months or longer | (186) | (179) |
Total Fair Value | 1,275 | 1,319 |
Total Gross Unrealized Losses | (237) | (228) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 507 | 336 |
Gross Unrealized Losses Less than 12 months | (9) | (5) |
Fair Value, 12 Months or longer | 687 | 662 |
Gross Unrealized Losses, 12 months or longer | (99) | (89) |
Total Fair Value | 1,194 | 998 |
Total Gross Unrealized Losses | (108) | (94) |
U.S. Government | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 337 | 84 |
Gross Unrealized Losses Less than 12 months | (2) | 0 |
Fair Value, 12 Months or longer | 147 | 159 |
Gross Unrealized Losses, 12 months or longer | (9) | (9) |
Total Fair Value | 484 | 243 |
Total Gross Unrealized Losses | (11) | (9) |
Foreign Governments | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 42 | 49 |
Gross Unrealized Losses Less than 12 months | (2) | (3) |
Fair Value, 12 Months or longer | 187 | 188 |
Gross Unrealized Losses, 12 months or longer | (46) | (41) |
Total Fair Value | 229 | 237 |
Total Gross Unrealized Losses | $ (48) | $ (44) |
Investments - Schedule of Comme
Investments - Schedule of Commercial Mortgage Loan Investment (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||||
Allowance for credit loss | $ (67) | $ (66) | $ (60) | $ (42) |
Total mortgage loans | 5,440 | 5,336 | ||
Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | 2,563 | 2,550 | ||
Allowance for credit loss | (13) | (12) | $ (12) | $ (10) |
Total mortgage loans | $ 2,550 | $ 2,538 | ||
% of Total | 100% | 100% | ||
East North Central | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 104 | $ 151 | ||
% of Total | 4% | 6% | ||
East South Central | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 75 | $ 75 | ||
% of Total | 3% | 3% | ||
Middle Atlantic | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 354 | $ 354 | ||
% of Total | 14% | 14% | ||
Mountain | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 386 | $ 352 | ||
% of Total | 15% | 14% | ||
New England | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 92 | $ 168 | ||
% of Total | 3% | 6% | ||
Pacific | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 765 | $ 766 | ||
% of Total | 30% | 30% | ||
South Atlantic | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 618 | $ 563 | ||
% of Total | 24% | 22% | ||
West North Central | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 21 | $ 4 | ||
% of Total | 1% | 0% | ||
West South Central | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 148 | $ 117 | ||
% of Total | 6% | 5% | ||
Hotel | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 18 | $ 18 | ||
% of Total | 1% | 1% | ||
Industrial | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 617 | $ 616 | ||
% of Total | 24% | 24% | ||
Mixed Use Property | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 11 | $ 11 | ||
% of Total | 0% | 0% | ||
Multifamily | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 1,012 | $ 1,012 | ||
% of Total | 39% | 40% | ||
Office | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 315 | $ 316 | ||
% of Total | 13% | 13% | ||
Retail | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 101 | $ 102 | ||
% of Total | 4% | 4% | ||
Student Housing | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 83 | $ 392 | ||
% of Total | 3% | 15% | ||
Other | Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 406 | $ 83 | ||
% of Total | 16% | 3% |
Investments - Commercial Mortga
Investments - Commercial Mortgage Loans Segregated By Aging of Loans and Charge Offs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Charge-offs | ||
2023 | $ 0 | $ 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Commercial mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 35 | 213 |
2023 | 214 | 288 |
2022 | 288 | 1,256 |
2021 | 1,256 | 512 |
2020 | 513 | 0 |
Prior | 257 | 259 |
Total | 2,563 | 2,528 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 35 | 213 |
2022 | 214 | 288 |
2021 | 288 | 1,256 |
2020 | 1,256 | 512 |
2019 | 513 | 0 |
Prior | 257 | 259 |
Total | 2,563 | 2,528 |
Loans under development, amortized cost | 22 | 22 |
Loans under development, fair value | 22 | 22 |
Charge-offs | ||
Prior | 0 | 3 |
Total | 0 | 3 |
Commercial mortgage loans | Current (less than 30 days past due) | ||
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 35 | 213 |
2023 | 214 | 288 |
2022 | 288 | 1,256 |
2021 | 1,256 | 512 |
2020 | 513 | 0 |
Prior | 257 | 259 |
Total | 2,563 | 2,528 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 35 | 213 |
2022 | 214 | 288 |
2021 | 288 | 1,256 |
2020 | 1,256 | 512 |
2019 | 513 | 0 |
Prior | 257 | 259 |
Total | 2,563 | 2,528 |
Commercial mortgage loans | 30-89 days past due | ||
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 0 |
Commercial mortgage loans | 90 Days or more past due | ||
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Total | $ 0 | $ 0 |
Investments - Schedule of Inves
Investments - Schedule of Investment in CMLs by Loan to Value and Debt Service Coverage Ratios (Details) - Commercial mortgage loans - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Investments [Line Items] | ||
Total | $ 2,563 | $ 2,528 |
% of Total | 100% | 100% |
Loans under development, amortized cost | $ 22 | $ 22 |
Loans under development, fair value | 22 | 22 |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 35 | 213 |
2023 | 214 | 288 |
2022 | 288 | 1,256 |
2021 | 1,256 | 512 |
2020 | 513 | 0 |
Prior | 257 | 259 |
Total | 2,563 | 2,528 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 35 | 213 |
2022 | 214 | 288 |
2021 | 288 | 1,256 |
2020 | 1,256 | 512 |
2019 | 513 | 0 |
Prior | 257 | 259 |
Total | 2,563 | 2,528 |
Fair Value | ||
Schedule of Investments [Line Items] | ||
Total | $ 2,229 | $ 2,231 |
% of Total | 100% | 100% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 2,229 | $ 2,231 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 2,229 | 2,231 |
Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Total | $ 493 | $ 533 |
% of Total | 19% | 21% |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | $ 35 | $ 85 |
2023 | 86 | 17 |
2022 | 17 | 77 |
2021 | 77 | 232 |
2020 | 156 | 0 |
Prior | 122 | 122 |
Total | 493 | 533 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 35 | 85 |
2022 | 86 | 17 |
2021 | 17 | 77 |
2020 | 77 | 232 |
2019 | 156 | 0 |
Prior | 122 | 122 |
Total | 493 | 533 |
Less than 50.00% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Total | $ 477 | $ 510 |
% of Total | 21% | 23% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 477 | $ 510 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 477 | 510 |
50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Total | $ 864 | $ 764 |
% of Total | 34% | 30% |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | $ 0 | $ 53 |
2023 | 53 | 149 |
2022 | 149 | 267 |
2021 | 292 | 158 |
2020 | 235 | 0 |
Prior | 135 | 137 |
Total | 864 | 764 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 53 |
2022 | 53 | 149 |
2021 | 149 | 267 |
2020 | 292 | 158 |
2019 | 235 | 0 |
Prior | 135 | 137 |
Total | 864 | 764 |
50.00% to 59.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Total | $ 754 | $ 679 |
% of Total | 34% | 30% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 754 | $ 679 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 754 | 679 |
60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Total | $ 1,191 | $ 1,216 |
% of Total | 46% | 48% |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | $ 0 | $ 69 |
2023 | 69 | 113 |
2022 | 113 | 912 |
2021 | 887 | 122 |
2020 | 122 | 0 |
Prior | 0 | 0 |
Total | 1,191 | 1,216 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 69 |
2022 | 69 | 113 |
2021 | 113 | 912 |
2020 | 887 | 122 |
2019 | 122 | 0 |
Prior | 0 | 0 |
Total | 1,191 | 1,216 |
60.00% to 74.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Total | $ 983 | $ 1,028 |
% of Total | 44% | 46% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 983 | $ 1,028 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 983 | 1,028 |
75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Total | $ 15 | $ 15 |
% of Total | 1% | 1% |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | $ 0 | $ 6 |
2023 | 6 | 9 |
2022 | 9 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 0 | 0 |
Total | 15 | 15 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 6 |
2022 | 6 | 9 |
2021 | 9 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Total | 15 | 15 |
75.00% to 84.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Total | $ 15 | $ 14 |
% of Total | 1% | 1% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 15 | $ 14 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 15 | 14 |
Greater than 1.25 | ||
Schedule of Investments [Line Items] | ||
Total | 2,477 | 2,443 |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 35 | 154 |
2023 | 154 | 276 |
2022 | 276 | 1,256 |
2021 | 1,256 | 512 |
2020 | 513 | 0 |
Prior | 243 | 245 |
Total | 2,477 | 2,443 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 35 | 154 |
2022 | 154 | 276 |
2021 | 276 | 1,256 |
2020 | 1,256 | 512 |
2019 | 513 | 0 |
Prior | 243 | 245 |
Total | 2,477 | 2,443 |
Greater than 1.25 | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Total | 479 | 519 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 479 | 519 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 479 | 519 |
Greater than 1.25 | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Total | 864 | 764 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 864 | 764 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 864 | 764 |
Greater than 1.25 | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Total | 1,134 | 1,160 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 1,134 | 1,160 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 1,134 | 1,160 |
Greater than 1.25 | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Total | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Greater than 1.00 but less than 1.25 | ||
Schedule of Investments [Line Items] | ||
Total | 63 | 66 |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 0 | 59 |
2023 | 60 | 3 |
2022 | 3 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 0 | 4 |
Total | 63 | 66 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 59 |
2022 | 60 | 3 |
2021 | 3 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 4 |
Total | 63 | 66 |
Greater than 1.00 but less than 1.25 | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Total | 0 | 4 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 4 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 4 |
Greater than 1.00 but less than 1.25 | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Total | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Greater than 1.00 but less than 1.25 | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Total | 57 | 56 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 57 | 56 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 57 | 56 |
Greater than 1.00 but less than 1.25 | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Total | 6 | 6 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 6 | 6 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 6 | 6 |
Less than 1.00 | ||
Schedule of Investments [Line Items] | ||
Total | 23 | 19 |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 0 | 0 |
2023 | 0 | 9 |
2022 | 9 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 14 | 10 |
Total | 23 | 19 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 0 |
2022 | 0 | 9 |
2021 | 9 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 14 | 10 |
Total | 23 | 19 |
Less than 1.00 | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Total | 14 | 10 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 14 | 10 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 14 | 10 |
Less than 1.00 | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Total | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Less than 1.00 | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Total | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Less than 1.00 | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Total | 9 | 9 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 9 | 9 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | $ 9 | $ 9 |
Investments - Distribution of R
Investments - Distribution of Residential Mortgage Loans by State (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||||
Allowance for credit loss | $ (67) | $ (66) | $ (60) | $ (42) |
Total mortgage loans | 5,440 | 5,336 | ||
Residential mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 2,944 | $ 2,852 | ||
% of Total | 100% | 100% | ||
Allowance for credit loss | $ (54) | $ (54) | $ (48) | $ (32) |
Total mortgage loans | 2,890 | 2,798 | ||
Florida | Residential mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 164 | $ 163 | ||
% of Total | 5% | 6% | ||
California | Residential mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 142 | $ 129 | ||
% of Total | 5% | 5% | ||
Texas | Residential mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 129 | |||
% of Total | 5% | |||
All other states | Residential mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 2,638 | $ 2,431 | ||
% of Total | 90% | 84% |
Investments - Schedule of Resid
Investments - Schedule of Residential Mortgage Loans with Credit Quality Indicators, Performing or Nonperforming (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||||
Allowance for credit loss | $ (67) | $ (66) | $ (60) | $ (42) |
Total mortgage loans | 5,440 | 5,336 | ||
Residential mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 2,944 | $ 2,852 | ||
% of Total | 100% | 100% | ||
Allowance for credit loss | $ (54) | $ (54) | $ (48) | $ (32) |
Allowance for expected credit loss, % of Total | 0% | 0% | ||
Total mortgage loans | $ 2,890 | $ 2,798 | ||
Total residential mortgage loans, net of valuation allowance, % of Total | 100% | 100% | ||
Performing Financial Instruments | Residential mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 2,878 | $ 2,795 | ||
% of Total | 98% | 98% | ||
Nonperforming Financial Instruments | Residential mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 66 | $ 57 | ||
% of Total | 2% | 2% |
Investments - Schedule of Res_2
Investments - Schedule of Residential Loans Segregated by Aging of Loans (By Year of Origination) and Non-accrual Loans by Amortized Cost (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | $ 66 | $ 57 |
Residential mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 56 | 373 |
2023 | 404 | 995 |
2022 | 997 | 877 |
2021 | 895 | 208 |
2020 | 203 | 204 |
Prior | 389 | 195 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 56 | 373 |
2022 | 404 | 995 |
2021 | 997 | 877 |
2020 | 895 | 208 |
2019 | 203 | 204 |
Prior | 389 | 195 |
Total | 2,944 | 2,852 |
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | 66 | 57 |
Commercial mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 2,563 | 2,528 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 2,563 | 2,550 |
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | 0 | 0 |
Current (less than 30 days past due) | Residential mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 56 | 373 |
2023 | 402 | 985 |
2022 | 984 | 854 |
2021 | 874 | 192 |
2020 | 185 | 183 |
Prior | 361 | 192 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 56 | 373 |
2022 | 402 | 985 |
2021 | 984 | 854 |
2020 | 874 | 192 |
2019 | 185 | 183 |
Prior | 361 | 192 |
Total | 2,862 | 2,779 |
Current (less than 30 days past due) | Commercial mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 2,563 | 2,528 |
30-89 days past due | Residential mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 0 | 0 |
2023 | 1 | 4 |
2022 | 2 | 7 |
2021 | 3 | 3 |
2020 | 6 | 0 |
Prior | 4 | 2 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 0 |
2022 | 1 | 4 |
2021 | 2 | 7 |
2020 | 3 | 3 |
2019 | 6 | 0 |
Prior | 4 | 2 |
Total | 16 | 16 |
30-89 days past due | Commercial mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
90 Days or more past due | Residential mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 0 | 0 |
2023 | 1 | 6 |
2022 | 11 | 16 |
2021 | 18 | 13 |
2020 | 12 | 21 |
Prior | 24 | 1 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 0 |
2022 | 1 | 6 |
2021 | 11 | 16 |
2020 | 18 | 13 |
2019 | 12 | 21 |
Prior | 24 | 1 |
Total | 66 | 57 |
90 Days or more past due | Commercial mortgage loans | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 0 | $ 0 |
Investments - Changes in Allowa
Investments - Changes in Allowance for Expected Credit Losses on Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | $ 66 | $ 42 |
Provision for loan losses | 1 | 18 |
Ending Balance | 67 | 60 |
Residential mortgage loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | 54 | 32 |
Provision for loan losses | 0 | 16 |
Ending Balance | 54 | 48 |
Commercial mortgage loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | 12 | 10 |
Provision for loan losses | 1 | 2 |
Ending Balance | $ 13 | $ 12 |
Investments - Interest and Inve
Investments - Interest and Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Investments [Line Items] | ||
Gross investment income | $ 780 | $ 673 |
Investment expense | (70) | (62) |
Interest and investment income | 710 | 611 |
Fixed maturity securities, available-for-sale | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 534 | 447 |
Equity securities | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 10 | 8 |
Preferred securities | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 8 | 13 |
Mortgage loans | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 66 | 51 |
Invested cash and short-term investments | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 47 | 33 |
Limited partnerships | ||
Schedule of Investments [Line Items] | ||
Limited partnerships | 54 | 57 |
Tax deferred property exchange income | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 32 | 45 |
Other investments | ||
Schedule of Investments [Line Items] | ||
Gross investment income | $ 29 | $ 19 |
Investments - Recognized Gains
Investments - Recognized Gains (Losses), net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Investments [Line Items] | ||
Net realized (losses) on fixed maturity available-for-sale securities | $ (19) | $ (50) |
Net realized/unrealized gains (losses) on other invested assets | 60 | (5) |
Change in allowance for expected credit losses | 0 | (4) |
Realized gains (losses) on certain derivative instruments | 21 | (89) |
Unrealized gains on certain derivative instruments | 156 | 147 |
Change in fair value of other derivatives and embedded derivatives | 5 | 2 |
Realized gains on derivatives and embedded derivatives | 164 | 41 |
Recognized gains and losses, net | 275 | 5 |
Embedded Derivatives Liabilities in Reinsurance Contracts [Member] | ||
Schedule of Investments [Line Items] | ||
Change in fair value of reinsurance related embedded derivatives | (18) | (19) |
Equity securities | ||
Schedule of Investments [Line Items] | ||
Net realized/unrealized gains on equity securities and (losses) gains n preferred securities | 54 | 33 |
Valuation gains | (22) | 46 |
Preferred securities | ||
Schedule of Investments [Line Items] | ||
Net realized/unrealized gains on equity securities and (losses) gains n preferred securities | 16 | (10) |
Valuation gains | $ (15) | $ 35 |
Investments - Proceeds From the
Investments - Proceeds From the Sale of Fixed-Maturity Available-For-Sale Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 583 | $ 489 |
Gross gains | 6 | 1 |
Gross losses | $ (25) | $ (51) |
Investments - VIE (Details)
Investments - VIE (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Investments [Line Items] | ||
Carrying Value | $ 25,358 | $ 23,908 |
Maximum Loss Exposure | 29,175 | 27,152 |
Investment in unconsolidated affiliates | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 3,367 | 3,071 |
Maximum Loss Exposure | 5,733 | 4,806 |
Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 21,991 | 20,837 |
Maximum Loss Exposure | $ 23,442 | $ 22,346 |
Investments - Schedule of Inv_2
Investments - Schedule of Investment Concentrations (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Blackstone Wave Asset Holdco | Stockholders' Equity | Investment Risk Concentration | |
Schedule of Investments [Line Items] | |
Investment owned, at fair value | $ 733 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Carrying Amounts of Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Total asset derivatives | $ 1,188 | $ 977 |
Total liability derivatives | 4,698 | 4,258 |
Foreign currency forwards | ||
Derivative [Line Items] | ||
Total asset derivatives | 0 | 1 |
Derivative investments | Call options | ||
Derivative [Line Items] | ||
Total asset derivatives | 1,015 | 739 |
Derivative investments | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Total asset derivatives | 9 | 57 |
Other long-term investments | Embedded derivatives | ||
Derivative [Line Items] | ||
Total asset derivatives | 30 | 28 |
Prepaid expenses and other assets | Embedded derivatives | ||
Derivative [Line Items] | ||
Total asset derivatives | 134 | 152 |
Contractholder funds | Indexed annuities/IUL embedded derivatives, included in contractholder funds | ||
Derivative [Line Items] | ||
Total liability derivatives | 4,679 | 4,258 |
Accounts payable and accrued liabilities: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Total liability derivatives | $ 19 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Change in Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Call options | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | $ 250 | $ 55 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | (80) | 0 |
Futures contracts | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | 6 | 5 |
Foreign currency forwards | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | 3 | (1) |
Other embedded derivatives | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | 3 | 1 |
Reinsurance related embedded derivatives | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | (18) | (19) |
Total net investment gains | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | 164 | 41 |
Indexed annuities/IUL embedded derivatives increase | ||
Derivative [Line Items] | ||
Change in fair value of derivatives | $ 421 | $ 454 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) contract | Dec. 31, 2023 USD ($) contract | |
All Counterparties Except Merrill Lynch | ||
Derivative [Line Items] | ||
Counterparties, collateral required threshold | 0% | |
Embedded derivatives | ||
Derivative [Line Items] | ||
Term of contract, term one | 1 year | |
Term of contract, term two | 2 years | |
Term of contract, term three | 3 years | |
Term of contract, term four | 5 years | |
Call options | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral posted | $ 968 | $ 775 |
Maximum amount of loss due to credit risk | 46 | 39 |
Call options | Derivatives for Trading and Investment | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral posted | 968 | 775 |
Maximum amount of loss due to credit risk | 46 | 39 |
Call options | Cash and Cash Equivalents | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral posted | $ 740 | $ 588 |
Futures contracts | ||
Derivative [Line Items] | ||
Number of instruments held | contract | 379 | 439 |
Collateral held | $ 4 | $ 4 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Exposure to Credit Loss on Call Options Held (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 1,188 | $ 977 |
Not Designated as Hedging Instrument | Call options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 32,521 | 29,968 |
Fair Value | 1,005 | 796 |
Collateral | 968 | 775 |
Net Credit Risk | 46 | 39 |
Not Designated as Hedging Instrument | Call options | Merrill Lynch | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 4,340 | 4,408 |
Fair Value | 132 | 96 |
Collateral | 93 | 59 |
Net Credit Risk | 39 | 37 |
Not Designated as Hedging Instrument | Call options | Morgan Stanley | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 4,353 | 3,466 |
Fair Value | 159 | 102 |
Collateral | 166 | 116 |
Net Credit Risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | Barclay's Bank | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,389 | 6,236 |
Fair Value | 124 | 102 |
Collateral | 122 | 100 |
Net Credit Risk | 2 | 2 |
Not Designated as Hedging Instrument | Call options | Canadian Imperial Bank of Commerce | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 5,552 | 5,983 |
Fair Value | 163 | 147 |
Collateral | 163 | 148 |
Net Credit Risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | Wells Fargo | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,313 | 1,443 |
Fair Value | 69 | 58 |
Collateral | 70 | 60 |
Net Credit Risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | Goldman Sachs | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,340 | 1,919 |
Fair Value | 45 | 45 |
Collateral | 44 | 45 |
Net Credit Risk | 1 | 0 |
Not Designated as Hedging Instrument | Call options | Credit Suisse | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 16 | 92 |
Fair Value | 1 | 4 |
Collateral | 1 | 4 |
Net Credit Risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | Truist | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,185 | 2,759 |
Fair Value | 135 | 124 |
Collateral | 134 | 124 |
Net Credit Risk | 1 | 0 |
Not Designated as Hedging Instrument | Call options | Citibank | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,145 | 1,073 |
Fair Value | 25 | 27 |
Collateral | 26 | 28 |
Net Credit Risk | 0 | 0 |
Not Designated as Hedging Instrument | Call options | JP Morgan | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,888 | 2,589 |
Fair Value | 152 | 91 |
Collateral | 149 | 91 |
Net Credit Risk | $ 3 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Jan. 02, 2024 USD ($) | Sep. 07, 2023 lawsuit | Mar. 31, 2024 USD ($) lawsuit |
Other Commitments [Line Items] | |||
Estimated litigation liability | $ | $ 10 | ||
Loan Commitment | Roar | |||
Other Commitments [Line Items] | |||
Loan agreement maturity period | 60 days | ||
Balance outstanding | $ | $ 0 | ||
Loan Commitment | Roar | Maximum | |||
Other Commitments [Line Items] | |||
Loan commitment (up to) | $ | $ 40 | ||
Damages from Product Defects | |||
Other Commitments [Line Items] | |||
Number of similar lawsuits filed against other entities (over) | lawsuit | 150 | ||
Pending Litigation | Damages from Product Defects | |||
Other Commitments [Line Items] | |||
Number of class action lawsuits | lawsuit | 2 | ||
Cooper v. Progress Software Corp., No. 1:23-cv-12067 | |||
Other Commitments [Line Items] | |||
Number of defendants | lawsuit | 5 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Investment Commitments (Details) - Commitment to Invest $ in Millions | Mar. 31, 2024 USD ($) |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 4,225 |
Limited partnerships | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 2,366 |
Whole loans | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 678 |
Fixed maturity securities, ABS | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 341 |
Direct Lending | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 530 |
Other fixed maturity securities, AFS | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 11 |
Commercial mortgage loans | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 82 |
Other assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 173 |
Other invested assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 44 |
Dividends (Details)
Dividends (Details) - $ / shares | 3 Months Ended | ||
May 08, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Subsequent Event [Line Items] | |||
Cash dividend per common share (in dollars per share) | $ 0.48 | $ 0.45 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Cash dividend per common share (in dollars per share) | $ 0.48 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Title premiums | $ 1,033 | $ 978 | |
Other revenues | 1,281 | 880 | |
Revenues from external customers | 2,314 | 1,858 | |
Interest and investment income, including recognized gains and losses, net | 985 | 616 | |
Total revenues | 3,299 | 2,474 | |
Depreciation and amortization | 167 | 134 | |
Interest expense | 49 | 42 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | 331 | (74) | |
Income tax expense (benefit) | 63 | 14 | |
Earnings (loss) before equity in earnings of unconsolidated affiliates | 268 | (88) | |
Equity in earnings (loss) of unconsolidated affiliates | 1 | 0 | |
Net earnings (loss) from continuing operations | 269 | (88) | |
Total | 84,496 | 69,654 | $ 80,614 |
Goodwill | 5,107 | 4,791 | $ 4,830 |
Operating Segments | Title | |||
Segment Reporting Information [Line Items] | |||
Title premiums | 1,033 | 978 | |
Other revenues | 484 | 471 | |
Revenues from external customers | 1,517 | 1,449 | |
Interest and investment income, including recognized gains and losses, net | 146 | 103 | |
Total revenues | 1,663 | 1,552 | |
Depreciation and amortization | 36 | 37 | |
Interest expense | 0 | 0 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | 218 | 157 | |
Income tax expense (benefit) | 45 | 27 | |
Earnings (loss) before equity in earnings of unconsolidated affiliates | 173 | 130 | |
Equity in earnings (loss) of unconsolidated affiliates | 1 | ||
Net earnings (loss) from continuing operations | 174 | 130 | |
Total | 7,905 | 8,017 | |
Goodwill | 2,797 | 2,766 | |
Operating Segments | F&G | |||
Segment Reporting Information [Line Items] | |||
Title premiums | 0 | 0 | |
Other revenues | 741 | 365 | |
Revenues from external customers | 741 | 365 | |
Interest and investment income, including recognized gains and losses, net | 828 | 504 | |
Total revenues | 1,569 | 869 | |
Depreciation and amortization | 123 | 90 | |
Interest expense | 30 | 22 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | 142 | (203) | |
Income tax expense (benefit) | 26 | (8) | |
Earnings (loss) before equity in earnings of unconsolidated affiliates | 116 | (195) | |
Equity in earnings (loss) of unconsolidated affiliates | 0 | ||
Net earnings (loss) from continuing operations | 116 | (195) | |
Total | 74,417 | 59,395 | |
Goodwill | 2,017 | 1,749 | |
Operating Segments | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Title premiums | 0 | 0 | |
Other revenues | 56 | 44 | |
Revenues from external customers | 56 | 44 | |
Interest and investment income, including recognized gains and losses, net | 38 | 9 | |
Total revenues | 94 | 53 | |
Depreciation and amortization | 8 | 7 | |
Interest expense | 19 | 20 | |
Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | (2) | (28) | |
Income tax expense (benefit) | (8) | (5) | |
Earnings (loss) before equity in earnings of unconsolidated affiliates | 6 | (23) | |
Equity in earnings (loss) of unconsolidated affiliates | 0 | ||
Net earnings (loss) from continuing operations | 6 | (23) | |
Total | 2,174 | 2,242 | |
Goodwill | 293 | $ 276 | |
Consolidation, Eliminations | |||
Segment Reporting Information [Line Items] | |||
Title premiums | 0 | ||
Other revenues | 0 | ||
Revenues from external customers | 0 | ||
Interest and investment income, including recognized gains and losses, net | (27) | ||
Total revenues | (27) | ||
Depreciation and amortization | 0 | ||
Interest expense | 0 | ||
Earnings (loss) from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | (27) | ||
Income tax expense (benefit) | 0 | ||
Earnings (loss) before equity in earnings of unconsolidated affiliates | (27) | ||
Equity in earnings (loss) of unconsolidated affiliates | 0 | ||
Net earnings (loss) from continuing operations | (27) | ||
Total | 0 | ||
Goodwill | $ 0 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash paid for: | ||
Interest | $ 57 | $ 34 |
Income taxes | 3 | 6 |
Deferred sales inducements | 54 | 29 |
Non-cash investing and financing activities: | ||
Change in proceeds of sales of investments available for sale receivable in period | (37) | 41 |
Change in purchases of investments available for sale payable in period | 173 | 78 |
Lease liabilities recognized in exchange for lease right-of-use assets | 16 | 9 |
Remeasurement of lease liabilities | 13 | 19 |
Liabilities assumed in connection with acquisitions | ||
Fair value of assets acquired | 474 | 276 |
Less: Total Purchase price | 284 | 273 |
Liabilities and noncontrolling interests assumed | $ 190 | $ 3 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 421 | $ 418 |
Interest and investment income | 710 | 611 |
Recognized gains and losses, net | 275 | 5 |
Total revenues | 3,299 | 2,474 |
Title | ||
Disaggregation of Revenue [Line Items] | ||
Loan subservicing revenue | 66 | 60 |
Title | Direct title insurance premiums | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 440 | 428 |
Title | Agency title insurance premiums | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 593 | 550 |
Title | Home warranty | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 32 | 30 |
Title | Insurance contracts | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 1,806 | 1,373 |
Title | Escrow fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 167 | 160 |
Title | Other title-related fees and income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 145 | 146 |
Title | ServiceLink, excluding title premiums, escrow fees, and subservicing fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 74 | 75 |
F&G | Life insurance premiums, insurance and investment product fees, and other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 741 | 365 |
Corporate and other | Real estate technology | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 35 | 37 |
Corporate and other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 21 | $ 7 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Home warranty contract, period | 1 year |
Revenue Recognition - Informati
Revenue Recognition - Information about Trade Receivables and Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||
Trade receivables | $ 310 | $ 317 | |
Deferred revenue (contract liabilities) | $ 90 | $ 91 | |
Policy period | 1 year | ||
Revenue recognized | $ 34 | $ 32 |
Value of Business Acquired, D_3
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - Reconciliation of Other Intangibles to Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | $ 1,407 | $ 1,446 | $ 1,572 | $ 1,615 |
DAC | 2,412 | 2,215 | ||
DSI | 392 | 346 | ||
Total Other intangible assets, net | 5,027 | 4,627 | ||
Customer relationships and contracts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | 340 | 174 | ||
Value of distribution asset | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | 83 | 86 | ||
Computer software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | 270 | 266 | ||
Trademarks, tradenames, and other | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | $ 123 | $ 94 |
Value of Business Acquired, D_4
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - VOBA (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
VOBA | ||
VOBA at beginning of period | $ 1,446 | $ 1,615 |
Amortization | (39) | (43) |
VOBA at end of period | 1,407 | 1,572 |
Indexed Annuities | ||
VOBA | ||
VOBA at beginning of period | 1,025 | 1,166 |
Amortization | (33) | (36) |
VOBA at end of period | 992 | 1,130 |
Fixed Rate Annuities | ||
VOBA | ||
VOBA at beginning of period | 27 | 32 |
Amortization | (1) | (1) |
VOBA at end of period | 26 | 31 |
Immediate Annuities | ||
VOBA | ||
VOBA at beginning of period | 191 | 201 |
Amortization | (2) | (3) |
VOBA at end of period | 189 | 198 |
Universal Life | ||
VOBA | ||
VOBA at beginning of period | 134 | 143 |
Amortization | (2) | (2) |
VOBA at end of period | 132 | 141 |
Traditional Life | ||
VOBA | ||
VOBA at beginning of period | 69 | 73 |
Amortization | (1) | (1) |
VOBA at end of period | $ 68 | $ 72 |
Value of Business Acquired, D_5
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
VOBA amortization | $ (39) | $ (43) |
DAC amortization | $ (60) | $ (35) |
Value of Business Acquired, D_6
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - DAC (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
DAC | ||
DAC at beginning of period | $ 2,211 | $ 1,402 |
Capitalization | 257 | 221 |
Amortization | (60) | (35) |
Reinsurance related adjustments | 79 | |
DAC at end of period | 2,408 | 1,667 |
Indexed Annuities | ||
DAC | ||
DAC at beginning of period | 1,378 | 971 |
Capitalization | 147 | 113 |
Amortization | (33) | (22) |
Reinsurance related adjustments | 0 | |
DAC at end of period | 1,492 | 1,062 |
Fixed Rate Annuities | ||
DAC | ||
DAC at beginning of period | 288 | 83 |
Capitalization | 44 | 52 |
Amortization | (19) | (5) |
Reinsurance related adjustments | 79 | |
DAC at end of period | 313 | 209 |
Universal Life | ||
DAC | ||
DAC at beginning of period | 545 | 348 |
Capitalization | 66 | 56 |
Amortization | (8) | (8) |
Reinsurance related adjustments | 0 | |
DAC at end of period | $ 603 | $ 396 |
Value of Business Acquired, D_7
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - DAC Reconciliation to Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
DAC | $ 2,412 | $ 2,215 |
Indexed Annuity | ||
Finite-Lived Intangible Assets [Line Items] | ||
DAC | 1,492 | 1,378 |
Fixed Rate Annuities | ||
Finite-Lived Intangible Assets [Line Items] | ||
DAC | 313 | 288 |
Universal Life | ||
Finite-Lived Intangible Assets [Line Items] | ||
DAC | 603 | 545 |
Funding Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
DAC | $ 4 | $ 4 |
Value of Business Acquired, D_8
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - DSI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
DSI | ||
DSI at beginning of period | $ 346 | |
DSI at end of period | 392 | |
Indexed Annuity | ||
DSI | ||
DSI at beginning of period | 346 | $ 200 |
Capitalization | 54 | 29 |
Amortization | (8) | (4) |
DSI at end of period | $ 392 | $ 225 |
Value of Business Acquired, D_9
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements - Estimated Amortization Expense for VOBA in Future Fiscal Periods (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
2024 | $ 111 | |||
2025 | 138 | |||
2026 | 126 | |||
2027 | 115 | |||
2028 | 105 | |||
Thereafter | 812 | |||
Total | $ 1,407 | $ 1,446 | $ 1,572 | $ 1,615 |
F&G Reinsurance - Effect of Rei
F&G Reinsurance - Effect of Reinsurance on Premiums Earned, Benefits Incurred and Reserve Changes (Details) - Traditional Life Insurance Premiums - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Premiums and other considerations: | ||
Direct | $ 620 | $ 301 |
Ceded | (24) | (26) |
Net | 596 | 275 |
Benefits and Other Changes in Insurance Policy Reserves: | ||
Direct | 1,213 | 872 |
Ceded | (52) | (60) |
Net | $ 1,161 | $ 812 |
F&G Reinsurance - Summary of Re
F&G Reinsurance - Summary of Reinsurance Recoverable (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Effects of Reinsurance [Line Items] | ||||
Allowance for expected credit loss | $ (21) | $ (21) | $ (9) | $ (10) |
Reinsurance Recoverables, Including Reinsurance Premium Paid | $ 10,129 | $ 8,977 | ||
Reinsurance, retrocession, quota share basis, percentage | 90% | 90% | ||
F&G | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverable, gross of allowance for credit losses | $ 10,133 | $ 8,981 | ||
Allowance for expected credit loss | (21) | (21) | ||
Reinsurance Recoverables, Including Reinsurance Premium Paid | 10,112 | 8,960 | ||
Aspida Re | Certain MYGA | F&G | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverable, gross of allowance for credit losses | 6,489 | 6,128 | ||
Somerset | Certain MYGA and DA | F&G | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverable, gross of allowance for credit losses | 1,250 | 716 | ||
Wilton Reassurance Company | Block of traditional, IUL and UL | F&G | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverable, gross of allowance for credit losses | 1,085 | 1,092 | ||
Everlake Life Insurance Company | Certain MYGA | F&G | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverable, gross of allowance for credit losses | 791 | 509 | ||
Other | F&G | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverable, gross of allowance for credit losses | $ 518 | $ 536 |
F&G Reinsurance - Credit Loss (
F&G Reinsurance - Credit Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ (21) | $ (10) |
Changes in the expected credit loss reserve | 0 | 1 |
Balance at end of period | $ (21) | $ (9) |
F&G Reinsurance - Narrative (De
F&G Reinsurance - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reinsurance Disclosures [Abstract] | ||
Reinsurance risk charge fee | $ 10 | $ 10 |
F&G Insurance Subsidiary Fina_3
F&G Insurance Subsidiary Financial Information and Regulatory Matters - Statutory Accounting Practices Disclosure (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Corbeau Re | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital surplus (deficit) | $ 156 | ||
IOWA | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital surplus (deficit) | 1,940 | $ 2,009 | |
IOWA | F&G | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | 0 | $ (3) | |
New York | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital surplus (deficit) | 89 | 86 | |
New York | F&G | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | 2 | 1 | |
Vermont | Raven Reinsurance Company | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital surplus (deficit) | 155 | 140 | |
Vermont | Raven Reinsurance Company | F&G | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | 15 | 14 | |
Vermont | Corbeau Re | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital surplus (deficit) | 171 | ||
Vermont | Corbeau Re | F&G | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | (134) | 0 | |
Cayman Islands | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | (31) | 35 | |
Statutory capital surplus (deficit) | 143 | 114 | |
Bermuda | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | 49 | $ 68 | |
Statutory capital surplus (deficit) | $ 61 | $ 11 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - Roar $ in Millions | Jan. 02, 2024 USD ($) |
Business Acquisition [Line Items] | |
Ownership interests acquired | 70% |
Cash paid for $70% majority interest of Roar shares | $ 269 |
Revenue of acquiree | 23 |
Earnings of acquiree | 3 |
Contingent consideration arrangements, payments (up to) | $ 90 |
Contingent consideration liability payment period | 3 years |
Acquisitions - Initial Purchase
Acquisitions - Initial Purchase Price (Details) - Roar $ in Millions | Jan. 02, 2024 USD ($) |
Business Acquisition [Line Items] | |
Ownership interests acquired | 70% |
Cash paid for $70% majority interest of Roar shares | $ 269 |
Less: Cash acquired net of noncontrolling interests | 1 |
Net cash paid for $70% majority interest of Roar | 268 |
Initial fair value of contingent consideration | 48 |
Total net initial consideration | $ 316 |
Acquisitions - Preliminary Fair
Acquisitions - Preliminary Fair Value Amounts Expected To Be Recognized For Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Jan. 02, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 5,107 | $ 4,830 | $ 4,791 | |
Roar | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 268 | |||
Prepaid expenses and other assets | 3 | |||
Other intangible assets | 183 | |||
Total assets acquired | 454 | |||
Accounts payable and accrued liabilities | 2 | |||
Total liabilities assumed | 2 | |||
Noncontrolling interests (fair value determined using income approach) | 136 | |||
Total liabilities assumed and non-controlling interests | 138 | |||
Net assets acquired | $ 316 |
Acquisitions - Gross Carrying V
Acquisitions - Gross Carrying Value and Weighted Average Estimated Useful Lives of Other Intangible Assets (Details) - Roar $ in Millions | Jan. 02, 2024 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Value | $ 183 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Value | $ 179 |
Estimated Useful Life | 12 years |
Definite lived trademarks, tradenames, and other | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Value | $ 4 |
Estimated Useful Life | 10 years |
Market Risk Benefits - Balances
Market Risk Benefits - Balances and Changes in Market Risk Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Market Risk Benefit [Line Items] | ||
Balance beginning of period | $ 315 | |
Balance, end of period | 330 | $ 315 |
Indexed Annuity | ||
Market Risk Benefit [Line Items] | ||
Balance beginning of period | 314 | 164 |
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 209 | 102 |
Issuances and benefit payments | 12 | (10) |
Attributed fees collected and interest accrual | 36 | 131 |
Actual policyholder behavior different from expected | 8 | 27 |
Changes in assumptions and other | (2) | 29 |
Effects of market related movements | (37) | (70) |
Balance, end of period, before effect of changes in the instrument-specific credit risk | 226 | 209 |
Effect of changes in the instrument-specific credit risk | 103 | 105 |
Balance, end of period | $ 329 | $ 314 |
Weighted-average attained age of policyholders weighted by total AV (years) | 68 years 2 months 12 days | 68 years 3 months 10 days |
Net amount at risk | $ 1,091 | $ 1,059 |
Fixed Rate Annuities | ||
Market Risk Benefit [Line Items] | ||
Balance beginning of period | 1 | 1 |
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 1 | 1 |
Issuances and benefit payments | 0 | 0 |
Attributed fees collected and interest accrual | 0 | 0 |
Actual policyholder behavior different from expected | 0 | 0 |
Changes in assumptions and other | 0 | 0 |
Effects of market related movements | 0 | 0 |
Balance, end of period, before effect of changes in the instrument-specific credit risk | 1 | 1 |
Effect of changes in the instrument-specific credit risk | 0 | 0 |
Balance, end of period | $ 1 | $ 1 |
Weighted-average attained age of policyholders weighted by total AV (years) | 72 years 6 months 18 days | 72 years 7 months 2 days |
Net amount at risk | $ 2 | $ 2 |
Market Risk Benefits - Reconcil
Market Risk Benefits - Reconciliation of Asset and Liability (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Market Risk Benefit [Line Items] | |||
Market risk benefits asset | $ 95 | $ 88 | |
Market risk benefits liability | 425 | 403 | |
Net | 330 | 315 | |
Fixed Rate Annuities | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits asset | 0 | 0 | |
Market risk benefits liability | 1 | 1 | |
Net | 1 | 1 | $ 1 |
Indexed Annuity | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits asset | 95 | 88 | |
Market risk benefits liability | 424 | 402 | |
Net | $ 329 | $ 314 | $ 164 |
Contractholder Funds - Summary
Contractholder Funds - Summary of Balances and Changes in Contractholder Funds (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of year | $ 48,798 | ||
Balance, end of year | 50,875 | $ 48,798 | |
Embedded derivative adjustment | 5 | $ 2 | |
Gross Liability, end of period | 50,875 | 48,798 | |
Less: Reinsurance | (10,129) | (8,977) | |
Indexed Annuity | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of year | 27,164 | 24,766 | 24,766 |
Issuances | 1,381 | 4,722 | |
Premiums received | 28 | 103 | |
Policy charge | (46) | (182) | |
Surrenders and withdrawals | (690) | (2,005) | |
Benefit payments | (119) | (526) | |
Interest credited | 139 | 270 | |
Other | 5 | 16 | |
Balance, end of year | 27,862 | 27,164 | |
Embedded derivative adjustment | 468 | 243 | |
Gross Liability, end of period | 28,330 | 27,407 | |
Less: Reinsurance | (13) | (17) | |
Net Liability, after Reinsurance | $ 28,317 | $ 27,390 | |
Weighted-average crediting rate | 2.04% | 1.40% | |
Cash surrender value | $ 25,724 | $ 25,099 | |
Fixed Rate Annuities | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of year | 13,443 | 9,358 | 9,358 |
Issuances | 1,341 | 5,061 | |
Premiums received | 0 | 1 | |
Policy charge | 0 | 0 | |
Surrenders and withdrawals | (364) | (1,142) | |
Benefit payments | (76) | (240) | |
Interest credited | 142 | 405 | |
Other | 0 | 0 | |
Balance, end of year | 14,486 | 13,443 | |
Embedded derivative adjustment | 0 | 0 | |
Gross Liability, end of period | 14,486 | 13,443 | |
Less: Reinsurance | (8,612) | (7,520) | |
Net Liability, after Reinsurance | $ 5,874 | $ 5,923 | |
Weighted-average crediting rate | 4.15% | 4.85% | |
Cash surrender value | $ 13,502 | $ 12,505 | |
Universal Life | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of year | 2,391 | 2,112 | 2,112 |
Issuances | 51 | 199 | |
Premiums received | 114 | 382 | |
Policy charge | (74) | (261) | |
Surrenders and withdrawals | (22) | (90) | |
Benefit payments | (5) | (27) | |
Interest credited | 33 | 76 | |
Other | 0 | 0 | |
Balance, end of year | 2,488 | 2,391 | |
Embedded derivative adjustment | 107 | 84 | |
Gross Liability, end of period | 2,595 | 2,475 | |
Less: Reinsurance | (894) | (894) | |
Net Liability, after Reinsurance | $ 1,701 | $ 1,581 | |
Weighted-average crediting rate | 5.54% | 3.44% | |
Net amount at risk | $ 63,968 | $ 60,389 | |
Cash surrender value | 1,938 | 1,872 | |
Funding Agreements, FABN | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of year | 2,613 | 2,613 | 2,613 |
Issuances | 0 | 0 | |
Premiums received | 0 | 0 | |
Policy charge | 0 | 0 | |
Surrenders and withdrawals | 0 | 0 | |
Benefit payments | (16) | (53) | |
Interest credited | 14 | 54 | |
Other | 0 | (1) | |
Balance, end of year | 2,611 | 2,613 | |
Embedded derivative adjustment | 0 | 0 | |
Gross Liability, end of period | 2,611 | 2,613 | |
Less: Reinsurance | 0 | 0 | |
Net Liability, after Reinsurance | 2,611 | 2,613 | |
FHLB | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of year | 2,539 | $ 1,982 | 1,982 |
Issuances | 305 | 1,256 | |
Premiums received | 0 | 0 | |
Policy charge | 0 | 0 | |
Surrenders and withdrawals | 0 | 0 | |
Benefit payments | (329) | (763) | |
Interest credited | 24 | 64 | |
Other | 0 | 0 | |
Balance, end of year | 2,539 | 2,539 | |
Embedded derivative adjustment | 0 | 0 | |
Gross Liability, end of period | 2,539 | 2,539 | |
Less: Reinsurance | 0 | 0 | |
Net Liability, after Reinsurance | $ 2,539 | $ 2,539 |
Contractholder Funds - Reconcil
Contractholder Funds - Reconciliation to Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Policyholder Account Balance [Line Items] | ||
Contractholder funds | $ 50,875 | $ 48,798 |
Indexed Annuity | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | 28,330 | 27,407 |
Fixed Rate Annuities | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | 14,486 | 13,443 |
Immediate Annuities | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | 304 | 311 |
Universal Life | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | 2,595 | 2,475 |
Traditional Life | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | 5 | 5 |
Funding Agreements, FABN | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | 2,611 | 2,613 |
FHLB | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | 2,539 | 2,539 |
PRT | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | $ 5 | $ 5 |
Contractholder Funds - Narrativ
Contractholder Funds - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Insurance [Abstract] | |
Change in total benefits and other changes in policy reserves increase (decrease) | $ 57 |
Contractholder Funds - Account
Contractholder Funds - Account Values by Range of Guaranteed Minimum Credit Rating (Details) $ in Millions | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Policyholder Account Balance [Line Items] | |||
Contractholder funds | $ 50,875 | $ 48,798 | |
Indexed Annuity | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 27,862 | 27,164 | $ 24,766 |
Indexed Annuity | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 23,355 | 22,965 | |
Indexed Annuity | Range from 0001 to 0050 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1,393 | 1,446 | |
Indexed Annuity | Range from 0051 to 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 615 | 550 | |
Indexed Annuity | Greater Than 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,499 | 2,203 | |
Indexed Annuity | 0.00% To 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 26,515 | 26,315 | |
Indexed Annuity | 0.00% To 1.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 22,671 | 22,392 | |
Indexed Annuity | 0.00% To 1.50% | Range from 0001 to 0050 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1,391 | 1,444 | |
Indexed Annuity | 0.00% To 1.50% | Range from 0051 to 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 522 | 526 | |
Indexed Annuity | 0.00% To 1.50% | Greater Than 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1,931 | 1,953 | |
Indexed Annuity | 1.51% To 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 993 | 471 | |
Indexed Annuity | 1.51% To 2.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 331 | 196 | |
Indexed Annuity | 1.51% To 2.50% | Range from 0001 to 0050 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1 | 1 | |
Indexed Annuity | 1.51% To 2.50% | Range from 0051 to 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 93 | 24 | |
Indexed Annuity | 1.51% To 2.50% | Greater Than 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 568 | 250 | |
Indexed Annuity | Greater Than 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 354 | 378 | |
Indexed Annuity | Greater Than 2.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 353 | 377 | |
Indexed Annuity | Greater Than 2.50% | Range from 0001 to 0050 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1 | 1 | |
Indexed Annuity | Greater Than 2.50% | Range from 0051 to 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Indexed Annuity | Greater Than 2.50% | Greater Than 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Fixed Rate Annuities | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 14,486 | 13,443 | 9,358 |
Fixed Rate Annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 910 | 921 | |
Fixed Rate Annuities | Range from 0001 to 0050 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 33 | 35 | |
Fixed Rate Annuities | Range from 0051 to 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1,365 | 1,559 | |
Fixed Rate Annuities | Greater Than 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 12,178 | 10,928 | |
Fixed Rate Annuities | 0.00% To 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 12,659 | 11,851 | |
Fixed Rate Annuities | 0.00% To 1.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 36 | 23 | |
Fixed Rate Annuities | 0.00% To 1.50% | Range from 0001 to 0050 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 24 | 25 | |
Fixed Rate Annuities | 0.00% To 1.50% | Range from 0051 to 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1,340 | 1,532 | |
Fixed Rate Annuities | 0.00% To 1.50% | Greater Than 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 11,259 | 10,271 | |
Fixed Rate Annuities | 1.51% To 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 488 | 489 | |
Fixed Rate Annuities | 1.51% To 2.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 4 | 5 | |
Fixed Rate Annuities | 1.51% To 2.50% | Range from 0001 to 0050 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 7 | 8 | |
Fixed Rate Annuities | 1.51% To 2.50% | Range from 0051 to 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 21 | 23 | |
Fixed Rate Annuities | 1.51% To 2.50% | Greater Than 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 456 | 453 | |
Fixed Rate Annuities | Greater Than 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1,339 | 1,103 | |
Fixed Rate Annuities | Greater Than 2.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 870 | 893 | |
Fixed Rate Annuities | Greater Than 2.50% | Range from 0001 to 0050 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2 | 2 | |
Fixed Rate Annuities | Greater Than 2.50% | Range from 0051 to 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 4 | 4 | |
Fixed Rate Annuities | Greater Than 2.50% | Greater Than 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 463 | 204 | |
Universal Life | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,488 | 2,391 | $ 2,112 |
Universal Life | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,454 | 2,348 | |
Universal Life | Range from 0001 to 0050 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 11 | 21 | |
Universal Life | Range from 0051 to 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1 | 1 | |
Universal Life | Greater Than 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 22 | 21 | |
Universal Life | 0.00% To 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,113 | 2,013 | |
Universal Life | 0.00% To 1.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,085 | 1,987 | |
Universal Life | 0.00% To 1.50% | Range from 0001 to 0050 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 6 | 5 | |
Universal Life | 0.00% To 1.50% | Range from 0051 to 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Universal Life | 0.00% To 1.50% | Greater Than 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 22 | 21 | |
Universal Life | 1.51% To 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Universal Life | 1.51% To 2.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Universal Life | 1.51% To 2.50% | Range from 0001 to 0050 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Universal Life | 1.51% To 2.50% | Range from 0051 to 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Universal Life | 1.51% To 2.50% | Greater Than 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Universal Life | Greater Than 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 375 | 378 | |
Universal Life | Greater Than 2.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 369 | 361 | |
Universal Life | Greater Than 2.50% | Range from 0001 to 0050 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 5 | 16 | |
Universal Life | Greater Than 2.50% | Range from 0051 to 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1 | 1 | |
Universal Life | Greater Than 2.50% | Greater Than 0150 | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | $ 0 | $ 0 | |
Minimum | Range from 0001 to 0050 | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0001 | 0.0001 | |
Minimum | Range from 0051 to 0150 | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0051 | 0.0051 | |
Minimum | Greater Than 0150 | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 | |
Maximum | Range from 0001 to 0050 | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0050 | 0.0050 | |
Maximum | Range from 0051 to 0150 | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 |
Future Policy Benefits - Summar
Future Policy Benefits - Summary Balances and Changes in the Present Value of Expected Net Premiums and Present Value (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Future policy benefits | $ 7,441 | $ 7,050 | |
Traditional Life | |||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||
Balance, beginning of year | 722 | 797 | |
Beginning balance of original discount rate | 874 | 974 | |
Effect of actual variances from expected experience | (4) | $ (1) | |
Balance adjusted for variances from expectation | 870 | 973 | |
Interest accrual | 4 | 19 | |
Net premiums collected | (28) | (118) | |
Ending Balance at original discount rate | 846 | 874 | |
Effect of changes in discount rate assumptions | 157 | 152 | |
Balance, end of year | 689 | 722 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Balance, beginning of year | 2,071 | 2,151 | |
Beginning balance of original discount rate | 2,492 | 2,665 | |
Effect of actual variances from expected experience | (9) | (24) | |
Balance adjusted for variances from expectation | 2,483 | 2,641 | |
Interest accrual | 14 | 56 | |
Benefits payments | (51) | (205) | |
Ending Balance at original discount rate | 2,446 | 2,492 | |
Effect of changes in discount rate assumptions | (439) | (421) | |
Balance, end of year | 2,007 | 2,071 | |
Future policy benefits | 1,318 | 1,349 | |
Less: Reinsurance recoverable | 483 | 413 | |
Liability for Future Policy Benefit, after Reinsurance, Total | $ 835 | $ 936 | |
Weighted-average duration of liability for future policyholder benefits (years) | 6 years 11 months 15 days | 7 years 4 months 9 days | |
Immediate Annuities | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Balance, beginning of year | $ 1,415 | $ 1,429 | |
Beginning balance of original discount rate | 1,788 | 1,858 | |
Effect of changes in cash flow assumptions | 0 | 0 | |
Effect of actual variances from expected experience | (4) | (15) | |
Balance adjusted for variances from expectation | 1,784 | 1,843 | |
Issuances | 7 | 22 | |
Interest accrual | 14 | 51 | |
Benefits payments | (29) | (128) | |
Ending Balance at original discount rate | 1,776 | 1,788 | |
Effect of changes in discount rate assumptions | (404) | (373) | |
Balance, end of year | 1,372 | 1,415 | |
Future policy benefits | 1,372 | 1,415 | |
Less: Reinsurance recoverable | 113 | 116 | |
Liability for Future Policy Benefit, after Reinsurance, Total | $ 1,259 | $ 1,299 | |
Weighted-average duration of liability for future policyholder benefits (years) | 12 years 10 days | 12 years 5 months 19 days | |
PRT | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Balance, beginning of year | $ 4,189 | $ 2,165 | |
Beginning balance of original discount rate | 4,351 | 2,475 | |
Effect of changes in cash flow assumptions | 11 | (9) | |
Effect of actual variances from expected experience | (8) | (7) | |
Balance adjusted for variances from expectation | 4,354 | $ 2,459 | |
Issuances | 596 | 2,041 | |
Interest accrual | 49 | 109 | |
Benefits payments | (107) | (258) | |
Ending Balance at original discount rate | 4,892 | 4,351 | |
Effect of changes in discount rate assumptions | (237) | (162) | |
Balance, end of year | 4,655 | 4,189 | |
Future policy benefits | 4,655 | 4,189 | |
Less: Reinsurance recoverable | 0 | 0 | |
Liability for Future Policy Benefit, after Reinsurance, Total | $ 4,655 | $ 4,189 | |
Weighted-average duration of liability for future policyholder benefits (years) | 7 years 11 months 15 days | 8 years 2 months 23 days |
Future Policy Benefits - Summ_2
Future Policy Benefits - Summary of Balances and Changes in the Deferred Profit Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Immediate Annuities | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Balance, beginning of year | $ 87 | $ 69 | |
Effect of modeling changes | 0 | $ 4 | |
Effect of changes in cash flow assumptions | 0 | 0 | |
Effect of actual variances from expected experience | 2 | 16 | |
Balance adjusted for variances from expectation | 89 | 89 | |
Issuances | 1 | 3 | |
Interest accrual | 0 | 2 | |
Amortization | (2) | (7) | |
Balance, end of year | 88 | 87 | |
PRT | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Balance, beginning of year | 10 | 4 | |
Effect of modeling changes | 0 | 0 | |
Effect of changes in cash flow assumptions | (4) | 1 | |
Effect of actual variances from expected experience | 2 | 5 | |
Balance adjusted for variances from expectation | 8 | $ 10 | |
Issuances | 0 | 0 | |
Interest accrual | 0 | 1 | |
Amortization | 0 | (1) | |
Balance, end of year | $ 8 | $ 10 |
Future Policy Benefits - Reconc
Future Policy Benefits - Reconciliation of Net FPB to the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future policy benefits | $ 7,441 | $ 7,050 | |
Traditional Life | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future policy benefits | 1,318 | 1,349 | |
Immediate Annuities | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future policy benefits | 1,372 | 1,415 | |
Deferred profit liability | 88 | 87 | $ 69 |
PRT | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future policy benefits | 4,655 | 4,189 | |
Deferred profit liability | 8 | 10 | $ 4 |
Immediate annuities DPL | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Deferred profit liability | 88 | 87 | |
PRT DPL | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Deferred profit liability | $ 8 | $ 10 |
Future Policy Benefits - Liabil
Future Policy Benefits - Liability For Future Policy Benefit Expected Future Policy Benefit Undiscounted (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Discounted [Abstract] | ||
Expected future benefit payments | $ 2,155 | |
Expected future gross premiums | 839 | |
Traditional Life | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted [Abstract] | ||
Expected future benefit payments | $ 2,874 | 3,073 |
Expected future gross premiums | 1,042 | 1,142 |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Discounted [Abstract] | ||
Expected future benefit payments | 2,013 | |
Expected future gross premiums | 751 | |
Immediate Annuities | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted [Abstract] | ||
Expected future benefit payments | 3,271 | 3,402 |
Expected future gross premiums | 0 | 0 |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Discounted [Abstract] | ||
Expected future benefit payments | 1,371 | 1,452 |
Expected future gross premiums | 0 | 0 |
PRT | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted [Abstract] | ||
Expected future benefit payments | 8,344 | 3,916 |
Expected future gross premiums | 0 | 0 |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Discounted [Abstract] | ||
Expected future benefit payments | 4,899 | 2,708 |
Expected future gross premiums | $ 0 | $ 0 |
Future Policy Benefits - Gross
Future Policy Benefits - Gross Premium Income and Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | $ 620 | $ 301 |
Interest expense | 73 | 48 |
Traditional Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | 28 | 32 |
Interest expense | 10 | 9 |
Immediate Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | 8 | 6 |
Interest expense | 14 | 16 |
PRT | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | 584 | 263 |
Interest expense | $ 49 | $ 23 |
Future Policy Benefits - Weight
Future Policy Benefits - Weighted Average Rates (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Traditional Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 1.74% | 2.33% |
Current discount rate | 4.64% | 5.03% |
Immediate Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 3.16% | 3.14% |
Current discount rate | 5.20% | 4.98% |
PRT | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 4.68% | 4.61% |
Current discount rate | 5.30% | 5.03% |
Future Policy Benefits - Actual
Future Policy Benefits - Actual Experience and Expected Experience for Mortality and Lapses (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Actual experience | Traditional Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Mortality rate | 1.20% | 1.70% |
Lapse rate | 0% | 0% |
Actual experience | Immediate Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Mortality rate | 3.20% | 3.20% |
Lapse rate | 0% | 0% |
Actual experience | PRT | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Mortality rate | 4.20% | 3.20% |
Lapse rate | 0% | 0% |
Expected experience | Traditional Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Mortality rate | 1.40% | 1.40% |
Lapse rate | 0.40% | 0.30% |
Expected experience | Immediate Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Mortality rate | 2.30% | 1.80% |
Lapse rate | 0% | 0% |
Expected experience | PRT | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Mortality rate | 2.80% | 2.30% |
Lapse rate | 0% | 0% |