DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2018 | Jun. 19, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 | |
Amendment Flag | false | |
Entity Registrant Name | AXA Equitable Holdings, Inc. | |
Entity Central Index Key | 1,333,986 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 561,000,000 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Investments: | |||
Fixed maturities available for sale, at fair value (amortized cost of $43,268 and $45,068) | $ 43,484 | $ 46,941 | |
Mortgage loans on real estate (net of valuation allowance of $7 and $8) | 11,333 | 10,952 | |
Real estate under development | [1] | 52 | 390 |
Policy loans | 3,776 | 3,819 | |
Other equity investments | [1] | 1,258 | 1,392 |
Trading securities, at fair value | 14,919 | 14,170 | |
Other invested assets | [1] | 4,061 | 4,118 |
Total investments | 78,883 | 81,782 | |
Cash and cash equivalents | [1] | 6,091 | 4,814 |
Cash and securities segregated, at fair value | 1,025 | 825 | |
Broker-dealer related receivables | 2,300 | 2,158 | |
Deferred policy acquisition costs | 6,288 | 5,969 | |
Goodwill and other intangible assets, net | 4,813 | 4,824 | |
Amounts due from reinsurers | 4,953 | 5,023 | |
Loans to affiliates | 885 | 1,230 | |
GMIB reinsurance contract asset, at fair value | 1,734 | 1,894 | |
Current and deferred tax assets | 225 | 67 | |
Other assets | [1] | 3,239 | 2,510 |
Separate Accounts assets | 121,858 | 124,552 | |
Total assets | 232,294 | 235,648 | |
LIABILITIES | |||
Policyholders’ account balances | 47,666 | 47,171 | |
Future policy benefits and other policyholders’ liabilities | 29,586 | 30,299 | |
Broker-dealer related payables | 466 | 783 | |
Securities sold under agreements to repurchase | 1,904 | 1,887 | |
Customers related payables | 2,549 | 2,229 | |
Amounts due to reinsurers | 1,396 | 1,436 | |
Short-term and Long-term debt | [1] | 2,373 | 2,408 |
Loans from affiliates | 2,530 | 3,622 | |
Other liabilities | [1] | 4,342 | 4,053 |
Separate Accounts liabilities | 121,858 | 124,552 | |
Total liabilities | 214,670 | 218,440 | |
Redeemable noncontrolling interest | [1] | 1,024 | 626 |
Commitments and contingent liabilities (Note 14) | |||
Equity attributable to Holdings: | |||
Common stock, $0.01 par value, 2,000,000,000 shares authorized and 561,000,000 issued and outstanding | 6 | 6 | |
Capital in excess of par value | 2,050 | 1,298 | |
Retained earnings | 12,455 | 12,289 | |
Accumulated other comprehensive income (loss) | (946) | (108) | |
Total equity attributable to Holdings | 13,565 | 13,485 | |
Noncontrolling interest | 3,035 | 3,097 | |
Total equity | 16,600 | 16,582 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 232,294 | $ 235,648 | |
[1] | See Note 2 for details of balances with variable interest entities. |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fixed maturities available for sale, amortized cost | $ 43,268 | |
Mortgage loans on real estate, valuation allowances | $ 7 | $ 8 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock issued (in shares) | 561,000,000 | 561,000,000 |
Common stock outstanding (in shares) | 561,000,000 | 561,000,000 |
Fixed Maturities | ||
Fixed maturities available for sale, amortized cost | $ 43,268 | $ 45,068 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
REVENUES | ||
Policy charges and fee income | $ 972 | $ 956 |
Premiums | 279 | 281 |
Net derivative investment gains (loss) | (281) | (235) |
Net investment income (loss) | 591 | 780 |
Investment gains (losses), net: | ||
Total other-than-temporary impairment losses | 0 | (1) |
Other investment gains (losses), net | 102 | (23) |
Total investment gains (losses), net | 102 | (24) |
Investment management and service fees | 1,055 | 954 |
Other income | 117 | 118 |
Total revenues | 2,835 | 2,830 |
BENEFITS AND OTHER DEDUCTIONS | ||
Policyholders’ benefits | 608 | 1,093 |
Interest credited to policyholders’ account balances | 271 | 246 |
Compensation and benefits (includes $40 and $41 of deferred acquisition costs) | 620 | 539 |
Commissions and distribution related payments (includes $120 and $132 of deferred acquisition costs) | 411 | 395 |
Interest expense | 46 | 35 |
Amortization of deferred policy acquisition costs, net (net of capitalization of $160 and $173) | 15 | (55) |
Other operating costs and expenses | 494 | 744 |
Total benefits and other deductions | 2,465 | 2,997 |
Income (loss) from continuing operations, before income taxes | 370 | (167) |
Income tax (expense) benefit | (79) | (30) |
Net income (loss) | 291 | (197) |
Less: net (income) loss attributable to the noncontrolling interest | (123) | (93) |
Net income (loss) attributable to Holdings | $ 168 | $ (290) |
Earnings per share - Common stock | ||
Basic (in dollars per share) | $ 0.30 | $ (0.52) |
Diluted (in dollars per share) | $ 0.30 | $ (0.52) |
Weighted average common shares outstanding (in shares) | 561 | 561 |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Compensation and benefits | ||
Deferred acquisition costs | $ 40 | $ 41 |
Commissions and distribution related payments | ||
Deferred acquisition costs | 120 | 132 |
Amortization of deferred poilicy acquisition costs, net | ||
Deferred policy acquisition costs | $ 160 | $ 173 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 291 | $ (197) |
Other comprehensive income (loss) net of income taxes: | ||
Foreign currency translation adjustment | (5) | 8 |
Change in unrealized gains (losses), net of reclassification adjustment | (960) | 104 |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 133 | 25 |
Total other comprehensive income (loss), net of income taxes | (832) | 137 |
Comprehensive income (loss) | (541) | (60) |
Less: Comprehensive (income) loss attributable to noncontrolling interest | (129) | (100) |
Comprehensive income (loss) attributable to Holdings | $ (670) | $ (160) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Parent | Common Stock | Additional Paid-in Capital | Retained Earnings | Other comprehensive income (loss) attributable to Holdings | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Impact of adoption of revenue recognition standard ASC 606 | $ 0 | $ 0 | |||||
Common stock, at par value, beginning of year at Dec. 31, 2016 | $ 6 | ||||||
Beginning of year at Dec. 31, 2016 | $ 931 | 11,439 | $ (921) | 3,142 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital contribution from parent | 0 | ||||||
Other changes | 11 | (13) | |||||
Net income (loss) | $ (290) | (290) | |||||
Stockholder dividends | 0 | ||||||
Other comprehensive income (loss) | 137 | 130 | 7 | ||||
Repurchase of AB Holding units | 0 | ||||||
Net income (loss) attributable to noncontrolling interest | 77 | ||||||
Dividends paid to noncontrolling interest | 108 | ||||||
Common stock, at par value, end of year at Mar. 31, 2017 | 6 | ||||||
End of year at Mar. 31, 2017 | 14,411 | $ 11,306 | 942 | 11,149 | (791) | 3,105 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Impact of adoption of revenue recognition standard ASC 606 | 13 | 19 | |||||
Common stock, at par value, beginning of year at Dec. 31, 2017 | 6 | 6 | |||||
Beginning of year at Dec. 31, 2017 | 16,582 | 1,298 | 12,289 | (108) | 3,097 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital contribution from parent | 695 | ||||||
Other changes | 57 | (54) | |||||
Net income (loss) | 168 | 168 | |||||
Stockholder dividends | (15) | ||||||
Other comprehensive income (loss) | (832) | (838) | 6 | ||||
Repurchase of AB Holding units | 1 | ||||||
Net income (loss) attributable to noncontrolling interest | 103 | ||||||
Dividends paid to noncontrolling interest | 135 | ||||||
Common stock, at par value, end of year at Mar. 31, 2018 | 6 | $ 6 | |||||
End of year at Mar. 31, 2018 | $ 16,600 | $ 13,565 | $ 2,050 | $ 12,455 | $ (946) | $ 3,035 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Statement of Cash Flows [Abstract] | |||
Net income (loss) | $ 291 | $ (197) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Interest credited to policyholders’ account balances | 271 | 246 | |
Policy charges and fee income | (972) | (956) | |
Realized and unrealized gains (losses) on trading securities | 120 | (91) | |
Net derivative (gains) losses | 281 | 235 | |
Investment (gains) losses, net | (102) | 24 | |
Non-cash pension restructuring | 102 | 0 | |
Amortization of deferred compensation | 12 | 8 | |
Amortization of deferred sales commission | 7 | 9 | |
Other depreciation and amortization | (20) | (42) | |
Amortization of deferred cost of reinsurance asset | 5 | 5 | |
Change in goodwill | 0 | 369 | |
Distribution from joint ventures and limited partnerships | 25 | 26 | |
Changes in: | |||
Net broker-dealer and customer related receivables/payables | 283 | 297 | |
Reinsurance recoverable | 32 | 27 | |
Segregated cash and securities, net | (208) | (310) | |
Deferred policy acquisition costs | 15 | (55) | |
Future policy benefits | (254) | 296 | |
Current and deferred income taxes | 103 | 252 | |
Other, net | (255) | (71) | |
Net cash provided by (used in) operating activities | (264) | 72 | |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available for sale | 4,288 | 1,033 | |
Mortgage loans on real estate | 68 | 209 | |
Trading account securities | 1,629 | 2,844 | |
Other | 54 | 56 | |
Payment for the purchase/origination of: | |||
Fixed maturities, available for sale | (3,245) | (1,428) | |
Mortgage loans on real estate | (447) | (632) | |
Trading account securities | (2,613) | (3,928) | |
Other | (48) | (28) | |
Cash settlements related to derivative instruments | (54) | (1,400) | |
Decrease in loans to affiliates | 346 | 12 | |
Change in short-term investments | 876 | 573 | |
Investment in capitalized software, leasehold improvements and EDP equipment | (24) | (19) | |
Other, net | (371) | (191) | |
Net cash provided by (used in) investing activities | 459 | (2,899) | |
Policyholders’ account balances: | |||
Deposits | 2,532 | 2,790 | |
Withdrawals | (1,384) | (1,342) | |
Transfer (to) from Separate Accounts | (102) | 186 | |
Change in short-term financings | 167 | 95 | |
Repayment of loans from affiliates | 0 | (56) | |
Proceeds from loans from affiliates | 0 | 109 | |
Change in collateralized pledged assets | 17 | 347 | |
Change in collateralized pledged liabilities | 56 | 967 | |
(Decrease) increase in overdrafts payable | 7 | 50 | |
Cash Contribution from Parent | 8 | 0 | |
Shareholder dividend paid | (15) | 0 | |
Repurchase of AB Holding units | (1) | (31) | |
Redemptions of non-controlling interests of consolidated VIEs, net | 373 | (3) | |
Distribution to noncontrolling interests in consolidated subsidiaries | (135) | (112) | |
Increase (decrease) in Securities sold under agreement to repurchase | 17 | (370) | |
Increase (decrease) in loans from affiliates | (470) | 0 | |
Other, net | 4 | 0 | |
Net cash provided by (used in) financing activities | 1,074 | 2,630 | |
Effect of exchange rate changes on cash and cash equivalents | 8 | 8 | |
Change in cash and cash equivalents | 1,277 | (189) | |
Cash and cash equivalents, beginning of year | 4,814 | [1] | 5,654 |
Cash and Cash Equivalents, End of Period | 6,091 | [1] | 5,465 |
Non-cash transactions during the Period | |||
Capital contribution from Parent | 630 | 0 | |
Repayment of Loans from affiliates | (622) | 0 | |
Contribution of 0.5% minority interest in AXF | 65 | 0 | |
Repayment of long-term debt | $ 202 | $ 0 | |
[1] | See Note 2 for details of balances with variable interest entities. |
CONSOLIDATED STATEMENTS OF CAS9
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) | Mar. 31, 2018 |
AXF | |
Minority interest in AXF (as a percent) | 0.50% |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Business AXA Equitable Holdings, Inc. (“Holdings” and, collectively with its consolidated subsidiaries, the “Company”) is the holding company for a diversified financial services organization. In May 2017, AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management, announced its intention to pursue the sale of a minority stake in Holdings through an initial public offering (the “IPO”). On May 14, 2018 , Holdings completed the IPO in which AXA sold 157,837,500 shares of Holdings common stock to the public. Following the IPO, AXA owns approximately 71.9% of the outstanding common stock of Holdings. The Company conducts operations in four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. The Company’s management evaluates the performance of each of these segments independently. • The Individual Retirement segment offers a diverse suite of variable annuity products which are primarily sold to affluent and high net worth individuals saving for retirement or seeking retirement income. • The Group Retirement segment offers tax-deferred investment and retirement plans sponsored by educational entities, municipalities and not-for-profit entities as well as small and medium-sized businesses. • The Investment Management and Research segment provides diversified investment management, research and related solutions globally to a broad range of clients through three main client channels—Institutional, Retail and Private Wealth Management—and distributes its institutional research products and solutions through Bernstein Research Services. The Investment Management and Research segment reflects the business of AllianceBernstein Holding L.P. (“AB Holding”), AllianceBernstein L.P. (“ABLP”) and their subsidiaries (collectively, “AB”). • The Protection Solutions segment includes the Company’s life insurance and group employee benefits businesses. The life insurance business offers a variety of variable universal life, indexed universal life and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with their wealth protection, wealth transfer and corporate needs. Our group employee benefits business offers a suite of life, short- and long-term disability, dental and vision insurance products to small and medium-size businesses across the United States. The Company reports certain activities and items that are not included in our segments in Corporate and Other. Corporate and Other includes certain of our financing and investment expenses. It also includes: the AXA Advisors broker-dealer business, closed block of life insurance (the “Closed Block”), run-off variable annuity reinsurance business, run-off group pension business, run-off health business, benefit plans for our employees, certain strategic investments and certain unallocated items, including capital and related investments, interest expense and corporate expense. AB’s results of operations are reflected in the Investment Management and Research segment. Accordingly, Corporate and Other does not include any items applicable to AB. At March 31, 2018 and March 31, 2017 , the Company’s economic interest in AB was 46.5 % and 45.8% , respectively. At March 31, 2018 and March 31, 2017 , respectively, AXA and its subsidiaries’ economic interest in AB was 64.4% and 63.8% . In March 2018, AXA contributed the 0.5% minority interest in AXA Financial, Inc. (“AXA Financial”) to Holdings so that Holdings now owns 100% of AXA Financial. On April 23, 2018, Holdings entered into a Purchase Agreement (the “Purchase Agreement”) with Coliseum Reinsurance Company (“Coliseum”), an affiliate, relating to the purchase and sale of all of the units of limited partnership of ABLP (the “AB Units”) owned by Coliseum. Pursuant to the Purchase Agreement, Holdings purchased from Coliseum 8,160,000 AB Units owned by Coliseum at a purchase price of $26.54 per AB Unit. On April 23, 2018, Holdings entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with AXA Investment Managers S.A., an affiliate, relating to the purchase and sale of all of the issued and outstanding shares of common stock of AXA-IM Holding U.S., Inc. As a result of the transactions contemplated by the Stock Purchase Agreement, Holdings acquired beneficial ownership to the 41,934,582 AB Units owned by AXA-IM Holding U.S., Inc. As a result of these transactions, at April 30, 2018, the Company’s economic interest in AB was approximately 65.0% . The general partner of AB, AllianceBernstein Corporation (the “General Partner”), is a wholly-owned subsidiary of the Company. Because the General Partner has the authority to manage and control the business of AB, AB is consolidated in the Company’s financial statements. See Note 18 to the Notes to Consolidated Financial Statements for additional information on these subsequent events. Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The terms “ first quarter 2018 ” and “ first quarter 2017 ” refer to the three months ended March 31, 2018 and 2017 , respectively. The terms “ first three months of 2018 ” and “ first three months of 2017 ” refer to the three months ended March 31, 2018 and 2017 , respectively. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Adoption of New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance that revises the recognition criteria for revenue arising from contracts with customers to provide goods or services, except when those revenue streams are from insurance and investment contracts, leases, rights and obligations that are in the scope of certain financial instruments (i.e., derivative contracts) and guarantees other than product or service warranties, for which existing revenue recognition requirements are not superseded by this guidance. On January 1, 2018, the Company adopted the new revenue recognition guidance on a modified retrospective basis and is providing in its first quarter 2018 reporting the additional disclosures required by the new standard. Adoption of this new guidance did not change the amounts or timing of the Company’s revenue recognition for base investment management and advisory fees, distribution revenues, shareholder servicing revenues, and broker-dealer revenues. However, some performance-based fees and carried-interest distributions that prior to adoption were recognized when no risk of reversal remained, in certain instances under the new standard may be recognized earlier if it is probable that significant reversal will not occur. As a result, on January 1, 2018, the Company recognized a cumulative effect adjustment, net of tax, to increase opening equity attributable to Holdings and the noncontrolling interest by approximately $13 million and $19 million , respectively, reflecting the impact of carried-interest distributions previously received by AB of approximately $78 million , net of revenue sharing payments to investment team members of approximately $43 million , for which it is probable that significant reversal will not occur and for which incremental tax is provided at Holdings. In January 2016, the FASB issued new guidance related to the recognition and measurement of financial assets and financial liabilities. The new guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale (“AFS”) debt securities. The new guidance requires equity investments in unconsolidated entities, except those accounted for under the equity method, to be measured at fair value through earnings, thereby eliminating the AFS classification for equity securities with readily determinable fair values for which changes in fair value currently are reported in Accumulated Other Comprehensive Income (Loss) (“AOCI”). On January 1, 2018, the Company adopted the new recognition requirements on a modified retrospective basis for changes in the fair value of AFS equity securities, resulting in no material reclassification adjustment from AOCI to opening retained earnings for the net unrealized gains, net of tax, related to approximately $46 million common stock securities and eliminated their designation as AFS equity securities. The new guidance does not apply to FHLB common stock and prohibits such investments from being classified as equity securities subject to the new guidance. Accordingly, the Company has classified its investment in the FHLB common stock as other invested assets at March 31, 2018. The Company’s investment assets held in the form of equity interests in unconsolidated entities, such as limited partnerships and limited liability companies, including hedge funds, private equity funds, and real estate-related funds, generally are accounted for under the equity method and were not impacted by this new guidance. The Company does not currently report any of its financial liabilities under the fair value option. In March 2017, the FASB issued new guidance on the presentation of net periodic pension and post-retirement benefit costs that requires retrospective disaggregation of the service cost component from the other components of net benefit costs on the income statement. The service cost component is required to be presented with other employee compensation costs in “income from operations,” and the remaining components are to be reported separately outside of income from operations. While this standard did not change how net periodic pension and post-retirement benefit costs are measured, it limits the amount eligible for capitalization on a prospective basis to the service cost component. On January 1, 2018, the Company adopted the change in the income statement presentation utilizing the practical expedient for determining the historical components of net benefit costs, resulting in no material impact to the consolidated financial statements. In addition, no changes to the Company’s capitalization policies with respect to benefit costs resulted from the adoption of the new guidance. In May 2017, the FASB issued guidance on share-based payments. The amendment provides clarity intended to reduce diversity in practice and the cost and complexity of accounting for changes to the terms or conditions of share-based payment awards. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and requires prospective application to awards modified on or after the date of adoption. Adoption of this amendment on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued new guidance to simplify elements of cash flow classification. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and requires application of a retrospective transition method. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Future Adoption of New Accounting Pronouncements In February 2018, the FASB issued new guidance that will permit, but not require, entities to reclassify to retained earnings tax effects “stranded” in AOCI resulting from the change in federal tax rate enacted by the Tax Cuts and Jobs Act (the “Tax Reform Act”) on December 22, 2017. An entity that elects this option must reclassify these stranded tax effects for all items in AOCI, including, but not limited to, AFS securities and employee benefits. Tax effects stranded in AOCI for other reasons, such as prior changes in tax law, may not be reclassified. While the new guidance provides entities the option to reclassify these amounts, new disclosures are required regardless of whether entities elect to do so. The new guidance is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. Election can be made either to apply the new guidance retrospectively to each period in which the effect of the Tax Reform Act is recognized or in the period of adoption. Management currently is evaluating the options provided for adopting this guidance and the potential impacts on the Company’s consolidated financial statements. In August 2017, the FASB issued new guidance on accounting for hedging activities, intended to more closely align the financial statement reporting of hedging relationships to the economic results of an entity’s risk management activities. In addition, the new guidance makes certain targeted modifications to simplify the application of current hedge accounting guidance. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early application permitted. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption (that is, the initial application date). All transition requirements and elections should be applied to derivatives positions and hedging relationships existing on the date of adoption. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In March 2017, the FASB issued guidance that requires certain premiums on callable debt securities to be amortized to the earliest call date and is intended to better align interest income recognition with the manner in which market participants price these instruments. The new guidance is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted and is to be applied on a modified retrospective basis. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In June 2016, the FASB issued new guidance related to the accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new guidance is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for annual periods beginning after December 15, 2018. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In February 2016, the FASB issued revised guidance to lease accounting that will require lessees to recognize on the balance sheet a “right-of-use” asset and a lease liability for virtually all lease arrangements, including those embedded in other contracts. The new lease accounting model will continue to distinguish between capital and operating leases. The current straight-line pattern for the recognition of rent expense on an operating lease is expected to remain substantially unchanged by the new guidance but instead will be comprised of amortization of the right-of-use asset and interest cost on the related lease obligation, thereby resulting in an income statement presentation similar to a financing arrangement or capital lease. Lessor accounting will remain substantially unchanged from the current model but has been updated to align with certain changes made to the lessee model. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The transition provisions require application on a modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements (that is, January 1, 2017). Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing lease contracts and arrangements. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Revenue Recognition Investment Management and Service Fees and Related Expenses Reported as Investment management and service fees in the Company’s consolidated statements of income (loss) are investment advisory and service fees, distribution revenues, and institutional research services revenues principally emerging from the Investment Management and Research segment. Also included are investment management and administrative service fees earned by AXA Equitable Funds Management Group, LLC (“AXA Equitable FMG”) and reported in the Retirement and Protection segments as well as certain asset-based fees associated with insurance contracts. Investment management, advisory, and service fees AB provides asset management services by managing customer assets and seeking to deliver returns to investors. Similarly, AXA Equitable FMG provides investment management and administrative services, such as fund accounting and compliance services, to AXA Premier VIP Trust (“VIP Trust”), EQ Advisors Trust (“EQAT”) and 1290 Funds as well as two private investment trusts established in the Cayman Islands, AXA Allocation Funds Trust and AXA Offshore Multimanager Funds Trust (collectively, the “Other AXA Trusts”). The contracts supporting these revenue streams create a distinct, separately identifiable performance obligation for each day the assets are managed for the performance of a series of services that are substantially the same and have the same pattern of transfer to the customer. Accordingly, these investment management, advisory, and administrative service base fees are recorded over time as services are performed and entitle the Company to variable consideration. Base fees, generally calculated as a percentage of assets under management (“AUM”), are recognized as revenue at month-end when the transaction price no longer is variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur. Certain investment advisory contracts of AB, including those associated with hedge funds or other alternative investments, provide for a performance-based fee (including carried interest), in addition to a base advisory fee, calculated either as a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. These performance-based fees are forms of variable consideration and, therefore, are excluded from the transaction price until it becomes probable there will not be significant reversal of the cumulative revenue recognized. At each reporting date, the Company evaluates constraining factors surrounding the variable consideration to determine the extent to which, if any, revenues associated with the performance-based fee can be recognized. Constraining factors impacting the amount of variable consideration included in the transaction price include contractual claw-back provisions, the length of time of the uncertainty, the number and range of possible amounts, the probability of significant fluctuations in fund’s market value, and the level in which the fund’s value exceeds the contractual threshold required to earn such a fee and the materiality of the amount being evaluated. Prior to adoption of the new revenue recognition guidance on January 1, 2018, the Company recognized performance-based fees at the end of the applicable measurement period when no risk of reversal remained, and carried-interest distributions received as deferred revenues until no risk of reversal remained. Sub-advisory and sub-administrative expenses associated with these services are calculated and recorded as the related services are performed in Other operating costs and expense in the consolidated statements of income (loss) as the Company is acting in a principal capacity in these transactions and, as such, reflects these revenues and expenses on a gross basis. Research services Research services revenue principally consists of brokerage transaction charges received by Sanford C. Bernstein & Co. LLC (“SCB LLC”) and Sanford C. Bernstein Limited (“SCBL”) for providing equity research services to institutional clients. Brokerage commissions for trade execution services and related expenses are recorded on a trade-date basis when the performance obligations are satisfied. Generally, the transaction price is agreed upon at the point of each trade and based upon the number of shares traded or the value of the consideration traded. Research revenues are recognized when the transaction price is quantified, collectability is assured, and significant reversal of such revenue is not probable. Distribution services Revenues from distribution services include fees received as partial reimbursement of expenses incurred in connection with the sale of certain AB sponsored mutual funds and the 1290 Funds and for the distribution primarily of EQAT and VIP Trust shares to separate accounts in connection with the sale of variable life and annuity contracts. The amount and timing of revenues recognized from performance of these distribution services often is dependent upon the contractual arrangements with the customer and the specific product sold as further described below. Most open-end management investment companies, such as U.S. funds and the EQAT and VIP Trusts and the 1290 Funds, have adopted a plan under Rule 12b-1 of the Investment Company Act that allows for certain share classes to pay out of assets, distribution and service fees for the distribution and sale of its shares (“12b-1 Fees”). These open-end management investment companies have such agreements with the Company, and the Company has selling and distribution agreements pursuant to which it pays sales commissions to the financial intermediaries that distribute the shares. These agreements may be terminated by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of shares. The Company records 12b-1 fees monthly based upon a percentage of the net asset value (“NAV”) of the funds. At month-end, the variable consideration of the transaction price is no longer constrained as the NAV can be calculated and the value of consideration is determined. These services are separate and distinct from other asset management services as the customer can benefit from these services independently of other services. The Company accrues the corresponding 12b-1 fees paid to sub-distributors monthly as the expenses are incurred. The Company is acting in a principal capacity in these transactions; as such, these revenues and expenses are recorded on a gross basis in the consolidated statements of income (loss). AB sponsored mutual funds offer back-end load shares in limited instances and charge the investor a contingent deferred sales charge (“CDSC”) if the investment is redeemed within a certain period. The variable consideration for these contracts is contingent upon the timing of the redemption by the investor and the value of the sales proceeds. Due to these constraining factors, the Company excludes the CDSC fee from the transaction price until the investor redeems the investment. Upon redemption, the cash consideration received for these contractual arrangements is recorded as a reduction of unamortized deferred sales commissions. AB’s Luxembourg subsidiary, the management company for most of its non-U.S. funds, earns a management fee which is accrued daily and paid monthly, at an annual rate, based on the average daily net assets of the fund. With respect to certain share classes, the management fee also may contain a component paid to distributors and other financial intermediaries and service providers to cover shareholder servicing and other administrative expenses (also referred to as an “All-in-Fee”). Based on the conclusion that asset management is distinct from distribution, the Company allocates a portion of the investment and advisory fee to distribution revenues for the servicing component based on standalone selling prices. Other revenues Also reported as Investment management and service fees in the Company’s consolidated statements of income (loss) are other revenues from contracts with customers, primarily consisting of shareholder servicing fees, mutual fund reimbursements, and other brokerage income. Shareholder services, including transfer agency, administration, and record-keeping are provided by AB to company-sponsored mutual funds. The consideration for these services is based on a percentage of the NAV of the fund or a fixed-fee based on the number of shareholder accounts being serviced. The revenues are recorded at month-end when the constraining factors involved with determining NAV or the numbers of shareholders’ accounts are resolved. Other income Revenues from contracts with customers reported as Other income in the Company’s consolidated statements of income (loss) primarily consist of advisory account fees and brokerage commissions from the Company’s subsidiary broker-dealer operations and sales commissions from the Company’s general agent for the distribution of non-affiliate insurers’ life insurance and annuity products. These revenues are recognized at month-end when constraining factors, such as AUM and product mix, are resolved and the transaction pricing no longer is variable such that the value of consideration can be determined. Contract assets and liabilities The Company applies the practical expedient for contracts that have an original duration of one year or less. Accordingly, the Company accrues the incremental costs of obtaining a contract when incurred and does not consider the time value of money. At March 31, 2018, there are no material balances of contract assets and contract liabilities; as such, no further disclosures are necessary. Accounting and Consolidation of VIEs A VIE must be consolidated by its primary beneficiary, which generally is defined as the party that has a controlling financial interest in the VIE. The Company is deemed to have a controlling financial interest in a VIE if it has (i) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE or the right to receive income from the VIE that potentially could be significant to the VIE. For purposes of evaluating (ii) above, fees paid to the Company as a decision maker or service provider are excluded if the fees are compensation for services provided commensurate with the level of effort required to be performed and the arrangement includes only customary terms, conditions or amounts present in arrangements for similar services negotiated at arm’s length. If the Company has a variable interest in an entity that is determined not to be a VIE, the entity then is evaluated for consolidation under the voting interest entity (“VOE”) model. For limited partnerships and similar entities, the Company is deemed to have a controlling financial interest in a VOE, and would be required to consolidate the entity, if the Company owns a majority of the entity’s kick-out rights through voting limited partnership interests and other limited partners do not hold substantive participating rights (or other rights that would indicate that the Company does not control the entity). For entities other than limited partnerships, the Company is deemed to have a controlling financial interest in a VOE if it owns a majority voting interest in the entity. The analysis performed to identify variable interests held, determine whether entities are VIEs or VOEs, and evaluate whether the Company has a controlling financial interest in such entities requires the exercise of judgment and is updated on a continuous basis as circumstances change or new entities are developed. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, including consideration of economic interests in the VIE held directly and indirectly through related parties and entities under common control, as well as quantitatively, as appropriate. At March 31, 2018 , the Company held approximately $1,137 million of investment assets in the form of equity interests issued by non-corporate legal entities determined under the new guidance to be VIEs, such as limited partnerships and limited liability companies, including hedge funds, private equity funds, and real estate-related funds. As an equity investor, the Company is considered to have a variable interest in each of these VIEs as a result of its participation in the risks and/or rewards these funds were designed to create by their defined portfolio objectives and strategies. Primarily through qualitative assessment, including consideration of related party interests or other financial arrangements, if any, the Company was not identified as primary beneficiary of any of these VIEs, largely due to its inability to direct the activities that most significantly impact their economic performance. Consequently, the Company continues to reflect these equity interests in the consolidated balance sheet as Other equity investments and to apply the equity method of accounting for these positions. The net assets of these non-consolidated VIEs are approximately $163,434 million , and the Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $1,137 million at March 31, 2018 . Except for approximately $798 million of unfunded commitments at March 31, 2018 , the Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. At March 31, 2018 , the Company consolidated one real estate joint venture for which it was identified as primary beneficiary under the VIE model. The consolidated entity is jointly owned by AXA Equitable Life Insurance Company (“AXA Equitable Life”) and AXA France and holds an investment in a real estate venture. Included in the Company’s consolidated balance sheet at March 31, 2018 , are total assets of $36 million related to this VIE, primarily resulting from the consolidated presentation of $36 million of real estate held for production of income. In addition, real estate held for production of income reflects $16 million as related to two non-consolidated joint ventures at March 31, 2018 . Included in the Company’s consolidated balance sheet at March 31, 2018 are assets of $2,447 million , liabilities of $1,219 million and redeemable non-controlling interest of $982 million associated with the consolidation of AB-sponsored investment funds under the VIE model. Also included in the Company’s consolidated balance sheets are assets of $135 million , liabilities of $4 million and redeemable non-controlling interest of $10 million from consolidation of AB-sponsored investment funds under the VOE model. The assets of these consolidated funds are presented within Other invested assets and cash and cash equivalents, and liabilities of these consolidated funds are presented with other liabilities on the face of the Company’s consolidated balance sheet at March 31, 2018 ; ownership interests not held by the Company relating to consolidated VIEs and VOEs are presented either as redeemable or non-redeemable noncontrolling interest, as appropriate. The Company is not required to provide financial support to these company-sponsored investment funds, and only the assets of such funds are available to settle each fund’s own liabilities. As of March 31, 2018 , the net assets of investment products sponsored by AB that are nonconsolidated VIEs are approximately $83.9 billion and the Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $8 million at March 31, 2018 . The Company has no further commitments to or economic interest in these VIEs. Impact of the Tax Reform Act On December 22, 2017, President Trump signed into law the Tax Reform Act, a broad overhaul of the U.S. Internal Revenue Code that changes long-standing provisions governing the taxation of U.S. corporations, including life insurance companies. The Tax Reform Act reduces the federal corporate income tax rate to 21% beginning in 2018 and repeals the corporate alternative minimum tax (“AMT”) while keeping existing AMT credits. It also includes changes to the dividends received deduction (“DRD”), insurance reserves and tax DAC, and measures affecting our international operations, such as a one-time transitional tax on some of the accumulated earnings of our foreign subsidiaries (within our Investment Management and Research segment). As a result of the Tax Reform Act, our new effective tax rate is expected to be approximately 19% , driven mainly by the new federal corporate tax rate of 21% and the DRD benefit. We expect the Tax Reform Act to have both positive and negative impacts on our consolidated balance sheet. On the one hand, as a one-time effect, the lower tax rate resulted in a reduction to the value of our deferred tax assets. On the other hand, the Tax Reform Act repeals the corporate AMT and, subject to certain limitations, allows us to use our AMT credits going forward, which will result in a reduction of our tax liability. We expect the tax liability on the earnings of our foreign subsidiaries will decrease going forward. In 2017, we recorded a one-time estimated decrease to net income of $23 million due to the estimated transitional tax on some of the accumulated earnings of these subsidiaries. Overall, we expect the Tax Reform Act to have a net positive economic impact on us. At December 31, 2017, we recorded a provisional estimate of the income tax effects related to Tax Reform. During the period ended March 31, 2018, we have not recorded any changes to this estimate. We continue to evaluate this new and complicated piece of legislation, assess the magnitude of the various impacts and monitor potential regulatory changes related to this reform. Assumption Updates and Model Changes There were no assumption changes in the first quarters of 2018 or 2017. Revision of Prior Period Financial Statements During the first quarter of 2018, management identified an error in its previously issued financial statements related to a misclassification between interest credited and net derivative gains/losses. The impact of this error to the consolidated financial statements for the six months ended June 30, 2017, nine months ended September 30, 2017 and the years ended December 31, 2017 and 2016 was not considered to be material. In order to improve the consistency and comparability of the financial statements, management revised the consolidated statements of income (loss) and statements of cash flows to include the revisions discussed herein. See Note 17 to the Notes to Consolidated Financial Statements for details of the revisions. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS Fixed Maturities The following table provides information relating to fixed maturities securities classified as AFS: Available-for-Sale Securities by Classification Amortized Gross Unrealized Gross Unrealized Fair OTTI (3) (in millions) March 31, 2018: Fixed Maturity Securities: Public corporate $ 18,513 $ 501 $ 298 $ 18,716 $ — Private corporate 7,394 117 107 7,404 — U.S. Treasury, government and agency 14,772 387 506 14,653 — States and political subdivisions 422 56 1 477 — Foreign governments 405 23 9 419 — Residential mortgage-backed (1) 614 16 3 627 — Asset-backed (2) 675 4 4 675 2 Redeemable preferred stock 473 44 4 513 — Total at March 31, 2018 $ 43,268 $ 1,148 $ 932 $ 43,484 $ 2 As a result of the adoption of the Recognition and Measurement of Financial Assets and Financial Liabilities standard on January 1, 2018 (Financial Instruments Recognition and Measurement Standard), equity securities are no longer classified and accounted for as available for sale securities. Amortized Gross Unrealized Gross Unrealized Fair OTTI (3) (in millions) December 31, 2017: Fixed Maturity Securities: Public corporate $ 17,181 $ 806 $ 33 $ 17,954 $ — Private corporate 7,299 225 32 7,492 — U.S. Treasury, government and agency 17,759 1,000 251 18,508 — States and political subdivisions 422 67 — 489 — Foreign governments 395 29 5 419 — Residential mortgage-backed (1) 797 22 1 818 — Asset-backed (2) 745 5 1 749 2 Redeemable preferred stock 470 43 1 512 — Total Fixed Maturities 45,068 2,197 324 46,941 2 Equity securities 188 2 — 190 — Total at December 31, 2017 $ 45,256 $ 2,199 $ 324 $ 47,131 $ 2 (1) Includes publicly traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (3) Amounts represent OTTI losses in AOCI, which were not included in income (loss) in accordance with current accounting guidance. The contractual maturities of AFS fixed maturities at March 31, 2018 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Fixed Maturities Contractual Maturities at March 31, 2018 Amortized Cost Fair Value (in millions) Due in one year or less $ 2,499 $ 2,517 Due in years two through five 8,727 8,862 Due in years six through ten 13,290 13,114 Due after ten years 16,990 17,176 Subtotal 41,506 41,669 Residential mortgage-backed securities 614 627 Asset-backed securities 675 675 Redeemable preferred stock 473 513 Total $ 43,268 $ 43,484 The following table shows proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities during the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 2017 (in millions) Proceeds from sales $ 3,880 $ 440 Gross gains on sales $ 155 $ 25 Gross losses on sales $ (52 ) $ (23 ) Total OTTI $ — $ — Non-credit losses recognized in OCI — — Credit losses recognized in net income (loss) $ — $ — The following table sets forth the amount of credit loss impairments on fixed maturity securities held by the Company at the dates indicated and the corresponding changes in such amounts: Fixed Maturities - Credit Loss Impairments Three Months Ended March 31, 2018 2017 (in millions) Balances, beginning of period $ (18 ) $ (239 ) Previously recognized impairments on securities that matured, paid, prepaid or sold — 55 Recognized impairments on securities impaired to fair value this period (1) — — Impairments recognized this period on securities not previously impaired — — Additional impairments this period on securities previously impaired — — Increases due to passage of time on previously recorded credit losses — — Accretion of previously recognized impairments due to increases in expected cash flows — — Balances at March 31, $ (18 ) $ (184 ) (1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. Net unrealized investment gains (losses) on fixed maturities and equity securities classified as AFS are included in the consolidated balance sheets as a component of AOCI. The table below presents these amounts as of the dates indicated: March 31, December 31, 2017 (in millions) AFS Securities: Fixed maturities: With OTTI loss $ — $ 2 All other 216 1,871 Equity securities — 2 Net Unrealized Gains (Losses) $ 216 $ 1,875 As a result of the adoption of the Recognition and Measurement of Financial Assets and Financial Liabilities standard on January 1, 2018 (Financial Instruments Recognition and Measurement Standard), equity securities are no longer classified and accounted for as available for sale securities. Changes in net unrealized investment gains (losses) recognized in AOCI include reclassification adjustments to reflect amounts realized in Net income (loss) for the current period that had been part of OCI in earlier periods. The tables that follow below present a rollforward of net unrealized investment gains (losses) recognized in AOCI, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized and all other: Net Unrealized Gains (Losses) on Fixed Maturities with OTTI Losses Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balance, January 1, 2018 $ 2 $ — $ (1 ) $ (7 ) $ (6 ) Net investment gains (losses) arising during the period — — — — — Reclassification adjustment for OTTI losses: Included in Net income (loss) (2 ) — — — (2 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — — — — — Deferred income taxes — — — 7 7 Policyholders’ liabilities — — 1 — 1 Balance, March 31, 2018 $ — $ — $ — $ — $ — Balance, January 1, 2017 $ 19 $ 1 $ (10 ) $ (4 ) $ 6 Net investment gains (losses) arising during the period 63 — — — 63 Reclassification adjustment for OTTI losses: Included in Net income (loss) (65 ) — — — (65 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (4 ) — — (4 ) Deferred income taxes — — — — — Policyholders’ liabilities — — 6 — 6 Balance, March 31, 2017 $ 17 $ (3 ) $ (4 ) $ (4 ) $ 6 (1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in income (loss) for securities with no prior OTTI loss. All Other Net Unrealized Investment Gains (Losses) In AOCI Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balance, January 1, 2018 $ 1,871 $ (358 ) $ (238 ) $ (383 ) $ 892 Net investment gains (losses) arising during the period (109 ) — — — (109 ) Reclassification adjustment for OTTI losses: Included in Net income (loss) (1,546 ) — — — (1,546 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 341 — — 341 Deferred income taxes — — — 239 239 Policyholders’ liabilities — — 110 — 110 Balance, March 31, 2018 $ 216 $ (17 ) $ (128 ) $ (144 ) $ (73 ) Balance, January 1, 2017 $ 528 $ (45 ) $ (192 ) $ (95 ) $ 196 Net investment gains (losses) arising during the period 176 — — — 176 Reclassification adjustment for OTTI losses: Included in Net income (loss) 29 — — — 29 Excluded from Net income (loss) (1) — — — — Impact of net unrealized investment gains (losses) on: DAC — (68 ) — — (68 ) Deferred income taxes — — — (60 ) (60 ) Policyholders’ liabilities — — 14 — 14 Balance, March 31, 2017 $ 733 $ (113 ) $ (178 ) $ (155 ) $ 287 (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in income (loss) for securities with no prior OTTI loss. The following tables disclose the fair values and gross unrealized losses of the 1,411 issues at March 31, 2018 and the 752 issues at December 31, 2017 of fixed maturities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated: Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) March 31, 2018: Fixed Maturity Securities: Public corporate $ 8,539 $ 263 $ 605 $ 35 $ 9,144 $ 298 Private corporate 2,457 63 660 44 3,117 107 U.S. Treasury, government and agency 3,129 81 4,325 425 7,454 506 States and political subdivisions 19 1 — — 19 1 Foreign governments 57 2 70 7 127 9 Residential mortgage-backed 145 2 76 1 221 3 Asset-backed 81 4 1 — 82 4 Redeemable preferred stock 116 2 12 2 128 4 Total $ 14,543 $ 418 $ 5,749 $ 514 $ 20,292 $ 932 December 31, 2017: Fixed Maturity Securities: Public corporate $ 2,123 $ 15 $ 690 $ 18 $ 2,813 $ 33 Private corporate 780 8 641 24 1,421 32 U.S. Treasury, government and agency 2,718 6 4,506 245 7,224 251 States and political subdivisions 20 — — — 20 — Foreign governments 11 — 73 5 84 5 Residential mortgage-backed 62 — 76 1 138 1 Asset-backed 15 1 12 — 27 1 Redeemable preferred stock 10 — 13 1 23 1 Total $ 5,739 $ 30 $ 6,011 $ 294 $ 11,750 $ 324 The Company’s investments in fixed maturity securities do not include concentrations of credit risk of any single issuer greater than 10% of the consolidated equity of the Company, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. The Company maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 0.5 % of total investments. The largest exposures to a single issuer of corporate securities held at March 31, 2018 and December 31, 2017 were $219 million and $207 million , respectively. Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the National Association of Insurance Commissioners (“NAIC”) designation of 3 (medium grade), 4 or 5 (below investment grade) or 6 (in or near default). At March 31, 2018 and December 31, 2017 , respectively, approximately $1,335 million and $1,372 million , or 3.1 % and 3.0% , of the $43,268 million and $45,068 million aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had net unrealized losses of $14 million and $5 million at March 31, 2018 and December 31, 2017 , respectively. At March 31, 2018 and December 31, 2017 , respectively, the $514 million and $294 million of gross unrealized losses of twelve months or more were concentrated in corporate and U.S. Treasury, government and agency securities. In accordance with the policy described in Note 2 , the Company concluded that an adjustment to income for OTTI for these securities was not warranted at either March 31, 2018 or 2017 . At March 31, 2018 and December 31, 2017 , the Company did not intend to sell the securities nor will it likely be required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis. The Company does not originate, purchase or warehouse residential mortgages and is not in the mortgage servicing business. At March 31, 2018 , the carrying value of fixed maturities that were non-income producing for the twelve months preceding that date was $3 million . For the three months ended March 31, 2018 and 2017 , investment income is shown net of investment expenses of $19 million and $19 million respectively. At March 31, 2018 and December 31, 2017 , respectively, the fair values of the Company’s trading account securities were $14,919 million and $14,170 million , respectively. Also at March 31, 2018 and December 31, 2017 , trading securities included the General Account’s investment in Separate Accounts, which had carrying values of $49 million and $50 million , respectively. Net unrealized and realized gains (losses) on trading account equity securities are included in Net investment income (loss) in the Consolidated Statements of Income (Loss). The table below shows a breakdown of Net investment income from trading account securities during the three months ended March 31, 2018 and 2017 : Net Investment Income (Loss) from Trading Securities Three Months Ended March 31, 2018 2017 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (121 ) $ 87 Net investment gains (losses) recognized on securities sold during the period 1 4 Unrealized and realized gains (losses) on trading securities arising during the period (120 ) 91 Interest and dividend income from trading securities 76 63 Net investment income (loss) from trading securities $ (44 ) $ 154 Mortgage Loans The payment terms of mortgage loans may from time to time be restructured or modified. Mortgage loans on real estate are placed on nonaccrual status once management determines the collection of accrued interest is doubtful. Once mortgage loans on real estate are classified as nonaccrual loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan on real estate has been restructured to where the collection of interest is considered likely. At March 31, 2018 and December 31, 2017 , the carrying values of commercial mortgage loans on real estate that had been classified as nonaccrual loans were $19 million and $19 million , respectively. Valuation Allowances for Mortgage Loans: Allowance for credit losses for mortgage loans for the first quarters of 2018 and 2017 are as follows: Three Months Ended March 31, 2018 2017 (in millions) Allowance for credit losses: Beginning balance, January 1, $ 8 $ 8 Charge-offs — — Recoveries (1 ) — Provision — — Ending balance, March 31, $ 7 $ 8 March 31, Individually Evaluated for Impairment $ 7 $ 8 There were no allowances for credit losses for agricultural mortgage loans for the first quarters of 2018 and 2017 . Real Estate: In March 2018, the Company sold its interest in two consolidated real estate joint ventures to AXA France for a total purchase price of approximately $143 million , which resulted in a pre-tax loss of $0.2 million and the reduction of $203 million of long-term debt on the Company’s balance sheet for the first quarter of 2018. The following tables provide information relating to the loan-to-value and debt service coverage ratios for commercial and agricultural mortgage loans at March 31, 2018 and December 31, 2017 . The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios March 31, 2018 Debt Service Coverage Ratio (1) Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x Total Mortgage Loans (in millions) Commercial Mortgage Loans (1) 0% - 50% $ 737 $ 21 $ 321 $ 73 $ — $ — $ 1,152 50% - 70% 4,477 643 1,122 399 178 — 6,819 70% - 90% 169 110 144 307 27 — 757 90% plus — — 27 — — — 27 Total Commercial Mortgage Loans $ 5,383 $ 774 $ 1,614 $ 779 $ 205 $ — $ 8,755 Agricultural Mortgage Loans (1) 0% - 50% $ 275 $ 153 $ 276 $ 496 $ 321 $ 29 $ 1,550 50% - 70% 111 46 219 360 228 48 1,012 70% - 90% — — — 23 — — 23 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 386 $ 199 $ 495 $ 879 $ 549 $ 77 $ 2,585 Total Mortgage Loans (1) 0% - 50% $ 1,012 $ 174 $ 597 $ 569 $ 321 $ 29 $ 2,702 50% - 70% 4,588 689 1,341 759 406 48 7,831 70% - 90% 169 110 144 330 27 — 780 90% plus — — 27 — — — 27 Total Mortgage Loans $ 5,769 $ 973 $ 2,109 $ 1,658 $ 754 $ 77 $ 11,340 (1) The debt service coverage ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (2) The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios December 31, 2017 Debt Service Coverage Ratio (1) Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to1.5x 1.0x to 1.2x Less than 1.0x Total Mortgage Loans (in millions) Commercial Mortgage Loans (1) 0% - 50% $ 759 $ — $ 320 $ 74 $ — $ — $ 1,153 50% - 70% 4,088 682 1,066 428 145 — 6,409 70% - 90% 169 110 196 272 50 — 797 90% plus — — 27 — — — 27 Total Commercial Mortgage Loans $ 5,016 $ 792 $ 1,609 $ 774 $ 195 $ — $ 8,386 Agricultural Mortgage Loans (1) 0% - 50% $ 272 $ 149 $ 275 $ 515 $ 316 $ 30 $ 1,557 50% - 70% 111 46 227 359 221 49 1,013 70% - 90% — — — 4 — — 4 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 383 $ 195 $ 502 $ 878 $ 537 $ 79 $ 2,574 Total Mortgage Loans (1) 0% - 50% $ 1,031 $ 149 $ 595 $ 589 $ 316 $ 30 $ 2,710 50% - 70% 4,199 728 1,293 787 366 49 7,422 70% - 90% 169 110 196 276 50 — 801 90% plus — — 27 — — — 27 Total Mortgage Loans $ 5,399 $ 987 $ 2,111 $ 1,652 $ 732 $ 79 $ 10,960 (1) The debt service coverage ratio is calculated using the most recently reported operating income results from property operations divid ed by annual debt service. (2) The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. The following table provides information relating to the aging analysis of past due mortgage loans at March 31, 2018 and December 31, 2017 , respectively. Age Analysis of Past Due Mortgage Loan 30-59 Days 60-89 Days 90 Days or > Total Current Total Financing Receivables Recorded Investment 90 Days or > and Accruing (in millions) March 31, 2018 Commercial $ — $ — $ 27 $ 27 $ 8,728 $ 8,755 $ — Agricultural 10 5 39 54 2,531 2,585 39 Total Mortgage Loans $ 10 $ 5 $ 66 $ 81 $ 11,259 $ 11,340 $ 39 December 31, 2017 Commercial $ 27 $ — $ — $ 27 $ 8,359 $ 8,386 $ — Agricultural 49 3 22 74 2,500 2,574 22 Total Mortgage Loans $ 76 $ 3 $ 22 $ 101 $ 10,859 $ 10,960 $ 22 The following table provides information relating to impaired mortgage loans at March 31, 2018 and December 31, 2017 , respectively. Impaired Mortgage Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (1) Interest Income Recognized (in millions) March 31, 2018: With no related allowance recorded: Commercial mortgage loans - other $ — $ — $ — $ — $ — Agricultural mortgage loans — — — — — Total $ — $ — $ — $ — $ — With related allowance recorded: Commercial mortgage loans - other $ 27 $ 27 $ (7 ) $ 27 $ — Agricultural mortgage loans — — — — — Total $ 27 $ 27 $ (7 ) $ 27 $ — December 31, 2017: With no related allowance recorded: Commercial mortgage loans - other $ — $ — $ — $ — $ — Agricultural mortgage loans — — — — — Total $ — $ — $ — $ — $ — With related allowance recorded: Commercial mortgage loans - other $ 27 $ 27 $ (8 ) $ 27 $ 2 Agricultural mortgage loans — — — — — Total $ 27 $ 27 $ (8 ) $ 27 $ 2 (1) Represents a two-quarter average of recorded amortized cost. Derivatives and Offsetting Assets and Liabilities The Company uses derivatives as part of its overall asset/liability risk management primarily to reduce exposures to equity market and interest rate risks. Derivative hedging strategies are designed to reduce these risks from an economic perspective and are all executed within the framework of a Derivative Use Plan (“DUP”) approved by applicable states’ insurance law. Derivatives are generally not accounted for using hedge accounting, with the exception of Treasury Inflation-Protected Securities (“TIPS”), which is discussed further below. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, fund performance, market volatility and interest rates. A wide range of derivative contracts are used in these hedging programs, including exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, bond and bond-index total return swaps, swaptions, variance swaps and equity options credit and foreign exchange derivatives as well as bond and repo transactions to support the hedging. The derivative contracts are collectively managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in capital markets. In addition, as part of our hedging strategy the Company holds static hedge positions to maintain a target asset level for all variable annuity products at or above a CTE98 level under most economic scenarios (CTE is a statistical measure of tail risk which quantifies the total asset requirement to sustain a loss if an event outside a given probability level has occurred. CTE 98 denotes the financial resources a company would need to cover the average of the worst 2% of scenarios). Derivatives utilized to hedge exposure to Variable Annuities with Guarantee Features The Company has issued and continues to offer variable annuity products with variable annuity guaranteed benefits (“GMxB”), including guaranteed minimum living benefits (“GMLBs”) (such as guaranteed minimum income benefits (“GMIBs”), guaranteed minimum withdrawal benefits (“GMWBs”) and guaranteed minimum accumulation benefits (“GMABs” ), and guaranteed minimum death benefits (“GMDBs”) (inclusive of return of premium death benefit guarantees). The risk associated with the GMDB feature is that under-performance of the financial markets could result in GMDB benefits, in the event of death, being higher than what accumulated policyholders’ account balances would support. The risk associated with the GMIB feature is that under-performance of the financial markets could result in the present value of GMIB, in the event of annuitization, being higher than what accumulated policyholders’ account balances would support, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. The risk associated with products that have a GMxB derivative features liability is that under-performance of the financial markets could result in the GMxB derivative features’ benefits being higher than what accumulated policyholders’ account balances would support. For GMxB features, the Company retains certain risks including basis, credit spread and some volatility risk and risk associated with actual versus expected actuarial assumptions for mortality, lapse and surrender, withdrawal and policyholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMxB features that result from financial markets movements. A portion of exposure to realized equity volatility is hedged using equity options and variance swaps and a portion of exposure to credit risk is hedged using total return swaps on fixed income indices. Additionally, the Company is party to total return swaps for which the reference U.S. Treasury securities are contemporaneously purchased from the market and sold to the swap counterparty. As these transactions result in a transfer of control of the U.S. Treasury securities to the swap counterparty, the Company derecognizes these securities with consequent gain or loss from the sale. The Company has also purchased reinsurance contracts to mitigate the risks associated with GMDB features and the impact of potential market fluctuations on future policyholder elections of GMIB features contained in certain annuity contracts issued by the Company. The Company has implemented static hedge positions to maintain a target asset level for all variable annuities at a CTE98 level under most scenarios, and at a CTE95 level in extreme scenarios. This program was implemented beginning in December 2017. Derivatives used to hedge crediting rate exposure on SCS, SIO, MSO and IUL products/investment options The Company hedges crediting rates in the Structured Capital Strategies (“SCS”) variable annuity, Structured Investment Option in the EQUI-VEST variable annuity series (“SIO”), Market Stabilizer Option (“MSO”) in the variable life insurance products and Indexed Universal Life (“IUL”) insurance products. These products permit the contract owner to participate in the performance of an index, ETF or commodity price movement up to a cap for a set period of time. They also contain a protection feature, in which the Company will absorb, up to a certain percentage, the loss of value in an index, ETF or commodity price, which varies by product segment. In order to support the returns associated with these features, the Company enters into derivative contracts whose payouts, in combination with fixed income investments, emulate those of the index, ETF or commodity price, subject to caps and buffers without any basis risk due to market exposures, thereby substantially reducing any exposure to market-related earnings volatility. Derivatives used for General Account Investment Portfolio The Company maintains a strategy in its General Account investment portfolio to replicate the credit exposure of fixed maturity securities otherwise permissible for investment under its investment guidelines through the sale of credit default swaps (“CDSs”). Under the terms of these swaps, the Company receives quarterly fixed premiums that, together with any initial amount paid or received at trade inception, replicate the credit spread otherwise currently obtainable by purchasing the referenced entity’s bonds of similar maturity. These credit derivatives generally have remaining terms of five years or less and are recorded at fair value with changes in fair value, including the yield component that emerges from initial amounts paid or received, reported in Net investment income (loss). The Company manages its credit exposure taking into consideration both cash and derivatives based positions and selects the reference entities in its replicated credit exposures in a manner consistent with its selection of fixed maturities. In addition, the Company generally transacts the sale of CDSs in single name reference entities of investment grade credit quality and with counterparties subject to collateral posting requirements. If there is an event of default by the reference entity or other such credit event as defined under the terms of the swap contract, the Company is obligated to perform under the credit derivative and, at the counterparty’s option, either pay the referenced amount of the contract less an auction-determined recovery amount or pay the referenced amount of the contract and receive in return the defaulted or similar security of the reference entity for recovery by sale at the contract settlement auction. To date, there have been no events of default or circumstances indicative of deterioration in the credit quality of the named referenced entities to require or suggest that the Company will have to perform under these CDSs. The maximum potential amount of future payments the Company could be required to make under these credit derivatives is limited to the par value of the referenced securities which is the dollar or euro-equivalent of the derivative notional amount. The Standard North American CDS Contract (“SNAC”) or Standard European Corporate Contract (“STEC”) under which the Company executes these CDS sales transactions does not contain recourse provisions for recovery of amounts paid under the credit derivative. The Company purchased 30-year TIPS and other sovereign bonds, inflation linked and non-inflation linked, as General Account investments and enters into asset or cross-currency basis swaps, to result in payment of the given bond’s coupons and principal at maturity in the bond’s specified currency to the swap counterparty in return for fixed dollar amounts. These swaps, when considered in combination with the bonds, together result in a net position that is intended to replicate a dollar-denominated fixed-coupon cash bond with a yield higher than a term-equivalent U.S. Treasury bond. At March 31, 2018 and December 31, 2017 , the Company’s unrealized gains (losses) related to this program were $(88) million and $(86) million , respectively, and reported in AOCI. The Company implemented a strategy to hedge a portion of the credit exposure in its General Account investment portfolio by buying protection through a swap. These are swaps on the “super senior tranche” of the investment grade CDX index. Under the terms of these swaps, the Company pays quarterly fixed premiums that, together with any initial amount paid or received at trade inception, serve as premiums paid to hedge the risk arising from multiple defaults of bonds referenced in the CDX index. These credit derivatives have terms of five years or less and are recorded at fair value with changes in fair value, including the yield component that emerges from initial amounts paid or received, reported in Net derivative gains (losses). In 2016, the Company implemented a program to mitigate its duration gap using total return swaps for which the reference U.S. Treasury securities are sold to the swap counterparty under arrangements economically similar to repurchase agreements. As these transactions result in a transfer of control of the U.S. Treasury securities to the swap counterparty, the Company derecognizes these securities with consequent gain or loss from the sale. Under this program the Company derecognized approximately $3,905 million U.S. Treasury securities for which the Company received proceeds of approximately $3,906 million at inception of the total return swap contract. Under the terms of these swaps, the Company retains ongoing exposure to the total returns of the underlying U.S. Treasury securities in exchange for a financing cost. At March 31, 2018 , the aggregate fair value of U.S. Treasury securities derecognized under this program was approximately $3,673 million . Reported in Other invested assets in the Company’s balance sheet at March 31, 2018 is approximately $16 million , representing the fair value of the total return swap contracts. Derivatives used to hedge currency fluctuations on affiliated loans The Company uses foreign exchange derivatives to reduce exposure to currency fluctuations that may arise from non-U.S.-dollar denominated financial instruments. The Company has currency swap contracts with AXA to hedge foreign exchange exposure from affiliated loans. The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments. Derivative Instruments by Category At March 31, 2018 Gains (Losses) Reported In Net Income (Loss) Three Months Ended March 31, 2018 Fair Value Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding derivatives: Equity contracts: (1) Futures $ 6,629 $ 2 $ 1 $ (23 ) Swaps 8,017 255 16 114 Options 23,013 3,350 1,411 (18 ) Interest rate contracts: (1) Swaps 29,331 555 395 (671 ) Futures 24,015 — — 40 Credit contracts: (1) Credit default swaps 2,136 32 3 — Other freestanding contracts: (1) Foreign currency contracts 1,781 10 52 (51 ) Margin — 62 57 — Collateral — 17 2,208 — Embedded derivatives: GMIB reinsurance contracts (6) — 1,734 — (159 ) GMxB derivative features liability (3,6) — — 3,977 460 SCS, SIO, MSO and IUL indexed features (5,6) — — 1,683 27 Net derivative investment gains (loss) (281 ) Cross currency swaps (2,4) — — — 9 Total $ 94,922 $ 6,017 $ 9,803 $ (272 ) (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Other assets or Other liabilities in the consolidated balance sheets. (3) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) Reported in Other income in the consolidated statements of income (loss). (5) SCS and SIO indexed features are reported in Policyholders’ account balances; MSO and IUL indexed features |
CLOSED BLOCK
CLOSED BLOCK | 3 Months Ended |
Mar. 31, 2018 | |
Closed Block Disclosure [Abstract] | |
CLOSED BLOCK | CLOSED BLOCK Summarized financial information for the Company’s Closed Block is as follows: March 31, December 31, (in millions) CLOSED BLOCK LIABILITIES: Future policy benefits, policyholders’ account balances and other $ 6,904 $ 6,958 Policyholder dividend obligation — 19 Other liabilities 269 271 Total Closed Block liabilities 7,173 7,248 ASSETS DESIGNATED TO THE CLOSED BLOCK: Fixed maturities, available for sale, at fair value (amortized cost of $3,864 and $3,923) 3,908 4,070 Mortgage loans on real estate 1,837 1,720 Policy loans 772 781 Cash and other invested assets 235 351 Other assets 192 182 Total assets designated to the Closed Block 6,944 7,104 Excess of Closed Block liabilities over assets designated to the Closed Block 229 144 Amounts included in accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of policyholder dividend obligation of $0 and $19 55 138 Maximum Future Earnings To Be Recognized From Closed Block Assets and Liabilities $ 284 $ 282 The Company’s Closed Block revenues and expenses follows: Three Months Ended March 31, 2018 2017 (in millions) REVENUES: Premiums and other income $ 51 $ 54 Net investment income (loss) 73 83 Net investment gains (losses) 1 (15 ) Total revenues 125 122 BENEFITS AND OTHER DEDUCTIONS: Policyholders’ benefits and dividends 126 151 Other operating costs and expenses 1 — Total benefits and other deductions 127 151 Net revenues (loss) before income taxes (2 ) (29 ) Income tax (expense) benefit — 10 Net Revenues (Losses) $ (2 ) $ (19 ) A reconciliation of the Company’s policyholder dividend obligation follows: Three Months Ended March 31, 2018 2017 (in millions) Balances, beginning of year $ 19 $ 52 Unrealized investment gains (losses), net of DAC (19 ) (14 ) Balances, End of Period $ — $ 38 |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 3 Months Ended |
Mar. 31, 2018 | |
Insurance [Abstract] | |
INSURANCE LIABILITIES | INSURANCE LIABILITIES A) Variable Annuity Contracts – GMDB, GMIB, GIB and GWBL and Other Features The Company has certain variable annuity contracts with GMDB, GMIB, GIB and GWBL and other features in-force that guarantee one of the following: • Return of Premium: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals); • Ratchet: the benefit is the greatest of current account value, premiums paid (adjusted for withdrawals), or the highest account value on any anniversary up to contractually specified ages (adjusted for withdrawals); • Roll-Up: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified interest rates up to specified ages; • Combo: the benefit is the greater of the ratchet benefit or the roll-up benefit, which may include either a five year or an annual reset; or • Withdrawal: the withdrawal is guaranteed up to a maximum amount per year for life. The following table summarizes the direct GMDB and GMIB with no no-lapse guarantee rider (“NLG”) features liabilities, before reinsurance ceded, reflected in the consolidated balance sheets in Future policy benefits and other policyholders’ liabilities: GMDB GMIB Total (in millions) Balance at January 1, 2018 $ 4,085 $ 4,800 $ 8,885 Paid guarantee benefits (101 ) (32 ) (133 ) Other changes in reserve 97 (136 ) (39 ) Balance at March 31, 2018 $ 4,081 $ 4,632 $ 8,713 Balance at January 1, 2017 $ 3,170 $ 3,868 $ 7,038 Paid guarantee benefits (89 ) (32 ) (121 ) Other changes in reserve 187 1,919 2,106 Balance at March 31, 2017 $ 3,268 $ 5,755 $ 9,023 The following table summarizes the ceded GMDB liabilities, reflected in the consolidated balance sheets in Amounts due from reinsurers: Three Months Ended March 31, 2018 2017 (in millions) Balance, beginning of year $ 108 $ 90 Paid guarantee benefits (5 ) (3 ) Other changes in reserve 2 2 Balance, End of Period $ 105 $ 89 The following table summarizes the assumed GMDB liabilities, reflected in the consolidated balance sheets in Future policy benefits and other policyholders’ liabilities: Three Months Ended March 31, 2018 2017 (in millions) Balance, beginning of year $ 95 $ 121 Paid guarantee benefits (6 ) (5 ) Other changes in reserve (7 ) (8 ) Balance, End of Period $ 82 $ 108 The liability for the GMxB derivative features liability, the liability for SCS, SIO, MSO and IUL indexed features and the GMIB reinsurance contract asset are considered embedded or freestanding insurance derivatives and are reported at fair value. Summarized in the table below is a summary of the fair value of these liabilities at March 31, 2018 and December 31, 2017 : March 31, December 31, (in millions) GMIBNLG (1) $ 3,715 $ 4,056 SCS, SIO, MSO, IUL indexed features (2) 1,683 1,786 Assumed GMIB reinsurance Contracts (1) 173 194 GWBL/GMWB (1) 121 130 GIB (1) (36 ) (27 ) GMAB (1) 4 5 Total embedded and freestanding derivative liabilities $ 5,660 $ 6,144 GMIB reinsurance contract asset (3) $ 1,734 $ 1,894 (1) Reported in Future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets. (2) Reported in Policyholders’ account balances in the consolidated balance sheets. (3) Reported in GMIB reinsurance contract asset, at fair value in the consolidated balance sheets. The March 31, 2018 values for direct variable annuity contracts in-force on such date with GMDB and GMIB features are presented in the following table. For contracts with the GMDB feature, the net amount at risk in the event of death is the amount by which the GMDB exceed related account values. For contracts with the GMIB feature, the net amount at risk in the event of annuitization is the amount by which the present value of the GMIB benefits exceeds related account values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB guarantees may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive: Direct Variable Annuity Contract Values Return of Premium Ratchet Roll-Up Combo Total (Dollars in millions) GMDB: Account values invested in: General Account $ 13,848 $ 107 $ 64 $ 194 $ 14,213 Separate Accounts $ 45,136 $ 9,319 $ 3,381 $ 34,668 $ 92,504 Net amount at risk, gross $ 186 $ 117 $ 2,016 $ 16,388 $ 18,707 Net amount at risk, net of amounts reinsured $ 186 $ 111 $ 1,378 $ 16,388 $ 18,063 Average attained age of policyholders 51 67 73 68 55 Percentage of policyholders over age 70 9.7 % 40.9 % 63.7 % 47.4 % 18.3 % Range of contractually specified interest rates N/A N/A 3%-6% 3%-6.5% 3%-6.5% GMIB: Account values invested in: General Account N/A N/A $ 24 $ 285 $ 309 Separate Accounts N/A N/A $ 20,855 $ 39,604 $ 60,459 Net amount at risk, gross N/A N/A $ 883 $ 6,322 $ 7,205 Net amount at risk, net of amounts reinsured N/A N/A $ 268 $ 5,738 $ 6,006 Average attained age of policyholders N/A N/A 70 69 69 Weighted average years remaining until annuitization N/A N/A 1.7 0.7 0.8 Range of contractually specified interest rates N/A N/A 3%-6% 3%-6.5% 3%-6.5% The March 31, 2018 values for assumed variable annuity contracts in force on such date with GMDB and GMIB features are presented in the following table: Assumed Variable Annuity Contract Values Return of Premium Ratchet Roll-Up Combo Total (Dollars in millions) GMDB: Reinsured Account values $ 1,023 $ 5,849 $ 302 $ 1,879 $ 9,053 Net amount at risk assumed $ 7 $ 314 $ 24 $ 321 $ 666 Average attained age of policyholders 67 72 77 75 72 Percentage of policyholders over age 70 41.4 % 60.8 % 76.6 % 74.2 % 61.9 % Range of contractually specified interest rates N/A N/A 3%-10% 5%-10% 3%-10% GMIB: Reinsured Account values $ 978 $ 52 $ 277 $ 1,338 $ 2,645 Net amount at risk assumed $ 2 $ — $ 38 $ 215 $ 255 Average attained age of policyholders 71 74 71 68 70 Percentage of policyholders over age 70 61.6 % 63.7 % 55.9 % 48.1 % 54.2 % Range of contractually specified interest rates (1) N/A N/A 3.3%-6.5% 6%-6% 3.3%-6.5% (1) In general, for policies with the highest contractual interest rate shown ( 10% ), the rate applied only for the first 10 years after issue, which have now elapsed. B) Separate Account Investments by Investment Category Underlying GMDB and GMIB Features The total account values of variable annuity contracts with GMDB and GMIB features include amounts allocated to the guaranteed interest option, which is part of the General Account and variable investment options that invest through Separate Accounts in variable insurance trusts. The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB guarantees. The investment performance of the assets impacts the related account values and, consequently, the net amount of risk associated with the GMDB and GMIB benefits and guarantees. Because variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive. Investment in Separate Account Investment Options March 31, December 31, 2017 (1) (in millions) GMDB: Equity $ 40,678 $ 41,658 Fixed income 5,384 5,469 Balanced 45,485 46,577 Other 957 968 Total $ 92,504 $ 94,672 GMIB: Equity $ 19,156 $ 19,928 Fixed income 3,074 3,150 Balanced 37,918 38,890 Other 311 318 Total $ 60,459 $ 62,286 (1) Amounts previously reported were as follows in millions: (a) GMDB: Equity $78,069 , Fixed Income $2,234 , Balanced $14,084 , and Other $283 ; (b) GMIB: Equity $50,429 , Fixed Income $1,568 , Balanced $10,165 , and Other $124 . C) Hedging Programs for GMDB, GMIB, GIB and Other Features Beginning in 2003, the Company established a program intended to hedge certain risks associated first with the GMDB feature and, beginning in 2004, with the GMIB feature of the Accumulator series of variable annuity products. The program has also been extended to cover other guaranteed benefits as they have been made available. This program utilizes derivative contracts, such as exchange-traded equity, currency and interest rate futures contracts, total return and/or equity swaps, interest rate swap and floor contracts, swaptions, variance swaps as well as equity options, that collectively are managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in the capital markets. At the present time, this program hedges certain economic risks on products sold from 2001 forward, to the extent such risks are not externally reinsured. At March 31, 2018 , the total account value and net amount at risk of the hedged variable annuity contracts were $68,663 million and $17,102 million , respectively, with the GMDB feature and $57,781 million and $ $7,236 million , respectively, with the GMIB and GIB feature. A hedge program is also used to manage certain capital markets risks associated with the products the Company has assumed that have GMDB and GMIB features. At March 31, 2018 , the total account value and net amount at risk of the hedged assumed variable annuity contracts were $9,053 million and $666 million , respectively, with the GMDB feature and $2,645 million and $255 million , respectively, with the GMIB feature. These programs do not qualify for hedge accounting treatment. Therefore, gains (losses) on the derivatives contracts used in these programs, including current period changes in fair value, are recognized in net investment income (loss) in the period in which they occur, and may contribute to income (loss) volatility. D) Variable and Interest-Sensitive Life Insurance Policies - NLG The NLG feature contained in variable and interest-sensitive life insurance policies keeps them in force in situations where the policy value is not sufficient to cover monthly charges then due. The NLG remains in effect so long as the policy meets a contractually specified premium funding test and certain other requirements. The following table summarizes the NLG liabilities reflected in the General Account in Future policy benefits and other policyholders’ liabilities, the related reinsurance reserve ceded, reflected in Amounts due from reinsurers and deferred cost of reinsurance, reflected in Other assets in the Consolidated balance sheets: Direct Liability (1) (in millions) Balance at January 1, 2018 $ 686 Paid Guaranteed Benefits (8 ) Other changes in reserves 26 Balance at March 31, 2018 $ 704 Balance at January 1, 2017 $ 1,307 Other changes in reserves 4 Balance at March 31, 2017 $ 1,311 (1) There were no amounts of reinsurance ceded in any period presented. |
REINSURANCE AGREEMENTS
REINSURANCE AGREEMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Insurance [Abstract] | |
REINSURANCE AGREEMENTS | REINSURANCE AGREEMENTS Effective February 1, 2018, AXA Equitable Life entered into a coinsurance reinsurance agreement (the “Coinsurance Agreement”) to cede 90% of its single premium deferred annuities (SPDA) products issued between 1978-2001 and its Guaranteed Growth Annuity (GGA) single premium deferred annuity products issued between 2001-2014. As a result of this agreement, AXA Equitable Life transferred securities with a market value of $604 million and cash of $31 million to equal the statutory reserves of approximately $635 million . As the risks transferred by AXA Equitable Life to the reinsurer under the Coinsurance Agreement are not considered insurance risks and therefore do not qualify for reinsurance accounting, AXA Equitable Life applied deposit accounting. Accordingly, AXA Equitable Life recorded the transferred assets of $635 million as a deposit asset recorded in Other assets, net of the ceding commissions paid to the reinsurer. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance established a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. The Company uses unadjusted quoted market prices to measure the fair value of instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. Assets and liabilities measured at fair value on a recurring basis are summarized below. At March 31, 2018 and December 31, 2017 , no assets were required to be measured at fair value on a non-recurring basis. Fair value measurements are required on a non-recurring basis for certain assets, including goodwill and mortgage loans on real estate, only when an OTTI or other event occurs. When such fair value measurements are recorded, they must be classified and disclosed within the fair value hierarchy. The Company recognizes transfers between valuation levels at the beginning of the reporting period. Fair Value Measurements at March 31, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, available-for-sale: Public Corporate $ — $ 18,581 $ 135 $ 18,716 Private Corporate — 6,286 1,118 7,404 U.S. Treasury, government and agency — 14,653 — 14,653 States and political subdivisions — 438 39 477 Foreign governments — 419 — 419 Residential mortgage-backed (1) — 627 — 627 Asset-backed (2) — 135 540 675 Redeemable preferred stock 180 333 — 513 Subtotal 180 41,472 1,832 43,484 Other equity investments 13 — 34 47 Trading securities 448 14,427 44 14,919 Other invested assets: Short-term investments — 854 — 854 Assets of consolidated VIEs/VOEs 1,691 291 32 2,014 Swaps — 356 — 356 Credit Default Swaps — 29 — 29 Options — 1,939 — 1,939 Subtotal 1,691 3,469 32 5,192 Cash equivalents 4,894 — — 4,894 Segregated securities — 1,025 — 1,025 GMIB reinsurance contract asset — — 1,734 1,734 Separate Accounts’ assets 118,466 2,845 357 121,668 Total Assets $ 125,692 $ 63,238 $ 4,033 $ 192,963 Liabilities Other invested liabilities GMxB derivative features’ liability $ — $ — $ 3,977 $ 3,977 SCS, SIO, MSO and IUL indexed features’ liability — 1,683 — 1,683 Liabilities of consolidated VIEs/VOEs 1,190 18 — 1,208 Contingent payment arrangements — — 14 14 Total Liabilities $ 1,190 $ 1,701 $ 3,991 $ 6,882 (1) Includes publicly traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. Fair Value Measurements at December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, available-for-sale: Public Corporate $ — $ 17,906 $ 48 $ 17,954 Private Corporate — 6,390 1,102 7,492 U.S. Treasury, government and agency — 18,508 — 18,508 States and political subdivisions — 449 40 489 Foreign governments — 419 — 419 Residential mortgage-backed (1) — 818 — 818 Asset-backed (2) — 208 541 749 Redeemable preferred stock 184 327 1 512 Subtotal 184 45,025 1,732 46,941 Other equity investments 13 — 34 47 Trading securities 485 13,647 38 14,170 Other invested assets: Short-term investments — 1,730 — 1,730 Assets of consolidated VIEs/VOEs 1,060 215 27 1,302 Swaps — 222 — 222 Credit Default Swaps — 33 — 33 Futures (2 ) — — (2 ) Foreign currency contract (3) — 5 — 5 Options — 1,999 — 1,999 Subtotal 1,058 4,204 27 5,289 Cash equivalents 3,608 — — 3,608 Segregated securities — 825 — 825 GMIB reinsurance contract asset — — 1,894 1,894 Separate Accounts’ assets 121,000 2,997 349 124,346 Total Assets $ 126,348 $ 66,698 $ 4,074 $ 197,120 Liabilities Other invested liabilities GMxB derivative features’ liability $ — $ — $ 4,358 $ 4,358 SCS, SIO, MSO and IUL indexed features’ liability — 1,786 — 1,786 Liabilities of consolidated VIEs/VOEs 670 22 — 692 Contingent payment arrangements — — 15 15 Total Liabilities $ 670 $ 1,808 $ 4,373 $ 6,851 (1) Includes publicly traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (3) Reported in Other assets in the consolidated balance sheets. At March 31, 2018 and December 31, 2017 , respectively, the fair value of public fixed maturities is approximately $35,131 million and $38,762 million or approximately 18.5% and 20.0% of the Company’s total assets measured at fair value on a recurring basis (excluding GMIB reinsurance contracts and segregated securities measured at fair value on a recurring basis). The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent valuation service providers and for which the Company maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. Although each security generally is priced by multiple independent valuation service providers, the Company ultimately uses the price received from the independent valuation service provider highest in the vendor hierarchy based on the respective asset type, with limited exception. To validate reasonableness, prices also are internally reviewed by those with relevant expertise through comparison with directly observed recent market trades. Consistent with the fair value hierarchy, public fixed maturity securities validated in this manner generally are reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. If the pricing information received from independent valuation service providers is not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process in accordance with the terms of the respective independent valuation service provider agreement. If as a result it is determined that the independent valuation service provider is able to reprice the security in a manner agreed as more consistent with current market observations, the security remains within Level 2. Alternatively, a Level 3 classification may result if the pricing information then is sourced from another vendor, non-binding broker quotes, or internally-developed valuations for which the Company’s own assumptions about market-participant inputs would be used in pricing the security. At March 31, 2018 and December 31, 2017 , respectively, the fair value of private fixed maturities is approximately $8,353 million and $8,179 million or approximately 4.4% and 4.2% of the Company’s total assets measured at fair value on a recurring basis. The fair values of the Company’s private fixed maturities are determined from prices obtained from independent valuation service providers. Prices not obtained from an independent valuation service provider are determined by using a discounted cash flow model or a market comparable company valuation technique. In certain cases, these models use observable inputs with a discount rate based upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions, taking into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Generally, these securities have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model or a market comparable company valuation technique may also incorporate unobservable inputs, which reflect the Company’s own assumptions about the inputs market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the fair value measurement of a security, a Level 3 classification generally is made. As disclosed in Note 3 , at March 31, 2018 and December 31, 2017 , respectively, the net fair value of freestanding derivative positions is approximately 44.8 % and 42.9% of Other invested assets measured at fair value on a recurring basis, with a value of $2,324 million and $2,258 million . The fair values of the Company’s derivative positions are generally based on prices obtained either from independent valuation service providers or derived by applying market inputs from recognized vendors into industry standard pricing models. The majority of these derivative contracts are traded in the OTC derivative market and are classified in Level 2. The fair values of derivative assets and liabilities traded in the OTC market are determined using quantitative models that require use of the contractual terms of the derivative instruments and multiple market inputs, including interest rates, prices, and indices to generate continuous yield or pricing curves, including overnight index swap (“OIS”) curves, and volatility factors, which then are applied to value the positions. The predominance of market inputs is actively quoted and can be validated through external sources or reliably interpolated if less observable. If the pricing information received from independent valuation service providers is not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process in accordance with the terms of the respective independent valuation service provider agreement. If as a result it is determined that the independent valuation service provider is able to reprice the derivative instrument in a manner agreed as more consistent with current market observations, the position remains within Level 2. Alternatively, a Level 3 classification may result if the pricing information then is sourced from another vendor, non-binding broker quotes, or internally-developed valuations for which the Company’s own assumptions about market-participant inputs would be used in pricing the security. At March 31, 2018 and December 31, 2017 , respectively, investments classified as Level 1 comprise approximately 66.1 % and 64.9% of assets measured at fair value on a recurring basis and primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Account assets. Fair value measurements classified as Level 1 include exchange-traded prices of fixed maturities, equity securities and derivative contracts, and net asset values for transacting subscriptions and redemptions of mutual fund shares held by Separate Accounts. Cash equivalents classified as Level 1 include money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less, and are carried at cost as a proxy for fair value measurement due to their short-term nature. At March 31, 2018 and December 31, 2017 , respectively, investments classified as Level 2 comprise approximately 32.7 % and 34.0% of assets measured at fair value on a recurring basis and primarily include U.S. government and agency securities and certain corporate debt securities, such as public and private fixed maturities. As market quotes generally are not readily available or accessible for these securities, their fair value measures are determined utilizing relevant information generated by market transactions involving comparable securities and often are based on model pricing techniques that effectively discount prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity. Segregated securities classified as Level 2 are U.S. Treasury bills segregated by AB in a special reserve bank custody account for the exclusive benefit of brokerage customers, as required by Rule 15c3-3 of the Exchange Act and for which fair values are based on quoted yields in secondary markets. Observable inputs generally used to measure the fair value of securities classified as Level 2 include benchmark yields, reported secondary trades, issuer spreads, benchmark securities and other reference data. Additional observable inputs are used when available, and as may be appropriate, for certain security types, such as prepayment, default, and collateral information for the purpose of measuring the fair value of mortgage- and asset-backed securities. At March 31, 2018 and December 31, 2017 , respectively, approximately $ 641 million and $875 million of AAA-rated mortgage- and asset-backed securities are classified as Level 2 for which the observability of market inputs to their pricing models is supported by sufficient, albeit more recently contracted, market activity in these sectors. Certain Company products such as the SCS and EQUI-VEST variable annuity product, and in the MSO fund available in some life contracts offer investment options which permit the contract owner to participate in the performance of an index, ETF or commodity price. These investment options, which depending on the product and on the index selected can currently have 1, 3, 5, or 6 year terms, provide for participation in the performance of specified indices, ETF or commodity price movement up to a segment-specific declared maximum rate. Under certain conditions that vary by product, e.g. holding these segments for the full term, these segments also shield policyholders from some or all negative investment performance associated with these indices, ETF or commodity prices. These investment options have defined formulaic liability amounts, and the current values of the option component of these segment reserves are accounted for as Level 2 embedded derivatives. The fair values of these embedded derivatives are based on data obtained from independent valuation service providers. At March 31, 2018 and December 31, 2017 , respectively, investments classified as Level 3 comprise approximately 1.2 % and 1.1% of assets measured at fair value on a recurring basis and primarily include corporate debt securities, such as private fixed maturities. Determinations to classify fair value measures within Level 3 of the valuation hierarchy generally are based upon the significance of the unobservable factors to the overall fair value measurement. Included in the Level 3 classification at March 31, 2018 and December 31, 2017 , respectively, were approximately $ 95 million and $97 million of fixed maturities with indicative pricing obtained from brokers that otherwise could not be corroborated to market observable data. The Company applies various due diligence procedures, as considered appropriate, to validate these non-binding broker quotes for reasonableness, based on its understanding of the markets, including use of internally-developed assumptions about inputs a market participant would use to price the security. In addition, approximately $ 540 million and $598 million of mortgage- and asset-backed securities are classified as Level 3 at March 31, 2018 and December 31, 2017 , respectively. The Company also issues certain benefits on its variable annuity products that are accounted for as derivatives and are also considered Level 3. The GMIBNLG feature allows the policyholder to receive guaranteed minimum lifetime annuity payments based on predetermined annuity purchase rates applied to the contract’s benefit base if and when the contract account value is depleted and the NLG feature is activated. The GMWB feature allows the policyholder to withdraw at minimum, over the life of the contract, an amount based on the contract’s benefit base. The GWBL feature allows the policyholder to withdraw, each year for the life of the contract, a specified annual percentage of an amount based on the contract’s benefit base. The GMAB feature increases the contract account value at the end of a specified period to a GMAB base. The GIB feature provides a lifetime annuity based on predetermined annuity purchase rates if and when the contract account value is depleted. This lifetime annuity is based on predetermined annuity purchase rates applied to a GIB base. Level 3 also includes the GMIB reinsurance contract asset’s which are accounted for as derivative contracts. The GMIB reinsurance contract asset and liabilities’ fair value reflects the present value of reinsurance premiums and recoveries and risk margins over a range of market consistent economic scenarios while GMxB derivative features liability reflects the present value of expected future payments (benefits) less fees, adjusted for risk margins and nonperformance risk, attributable to GMxB derivative features’ liability over a range of market-consistent economic scenarios. The valuations of the GMIB reinsurance contract asset and GMxB derivative features liability incorporate significant non-observable assumptions related to policyholder behavior, risk margins and projections of equity separate account funds. The credit risks of the counterparty and of the Company are considered in determining the fair values of its GMIB reinsurance contract asset and GMxB derivative features liability positions, respectively, after taking into account the effects of collateral arrangements. Incremental adjustment to the swap curve for non-performance risk is made to the fair values of the GMIB reinsurance contract asset and liabilities and GMIBNLG feature to reflect the claims-paying ratings of counterparties and the Company. Equity and fixed income volatilities were modeled to reflect current market volatilities. Due to the unique, long duration of the GMIBNLG feature, adjustments were made to the equity volatilities to remove the illiquidity bias associ ated with the longer tenors and risk margins were applied to the non-capital markets inputs to the GMIBNLG valuations. After giving consideration to collateral arrangements, the Company reduced the fair value of its GMIB reinsurance contract asset by $12 million and $8 million at March 31, 2018 and December 31, 2017 , respectively, to recognize incremental counterparty non-performance risk and reduced the fair value of its GMIB reinsurance contract liabilities by $24 million and $24 million at March 31, 2018 and December 31, 2017 , respectively to recognize its own incremental non-performance risk. Lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, which include other factors such as considering surrender charges. Generally, lapse rates are assumed to be lower in periods when a surrender charge applies. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. For valuing the embedded derivative, lapse rates vary throughout the period over which cash flows are projected. Th e Company’s Level 3 liabilities include contingent payment arrangements associated with acquisitions in 2010, 2013, 2014 and 2016 by AB. At each reporting date, AB estimates the fair values of the contingent consideration expected to be paid based upon probability-weighted AUM and revenue projections, using unobservable market data inputs, which are included in Level 3 of the valuation hierarchy. The Company’s Level 3 liabilities also include contingent payment arrangements associated with a Renewal Rights Agreement (the “Renewal Rights Agreement”) that transitions certain group employee benefits policies beginning January 1, 2017 from an insurer exiting such business to MONY Life Insurance Company of America (“MLOA”). The fair value of the contingent payments liability associated with this transaction is measured and adjusted each reporting period through final settlement using projected premiums from these policies, net of potential surrenders and terminations, and applying a risk-adjusted discount factor ( 7.0% at March 31, 2018 ) to the resulting cash flows. As of March 31, 2018 and December 31, 2017 , the Company’s consolidated VIEs/VOEs hold $32 million and $27 million , respectively of investments that are classified as Level 3 primarily consist of corporate bonds that are vendor priced with no ratings available, bank loans, non-agency collateralized mortgage obligations and asset-backed securities. In the first three months of 2018 , AFS fixed maturities with fair values of $16 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity or market observable inputs to measure and validate their fair values. In addition, AFS fixed maturities with fair value of $67 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 0.5% of total equity at March 31, 2018 . In the first three months of 2017 , $0 million AFS fixed maturities were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity or market observable inputs to measure and validate their fair values. In addition, AFS fixed maturities with fair value of $24 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 0.2% of total equity at March 31, 2017 . The table below presents a reconciliation for all Level 3 assets and liabilities for the three months ended March 31, 2018 and 2017 , respectively: Level 3 Instruments Fair Value Measurements Corporate State and Commercial Asset- (in millions) Balance, January 1, 2018 $ 1,150 $ 40 $ — $ 541 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 1 — — — Investment gains (losses), net — — — — Subtotal 1 — — — Other comprehensive income (loss) (21 ) (1 ) — — Purchases 189 — — — Sales (117 ) — — (1 ) Settlements — — — — Transfers into Level 3 (1) 67 — — — Transfers out of Level 3 (1) (16 ) — — — Balance, March 31, 2018 $ 1,253 $ 39 $ — $ 540 Balance, January 1, 2017 $ 857 $ 42 $ 373 $ 120 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 1 — — — Investment gains (losses), net — — (23 ) — Subtotal 1 — (23 ) — Other comprehensive income (loss) 45 — 25 5 Purchases 171 — — 195 Sales (67 ) — (35 ) (3 ) Transfers into Level 3 (1) 18 — — 6 Transfers out of Level 3 (1) — — — — Balance, March 31, 2017 $ 1,025 $ 42 $ 340 $ 323 Redeemable Other (2) GMIB Separate GMxB derivative features liability Contingent (in millions) Balance, January 1, 2018 $ 1 $ 99 $ 1,894 $ 349 $ (4,358 ) $ (15 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — — — 7 — — Net derivative gains (losses) — — (159 ) — 460 — Subtotal — — (159 ) 7 460 — Other comprehensive income (loss) — 1 — — — — Purchases (2) — 4 10 3 (84 ) — Sales (3) (1 ) — (11 ) (1 ) 5 — Settlements (4) — — — (1 ) — 1 Activity related to consolidated VIEs — 1 — — — — Transfers into Level 3 (1) — 5 — — — — Transfers out of Level 3 (1) — — — — — — Balance, March 31, 2018 $ — $ 110 $ 1,734 $ 357 $ (3,977 ) $ (14 ) Balance, January 1, 2017 $ 1 $ 88 $ 1,735 $ 313 $ (5,580 ) $ (25 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — (9 ) — 10 — — Net derivative gains (losses) — — (71 ) 507 — Subtotal — (9 ) (71 ) 10 507 — Other comprehensive income (loss) — — — — — — Purchases (2) — 4 9 3 (81 ) — Sales (3) — (1 ) (14 ) (1 ) 8 — Settlements (4) — — (1 ) — 1 Activity related to consolidated VIEs — (9 ) — — — — Transfers into Level 3 (1) — 1 — 1 — — Transfers out of Level 3 (1) — — — — — Balance, March 31, 2017 $ 1 $ 74 $ 1,659 $ 325 $ (5,146 ) $ (24 ) (1) Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. (2) For the GMIB reinsurance contract asset, and GMxB derivative features liability, represents attributed fee. (3) For the GMIB reinsurance contract asset, represents recoveries from reinsurers and for GMxB derivative features liability represents benefits paid. (4) For contingent payment arrangements, it represents payments under the arrangement. The table below details changes in unrealized gains (losses) for the three months ended March 31, 2018 and 2017 by category for Level 3 assets and liabilities still held at March 31, 2018 and 2017 , respectively: Income (Loss) Investment Net Derivative Gains (losses) OCI (in millions) Level 3 Instruments First Quarter of 2018 Held at March 31, 2018: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ (19 ) State and political subdivisions — — (1 ) Asset-backed — — — Subtotal $ — $ — $ (20 ) GMIB reinsurance contracts — (159 ) — Separate Accounts’ assets (1) 7 — — GMxB derivative features’ liability — 460 — Total $ 7 $ 301 $ (20 ) Level 3 Instruments First Quarter of 2017 Held at March 31, 2017: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ 45 Commercial mortgage-backed — — 13 Asset-backed — — 5 Subtotal $ — $ — $ 63 GMIB reinsurance contracts — (71 ) — Separate Accounts’ assets (1) 10 — — GMxB derivative features’ liability — 507 — Total $ 10 $ 436 $ 63 (1) There is an investment expense that offsets this investment gain (loss). The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of March 31, 2018 and December 31, 2017 , respectively. Quantitative Information about Level 3 Fair Value Measurements March 31, 2018 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 52 Matrix pricing model Spread over the industry-Specific benchmark yield curve 0 - 565 bps 112 bps 788 Market comparable EBITDA multiples 6.2x - 30.7x 13x Other equity investments 38 Discounted cash flow Earnings Multiple 10.8x Separate Accounts’ assets 332 Third party appraisal Capitalization Rate 4.6% 1 Discounted cash flow Spread over U.S. Treasury curve 228 bps GMIB reinsurance contract asset 1,734 Discounted cash flow Lapse Rates 1% - 6.27% 0.63% -13.94% 0% - 16% 6 - 14 bps 11%-30% Liabilities: GMIBNLG 3,715 Discounted cash flow Non-performance risk 1.0% Assumed GMIB Reinsurance Contracts 173 Discounted cash flow Lapse Rates 1.1% - 13.3% GWBL/GMWB 121 Discounted cash flow Lapse Rates 0.5%-5.7% 0.0%-7.0% 100% after delay 11%-30% GIB (36 ) Discounted cash flow Lapse Rates 0.5%-5.7% 0%-8% 0% - 16% 11%-30% GMAB 4 Discounted cash flow Lapse Rates 0.5%-11.0% 11%-30% Quantitative Information about Level 3 Fair Value Measurements December 31, 2017 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 53 Matrix pricing model Spread over the industry-specific benchmark yield curve 0 bps-565 bps 125 bps 789 Market comparable companies EBITDA multiples 5.3x-27.9x 12.9x Other equity investments 38 Discounted cash flow Earnings Multiple 10.8x 10.0% 12 Separate Accounts’ assets 326 Third party appraisal Capitalization Rate 4.6% 5.6% 6.6% 1 Discounted cash flow Spread over U.S. Treasury curve 243 bps 4.409% GMIB reinsurance contract asset 1,894 Discounted Cash flow Lapse Rates 1.0% - 6.3% 0.0% - 8.0% 0.0% - 16.0% 5bps - 10bps 9.9% - 30.9% Liabilities: GMIBNLG 4,056 Discounted cash flow Non-performance risk 1.0% 0.8% - 26.2% 0.0% - 12.4% 0.0% - 16.0% 0.55% - 2.1% 20.0% Assumed GMIB Reinsurance Contracts 194 Discounted cash flow Lapse Rates 1.1% - 13.3% 0.7% - 22.2% 1.3% - 100% GWBL/GMWB 130 Discounted cash flow Lapse Rates 0.9% - 5.7% 0.0% - 7.0% 100% after delay 9.9% - 30.9% GIB (27 ) Discounted cash flow Lapse Rates 0.9% - 5.7% 0.0% - 7.0% 0.0% - 16.0% 9.9% - 30.9% GMAB 5 Discounted cash flow Lapse Rates 0.5% - 11.0% 9.9% - 30.9% Excluded from the tables above at March 31, 2018 and December 31, 2017 , respectively, are approximately $1,087 million and $948 million of Level 3 fair value measurements of investments for which the underlying quantitative inputs are not developed by the Company and are not readily available. The fair value measurements of these Level 3 investments comprise approximately 47.3 % and 44.0% of total assets classified as Level 3 and represent only 0.6 % and 0.5% of total assets measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017 , respectively. These investments primarily consist of certain privately placed debt securities with limited trading activity, including residential mortgage- and asset-backed instruments, and their fair values generally reflect unadjusted prices obtained from independent valuation service providers and indicative, non-binding quotes obtained from third-party broker-dealers recognized as market participants. Significant increases or decreases in the fair value amounts received from these pricing sources may result in the Company’s reporting significantly higher or lower fair value measurements for these Leve |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION See Note 2 , Significant Accounting Policies, Revenue Recognition, for descriptions of revenues presented in the table below and subject to contracts with customers determined to be in-scope of the new guidance. The table below presents the revenues recognized during the three months ended March 31, 2018 and 2017 , disaggregated by category: Three Months Ended March 31, 2018 2017 (in millions) Investment management, advisory and service fees: Base fees $ 724 $ 643 Performance-based fees 6 6 Research services 114 113 Distribution services 180 166 Other revenues: Shareholder services 20 18 Other 6 4 Total investment management and service fees $ 1,050 $ 950 Other income $ 112 $ 101 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS AXA Financial and AXA Equitable Life Plans AXA Equitable Life sponsors the AXA Equitable 401(k) Plan, a qualified defined contribution plan for eligible employees and financial professionals. The plan provides for both a company contribution and a discretionary profit-sharing contribution. Expenses associated with this 401(k) Plan were $9 million and $7 million in the three months ended March 31, 2018 and 2017 , respectively. AXA Financial sponsors the MONY Life Retirement Income Security Plan for Employees and AXA Equitable Life sponsors the AXA Equitable Retirement Plan (the “AXA Equitable Life QP”), both of which are frozen qualified defined benefit plans covering eligible employees and financial professionals. These pension plans are non-contributory and their benefits are generally based on a cash balance formula and/or, for certain participants, years of service and average earnings over a specified period in the plans. AXA Financial and AXA Equitable Life also sponsor certain nonqualified defined benefit plans. On March 13, 2018, the Company signed a binding agreement with a third party insurer to purchase two single premium, non-participating group annuity contracts with the intent of settling certain retiree liabilities under the MONY Life Retirement Income Security Plan for Employees and the AXA Equitable QP. Payment of the preliminary contribution amounts for the group annuity contracts was funded from plan assets on March 20, 2018, securing the third party insurer’s irrevocable assumption of certain benefits obligations and commitment to issue the group annuity contracts. The annuity purchase transaction and consequent transfer of approximately $254 million of the plans’ obligations to retirees or 10% of the aggregate pension benefit obligations resulted in a partial settlement of the plans. Following remeasurement of the plans’ assets and obligations on March 20, 2018, as required in the event of an accounting settlement, the Company recognized a pre-tax settlement loss of approximately $100 million , largely attributable to recognition of a pro-rata portion of the plans’ unamortized net actuarial losses accumulated in other comprehensive income. AB AB maintains the Profit Sharing Plan for Employees of AB, a tax-qualified retirement plan for U.S. employees. Employer contributions under this plan are discretionary and generally are limited to the amount deductible for Federal income tax purposes. AB also maintains a qualified, non-contributory, defined benefit retirement plan covering current and former employees who were employed by AB in the United States prior to October 2, 2000 (the “AB Plan”). Benefits under the AB Plan are based on years of credited service and average final base salary. Service and compensation after December 31, 2008 are not taken into account in determining participants’ retirement benefits. In the three months ended March 31, 2018 , a $5 million cash contribution was made by AB to the AB Plan. Based on the funded status of the AB plan at March 31, 2018 , no minimum contribution is required to be made in 2018 under ERISA, as amended by the Pension Act, but management is currently evaluating if it will make contributions for the remainder of 2018 . Funding Policy The Company’s funding policy for its qualified pension plans is to satisfy its funding obligations each year in an amount not less than the minimum required by the ERISA, as amended by the Pension Act, and not greater than the maximum it can deduct for Federal income tax purposes. Components of certain benefit costs for the Company were as follows: Three Months Ended March 31, 2018 2017 (in millions) Net Periodic Pension Expense: (Qualified and Non-qualified Plans) Service cost $ 2 $ 3 Interest cost 25 26 Expected return on assets (45 ) (43 ) Net amortization 29 32 Partial settlement 100 — Total $ 111 $ 18 Net Postretirement Benefits Costs: Service cost $ — $ — Interest cost 4 4 Net amortization 2 2 Total $ 6 $ 6 Net Postemployment Benefits Costs: Service cost $ 1 $ 1 Interest cost — — Net amortization — — Total $ 1 $ 1 |
SHARE-BASED COMPENSATION PROGRA
SHARE-BASED COMPENSATION PROGRAMS | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION PROGRAMS | SHARE-BASED COMPENSATION PROGRAMS AXA and the Company sponsor various share-based compensation plans for eligible employees, financial professionals and non-officer directors of Holdings and its subsidiaries. AB also sponsors its own equity compensation plan for certain of its employees. Compensation costs for the three months ended March 31, 2018 and 2017 for share-based payment arrangements as further described herein are as follows: Three Months Ended 2018 2017 (in thousands) Performance Shares $ 55 $ 5,710 Stock Options (Other than AB stock options) 114 19 Restricted Awards 12,484 7,693 Other compensation plans (1) (904 ) 293 Total Compensation Expenses $ 11,749 $ 13,715 (1) Other compensation plans include Restricted Stock and Stock Appreciation Rights. Performance Shares Settlement of second tranche of the 2014 Grant in 2018. On March 26, 2018, share distributions totaling approximately $21 million were made to active and former employees of in settlement of 0.8 million P erformance Shares earned under the terms of the AXA Performance Share Plan 2014 . On April 6, 2018, cash distributions of approximately $6 million were made to active and former financial professionals in settlement of 0.2 million Performance Units earned under the terms of the AXA Advisor Performance Unit Plan 2014 . AB Long-term Incentive Compensation Plans. During the three months ended March 31, 2018 and 2017 , respectively , AB purchased 0.1 million and 1.3 million units representing assignments of beneficial ownership of limited partnership interests in AB Holding (“AB Holding Units”) for $2 million and $31 million , respectively (on a trade date basis). There were no open-market purchases during the three months ended March 31, 2018 . The three months ended March 31, 2017 amount reflects open-market purchases of 1.2 million AB Holding Units for $28 million , with the remainder relating to purchases of AB Holding Units from employees to allow them to fulfill statutory tax withholding requirements at the time of distribution of long-term incentive compensation awards. During the three months ended March 31, 2018 and 2017 , AB granted to employees and eligible Directors 1.1 million and 1.1 million restricted Holding awards, respectively. In the three months ended March 31, 2018 and 2017 , AB used AB Holding Units repurchased during the period and newly issued AB Holding Units to fund the restricted AB Holding Unit awards. During the three months ended March 31, 2018 and 2017 , AB Holding issued 0.2 million and 0.3 million , respectively, upon exercise of options to buy AB Holding Units. AB Holding used the proceeds of $4 million and $5 million , respectively, received from employees as payment in cash for the exercise price to purchase the equivalent number of newly-issued AB Units. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense for the three months ended March 31, 2018 and 2017 was computed using an estimated annual effective tax rate (“ETR”). The estimated ETR is revised, as necessary, at the end of successive interim reporting periods. The Company adopted revised goodwill impairment guidance in the first quarter of 2017. Income tax expense for the three months ended March 31, 2017 includes an expense of $129 million related to the impairment of non-deductible goodwill. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company participates in certain cost sharing and service agreements with AXA and other non-consolidated affiliates, including technology, professional development and investment management agreements. The costs related to the cost sharing and service agreements are allocated based on methods that management believes are reasonable, including a review of the nature of such costs and the activities performed to support each company. There have been no material changes in these service agreements from those disclosed in the 2017 annual financial statements. In October 2012, AXA Financial issued a note denominated in Euros in the amount of €300 million or $391 million to AXA Belgium S.A. (“AXA Belgium”). This note had an interest rate of Europe Interbank Offered Rate (“EURIBOR”) plus 1.15% and a maturity date of October 23, 2017. Concurrently, AXA Financial entered into a swap with AXA covering the exchange rate on both the interest and principal payments related to this note. The interest rate on the swap was 6-month LIBOR plus 1.475% . In October 2017, the note was extended to March 30, 2018. The extended note has a floating interest rate of 1-month EURIBOR plus 0.06% with a minimum rate of 0% . Concurrently, AXA Financial entered into a swap with AXA covering the exchange rate on both the interest and principal payments related to the extended note until March 30, 2018. Both the loan and the swap were repaid on March 29, 2018. In 2017, Holdings repaid a $56 million 1.39% loan from AXA America Corporate Solutions, Inc. (“AXA CS”) originally made in 2015. In 2017, Holdings received a $100 million and $10 million loan from AXA CS. The loans had interest rates of 1.86% and 1.76% , respectively, and were repaid on their maturity date of February 5, 2018. Holdings formerly held 78.99% of the shares of AXA CS, which holds certain AXA U.S. P&C business. AXA CS and its subsidiaries have been excluded from the historical Consolidated Financial Statements since they were operated independently from the other Holdings subsidiaries. In March 2018, the legal transfer of the AXA CS shares to AXA was executed for $630 million , and is presented as an increase to Total equity attributable to Holdings. To anticipate this transfer, in the fourth quarter of 2017, AXA made a short-term loan of $622 million , 3-month LIBOR plus 0.439% margin to Holdings (the “ $622 Million Loan”). Holdings’ repayment obligation to AXA in respect of this loan was set off against AXA’s payment obligation to Holdings with respect to the transfer of AXA CS shares, and AXA paid Holdings the $8 million balance in cash. In September 2007, AXA received a $700 million 5.40% Senior Unsecured Note from AXA Equitable. The note pays interest semi-annually and was scheduled to mature on September 30, 2012. In March 2011, the maturity date of the note was extended to December 30, 2020 and the interest rate was increased to 5.70% . In January 2018, AXA pre-paid $50 million of the $700 million note. In December 2008, AXA received a $500 million term loan from AXA Financial. In December 2014, AXA repaid $300 million on this term loan to AXA Financial plus accrued interest. This term loan has an interest rate of 5.40% payable semi-annually with a maturity date of December 15, 2020. In January 2018, AXA pre-paid $150 million of the $500 million term loan. In December 2013, Colisée Re issued a $145 million 4.75% Senior Unsecured Note to Holdings. The loan was scheduled to mature on December 19, 2028. This loan was repaid on March 26, 2018. In March 2018, AXA Equitable Life sold its interest in two consolidated real estate joint ventures to AXA France for a total purchase price of approximately $143 million , which resulted in a pre-tax loss of $0.2 million and the reduction of $203 million of long-term debt on the Company’s balance sheet for the first quarter of 2018. In March 2018, AXA contributed the 0.5% noncontrolling interest in AXA Financial to Holdings, reflected as a $66 million capital contribution, resulting in AXA Financial being 100% owned by Holdings. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) AOCI represents cumulative gains (losses) on items that are not reflected in Net income (loss). The balances as of March 31, 2018 and 2017 follow: March 31, 2018 2017 (in millions) Unrealized gains (losses) on investments $ (130 ) $ 244 Foreign currency translation adjustments (40 ) (69 ) Defined benefit pension plans (822 ) (1,030 ) Total accumulated other comprehensive income (loss) (992 ) (855 ) Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest 46 64 Accumulated other comprehensive income (loss) attributable to Holdings $ (946 ) $ (791 ) The components of OCI, net of taxes for the three months ended March 31, 2018 and 2017 follow: Three Months Ended March 31, 2018 2017 (in millions) Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period $ (5 ) $ 8 (Gains) losses reclassified into net income (loss) during the period — — Foreign currency translation adjustment (5 ) 8 Net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period (86 ) 155 (Gains) losses reclassified into net income (loss) during the period (1) (1,223 ) (23 ) Net unrealized gains (losses) on investments (1,309 ) 132 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 349 (28 ) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(255) and $56) (960 ) 104 Change in defined benefit plans: Less: reclassification adjustments to net income (loss) for: Amortization of net actuarial (gains) losses included in: Amortization of net prior service cost included in net periodic cost 133 25 Change in defined benefit plans (net of deferred income tax expense (benefit) of $35 and $12) 133 25 Total other comprehensive income (loss), net of income taxes (832 ) 137 Less: Other comprehensive (income) loss attributable to noncontrolling interest (6 ) (7 ) Other comprehensive income (loss) attributable to Holdings $ (838 ) $ 130 (1) See “Reclassification adjustments” in Note 3 . Reclassification amounts presented net of income tax expense (benefit) of $(325) million and $(13) million , for the three months ended March 31, 2018 and 2017 , respectively. Investment gains and losses reclassified from AOCI to net income (loss) primarily consist of realized gains (losses) on sales and OTTI of AFS securities and are included in Total investment gains (losses), net on the consolidated statements of income (loss). Amounts reclassified from AOCI to net income (loss) as related to defined benefit plans primarily consist of amortizations of net (gains) losses and net prior service cost (credit) recognized as a component of net periodic cost and reported in Compensation and benefit expenses in the consolidated statements of income (loss). Amounts presented in the table above are net of tax. |
COMMITMENT AND CONTINGENT LIABI
COMMITMENT AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENT AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Litigation Litigation, regulatory and other loss contingencies arise in the ordinary course of the Company’s activities as a diversified financial services firm. The Company is a defendant in a number of litigation matters arising from the conduct of its business. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages and other relief. Claimants are not always required to specify the monetary damages they seek or they may be required only to state an amount sufficient to meet a court’s jurisdictional requirements. Moreover, some jurisdictions allow claimants to allege monetary damages that far exceed any reasonably possible verdict. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim. Litigation against the Company includes a variety of claims including, among other things, insurers’ sales practices, alleged agent misconduct, alleged failure to properly supervise agents, contract administration, product design, features and accompanying disclosure, cost of insurance increases, the use of captive reinsurers, payments of death benefits and the reporting and escheatment of unclaimed property, alleged breach of fiduciary duties, alleged mismanagement of client funds and other matters. As with other financial services companies, the Company periodically receives informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the Company or the financial services industry. It is the practice of the Company to cooperate fully in these matters. The outcome of a litigation or regulatory matter is difficult to predict and the amount or range of potential losses associated with these or other loss contingencies requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters, litigation and other loss contingencies. While it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company’s financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters, nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company’s litigation or regulatory matters, or liabilities arising from other loss contingencies, could, from time to time, have a material adverse effect upon the Company’s results of operations or cash flows in a particular quarterly or annual period. For some matters, the Company is able to estimate a possible range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company, however, believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses. As of March 31, 2018 , the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, to be up to approximately $90 million . For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company’s accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews. In July 2011, a derivative action was filed in the United States District Court for the District of New Jersey entitled Mary Ann Sivolella v. AXA Equitable Life Insurance Company and AXA Equitable Funds Management Group, LLC (“Sivolella Litigation”) and a substantially similar action was filed in January 2013 entitled Sanford et al. v. AXA Equitable FMG (“Sanford Litigation”). These lawsuits were filed on behalf of a total of twelve mutual funds and, among other things, seek recovery under (i) Section 36(b) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), for alleged excessive fees paid to AXA Equitable Life and AXA Equitable FMG for investment management services and administrative services and (ii) a variety of other theories including unjust enrichment. The Sivolella Litigation and the Sanford Litigation were consolidated and a 25 -day trial commenced in January 2016 and concluded in February 2016. In August 2016, the District Court issued its decision in favor of AXA Equitable Life and AXA Equitable FMG, finding that the plaintiffs had failed to meet their burden to demonstrate that AXA Equitable Life and AXA Equitable FMG breached their fiduciary duty in violation of Section 36(b) of the Investment Company Act or show any actual damages. In September 2016, the plaintiffs filed a motion to amend the District Court’s trial opinion and to amend or make new findings of fact and/or conclusions of law. In December 2016, the District Court issued an order denying the motion to amend and plaintiffs filed a notice to appeal the District Court’s decision to the U.S. Court of Appeals for the Third Circuit. We are vigorously defending this matter. In April 2014, a lawsuit was filed in the United States District Court for the Southern District of New York, now entitled Ross v. AXA Equitable Life Insurance Company. The lawsuit is a putative class action on behalf of all persons and entities that, between 2011 and March 11, 2014, directly or indirectly, purchased, renewed or paid premiums on life insurance policies issued by AXA Equitable Life (the “Policies”). The complaint alleges that AXA Equitable Life did not disclose in its New York statutory annual statements or elsewhere that the collateral for certain reinsurance transactions with affiliated reinsurance companies was supported by parental guarantees, an omission that allegedly caused AXA Equitable Life to misrepresent its “financial condition” and “legal reserve system.” The lawsuit seeks recovery under Section 4226 of the New York Insurance Law of all premiums paid by the class for the Policies during the relevant period. In July 2015, the Court granted AXA Equitable Life’s motion to dismiss for lack of subject matter jurisdiction. In April 2015, a second action in the United States District Court for the Southern District of New York was filed on behalf of a putative class of variable annuity holders with “Guaranteed Benefits Insurance Riders,” entitled Calvin W. Yarbrough, on behalf of himself and all others similarly situated v. AXA Equitable Life Insurance Company. The new action covers the same class period, makes substantially the same allegations, and seeks the same relief as the Ross action. In October 2015, the Court, on its own, dismissed the Yarbrough litigation on similar grounds as the Ross litigation. In December 2015, the Second Circuit denied the plaintiffs motion to consolidate their appeals but ordered that the appeals be heard together before a single panel of judges. In February 2017, the Second Circuit affirmed the decisions of the district court in favor of AXA Equitable Life, and that decision is now final because the plaintiffs failed to file a further appeal. In November 2014, a lawsuit was filed in the Superior Court of New Jersey, Camden County entitled Arlene Shuster, on behalf of herself and all others similarly situated v. AXA Equitable Life Insurance Company. This lawsuit is a putative class action on behalf of all AXA Equitable Life variable life insurance policyholders who allocated funds from their policy accounts to investments in AXA Equitable Life’s Separate Accounts, which were subsequently subjected to the volatility management strategy and who suffered injury as a result thereof. The action asserts that AXA Equitable Life breached its variable life insurance contracts by implementing the volatility management strategy. In February 2016, the Court dismissed the complaint. In March 2016, the plaintiff filed a notice of appeal. In April 2018, the Superior Court of New Jersey Appellate Division affirmed the trial court’s decision. In August 2015, another lawsuit was filed in Connecticut Superior Court, Judicial Division of New Haven entitled Richard T. O’Donnell, on behalf of himself and all others similarly situated v. AXA Equitable Life Insurance Company. This lawsuit is a putative class action on behalf of all persons who purchased variable annuities from AXA Equitable Life, which were subsequently subjected to the volatility management strategy and who suffered injury as a result thereof. Plaintiff asserts a claim for breach of contract alleging that AXA Equitable Life implemented the volatility management strategy in violation of applicable law. In November 2015, the Connecticut Federal District Court transferred this action to the United States District Court for the Southern District of New York. In March 2017, the Southern District of New York granted AXA Equitable Life’s motion to dismiss the complaint. In April 2017, the plaintiff filed a notice of appeal. In April 2018, the United States Court of Appeals for the Second Circuit reversed the trial court’s decision with instructions to remand the case to Connecticut state court. We are vigorously defending these matters. In February 2016, a lawsuit was filed in the United States District Court for the Southern District of New York entitled Brach Family Foundation, Inc. v. AXA Equitable Life Insurance Company. This lawsuit is a putative class action brought on behalf of all owners of universal life UL policies subject to AXA Equitable Life’s COI increase. In early 2016, AXA Equitable Life raised COI rates for certain UL policies issued between 2004 and 2007, which had both issue ages 70 and above and a current face value amount of $1 million and above. In March 2018, plaintiff amended its complaint to add two new plaintiffs, including the individual Malcolm Currie. The current complaint alleges the following claims: breach of contract; misrepresentations by AXA in violation of Section 4226 of the New York Insurance Law; violations of New York General Business Law Section 349; violations of the California Unfair Competition Law, and the California Elder Abuse Statute. Plaintiffs seek (a) compensatory damages, costs, and, pre- and post-judgment interest, (b) with respect to their claim concerning Section 4226, a penalty in the amount of premiums paid by the plaintiffs and the putative class, and (c) injunctive relief and attorneys’ fees in connection with their statutory claims. Seven individual actions challenging the COI increase are also pending against AXA Equitable Life in federal or state courts. They contain similar allegations as those in Brach as well as additional allegations for violations of various states’ consumer protection statutes and common law fraud. Pursuant to an October 2017 order, the putative class action and the four individual federal actions are consolidated for the purposes of coordinating pre-trial activities. We are in various stages of motion practice, and are vigorously defending each of these matters. Restructuring The restructuring costs and liabilities associated with the Company’s initiatives were as follows: Three Months Ended March 31, Twelve Months Ended December 31, 2018 2017 (in millions) Severance Balance, beginning of year $ 23 $ 22 Additions 7 17 Cash payments (3 ) (14 ) Other reductions — (2 ) Balance, end of Year $ 27 $ 23 Three Months Ended March 31, Twelve Months Ended December 31, 2018 2017 (in millions) Leases Balance, beginning of year $ 165 $ 170 Expense incurred — 29 Deferred rent 2 10 Payments made (11 ) (48 ) Interest accretion 1 4 Balance, end of year $ 157 $ 165 Obligation under funding agreements As a member of the FHLBNY, AXA Equitable Life has access to collateralized borrowings. It also may issue funding agreements to the FHLBNY. Both the collateralized borrowings and funding agreements would require AXA Equitable Life to pledge qualified mortgage-backed assets and/or government securities as collateral. AXA Equitable Life issues short-term funding agreements to the FHLBNY and uses the funds for asset liability and cash management purposes. AXA Equitable Life issues long-term funding agreements to the FHLBNY and uses the funds for spread lending purposes. For other instruments used for asset liability management purposes see “Derivative and offsetting assets and liabilities” included in Note 3 . Funding agreements are reported in Policyholders’ account balances in the consolidated balance sheets. Outstanding balance at end of period Maturity of Outstanding balance Issued during the period Repaid during the period March 31, 2018: (in millions) Short-term FHLBNY funding agreements $ 500 less than one month $ 1,500 $ 1,500 Long-term FHLBNY funding agreements 1,417 less than 4 years — — 204 Less than 5 years — — 879 greater than five years — — Total long-term funding agreements 2,500 — — Total FHLBNY funding agreements at March 31, 2018 $ 3,000 $ 1,500 $ 1,500 December 31, 2017: Short-term FHLBNY funding agreements $ 500 Less than one month $ 6,000 $ 6,000 Long-term FHLBNY funding agreements 1,244 Less than 4 years 324 — 377 Less than 5 years 303 — 879 Greater than five years 135 — Total long-term funding agreements 2,500 762 — Total FHLBNY funding agreements at December 31, 2017 $ 3,000 $ 6,762 $ 6,000 Letters of Credit Holdings had $4,489 million of undrawn letters of credit issued in favor of third party beneficiaries, including $4,260 million at AXA Arizona RE relating to reinsurance assumed from AXA Equitable Life, USFL and MLOA at March 31, 2018. Credit Facilities and Notes All existing credit facilities at December 31, 2017 with AXA or guaranteed by AXA have been terminated prior to the IPO settlement. In February 2018, Holdings entered into the following credit facilities: (i) a $3.9 billion two -year senior unsecured delayed draw term loan agreement; (ii) a $500 million three -year senior unsecured delayed draw term loan agreement; and (iii) a $2.5 billion five -year senior unsecured revolving credit facility with a syndicate of banks. In addition to the credit facilities, Holdings entered into letter of credit facilities with an aggregate principal amount of approximately $1.9 billion , primarily to be used to support our life insurance business reinsured to EQ AZ Life Re following the unwind of the reinsurance provided to AXA Equitable Life by AXA RE Arizona for certain variable annuities with GMxB features (the “GMxB Unwind”). As of March 31, 2018, there were no outstanding balances on these credit facilities. Other Commitments The Company had $812 million (including $262 million with affiliates) and $712 million of commitments under equity financing arrangements to certain limited partnership and existing mortgage loan agreements, respectively, at March 31, 2018. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company has four reportable segments: Individual Retirement, Group Retirement, Investment Management and Research and Protection Solutions. The Company changed its segment presentation in the fourth quarter 2017. The segment disclosures are based on the intention to provide the users of the financial statements with a view of the business from the Company’s perspective. As a result, the Company determined that it is more useful for a user of the financial statements to assess the historical performance on the basis which management currently evaluates the business. The reportable segments are based on the nature of the business activities, as they exist as of the initial filing date. These segments reflect the manner by which the Company’s chief operating decision maker views and manages the business. A brief description of these segments follows: • The Individual Retirement segment offers a diverse suite of variable annuity products which are primarily sold to affluent and high net worth individuals saving for retirement or seeking retirement income. • The Group Retirement segment offers tax-deferred investment and retirement plans to be sponsored by educational entities, municipalities and not-for-profit entities as well as small and medium-sized businesses. • The Investment Management and Research segment provides diversified investment management, research and related solutions globally to a broad range of clients through three main client channels- Institutional, Retail and Private Wealth Management-and distributes its institutional research products and solutions through Bernstein Research Services. • The Protection Solutions segment includes our life insurance and group employee benefits businesses. Our life insurance business offers a variety of variable universal life, universal life and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with their wealth protection, wealth transfer and corporate needs. Our group employee benefits business offers a suite of dental, vision, life, and short- and long-term disability and other insurance products to small and medium-size businesses across the United States. Measurement Operating earnings (loss) is the financial measure which primarily focuses on the Company’s segments’ results of operations as well as the underlying profitability of the Company’s core business. By excluding items that can be distortive and unpredictable such as investment gains (losses) and investment income (loss) from derivative instruments, the Company believes operating earnings (loss) by segment enhances the understanding of the Company’s underlying drivers of profitability and trends in the Company’s segments. In the first quarter of 2018, the Company revised its Operating earnings definition as it relates to the treatment of certain elements of the profitability of its variable annuity products with indexed-linked features to align to the treatment of its variable annuity products with GMxB features. In addition, adjustments for variable annuity products with index-linked features previously included within Other adjustments in the calculation of Non-GAAP Operating Earnings are now included with the adjustments for variable annuity products with GMxB features in the broader adjustment category, Variable annuity product features. In order to improve the consistency and comparability of the financial statements, management revised the Notes to the Consolidated Financial Statements for the six months ended June 30, 2017, nine months ended September 30, 2017 and the year ended December 31, 2017 to include the revisions discussed herein. See Note 17 to the Notes to Consolidated Financial Statements for details of the revisions. Operating earnings is calculated by adjusting each segment’s Net income (loss) attributable to Holdings for the following items: • Items related to Variable annuity product features which include certain changes in the fair value of the derivatives and other securities we use to hedge these features and changes in the fair value of the embedded derivatives of our GMxB riders reflected within Variable annuity products’ net derivative results; • Investment (gains) losses, which includes other-than-temporary impairments of securities, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances; • Goodwill impairment, which includes a write-down of goodwill in first quarter of 2017. • Net actuarial (gains) losses, which includes actuarial gains and losses as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period related to pension, other postretirement benefit obligations and one time settlement of gains and losses; • Other adjustments, which includes restructuring costs related to severance, lease write-offs related to non-recurring restructuring activities and separation costs; and • Income tax expense (benefit) related to the above items and non-recurring tax items, which includes the effect of uncertain tax positions for a given audit period, and permanent differences due to goodwill impairment and the Tax Reform Act. Revenues derived from any customer did not exceed 10% of revenues for the three months ended March 31, 2018 and 2017 . The table below presents operating earnings (loss) by segment and Corporate and Other and a reconciliation to Net income (loss) attributable to Holdings for the three months ended March 31, 2018 and 2017 , respectively: Three Months Ended March 31, 2018 2017 (in millions) Net income (loss) attributable to Holdings $ 168 $ (290 ) Adjustments related to: Variable annuity product features 212 291 Investment (gains) losses (102 ) 24 Goodwill impairment — 369 Net actuarial (gains) losses related to pension and other postretirement benefit obligations 131 34 Other adjustments 90 (21 ) Income tax expense (benefit) related to above adjustments (63 ) (235 ) Non-recurring tax items 28 132 Non-GAAP Operating Earnings $ 464 $ 304 Operating earnings (loss) by segment: Individual Retirement $ 360 $ 202 Group Retirement 76 59 Investment Management and Research 81 32 Protection Solutions 23 39 Corporate and Other (1) (76 ) (28 ) (1) Includes interest expense of $ 44 million and $ 31 million , for the three months ended March 31, 2018 and 2017 , respectively. Segment revenues are a measure of the Company’s revenue by segment as adjusted to exclude certain items. The following table reconciles segment revenues to Total revenues by excluding the following items: • Items related to variable annuity product features, which include certain changes in the fair value of the derivatives and other securities we use to hedge these features and changes in the fair value of the embedded derivatives reflected within the net derivative results of variable annuity product features; • Investment gains (losses), which include other-than-temporary impairments of securities, sales or disposals of securities/investments, realized capital gains/losses, and valuation allowances; and • Other adjustments, which includes the impact of adoption of revenue recognition standard ASC 606. The table below presents segment revenues for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 2017 (in millions) Segment revenues: Individual Retirement (1) $ 729 $ 1,019 Group Retirement (1) 238 227 Investment Management and Research (2) 909 743 Protection Solutions (1) 809 789 Corporate and Other (1) 288 340 Adjustments related to: Variable annuity product features (197 ) (287 ) Investment gains (losses) 102 (24 ) Other adjustments to segment revenues (43 ) 23 Total revenues $ 2,835 $ 2,830 (1) Includes investment expenses charged by AB of approximately $ 18 million and $ 17 million for the three months ended March 31, 2018 and 2017 , respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of approximately $ 25 million and $ 24 million for the three months ended March 31, 2018 and 2017 , respectively, are included in total revenues of the Investment Management and Research segment. The table below presents Total assets by segment as of March 31, 2018 and December 31, 2017 : March 31, December 31, (in millions) Total assets by segment: Individual Retirement $ 103,786 $ 121,723 Group Retirement 43,615 38,578 Investment Management and Research 11,809 8,297 Protection Solutions 51,457 43,116 Corporate and Other 21,627 23,934 Total assets $ 232,294 $ 235,648 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share (“EPS”) is calculated by dividing net income (loss) attributable to Holdings common shareholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is calculated by dividing the net income (loss) attributable to Holdings common shareholders adjusted for the incremental dilution from AB by the weighted-average number of common shares used in the basic EPS calculation. The following table presents the weighted average shares used in calculating basic and diluted earnings per common share: Three Months Ended March 31, 2018 2017 (in millions) Weighted Average Shares: Weighted average common stock outstanding for basic and diluted earnings per common share 561 561 The following table presents the reconciliation of the numerator for the basic and diluted net income per share calculations: Three Months Ended March 31, 2018 2017 (in millions) Net income (loss) attributable to Holdings common shareholders: Net income (loss) attributable to Holdings common shareholders (basic) $ 168 $ (290 ) Less: Incremental dilution from AB (1) — 1 Net income (loss) attributable to Holdings common shareholders (diluted) $ 168 $ (291 ) (1) The incremental dilution from AB represents the impact of AB’s dilutive units on the Company’s diluted earnings per share and is calculated based on the Company’s proportionate ownership interest in AB. The following table presents both basic and diluted income (loss) per share for each period presented: Three Months Ended March 31, 2018 2017 (dollars per share) Net income (loss) attributable to Holdings per common share: Basic $ 0.30 $ (0.52 ) Diluted $ 0.30 $ (0.52 ) |
REVISION OF PRIOR PERIOD FINANC
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS | REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS During the first quarter of 2018, management identified an error in its previously issued financial statements related to a misclassification between interest credited and net derivative gains/losses. The impact of this error to the consolidated financial statements for the six months ended June 30, 2017, nine months ended September 30, 2017 and the years ended December 31, 2017 and 2016 was not considered to be material. In order to improve the consistency and comparability of the financial statements, management revised the consolidated statements of income (loss) and statements of cash flows to include the revisions discussed herein. The following tables present line items for prior period financial statements that have been affected by the revisions. For these items, the tables detail the amounts as previously reported, the impact upon those line items due to the revisions, and the amounts as currently revised within the financial statements. Effects of the revision to the Company’s previously reported Consolidated Statements of Income (Loss) and Cash Flows for the six months ended June 30, 2017 Six Months Ended As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Income (Loss): Revenues: Net derivative gains (losses) $ 528 $ (34 ) $ 494 Total revenues 6,746 $ (34 ) 6,712 Benefits and other deductions: Interest credited to policyholders’ account balances $ 522 $ (34 ) $ 488 Total benefits and other deductions 6,299 $ (34 ) 6,265 Six Months Ended As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Cash Flows: Cash flow from operating activities: Interest credited to policyholders’ account balances $ 522 $ (34 ) $ 488 Net derivative (gains) loss (528 ) 34 (494 ) Net cash provided by (used in) operating activities 666 $ — 666 Effects of the revision to the Company’s previously reported Consolidated Statements of Income (Loss) and Cash Flows for the nine months ended September 30, 2017 Nine Months Ended As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Income (Loss): Revenues: Net derivative gains (losses) $ 172 $ (44 ) $ 128 Total revenues 9,529 $ (44 ) 9,485 Benefits and other deductions: Interest credited to Policyholders’ account balances $ 787 $ (44 ) $ 743 Total benefits and other deductions 9,070 $ (44 ) 9,026 Nine Months Ended As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Cash Flows: Cash flow from operating activities: Interest credited to policyholders’ account balances $ 787 $ (44 ) $ 743 Net derivative (gains) loss (172 ) 44 (128 ) Net cash provided by (used in) operating activities 1,044 $ — 1,044 Effects of the revision to the Company’s previously reported Consolidated Statements of Income (Loss), and Cash Flows for the year ended December 31, 2017 December 31, 2017 As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Income (Loss): Revenues: Net derivative gains (losses) $ 228 $ (113 ) $ 115 Total revenues 12,514 $ (113 ) 12,401 Benefits and other deductions: Interest credited to Policyholder’s account balances 1,108 $ (113 ) 995 Total benefits and other deductions 11,200 $ (113 ) 11,087 December 31, 2017 As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Cash Flows: Cash flow from operating activities: Interest credited to policyholders’ account balances $ 1,108 $ (113 ) $ 995 Net derivative (gains) loss (228 ) 113 (115 ) Net cash provided by (used in) operating activities 1,021 $ — 1,021 Effects of the revision to the Company’s previously reported Consolidated Statements of Income (Loss), and Cash Flows for the year ended December 31, 2016 December 31, 2016 As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Income (Loss): Revenues: Net derivative gains (losses) $ (1,722 ) $ (121 ) — $ (1,843 ) Total revenues 11,922 $ (121 ) 11,801 Benefits and other deductions: Interest credited to Policyholder’s account balances 1,091 $ (121 ) 970 Total benefits and other deductions 9,868 $ (121 ) 9,747 December 31, 2016 As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Cash Flows: Cash flow from operating activities: Interest credited to policyholders’ account balances $ 1,091 $ (121 ) $ 970 Net derivative (gains) loss 1,722 121 1,843 Net cash provided by (used in) operating activities (236 ) $ — (236 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In April 2018, Holdings entered into letter agreements with the lenders under each of its credit facilities and letter of credit facilities, and AXA Equitable Life entered into waiver letter agreements with certain of its derivative counterparties, waiving defaults caused by the restatement of certain financial statements. Holdings and AXA Equitable Life each restated their annual financial statements for the year ended December 31, 2016 and Holdings restated its interim financial statements for the nine months ended September 30, 2017 and the six months ended June 30, 2017. All required waivers were received and we do not consider this to have a material impact on our business, results of operations or financial condition. In April 2018, Colisee Re S.A.’s promise to the Delaware Department of Insurance to maintain the minimum RBC level for AXA Corporate Solutions Life Reinsurance Company at the company action level was terminated and replaced with a similar guarantee from Holdings. As a result of the completion of the GMxB Unwind on April 12, 2018, we were released from regulatory letter of credit requirements, and accordingly no longer benefit from the $1.5 billion revolving credit facility with AXA. On April 20, 2018, Holdings: • issued $800 million aggregate principal amount of 3.900% Senior Notes due 2023, $1.5 billion aggregate principal amount of 4.350% Senior Notes due 2028 and $1.5 billion aggregate principal amount of 5.000% Senior Notes due 2048 (together, the “Notes”); • delivered a termination notice, effective April 23, 2018, for its $3.9 billion two -year senior unsecured delayed draw term loan agreement; and • settled certain loans issued to or received from AXA and its affiliates resulting in a net payment to AXA and its affiliates of $2,530 million in principal and $11 million of accrued interest. On April 20, 2018, AXA pre-paid the remaining $650 million of a $700 million note and $50 million of a $500 million term loan and related accrued interest from the Company. On April 23, 2018, Holdings used a portion of the net proceeds from the sale of the Notes, together with available cash, to (i) purchase 100% of the shares of AXA IM Holdings US and (ii) purchase the AB Units held by Coliseum Re. The Company’s $185 million loan to AXA IM Holding US was settled as part of the purchase of AXA IM Holding US, which wholly owns AB units. The remaining net proceeds, together with the $300 million of borrowings drawn on May 4th, 2018 under our three -year term loan agreement, was used to fully repay the outstanding commercial paper program of AXA Financial currently guaranteed by AXA. By the time of the IPO, all the credit facilities Holdings and its subsidiaries previously had with AXA or guaranteed by AXA were terminated. On April 24, 2018, a 459.4752645 -for-1 stock split of the common stock of Holdings was effected. All applicable share data, per share amounts and related information in the consolidated financial statements and notes thereto have been adjusted retroactively to give effect to the stock split. On April 25, 2018, Holdings adopted the AXA Equitable Holdings, Inc. Short-Term Incentive Compensation Plan (the “STIC Plan”). Although the STIC Plan is not a share-based compensation plan, awards payable under the STIC Plan may be paid in cash or in awards granted under the AXA Equitable Holdings, Inc. 2018 Omnibus Incentive Plan (the “Omnibus Plan”), a share-based compensation plan. The Omnibus Plan was adopted by Holdings on May 8, 2018. On May 2, 2018, AB announced that it will establish its corporate headquarters in, and relocate approximately 1,050 jobs currently located in the New York metro area to, Nashville, TN. AB’s Nashville headquarters will house Finance, IT, Operations, Legal, Compliance, Internal Audit, Human Capital, and Sales and Marketing. AB will begin relocating jobs during 2018 and expects this transition to take several years. AB will continue to maintain a principal location in New York City, which will house its Portfolio Management, Sell-Side Research and Trading, and New York-based Private Wealth Management businesses. On May 4, 2018, Holdings borrowed $300 million under the $500 million three -year senior unsecured delayed draw term loan agreement. On May 9, 2018, Holdings amended and restated its Certificate of Incorporation under which the Board of Directors have the authority, without further action by stockholders, to issue up to 200,000,000 shares of preferred stock, par value $1.00 per share, in one or more series. On May 14, 2018, Holdings completed an initial public offering in which AXA sold 157,837,500 shares of Holdings’ common stock to the public. Following the initial public offering, AXA owned 423,750,000 shares of Holdings’ common stock. As of June 12th, there are no longer any amounts outstanding under AXA Financial’s commercial paper program and AXA will no longer provide any related guarantees. |
SIGNIFICANT ACCOUNTING POLICI28
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. |
Adoption of New Accounting Pronouncements and Future Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance that revises the recognition criteria for revenue arising from contracts with customers to provide goods or services, except when those revenue streams are from insurance and investment contracts, leases, rights and obligations that are in the scope of certain financial instruments (i.e., derivative contracts) and guarantees other than product or service warranties, for which existing revenue recognition requirements are not superseded by this guidance. On January 1, 2018, the Company adopted the new revenue recognition guidance on a modified retrospective basis and is providing in its first quarter 2018 reporting the additional disclosures required by the new standard. Adoption of this new guidance did not change the amounts or timing of the Company’s revenue recognition for base investment management and advisory fees, distribution revenues, shareholder servicing revenues, and broker-dealer revenues. However, some performance-based fees and carried-interest distributions that prior to adoption were recognized when no risk of reversal remained, in certain instances under the new standard may be recognized earlier if it is probable that significant reversal will not occur. As a result, on January 1, 2018, the Company recognized a cumulative effect adjustment, net of tax, to increase opening equity attributable to Holdings and the noncontrolling interest by approximately $13 million and $19 million , respectively, reflecting the impact of carried-interest distributions previously received by AB of approximately $78 million , net of revenue sharing payments to investment team members of approximately $43 million , for which it is probable that significant reversal will not occur and for which incremental tax is provided at Holdings. In January 2016, the FASB issued new guidance related to the recognition and measurement of financial assets and financial liabilities. The new guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale (“AFS”) debt securities. The new guidance requires equity investments in unconsolidated entities, except those accounted for under the equity method, to be measured at fair value through earnings, thereby eliminating the AFS classification for equity securities with readily determinable fair values for which changes in fair value currently are reported in Accumulated Other Comprehensive Income (Loss) (“AOCI”). On January 1, 2018, the Company adopted the new recognition requirements on a modified retrospective basis for changes in the fair value of AFS equity securities, resulting in no material reclassification adjustment from AOCI to opening retained earnings for the net unrealized gains, net of tax, related to approximately $46 million common stock securities and eliminated their designation as AFS equity securities. The new guidance does not apply to FHLB common stock and prohibits such investments from being classified as equity securities subject to the new guidance. Accordingly, the Company has classified its investment in the FHLB common stock as other invested assets at March 31, 2018. The Company’s investment assets held in the form of equity interests in unconsolidated entities, such as limited partnerships and limited liability companies, including hedge funds, private equity funds, and real estate-related funds, generally are accounted for under the equity method and were not impacted by this new guidance. The Company does not currently report any of its financial liabilities under the fair value option. In March 2017, the FASB issued new guidance on the presentation of net periodic pension and post-retirement benefit costs that requires retrospective disaggregation of the service cost component from the other components of net benefit costs on the income statement. The service cost component is required to be presented with other employee compensation costs in “income from operations,” and the remaining components are to be reported separately outside of income from operations. While this standard did not change how net periodic pension and post-retirement benefit costs are measured, it limits the amount eligible for capitalization on a prospective basis to the service cost component. On January 1, 2018, the Company adopted the change in the income statement presentation utilizing the practical expedient for determining the historical components of net benefit costs, resulting in no material impact to the consolidated financial statements. In addition, no changes to the Company’s capitalization policies with respect to benefit costs resulted from the adoption of the new guidance. In May 2017, the FASB issued guidance on share-based payments. The amendment provides clarity intended to reduce diversity in practice and the cost and complexity of accounting for changes to the terms or conditions of share-based payment awards. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and requires prospective application to awards modified on or after the date of adoption. Adoption of this amendment on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued new guidance to simplify elements of cash flow classification. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and requires application of a retrospective transition method. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Future Adoption of New Accounting Pronouncements In February 2018, the FASB issued new guidance that will permit, but not require, entities to reclassify to retained earnings tax effects “stranded” in AOCI resulting from the change in federal tax rate enacted by the Tax Cuts and Jobs Act (the “Tax Reform Act”) on December 22, 2017. An entity that elects this option must reclassify these stranded tax effects for all items in AOCI, including, but not limited to, AFS securities and employee benefits. Tax effects stranded in AOCI for other reasons, such as prior changes in tax law, may not be reclassified. While the new guidance provides entities the option to reclassify these amounts, new disclosures are required regardless of whether entities elect to do so. The new guidance is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. Election can be made either to apply the new guidance retrospectively to each period in which the effect of the Tax Reform Act is recognized or in the period of adoption. Management currently is evaluating the options provided for adopting this guidance and the potential impacts on the Company’s consolidated financial statements. In August 2017, the FASB issued new guidance on accounting for hedging activities, intended to more closely align the financial statement reporting of hedging relationships to the economic results of an entity’s risk management activities. In addition, the new guidance makes certain targeted modifications to simplify the application of current hedge accounting guidance. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early application permitted. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption (that is, the initial application date). All transition requirements and elections should be applied to derivatives positions and hedging relationships existing on the date of adoption. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In March 2017, the FASB issued guidance that requires certain premiums on callable debt securities to be amortized to the earliest call date and is intended to better align interest income recognition with the manner in which market participants price these instruments. The new guidance is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted and is to be applied on a modified retrospective basis. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In June 2016, the FASB issued new guidance related to the accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new guidance is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for annual periods beginning after December 15, 2018. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In February 2016, the FASB issued revised guidance to lease accounting that will require lessees to recognize on the balance sheet a “right-of-use” asset and a lease liability for virtually all lease arrangements, including those embedded in other contracts. The new lease accounting model will continue to distinguish between capital and operating leases. The current straight-line pattern for the recognition of rent expense on an operating lease is expected to remain substantially unchanged by the new guidance but instead will be comprised of amortization of the right-of-use asset and interest cost on the related lease obligation, thereby resulting in an income statement presentation similar to a financing arrangement or capital lease. Lessor accounting will remain substantially unchanged from the current model but has been updated to align with certain changes made to the lessee model. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The transition provisions require application on a modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements (that is, January 1, 2017). Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing lease contracts and arrangements. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. |
Revenue Recognition | Revenue Recognition Investment Management and Service Fees and Related Expenses Reported as Investment management and service fees in the Company’s consolidated statements of income (loss) are investment advisory and service fees, distribution revenues, and institutional research services revenues principally emerging from the Investment Management and Research segment. Also included are investment management and administrative service fees earned by AXA Equitable Funds Management Group, LLC (“AXA Equitable FMG”) and reported in the Retirement and Protection segments as well as certain asset-based fees associated with insurance contracts. Investment management, advisory, and service fees AB provides asset management services by managing customer assets and seeking to deliver returns to investors. Similarly, AXA Equitable FMG provides investment management and administrative services, such as fund accounting and compliance services, to AXA Premier VIP Trust (“VIP Trust”), EQ Advisors Trust (“EQAT”) and 1290 Funds as well as two private investment trusts established in the Cayman Islands, AXA Allocation Funds Trust and AXA Offshore Multimanager Funds Trust (collectively, the “Other AXA Trusts”). The contracts supporting these revenue streams create a distinct, separately identifiable performance obligation for each day the assets are managed for the performance of a series of services that are substantially the same and have the same pattern of transfer to the customer. Accordingly, these investment management, advisory, and administrative service base fees are recorded over time as services are performed and entitle the Company to variable consideration. Base fees, generally calculated as a percentage of assets under management (“AUM”), are recognized as revenue at month-end when the transaction price no longer is variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur. Certain investment advisory contracts of AB, including those associated with hedge funds or other alternative investments, provide for a performance-based fee (including carried interest), in addition to a base advisory fee, calculated either as a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. These performance-based fees are forms of variable consideration and, therefore, are excluded from the transaction price until it becomes probable there will not be significant reversal of the cumulative revenue recognized. At each reporting date, the Company evaluates constraining factors surrounding the variable consideration to determine the extent to which, if any, revenues associated with the performance-based fee can be recognized. Constraining factors impacting the amount of variable consideration included in the transaction price include contractual claw-back provisions, the length of time of the uncertainty, the number and range of possible amounts, the probability of significant fluctuations in fund’s market value, and the level in which the fund’s value exceeds the contractual threshold required to earn such a fee and the materiality of the amount being evaluated. Prior to adoption of the new revenue recognition guidance on January 1, 2018, the Company recognized performance-based fees at the end of the applicable measurement period when no risk of reversal remained, and carried-interest distributions received as deferred revenues until no risk of reversal remained. Sub-advisory and sub-administrative expenses associated with these services are calculated and recorded as the related services are performed in Other operating costs and expense in the consolidated statements of income (loss) as the Company is acting in a principal capacity in these transactions and, as such, reflects these revenues and expenses on a gross basis. Research services Research services revenue principally consists of brokerage transaction charges received by Sanford C. Bernstein & Co. LLC (“SCB LLC”) and Sanford C. Bernstein Limited (“SCBL”) for providing equity research services to institutional clients. Brokerage commissions for trade execution services and related expenses are recorded on a trade-date basis when the performance obligations are satisfied. Generally, the transaction price is agreed upon at the point of each trade and based upon the number of shares traded or the value of the consideration traded. Research revenues are recognized when the transaction price is quantified, collectability is assured, and significant reversal of such revenue is not probable. Distribution services Revenues from distribution services include fees received as partial reimbursement of expenses incurred in connection with the sale of certain AB sponsored mutual funds and the 1290 Funds and for the distribution primarily of EQAT and VIP Trust shares to separate accounts in connection with the sale of variable life and annuity contracts. The amount and timing of revenues recognized from performance of these distribution services often is dependent upon the contractual arrangements with the customer and the specific product sold as further described below. Most open-end management investment companies, such as U.S. funds and the EQAT and VIP Trusts and the 1290 Funds, have adopted a plan under Rule 12b-1 of the Investment Company Act that allows for certain share classes to pay out of assets, distribution and service fees for the distribution and sale of its shares (“12b-1 Fees”). These open-end management investment companies have such agreements with the Company, and the Company has selling and distribution agreements pursuant to which it pays sales commissions to the financial intermediaries that distribute the shares. These agreements may be terminated by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of shares. The Company records 12b-1 fees monthly based upon a percentage of the net asset value (“NAV”) of the funds. At month-end, the variable consideration of the transaction price is no longer constrained as the NAV can be calculated and the value of consideration is determined. These services are separate and distinct from other asset management services as the customer can benefit from these services independently of other services. The Company accrues the corresponding 12b-1 fees paid to sub-distributors monthly as the expenses are incurred. The Company is acting in a principal capacity in these transactions; as such, these revenues and expenses are recorded on a gross basis in the consolidated statements of income (loss). AB sponsored mutual funds offer back-end load shares in limited instances and charge the investor a contingent deferred sales charge (“CDSC”) if the investment is redeemed within a certain period. The variable consideration for these contracts is contingent upon the timing of the redemption by the investor and the value of the sales proceeds. Due to these constraining factors, the Company excludes the CDSC fee from the transaction price until the investor redeems the investment. Upon redemption, the cash consideration received for these contractual arrangements is recorded as a reduction of unamortized deferred sales commissions. AB’s Luxembourg subsidiary, the management company for most of its non-U.S. funds, earns a management fee which is accrued daily and paid monthly, at an annual rate, based on the average daily net assets of the fund. With respect to certain share classes, the management fee also may contain a component paid to distributors and other financial intermediaries and service providers to cover shareholder servicing and other administrative expenses (also referred to as an “All-in-Fee”). Based on the conclusion that asset management is distinct from distribution, the Company allocates a portion of the investment and advisory fee to distribution revenues for the servicing component based on standalone selling prices. Other revenues Also reported as Investment management and service fees in the Company’s consolidated statements of income (loss) are other revenues from contracts with customers, primarily consisting of shareholder servicing fees, mutual fund reimbursements, and other brokerage income. Shareholder services, including transfer agency, administration, and record-keeping are provided by AB to company-sponsored mutual funds. The consideration for these services is based on a percentage of the NAV of the fund or a fixed-fee based on the number of shareholder accounts being serviced. The revenues are recorded at month-end when the constraining factors involved with determining NAV or the numbers of shareholders’ accounts are resolved. Other income Revenues from contracts with customers reported as Other income in the Company’s consolidated statements of income (loss) primarily consist of advisory account fees and brokerage commissions from the Company’s subsidiary broker-dealer operations and sales commissions from the Company’s general agent for the distribution of non-affiliate insurers’ life insurance and annuity products. These revenues are recognized at month-end when constraining factors, such as AUM and product mix, are resolved and the transaction pricing no longer is variable such that the value of consideration can be determined. Contract assets and liabilities The Company applies the practical expedient for contracts that have an original duration of one year or less. Accordingly, the Company accrues the incremental costs of obtaining a contract when incurred and does not consider the time value of money. At March 31, 2018, there are no material balances of contract assets and contract liabilities; as such, no further disclosures are necessary. |
Accounting and Consolidation of VIEs | Accounting and Consolidation of VIEs A VIE must be consolidated by its primary beneficiary, which generally is defined as the party that has a controlling financial interest in the VIE. The Company is deemed to have a controlling financial interest in a VIE if it has (i) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE or the right to receive income from the VIE that potentially could be significant to the VIE. For purposes of evaluating (ii) above, fees paid to the Company as a decision maker or service provider are excluded if the fees are compensation for services provided commensurate with the level of effort required to be performed and the arrangement includes only customary terms, conditions or amounts present in arrangements for similar services negotiated at arm’s length. If the Company has a variable interest in an entity that is determined not to be a VIE, the entity then is evaluated for consolidation under the voting interest entity (“VOE”) model. For limited partnerships and similar entities, the Company is deemed to have a controlling financial interest in a VOE, and would be required to consolidate the entity, if the Company owns a majority of the entity’s kick-out rights through voting limited partnership interests and other limited partners do not hold substantive participating rights (or other rights that would indicate that the Company does not control the entity). For entities other than limited partnerships, the Company is deemed to have a controlling financial interest in a VOE if it owns a majority voting interest in the entity. The analysis performed to identify variable interests held, determine whether entities are VIEs or VOEs, and evaluate whether the Company has a controlling financial interest in such entities requires the exercise of judgment and is updated on a continuous basis as circumstances change or new entities are developed. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, including consideration of economic interests in the VIE held directly and indirectly through related parties and entities under common control, as well as quantitatively, as appropriate. |
Revision of Prior Period Financial Statements | Revision of Prior Period Financial Statements During the first quarter of 2018, management identified an error in its previously issued financial statements related to a misclassification between interest credited and net derivative gains/losses. The impact of this error to the consolidated financial statements for the six months ended June 30, 2017, nine months ended September 30, 2017 and the years ended December 31, 2017 and 2016 was not considered to be material. In order to improve the consistency and comparability of the financial statements, management revised the consolidated statements of income (loss) and statements of cash flows to include the revisions discussed herein. |
Fair Value Measurement | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance established a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. The Company uses unadjusted quoted market prices to measure the fair value of instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities by Classification | The following table provides information relating to fixed maturities securities classified as AFS: Available-for-Sale Securities by Classification Amortized Gross Unrealized Gross Unrealized Fair OTTI (3) (in millions) March 31, 2018: Fixed Maturity Securities: Public corporate $ 18,513 $ 501 $ 298 $ 18,716 $ — Private corporate 7,394 117 107 7,404 — U.S. Treasury, government and agency 14,772 387 506 14,653 — States and political subdivisions 422 56 1 477 — Foreign governments 405 23 9 419 — Residential mortgage-backed (1) 614 16 3 627 — Asset-backed (2) 675 4 4 675 2 Redeemable preferred stock 473 44 4 513 — Total at March 31, 2018 $ 43,268 $ 1,148 $ 932 $ 43,484 $ 2 As a result of the adoption of the Recognition and Measurement of Financial Assets and Financial Liabilities standard on January 1, 2018 (Financial Instruments Recognition and Measurement Standard), equity securities are no longer classified and accounted for as available for sale securities. Amortized Gross Unrealized Gross Unrealized Fair OTTI (3) (in millions) December 31, 2017: Fixed Maturity Securities: Public corporate $ 17,181 $ 806 $ 33 $ 17,954 $ — Private corporate 7,299 225 32 7,492 — U.S. Treasury, government and agency 17,759 1,000 251 18,508 — States and political subdivisions 422 67 — 489 — Foreign governments 395 29 5 419 — Residential mortgage-backed (1) 797 22 1 818 — Asset-backed (2) 745 5 1 749 2 Redeemable preferred stock 470 43 1 512 — Total Fixed Maturities 45,068 2,197 324 46,941 2 Equity securities 188 2 — 190 — Total at December 31, 2017 $ 45,256 $ 2,199 $ 324 $ 47,131 $ 2 (1) Includes publicly traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (3) Amounts represent OTTI losses in AOCI, which were not included in income (loss) in accordance with current accounting guidance. |
Available-for-sale Securities Fixed Maturities Contractual Maturities | The contractual maturities of AFS fixed maturities at March 31, 2018 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Fixed Maturities Contractual Maturities at March 31, 2018 Amortized Cost Fair Value (in millions) Due in one year or less $ 2,499 $ 2,517 Due in years two through five 8,727 8,862 Due in years six through ten 13,290 13,114 Due after ten years 16,990 17,176 Subtotal 41,506 41,669 Residential mortgage-backed securities 614 627 Asset-backed securities 675 675 Redeemable preferred stock 473 513 Total $ 43,268 $ 43,484 |
Proceeds from Sales, Gross Gains (Losses) and OTTI for AFS Fixed Maturities | The following table shows proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities during the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 2017 (in millions) Proceeds from sales $ 3,880 $ 440 Gross gains on sales $ 155 $ 25 Gross losses on sales $ (52 ) $ (23 ) Total OTTI $ — $ — Non-credit losses recognized in OCI — — Credit losses recognized in net income (loss) $ — $ — |
Fixed Maturities - Credit Loss Impairments | The following table sets forth the amount of credit loss impairments on fixed maturity securities held by the Company at the dates indicated and the corresponding changes in such amounts: Fixed Maturities - Credit Loss Impairments Three Months Ended March 31, 2018 2017 (in millions) Balances, beginning of period $ (18 ) $ (239 ) Previously recognized impairments on securities that matured, paid, prepaid or sold — 55 Recognized impairments on securities impaired to fair value this period (1) — — Impairments recognized this period on securities not previously impaired — — Additional impairments this period on securities previously impaired — — Increases due to passage of time on previously recorded credit losses — — Accretion of previously recognized impairments due to increases in expected cash flows — — Balances at March 31, $ (18 ) $ (184 ) (1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. |
Net Unrealized Gain (Loss) on Fixed Maturities and Equity Securities Included in AOCI | Net unrealized investment gains (losses) on fixed maturities and equity securities classified as AFS are included in the consolidated balance sheets as a component of AOCI. The table below presents these amounts as of the dates indicated: March 31, December 31, 2017 (in millions) AFS Securities: Fixed maturities: With OTTI loss $ — $ 2 All other 216 1,871 Equity securities — 2 Net Unrealized Gains (Losses) $ 216 $ 1,875 |
Net Unrealized Gain (Losses) on Fixed Maturities with OTTI Losses | The tables that follow below present a rollforward of net unrealized investment gains (losses) recognized in AOCI, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized and all other: Net Unrealized Gains (Losses) on Fixed Maturities with OTTI Losses Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balance, January 1, 2018 $ 2 $ — $ (1 ) $ (7 ) $ (6 ) Net investment gains (losses) arising during the period — — — — — Reclassification adjustment for OTTI losses: Included in Net income (loss) (2 ) — — — (2 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — — — — — Deferred income taxes — — — 7 7 Policyholders’ liabilities — — 1 — 1 Balance, March 31, 2018 $ — $ — $ — $ — $ — Balance, January 1, 2017 $ 19 $ 1 $ (10 ) $ (4 ) $ 6 Net investment gains (losses) arising during the period 63 — — — 63 Reclassification adjustment for OTTI losses: Included in Net income (loss) (65 ) — — — (65 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (4 ) — — (4 ) Deferred income taxes — — — — — Policyholders’ liabilities — — 6 — 6 Balance, March 31, 2017 $ 17 $ (3 ) $ (4 ) $ (4 ) $ 6 (1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in income (loss) for securities with no prior OTTI loss. |
All Other Net Unrealized Investment Gains (Losses) in AOCI | All Other Net Unrealized Investment Gains (Losses) In AOCI Net DAC Policyholders’ Deferred AOCI Gain (in millions) Balance, January 1, 2018 $ 1,871 $ (358 ) $ (238 ) $ (383 ) $ 892 Net investment gains (losses) arising during the period (109 ) — — — (109 ) Reclassification adjustment for OTTI losses: Included in Net income (loss) (1,546 ) — — — (1,546 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 341 — — 341 Deferred income taxes — — — 239 239 Policyholders’ liabilities — — 110 — 110 Balance, March 31, 2018 $ 216 $ (17 ) $ (128 ) $ (144 ) $ (73 ) Balance, January 1, 2017 $ 528 $ (45 ) $ (192 ) $ (95 ) $ 196 Net investment gains (losses) arising during the period 176 — — — 176 Reclassification adjustment for OTTI losses: Included in Net income (loss) 29 — — — 29 Excluded from Net income (loss) (1) — — — — Impact of net unrealized investment gains (losses) on: DAC — (68 ) — — (68 ) Deferred income taxes — — — (60 ) (60 ) Policyholders’ liabilities — — 14 — 14 Balance, March 31, 2017 $ 733 $ (113 ) $ (178 ) $ (155 ) $ 287 (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in income (loss) for securities with no prior OTTI loss. |
Schedule of Gross Unrealized Loss on Investments | The following tables disclose the fair values and gross unrealized losses of the 1,411 issues at March 31, 2018 and the 752 issues at December 31, 2017 of fixed maturities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated: Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) March 31, 2018: Fixed Maturity Securities: Public corporate $ 8,539 $ 263 $ 605 $ 35 $ 9,144 $ 298 Private corporate 2,457 63 660 44 3,117 107 U.S. Treasury, government and agency 3,129 81 4,325 425 7,454 506 States and political subdivisions 19 1 — — 19 1 Foreign governments 57 2 70 7 127 9 Residential mortgage-backed 145 2 76 1 221 3 Asset-backed 81 4 1 — 82 4 Redeemable preferred stock 116 2 12 2 128 4 Total $ 14,543 $ 418 $ 5,749 $ 514 $ 20,292 $ 932 December 31, 2017: Fixed Maturity Securities: Public corporate $ 2,123 $ 15 $ 690 $ 18 $ 2,813 $ 33 Private corporate 780 8 641 24 1,421 32 U.S. Treasury, government and agency 2,718 6 4,506 245 7,224 251 States and political subdivisions 20 — — — 20 — Foreign governments 11 — 73 5 84 5 Residential mortgage-backed 62 — 76 1 138 1 Asset-backed 15 1 12 — 27 1 Redeemable preferred stock 10 — 13 1 23 1 Total $ 5,739 $ 30 $ 6,011 $ 294 $ 11,750 $ 324 |
Net Investment Income (Loss) from Trading Securities | Net Investment Income (Loss) from Trading Securities Three Months Ended March 31, 2018 2017 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (121 ) $ 87 Net investment gains (losses) recognized on securities sold during the period 1 4 Unrealized and realized gains (losses) on trading securities arising during the period (120 ) 91 Interest and dividend income from trading securities 76 63 Net investment income (loss) from trading securities $ (44 ) $ 154 |
Valuation Allowance for Mortgage Loans | Allowance for credit losses for mortgage loans for the first quarters of 2018 and 2017 are as follows: Three Months Ended March 31, 2018 2017 (in millions) Allowance for credit losses: Beginning balance, January 1, $ 8 $ 8 Charge-offs — — Recoveries (1 ) — Provision — — Ending balance, March 31, $ 7 $ 8 March 31, Individually Evaluated for Impairment $ 7 $ 8 |
Mortgage Loans by Loan-To-Value and Debt Service Coverage Ratios | The following tables provide information relating to the loan-to-value and debt service coverage ratios for commercial and agricultural mortgage loans at March 31, 2018 and December 31, 2017 . The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios March 31, 2018 Debt Service Coverage Ratio (1) Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x Total Mortgage Loans (in millions) Commercial Mortgage Loans (1) 0% - 50% $ 737 $ 21 $ 321 $ 73 $ — $ — $ 1,152 50% - 70% 4,477 643 1,122 399 178 — 6,819 70% - 90% 169 110 144 307 27 — 757 90% plus — — 27 — — — 27 Total Commercial Mortgage Loans $ 5,383 $ 774 $ 1,614 $ 779 $ 205 $ — $ 8,755 Agricultural Mortgage Loans (1) 0% - 50% $ 275 $ 153 $ 276 $ 496 $ 321 $ 29 $ 1,550 50% - 70% 111 46 219 360 228 48 1,012 70% - 90% — — — 23 — — 23 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 386 $ 199 $ 495 $ 879 $ 549 $ 77 $ 2,585 Total Mortgage Loans (1) 0% - 50% $ 1,012 $ 174 $ 597 $ 569 $ 321 $ 29 $ 2,702 50% - 70% 4,588 689 1,341 759 406 48 7,831 70% - 90% 169 110 144 330 27 — 780 90% plus — — 27 — — — 27 Total Mortgage Loans $ 5,769 $ 973 $ 2,109 $ 1,658 $ 754 $ 77 $ 11,340 (1) The debt service coverage ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (2) The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios December 31, 2017 Debt Service Coverage Ratio (1) Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to1.5x 1.0x to 1.2x Less than 1.0x Total Mortgage Loans (in millions) Commercial Mortgage Loans (1) 0% - 50% $ 759 $ — $ 320 $ 74 $ — $ — $ 1,153 50% - 70% 4,088 682 1,066 428 145 — 6,409 70% - 90% 169 110 196 272 50 — 797 90% plus — — 27 — — — 27 Total Commercial Mortgage Loans $ 5,016 $ 792 $ 1,609 $ 774 $ 195 $ — $ 8,386 Agricultural Mortgage Loans (1) 0% - 50% $ 272 $ 149 $ 275 $ 515 $ 316 $ 30 $ 1,557 50% - 70% 111 46 227 359 221 49 1,013 70% - 90% — — — 4 — — 4 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 383 $ 195 $ 502 $ 878 $ 537 $ 79 $ 2,574 Total Mortgage Loans (1) 0% - 50% $ 1,031 $ 149 $ 595 $ 589 $ 316 $ 30 $ 2,710 50% - 70% 4,199 728 1,293 787 366 49 7,422 70% - 90% 169 110 196 276 50 — 801 90% plus — — 27 — — — 27 Total Mortgage Loans $ 5,399 $ 987 $ 2,111 $ 1,652 $ 732 $ 79 $ 10,960 (1) The debt service coverage ratio is calculated using the most recently reported operating income results from property operations divid ed by annual debt service. (2) The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. |
Age Analysis of Past Due Mortgage Loans | The following table provides information relating to the aging analysis of past due mortgage loans at March 31, 2018 and December 31, 2017 , respectively. Age Analysis of Past Due Mortgage Loan 30-59 Days 60-89 Days 90 Days or > Total Current Total Financing Receivables Recorded Investment 90 Days or > and Accruing (in millions) March 31, 2018 Commercial $ — $ — $ 27 $ 27 $ 8,728 $ 8,755 $ — Agricultural 10 5 39 54 2,531 2,585 39 Total Mortgage Loans $ 10 $ 5 $ 66 $ 81 $ 11,259 $ 11,340 $ 39 December 31, 2017 Commercial $ 27 $ — $ — $ 27 $ 8,359 $ 8,386 $ — Agricultural 49 3 22 74 2,500 2,574 22 Total Mortgage Loans $ 76 $ 3 $ 22 $ 101 $ 10,859 $ 10,960 $ 22 |
Impaired Mortgage Loans | The following table provides information relating to impaired mortgage loans at March 31, 2018 and December 31, 2017 , respectively. Impaired Mortgage Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (1) Interest Income Recognized (in millions) March 31, 2018: With no related allowance recorded: Commercial mortgage loans - other $ — $ — $ — $ — $ — Agricultural mortgage loans — — — — — Total $ — $ — $ — $ — $ — With related allowance recorded: Commercial mortgage loans - other $ 27 $ 27 $ (7 ) $ 27 $ — Agricultural mortgage loans — — — — — Total $ 27 $ 27 $ (7 ) $ 27 $ — December 31, 2017: With no related allowance recorded: Commercial mortgage loans - other $ — $ — $ — $ — $ — Agricultural mortgage loans — — — — — Total $ — $ — $ — $ — $ — With related allowance recorded: Commercial mortgage loans - other $ 27 $ 27 $ (8 ) $ 27 $ 2 Agricultural mortgage loans — — — — — Total $ 27 $ 27 $ (8 ) $ 27 $ 2 (1) Represents a two-quarter average of recorded amortized cost. |
Derivative Instruments by Category | The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments. Derivative Instruments by Category At March 31, 2018 Gains (Losses) Reported In Net Income (Loss) Three Months Ended March 31, 2018 Fair Value Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding derivatives: Equity contracts: (1) Futures $ 6,629 $ 2 $ 1 $ (23 ) Swaps 8,017 255 16 114 Options 23,013 3,350 1,411 (18 ) Interest rate contracts: (1) Swaps 29,331 555 395 (671 ) Futures 24,015 — — 40 Credit contracts: (1) Credit default swaps 2,136 32 3 — Other freestanding contracts: (1) Foreign currency contracts 1,781 10 52 (51 ) Margin — 62 57 — Collateral — 17 2,208 — Embedded derivatives: GMIB reinsurance contracts (6) — 1,734 — (159 ) GMxB derivative features liability (3,6) — — 3,977 460 SCS, SIO, MSO and IUL indexed features (5,6) — — 1,683 27 Net derivative investment gains (loss) (281 ) Cross currency swaps (2,4) — — — 9 Total $ 94,922 $ 6,017 $ 9,803 $ (272 ) (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Other assets or Other liabilities in the consolidated balance sheets. (3) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) Reported in Other income in the consolidated statements of income (loss). (5) SCS and SIO indexed features are reported in Policyholders’ account balances; MSO and IUL indexed features are reported in the Future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets. (6) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). At December 31, 2017 Gains (Losses) Reported In Net Income (Loss) Three Months Ended March 31, 2017 Fair Value Notional Amount Asset Derivatives Liability Derivatives (in millions) Freestanding derivatives: Equity contracts: (1) Futures $ 6,716 $ 1 $ 2 $ (396 ) Swaps 7,623 4 201 (405 ) Options 22,223 3,456 1,457 318 Interest rate contracts: (1) Swaps 26,769 604 193 143 Futures 20,675 — — (19 ) Credit contracts: (1) Credit default swaps 2,131 35 3 6 Other freestanding contracts: (1) Foreign currency contracts 1,423 19 10 (1 ) Margin — 24 4 — Collateral — 4 2,123 — Embedded derivatives: GMIB reinsurance contracts (6) — 1,894 — (71 ) GMxB derivative features liability (3,6) — — 4,358 507 SCS, SIO, MSO and IUL indexed features (5,6) — — 1,786 (317 ) Net derivative investment gains (loss) (235 ) Cross currency swaps (2,4) 354 5 — (7 ) Total $ 87,914 $ 6,046 $ 10,137 $ (242 ) (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Other assets or Other liabilities in the consolidated balance sheets. (3) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) Reported in Other income in the consolidated statements of income (loss). (5) SCS and SIO indexed features are reported in Policyholders’ account balances; MSO and IUL indexed features are reported in the Future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets. (6) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). |
Offsetting Financial Assets and Liabilities and Derivative Instruments | The following table presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments at March 31, 2018 . Offsetting of Financial Assets and Liabilities and Derivative Instruments At March 31, 2018 Gross Amounts Recognized Gross Amounts Offset in the Balance Sheets Net Amounts Presented in the Balance Sheets (in millions) ASSETS (1) Description Derivatives: Equity contracts $ 3,606 $ 1,429 $ 2,177 Interest rate contracts 555 395 160 Credit contracts 32 3 29 Currency 10 52 (42 ) Collateral 17 2,208 (2,191 ) Margin 62 57 5 Total Derivatives, subject to an ISDA Master Agreement 4,282 4,144 138 Other financial instruments 3,923 — 3,923 Other invested assets $ 8,205 $ 4,144 $ 4,061 LIABILITIES (2) Description Derivatives: Equity contracts $ 1,429 $ 1,429 $ — Interest rate contracts 395 395 — Credit contracts 3 3 — Currency 52 52 — Collateral 2,208 2,208 — Margin 57 57 — Total Derivatives, subject to an ISDA Master Agreement 4,144 4,144 — Other financial liabilities 4,342 — 4,342 Other liabilities $ 8,486 $ 4,144 $ 4,342 Securities sold under agreement to repurchase (3) $ 1,897 $ — $ 1,897 (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $ 7 million in securities sold under agreement to repurchase. The following table presents information about the Company’s offsetting financial assets and liabilities and derivative instruments at December 31, 2017 . Offsetting of Financial Assets and Liabilities and Derivative Instruments At December 31, 2017 Gross Amounts Recognized Gross Amounts Offset in the Balance Sheets Net Amounts Presented in the Balance Sheets (in millions) ASSETS (1) Description Derivatives: Equity contracts $ 3,461 $ 1,660 $ 1,801 Interest rate contracts 604 193 411 Credit contracts 35 3 32 Currency 19 10 9 Collateral 4 2,123 (2,119 ) Margin 24 4 20 Total Derivatives, subject to an ISDA Master Agreement 4,147 3,993 154 Other financial instruments 3,964 — 3,964 Other invested assets $ 8,111 $ 3,993 $ 4,118 Total Derivatives, not subject to an ISDA Master Agreement (4) $ 5 $ — $ 5 LIABILITIES (2) Description Derivatives: Equity contracts $ 1,660 $ 1,660 $ — Interest rate contracts 193 193 — Credit contracts 3 3 — Currency 10 10 — Collateral 2,123 2,123 — Margin 4 4 — Total Derivatives, subject to an ISDA Master Agreement 3,993 3,993 — Other financial liabilities 4,053 — 4,053 Other liabilities $ 8,046 $ 3,993 $ 4,053 Securities sold under agreement to repurchase (3) $ 1,882 $ — $ 1,882 (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $ 5 million included in Securities sold under agreements to repurchase on the consolidated balance sheets. (4) This amount is reflected in Other assets. |
Gross Collateral Amounts Not Offset in Consolidated Balance Sheets | The following table presents information about the Company’s gross collateral amounts that are not offset in the consolidated balance sheet at December 31, 2017 . Collateral Amounts Offset in the Consolidated Balance Sheets At December 31, 2017 Net Amounts Presented in the Balance Sheets Collateral (Received)/Held Financial Instruments Cash Net Amounts (in millions) Assets (1) Total Derivatives $ 2,253 $ — $ (2,099 ) $ 154 Other financial assets 3,964 — — 3,964 Other invested assets $ 6,217 $ — $ (2,099 ) $ 4,118 Liabilities: (2) Other financial liabilities $ 4,053 $ — $ — $ 4,053 Other liabilities $ 4,053 $ — $ — $ 4,053 Securities sold under agreement to repurchase (3)(4)(5) $ 1,882 $ (1,988 ) $ (21 ) $ (127 ) (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $ 5 million in securities sold under agreement to repurchase. (4) US Treasury and agency securities are in fixed maturities available for sale on consolidated balance sheet. (5) Cash is included in cash and cash equivalents on consolidated balance sheet. The following table presents information about the Company’s gross collateral amounts that are not offset in the consolidated balance sheets at March 31, 2018 . Collateral Amounts Offset in the Consolidated Balance Sheets At March 31, 2018 Net Amounts Collateral (Received)/Held Financial Instruments Cash Net Amounts (in millions) Assets (1) Total derivatives $ 2,324 $ — $ (2,186 ) $ 138 Other financial instruments 3,923 — — 3,923 Other invested assets $ 6,247 $ — $ (2,186 ) $ 4,061 Liabilities: (2) Securities sold under agreement to repurchase (3)(4)(5) $ 1,897 $ (1,923 ) $ — $ (26 ) (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $ 7 million included in Securities sold under agreements to repurchase on the consolidated balance sheet. (4) US Treasury and agency securities are included in Fixed maturities available for sale on the consolidated balance sheet. (5) Cash is reported in Cash and cash equivalents on the consolidated balance sheet. |
Repurchase Agreements Accounted for as Secured Borrowings | The following table presents information about repurchase agreements accounted for as secured borrowings in the consolidated balance sheets at March 31, 2018 . Repurchase Agreement Accounted for as Secured Borrowings At March 31, 2018 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 days 30–90 days Greater Than 90 days Total (in millions) Securities sold under agreement to repurchase (1) U.S. Treasury and agency securities $ — $ 1,897 $ — $ — $ 1,897 Total $ — $ 1,897 $ — $ — $ 1,897 (1) Excludes expense accrual of $ 7 million included in Securities sold under agreements to repurchase on the consolidated balance sheet. The following table presents information about repurchase agreements accounted for as secured borrowings in the consolidated balance sheets at December 31, 2017 . Repurchase Agreement Accounted for as Secured Borrowings At December 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 days 30–90 days Greater Than 90 days Total (in millions) Securities sold under agreement to repurchase (1) U.S. Treasury and agency securities $ — $ 1,882 $ — $ — $ 1,882 Total $ — $ 1,882 $ — $ — $ 1,882 (1) Excludes expense of $ 5 million in securities sold under agreement to repurchase. |
CLOSED BLOCK (Tables)
CLOSED BLOCK (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Closed Block Disclosure [Abstract] | |
Summarized Financial Information for Closed Blocks | Summarized financial information for the Company’s Closed Block is as follows: March 31, December 31, (in millions) CLOSED BLOCK LIABILITIES: Future policy benefits, policyholders’ account balances and other $ 6,904 $ 6,958 Policyholder dividend obligation — 19 Other liabilities 269 271 Total Closed Block liabilities 7,173 7,248 ASSETS DESIGNATED TO THE CLOSED BLOCK: Fixed maturities, available for sale, at fair value (amortized cost of $3,864 and $3,923) 3,908 4,070 Mortgage loans on real estate 1,837 1,720 Policy loans 772 781 Cash and other invested assets 235 351 Other assets 192 182 Total assets designated to the Closed Block 6,944 7,104 Excess of Closed Block liabilities over assets designated to the Closed Block 229 144 Amounts included in accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of policyholder dividend obligation of $0 and $19 55 138 Maximum Future Earnings To Be Recognized From Closed Block Assets and Liabilities $ 284 $ 282 |
Closed Block Revenues and Expenses | The Company’s Closed Block revenues and expenses follows: Three Months Ended March 31, 2018 2017 (in millions) REVENUES: Premiums and other income $ 51 $ 54 Net investment income (loss) 73 83 Net investment gains (losses) 1 (15 ) Total revenues 125 122 BENEFITS AND OTHER DEDUCTIONS: Policyholders’ benefits and dividends 126 151 Other operating costs and expenses 1 — Total benefits and other deductions 127 151 Net revenues (loss) before income taxes (2 ) (29 ) Income tax (expense) benefit — 10 Net Revenues (Losses) $ (2 ) $ (19 ) |
Reconciliation of Policy Holder Dividend Obligation | A reconciliation of the Company’s policyholder dividend obligation follows: Three Months Ended March 31, 2018 2017 (in millions) Balances, beginning of year $ 19 $ 52 Unrealized investment gains (losses), net of DAC (19 ) (14 ) Balances, End of Period $ — $ 38 |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Insurance [Abstract] | |
GMDB and GMIB Liabilities and Other Policyholder's Liabilities | The following table summarizes the direct GMDB and GMIB with no no-lapse guarantee rider (“NLG”) features liabilities, before reinsurance ceded, reflected in the consolidated balance sheets in Future policy benefits and other policyholders’ liabilities: GMDB GMIB Total (in millions) Balance at January 1, 2018 $ 4,085 $ 4,800 $ 8,885 Paid guarantee benefits (101 ) (32 ) (133 ) Other changes in reserve 97 (136 ) (39 ) Balance at March 31, 2018 $ 4,081 $ 4,632 $ 8,713 Balance at January 1, 2017 $ 3,170 $ 3,868 $ 7,038 Paid guarantee benefits (89 ) (32 ) (121 ) Other changes in reserve 187 1,919 2,106 Balance at March 31, 2017 $ 3,268 $ 5,755 $ 9,023 |
GMDB Reinsurance Ceded | The following table summarizes the ceded GMDB liabilities, reflected in the consolidated balance sheets in Amounts due from reinsurers: Three Months Ended March 31, 2018 2017 (in millions) Balance, beginning of year $ 108 $ 90 Paid guarantee benefits (5 ) (3 ) Other changes in reserve 2 2 Balance, End of Period $ 105 $ 89 |
GMDB Reinsurance Assumed | The following table summarizes the assumed GMDB liabilities, reflected in the consolidated balance sheets in Future policy benefits and other policyholders’ liabilities: Three Months Ended March 31, 2018 2017 (in millions) Balance, beginning of year $ 95 $ 121 Paid guarantee benefits (6 ) (5 ) Other changes in reserve (7 ) (8 ) Balance, End of Period $ 82 $ 108 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | Summarized in the table below is a summary of the fair value of these liabilities at March 31, 2018 and December 31, 2017 : March 31, December 31, (in millions) GMIBNLG (1) $ 3,715 $ 4,056 SCS, SIO, MSO, IUL indexed features (2) 1,683 1,786 Assumed GMIB reinsurance Contracts (1) 173 194 GWBL/GMWB (1) 121 130 GIB (1) (36 ) (27 ) GMAB (1) 4 5 Total embedded and freestanding derivative liabilities $ 5,660 $ 6,144 GMIB reinsurance contract asset (3) $ 1,734 $ 1,894 (1) Reported in Future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets. (2) Reported in Policyholders’ account balances in the consolidated balance sheets. (3) Reported in GMIB reinsurance contract asset, at fair value in the consolidated balance sheets. |
Variable Annuity Contracts with GMDB and GMIB Features | The March 31, 2018 values for direct variable annuity contracts in-force on such date with GMDB and GMIB features are presented in the following table. For contracts with the GMDB feature, the net amount at risk in the event of death is the amount by which the GMDB exceed related account values. For contracts with the GMIB feature, the net amount at risk in the event of annuitization is the amount by which the present value of the GMIB benefits exceeds related account values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB guarantees may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive: Direct Variable Annuity Contract Values Return of Premium Ratchet Roll-Up Combo Total (Dollars in millions) GMDB: Account values invested in: General Account $ 13,848 $ 107 $ 64 $ 194 $ 14,213 Separate Accounts $ 45,136 $ 9,319 $ 3,381 $ 34,668 $ 92,504 Net amount at risk, gross $ 186 $ 117 $ 2,016 $ 16,388 $ 18,707 Net amount at risk, net of amounts reinsured $ 186 $ 111 $ 1,378 $ 16,388 $ 18,063 Average attained age of policyholders 51 67 73 68 55 Percentage of policyholders over age 70 9.7 % 40.9 % 63.7 % 47.4 % 18.3 % Range of contractually specified interest rates N/A N/A 3%-6% 3%-6.5% 3%-6.5% GMIB: Account values invested in: General Account N/A N/A $ 24 $ 285 $ 309 Separate Accounts N/A N/A $ 20,855 $ 39,604 $ 60,459 Net amount at risk, gross N/A N/A $ 883 $ 6,322 $ 7,205 Net amount at risk, net of amounts reinsured N/A N/A $ 268 $ 5,738 $ 6,006 Average attained age of policyholders N/A N/A 70 69 69 Weighted average years remaining until annuitization N/A N/A 1.7 0.7 0.8 Range of contractually specified interest rates N/A N/A 3%-6% 3%-6.5% 3%-6.5% The March 31, 2018 values for assumed variable annuity contracts in force on such date with GMDB and GMIB features are presented in the following table: Assumed Variable Annuity Contract Values Return of Premium Ratchet Roll-Up Combo Total (Dollars in millions) GMDB: Reinsured Account values $ 1,023 $ 5,849 $ 302 $ 1,879 $ 9,053 Net amount at risk assumed $ 7 $ 314 $ 24 $ 321 $ 666 Average attained age of policyholders 67 72 77 75 72 Percentage of policyholders over age 70 41.4 % 60.8 % 76.6 % 74.2 % 61.9 % Range of contractually specified interest rates N/A N/A 3%-10% 5%-10% 3%-10% GMIB: Reinsured Account values $ 978 $ 52 $ 277 $ 1,338 $ 2,645 Net amount at risk assumed $ 2 $ — $ 38 $ 215 $ 255 Average attained age of policyholders 71 74 71 68 70 Percentage of policyholders over age 70 61.6 % 63.7 % 55.9 % 48.1 % 54.2 % Range of contractually specified interest rates (1) N/A N/A 3.3%-6.5% 6%-6% 3.3%-6.5% (1) In general, for policies with the highest contractual interest rate shown ( 10% ), the rate applied only for the first 10 years after issue, which have now elapsed. |
Investment in Variable Insurance Trust Mutual Funds | Investment in Separate Account Investment Options March 31, December 31, 2017 (1) (in millions) GMDB: Equity $ 40,678 $ 41,658 Fixed income 5,384 5,469 Balanced 45,485 46,577 Other 957 968 Total $ 92,504 $ 94,672 GMIB: Equity $ 19,156 $ 19,928 Fixed income 3,074 3,150 Balanced 37,918 38,890 Other 311 318 Total $ 60,459 $ 62,286 (1) Amounts previously reported were as follows in millions: (a) GMDB: Equity $78,069 , Fixed Income $2,234 , Balanced $14,084 , and Other $283 ; (b) GMIB: Equity $50,429 , Fixed Income $1,568 , Balanced $10,165 , and Other $124 |
GMDB, GMIB, GWBL and No Lapse Guarantee Features | The following table summarizes the NLG liabilities reflected in the General Account in Future policy benefits and other policyholders’ liabilities, the related reinsurance reserve ceded, reflected in Amounts due from reinsurers and deferred cost of reinsurance, reflected in Other assets in the Consolidated balance sheets: Direct Liability (1) (in millions) Balance at January 1, 2018 $ 686 Paid Guaranteed Benefits (8 ) Other changes in reserves 26 Balance at March 31, 2018 $ 704 Balance at January 1, 2017 $ 1,307 Other changes in reserves 4 Balance at March 31, 2017 $ 1,311 (1) There were no amounts of reinsurance ceded in any period presented. |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below. At March 31, 2018 and December 31, 2017 , no assets were required to be measured at fair value on a non-recurring basis. Fair value measurements are required on a non-recurring basis for certain assets, including goodwill and mortgage loans on real estate, only when an OTTI or other event occurs. When such fair value measurements are recorded, they must be classified and disclosed within the fair value hierarchy. The Company recognizes transfers between valuation levels at the beginning of the reporting period. Fair Value Measurements at March 31, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, available-for-sale: Public Corporate $ — $ 18,581 $ 135 $ 18,716 Private Corporate — 6,286 1,118 7,404 U.S. Treasury, government and agency — 14,653 — 14,653 States and political subdivisions — 438 39 477 Foreign governments — 419 — 419 Residential mortgage-backed (1) — 627 — 627 Asset-backed (2) — 135 540 675 Redeemable preferred stock 180 333 — 513 Subtotal 180 41,472 1,832 43,484 Other equity investments 13 — 34 47 Trading securities 448 14,427 44 14,919 Other invested assets: Short-term investments — 854 — 854 Assets of consolidated VIEs/VOEs 1,691 291 32 2,014 Swaps — 356 — 356 Credit Default Swaps — 29 — 29 Options — 1,939 — 1,939 Subtotal 1,691 3,469 32 5,192 Cash equivalents 4,894 — — 4,894 Segregated securities — 1,025 — 1,025 GMIB reinsurance contract asset — — 1,734 1,734 Separate Accounts’ assets 118,466 2,845 357 121,668 Total Assets $ 125,692 $ 63,238 $ 4,033 $ 192,963 Liabilities Other invested liabilities GMxB derivative features’ liability $ — $ — $ 3,977 $ 3,977 SCS, SIO, MSO and IUL indexed features’ liability — 1,683 — 1,683 Liabilities of consolidated VIEs/VOEs 1,190 18 — 1,208 Contingent payment arrangements — — 14 14 Total Liabilities $ 1,190 $ 1,701 $ 3,991 $ 6,882 (1) Includes publicly traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. Fair Value Measurements at December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, available-for-sale: Public Corporate $ — $ 17,906 $ 48 $ 17,954 Private Corporate — 6,390 1,102 7,492 U.S. Treasury, government and agency — 18,508 — 18,508 States and political subdivisions — 449 40 489 Foreign governments — 419 — 419 Residential mortgage-backed (1) — 818 — 818 Asset-backed (2) — 208 541 749 Redeemable preferred stock 184 327 1 512 Subtotal 184 45,025 1,732 46,941 Other equity investments 13 — 34 47 Trading securities 485 13,647 38 14,170 Other invested assets: Short-term investments — 1,730 — 1,730 Assets of consolidated VIEs/VOEs 1,060 215 27 1,302 Swaps — 222 — 222 Credit Default Swaps — 33 — 33 Futures (2 ) — — (2 ) Foreign currency contract (3) — 5 — 5 Options — 1,999 — 1,999 Subtotal 1,058 4,204 27 5,289 Cash equivalents 3,608 — — 3,608 Segregated securities — 825 — 825 GMIB reinsurance contract asset — — 1,894 1,894 Separate Accounts’ assets 121,000 2,997 349 124,346 Total Assets $ 126,348 $ 66,698 $ 4,074 $ 197,120 Liabilities Other invested liabilities GMxB derivative features’ liability $ — $ — $ 4,358 $ 4,358 SCS, SIO, MSO and IUL indexed features’ liability — 1,786 — 1,786 Liabilities of consolidated VIEs/VOEs 670 22 — 692 Contingent payment arrangements — — 15 15 Total Liabilities $ 670 $ 1,808 $ 4,373 $ 6,851 (1) Includes publicly traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (3) Reported in Other assets in the consolidated balance sheets. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents a reconciliation for all Level 3 assets and liabilities for the three months ended March 31, 2018 and 2017 , respectively: Level 3 Instruments Fair Value Measurements Corporate State and Commercial Asset- (in millions) Balance, January 1, 2018 $ 1,150 $ 40 $ — $ 541 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 1 — — — Investment gains (losses), net — — — — Subtotal 1 — — — Other comprehensive income (loss) (21 ) (1 ) — — Purchases 189 — — — Sales (117 ) — — (1 ) Settlements — — — — Transfers into Level 3 (1) 67 — — — Transfers out of Level 3 (1) (16 ) — — — Balance, March 31, 2018 $ 1,253 $ 39 $ — $ 540 Balance, January 1, 2017 $ 857 $ 42 $ 373 $ 120 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 1 — — — Investment gains (losses), net — — (23 ) — Subtotal 1 — (23 ) — Other comprehensive income (loss) 45 — 25 5 Purchases 171 — — 195 Sales (67 ) — (35 ) (3 ) Transfers into Level 3 (1) 18 — — 6 Transfers out of Level 3 (1) — — — — Balance, March 31, 2017 $ 1,025 $ 42 $ 340 $ 323 Redeemable Other (2) GMIB Separate GMxB derivative features liability Contingent (in millions) Balance, January 1, 2018 $ 1 $ 99 $ 1,894 $ 349 $ (4,358 ) $ (15 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — — — 7 — — Net derivative gains (losses) — — (159 ) — 460 — Subtotal — — (159 ) 7 460 — Other comprehensive income (loss) — 1 — — — — Purchases (2) — 4 10 3 (84 ) — Sales (3) (1 ) — (11 ) (1 ) 5 — Settlements (4) — — — (1 ) — 1 Activity related to consolidated VIEs — 1 — — — — Transfers into Level 3 (1) — 5 — — — — Transfers out of Level 3 (1) — — — — — — Balance, March 31, 2018 $ — $ 110 $ 1,734 $ 357 $ (3,977 ) $ (14 ) Balance, January 1, 2017 $ 1 $ 88 $ 1,735 $ 313 $ (5,580 ) $ (25 ) Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — (9 ) — 10 — — Net derivative gains (losses) — — (71 ) 507 — Subtotal — (9 ) (71 ) 10 507 — Other comprehensive income (loss) — — — — — — Purchases (2) — 4 9 3 (81 ) — Sales (3) — (1 ) (14 ) (1 ) 8 — Settlements (4) — — (1 ) — 1 Activity related to consolidated VIEs — (9 ) — — — — Transfers into Level 3 (1) — 1 — 1 — — Transfers out of Level 3 (1) — — — — — Balance, March 31, 2017 $ 1 $ 74 $ 1,659 $ 325 $ (5,146 ) $ (24 ) (1) Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. (2) For the GMIB reinsurance contract asset, and GMxB derivative features liability, represents attributed fee. (3) For the GMIB reinsurance contract asset, represents recoveries from reinsurers and for GMxB derivative features liability represents benefits paid. (4) For contingent payment arrangements, it represents payments under the arrangement. |
Fair Value Assets Unrealized Gains Losses By Category For Level 3 Assets And Liabilities Still Held | The table below details changes in unrealized gains (losses) for the three months ended March 31, 2018 and 2017 by category for Level 3 assets and liabilities still held at March 31, 2018 and 2017 , respectively: Income (Loss) Investment Net Derivative Gains (losses) OCI (in millions) Level 3 Instruments First Quarter of 2018 Held at March 31, 2018: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ (19 ) State and political subdivisions — — (1 ) Asset-backed — — — Subtotal $ — $ — $ (20 ) GMIB reinsurance contracts — (159 ) — Separate Accounts’ assets (1) 7 — — GMxB derivative features’ liability — 460 — Total $ 7 $ 301 $ (20 ) Level 3 Instruments First Quarter of 2017 Held at March 31, 2017: Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ 45 Commercial mortgage-backed — — 13 Asset-backed — — 5 Subtotal $ — $ — $ 63 GMIB reinsurance contracts — (71 ) — Separate Accounts’ assets (1) 10 — — GMxB derivative features’ liability — 507 — Total $ 10 $ 436 $ 63 (1) There is an investment expense that offsets this investment gain (loss). |
Fair Value Inputs Quantitative Information | The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of March 31, 2018 and December 31, 2017 , respectively. Quantitative Information about Level 3 Fair Value Measurements March 31, 2018 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 52 Matrix pricing model Spread over the industry-Specific benchmark yield curve 0 - 565 bps 112 bps 788 Market comparable EBITDA multiples 6.2x - 30.7x 13x Other equity investments 38 Discounted cash flow Earnings Multiple 10.8x Separate Accounts’ assets 332 Third party appraisal Capitalization Rate 4.6% 1 Discounted cash flow Spread over U.S. Treasury curve 228 bps GMIB reinsurance contract asset 1,734 Discounted cash flow Lapse Rates 1% - 6.27% 0.63% -13.94% 0% - 16% 6 - 14 bps 11%-30% Liabilities: GMIBNLG 3,715 Discounted cash flow Non-performance risk 1.0% Assumed GMIB Reinsurance Contracts 173 Discounted cash flow Lapse Rates 1.1% - 13.3% GWBL/GMWB 121 Discounted cash flow Lapse Rates 0.5%-5.7% 0.0%-7.0% 100% after delay 11%-30% GIB (36 ) Discounted cash flow Lapse Rates 0.5%-5.7% 0%-8% 0% - 16% 11%-30% GMAB 4 Discounted cash flow Lapse Rates 0.5%-11.0% 11%-30% Quantitative Information about Level 3 Fair Value Measurements December 31, 2017 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, available-for-sale: Corporate $ 53 Matrix pricing model Spread over the industry-specific benchmark yield curve 0 bps-565 bps 125 bps 789 Market comparable companies EBITDA multiples 5.3x-27.9x 12.9x Other equity investments 38 Discounted cash flow Earnings Multiple 10.8x 10.0% 12 Separate Accounts’ assets 326 Third party appraisal Capitalization Rate 4.6% 5.6% 6.6% 1 Discounted cash flow Spread over U.S. Treasury curve 243 bps 4.409% GMIB reinsurance contract asset 1,894 Discounted Cash flow Lapse Rates 1.0% - 6.3% 0.0% - 8.0% 0.0% - 16.0% 5bps - 10bps 9.9% - 30.9% Liabilities: GMIBNLG 4,056 Discounted cash flow Non-performance risk 1.0% 0.8% - 26.2% 0.0% - 12.4% 0.0% - 16.0% 0.55% - 2.1% 20.0% Assumed GMIB Reinsurance Contracts 194 Discounted cash flow Lapse Rates 1.1% - 13.3% 0.7% - 22.2% 1.3% - 100% GWBL/GMWB 130 Discounted cash flow Lapse Rates 0.9% - 5.7% 0.0% - 7.0% 100% after delay 9.9% - 30.9% GIB (27 ) Discounted cash flow Lapse Rates 0.9% - 5.7% 0.0% - 7.0% 0.0% - 16.0% 9.9% - 30.9% GMAB 5 Discounted cash flow Lapse Rates 0.5% - 11.0% 9.9% - 30.9% |
Fair Value Disclosure Financial Instruments Not Carried At Fair Value | The carrying values and fair values at March 31, 2018 and December 31, 2017 for financial instruments not otherwise disclosed in Note 3 are presented in the table below. Certain financial instruments are exempt from the requirements for fair value disclosure, such as insurance liabilities other than financial guarantees and investment contracts, limited partnerships accounted for under the equity method and pension and other postretirement obligations. Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) March 31, 2018: Mortgage loans on real estate $ 11,333 $ — $ — $ 11,128 $ 11,128 Loans to affiliates 885 — 885 — 885 Policyholders’ liabilities: Investment contracts 2,222 — — 2,283 2,283 FHLBNY Funding Agreements 3,014 — 2,962 — 2,962 Short term and long-term debt 2,373 — 2,449 — 2,449 Loans from affiliates 2,530 — 2,530 — 2,530 Policy loans 3,776 — — 4,330 4,330 Separate Account Liabilities 7,647 — — 7,647 7,647 December 31, 2017: Mortgage loans on real estate $ 10,952 $ — $ — $ 10,912 $ 10,912 Loans to affiliates 1,230 — 1,230 — 1,230 Policyholders’ liabilities: Investment contracts 2,224 — — 2,329 2,329 FHLBNY Funding Agreements 3,014 — 3,020 — 3,020 Short term and long-term debt 2,408 — 2,500 — 2,500 Loans from affiliates 3,622 — 3,622 — 3,622 Policy loans 3,819 — — 4,754 4,754 Separate Account Liabilities 7,537 — — 7,537 7,537 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues Recognized, Disaggregated by Category | The table below presents the revenues recognized during the three months ended March 31, 2018 and 2017 , disaggregated by category: Three Months Ended March 31, 2018 2017 (in millions) Investment management, advisory and service fees: Base fees $ 724 $ 643 Performance-based fees 6 6 Research services 114 113 Distribution services 180 166 Other revenues: Shareholder services 20 18 Other 6 4 Total investment management and service fees $ 1,050 $ 950 Other income $ 112 $ 101 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Components of certain benefit costs | Components of certain benefit costs for the Company were as follows: Three Months Ended March 31, 2018 2017 (in millions) Net Periodic Pension Expense: (Qualified and Non-qualified Plans) Service cost $ 2 $ 3 Interest cost 25 26 Expected return on assets (45 ) (43 ) Net amortization 29 32 Partial settlement 100 — Total $ 111 $ 18 Net Postretirement Benefits Costs: Service cost $ — $ — Interest cost 4 4 Net amortization 2 2 Total $ 6 $ 6 Net Postemployment Benefits Costs: Service cost $ 1 $ 1 Interest cost — — Net amortization — — Total $ 1 $ 1 |
SHARE-BASED COMPENSATION PROG35
SHARE-BASED COMPENSATION PROGRAMS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Costs | Compensation costs for the three months ended March 31, 2018 and 2017 for share-based payment arrangements as further described herein are as follows: Three Months Ended 2018 2017 (in thousands) Performance Shares $ 55 $ 5,710 Stock Options (Other than AB stock options) 114 19 Restricted Awards 12,484 7,693 Other compensation plans (1) (904 ) 293 Total Compensation Expenses $ 11,749 $ 13,715 (1) Other compensation plans include Restricted Stock and Stock Appreciation Rights |
ACCUMULATED OTHER COMPREHENSI36
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | AOCI represents cumulative gains (losses) on items that are not reflected in Net income (loss). The balances as of March 31, 2018 and 2017 follow: March 31, 2018 2017 (in millions) Unrealized gains (losses) on investments $ (130 ) $ 244 Foreign currency translation adjustments (40 ) (69 ) Defined benefit pension plans (822 ) (1,030 ) Total accumulated other comprehensive income (loss) (992 ) (855 ) Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest 46 64 Accumulated other comprehensive income (loss) attributable to Holdings $ (946 ) $ (791 ) |
Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of OCI, net of taxes for the three months ended March 31, 2018 and 2017 follow: Three Months Ended March 31, 2018 2017 (in millions) Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period $ (5 ) $ 8 (Gains) losses reclassified into net income (loss) during the period — — Foreign currency translation adjustment (5 ) 8 Net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period (86 ) 155 (Gains) losses reclassified into net income (loss) during the period (1) (1,223 ) (23 ) Net unrealized gains (losses) on investments (1,309 ) 132 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 349 (28 ) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(255) and $56) (960 ) 104 Change in defined benefit plans: Less: reclassification adjustments to net income (loss) for: Amortization of net actuarial (gains) losses included in: Amortization of net prior service cost included in net periodic cost 133 25 Change in defined benefit plans (net of deferred income tax expense (benefit) of $35 and $12) 133 25 Total other comprehensive income (loss), net of income taxes (832 ) 137 Less: Other comprehensive (income) loss attributable to noncontrolling interest (6 ) (7 ) Other comprehensive income (loss) attributable to Holdings $ (838 ) $ 130 (1) See “Reclassification adjustments” in Note 3 . Reclassification amounts presented net of income tax expense (benefit) of $(325) million and $(13) million , for the three months ended March 31, 2018 and 2017 , respectively. |
COMMITMENT AND CONTINGENT LIA37
COMMITMENT AND CONTINGENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Restructuring Costs and Liabilities | The restructuring costs and liabilities associated with the Company’s initiatives were as follows: Three Months Ended March 31, Twelve Months Ended December 31, 2018 2017 (in millions) Severance Balance, beginning of year $ 23 $ 22 Additions 7 17 Cash payments (3 ) (14 ) Other reductions — (2 ) Balance, end of Year $ 27 $ 23 Three Months Ended March 31, Twelve Months Ended December 31, 2018 2017 (in millions) Leases Balance, beginning of year $ 165 $ 170 Expense incurred — 29 Deferred rent 2 10 Payments made (11 ) (48 ) Interest accretion 1 4 Balance, end of year $ 157 $ 165 |
Obligation Under Funding Agreements | Outstanding balance at end of period Maturity of Outstanding balance Issued during the period Repaid during the period March 31, 2018: (in millions) Short-term FHLBNY funding agreements $ 500 less than one month $ 1,500 $ 1,500 Long-term FHLBNY funding agreements 1,417 less than 4 years — — 204 Less than 5 years — — 879 greater than five years — — Total long-term funding agreements 2,500 — — Total FHLBNY funding agreements at March 31, 2018 $ 3,000 $ 1,500 $ 1,500 December 31, 2017: Short-term FHLBNY funding agreements $ 500 Less than one month $ 6,000 $ 6,000 Long-term FHLBNY funding agreements 1,244 Less than 4 years 324 — 377 Less than 5 years 303 — 879 Greater than five years 135 — Total long-term funding agreements 2,500 762 — Total FHLBNY funding agreements at December 31, 2017 $ 3,000 $ 6,762 $ 6,000 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | e table below presents operating earnings (loss) by segment and Corporate and Other and a reconciliation to Net income (loss) attributable to Holdings for the three months ended March 31, 2018 and 2017 , respectively: Three Months Ended March 31, 2018 2017 (in millions) Net income (loss) attributable to Holdings $ 168 $ (290 ) Adjustments related to: Variable annuity product features 212 291 Investment (gains) losses (102 ) 24 Goodwill impairment — 369 Net actuarial (gains) losses related to pension and other postretirement benefit obligations 131 34 Other adjustments 90 (21 ) Income tax expense (benefit) related to above adjustments (63 ) (235 ) Non-recurring tax items 28 132 Non-GAAP Operating Earnings $ 464 $ 304 Operating earnings (loss) by segment: Individual Retirement $ 360 $ 202 Group Retirement 76 59 Investment Management and Research 81 32 Protection Solutions 23 39 Corporate and Other (1) (76 ) (28 ) (1) Includes interest expense of $ 44 million and $ 31 million , for the three months ended March 31, 2018 and 2017 , respectively. |
Reconciliation of Revenue from Segments to Consolidated | e table below presents segment revenues for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 2017 (in millions) Segment revenues: Individual Retirement (1) $ 729 $ 1,019 Group Retirement (1) 238 227 Investment Management and Research (2) 909 743 Protection Solutions (1) 809 789 Corporate and Other (1) 288 340 Adjustments related to: Variable annuity product features (197 ) (287 ) Investment gains (losses) 102 (24 ) Other adjustments to segment revenues (43 ) 23 Total revenues $ 2,835 $ 2,830 (1) Includes investment expenses charged by AB of approximately $ 18 million and $ 17 million for the three months ended March 31, 2018 and 2017 , respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of approximately $ 25 million and $ 24 million for the three months ended March 31, 2018 and 2017 , respectively, are included in total revenues of the Investment Management and Research segment. |
Reconciliation of Assets from Segment to Consolidated | e table below presents Total assets by segment as of March 31, 2018 and December 31, 2017 : March 31, December 31, (in millions) Total assets by segment: Individual Retirement $ 103,786 $ 121,723 Group Retirement 43,615 38,578 Investment Management and Research 11,809 8,297 Protection Solutions 51,457 43,116 Corporate and Other 21,627 23,934 Total assets $ 232,294 $ 235,648 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table presents the weighted average shares used in calculating basic and diluted earnings per common share: Three Months Ended March 31, 2018 2017 (in millions) Weighted Average Shares: Weighted average common stock outstanding for basic and diluted earnings per common share 561 561 |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the reconciliation of the numerator for the basic and diluted net income per share calculations: Three Months Ended March 31, 2018 2017 (in millions) Net income (loss) attributable to Holdings common shareholders: Net income (loss) attributable to Holdings common shareholders (basic) $ 168 $ (290 ) Less: Incremental dilution from AB (1) — 1 Net income (loss) attributable to Holdings common shareholders (diluted) $ 168 $ (291 ) (1) The incremental dilution from AB represents the impact of AB’s dilutive units on the Company’s diluted earnings per share and is calculated based on the Company’s proportionate ownership interest in AB. The following table presents both basic and diluted income (loss) per share for each period presented: Three Months Ended March 31, 2018 2017 (dollars per share) Net income (loss) attributable to Holdings per common share: Basic $ 0.30 $ (0.52 ) Diluted $ 0.30 $ (0.52 ) |
REVISION OF PRIOR PERIOD FINA40
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Financial Information Affected by Revisions and Change in Accounting Principle | Effects of the revision to the Company’s previously reported Consolidated Statements of Income (Loss) and Cash Flows for the six months ended June 30, 2017 Six Months Ended As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Income (Loss): Revenues: Net derivative gains (losses) $ 528 $ (34 ) $ 494 Total revenues 6,746 $ (34 ) 6,712 Benefits and other deductions: Interest credited to policyholders’ account balances $ 522 $ (34 ) $ 488 Total benefits and other deductions 6,299 $ (34 ) 6,265 Six Months Ended As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Cash Flows: Cash flow from operating activities: Interest credited to policyholders’ account balances $ 522 $ (34 ) $ 488 Net derivative (gains) loss (528 ) 34 (494 ) Net cash provided by (used in) operating activities 666 $ — 666 Effects of the revision to the Company’s previously reported Consolidated Statements of Income (Loss) and Cash Flows for the nine months ended September 30, 2017 Nine Months Ended As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Income (Loss): Revenues: Net derivative gains (losses) $ 172 $ (44 ) $ 128 Total revenues 9,529 $ (44 ) 9,485 Benefits and other deductions: Interest credited to Policyholders’ account balances $ 787 $ (44 ) $ 743 Total benefits and other deductions 9,070 $ (44 ) 9,026 Nine Months Ended As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Cash Flows: Cash flow from operating activities: Interest credited to policyholders’ account balances $ 787 $ (44 ) $ 743 Net derivative (gains) loss (172 ) 44 (128 ) Net cash provided by (used in) operating activities 1,044 $ — 1,044 Effects of the revision to the Company’s previously reported Consolidated Statements of Income (Loss), and Cash Flows for the year ended December 31, 2017 December 31, 2017 As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Income (Loss): Revenues: Net derivative gains (losses) $ 228 $ (113 ) $ 115 Total revenues 12,514 $ (113 ) 12,401 Benefits and other deductions: Interest credited to Policyholder’s account balances 1,108 $ (113 ) 995 Total benefits and other deductions 11,200 $ (113 ) 11,087 December 31, 2017 As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Cash Flows: Cash flow from operating activities: Interest credited to policyholders’ account balances $ 1,108 $ (113 ) $ 995 Net derivative (gains) loss (228 ) 113 (115 ) Net cash provided by (used in) operating activities 1,021 $ — 1,021 Effects of the revision to the Company’s previously reported Consolidated Statements of Income (Loss), and Cash Flows for the year ended December 31, 2016 December 31, 2016 As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Income (Loss): Revenues: Net derivative gains (losses) $ (1,722 ) $ (121 ) — $ (1,843 ) Total revenues 11,922 $ (121 ) 11,801 Benefits and other deductions: Interest credited to Policyholder’s account balances 1,091 $ (121 ) 970 Total benefits and other deductions 9,868 $ (121 ) 9,747 December 31, 2016 As Previously Reported Impact of Revisions As Revised (in millions) Consolidated Statement of Cash Flows: Cash flow from operating activities: Interest credited to policyholders’ account balances $ 1,091 $ (121 ) $ 970 Net derivative (gains) loss 1,722 121 1,843 Net cash provided by (used in) operating activities (236 ) $ — (236 ) |
ORGANIZATION (Details)
ORGANIZATION (Details) | May 15, 2018 | May 14, 2018shares | Apr. 30, 2018 | Apr. 23, 2018$ / sharesshares | Mar. 31, 2018segmentclient_channel | Mar. 31, 2017 |
Class of Stock [Line Items] | ||||||
Number of reportable segments | segment | 4 | |||||
Number of main client channels | client_channel | 3 | |||||
Subsequent Event | IPO | ||||||
Class of Stock [Line Items] | ||||||
Shares issued in initial public offering (in shares) | 157,837,500 | |||||
Ownership percentage after initial public offering (as a percent) | 71.90% | |||||
Parent Company | ||||||
Class of Stock [Line Items] | ||||||
Economic interest in subsidiary (as a percent) | 64.40% | 63.80% | ||||
AXA Financial | ||||||
Class of Stock [Line Items] | ||||||
Consolidation, less than wholly owned subsidiary, additional interest issued to parent (as a percent) | 0.50% | |||||
Consolidation, less than wholly owned subsidiary, parent ownership interest after additional interest issued | 100.00% | |||||
AB | ||||||
Class of Stock [Line Items] | ||||||
Economic interest in subsidiary (as a percent) | 46.50% | 45.80% | ||||
AB | Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Economic interest in subsidiary (as a percent) | 65.00% | |||||
Consolidation, less than wholly owned subsidiary, purchase of interest by parent, shares (in shares) | 8,160,000 | |||||
Consolidation, less than wholly owned subsidiary, purchase of interest by parent, per share (in dollars per share) | $ / shares | $ 26.54 | |||||
AXA-IM Holding U.S., Inc. | Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Ownership percentage after initial public offering (as a percent) | 100.00% | |||||
Consolidation, less than wholly owned subsidiary, purchase of interest by parent, shares (in shares) | 41,934,582 |
SIGNIFICANT ACCOUNTING POLICI42
SIGNIFICANT ACCOUNTING POLICIES - Adoption of New Accounting Pronouncements (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)fund | Dec. 31, 2018 | Dec. 31, 2017USD ($) | |
Variable Interest Entity [Line Items] | |||
Retained earnings (accumulated deficit) | $ (12,455) | $ (12,289) | |
Noncontrolling interest | $ 3,035 | 3,097 | |
Number of investment funds | fund | 2 | ||
Tax Cuts And Jobs Act Of 2017, Transition tax for accumulated foreign earnings income tax expense | 23 | ||
Accounting Standards Update 2016-01 | |||
Variable Interest Entity [Line Items] | |||
Equity securities, Fv Ni | 46 | ||
Scenario, Forecast | |||
Variable Interest Entity [Line Items] | |||
Effective income tax rate reconciliation, percent | 19.00% | ||
Difference Between Revenue Guidance In Effect Before And After Topic 606 | Accounting Standards Update 2014-09 | |||
Variable Interest Entity [Line Items] | |||
Retained earnings (accumulated deficit) | (13) | ||
Noncontrolling interest | 19 | ||
Noncontrolling interest, cumulative contributions received | 78 | ||
Noncontrolling interest, cumulative contributions paid | $ 43 |
SIGNIFICANT ACCOUNTING POLICI43
SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entities (Details) $ in Millions | Mar. 31, 2018USD ($)joint_venture | Dec. 31, 2017USD ($) | |
Variable Interest Entity [Line Items] | |||
Equity interests | [1] | $ 1,258 | $ 1,392 |
Real estate under development | [1] | 52 | 390 |
Redeemable non-controlling interest | [1] | $ 1,024 | $ 626 |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Number of consolidated real estate joint ventures | joint_venture | 1 | ||
Total assets | $ 36 | ||
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure | |||
Variable Interest Entity [Line Items] | |||
Real estate under development | $ 16 | ||
Number of noncosolidated real estate joint ventures | joint_venture | 2 | ||
Voting Interest Entities | Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total assets | $ 135 | ||
Total liabilities | 4 | ||
Noncontrolling interest in variable interest entity | 10 | ||
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total assets | 2,447 | ||
Total liabilities | 1,219 | ||
Redeemable non-controlling interest | 982 | ||
Adjustments for New Accounting Pronouncement | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, unfunded commitments | 798 | ||
Adjustments for New Accounting Pronouncement | Other Equity Investments | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, nonconsolidated net assets | 163,434 | ||
Variable interest entity, maximum loss exposure | 1,137 | ||
Insurance | Adjustments for New Accounting Pronouncement | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Equity interests | 1,137 | ||
Total investment management and service fees | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, nonconsolidated net assets | 83,900 | ||
Variable interest entity, maximum loss exposure | $ 8 | ||
[1] | See Note 2 for details of balances with variable interest entities. |
INVESTMENTS - Available For Sal
INVESTMENTS - Available For Sale Securities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 43,268 | $ 45,256 |
Gross Unrealized Gains | 1,148 | 2,199 |
Gross Unrealized Losses | 932 | 324 |
Fair Value | 43,484 | 47,131 |
OTTI in AOCI | 2 | 2 |
Amortized Cost | ||
Due in one year or less | 2,499 | |
Due in years two through five | 8,727 | |
Due in years six through ten | 13,290 | |
Due after ten years | 16,990 | |
Subtotal | 41,506 | |
Total | 43,268 | |
Fair Value | ||
Due in one year or less | 2,517 | |
Due in years two through five | 8,862 | |
Due in years six through ten | 13,114 | |
Due after ten years | 17,176 | |
Subtotal | 41,669 | |
Total | 43,484 | |
Public corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 18,513 | 17,181 |
Gross Unrealized Gains | 501 | 806 |
Gross Unrealized Losses | 298 | 33 |
Fair Value | 18,716 | 17,954 |
OTTI in AOCI | 0 | 0 |
Private Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,394 | 7,299 |
Gross Unrealized Gains | 117 | 225 |
Gross Unrealized Losses | 107 | 32 |
Fair Value | 7,404 | 7,492 |
OTTI in AOCI | 0 | 0 |
U.S. Treasury, government and agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 14,772 | 17,759 |
Gross Unrealized Gains | 387 | 1,000 |
Gross Unrealized Losses | 506 | 251 |
Fair Value | 14,653 | 18,508 |
OTTI in AOCI | 0 | 0 |
States and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 422 | 422 |
Gross Unrealized Gains | 56 | 67 |
Gross Unrealized Losses | 1 | 0 |
Fair Value | 477 | 489 |
OTTI in AOCI | 0 | 0 |
Foreign governments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 405 | 395 |
Gross Unrealized Gains | 23 | 29 |
Gross Unrealized Losses | 9 | 5 |
Fair Value | 419 | 419 |
OTTI in AOCI | 0 | 0 |
Residential mortgage-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 614 | 797 |
Gross Unrealized Gains | 16 | 22 |
Gross Unrealized Losses | 3 | 1 |
Fair Value | 627 | 818 |
OTTI in AOCI | 0 | 0 |
Amortized Cost | ||
Without single maturity date | 614 | |
Fair Value | ||
Without single maturity date | 627 | |
Asset-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 675 | 745 |
Gross Unrealized Gains | 4 | 5 |
Gross Unrealized Losses | 4 | 1 |
Fair Value | 675 | 749 |
OTTI in AOCI | 2 | 2 |
Amortized Cost | ||
Without single maturity date | 675 | |
Fair Value | ||
Without single maturity date | 675 | |
Redeemable preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 473 | 470 |
Gross Unrealized Gains | 44 | 43 |
Gross Unrealized Losses | 4 | 1 |
Fair Value | 513 | 512 |
OTTI in AOCI | 0 | 0 |
Amortized Cost | ||
Without single maturity date | 473 | |
Fair Value | ||
Without single maturity date | 513 | |
Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 43,268 | 45,068 |
Gross Unrealized Gains | 2,197 | |
Gross Unrealized Losses | 324 | |
Fair Value | 46,941 | |
OTTI in AOCI | 2 | |
Amortized Cost | ||
Total | $ 43,268 | 45,068 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 188 | |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | 0 | |
Fair Value | 190 | |
OTTI in AOCI | $ 0 |
INVESTMENTS - Credit Loss Impai
INVESTMENTS - Credit Loss Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 3,880 | $ 440 |
Gross gains on sales | 155 | 25 |
Gross losses on sales | (52) | (23) |
Total OTTI | 0 | 0 |
Non-credit losses recognized in OCI | 0 | 0 |
Credit losses recognized in net income (loss) | 0 | 0 |
Fixed Maturities - Credit Loss Impairments | ||
Balances, beginning of period | (18) | (239) |
Previously recognized impairments on securities that matured, paid, prepaid or sold | 0 | 55 |
Recognized impairments on securities impaired to fair value this period | 0 | 0 |
Impairments recognized this period on securities not previously impaired | 0 | 0 |
Additional impairments this period on securities previously impaired | 0 | 0 |
Increases due to passage of time on previously recorded credit losses | 0 | 0 |
Accretion of previously recognized impairments due to increases in expected cash flows | 0 | 0 |
Balances, end of period | $ (18) | $ (184) |
INVESTMENTS - Net Unrealized In
INVESTMENTS - Net Unrealized Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net Unrealized Gains (Losses) On Investments | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Balance, beginning of year | $ 1,875 | |
Balance, end of period | 216 | |
Net Unrealized Gains (Losses) On Investments | Unrealized Investment Gains Losses With OTTI Losses | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Balance, beginning of year | 2 | $ 19 |
Net investment gains (losses) arising during the period | 0 | 63 |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 |
Balance, end of period | 0 | 17 |
Net Unrealized Gains (Losses) On Investments | Unrealized Investment Gains Losses All Other | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Balance, beginning of year | 1,871 | 528 |
Net investment gains (losses) arising during the period | (109) | 176 |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | |
Balance, end of period | 216 | 733 |
DAC | Unrealized Investment Gains Losses With OTTI Losses | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Balance, beginning of year | 0 | 1 |
Impact of net unrealized investment gains (losses) on DAC | 0 | (4) |
Balance, end of period | 0 | (3) |
DAC | Unrealized Investment Gains Losses All Other | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Balance, beginning of year | (358) | (45) |
Impact of net unrealized investment gains (losses) on DAC | 341 | (68) |
Balance, end of period | (17) | (113) |
Policyholders Liabilities | Unrealized Investment Gains Losses With OTTI Losses | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Balance, beginning of year | (1) | (10) |
Impact of net unrealized investment gains (losses) on policyholders liabilities | 1 | 6 |
Balance, end of period | 0 | (4) |
Policyholders Liabilities | Unrealized Investment Gains Losses All Other | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Balance, beginning of year | (238) | (192) |
Impact of net unrealized investment gains (losses) on policyholders liabilities | 110 | 14 |
Balance, end of period | (128) | (178) |
Deferred Income Tax Asset Liability | Unrealized Investment Gains Losses With OTTI Losses | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Balance, beginning of year | (7) | (4) |
Impact of net unrealized investment gains (losses) on Deferred income taxes | 7 | 0 |
Balance, end of period | 0 | (4) |
Deferred Income Tax Asset Liability | Unrealized Investment Gains Losses All Other | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Balance, beginning of year | (383) | (95) |
Impact of net unrealized investment gains (losses) on Deferred income taxes | 239 | (60) |
Balance, end of period | (144) | (155) |
AOCI Gain Losses Related to Net Unrealized Investment Gains Losses | Unrealized Investment Gains Losses With OTTI Losses | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Balance, beginning of year | (6) | 6 |
Net investment gains (losses) arising during the period | 0 | 63 |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 |
Impact of net unrealized investment gains (losses) on DAC | 0 | (4) |
Impact of net unrealized investment gains (losses) on Deferred income taxes | 7 | 0 |
Impact of net unrealized investment gains (losses) on policyholders liabilities | 1 | 6 |
Balance, end of period | 0 | 6 |
AOCI Gain Losses Related to Net Unrealized Investment Gains Losses | Unrealized Investment Gains Losses All Other | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Balance, beginning of year | 892 | 196 |
Net investment gains (losses) arising during the period | (109) | 176 |
Reclassification adjustment for OTTI losses excluded from Net earnings (loss) | 0 | 0 |
Impact of net unrealized investment gains (losses) on DAC | 341 | (68) |
Impact of net unrealized investment gains (losses) on Deferred income taxes | 239 | (60) |
Impact of net unrealized investment gains (losses) on policyholders liabilities | 110 | 14 |
Balance, end of period | (73) | 287 |
Fixed Maturities | Net Unrealized Gains (Losses) On Investments | Unrealized Investment Gains Losses With OTTI Losses | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Balance, beginning of year | 2 | |
Included in Net income (loss) | (2) | (65) |
Balance, end of period | 0 | |
Fixed Maturities | Net Unrealized Gains (Losses) On Investments | Unrealized Investment Gains Losses All Other | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Balance, beginning of year | 1,871 | |
Included in Net income (loss) | (1,546) | 29 |
Balance, end of period | 216 | |
Fixed Maturities | AOCI Gain Losses Related to Net Unrealized Investment Gains Losses | Unrealized Investment Gains Losses With OTTI Losses | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Included in Net income (loss) | (2) | (65) |
Fixed Maturities | AOCI Gain Losses Related to Net Unrealized Investment Gains Losses | Unrealized Investment Gains Losses All Other | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Included in Net income (loss) | (1,546) | $ 29 |
Equity securities | Net Unrealized Gains (Losses) On Investments | Unrealized Investment Gains Losses All Other | ||
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ||
Balance, beginning of year | 2 | |
Balance, end of period | $ 0 |
INVESTMENTS - Gross Unrealized
INVESTMENTS - Gross Unrealized Losses (Details) $ in Millions | Mar. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Investments, Debt and Equity Securities [Abstract] | ||
Number of fixed maturities in an unrealized loss position greater than 12 months | security | 1,411 | 752 |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | $ 14,543 | $ 5,739 |
Less Than 12 Months, Gross Unrealized Losses | 418 | 30 |
Greater than 12 Months, Fair Value | 5,749 | 6,011 |
Greater Than 12 Months, Gross Unrealized Losses | 514 | 294 |
Total, Fair Value | 20,292 | 11,750 |
Total, Gross Unrealized Losses | 932 | 324 |
Public corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 8,539 | 2,123 |
Less Than 12 Months, Gross Unrealized Losses | 263 | 15 |
Greater than 12 Months, Fair Value | 605 | 690 |
Greater Than 12 Months, Gross Unrealized Losses | 35 | 18 |
Total, Fair Value | 9,144 | 2,813 |
Total, Gross Unrealized Losses | 298 | 33 |
Private Corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 2,457 | 780 |
Less Than 12 Months, Gross Unrealized Losses | 63 | 8 |
Greater than 12 Months, Fair Value | 660 | 641 |
Greater Than 12 Months, Gross Unrealized Losses | 44 | 24 |
Total, Fair Value | 3,117 | 1,421 |
Total, Gross Unrealized Losses | 107 | 32 |
U.S. Treasury, government and agency | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 3,129 | 2,718 |
Less Than 12 Months, Gross Unrealized Losses | 81 | 6 |
Greater than 12 Months, Fair Value | 4,325 | 4,506 |
Greater Than 12 Months, Gross Unrealized Losses | 425 | 245 |
Total, Fair Value | 7,454 | 7,224 |
Total, Gross Unrealized Losses | 506 | 251 |
States and political subdivisions | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 19 | 20 |
Less Than 12 Months, Gross Unrealized Losses | 1 | 0 |
Greater than 12 Months, Fair Value | 0 | 0 |
Greater Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 19 | 20 |
Total, Gross Unrealized Losses | 1 | 0 |
Foreign governments | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 57 | 11 |
Less Than 12 Months, Gross Unrealized Losses | 2 | 0 |
Greater than 12 Months, Fair Value | 70 | 73 |
Greater Than 12 Months, Gross Unrealized Losses | 7 | 5 |
Total, Fair Value | 127 | 84 |
Total, Gross Unrealized Losses | 9 | 5 |
Residential mortgage-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 145 | 62 |
Less Than 12 Months, Gross Unrealized Losses | 2 | 0 |
Greater than 12 Months, Fair Value | 76 | 76 |
Greater Than 12 Months, Gross Unrealized Losses | 1 | 1 |
Total, Fair Value | 221 | 138 |
Total, Gross Unrealized Losses | 3 | 1 |
Asset-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 81 | 15 |
Less Than 12 Months, Gross Unrealized Losses | 4 | 1 |
Greater than 12 Months, Fair Value | 1 | 12 |
Greater Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 82 | 27 |
Total, Gross Unrealized Losses | 4 | 1 |
Redeemable preferred stock | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less Than 12 Months, Fair Value | 116 | 10 |
Less Than 12 Months, Gross Unrealized Losses | 2 | 0 |
Greater than 12 Months, Fair Value | 12 | 13 |
Greater Than 12 Months, Gross Unrealized Losses | 2 | 1 |
Total, Fair Value | 128 | 23 |
Total, Gross Unrealized Losses | $ 4 | $ 1 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) | Jan. 03, 2017USD ($) | Mar. 31, 2018USD ($)joint_venture | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | |||||
Debt securities exposure in single issuer greater than stated percentage of total investments | 0.50% | 0.50% | |||
Available-for-sale securities, amortized cost basis | $ 43,268,000,000 | $ 43,268,000,000 | $ 45,256,000,000 | ||
Available-for-sale securities, continuous unrealized loss position, 12 months or longer accumulated loss | 514,000,000 | 514,000,000 | 294,000,000 | ||
Available for sale securities continuous non-income producing position 12 months | 3,000,000 | 3,000,000 | |||
Investment expenses | $ 19,000,000 | ||||
Trading securities, at fair value | 14,919,000,000 | 14,919,000,000 | 14,170,000,000 | ||
Separate account equity investment carrying value | $ 49,000,000 | $ 49,000,000 | 50,000,000 | ||
Number of real estate joint ventures sold | joint_venture | 2 | ||||
Proceeds from sales of business, affiliate and productive assets | $ 143,000,000 | ||||
Pre-tax loss on sale of interest in consolidated real estate joint venture | 200,000 | ||||
Reduction in long term debt due to sale of joint venture | 203,000,000 | ||||
Average of the worst scenarios, percent | 2.00% | ||||
Transfer of financial assets accounted for as sales, fair value of derecognized assets | 3,673,000,000 | $ 3,673,000,000 | 3,905,000,000 | ||
Transfer of financial assets accounted for as sales, cash proceeds received for assets derecognized, amount | 3,906,000,000 | ||||
Interest rate derivative assets, fair value | 16,000,000 | 16,000,000 | |||
Cash and securities collateral for derivative contract | 2,208,000,000 | 2,208,000,000 | 2,123,000,000 | ||
Collateralized derivative transactions | 2,000,000 | 2,000,000 | 2,000,000 | ||
Cash and securities collateral | 7,000,000 | 7,000,000 | 4,000,000 | ||
Reduction to gross derivative assets | $ 1,000,000 | ||||
Securities sold under agreements to repurchase | 1,904,000,000 | 1,904,000,000 | 1,887,000,000 | ||
Other accrued liabilities, current | 7,000,000 | 7,000,000 | 5,000,000 | ||
Treasury Lock | |||||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | |||||
Unrealized gain (loss) on derivatives | (88,000,000) | (86,000,000) | |||
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | |||||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | |||||
Exchange-traded future contract, initial margin requirement | 250,000,000 | 250,000,000 | |||
Us Treasury Notes And Euro Dollar | |||||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | |||||
Exchange-traded future contract, initial margin requirement | 67,000,000 | 67,000,000 | |||
Euro Stoxx, FTSE100, EAFE And Topix Indices | |||||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | |||||
Exchange-traded future contract, initial margin requirement | 24,000,000 | 24,000,000 | |||
Agricultural Mortgage Loans | |||||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | |||||
Financing receivable, allowance for credit losses | 0 | 0 | $ 0 | ||
Commercial Mortgage Loans | |||||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | |||||
Financing receivable, recorded investment, nonaccrual status | 19,000,000 | 19,000,000 | 19,000,000 | ||
Other Than Investment Grade | |||||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | |||||
Available-for-sale securities, amortized cost basis other than investment grade | $ 1,335,000,000 | $ 1,335,000,000 | $ 1,372,000,000 | ||
Percentage of available for sale securities | 3.10% | 3.10% | 3.00% | ||
Public corporate | |||||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | |||||
Debt securities exposure in single issuer of total investments | $ 219,000,000 | $ 219,000,000 | $ 207,000,000 | ||
Available-for-sale securities, amortized cost basis | 18,513,000,000 | 18,513,000,000 | 17,181,000,000 | ||
Available-for-sale securities, continuous unrealized loss position, 12 months or longer accumulated loss | 35,000,000 | 35,000,000 | 18,000,000 | ||
Fixed Maturities | |||||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | |||||
Available-for-sale securities, amortized cost basis | $ 43,268,000,000 | 43,268,000,000 | 45,068,000,000 | ||
Fixed Maturities | Other Than Investment Grade | |||||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | |||||
Available-for-sale securities, gross unrealized loss | $ 14,000,000 | $ 5,000,000 |
INVESTMENTS - Trading Securitie
INVESTMENTS - Trading Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ (121) | $ 87 |
Net investment gains (losses) recognized on securities sold during the period | 1 | 4 |
Unrealized and realized gains (losses) on trading securities arising during the period | (120) | 91 |
Interest and dividend income from trading securities | 76 | 63 |
Net investment income (loss) from trading securities | $ (44) | $ 154 |
INVESTMENTS - Valuation Allowan
INVESTMENTS - Valuation Allowance For Mortgage Loans (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Allowance for credit losses: | |||
March 31, Individually Evaluated for Impairment | $ 7,000,000 | $ 8,000,000 | |
Commercial Mortgage Loans | |||
Allowance for credit losses: | |||
Beginning balance, January 1, | 8,000,000 | $ 8,000,000 | |
Charge-offs | 0 | 0 | |
Recoveries | (1,000,000) | 0 | |
Provision | 0 | 0 | |
Ending balance, March 31, | 7,000,000 | 8,000,000 | |
March 31, Individually Evaluated for Impairment | 7,000,000 | 8,000,000 | |
Agricultural Mortgage Loans | |||
Allowance for credit losses: | |||
Ending balance, March 31, | $ 0 | $ 0 |
INVESTMENTS - Mortgage Loans (D
INVESTMENTS - Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | $ 712 | |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 712 | |
Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 8,755 | $ 8,386 |
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 27 | 27 |
Financing receivables, recorded investment, current | 8,728 | 8,359 |
Total Financing Receivables | 8,755 | 8,386 |
Recorded Investment 90 Days or More and Accruing | 0 | 0 |
Commercial Mortgage Loans | With no related allowance recorded | ||
Impaired Mortgage Loans | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Commercial Mortgage Loans | With related allowance recorded | ||
Impaired Mortgage Loans | ||
Recorded Investment | 27 | 27 |
Unpaid Principal Balance | 27 | 27 |
Related Allowance | (7) | (8) |
Average Recorded Investment | 27 | 27 |
Interest Income Recognized | 0 | 2 |
Commercial Mortgage Loans | 30-59 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 0 | 27 |
Commercial Mortgage Loans | 60-89 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 0 | 0 |
Commercial Mortgage Loans | 90 Days or More | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 27 | 0 |
Commercial Mortgage Loans | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 5,383 | 5,016 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 5,383 | 5,016 |
Commercial Mortgage Loans | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 774 | 792 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 774 | 792 |
Commercial Mortgage Loans | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,614 | 1,609 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 1,614 | 1,609 |
Commercial Mortgage Loans | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 779 | 774 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 779 | 774 |
Commercial Mortgage Loans | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 205 | 195 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 205 | 195 |
Commercial Mortgage Loans | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 0% - 50% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,152 | 1,153 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 1,152 | 1,153 |
Commercial Mortgage Loans | 0% - 50% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 737 | 759 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 737 | 759 |
Commercial Mortgage Loans | 0% - 50% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 21 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 21 | 0 |
Commercial Mortgage Loans | 0% - 50% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 321 | 320 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 321 | 320 |
Commercial Mortgage Loans | 0% - 50% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 73 | 74 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 73 | 74 |
Commercial Mortgage Loans | 0% - 50% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 0% - 50% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 50% - 70% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 6,819 | 6,409 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 6,819 | 6,409 |
Commercial Mortgage Loans | 50% - 70% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 4,477 | 4,088 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 4,477 | 4,088 |
Commercial Mortgage Loans | 50% - 70% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 643 | 682 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 643 | 682 |
Commercial Mortgage Loans | 50% - 70% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,122 | 1,066 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 1,122 | 1,066 |
Commercial Mortgage Loans | 50% - 70% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 399 | 428 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 399 | 428 |
Commercial Mortgage Loans | 50% - 70% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 178 | 145 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 178 | 145 |
Commercial Mortgage Loans | 50% - 70% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 70% - 90% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 757 | 797 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 757 | 797 |
Commercial Mortgage Loans | 70% - 90% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 169 | 169 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 169 | 169 |
Commercial Mortgage Loans | 70% - 90% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 110 | 110 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 110 | 110 |
Commercial Mortgage Loans | 70% - 90% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 144 | 196 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 144 | 196 |
Commercial Mortgage Loans | 70% - 90% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 307 | 272 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 307 | 272 |
Commercial Mortgage Loans | 70% - 90% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 27 | 50 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 27 | 50 |
Commercial Mortgage Loans | 70% - 90% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 27 | 27 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 27 | 27 |
Commercial Mortgage Loans | 90% plus | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 27 | 27 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 27 | 27 |
Commercial Mortgage Loans | 90% plus | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Commercial Mortgage Loans | 90% plus | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 2,585 | 2,574 |
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 54 | 74 |
Financing receivables, recorded investment, current | 2,531 | 2,500 |
Total Financing Receivables | 2,585 | 2,574 |
Recorded Investment 90 Days or More and Accruing | 39 | 22 |
Agricultural Mortgage Loans | With no related allowance recorded | ||
Impaired Mortgage Loans | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Agricultural Mortgage Loans | With related allowance recorded | ||
Impaired Mortgage Loans | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Agricultural Mortgage Loans | 30-59 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 10 | 49 |
Agricultural Mortgage Loans | 60-89 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 5 | 3 |
Agricultural Mortgage Loans | 90 Days or More | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 39 | 22 |
Agricultural Mortgage Loans | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 386 | 383 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 386 | 383 |
Agricultural Mortgage Loans | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 199 | 195 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 199 | 195 |
Agricultural Mortgage Loans | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 495 | 502 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 495 | 502 |
Agricultural Mortgage Loans | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 879 | 878 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 879 | 878 |
Agricultural Mortgage Loans | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 549 | 537 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 549 | 537 |
Agricultural Mortgage Loans | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 77 | 79 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 77 | 79 |
Agricultural Mortgage Loans | 0% - 50% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,550 | 1,557 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 1,550 | 1,557 |
Agricultural Mortgage Loans | 0% - 50% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 275 | 272 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 275 | 272 |
Agricultural Mortgage Loans | 0% - 50% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 153 | 149 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 153 | 149 |
Agricultural Mortgage Loans | 0% - 50% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 276 | 275 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 276 | 275 |
Agricultural Mortgage Loans | 0% - 50% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 496 | 515 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 496 | 515 |
Agricultural Mortgage Loans | 0% - 50% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 321 | 316 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 321 | 316 |
Agricultural Mortgage Loans | 0% - 50% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 29 | 30 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 29 | 30 |
Agricultural Mortgage Loans | 50% - 70% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,012 | 1,013 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 1,012 | 1,013 |
Agricultural Mortgage Loans | 50% - 70% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 111 | 111 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 111 | 111 |
Agricultural Mortgage Loans | 50% - 70% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 46 | 46 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 46 | 46 |
Agricultural Mortgage Loans | 50% - 70% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 219 | 227 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 219 | 227 |
Agricultural Mortgage Loans | 50% - 70% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 360 | 359 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 360 | 359 |
Agricultural Mortgage Loans | 50% - 70% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 228 | 221 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 228 | 221 |
Agricultural Mortgage Loans | 50% - 70% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 48 | 49 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 48 | 49 |
Agricultural Mortgage Loans | 70% - 90% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 23 | 4 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 23 | 4 |
Agricultural Mortgage Loans | 70% - 90% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 23 | 4 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 23 | 4 |
Agricultural Mortgage Loans | 70% - 90% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Total Mortgages Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 11,340 | 10,960 |
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 81 | 101 |
Financing receivables, recorded investment, current | 11,259 | 10,859 |
Total Financing Receivables | 11,340 | 10,960 |
Recorded Investment 90 Days or More and Accruing | 39 | 22 |
Total Mortgages Loan | With no related allowance recorded | ||
Impaired Mortgage Loans | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Total Mortgages Loan | With related allowance recorded | ||
Impaired Mortgage Loans | ||
Recorded Investment | 27 | 27 |
Unpaid Principal Balance | 27 | 27 |
Related Allowance | (7) | (8) |
Average Recorded Investment | 27 | 27 |
Interest Income Recognized | 0 | 2 |
Total Mortgages Loan | 30-59 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 10 | 76 |
Total Mortgages Loan | 60-89 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 5 | 3 |
Total Mortgages Loan | 90 Days or More | ||
Age Analysis of Past Due Mortgage Loan | ||
Financing receivables, recorded investment, past due | 66 | 22 |
Total Mortgages Loan | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 5,769 | 5,399 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 5,769 | 5,399 |
Total Mortgages Loan | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 973 | 987 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 973 | 987 |
Total Mortgages Loan | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 2,109 | 2,111 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 2,109 | 2,111 |
Total Mortgages Loan | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,658 | 1,652 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 1,658 | 1,652 |
Total Mortgages Loan | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 754 | 732 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 754 | 732 |
Total Mortgages Loan | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 77 | 79 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 77 | 79 |
Total Mortgages Loan | 0% - 50% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 2,702 | 2,710 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 2,702 | 2,710 |
Total Mortgages Loan | 0% - 50% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,012 | 1,031 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 1,012 | 1,031 |
Total Mortgages Loan | 0% - 50% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 174 | 149 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 174 | 149 |
Total Mortgages Loan | 0% - 50% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 597 | 595 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 597 | 595 |
Total Mortgages Loan | 0% - 50% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 569 | 589 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 569 | 589 |
Total Mortgages Loan | 0% - 50% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 321 | 316 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 321 | 316 |
Total Mortgages Loan | 0% - 50% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 29 | 30 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 29 | 30 |
Total Mortgages Loan | 50% - 70% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 7,831 | 7,422 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 7,831 | 7,422 |
Total Mortgages Loan | 50% - 70% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 4,588 | 4,199 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 4,588 | 4,199 |
Total Mortgages Loan | 50% - 70% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 689 | 728 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 689 | 728 |
Total Mortgages Loan | 50% - 70% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 1,341 | 1,293 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 1,341 | 1,293 |
Total Mortgages Loan | 50% - 70% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 759 | 787 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 759 | 787 |
Total Mortgages Loan | 50% - 70% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 406 | 366 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 406 | 366 |
Total Mortgages Loan | 50% - 70% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 48 | 49 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 48 | 49 |
Total Mortgages Loan | 70% - 90% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 780 | 801 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 780 | 801 |
Total Mortgages Loan | 70% - 90% | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 169 | 169 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 169 | 169 |
Total Mortgages Loan | 70% - 90% | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 110 | 110 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 110 | 110 |
Total Mortgages Loan | 70% - 90% | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 144 | 196 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 144 | 196 |
Total Mortgages Loan | 70% - 90% | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 330 | 276 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 330 | 276 |
Total Mortgages Loan | 70% - 90% | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 27 | 50 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 27 | 50 |
Total Mortgages Loan | 70% - 90% | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 27 | 27 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 27 | 27 |
Total Mortgages Loan | 90% plus | Greater than 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | 1.8x to 2.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | 1.5x to 1.8x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 27 | 27 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 27 | 27 |
Total Mortgages Loan | 90% plus | 1.2x to 1.5x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | 1.0x to 1.2x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | 0 | 0 |
Total Mortgages Loan | 90% plus | Less than 1.0x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Total Mortgage Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Financing Receivables | $ 0 | $ 0 |
INVESTMENTS - Derivatives by Ca
INVESTMENTS - Derivatives by Category (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | $ 94,922 | $ 87,914 | ||||
Fair Value, Assets Derivatives | 6,017 | 6,046 | ||||
Fair Value, Liabilities Derivatives | 9,803 | 10,137 | ||||
Gains (Losses) Reported In Net Income (Loss) | (272) | $ (242) | ||||
Net derivative investment gains (loss) | (281) | (235) | $ 494 | $ 128 | 115 | $ (1,843) |
Other accrued liabilities, current | 7 | 5 | ||||
Equity Futures | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 6,629 | 6,716 | ||||
Fair Value, Assets Derivatives | 2 | 1 | ||||
Fair Value, Liabilities Derivatives | 1 | 2 | ||||
Gains (Losses) Reported In Net Income (Loss) | (23) | (396) | ||||
Equity Swaps | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 8,017 | 7,623 | ||||
Fair Value, Assets Derivatives | 255 | 4 | ||||
Fair Value, Liabilities Derivatives | 16 | 201 | ||||
Gains (Losses) Reported In Net Income (Loss) | 114 | (405) | ||||
Equity Option | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 23,013 | 22,223 | ||||
Fair Value, Assets Derivatives | 3,350 | 3,456 | ||||
Fair Value, Liabilities Derivatives | 1,411 | 1,457 | ||||
Gains (Losses) Reported In Net Income (Loss) | (18) | 318 | ||||
Interest Rate Swaps | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 29,331 | 26,769 | ||||
Fair Value, Assets Derivatives | 555 | 604 | ||||
Fair Value, Liabilities Derivatives | 395 | 193 | ||||
Gains (Losses) Reported In Net Income (Loss) | (671) | 143 | ||||
Interest Rate Futures | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 24,015 | 20,675 | ||||
Fair Value, Assets Derivatives | 0 | 0 | ||||
Fair Value, Liabilities Derivatives | 0 | 0 | ||||
Gains (Losses) Reported In Net Income (Loss) | 40 | (19) | ||||
Credit Default Swaps | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 2,136 | 2,131 | ||||
Fair Value, Assets Derivatives | 32 | 35 | ||||
Fair Value, Liabilities Derivatives | 3 | 3 | ||||
Gains (Losses) Reported In Net Income (Loss) | 0 | 6 | ||||
Foreign Currency Contracts | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 1,781 | 1,423 | ||||
Fair Value, Assets Derivatives | 10 | 19 | ||||
Fair Value, Liabilities Derivatives | 52 | 10 | ||||
Gains (Losses) Reported In Net Income (Loss) | (51) | (1) | ||||
Margin | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 0 | 0 | ||||
Fair Value, Assets Derivatives | 62 | 24 | ||||
Fair Value, Liabilities Derivatives | 57 | 4 | ||||
Gains (Losses) Reported In Net Income (Loss) | 0 | 0 | ||||
Net Amounts Of Liabilities Presented In Statement Of Financial Position | 0 | 0 | ||||
Collateral | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 0 | 0 | ||||
Fair Value, Assets Derivatives | 17 | 4 | ||||
Fair Value, Liabilities Derivatives | 2,208 | 2,123 | ||||
Gains (Losses) Reported In Net Income (Loss) | 0 | 0 | ||||
Net Amounts Of Liabilities Presented In Statement Of Financial Position | 0 | 0 | ||||
GMIB Reinsurance Contracts | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 0 | 0 | ||||
Fair Value, Assets Derivatives | 1,734 | 1,894 | ||||
Fair Value, Liabilities Derivatives | 0 | 0 | ||||
Gains (Losses) Reported In Net Income (Loss) | (159) | (71) | ||||
GMxB Derivative Features’ Liability | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 0 | 0 | ||||
Fair Value, Assets Derivatives | 0 | 0 | ||||
Fair Value, Liabilities Derivatives | 3,977 | 4,358 | ||||
Gains (Losses) Reported In Net Income (Loss) | 460 | 507 | ||||
SCS, SIO, MSO and IUL Indexed Features | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 0 | 0 | ||||
Fair Value, Assets Derivatives | 0 | 0 | ||||
Fair Value, Liabilities Derivatives | 1,683 | 1,786 | ||||
Gains (Losses) Reported In Net Income (Loss) | 27 | (317) | ||||
Cross Currency Swaps | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 0 | 354 | ||||
Fair Value, Assets Derivatives | 0 | 5 | ||||
Fair Value, Liabilities Derivatives | 0 | 0 | ||||
Gains (Losses) Reported In Net Income (Loss) | 9 | $ (7) | ||||
Net Amounts Of Liabilities Presented In Statement Of Financial Position | $ 0 | $ 0 |
INVESTMENTS - Equity-Based and
INVESTMENTS - Equity-Based and Treasury Future Contracts (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash and securities collateral for derivative contract | $ 2,208 | $ 2,123 |
Collateralized derivative transactions | 2 | 2 |
Cash and securities collateral | 7 | 4 |
Exchange Traded Future Contract [Line Items] | ||
Securities sold under agreements to repurchase | 1,904 | 1,887 |
Securities sold under agreements to repurchase | ||
Exchange Traded Future Contract [Line Items] | ||
Securities sold under agreements to repurchase | 1,897 | $ 1,882 |
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | ||
Exchange Traded Future Contract [Line Items] | ||
Exchange-traded future contract, initial margin requirement | 250 | |
Us Treasury Notes And Euro Dollar | ||
Exchange Traded Future Contract [Line Items] | ||
Exchange-traded future contract, initial margin requirement | 67 | |
Euro Stoxx, FTSE100, EAFE And Topix Indices | ||
Exchange Traded Future Contract [Line Items] | ||
Exchange-traded future contract, initial margin requirement | $ 24 |
INVESTMENTS - Derivatives Offse
INVESTMENTS - Derivatives Offsetting Financial Assets (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Reverse Repurchase agreements [Abstract] | ||
Fair value assets derivatives | $ 6,017 | $ 6,046 |
Equity contracts | ||
ASSETS | ||
Gross Amounts Recognized | 3,606 | 3,461 |
Gross Amounts Offset in the Balance Sheets | 1,429 | 1,660 |
Net Amounts Presented in the Balance Sheets | 2,177 | 1,801 |
Interest rate contracts | ||
ASSETS | ||
Gross Amounts Recognized | 555 | 604 |
Gross Amounts Offset in the Balance Sheets | 395 | 193 |
Net Amounts Presented in the Balance Sheets | 160 | 411 |
Credit contracts | ||
ASSETS | ||
Gross Amounts Recognized | 32 | 35 |
Gross Amounts Offset in the Balance Sheets | 3 | 3 |
Net Amounts Presented in the Balance Sheets | 29 | 32 |
Reverse Repurchase agreements [Abstract] | ||
Fair value assets derivatives | 32 | 35 |
Currency | ||
ASSETS | ||
Gross Amounts Recognized | 10 | 19 |
Gross Amounts Offset in the Balance Sheets | 52 | 10 |
Net Amounts Presented in the Balance Sheets | (42) | 9 |
Reverse Repurchase agreements [Abstract] | ||
Fair value assets derivatives | 0 | 5 |
Collateral | ||
ASSETS | ||
Gross Amounts Recognized | 17 | 4 |
Gross Amounts Offset in the Balance Sheets | 2,208 | 2,123 |
Net Amounts Presented in the Balance Sheets | (2,191) | (2,119) |
Reverse Repurchase agreements [Abstract] | ||
Fair value assets derivatives | 17 | 4 |
Margin | ||
ASSETS | ||
Gross Amounts Recognized | 62 | 24 |
Gross Amounts Offset in the Balance Sheets | 57 | 4 |
Net Amounts Presented in the Balance Sheets | 5 | 20 |
Reverse Repurchase agreements [Abstract] | ||
Fair value assets derivatives | 62 | 24 |
Total Derivatives, subject to an ISDA Master Agreement | ||
ASSETS | ||
Gross Amounts Recognized | 4,282 | 4,147 |
Gross Amounts Offset in the Balance Sheets | 4,144 | 3,993 |
Net Amounts Presented in the Balance Sheets | 138 | 154 |
Other financial instruments | ||
ASSETS | ||
Gross Amounts Recognized | 3,923 | 3,964 |
Gross Amounts Offset in the Balance Sheets | 0 | 0 |
Net Amounts Presented in the Balance Sheets | 3,923 | 3,964 |
Other invested assets | ||
ASSETS | ||
Gross Amounts Recognized | 8,205 | 8,111 |
Gross Amounts Offset in the Balance Sheets | 4,144 | 3,993 |
Net Amounts Presented in the Balance Sheets | $ 4,061 | 4,118 |
Total Derivatives, not subject to an ISDA Master Agreement | ||
Reverse Repurchase agreements [Abstract] | ||
Gross Amounts Recognized | 5 | |
Gross Amounts Offset in the Balance Sheets | 0 | |
Net Amounts Presented in the Balance Sheets | $ 5 |
INVESTMENTS - Derivatives Off55
INVESTMENTS - Derivatives Offsetting Financial Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Securities sold under agreement to repurchase | ||
Net Amounts Presented in the Balance Sheets | $ 1,904 | $ 1,887 |
Expense accrual | 7 | 5 |
Equity contracts | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 1,429 | 1,660 |
Gross Amounts Offset in the Balance Sheets | 1,429 | 1,660 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Interest rate contracts | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 395 | 193 |
Gross Amounts Offset in the Balance Sheets | 395 | 193 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Credit contracts | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 3 | 3 |
Gross Amounts Offset in the Balance Sheets | 3 | 3 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Currency | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 52 | 10 |
Gross Amounts Offset in the Balance Sheets | 52 | 10 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Collateral | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 2,208 | 2,123 |
Gross Amounts Offset in the Balance Sheets | 2,208 | 2,123 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Margin | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 57 | 4 |
Gross Amounts Offset in the Balance Sheets | 57 | 4 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Total Derivatives, subject to an ISDA Master Agreement | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 4,144 | 3,993 |
Gross Amounts Offset in the Balance Sheets | 4,144 | 3,993 |
Net Amounts Presented in the Balance Sheets | 0 | 0 |
Other financial liabilities | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 4,342 | 4,053 |
Gross Amounts Offset in the Balance Sheets | 0 | 0 |
Net Amounts Presented in the Balance Sheets | 4,342 | 4,053 |
Other liabilities | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized | 8,486 | 8,046 |
Gross Amounts Offset in the Balance Sheets | 4,144 | 3,993 |
Net Amounts Presented in the Balance Sheets | 4,342 | 4,053 |
Securities sold under agreements to repurchase | ||
Securities sold under agreement to repurchase | ||
Gross Amounts Recognized | 1,897 | 1,882 |
Gross Amounts Offset in the Balance Sheets | 0 | 0 |
Net Amounts Presented in the Balance Sheets | $ 1,897 | $ 1,882 |
INVESTMENTS - Derivatives, Gros
INVESTMENTS - Derivatives, Gross Collateral Amounts, Assets (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Total derivatives | ||
Assets | ||
Net Amounts Presented in the Balance Sheets | $ 2,324 | $ 2,253 |
Collateral (Received)/Held | ||
Financial Instruments | 0 | 0 |
Cash | (2,186) | (2,099) |
Net Amounts | 138 | 154 |
Other financial instruments | ||
Assets | ||
Net Amounts Presented in the Balance Sheets | 3,923 | 3,964 |
Collateral (Received)/Held | ||
Financial Instruments | 0 | 0 |
Cash | 0 | 0 |
Net Amounts | 3,923 | 3,964 |
Other invested assets | ||
Assets | ||
Net Amounts Presented in the Balance Sheets | 6,247 | 6,217 |
Collateral (Received)/Held | ||
Financial Instruments | 0 | 0 |
Cash | (2,186) | (2,099) |
Net Amounts | $ 4,061 | $ 4,118 |
INVESTMENTS - Derivatives, Gr57
INVESTMENTS - Derivatives, Gross Collateral Amounts, Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Liabilities: | ||
Net Amounts Presented in the Balance Sheets | $ 1,904 | $ 1,887 |
Collateral (Received)/Held | ||
Other accrued liabilities, current | 7 | 5 |
Securities sold under agreement to repurchase | ||
Liabilities: | ||
Net Amounts Presented in the Balance Sheets | 1,897 | 1,882 |
Collateral (Received)/Held | ||
Securities sold under agreement to repurchase, Financial Instruments | (1,923) | (1,988) |
Securities sold under agreement to repurchase, Cash | 0 | (21) |
Net Amounts | $ (26) | (127) |
Securities sold under agreement to repurchase | Other financial liabilities | ||
Liabilities: | ||
Net Amounts Presented in the Balance Sheets | 4,053 | |
Collateral (Received)/Held | ||
Securities sold under agreement to repurchase, Financial Instruments | 0 | |
Securities sold under agreement to repurchase, Cash | 0 | |
Net Amounts | 4,053 | |
Securities sold under agreement to repurchase | Other liabilities | ||
Liabilities: | ||
Net Amounts Presented in the Balance Sheets | 4,053 | |
Collateral (Received)/Held | ||
Securities sold under agreement to repurchase, Financial Instruments | 0 | |
Securities sold under agreement to repurchase, Cash | 0 | |
Net Amounts | $ 4,053 |
INVESTMENTS - Repurchase Agreem
INVESTMENTS - Repurchase Agreements Accounted for as Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | $ 1,897 | $ 1,882 |
Other accrued liabilities, current | 7 | 5 |
Overnight and Continuous | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Up to 30 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 1,897 | 1,882 |
30–90 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Greater Than 90 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
U.S. Treasury and agency securities | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 1,897 | 1,882 |
U.S. Treasury and agency securities | Overnight and Continuous | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
U.S. Treasury and agency securities | Up to 30 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 1,897 | 1,882 |
U.S. Treasury and agency securities | 30–90 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
U.S. Treasury and agency securities | Greater Than 90 days | ||
Repurchase agreements accounted for as secured borrowings [Line Items] | ||
Repurchase agreements | $ 0 | $ 0 |
CLOSED BLOCK - Summarized Finan
CLOSED BLOCK - Summarized Financial Information (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
CLOSED BLOCK LIABILITIES: | ||||
Future policy benefits, policyholders’ account balances and other | $ 6,904 | $ 6,958 | ||
Policyholder dividend obligation | 0 | 19 | $ 38 | $ 52 |
Other liabilities | 269 | 271 | ||
Total Closed Block liabilities | 7,173 | 7,248 | ||
ASSETS DESIGNATED TO THE CLOSED BLOCK: | ||||
Fixed maturities, available for sale, at fair value (amortized cost of $3,864 and $3,923) | 3,908 | 4,070 | ||
Amortized cost of fixed maturities | 3,864 | 3,923 | ||
Mortgage loans on real estate | 1,837 | 1,720 | ||
Policy loans | 772 | 781 | ||
Cash and other invested assets | 235 | 351 | ||
Other assets | 192 | 182 | ||
Total assets designated to the Closed Block | 6,944 | 7,104 | ||
Excess of Closed Block liabilities over assets designated to the Closed Block | 229 | 144 | ||
Amounts included in accumulated other comprehensive income (loss): | ||||
Net unrealized investment gains (losses), net of policyholder dividend obligation of $0 and $19 | 55 | 138 | ||
Policyholder dividend obligation | 0 | 19 | $ 38 | $ 52 |
Maximum Future Earnings To Be Recognized From Closed Block Assets and Liabilities | $ 284 | $ 282 |
CLOSED BLOCK - Revenues and Exp
CLOSED BLOCK - Revenues and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
REVENUES: | ||
Premiums and other income | $ 51 | $ 54 |
Net investment income (loss) | 73 | 83 |
Net investment gains (losses) | 1 | (15) |
Total revenues | 125 | 122 |
BENEFITS AND OTHER DEDUCTIONS: | ||
Policyholders’ benefits and dividends | 126 | 151 |
Other operating costs and expenses | 1 | 0 |
Total benefits and other deductions | 127 | 151 |
Net revenues (loss) before income taxes | (2) | (29) |
Income tax (expense) benefit | 0 | 10 |
Net Revenues (Losses) | $ (2) | $ (19) |
CLOSED BLOCK - Reconciliation o
CLOSED BLOCK - Reconciliation of Policyholder Dividend Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Movement in Closed Block Dividend Obligation [Roll Forward] | ||
Balances, beginning of year | $ 19 | $ 52 |
Unrealized investment gains (losses), net of DAC | (19) | (14) |
Balances, End of Period | $ 0 | $ 38 |
INSURANCE LIABILITIES - GMDB an
INSURANCE LIABILITIES - GMDB and GMIB Liabilities and Other Policyholder's Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Direct Liability | ||
Balance, beginning of period | $ 8,885 | $ 7,038 |
Paid guarantee benefits | (133) | (121) |
Other changes in reserve | (39) | 2,106 |
Balance, end of period | 8,713 | 9,023 |
GMDB | ||
Direct Liability | ||
Balance, beginning of period | 4,085 | 3,170 |
Paid guarantee benefits | (101) | (89) |
Other changes in reserve | 97 | 187 |
Balance, end of period | 4,081 | 3,268 |
GMIB | ||
Direct Liability | ||
Balance, beginning of period | 4,800 | 3,868 |
Paid guarantee benefits | (32) | (32) |
Other changes in reserve | (136) | 1,919 |
Balance, end of period | $ 4,632 | $ 5,755 |
INSURANCE LIABILITIES - GMDB Re
INSURANCE LIABILITIES - GMDB Reinsurance Ceded (Details) - GMDB - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||
Balance, beginning of year | $ 108 | $ 90 |
Paid guarantee benefits | (5) | (3) |
Other changes in reserve | 2 | 2 |
Balance, End of Period | $ 105 | $ 89 |
INSURANCE LIABILITIES - GMDB 64
INSURANCE LIABILITIES - GMDB Reinsurance Assumed (Details) - GMDB - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Guaranteed Minimum Death Benefit Reinsurance Assumed [Roll Forward] | ||
Balance, beginning of year | $ 95 | $ 121 |
Paid guarantee benefits | (6) | (5) |
Other changes in reserve | (7) | (8) |
Balance, End of Period | $ 82 | $ 108 |
INSURANCE LIABILITIES - Derivat
INSURANCE LIABILITIES - Derivative Instruments in Hedges, Liabilities, at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||
Total embedded and freestanding derivative liabilities | $ 5,660 | $ 6,144 |
GMIB reinsurance contract asset | 1,734 | 1,894 |
GMIBNLG | ||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||
Total embedded and freestanding derivative liabilities | 3,715 | 4,056 |
SCS, SIO, MSO, IUL indexed features | ||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||
Total embedded and freestanding derivative liabilities | 1,683 | 1,786 |
Assumed GMIB reinsurance Contracts | ||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||
Total embedded and freestanding derivative liabilities | 173 | 194 |
GWBL/GMWB | ||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||
Total embedded and freestanding derivative liabilities | 121 | 130 |
GIB | ||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||
Total embedded and freestanding derivative liabilities | (36) | (27) |
GMAB | ||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||
Total embedded and freestanding derivative liabilities | $ 4 | $ 5 |
INSURANCE LIABILITIES - Direct
INSURANCE LIABILITIES - Direct Variable Annuity Contracts with GMDB and GMIB Features (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Account values invested in: | ||
Policyholder age | 70 years | |
GMDB | ||
Account values invested in: | ||
Separate Accounts | $ 92,504 | $ 94,672 |
GMIB | ||
Account values invested in: | ||
Separate Accounts | 60,459 | $ 62,286 |
Direct Variable Annuity | GMDB | ||
Account values invested in: | ||
General Account | 14,213 | |
Separate Accounts | 92,504 | |
Net amount at risk, gross | 18,707 | |
Net amount at risk, net of amounts reinsured | $ 18,063 | |
Average attained age of policyholders | 55 years | |
Percentage of policyholders over age 70 | 18.30% | |
Direct Variable Annuity | GMDB | Minimum | ||
Account values invested in: | ||
Range of contractually specified interest rates | 3.00% | |
Direct Variable Annuity | GMDB | Maximum | ||
Account values invested in: | ||
Range of contractually specified interest rates | 6.50% | |
Direct Variable Annuity | GMDB | Return of Premium | ||
Account values invested in: | ||
General Account | $ 13,848 | |
Separate Accounts | 45,136 | |
Net amount at risk, gross | 186 | |
Net amount at risk, net of amounts reinsured | $ 186 | |
Average attained age of policyholders | 51 years | |
Percentage of policyholders over age 70 | 9.70% | |
Direct Variable Annuity | GMDB | Ratchet | ||
Account values invested in: | ||
General Account | $ 107 | |
Separate Accounts | 9,319 | |
Net amount at risk, gross | 117 | |
Net amount at risk, net of amounts reinsured | $ 111 | |
Average attained age of policyholders | 67 years | |
Percentage of policyholders over age 70 | 40.90% | |
Direct Variable Annuity | GMDB | Roll-Up | ||
Account values invested in: | ||
General Account | $ 64 | |
Separate Accounts | 3,381 | |
Net amount at risk, gross | 2,016 | |
Net amount at risk, net of amounts reinsured | $ 1,378 | |
Average attained age of policyholders | 73 years | |
Percentage of policyholders over age 70 | 63.70% | |
Direct Variable Annuity | GMDB | Roll-Up | Minimum | ||
Account values invested in: | ||
Range of contractually specified interest rates | 3.00% | |
Direct Variable Annuity | GMDB | Roll-Up | Maximum | ||
Account values invested in: | ||
Range of contractually specified interest rates | 6.00% | |
Direct Variable Annuity | GMDB | Combo | ||
Account values invested in: | ||
General Account | $ 194 | |
Separate Accounts | 34,668 | |
Net amount at risk, gross | 16,388 | |
Net amount at risk, net of amounts reinsured | $ 16,388 | |
Average attained age of policyholders | 68 years | |
Percentage of policyholders over age 70 | 47.40% | |
Direct Variable Annuity | GMDB | Combo | Minimum | ||
Account values invested in: | ||
Range of contractually specified interest rates | 3.00% | |
Direct Variable Annuity | GMDB | Combo | Maximum | ||
Account values invested in: | ||
Range of contractually specified interest rates | 6.50% | |
Direct Variable Annuity | GMIB | ||
Account values invested in: | ||
General Account | $ 309 | |
Separate Accounts | 60,459 | |
Net amount at risk, gross | 7,205 | |
Net amount at risk, net of amounts reinsured | $ 6,006 | |
Average attained age of policyholders | 69 years | |
Weighted average years remaining until annuitization | 9 months 18 days | |
Direct Variable Annuity | GMIB | Minimum | ||
Account values invested in: | ||
Range of contractually specified interest rates | 3.00% | |
Direct Variable Annuity | GMIB | Maximum | ||
Account values invested in: | ||
Range of contractually specified interest rates | 6.50% | |
Direct Variable Annuity | GMIB | Roll-Up | ||
Account values invested in: | ||
General Account | $ 24 | |
Separate Accounts | 20,855 | |
Net amount at risk, gross | 883 | |
Net amount at risk, net of amounts reinsured | $ 268 | |
Average attained age of policyholders | 70 years | |
Weighted average years remaining until annuitization | 1 year 8 months 12 days | |
Direct Variable Annuity | GMIB | Roll-Up | Minimum | ||
Account values invested in: | ||
Range of contractually specified interest rates | 3.00% | |
Direct Variable Annuity | GMIB | Roll-Up | Maximum | ||
Account values invested in: | ||
Range of contractually specified interest rates | 6.00% | |
Direct Variable Annuity | GMIB | Combo | ||
Account values invested in: | ||
General Account | $ 285 | |
Separate Accounts | 39,604 | |
Net amount at risk, gross | 6,322 | |
Net amount at risk, net of amounts reinsured | $ 5,738 | |
Average attained age of policyholders | 69 years | |
Weighted average years remaining until annuitization | 8 months 12 days | |
Direct Variable Annuity | GMIB | Combo | Minimum | ||
Account values invested in: | ||
Range of contractually specified interest rates | 3.00% | |
Direct Variable Annuity | GMIB | Combo | Maximum | ||
Account values invested in: | ||
Range of contractually specified interest rates | 6.50% |
INSURANCE LIABILITIES - Assumed
INSURANCE LIABILITIES - Assumed Variable Annuity Contracts with GMDB and GMIB Features (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Policyholder age | 70 years |
Deferred Variable Annuity | GMDB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured Account values | $ 9,053 |
Net amount at risk assumed | $ 666 |
Average attained age of policyholders | 72 years |
Percentage of policyholders over age 70 | 61.90% |
Deferred Variable Annuity | GMDB | Minimum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 3.00% |
Deferred Variable Annuity | GMDB | Maximum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 10.00% |
Deferred Variable Annuity | GMDB | Return of Premium | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured Account values | $ 1,023 |
Net amount at risk assumed | $ 7 |
Average attained age of policyholders | 67 years |
Percentage of policyholders over age 70 | 41.40% |
Deferred Variable Annuity | GMDB | Ratchet | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured Account values | $ 5,849 |
Net amount at risk assumed | $ 314 |
Average attained age of policyholders | 72 years |
Percentage of policyholders over age 70 | 60.80% |
Deferred Variable Annuity | GMDB | Roll-Up | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured Account values | $ 302 |
Net amount at risk assumed | $ 24 |
Average attained age of policyholders | 77 years |
Percentage of policyholders over age 70 | 76.60% |
Deferred Variable Annuity | GMDB | Roll-Up | Minimum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 3.00% |
Deferred Variable Annuity | GMDB | Roll-Up | Maximum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 10.00% |
Deferred Variable Annuity | GMDB | Combo | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured Account values | $ 1,879 |
Net amount at risk assumed | $ 321 |
Average attained age of policyholders | 75 years |
Percentage of policyholders over age 70 | 74.20% |
Deferred Variable Annuity | GMDB | Combo | Minimum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 5.00% |
Deferred Variable Annuity | GMDB | Combo | Maximum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 10.00% |
Deferred Variable Annuity | GMIB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured Account values | $ 2,645 |
Net amount at risk assumed | $ 255 |
Average attained age of policyholders | 70 years |
Percentage of policyholders over age 70 | 54.20% |
Highest contractual interest rate | 10.00% |
Period after issue rate applied | 10 years |
Deferred Variable Annuity | GMIB | Minimum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 3.30% |
Deferred Variable Annuity | GMIB | Maximum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 6.50% |
Deferred Variable Annuity | GMIB | Return of Premium | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured Account values | $ 978 |
Net amount at risk assumed | $ 2 |
Average attained age of policyholders | 71 years |
Percentage of policyholders over age 70 | 61.60% |
Deferred Variable Annuity | GMIB | Ratchet | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured Account values | $ 52 |
Net amount at risk assumed | $ 0 |
Average attained age of policyholders | 74 years |
Percentage of policyholders over age 70 | 63.70% |
Deferred Variable Annuity | GMIB | Roll-Up | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured Account values | $ 277 |
Net amount at risk assumed | $ 38 |
Average attained age of policyholders | 71 years |
Percentage of policyholders over age 70 | 55.90% |
Deferred Variable Annuity | GMIB | Roll-Up | Minimum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 3.30% |
Deferred Variable Annuity | GMIB | Roll-Up | Maximum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 6.50% |
Deferred Variable Annuity | GMIB | Combo | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Reinsured Account values | $ 1,338 |
Net amount at risk assumed | $ 215 |
Average attained age of policyholders | 68 years |
Percentage of policyholders over age 70 | 48.10% |
Deferred Variable Annuity | GMIB | Combo | Minimum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 6.00% |
Deferred Variable Annuity | GMIB | Combo | Maximum | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Range of contractually specified interest rates | 6.00% |
INSURANCE LIABILITIES - Investm
INSURANCE LIABILITIES - Investment in Variable Insurance Trust Mutual Funds (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
GMDB | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | $ 92,504 | $ 94,672 |
GMDB | Equity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 40,678 | 41,658 |
GMDB | Equity | As Previously Reported | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 78,069 | |
GMDB | Fixed income | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 5,384 | 5,469 |
GMDB | Fixed income | As Previously Reported | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 2,234 | |
GMDB | Balanced | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 45,485 | 46,577 |
GMDB | Balanced | As Previously Reported | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 14,084 | |
GMDB | Other | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 957 | 968 |
GMDB | Other | As Previously Reported | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 283 | |
GMIB | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 60,459 | 62,286 |
GMIB | Equity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 19,156 | 19,928 |
GMIB | Equity | As Previously Reported | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 50,429 | |
GMIB | Fixed income | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 3,074 | 3,150 |
GMIB | Fixed income | As Previously Reported | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 1,568 | |
GMIB | Balanced | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 37,918 | 38,890 |
GMIB | Balanced | As Previously Reported | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | 10,165 | |
GMIB | Other | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | $ 311 | 318 |
GMIB | Other | As Previously Reported | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in Separate Account Investment Options | $ 124 |
INSURANCE LIABILITIES - Narrati
INSURANCE LIABILITIES - Narrative (Details) $ in Millions | Mar. 31, 2018USD ($) |
Direct Variable Annuity | GMDB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Account value hedged of variable annuity contracts | $ 68,663 |
Net amount at risk hedged of variable annuity contracts | 17,102 |
Direct Variable Annuity | GMIB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Account value hedged of variable annuity contracts | 57,781 |
Net amount at risk hedged of variable annuity contracts | 7,236 |
Deferred Variable Annuity | GMDB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Account value hedged of variable annuity contracts | 9,053 |
Net amount at risk hedged of variable annuity contracts | 666 |
Deferred Variable Annuity | GMIB | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Account value hedged of variable annuity contracts | 2,645 |
Net amount at risk hedged of variable annuity contracts | $ 255 |
INSURANCE LIABILITIES - Summary
INSURANCE LIABILITIES - Summary of No-Lapse Guarantee Liabilities and Other Policyholder's Liabilities (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Direct Liability | ||
Balance, beginning of period | $ 8,885,000,000 | $ 7,038,000,000 |
Paid Guaranteed Benefits | (133,000,000) | (121,000,000) |
Balance, end of period | 8,713,000,000 | 9,023,000,000 |
Direct Liability | ||
Direct Liability | ||
Balance, beginning of period | 686,000,000 | 1,307,000,000 |
Paid Guaranteed Benefits | (8,000,000) | |
Other changes in reserves | 26,000,000 | 4,000,000 |
Balance, end of period | 704,000,000 | 1,311,000,000 |
Reinsurance Ceded | ||
Direct Liability | ||
Other changes in reserves | $ 0 | $ 0 |
REINSURANCE AGREEMENTS (Details
REINSURANCE AGREEMENTS (Details) $ in Millions | Feb. 01, 2018USD ($) |
Reinsurance Retention Policy [Line Items] | |
Securities | $ 604 |
Cash | 31 |
Statutory reserves | $ 635 |
AXA Equitable Life | |
Reinsurance Retention Policy [Line Items] | |
Percentage of single premium deferred annuities ceded | 90.00% |
Securities | $ 604 |
Cash | 31 |
Statutory reserves | 635 |
Deposit asset recorded in Other assets, net of the ceding commissions paid to the reinsurer | $ 635 |
FAIR VALUE DISCLOSURES - Assets
FAIR VALUE DISCLOSURES - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Investments | ||
Fixed maturities, available-for-sale | $ 43,484 | $ 47,131 |
Trading securities | 14,919 | 14,170 |
Fair Value, Measurements, Recurring | ||
Investments | ||
Fixed maturities, available-for-sale | 43,484 | 46,941 |
Other equity investments | 47 | 47 |
Trading securities | 14,919 | 14,170 |
Other invested assets | 5,192 | 5,289 |
Cash equivalents | 4,894 | 3,608 |
Segregated securities | 1,025 | 825 |
GMIB reinsurance contract asset | 1,734 | 1,894 |
Separate Accounts’ assets | 121,668 | 124,346 |
Total Assets | 192,963 | 197,120 |
Liabilities | ||
Contingent payment arrangements | 14 | 15 |
Total Liabilities | 6,882 | 6,851 |
Fair Value, Measurements, Recurring | Public Corporate | ||
Investments | ||
Fixed maturities, available-for-sale | 18,716 | 17,954 |
Fair Value, Measurements, Recurring | Private Corporate | ||
Investments | ||
Fixed maturities, available-for-sale | 7,404 | 7,492 |
Fair Value, Measurements, Recurring | U.S. Treasury, government and agency | ||
Investments | ||
Fixed maturities, available-for-sale | 14,653 | 18,508 |
Fair Value, Measurements, Recurring | States and political subdivisions | ||
Investments | ||
Fixed maturities, available-for-sale | 477 | 489 |
Fair Value, Measurements, Recurring | Foreign governments | ||
Investments | ||
Fixed maturities, available-for-sale | 419 | 419 |
Fair Value, Measurements, Recurring | Residential mortgage-backed | ||
Investments | ||
Fixed maturities, available-for-sale | 627 | 818 |
Fair Value, Measurements, Recurring | Asset-backed | ||
Investments | ||
Fixed maturities, available-for-sale | 675 | 749 |
Fair Value, Measurements, Recurring | Redeemable preferred stock | ||
Investments | ||
Fixed maturities, available-for-sale | 513 | 512 |
Fair Value, Measurements, Recurring | Short-term investments | ||
Investments | ||
Other invested assets | 854 | 1,730 |
Fair Value, Measurements, Recurring | Assets of consolidated VIEs/VOEs | ||
Investments | ||
Other invested assets | 2,014 | 1,302 |
Fair Value, Measurements, Recurring | Swaps | ||
Investments | ||
Other invested assets | 356 | 222 |
Fair Value, Measurements, Recurring | Credit Default Swaps | ||
Investments | ||
Other invested assets | 29 | 33 |
Fair Value, Measurements, Recurring | Futures | ||
Investments | ||
Other invested assets | (2) | |
Fair Value, Measurements, Recurring | Foreign currency contract | ||
Investments | ||
Other invested assets | 5 | |
Fair Value, Measurements, Recurring | Options | ||
Investments | ||
Other invested assets | 1,939 | 1,999 |
Fair Value, Measurements, Recurring | GMxB derivative features’ liability | ||
Liabilities | ||
Features' liability | 3,977 | 4,358 |
Fair Value, Measurements, Recurring | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities | ||
Features' liability | 1,683 | 1,786 |
Fair Value, Measurements, Recurring | VIEs/VOEs | ||
Liabilities | ||
Liabilities of consolidated VIEs/VOEs | 1,208 | 692 |
Fair Value, Measurements, Recurring | Level 1 | ||
Investments | ||
Fixed maturities, available-for-sale | 180 | 184 |
Other equity investments | 13 | 13 |
Trading securities | 448 | 485 |
Other invested assets | 1,691 | 1,058 |
Cash equivalents | 4,894 | 3,608 |
Segregated securities | 0 | 0 |
GMIB reinsurance contract asset | 0 | 0 |
Separate Accounts’ assets | 118,466 | 121,000 |
Total Assets | 125,692 | 126,348 |
Liabilities | ||
Contingent payment arrangements | 0 | 0 |
Total Liabilities | 1,190 | 670 |
Fair Value, Measurements, Recurring | Level 1 | Public Corporate | ||
Investments | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Private Corporate | ||
Investments | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury, government and agency | ||
Investments | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | States and political subdivisions | ||
Investments | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign governments | ||
Investments | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed | ||
Investments | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed | ||
Investments | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Redeemable preferred stock | ||
Investments | ||
Fixed maturities, available-for-sale | 180 | 184 |
Fair Value, Measurements, Recurring | Level 1 | Short-term investments | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Assets of consolidated VIEs/VOEs | ||
Investments | ||
Other invested assets | 1,691 | 1,060 |
Fair Value, Measurements, Recurring | Level 1 | Swaps | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Credit Default Swaps | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Futures | ||
Investments | ||
Other invested assets | (2) | |
Fair Value, Measurements, Recurring | Level 1 | Foreign currency contract | ||
Investments | ||
Other invested assets | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Options | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | GMxB derivative features’ liability | ||
Liabilities | ||
Features' liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities | ||
Features' liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | VIEs/VOEs | ||
Liabilities | ||
Liabilities of consolidated VIEs/VOEs | 1,190 | 670 |
Fair Value, Measurements, Recurring | Level 2 | ||
Investments | ||
Fixed maturities, available-for-sale | 41,472 | 45,025 |
Other equity investments | 0 | 0 |
Trading securities | 14,427 | 13,647 |
Other invested assets | 3,469 | 4,204 |
Cash equivalents | 0 | 0 |
Segregated securities | 1,025 | 825 |
GMIB reinsurance contract asset | 0 | 0 |
Separate Accounts’ assets | 2,845 | 2,997 |
Total Assets | 63,238 | 66,698 |
Liabilities | ||
Contingent payment arrangements | 0 | 0 |
Total Liabilities | 1,701 | 1,808 |
Fair Value, Measurements, Recurring | Level 2 | Public Corporate | ||
Investments | ||
Fixed maturities, available-for-sale | 18,581 | 17,906 |
Fair Value, Measurements, Recurring | Level 2 | Private Corporate | ||
Investments | ||
Fixed maturities, available-for-sale | 6,286 | 6,390 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury, government and agency | ||
Investments | ||
Fixed maturities, available-for-sale | 14,653 | 18,508 |
Fair Value, Measurements, Recurring | Level 2 | States and political subdivisions | ||
Investments | ||
Fixed maturities, available-for-sale | 438 | 449 |
Fair Value, Measurements, Recurring | Level 2 | Foreign governments | ||
Investments | ||
Fixed maturities, available-for-sale | 419 | 419 |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed | ||
Investments | ||
Fixed maturities, available-for-sale | 627 | 818 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed | ||
Investments | ||
Fixed maturities, available-for-sale | 135 | 208 |
Fair Value, Measurements, Recurring | Level 2 | Redeemable preferred stock | ||
Investments | ||
Fixed maturities, available-for-sale | 333 | 327 |
Fair Value, Measurements, Recurring | Level 2 | Short-term investments | ||
Investments | ||
Other invested assets | 854 | 1,730 |
Fair Value, Measurements, Recurring | Level 2 | Assets of consolidated VIEs/VOEs | ||
Investments | ||
Other invested assets | 291 | 215 |
Fair Value, Measurements, Recurring | Level 2 | Swaps | ||
Investments | ||
Other invested assets | 356 | 222 |
Fair Value, Measurements, Recurring | Level 2 | Credit Default Swaps | ||
Investments | ||
Other invested assets | 29 | 33 |
Fair Value, Measurements, Recurring | Level 2 | Futures | ||
Investments | ||
Other invested assets | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign currency contract | ||
Investments | ||
Other invested assets | 5 | |
Fair Value, Measurements, Recurring | Level 2 | Options | ||
Investments | ||
Other invested assets | 1,939 | 1,999 |
Fair Value, Measurements, Recurring | Level 2 | GMxB derivative features’ liability | ||
Liabilities | ||
Features' liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities | ||
Features' liability | 1,683 | 1,786 |
Fair Value, Measurements, Recurring | Level 2 | VIEs/VOEs | ||
Liabilities | ||
Liabilities of consolidated VIEs/VOEs | 18 | 22 |
Fair Value, Measurements, Recurring | Level 3 | ||
Investments | ||
Fixed maturities, available-for-sale | 1,832 | 1,732 |
Other equity investments | 34 | 34 |
Trading securities | 44 | 38 |
Other invested assets | 32 | 27 |
Cash equivalents | 0 | 0 |
Segregated securities | 0 | 0 |
GMIB reinsurance contract asset | 1,734 | 1,894 |
Separate Accounts’ assets | 357 | 349 |
Total Assets | 4,033 | 4,074 |
Liabilities | ||
Contingent payment arrangements | 14 | 15 |
Total Liabilities | 3,991 | 4,373 |
Fair Value, Measurements, Recurring | Level 3 | Public Corporate | ||
Investments | ||
Fixed maturities, available-for-sale | 135 | 48 |
Fair Value, Measurements, Recurring | Level 3 | Private Corporate | ||
Investments | ||
Fixed maturities, available-for-sale | 1,118 | 1,102 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury, government and agency | ||
Investments | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | States and political subdivisions | ||
Investments | ||
Fixed maturities, available-for-sale | 39 | 40 |
Fair Value, Measurements, Recurring | Level 3 | Foreign governments | ||
Investments | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed | ||
Investments | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed | ||
Investments | ||
Fixed maturities, available-for-sale | 540 | 541 |
Fair Value, Measurements, Recurring | Level 3 | Redeemable preferred stock | ||
Investments | ||
Fixed maturities, available-for-sale | 0 | 1 |
Fair Value, Measurements, Recurring | Level 3 | Short-term investments | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Assets of consolidated VIEs/VOEs | ||
Investments | ||
Other invested assets | 32 | 27 |
Fair Value, Measurements, Recurring | Level 3 | Swaps | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Credit Default Swaps | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Futures | ||
Investments | ||
Other invested assets | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign currency contract | ||
Investments | ||
Other invested assets | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Options | ||
Investments | ||
Other invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | GMxB derivative features’ liability | ||
Liabilities | ||
Features' liability | 3,977 | 4,358 |
Fair Value, Measurements, Recurring | Level 3 | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities | ||
Features' liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | VIEs/VOEs | ||
Liabilities | ||
Liabilities of consolidated VIEs/VOEs | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Narrat
FAIR VALUE DISCLOSURES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net fair value of freestanding derivative positions as a percent of Other invested assets | 44.80% | 42.90% | |
Other invested assets measured at fair value on a recurring basis | $ 2,324 | $ 2,258 | |
Reduction to fair value of GMIB reinsurance contract asset | 12 | 8 | |
Reduction to fair value of GMIB reinsurance contract liability | 24 | 24 | |
AFS fixed maturities transferred out of Level 3 | 16 | $ 0 | |
AFS fixed maturities transferred out of Level 2 | $ 67 | $ 24 | |
Aggregated transfers as a percent of total equity | 0.50% | 0.20% | |
Investments for which the underlying quantitative inputs are not developed and not readily available | $ 1,087 | $ 948 | |
Level 3 investments as a percent of total assets classified as Level 3 | 47.30% | 44.00% | |
Level 3 investments as a percent of all assets measured at fair value on a recurring basis | 0.60% | 0.50% | |
Fair value of fixed maturities | $ 43,484 | $ 47,131 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments classified as Level 1 (as a percent) | 66.10% | 64.90% | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments classified as Level 1 (as a percent) | 32.70% | 34.00% | |
AAA-rated mortgage- and asset-backed securities are classified as Level 2 | $ 641 | $ 875 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments classified as Level 1 (as a percent) | 1.20% | 1.10% | |
AAA-rated mortgage- and asset-backed securities are classified as Level 2 | $ 540 | $ 598 | |
Fixed maturities with indicative pricing obtained from brokers that otherwise could not be corroborated to market observable data | $ 95 | 97 | |
Contingent Payment Arrangement | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk-adjusted discount factor (as a percent) | 7.00% | ||
Fair value of contingent payment arrangements | $ 3 | ||
VIEs/VOEs | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments of consolidated VIEs/VOEs classified as Level 3 | 32 | 27 | |
Corporate debt securities | Matrix pricing model or a market comparable valuation technique | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets classified as Level 3 | 52 | 53 | |
Corporate debt securities | Private placement securities | Matrix pricing model or a market comparable valuation technique | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets classified as Level 3 | $ 840 | $ 842 | |
Securities as a percent of Level 3 securities in the corporate fixed maturities asset class | 67.00% | 73.20% | |
Separate Accounts Assets | Third party appraisal valuation technique | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk-adjusted discount factor (as a percent) | 6.60% | 6.60% | |
Fair value of assets classified as Level 3 | $ 332 | $ 326 | |
Separate Accounts Assets | Private real estate fund | Third party appraisal valuation technique | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets classified as Level 3 | 332 | 326 | |
Separate Accounts Assets | Mortgage loans | Third party appraisal valuation technique | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets classified as Level 3 | 1 | 1 | |
Separate Accounts Assets | Mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets classified as Level 3 | 15 | 14 | |
Separate Accounts Assets | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets classified as Level 3 | $ 9 | $ 8 | |
Public fixed maturities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities as a percent of total assets measured at fair value on a recurring basis | 18.50% | 20.00% | |
Fair value of fixed maturities | $ 35,131 | $ 38,762 | |
Private fixed maturities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities as a percent of total assets measured at fair value on a recurring basis | 4.40% | 4.20% | |
Fair value of fixed maturities | $ 8,353 | $ 8,179 | |
AB | AB's 2016 acquisition | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Acquisition-related contingent consideration liability | $ 11 | $ 11 | |
Revenue growth rate | 31.00% | 31.00% | |
AB | Minimum | AB's 2016 acquisition | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk-adjusted discount factor (as a percent) | 1.40% | 1.40% | |
AB | Maximum | AB's 2016 acquisition | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk-adjusted discount factor (as a percent) | 2.30% | 2.30% |
FAIR VALUE DISCLOSURES - Fair V
FAIR VALUE DISCLOSURES - Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income (loss) as: | ||
Transfers into level 3 | $ 67 | $ 24 |
Transfers out of Level 3 | (16) | 0 |
Level 3 | Corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 1,150 | 857 |
Income (loss) as: | ||
Net investment income (loss) | 1 | 1 |
Investment gains (losses), net | 0 | 0 |
Subtotal | 1 | 1 |
Other comprehensive income (loss) | (21) | 45 |
Purchases | 189 | 171 |
Sales | (117) | (67) |
Settlements | 0 | |
Transfers into level 3 | 67 | 18 |
Transfers out of Level 3 | (16) | 0 |
Closing Balance | 1,253 | 1,025 |
Level 3 | State and Political Sub- divisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 40 | 42 |
Income (loss) as: | ||
Net investment income (loss) | 0 | 0 |
Investment gains (losses), net | 0 | 0 |
Subtotal | 0 | 0 |
Other comprehensive income (loss) | (1) | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | |
Transfers into level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Closing Balance | 39 | 42 |
Level 3 | Commercial Mortgage- backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 0 | 373 |
Income (loss) as: | ||
Net investment income (loss) | 0 | 0 |
Investment gains (losses), net | 0 | (23) |
Subtotal | 0 | (23) |
Other comprehensive income (loss) | 0 | 25 |
Purchases | 0 | 0 |
Sales | 0 | (35) |
Settlements | 0 | |
Transfers into level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Closing Balance | 0 | 340 |
Level 3 | Asset- backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 541 | 120 |
Income (loss) as: | ||
Net investment income (loss) | 0 | 0 |
Investment gains (losses), net | 0 | 0 |
Subtotal | 0 | 0 |
Other comprehensive income (loss) | 0 | 5 |
Purchases | 0 | 195 |
Sales | (1) | (3) |
Settlements | 0 | |
Transfers into level 3 | 0 | 6 |
Transfers out of Level 3 | 0 | 0 |
Closing Balance | 540 | 323 |
Level 3 | Redeemable Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 1 | 1 |
Income (loss) as: | ||
Net investment income (loss) | 0 | 0 |
Investment gains (losses), net | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Subtotal | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | (1) | 0 |
Settlements | 0 | 0 |
Activity related to consolidated VIEs | 0 | 0 |
Transfers into level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Closing Balance | 0 | 1 |
Level 3 | Other equity investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 99 | 88 |
Income (loss) as: | ||
Net investment income (loss) | 0 | 0 |
Investment gains (losses), net | 0 | (9) |
Net derivative gains (losses) | 0 | 0 |
Subtotal | 0 | (9) |
Other comprehensive income (loss) | 1 | 0 |
Purchases | 4 | 4 |
Sales | 0 | (1) |
Settlements | 0 | |
Activity related to consolidated VIEs | 1 | (9) |
Transfers into level 3 | 5 | 1 |
Transfers out of Level 3 | 0 | |
Closing Balance | 110 | 74 |
Level 3 | GMIB Reinsurance Contract Asset | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 1,894 | 1,735 |
Income (loss) as: | ||
Net investment income (loss) | 0 | 0 |
Investment gains (losses), net | 0 | 0 |
Net derivative gains (losses) | (159) | (71) |
Subtotal | (159) | (71) |
Other comprehensive income (loss) | 0 | 0 |
Purchases | 10 | 9 |
Sales | (11) | (14) |
Settlements | 0 | 0 |
Activity related to consolidated VIEs | 0 | 0 |
Transfers into level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Closing Balance | 1,734 | 1,659 |
Level 3 | Separate Accounts Assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | 349 | 313 |
Income (loss) as: | ||
Net investment income (loss) | 0 | 0 |
Investment gains (losses), net | 7 | 10 |
Net derivative gains (losses) | 0 | |
Subtotal | 7 | 10 |
Other comprehensive income (loss) | 0 | 0 |
Purchases | 3 | 3 |
Sales | (1) | (1) |
Settlements | (1) | (1) |
Activity related to consolidated VIEs | 0 | 0 |
Transfers into level 3 | 0 | 1 |
Transfers out of Level 3 | 0 | 0 |
Closing Balance | 357 | 325 |
Level 3 | GMxB derivative features liability | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | (4,358) | (5,580) |
Income (loss) as: | ||
Net investment income (loss) | 0 | 0 |
Investment gains (losses), net | 0 | 0 |
Net derivative gains (losses) | 460 | 507 |
Subtotal | 460 | 507 |
Other comprehensive income (loss) | 0 | 0 |
Purchases | (84) | (81) |
Sales | 5 | 8 |
Settlements | 0 | 0 |
Activity related to consolidated VIEs | 0 | 0 |
Transfers into level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Closing Balance | (3,977) | (5,146) |
Level 3 | Contingent Payment Arrangement | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Opening Balance | (15) | (25) |
Income (loss) as: | ||
Net investment income (loss) | 0 | 0 |
Investment gains (losses), net | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Subtotal | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 1 | 1 |
Activity related to consolidated VIEs | 0 | 0 |
Transfers into level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Closing Balance | $ (14) | $ (24) |
FAIR VALUE DISCLOSURES - Fair75
FAIR VALUE DISCLOSURES - Fair Value Assets Unrealized Gains Losses By Category For Level 3 Assets And Liabilities Still Held (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | $ 102 | $ (24) |
Level 3 | Corporate | ||
Change in Accounting Estimate [Line Items] | ||
Net Derivative Gains (losses) | 0 | 0 |
OCI | (21) | 45 |
Level 3 | States and political subdivisions | ||
Change in Accounting Estimate [Line Items] | ||
Net Derivative Gains (losses) | 0 | 0 |
OCI | (1) | 0 |
Level 3 | Commercial mortgage-backed | ||
Change in Accounting Estimate [Line Items] | ||
Net Derivative Gains (losses) | 0 | (23) |
OCI | 0 | 25 |
Level 3 | Asset-backed | ||
Change in Accounting Estimate [Line Items] | ||
Net Derivative Gains (losses) | 0 | 0 |
OCI | 0 | 5 |
Level 3 | GMIB reinsurance contract asset | ||
Change in Accounting Estimate [Line Items] | ||
Net Derivative Gains (losses) | 0 | 0 |
OCI | 0 | 0 |
Level 3 | Separate Accounts’ assets | ||
Change in Accounting Estimate [Line Items] | ||
Net Derivative Gains (losses) | 7 | 10 |
OCI | 0 | 0 |
Assets and Liabilities Still Held | Level 3 | Total Debt Maturities Available For Sale | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 7 | 10 |
Net Derivative Gains (losses) | 301 | 436 |
OCI | (20) | 63 |
Assets and Liabilities Still Held | Level 3 | Fixed maturities, available-for-sale: | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 0 | 0 |
Net Derivative Gains (losses) | 0 | 0 |
OCI | (20) | 63 |
Assets and Liabilities Still Held | Level 3 | Corporate | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 0 | 0 |
Net Derivative Gains (losses) | 0 | 0 |
OCI | (19) | 45 |
Assets and Liabilities Still Held | Level 3 | States and political subdivisions | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 0 | |
Net Derivative Gains (losses) | 0 | |
OCI | (1) | |
Assets and Liabilities Still Held | Level 3 | Commercial mortgage-backed | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 0 | |
Net Derivative Gains (losses) | 0 | |
OCI | 13 | |
Assets and Liabilities Still Held | Level 3 | Asset-backed | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 0 | 0 |
Net Derivative Gains (losses) | 0 | 0 |
OCI | 0 | 5 |
Assets and Liabilities Still Held | Level 3 | GMIB reinsurance contract asset | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 0 | 0 |
Net Derivative Gains (losses) | (159) | (71) |
OCI | 0 | 0 |
Assets and Liabilities Still Held | Level 3 | Separate Accounts’ assets | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 7 | 10 |
Net Derivative Gains (losses) | 0 | 0 |
OCI | 0 | 0 |
Assets and Liabilities Still Held | Level 3 | GMxB derivative features’ liability | ||
Change in Accounting Estimate [Line Items] | ||
Investment Gains (Losses), Net | 0 | 0 |
Net Derivative Gains (losses) | 460 | 507 |
OCI | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Fair76
FAIR VALUE DISCLOSURES - Fair Value Inputs Quantitative Information (Details) - Level 3 - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Corporate | Matrix pricing model | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Assets | $ 52 | $ 53 | ||
Corporate | Matrix pricing model | Minimum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Spread over industry yield curve (bps) | 0 | 0 | ||
Corporate | Matrix pricing model | Maximum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Spread over industry yield curve (bps) | 565 | 565 | ||
Corporate | Matrix pricing model | Weighted Average | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Spread over industry yield curve (bps) | 112 | 125 | ||
Corporate | Market comparable companies | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Assets | $ 788 | $ 789 | ||
Corporate | Market comparable companies | Minimum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
EBITDA Multiple (ratio) | 6.2 | 5.3 | ||
Discount rate | 7.20% | 7.20% | ||
Cash flow multiples (ratio) | 9 | 9 | ||
Corporate | Market comparable companies | Maximum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
EBITDA Multiple (ratio) | 30.7 | 27.9 | ||
Discount rate | 17.00% | 17.00% | ||
Cash flow multiples (ratio) | 17.7 | 17.7 | ||
Corporate | Market comparable companies | Weighted Average | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
EBITDA Multiple (ratio) | 13 | 12.9 | ||
Discount rate | 11.30% | 11.10% | ||
Cash flow multiples (ratio) | 13.1 | 13.1 | ||
Other equity investments | Discounted cash flow | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Assets | $ 38 | $ 38 | ||
Discount rate | 10.00% | 10.00% | ||
Discount years | 12 years | 12 years | ||
Earnings Multiple (ratio) | 10.8 | 10.8 | ||
Separate Accounts’ assets | Third party appraisal | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Assets | $ 332 | $ 326 | ||
Discount rate | 6.60% | 6.60% | ||
Capitalization Rate | 4.60% | 4.60% | ||
Exit capitalization Rate | 5.60% | 5.60% | ||
Separate Accounts’ assets | Discounted cash flow | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Assets | $ 1 | $ 1 | ||
Spread over industry yield curve (bps) | 228 | 243 | ||
Discount rate | 4.624% | 4.409% | ||
GMIB reinsurance contract asset | Discounted cash flow | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Assets | $ 1,734 | $ 1,894 | ||
GMIB reinsurance contract asset | Discounted cash flow | Minimum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Lapse Rate | 1.00% | 1.00% | ||
Withdrawal Rate | 0.63% | 0.00% | ||
Utilization Rate | 0.00% | 0.00% | ||
Non-performance risk | 0.0006 | 0.0005 | ||
Volatility rate | 11.00% | 9.90% | ||
GMIB reinsurance contract asset | Discounted cash flow | Maximum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Lapse Rate | 6.27% | 6.30% | ||
Withdrawal Rate | 13.94% | 8.00% | ||
Utilization Rate | 16.00% | 16.00% | ||
Non-performance risk | 0.0014 | 0.0010 | ||
Volatility rate | 30.00% | 30.90% | ||
GMIBNLG | Discounted cash flow | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Liabilities | $ 3,715 | $ 4,056 | ||
Non-performance risk | 0.010 | 0.010 | ||
Volatility rate | 20.00% | 20.00% | ||
GMIBNLG | Discounted cash flow | Minimum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Lapse Rate | 0.80% | 0.80% | ||
Withdrawal Rate | 0.00% | 0.00% | ||
Utilization Rate | 0.00% | |||
Annuitization (as a percent) | 0.00% | |||
NLG Forfeiture Rate | 0.55% | 0.55% | ||
GMIBNLG | Discounted cash flow | Maximum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Lapse Rate | 26.20% | 26.20% | ||
Withdrawal Rate | 12.40% | 12.40% | ||
Utilization Rate | 16.00% | |||
Annuitization (as a percent) | 16.00% | |||
NLG Forfeiture Rate | 2.10% | 2.10% | ||
Assumed GMIB Reinsurance Contracts | Discounted cash flow | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Liabilities | $ 173 | $ 194 | ||
Non-performance risk | 0.0147 | 0.013 | ||
Assumed GMIB Reinsurance Contracts | Discounted cash flow | Minimum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Lapse Rate | 1.10% | 1.10% | ||
Withdrawal Rate (Age 0-85) | 0.70% | 0.70% | ||
Withdrawal Rate (Age 86 and above) | 1.30% | 1.30% | ||
Utilization Rate | 0.00% | 0.00% | ||
Volatility rate | 11.00% | 9.90% | ||
Assumed GMIB Reinsurance Contracts | Discounted cash flow | Maximum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Lapse Rate | 13.30% | 13.30% | ||
Withdrawal Rate (Age 0-85) | 22.20% | 22.20% | ||
Withdrawal Rate (Age 86 and above) | 100.00% | 100.00% | ||
Utilization Rate | 30.00% | 30.00% | ||
Volatility rate | 30.00% | 30.90% | ||
GWBL/GMWB | Discounted cash flow | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Liabilities | $ 121 | $ 130 | ||
Utilization Rate | 100.00% | 100.00% | ||
GWBL/GMWB | Discounted cash flow | Minimum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Lapse Rate | 0.50% | 0.90% | ||
Withdrawal Rate | 0.00% | 0.00% | ||
Volatility rate | 11.00% | 9.90% | ||
GWBL/GMWB | Discounted cash flow | Maximum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Lapse Rate | 5.70% | 5.70% | ||
Withdrawal Rate | 7.00% | 7.00% | ||
Volatility rate | 30.00% | 30.90% | ||
GIB | Discounted cash flow | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Liabilities | $ (36) | $ (27) | ||
GIB | Discounted cash flow | Minimum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Lapse Rate | 0.50% | 0.90% | ||
Withdrawal Rate | 0.00% | 0.00% | ||
Utilization Rate | 0.00% | 0.00% | ||
Volatility rate | 11.00% | 9.90% | ||
GIB | Discounted cash flow | Maximum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Lapse Rate | 5.70% | 5.70% | ||
Withdrawal Rate | 8.00% | 7.00% | ||
Utilization Rate | 16.00% | 16.00% | ||
Volatility rate | 30.00% | 30.90% | ||
GMAB | Discounted cash flow | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Liabilities | $ 4 | $ 5 | ||
GMAB | Discounted cash flow | Minimum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Lapse Rate | 0.50% | 0.50% | ||
Volatility rate | 11.00% | 9.90% | ||
GMAB | Discounted cash flow | Maximum | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Lapse Rate | 11.00% | 11.00% | ||
Volatility rate | 30.00% | 30.90% | ||
Corporate | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Assets | $ 1,253 | $ 1,150 | $ 1,025 | $ 857 |
Other equity investments | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Assets | 110 | 99 | 74 | 88 |
Separate Accounts’ assets | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Assets | 357 | 349 | 325 | 313 |
GMIB reinsurance contract asset | ||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||||
Assets | $ 1,734 | $ 1,894 | $ 1,659 | $ 1,735 |
FAIR VALUE DISCLOSURES - Fair77
FAIR VALUE DISCLOSURES - Fair Value Disclosure Financial Instruments Not Carried At Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | $ 11,333 | $ 10,952 |
Loans to affiliates | 885 | 1,230 |
Policyholders’ liabilities: Investment contracts | 47,666 | 47,171 |
Loans from affiliates | 2,530 | 3,622 |
Policy loans | 3,776 | 3,819 |
Separate Account Liabilities | 121,858 | 124,552 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 11,333 | 10,952 |
Loans to affiliates | 885 | 1,230 |
Policyholders’ liabilities: Investment contracts | 2,222 | 2,224 |
FHLBNY Funding Agreements | 3,014 | 3,014 |
Short term and long-term debt | 2,373 | 2,408 |
Loans from affiliates | 2,530 | 3,622 |
Policy loans | 3,776 | 3,819 |
Separate Account Liabilities | 7,647 | 7,537 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 11,128 | 10,912 |
Loans to affiliates | 885 | 1,230 |
Policyholders’ liabilities: Investment contracts | 2,283 | 2,329 |
FHLBNY Funding Agreements | 2,962 | 3,020 |
Short term and long-term debt | 2,449 | 2,500 |
Loans from affiliates | 2,530 | 3,622 |
Policy loans | 4,330 | 4,754 |
Separate Account Liabilities | 7,647 | 7,537 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Loans to affiliates | 0 | 0 |
Policyholders’ liabilities: Investment contracts | 0 | 0 |
FHLBNY Funding Agreements | 0 | 0 |
Short term and long-term debt | 0 | 0 |
Loans from affiliates | 0 | 0 |
Policy loans | 0 | 0 |
Separate Account Liabilities | 0 | 0 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 0 | 0 |
Loans to affiliates | 885 | 1,230 |
Policyholders’ liabilities: Investment contracts | 0 | 0 |
FHLBNY Funding Agreements | 2,962 | 3,020 |
Short term and long-term debt | 2,449 | 2,500 |
Loans from affiliates | 2,530 | 3,622 |
Policy loans | 0 | 0 |
Separate Account Liabilities | 0 | 0 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans on real estate | 11,128 | 10,912 |
Loans to affiliates | 0 | 0 |
Policyholders’ liabilities: Investment contracts | 2,283 | 2,329 |
FHLBNY Funding Agreements | 0 | 0 |
Short term and long-term debt | 0 | 0 |
Loans from affiliates | 0 | 0 |
Policy loans | 4,330 | 4,754 |
Separate Account Liabilities | $ 7,647 | $ 7,537 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Total investment management and service fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 1,050 | $ 950 |
Investment management, advisory and service fees: Base fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 724 | 643 |
Investment management, advisory and service fees: Performance-based fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6 | 6 |
Research services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 114 | 113 |
Distribution services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 180 | 166 |
Other revenues: Shareholder services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 20 | 18 |
Other revenues: Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6 | 4 |
Other income | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 112 | $ 101 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - Qualified plan | Mar. 13, 2018USD ($)contract | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) |
Defined contribution plan | AXA Equitable 401(k) Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses recognized | $ 9,000,000 | $ 7,000,000 | |
Pension plan | MONY Life Retirement Income Security Plan for Employees and the AXA Equitable QP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of single premium, non-participating group annuity contracts purchased | contract | 2 | ||
Plans' obligations to retirees transferred | $ 254,000,000 | ||
Plans' obligations to retirees transferred (as a percent) | 10.00% | ||
Pre-tax settlement loss | $ 100,000,000 | ||
AB | Pension plan | Profit Sharing Plan for Employees of AB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash contribution | 5,000,000 | ||
Minimum contribution required to be made in 2018 | $ 0 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of certain benefit costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net Periodic Pension Expense | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2 | $ 3 |
Interest cost | 25 | 26 |
Expected return on assets | (45) | (43) |
Net amortization | 29 | 32 |
Partial settlement | 100 | 0 |
Total | 111 | 18 |
Net Postretirement Benefits Costs | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 4 | 4 |
Net amortization | 2 | 2 |
Total | 6 | 6 |
Net Postemployment Benefits Costs | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 0 | 0 |
Net amortization | 0 | 0 |
Total | $ 1 | $ 1 |
SHARE-BASED COMPENSATION PROG81
SHARE-BASED COMPENSATION PROGRAMS - Schedule of Compensation Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation costs | $ 11,749 | $ 13,715 |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation costs | 55 | 5,710 |
Stock Options (Other than AB stock options) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation costs | 114 | 19 |
Restricted Awards | AB | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation costs | 12,484 | 7,693 |
Other compensation plans | Parent Company | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation costs | $ (904) | $ 293 |
SHARE-BASED COMPENSATION PROG82
SHARE-BASED COMPENSATION PROGRAMS - Narrative (Details) - USD ($) shares in Millions, $ in Millions | Apr. 06, 2018 | Mar. 26, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Repurchase of AB Holding units | $ 1 | $ 31 | ||
AB | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Purchased AB Holding Units to help fund anticipated obligations under its incentive compensation award program shares (in shares) | 0.1 | 1.3 | ||
Repurchase of AB Holding units | $ 2 | $ 31 | ||
Open market purchase (in shares) | 1.2 | |||
Open market purchase | $ 28 | |||
Restricted holding unit awards granted to employees (in shares) | 0.2 | 0.3 | ||
Restricted holding unit awards granted to employees | $ 4 | $ 5 | ||
AB | Employees and eligible Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted holding unit awards granted to employees (in shares) | 1.1 | 1.1 | ||
AXA Performance Share Plan 2014 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share distributions | $ 21 | |||
Share distributions (in shares) | 0.8 | |||
AXA Performance Share Plan 2014 | Subsequent Event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share distributions | $ 6 | |||
Share distributions (in shares) | 0.2 |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Impairment of non-deductible goodwill | $ 129 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2018USD ($)joint_venture | Jan. 31, 2018USD ($) | Oct. 31, 2017 | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Oct. 31, 2012USD ($) | Mar. 31, 2011 | Dec. 31, 2008USD ($) | Sep. 30, 2007USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Oct. 31, 2012EUR (€) | |
Related Party Transaction [Line Items] | ||||||||||||||
Loans from affiliates | $ 2,530 | $ 2,530 | $ 3,622 | $ 3,622 | ||||||||||
Repayment of loans from affiliates | 0 | $ 56 | ||||||||||||
Balance paid in cash | $ 8 | $ 0 | ||||||||||||
Number of real estate joint ventures sold | joint_venture | 2 | |||||||||||||
Proceeds from sales of business, affiliate and productive assets | $ 143 | |||||||||||||
Gain (loss) on disposition of joint venture | (0.2) | |||||||||||||
Reduction in long term debt due to sale of joint venture | $ 203 | |||||||||||||
AXA Financial | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Consolidation, less than wholly owned subsidiary, parent ownership interest after additional interest issued | 100.00% | 100.00% | ||||||||||||
Consolidation, less than wholly owned subsidiary, additional interest issued to parent (as a percent) | 0.50% | 0.50% | ||||||||||||
Capital contribution | $ 66 | |||||||||||||
AXA Holdings | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Related party transaction mortgage note payable, interest rate (as a percent) | 1.39% | |||||||||||||
Repayment of loans from affiliates | $ 56 | |||||||||||||
Consolidation, less than wholly owned subsidiary, parent ownership interest after additional interest issued | 78.99% | 78.99% | ||||||||||||
Note Maturity October 2017 | AXA Financial | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Loans from affiliates | $ 391 | € 300 | ||||||||||||
Loan Received In 2017, One | AXA Holdings | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Loans from affiliates | 100 | $ 100 | ||||||||||||
Related party transaction mortgage note payable, interest rate (as a percent) | 1.86% | |||||||||||||
Loan Received In 2017, Two | AXA Holdings | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Loans from affiliates | 10 | $ 10 | ||||||||||||
Related party transaction mortgage note payable, interest rate (as a percent) | 1.76% | |||||||||||||
Note Maturity June 2018 | AXA Holdings | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Loans from affiliates | $ 630 | $ 630 | $ 622 | $ 622 | ||||||||||
Note Maturity September 2012 | AXA Holdings | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Loans from affiliates | $ 700 | |||||||||||||
Related party transaction mortgage note payable, interest rate (as a percent) | 5.40% | |||||||||||||
Repayment of loans from affiliates | $ 50 | |||||||||||||
Note Maturity December 2020, One | AXA Holdings | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Loans from affiliates | $ 700 | |||||||||||||
Related party transaction mortgage note payable, interest rate (as a percent) | 5.70% | |||||||||||||
Note Maturity December 2020, Two | AXA Holdings | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Loans from affiliates | $ 500 | |||||||||||||
Related party transaction mortgage note payable, interest rate (as a percent) | 5.40% | |||||||||||||
Repayment of loans from affiliates | $ 150 | $ 300 | ||||||||||||
Note Maturity December 2028 | AXA Holdings | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Loans from affiliates | $ 145 | |||||||||||||
Related party transaction mortgage note payable, interest rate (as a percent) | 4.75% | |||||||||||||
London Interbank Offered Rate (LIBOR) | Note Maturity October 2017 | AXA Financial | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Related party transaction mortgage note payable, interest rate (as a percent) | 1.15% | |||||||||||||
London Interbank Offered Rate (LIBOR) | Note Maturity October 2017 | Interest Rate Swap | AXA Financial | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Related party transaction mortgage note payable, interest rate (as a percent) | 1.475% | |||||||||||||
London Interbank Offered Rate (LIBOR) | Note Maturity March 2018 | AXA Financial | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Related party transaction mortgage note payable, interest rate (as a percent) | 0.06% | |||||||||||||
London Interbank Offered Rate (LIBOR) | Note Maturity March 2018 | Minimum | AXA Financial | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Related party transaction mortgage note payable, interest rate (as a percent) | 0.00% | |||||||||||||
London Interbank Offered Rate (LIBOR) | Note Maturity June 2018 | AXA Holdings | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Related party transaction mortgage note payable, interest rate (as a percent) | 0.439% |
ACCUMULATED OTHER COMPREHENSI85
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Cumulative Gains (Losses) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income | $ 16,600 | $ 16,582 | $ 14,411 | |
Total accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income | (992) | (855) | ||
Unrealized gains (losses) on investments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income | (130) | 244 | ||
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income | (40) | (69) | ||
Defined benefit pension plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income | (822) | (1,030) | ||
Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income | 46 | 64 | ||
Other comprehensive income (loss) attributable to Holdings | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income | $ (946) | $ (108) | $ (791) | $ (921) |
ACCUMULATED OTHER COMPREHENSI86
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of OCI, Net of Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net unrealized gains (losses) arising during the period | ||
Change in unrealized gains (losses), net of reclassification adjustment | $ (960) | $ 104 |
Total other comprehensive income (loss), net of income taxes | (832) | 137 |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Other comprehensive income (loss), before reclassifications, net of tax | (5) | 8 |
Reclassification from accumulated other comprehensive income, current period, net of tax | 0 | 0 |
Net unrealized gains (losses) arising during the period | ||
Total other comprehensive income (loss), net of income taxes | (5) | 8 |
Unrealized gains (losses) on investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Other comprehensive income (loss), before reclassifications, net of tax | (86) | 155 |
Reclassification from accumulated other comprehensive income, current period, net of tax | (1,223) | (23) |
Net unrealized gains (losses) arising during the period | ||
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | 349 | (28) |
Change in unrealized gains (losses), net of reclassification adjustment | (960) | 104 |
Total other comprehensive income (loss), net of income taxes | (1,309) | 132 |
Reclassification from AOCI, current period, tax | (325) | (13) |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | ||
Other comprehensive income (loss), tax | (255) | 56 |
Amortization of net prior service cost included in net periodic cost | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification from accumulated other comprehensive income, current period, net of tax | 133 | 25 |
Defined benefit pension plans | ||
Net unrealized gains (losses) arising during the period | ||
Total other comprehensive income (loss), net of income taxes | 133 | 25 |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | ||
Other comprehensive income (loss), tax | 35 | 12 |
Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest | ||
Net unrealized gains (losses) arising during the period | ||
Total other comprehensive income (loss), net of income taxes | (6) | (7) |
Other comprehensive income (loss) attributable to Holdings | ||
Net unrealized gains (losses) arising during the period | ||
Total other comprehensive income (loss), net of income taxes | $ (838) | $ 130 |
COMMITMENT AND CONTINGENT LIA87
COMMITMENT AND CONTINGENT LIABILITIES - Narrative (Details) | 1 Months Ended | 3 Months Ended | 19 Months Ended | |
Feb. 28, 2018USD ($) | Feb. 29, 2016USD ($) | Mar. 31, 2018USD ($)legal_actionplaintiff | Jan. 31, 2013fund | |
Loss Contingencies [Line Items] | ||||
Unaccrued amounts of reasonably possible range of losses | $ 90,000,000 | |||
Number of individual actions challenging costs of insurance rate increases | legal_action | 7 | |||
Number of individual actions challenging cost of insurance rate increases transferred to federal court | legal_action | 4 | |||
Letters of credit outstanding | $ 4,489,000,000 | |||
Long-term line of credit | 0 | |||
Equity financing arrangements with limited partnerships | 812,000,000 | |||
Equity financing arrangements with affiliates | 262,000,000 | |||
Mortgage loans on real estate | 712,000,000 | |||
Letter of Credit | ||||
Loss Contingencies [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,900,000,000 | |||
AXA Arizona | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit outstanding | 4,260,000,000 | |||
Revolving Credit Facility | Line of Credit | ||||
Loss Contingencies [Line Items] | ||||
Debt instrument, term | 5 years | |||
Line of credit facility, maximum borrowing capacity | $ 2,500,000,000 | 1,500,000,000 | ||
Two Year Term Loan | Unsecured Debt | ||||
Loss Contingencies [Line Items] | ||||
Debt instrument, face amount | $ 3,900,000,000 | |||
Debt instrument, term | 2 years | |||
Three Year Term Loan | ||||
Loss Contingencies [Line Items] | ||||
Debt instrument, term | 3 years | |||
Three Year Term Loan | Unsecured Debt | ||||
Loss Contingencies [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | ||
Debt instrument, term | 3 years | |||
Sivolella Litigation | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, number of funds involved in lawsuit | fund | 12 | |||
Loss contingency, number of days in trial | 25 days | |||
Brach Family Foundation Litigation | ||||
Loss Contingencies [Line Items] | ||||
Liability for future policy benefits, issue age | 70 years | |||
Liability for future policy benefits, amount per policy | $ 1,000,000 | |||
Loss contingency, number of plaintiffs | plaintiff | 2 |
COMMITMENT AND CONTINGENT LIA88
COMMITMENT AND CONTINGENT LIABILITIES - Restructuring (Details) - AXA - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of year | $ 23 | $ 22 |
Additions | 7 | 17 |
Cash payments | (3) | (14) |
Other reductions | 0 | (2) |
Balance, end of Year | 27 | 23 |
Leases | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of year | 165 | 170 |
Additions | 0 | 29 |
Deferred rent | 2 | 10 |
Cash payments | (11) | (48) |
Interest accretion | 1 | 4 |
Balance, end of Year | $ 157 | $ 165 |
COMMITMENT AND CONTINGENT LIA89
COMMITMENT AND CONTINGENT LIABILITIES - Obligation Under Funding Agreements (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Outstanding balance at end of period | $ 3,000 | $ 3,000 |
Issued during the period | 1,500 | 6,762 |
Repaid during the period | 1,500 | 6,000 |
FHLBNY Short-Term Funding Agreements Maturing in Less than One Month | ||
Loss Contingencies [Line Items] | ||
Outstanding balance at end of period | 500 | 500 |
Issued during the period | 1,500 | 6,000 |
Repaid during the period | 1,500 | 6,000 |
FHLBNY Long-Term Funding Agreements Maturing in Less than Four Years | ||
Loss Contingencies [Line Items] | ||
Outstanding balance at end of period | 1,417 | 1,244 |
Issued during the period | 0 | 324 |
Repaid during the period | 0 | 0 |
FHLBNY Long-Term Funding Agreements Maturing in Less than Five Years | ||
Loss Contingencies [Line Items] | ||
Outstanding balance at end of period | 204 | 377 |
Issued during the period | 0 | 303 |
Repaid during the period | 0 | 0 |
FHLBNY Long-Term Funding Agreements Maturing in Greater than Five Years | ||
Loss Contingencies [Line Items] | ||
Outstanding balance at end of period | 879 | 879 |
Issued during the period | 0 | 135 |
Repaid during the period | 0 | 0 |
FHLBNY Long-Term Funding Agreements | ||
Loss Contingencies [Line Items] | ||
Outstanding balance at end of period | 2,500 | 2,500 |
Issued during the period | 0 | 762 |
Repaid during the period | $ 0 | $ 0 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)segmentclient_channel | Mar. 31, 2017USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 4 | |
Number of main client channels | client_channel | 3 | |
Segment Reporting Information [Line Items] | ||
Net income (loss) | $ 168 | $ (290) |
Adjustments related to: | ||
Goodwill impairment | 0 | 369 |
Non-GAAP Operating Earnings | 464 | 304 |
Interest expense | 46 | 35 |
Adjustments | ||
Adjustments related to: | ||
Variable annuity product features | 212 | 291 |
Investment (gains) losses | (102) | 24 |
Goodwill impairment | 0 | 369 |
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 131 | 34 |
Other adjustments | 90 | (21) |
Income tax expense (benefit) related to above adjustments | (63) | (235) |
Non-recurring tax items | 28 | 132 |
Operating Segments | Individual Retirement | ||
Adjustments related to: | ||
Non-GAAP Operating Earnings | 360 | 202 |
Operating Segments | Group Retirement | ||
Adjustments related to: | ||
Non-GAAP Operating Earnings | 76 | 59 |
Operating Segments | Investment Management and Research | ||
Adjustments related to: | ||
Non-GAAP Operating Earnings | 81 | 32 |
Operating Segments | Protection Solutions | ||
Adjustments related to: | ||
Non-GAAP Operating Earnings | 23 | 39 |
Corporate and Other | ||
Adjustments related to: | ||
Non-GAAP Operating Earnings | (76) | (28) |
Interest expense | $ 44 | $ 31 |
BUSINESS SEGMENT INFORMATION 91
BUSINESS SEGMENT INFORMATION - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||||
Total revenues | $ 2,835 | $ 2,830 | $ 6,712 | $ 9,485 | $ 12,401 | $ 11,801 |
Adjustments related to: | ||||||
Investment expenses | 19 | |||||
Operating Segments | Individual Retirement | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 729 | 1,019 | ||||
Operating Segments | Group Retirement | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 238 | 227 | ||||
Operating Segments | Investment Management and Research | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 909 | 743 | ||||
Operating Segments | Protection Solutions | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 809 | 789 | ||||
Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 288 | 340 | ||||
Adjustments | ||||||
Adjustments related to: | ||||||
Variable annuity product features | (197) | (287) | ||||
Investment gains (losses) | 102 | (24) | ||||
Other adjustments to segment revenues | (43) | 23 | ||||
Intersegment Eliminations | ||||||
Adjustments related to: | ||||||
Investment expenses | 18 | 17 | ||||
Investment management and other fees | $ 25 | $ 24 |
BUSINESS SEGMENT INFORMATION 92
BUSINESS SEGMENT INFORMATION - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 232,294 | $ 235,648 |
Operating Segments | Individual Retirement | ||
Segment Reporting Information [Line Items] | ||
Total assets | 103,786 | 121,723 |
Operating Segments | Group Retirement | ||
Segment Reporting Information [Line Items] | ||
Total assets | 43,615 | 38,578 |
Operating Segments | Investment Management and Research | ||
Segment Reporting Information [Line Items] | ||
Total assets | 11,809 | 8,297 |
Operating Segments | Protection Solutions | ||
Segment Reporting Information [Line Items] | ||
Total assets | 51,457 | 43,116 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 21,627 | $ 23,934 |
EARNINGS PER SHARE - Weighted A
EARNINGS PER SHARE - Weighted Average Shares (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Weighted Average Shares: | ||
Weighted average common shares outstanding (in shares) | 561 | 561 |
EARNINGS PER SHARE - Reconcilia
EARNINGS PER SHARE - Reconciliation of Numerator (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income (loss) attributable to Holdings common shareholders: | ||
Net income (loss) attributable to Holdings common shareholders (basic) | $ 168 | $ (290) |
Less: Incremental dilution from AB | 0 | 1 |
Net income (loss) attributable to Holdings common shareholders (diluted) | $ 168 | $ (291) |
EARNINGS PER SHARE - Basic and
EARNINGS PER SHARE - Basic and Diluted Earnings Per Share (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income (loss) attributable to Holdings per common share: | ||
Basic (in dollars per share) | $ 0.30 | $ (0.52) |
Diluted (in dollars per share) | $ 0.30 | $ (0.52) |
REVISION OF PRIOR PERIOD FINA96
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Consolidated Statement of Income (Loss) Affected by Revisions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | ||||||
Net derivative investment gains (loss) | $ (281) | $ (235) | $ 494 | $ 128 | $ 115 | $ (1,843) |
Total revenues | 2,835 | 2,830 | 6,712 | 9,485 | 12,401 | 11,801 |
Benefits and other deductions: | ||||||
Interest credited to policyholders’ account balances | 271 | 246 | 488 | 743 | 995 | 970 |
Total benefits and other deductions | $ 2,465 | $ 2,997 | 6,265 | 9,026 | 11,087 | 9,747 |
As Previously Reported | ||||||
Revenues: | ||||||
Net derivative investment gains (loss) | 528 | 172 | 228 | (1,722) | ||
Total revenues | 6,746 | 9,529 | 12,514 | 11,922 | ||
Benefits and other deductions: | ||||||
Interest credited to policyholders’ account balances | 522 | 787 | 1,108 | 1,091 | ||
Total benefits and other deductions | 6,299 | 9,070 | 11,200 | 9,868 | ||
Impact of Revisions | ||||||
Revenues: | ||||||
Net derivative investment gains (loss) | (34) | (44) | (113) | (121) | ||
Total revenues | (34) | (44) | (113) | (121) | ||
Benefits and other deductions: | ||||||
Interest credited to policyholders’ account balances | (34) | (44) | (113) | (121) | ||
Total benefits and other deductions | $ (34) | $ (44) | $ (113) | $ (121) |
REVISION OF PRIOR PERIOD FINA97
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Consolidated Statement of Cash Flows Affected By Revisions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flow from operating activities: | ||||||
Interest credited to policyholders’ account balances | $ 271 | $ 246 | $ 488 | $ 743 | $ 995 | $ 970 |
Net derivative (gains) losses | 281 | 235 | (494) | (128) | (115) | 1,843 |
Net cash provided by (used in) operating activities | $ (264) | $ 72 | 666 | 1,044 | 1,021 | (236) |
As Previously Reported | ||||||
Cash flow from operating activities: | ||||||
Interest credited to policyholders’ account balances | 522 | 787 | 1,108 | 1,091 | ||
Net derivative (gains) losses | (528) | (172) | (228) | 1,722 | ||
Net cash provided by (used in) operating activities | 666 | 1,044 | 1,021 | (236) | ||
Impact of Revisions | ||||||
Cash flow from operating activities: | ||||||
Interest credited to policyholders’ account balances | (34) | (44) | (113) | (121) | ||
Net derivative (gains) losses | 34 | 44 | 113 | 121 | ||
Net cash provided by (used in) operating activities | $ 0 | $ 0 | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | May 15, 2018 | May 14, 2018shares | May 04, 2018USD ($) | May 02, 2018job | Apr. 24, 2018 | Apr. 23, 2018USD ($) | Apr. 20, 2018USD ($) | Feb. 28, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | May 09, 2018$ / sharesshares |
Subsequent Event [Line Items] | |||||||||||
Payment of principal | $ 0 | $ 56,000,000 | |||||||||
Note | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt instrument, face amount | 700,000,000 | ||||||||||
Term loan | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt instrument, face amount | 500,000,000 | ||||||||||
Two Year Term Loan | Unsecured Debt | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt instrument, face amount | $ 3,900,000,000 | ||||||||||
Debt instrument, term | 2 years | ||||||||||
Three Year Term Loan | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt instrument, term | 3 years | ||||||||||
Three Year Term Loan | Unsecured Debt | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | |||||||||
Debt instrument, term | 3 years | ||||||||||
Revolving Credit Facility | Line of Credit | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 2,500,000,000 | $ 1,500,000,000 | |||||||||
Debt instrument, term | 5 years | ||||||||||
Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Payment of principal | $ 2,530,000,000 | ||||||||||
Payment of accrued interest | 11,000,000 | ||||||||||
Stock split ratio | 459.4752645 | ||||||||||
Preferred stock authorized (in shares) | shares | 200,000,000 | ||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 1 | ||||||||||
Subsequent Event | IPO | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Percent of shares purchased | 71.90% | ||||||||||
Shares issued in initial public offering (in shares) | shares | 157,837,500 | ||||||||||
Shares owned following the initial public offering | shares | 423,750,000 | ||||||||||
Subsequent Event | Note | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Repayments of debt | 650,000,000 | ||||||||||
Subsequent Event | Term loan | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Repayments of debt | 50,000,000 | ||||||||||
Subsequent Event | Senior Notes due 2023 | Senior Notes | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt instrument, face amount | $ 800,000,000 | ||||||||||
Debt instrument, stated percentage | 3.90% | ||||||||||
Subsequent Event | Senior Notes due 2028 | Senior Notes | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt instrument, face amount | $ 1,500,000,000 | ||||||||||
Debt instrument, stated percentage | 4.35% | ||||||||||
Subsequent Event | Senior Notes due 2048 | Senior Notes | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt instrument, face amount | $ 1,500,000,000 | ||||||||||
Debt instrument, stated percentage | 5.00% | ||||||||||
Subsequent Event | Three Year Term Loan | Unsecured Debt | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Proceeds from unsecured debt | $ 300,000,000 | ||||||||||
Subsequent Event | AXA-IM Holding U.S., Inc. | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Percent of shares purchased | 100.00% | ||||||||||
Loan settled as part of purchase | $ 185,000,000 | ||||||||||
Subsequent Event | AB | Employee relocation | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Jobs relocated from New York to Nashville, TN | job | 1,050 |