COVER
COVER - shares | 3 Months Ended | |
Mar. 31, 2021 | May 04, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38469 | |
Entity Registrant Name | Equitable Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-0226248 | |
Entity Address, Address Line One | 1290 Avenue of the Americas | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10104 | |
City Area Code | 212 | |
Local Phone Number | 554-1234 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 428,272,746 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Amendment Flag | false | |
Entity Central Index Key | 0001333986 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | New York Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | EQH | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series A | New York Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series A | |
Trading Symbol | EQH PR A | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C | New York Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C | |
Trading Symbol | EQH PR C | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Investments: | |||
Fixed maturities available-for-sale, at fair value (amortized cost of $73,734 and $72,867) (allowance for credit losses of $0 at March 31, 2021) | $ 77,161 | $ 81,638 | |
Fixed maturities, at fair value using the fair value option | [1] | 844 | 389 |
Mortgage loans on real estate (net of allowance for credit losses of $74 at March 31, 2021) | 13,280 | 13,159 | |
Policy loans | 4,091 | 4,118 | |
Other equity investments | [1] | 2,387 | 1,502 |
Trading securities, at fair value | 4,821 | 5,553 | |
Other invested assets | [1] | 2,913 | 2,728 |
Total investments | 105,497 | 109,087 | |
Cash and cash equivalents | [1] | 6,795 | 6,179 |
Cash and securities segregated, at fair value | 1,413 | 1,753 | |
Broker-dealer related receivables | 2,361 | 2,223 | |
Deferred policy acquisition costs | 4,943 | 4,243 | |
Goodwill and other intangible assets, net | 4,744 | 4,737 | |
Amounts due from reinsurers (allowance for credit losses of $5 and $5) | 4,526 | 4,566 | |
GMIB reinsurance contract asset, at fair value | 1,907 | 2,488 | |
Current and deferred income taxes | 509 | 0 | |
Other assets | [1] | 3,859 | 3,701 |
Assets held-for-sale | 483 | 470 | |
Separate Accounts assets | 139,795 | 135,950 | |
Total Assets | 276,832 | 275,397 | |
LIABILITIES | |||
Policyholders’ account balances | 73,303 | 66,820 | |
Future policy benefits and other policyholders' liabilities | 35,922 | 39,881 | |
Broker-dealer related payables | 2,283 | 1,443 | |
Customer related payables | 3,179 | 3,417 | |
Amounts due to reinsurers | 1,340 | 1,381 | |
Short-term and long-term debt | 4,022 | 4,115 | |
Current and deferred income taxes | 0 | 749 | |
Notes issued by consolidated variable interest entities, at fair value using the fair value option | [1] | 323 | 313 |
Other liabilities | [1] | 3,990 | 3,686 |
Liabilities held-for-sale | 270 | 322 | |
Separate Accounts liabilities | 139,795 | 135,950 | |
Total Liabilities | 264,427 | 258,077 | |
Redeemable noncontrolling interest | [1],[2] | 137 | 143 |
Commitments and contingent liabilities (Note 12) | |||
Equity attributable to Holdings: | |||
Preferred stock and additional paid-in capital, $1 par value and $25,000 liquidation preference | 1,562 | 1,269 | |
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 541,662,121 and 552,896,328 shares issued, respectively; 428,451,410 and 440,776,011 shares outstanding, respectively | 5 | 5 | |
Additional paid-in capital | 1,928 | 1,985 | |
Treasury stock, at cost, 113,210,711 and 112,120,317 shares, respectively | (2,300) | (2,245) | |
Retained earnings | 8,758 | 10,699 | |
Accumulated other comprehensive income (loss) | 740 | 3,863 | |
Total equity attributable to Holdings | 10,693 | 15,576 | |
Noncontrolling interest | 1,575 | 1,601 | |
Total Equity | 12,268 | 17,177 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 276,832 | $ 275,397 | |
[1] | See Note 2 for details of balances with VIEs. | ||
[2] | See Note 11 for details of redeemable noncontrolling interest. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Fixed maturities available-for-sale, amortized cost | $ 73,715,000,000 | |
Fixed maturities available-for-sale, allowance for credit losses | (19,000,000) | $ (13,000,000) |
Mortgage loans on real estate, allowance for credit losses | 74,000,000 | 81,000,000 |
Reinsurance recoverable, allowance for credit loss | $ 5,000,000 | $ 5,000,000 |
Preferred stock par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 |
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) | 541,662,121 | 552,896,328 |
Common stock outstanding (in shares) | 428,451,410 | 440,776,011 |
Treasury stock (in shares) | 113,210,711 | 112,120,317 |
Fixed maturities | ||
Fixed maturities available-for-sale, amortized cost | $ 73,734,000,000 | $ 72,867,000,000 |
Fixed maturities available-for-sale, allowance for credit losses | $ 19,000,000 | $ 13,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
REVENUES | ||
Policy charges and fee income | $ 949 | $ 996 |
Premiums | 258 | 289 |
Net derivative gains (losses) | (2,546) | 9,400 |
Net investment income (loss) | 884 | 629 |
Investment gains (losses), net: | ||
Credit losses on Available for Sale debt securities and loans | 1 | (12) |
Other investment gains (losses), net | 183 | 16 |
Total investment gains (losses), net | 184 | 4 |
Investment management and service fees | 1,257 | 1,136 |
Other income | 167 | 155 |
Total revenues | 1,153 | 12,609 |
BENEFITS AND OTHER DEDUCTIONS | ||
Policyholders’ benefits | 939 | 2,776 |
Interest credited to policyholders’ account balances | 291 | 317 |
Compensation and benefits | 580 | 526 |
Commissions and distribution-related payments | 382 | 338 |
Interest expense | 74 | 52 |
Amortization of deferred policy acquisition costs | 87 | 1,303 |
Other operating costs and expenses | 608 | 438 |
Total benefits and other deductions | 2,961 | 5,750 |
Income (loss) from continuing operations, before income taxes | (1,808) | 6,859 |
Income tax (expense) benefit | 408 | (1,434) |
Net income (loss) | (1,400) | 5,425 |
Less: Net income (loss) attributable to the noncontrolling interest | 88 | 37 |
Net income (loss) attributable to Holdings | (1,488) | 5,388 |
Less: Preferred stock dividends | 13 | 13 |
Net income (loss) available to Holdings’ common shareholders | $ (1,501) | $ 5,375 |
Net income (loss) applicable to Holdings’ common shareholders per common share: | ||
Basic (in dollars per share) | $ (3.46) | $ 11.66 |
Diluted (in dollars per share) | $ (3.46) | $ 11.60 |
Weighted average common shares outstanding (in millions): | ||
Basic (in shares) | 434.2 | 461 |
Diluted (in shares) | 434.2 | 463.5 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (1,400) | $ 5,425 |
Other comprehensive income (loss) net of income taxes: | ||
Change in unrealized gains (losses), net of reclassification adjustment | (3,153) | 1,430 |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 33 | 28 |
Foreign currency translation adjustment | (6) | (21) |
Total other comprehensive income (loss), net of income taxes | (3,126) | 1,437 |
Comprehensive income (loss) | (4,526) | 6,862 |
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 85 | 29 |
Comprehensive income (loss) attributable to Holdings | $ (4,611) | $ 6,833 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Cumulative effect of period of adoption, adjusted balance | Parent | ParentCumulative effect of period of adoption, adjusted balance | Preferred Stock and Additional Paid-In Capital | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Retained EarningsCumulative effect of period of adoption, adjusted balance | AOCI Attributable to Parent | Non-controlling Interest |
Beginning of year at Dec. 31, 2019 | $ 15,047 | $ (30) | $ 13,456 | $ (30) | $ 775 | $ 5 | $ 1,920 | $ (1,832) | $ 11,744 | $ (30) | $ 844 | $ 1,591 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock compensation | 30 | 27 | 14 | 13 | 3 | |||||||
Purchase of treasury stock | (206) | (206) | (206) | |||||||||
Reissuance of treasury stock | (13) | (13) | (13) | |||||||||
Repurchase of AB Holding units | 0 | 6 | 6 | (6) | ||||||||
Dividends paid to noncontrolling interest | (93) | (93) | ||||||||||
Dividends on common stock | (69) | (69) | (69) | |||||||||
Dividends on preferred stock | (13) | (13) | (13) | |||||||||
Net income (loss) | 5,455 | 5,388 | 5,388 | 67 | ||||||||
Other comprehensive income (loss) | 1,437 | 1,445 | 1,445 | (8) | ||||||||
Other | (10) | (10) | (10) | 0 | ||||||||
End of year at Mar. 31, 2020 | $ 21,535 | 19,981 | 775 | 5 | 1,930 | (2,025) | 17,007 | 2,289 | 1,554 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Accounting standards update [extensible list] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||||
Beginning of year at Dec. 31, 2020 | $ 17,177 | 15,576 | 1,269 | 5 | 1,985 | (2,245) | 10,699 | 3,863 | 1,601 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock compensation | 71 | 64 | 19 | 45 | 7 | |||||||
Purchase of treasury stock | (430) | (430) | (10) | (420) | ||||||||
Reissuance of treasury stock | (46) | (46) | (46) | |||||||||
Retirement of common stock | 0 | 0 | 320 | (320) | ||||||||
Repurchase of AB Holding units | (13) | (13) | ||||||||||
Dividends paid to noncontrolling interest | (108) | (108) | ||||||||||
Dividends on common stock | (74) | (74) | (74) | |||||||||
Dividends on preferred stock | (13) | (13) | (13) | |||||||||
Issuance of preferred stock | 293 | 293 | 293 | |||||||||
Net income (loss) | (1,400) | (1,488) | (1,488) | 88 | ||||||||
Other comprehensive income (loss) | (3,126) | (3,123) | (3,123) | (3) | ||||||||
Other | (63) | (66) | (66) | 3 | ||||||||
End of year at Mar. 31, 2021 | $ 12,268 | $ 10,693 | $ 1,562 | $ 5 | $ 1,928 | $ (2,300) | $ 8,758 | $ 740 | $ 1,575 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared per common share (in dollars per share) | $ 0.17 | $ 0.15 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net income (loss) | $ (1,400) | $ 5,425 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Interest credited to policyholders’ account balances | 291 | 317 |
Policy charges and fee income | (949) | (996) |
Net derivative (gains) losses | 2,546 | (9,400) |
Credit losses on AFS debt securities and loans | (1) | 12 |
Investment (gains) losses, net | (182) | (65) |
(Gains) losses on businesses HFS | (1) | 49 |
Realized and unrealized (gains) losses on trading securities | 41 | 170 |
Non-cash long term incentive compensation expense | 41 | 5 |
Amortization and depreciation | 153 | 1,330 |
Equity (income) loss from limited partnerships | (107) | 22 |
Changes in: | ||
Net broker-dealer and customer related receivables/payables | (328) | 881 |
Reinsurance recoverable | (79) | (113) |
Segregated cash and securities, net | 341 | (918) |
Capitalization of deferred policy acquisition costs | (186) | (185) |
Future policy benefits | 60 | 1,925 |
Current and deferred income taxes | (429) | 1,420 |
Other, net | 175 | (449) |
Net cash provided by (used in) operating activities | (14) | (570) |
Proceeds from the sale/maturity/prepayment of: | ||
Fixed maturities, available-for-sale | 9,257 | 2,762 |
Fixed maturities, at fair value using the fair value option | 109 | 0 |
Mortgage loans on real estate | 245 | 120 |
Trading account securities | 799 | 510 |
Short term investments | 18 | 718 |
Other | 775 | 147 |
Payment for the purchase/origination of: | ||
Fixed maturities, available-for-sale | (10,240) | (4,993) |
Fixed maturities, at fair value using the fair value option | (322) | 0 |
Mortgage loans on real estate | (352) | (181) |
Trading account securities | (70) | (166) |
Short term investments | (5) | (359) |
Other | (1,157) | (194) |
Cash settlements related to derivative instruments | (2,973) | 5,581 |
Investment in capitalized software, leasehold improvements and EDP equipment | (23) | (14) |
Other, net | 188 | 216 |
Net cash provided by (used in) investing activities | (3,751) | 4,147 |
Cash flows from financing activities: | ||
Deposits | 7,236 | 2,507 |
Withdrawals | (1,467) | (1,099) |
Transfers (to) from Separate Accounts | 497 | 513 |
Change in short-term financings | 185 | 105 |
Change in collateralized pledged assets | (1,392) | 43 |
Change in collateralized pledged liabilities | 96 | 646 |
(Decrease) increase in overdrafts payable | 1 | 85 |
Repayment of long-term debt | (280) | 0 |
Proceeds from notes issued by consolidated VIEs | 11 | 0 |
Dividends paid on common stock | (74) | (69) |
Dividends paid on preferred stock | (13) | (13) |
Issuance of preferred stock | 293 | 0 |
Purchases of AB Holding Units to fund long-term incentive compensation plan awards | (36) | (18) |
Purchase of treasury shares | (430) | (205) |
Purchases (redemptions) of noncontrolling interests of consolidated company-sponsored investment funds | (7) | (74) |
Distribution to noncontrolling interest of consolidated subsidiaries | (108) | (93) |
Other, net | (76) | (6) |
Net cash provided by (used in) financing activities | 4,436 | 2,322 |
Effect of exchange rate changes on cash and cash equivalents | (2) | (13) |
Change in cash and cash equivalents | 669 | 5,886 |
Cash and cash equivalents, beginning of year | 6,179 | 4,405 |
Change in cash of businesses held-for-sale | (53) | 24 |
Cash and cash equivalents, end of year | 6,795 | 10,315 |
Non-cash transactions: | ||
Right-of-use assets obtained in exchange for lease obligations | $ 26 | $ 14 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Equitable Holdings, Inc. is the holding company for a diversified financial services organization. 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 services or products to 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 AB Holding and 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 VUL, IUL 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: Equitable 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. As of March 31, 2021 and December 31, 2020, the Company’s economic interest in AB was approximately 64% and 65%, respectively.The General Partner of AB 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 for all periods presented. On October 27, 2020, the Company entered into a Master Transaction Agreement with Venerable Insurance and Annuity Company, an insurance company domiciled in Iowa, pursuant to which, among other things, VIAC will acquire all of the shares of the capital stock of CS Life, a wholly owned subsidiary of the Company. The transaction is expected to close in the second quarter of 2021 and is subject to conditions specified in the Agreement, including the receipt of required regulatory approvals. Prior to the closing, CS Life will affect the recapture of all of the business that is currently ceded to CS Life RE Company, an insurance company domiciled in Arizona and wholly owned subsidiary of CS Life, and sell 100% of the common stock of CS Life RE to an affiliate. The assets and liabilities of CS Life, including those assets and liabilities associated with CS Life RE that are expected to be recaptured into CS Life immediately prior the closing, were reported as HFS in the Company’s consolidated balance sheets as of December 31, 2020. See Note 15 of the Notes to the Consolidated Financial Statements. Immediately following the sale of CS Life, CS Life and Equitable Financial will enter into a coinsurance and modified coinsurance agreement (the “Reinsurance Agreement”), pursuant to which Equitable Financial will cede to CS Life, on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial in 2006-2008 (the “Block”). The Block is comprised of non-New York “Accumulator” policies containing fixed rate GMIB and/or GMDB guarantees. CS Life will deposit assets supporting the general account liabilities relating to the Block into a trust account for the benefit of Equitable Financial to secure its obligations to Equitable Financial under the Reinsurance Agreement. Equitable Financial will reinsure the separate accounts relating to the Block on a modified coinsurance basis. Venerable Holdings Inc. (“VHI”)will provide a parental company guarantee of CS Life’s |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The unaudited interim consolidated financial statements (the “consolidated financial statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to the Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). 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, with the exception of the Company’s update of its interest rate assumption and adoption of new economic scenario generator as further described below in Assumption Updates and Model Changes. 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, 2020. The accompanying unaudited consolidated financial statements present the consolidated results of operations, financial condition, and cash flows of the Company and its subsidiaries and those investment companies, partnerships and joint ventures in which the Company has control and a majority economic interest as well as those variable interest entities (“VIEs”) that meet the requirements for consolidation. All significant intercompany transactions and balances have been eliminated in consolidation. The terms “first quarter 2021” and “first quarter 2020” refer to the three months ended March 31, 2021 and 2020, respectively. The terms “first three months of 2021” and “first three months of 2020” refer to the three months ended March 31, 2021 and 2020, respectively. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Adoption of New Accounting Pronouncements Description Effect on the Financial Statement or Other Significant Matters ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as clarifying and amending existing guidance. On January 1, 2021, the Company adopted the new accounting standards update. The new guidance is applied either on a retrospective, modified retrospective or prospective basis based on the items to which the amendments relate. The adoption did not have a material impact on the Company’s consolidated financial position, results of operations and cash flows as of the adoption date. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. The Company is currently evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements, however the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls. 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. Interest rates used to discount the liability will need to be updated quarterly using an upper medium grade (low credit risk) fixed-income instrument yield. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. The ASU requires MRBs to be measured at fair value with changes in value attributable to changes in instrument-specific credit risk recognized in OCI. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs will be required to be written off for unexpected contract terminations but will not be subject to impairment testing. 4. Expanded footnote disclosures. The ASU requires additional disclosures including disaggregated roll-forwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, separate account liabilities and deferred acquisition costs. Companies will also be required to disclose information about significant inputs, judgements, assumptions and methods used in measurement. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. ASU2020-04 : Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this ASU provide optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This ASU is effective as of March 12, 2020 through December 31, 2022. The Company is currently assessing the applicability of the optional expedients and exceptions provided under the ASU. Management is evaluating the impact that the adoption of this guidance will have on the Company’s consolidated financial statements. Investments The carrying values of fixed maturities classified as AFS are reported at fair value. Changes in fair value are reported in OCI, net of allowance for credit losses, policy related amounts and deferred income taxes. Changes in credit losses are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include REIT, perpetual preferred stock and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. Effective January 1, 2021, the Company began classifying certain preferred stock as equity securities to better reflect the economics and nature of these securities. These preferred stock securities are reported in other equity investments. The Company determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. The Company’s management, with the assistance of its investment advisors, evaluates AFS debt securities that experienced a decline in fair value below amortized cost for credit losses which are evaluated in accordance with the new financial instruments credit losses guidance. Integral to this review is an assessment made each quarter, on a security-by-security basis, by the IUS Committee, of various indicators of credit deterioration to determine whether the investment security has experienced a credit loss. This assessment includes, but is not limited to, consideration of the severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, and the financial strength, liquidity and continued viability of the issuer. The Company recognizes an allowance for credit losses on AFS debt securities with a corresponding adjustment to earnings rather than a direct write down that reduces the cost basis of the investment, and credit losses are limited to the amount by which the security’s amortized cost basis exceeds its fair value. Any improvements in estimated credit losses on AFS debt securities are recognized immediately in earnings. Management does not use the length of time a security has been in an unrealized loss position as a factor, either by itself or in combination with other factors, to conclude that a credit loss does not exist. When the Company determines that there is more than 50% likelihood that it is not going to recover the principal and interest cash flows related to an AFS debt security, the security is placed on nonaccrual status and the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in a timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable. If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting allowance is recognized in income (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value. Write-offs of AFS debt securities are recorded when all or a portion of a financial asset is deemed uncollectible. Full or partial write-offs are recorded as reductions to the amortized cost basis of the AFS debt security and deducted from the allowance in the period in which the financial assets are deemed uncollectible. The Company elected to reverse accrued interest deemed uncollectible as a reversal of interest income. In instances where the Company collects cash that it has previously written off, the recovery will be recognized through earnings or as a reduction of the amortized cost basis for interest and principal, respectively. COLI has been purchased by the Company and certain subsidiaries on the lives of certain key employees and the Company and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. As of March 31, 2021 and December 31, 2020, the carrying value of COLI was $992 million and $992 million, respectively, and is reported in Other invested assets in the consolidated balance sheets. Accounting and Consolidation of VIEs For all new investment products and entities developed by the Company, the Company first determines whether the entity is a VIE, which involves determining an entity’s variability and variable interests, identifying the holders of the equity investment at risk and assessing the five characteristics of a VIE. Once an entity has been determined to be a VIE, the Company then determines whether it is the primary beneficiary of the VIE based on its beneficial interests. If the Company is deemed to be the primary beneficiary of the VIE, then the Company consolidates the entity. Management of the Company reviews quarterly its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client AUM to determine the entities that the Company is required to consolidate under this guidance. These entities include certain mutual fund products, hedge funds, structured products, group trusts, collective investment trusts and limited partnerships. 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. Consolidated VIEs Consolidated CLOs The Company is the investment manager of certain asset-backed investment vehicles, commonly referred to as CLOs, and certain other vehicles for which the Company earns fee income for investment management services. The Company may sell or syndicate investments through these vehicles, principally as part of the strategic investing activity as part of its investment management businesses. Additionally, the Company may invest in securities issued by these vehicles which are eliminated in consolidation of the CLO. As of March 31, 2021 and December 31, 2020, respectively, Equitable Financial holds $41 million and $38 million of equity interests in the CLO. The Company consolidated the CLO as of March 31, 2021 and December 31, 2020 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority ownership of AB, which functions as the CLO loan manager. The assets of the CLO are legally isolated from the Company’s creditors and can only be used to settle obligations of the CLO. The liabilities of the CLO are non-recourse to the Company and the Company has no obligation to satisfy the liabilities of the CLO. As of March 31, 2021, Equitable Financial holds $81 million of equity interests in a newly formed SPE established to purchase loans from the market in anticipation of a new CLO transaction. The Company has determined it will consolidate the SPE as of March 31, 2021 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority ownership of AB, which functions as the SPE loan manager. Resulting from this consolidation in the Company’s consolidated balance sheets are fixed maturities, at fair value using the fair value option with total assets of $844 million and $389 million notes issued by consolidated variable interest entities, at fair value using the fair value option with total liabilities of $323 million and $313 million at March 31, 2021 and December 31, 2020, respectively . The unpaid outstanding principal balance of the notes and short-term borrowing is $547 million and $362 million at March 31, 2021 and December 31, 2020, Consolidated Limited Partnerships As of March 31, 2021 and December 31, 2020, the Company consolidated one private equity limited partnership for which it was identified as the primary beneficiary under the VIE model. Included in other invested assets in the Company’s consolidated balance sheets at March 31, 2021 and December 31, 2020 are total assets of $10 million and $12 million, respectively related to this VIE. Consolidated AB-Sponsored Investment Funds Included in the Company’s consolidated balance sheet as of March 31, 2021 and December 31, 2020 are assets of $290 million and $284 million, liabilities of $14 million and $8 million, and redeemable noncontrolling interests of $64 million and $83 million, respectively, associated with the consolidation of AB-sponsored investment funds under the VIE model. Also included in the Company’s consolidated balance sheets as of March 31, 2021 and December 31, 2020 are assets of $78 million and $68 million, liabilities of $29 million and $23 million, and redeemable noncontrolling interests of $24 million and $20 million, respectively, 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 in the Company’s consolidated balance sheets; ownership interests not held by the Company relating to consolidated VIEs and VOEs are presented either as redeemable or non-redeemable noncontrolling interests, as appropriate. Redeemable noncontrolling interests are presented in mezzanine equity and non-redeemable noncontrolling interests are presented within permanent equity. The Company is not required to provide financial support to these AB-sponsored investment funds, and only the assets of such funds are available to settle each fund’s own liabilities. Non-Consolidated VIEs As of March 31, 2021 and December 31, 2020, respectively, the Company held approximately $1.5 billion and $1.4 billion of investment assets in the form of equity interests issued by non-corporate legal entities determined under the guidance to be VIEs, such as limited partnerships and limited liability companies, including CLOs, 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 sheets as other equity investments and applies the equity method of accounting for these positions. The net assets of these non-consolidated VIEs are approximately $173.1 billion and $165.9 billion as of March 31, 2021 and December 31, 2020, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $1.5 billion and $1.4 billion and approximately $1.3 billion and $1.2 billion of unfunded commitments as of March 31, 2021 and December 31, 2020, respectively. The Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. Non-Consolidated AB-Sponsored Investment Products As of March 31, 2021 and December 31, 2020, the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $70.9 billion and $73.4 billion, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $7 million as of March 31, 2021 and December 31, 2020. The Company has no further commitments to or economic interest in these VIEs. Assumption Updates and Model Changes The Company conducts its annual review of its assumptions and models during the third quarter of each year. The annual review encompasses assumptions underlying the valuation of unearned revenue liabilities, embedded derivatives for our insurance business, liabilities for future policyholder benefits, DAC and DSI assets. However, the Company updates its assumptions as needed in the event it becomes aware of economic conditions or events that could require a change in assumptions that it believes may have a significant impact to the carrying value of product liabilities and assets and consequently materially impact its earnings in the period of the change. Due to the extraordinary economic conditions driven by the COVID-19 pandemic in the first quarter of 2020, the Company updated its interest rate assumption to grade from the current interest rate environment to an ultimate five-year historical average over a 10-year period. As such, the 10-year U.S. Treasury yield grades from the current level to an ultimate 5-year average of 2.25%. The low interest rate environment and update to the interest rate assumption caused a loss recognition event for the Company’s life interest-sensitive products, as well as to certain run-off business. This loss recognition event caused an acceleration of DAC amortization on the life interest-sensitive products and an increase in the premium deficiency reserve on the run-off business in the first quarter of 2020. Impact of Assumption Updates There were no assumption changes in the first quarter of 2021. The net impact of the assumption update in the first quarter of 2020 was an increase in policy charges and fee income of $46 million, an increase in policyholders’ benefits of $1.4 billion, a decrease in interest credited to policyholders’ account balances of $6 million, and an increase in amortization of DAC of $1.1 billion. This resulted in a decrease in income (loss) from operations, before income taxes of $2.5 billion and a decrease in net income (loss) of $2.0 billion. Model Changes There were no model changes in the first quarter of 2021. In the first quarter of 2020, the Company adopted a new economic scenario generator to calculate the fair value of the GMIB reinsurance contract asset and GMxB derivative features liability, eliminating reliance on AXA for scenario production. The new economic scenario generator allows for a tighter calibration of U.S. indices, better reflecting the Company’s actual portfolio. The net impact of the new economic scenario generator resulted in an increase in income (loss) from continuing operations, before income taxes of $201 million, and an increase to net income (loss) of $159 million during 2020. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS Fixed Maturities AFS The components of fair value and amortized cost for fixed maturities classified as AFS on the consolidated balance sheets excludes accrued interest receivable because the Company elected to present accrued interest receivable within other assets. Accrued interest receivable on AFS fixed maturities as of March 31, 2021 was $545 million . There was no accrued interest written off for AFS fixed maturities for the three months ended March 31, 2021. The following tables provide information relating to the Company’s fixed maturities classified as AFS. AFS Fixed Maturities by Classification Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) March 31, 2021 (4) Fixed Maturities: Corporate (1) $ 50,988 $ 19 $ 2,775 $ 652 $ 53,092 U.S. Treasury, government and agency 14,817 — 1,362 175 16,004 States and political subdivisions 569 — 78 7 640 Foreign governments 1,065 — 47 38 1,074 Residential mortgage-backed (2) 119 — 11 — 130 Asset-backed (3) 4,653 — 28 2 4,679 Commercial mortgage-backed 1,482 — 26 18 1,490 Redeemable preferred stock (5) 41 — 11 — 52 Total at March 31, 2021 $ 73,734 $ 19 $ 4,338 $ 892 $ 77,161 December 31, 2020 (4) Fixed Maturities: Corporate (1) $ 53,160 $ 13 $ 5,104 $ 92 $ 58,159 U.S. Treasury, government and agency 12,675 — 3,448 5 16,118 States and political subdivisions 535 — 100 — 635 Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Foreign governments 1,011 — 98 6 1,103 Residential mortgage-backed (2) 130 — 13 — 143 Asset-backed (3) 3,587 — 29 5 3,611 Commercial mortgage-backed 1,148 — 55 — 1,203 Redeemable preferred stock 621 — 48 3 666 Total at December 31, 2020 $ 72,867 $ 13 $ 8,895 $ 111 $ 81,638 ______________ (1) Corporate fixed maturities include both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types. (4) Excludes amounts reclassified as HFS. (5) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments). The contractual maturities of AFS fixed maturities as of March 31, 2021 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. Contractual Maturities of AFS Fixed Maturities Amortized Cost (Less Allowance for Credit Losses) Fair Value (in millions) March 31, 2021 Contractual maturities: Due in one year or less $ 2,645 $ 2,665 Due in years two through five 16,460 17,279 Due in years six through ten 19,385 20,464 Due after ten years 28,930 30,402 Subtotal 67,420 70,810 Residential mortgage-backed 119 130 Asset-backed 4,653 4,679 Commercial mortgage-backed 1,482 1,490 Redeemable preferred stock 41 52 Total at March 31, 2021 $ 73,715 $ 77,161 The following table shows proceeds from sales, gross gains (losses) from sales and credit losses for AFS fixed maturities for the three months ended March 31, 2021 and 2020: Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities Three Months Ended March 31, 2021 2020 (in millions) Proceeds from sales $ 7,209 $ 1,820 Gross gains on sales $ 291 $ 70 Gross losses on sales $ (116) $ (6) Credit losses $ (6) $ (2) The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts. AFS Fixed Maturities - Credit Loss Impairments Three Months Ended March 31, 2021 2020 (in millions) Balance, beginning of period $ 32 $ 21 Previously recognized impairments on securities that matured, paid, prepaid or sold — — Recognized impairments on securities impaired to fair value this period (1) — — Credit losses recognized this period on securities for which credit losses were not previously recognized 2 2 Additional credit losses this period on securities previously impaired 4 — Increases due to passage of time on previously recorded credit losses — — Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior) — — Balance at March 31, $ 38 $ 23 ______________ (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. The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI. Net Unrealized Gains (Losses) on AFS Fixed Maturities Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, January 1, 2021 $ 8,811 $ (1,548) $ (1,065) $ (1,302) $ 4,896 Net investment gains (losses) arising during the period (5,129) — — — (5,129) Reclassification adjustment: Included in Net income (loss) (175) — — — (175) Excluded from Net income (loss) — — — — — Other (1) (33) — — — (33) Impact of net unrealized investment gains (losses) — 599 757 836 2,192 Net unrealized investment gains (losses) excluding credit losses 3,474 (949) (308) (466) 1,751 Net unrealized investment gains (losses) with credit losses (8) 2 1 1 (4) Balance, March 31, 2021 $ 3,466 $ (947) $ (307) $ (465) $ 1,747 Balance, January 1, 2020 $ 3,453 $ (894) $ (189) $ (497) $ 1,873 Net investment gains (losses) arising during the period 1,922 — — — 1,922 Reclassification adjustment: Included in Net income (loss) (62) — — — (62) Excluded from Net income (loss) — — — — — Impact of net unrealized investment gains (losses) — (28) (165) (351) (544) Net unrealized investment gains (losses) excluding credit losses 5,313 (922) (354) (848) 3,189 Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Net unrealized investment gains (losses) with credit losses (7) 1 1 1 (4) Balance, March 31, 2020 $ 5,306 $ (921) $ (353) $ (847) $ 3,185 ______________ (1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments). The following tables disclose the fair values and gross unrealized losses of the 1,663 issues as of March 31, 2021 and the 565 issues as of December 31, 2020 that are not deemed to have credit losses, 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. AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded 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, 2021: (1) Fixed Maturities: Corporate $ 12,951 $ 611 $ 468 $ 30 $ 13,419 $ 641 U.S. Treasury, government and agency 5,043 175 — — 5,043 175 States and political subdivisions 117 7 — — 117 7 Foreign governments 424 35 29 4 453 39 Asset-backed 649 2 17 — 666 2 Commercial mortgage-backed 778 18 — — 778 18 Redeemable preferred stock (2) — — — — — — Total at March 31, 2021 $ 19,962 $ 848 $ 514 $ 34 $ 20,476 $ 882 December 31, 2020: (1) Fixed Maturities: Corporate $ 2,990 $ 53 $ 337 $ 33 $ 3,327 $ 86 U.S. Treasury, government and agency 885 5 — — 885 5 Foreign governments 153 2 21 4 174 6 Asset-backed 809 4 76 1 885 5 Redeemable preferred stock 53 1 11 2 64 3 Total at December 31, 2020 $ 4,890 $ 65 $ 445 $ 40 $ 5,335 $ 105 ______________ (1) Excludes amounts reclassified as HFS. (2) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments). The Company’s investments in fixed maturities 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 0.7% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of March 31, 2021 and December 31, 2020 were $368 million and $391 million, respectively, representing 3.0% and 2.3% of the consolidated equity of the Company. 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 NAIC designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). As of March 31, 2021 and December 31, 2020, respectively, approximately $2.6 billion and $2.5 billion, or 3.6% and 3.4%, of the $73.7 billion and $72.9 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had gross unrealized losses of $49 million and $49 million as of March 31, 2021 and December 31, 2020, respectively. As of March 31, 2021 and December 31, 2020, respectively, the $34 million and $40 million of gross unrealized losses of twelve months or more were primarily concentrated in corporate securities. In accordance with the policy described in Note 2, the Company concluded that an adjustment to allowance for credit losses for these securities was not warranted at either March 31, 2021 or December 31, 2020. As of March 31, 2021 and December 31, 2020, 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. Based on the Company’s evaluation both qualitatively and quantitatively of the drivers of the decline in fair value of fixed maturity securities as of March 31, 2021, the Company determined that the unrealized loss was primarily due to increases in credit spreads and changes in credit ratings. Mortgage Loans on Real Estate Accrued interest receivable on commercial and agricultural mortgage loans as of March 31, 2021 was $30 million and $29 million, respectively. There was no accrued interest written off for commercial and agricultural mortgage loans for the three months ended March 31, 2021. As of March 31, 2021, the Company had no loans for which foreclosure was probable included within the individually assessed mortgage loans, and accordingly had no associated allowance for credit losses. Allowance for Credit Losses on Mortgage Loans The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 77 $ 33 Current-period provision for expected credit losses (7) 11 Write-offs charged against the allowance — — Recoveries of amounts previously written off — (1) Net change in allowance (7) 10 Balance, end of period $ 70 $ 43 Agricultural mortgages: Balance, beginning of period $ 4 $ 3 Current-period provision for expected credit losses — — Write-offs charged against the allowance — — Recoveries of amounts previously written off — — Net change in allowance — — Balance, end of period $ 4 $ 3 Total allowance for credit losses $ 74 $ 46 The change in the allowance for credit losses is attributable to: • increases/decreases in the loan balance due to new originations, maturing mortgages, and loan amortization; • changes in credit quality; and • changes in market assumptions primarily related to COVID-19 driven economic changes. Credit Quality Information The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of March 31, 2021 and December 31, 2020. LTV Ratios (1) March 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ — $ — $ — $ 324 $ 789 $ 1,113 50% - 70% 313 1,294 364 803 657 3,681 7,112 70% - 90% — 321 456 452 220 668 2,117 90% plus — — — 12 5 290 307 Total commercial $ 313 $ 1,615 $ 820 $ 1,267 $ 1,206 $ 5,428 $ 10,649 Agricultural: 0% - 50% $ 51 $ 218 $ 131 $ 152 $ 140 $ 853 $ 1,545 50% - 70% 41 275 120 158 101 444 1,139 70% - 90% — — — 3 — 18 21 90% plus — — — — — — — Total agricultural $ 92 $ 493 $ 251 $ 313 $ 241 $ 1,315 $ 2,705 Total mortgage loans: 0% - 50% $ 51 $ 218 $ 131 $ 152 $ 464 $ 1,642 $ 2,658 50% - 70% 354 1,569 484 961 758 4,125 8,251 70% - 90% — 321 456 455 220 686 2,138 90% plus — — — 12 5 290 307 Total mortgage loans $ 405 $ 2,108 $ 1,071 $ 1,580 $ 1,447 $ 6,743 $ 13,354 Debt Service Coverage Ratios (2 ) March 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 226 $ 1,230 $ 492 $ 772 $ 268 $ 3,336 $ 6,324 1.8x to 2.0x — 227 90 118 378 438 1,251 1.5x to 1.8x — 98 138 187 424 758 1,605 1.2x to 1.5x — 60 56 154 81 699 1,050 1.0x to 1.2x 87 — 44 — — 124 255 Less than 1.0x — — — 36 55 73 164 Total commercial $ 313 $ 1,615 $ 820 $ 1,267 $ 1,206 $ 5,428 $ 10,649 Agricultural: Greater than 2.0x $ 11 $ 67 $ 26 $ 24 $ 34 $ 233 $ 395 1.8x to 2.0x 19 37 31 24 15 94 220 1.5x to 1.8x 25 117 33 39 43 249 506 1.2x to 1.5x 22 182 118 124 82 428 956 1.0x to 1.2x 15 86 34 91 66 267 559 Less than 1.0x — 4 9 11 1 44 69 Total agricultural $ 92 $ 493 $ 251 $ 313 $ 241 $ 1,315 $ 2,705 Total mortgage loans: Greater than 2.0x $ 237 $ 1,297 $ 518 $ 796 $ 302 $ 3,569 $ 6,719 1.8x to 2.0x 19 264 121 142 393 532 1,471 1.5x to 1.8x 25 215 171 226 467 1,007 2,111 1.2x to 1.5x 22 242 174 278 163 1,127 2,006 1.0x to 1.2x 102 86 78 91 66 391 814 Less than 1.0x — 4 9 47 56 117 233 Total mortgage loans $ 405 $ 2,108 $ 1,071 $ 1,580 $ 1,447 $ 6,743 $ 13,354 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. LTV Ratios (1) December 31, 2020 Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ — $ — $ 324 $ 187 $ 505 $ 1,016 50% - 70% 1,294 357 803 656 2,190 1,697 6,997 70% - 90% 321 457 452 219 203 538 2,190 90% plus — — 12 5 — 288 305 Total commercial $ 1,615 $ 814 $ 1,267 $ 1,204 $ 2,580 $ 3,028 $ 10,508 Agricultural: 0% - 50% $ 218 $ 135 $ 169 $ 157 $ 236 $ 652 $ 1,567 50% - 70% 277 129 161 102 124 351 1,144 70% - 90% — — 3 — — 18 21 90% plus — — — — — — — Total agricultural $ 495 $ 264 $ 333 $ 259 $ 360 $ 1,021 $ 2,732 Total mortgage loans: 0% - 50% $ 218 $ 135 $ 169 $ 481 $ 423 $ 1,157 $ 2,583 50% - 70% 1,571 486 964 758 2,314 2,048 8,141 70% - 90% 321 457 455 219 203 556 2,211 90% plus — — 12 5 — 288 305 Total mortgage loans $ 2,110 $ 1,078 $ 1,600 $ 1,463 $ 2,940 $ 4,049 $ 13,240 Debt Service Coverage Ratios (2) December 31, 2020 Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 1,230 $ 492 $ 772 $ 268 $ 1,959 $ 1,230 $ 5,951 1.8x to 2.0x 227 83 118 378 184 329 1,319 1.5x to 1.8x 98 138 187 479 437 616 1,955 1.2x to 1.5x 60 57 154 79 — 658 1,008 1.0x to 1.2x — 44 — — — 123 167 Less than 1.0x — — 36 — — 72 108 Total commercial $ 1,615 $ 814 $ 1,267 $ 1,204 $ 2,580 $ 3,028 $ 10,508 Agricultural: Greater than 2.0x $ 67 $ 26 $ 36 $ 38 $ 71 $ 167 $ 405 1.8x to 2.0x 38 35 14 15 20 82 204 1.5x to 1.8x 117 38 41 45 52 209 502 1.2x to 1.5x 183 120 141 90 142 313 989 1.0x to 1.2x 86 35 93 70 57 233 574 Less than 1.0x 4 10 8 1 18 17 58 Total agricultural $ 495 $ 264 $ 333 $ 259 $ 360 $ 1,021 $ 2,732 Total mortgage loans: Greater than 2.0x $ 1,297 $ 518 $ 808 $ 306 $ 2,030 $ 1,397 $ 6,356 1.8x to 2.0x 265 118 132 393 204 411 1,523 1.5x to 1.8x 215 176 228 524 489 825 2,457 1.2x to 1.5x 243 177 295 169 142 971 1,997 1.0x to 1.2x 86 79 93 70 57 356 741 Less than 1.0x 4 10 44 1 18 89 166 Total mortgage loans $ 2,110 $ 1,078 $ 1,600 $ 1,463 $ 2,940 $ 4,049 $ 13,240 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. The following tables provide information relating to the LTV and DSC ratios for commercial and agricultural mortgage loans as of March 31, 2021 and December 31, 2020. 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 LTV and DSC Ratios DSC Ratio (2) (3) LTV Ratio (1) (3): Greater than 2.0x 1.8x to 1.5x to 1.2x to 1.0x to Less than Total (in millions) March 31, 2021: Mortgage loans: Commercial: 0% - 50% $ 953 $ — $ 160 $ — $ — $ — $ 1,113 50% - 70% 4,370 877 1,156 597 112 — 7,112 70% - 90% 844 374 289 376 143 91 2,117 90% plus 157 — — 77 — 73 307 Total commercial $ 6,324 $ 1,251 $ 1,605 $ 1,050 $ 255 $ 164 $ 10,649 Agricultural: 0% - 50% $ 297 $ 99 $ 301 $ 510 $ 300 $ 38 $ 1,545 50% - 70% 98 119 205 446 259 12 1,139 70% - 90% — 2 — — — 19 21 90% plus — — — — — — — Total agricultural $ 395 $ 220 $ 506 $ 956 $ 559 $ 69 $ 2,705 Total mortgage loans: 0% - 50% $ 1,250 $ 99 $ 461 $ 510 $ 300 $ 38 $ 2,658 50% - 70% 4,468 996 1,361 1,043 371 12 8,251 70% - 90% 844 376 289 376 143 110 2,138 90% plus 157 — — 77 — 73 307 Total mortgage loans $ 6,719 $ 1,471 $ 2,111 $ 2,006 $ 814 $ 233 $ 13,354 DSC Ratio (2) (3) LTV Ratio (1) (3): Greater than 2.0x 1.8x to 1.5x to 1.2x to 1.0x to Less than Total (in millions) December 31, 2020: Mortgage loans: Commercial: 0% - 50% $ 856 $ — $ 160 $ — $ — $ — $ 1,016 50% - 70% 4,095 870 1,452 555 25 — 6,997 70% - 90% 844 449 343 376 142 36 2,190 90% plus 156 — — 77 — 72 305 Total commercial $ 5,951 $ 1,319 $ 1,955 $ 1,008 $ 167 $ 108 $ 10,508 Agricultural: 0% - 50% $ 297 $ 108 $ 291 $ 520 $ 317 $ 34 $ 1,567 50% - 70% 108 94 211 450 257 24 1,144 70% - 90% — 2 — 19 — — 21 90% plus — — — — — — — Total agricultural $ 405 $ 204 $ 502 $ 989 $ 574 $ 58 $ 2,732 Total mortgage loans: 0% - 50% $ 1,153 $ 108 $ 451 $ 520 $ 317 $ 34 $ 2,583 50% - 70% 4,203 964 1,663 1,005 282 24 8,141 70% - 90% 844 451 343 395 142 36 2,211 90% plus 156 — — 77 — 72 305 Total mortgage loans $ 6,356 $ 1,523 $ 2,457 $ 1,997 $ 741 $ 166 $ 13,240 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (3) Amounts presented at amortized cost basis. Past-Due and Nonaccrual Mortgage Loan Status The following table provides information relating to the aging analysis of past-due mortgage loans as of March 31, 2021 and December 31, 2020, respectively. Age Analysis of Past Due Mortgage Loans (1) Accruing Loans Non-accruing Loans Total Loans Non-accruing Loans with No Allowance Interest Income on Non-accruing Loans Past Due Current Total 30-59 Days 60-89 Days 90 Days or More Total (in millions) March 31, 2021: Mortgage loans: Commercial $ — $ — $ — $ — $ 10,649 $ 10,649 $ — $ 10,649 $ — $ — Agricultural 10 4 80 94 2,611 2,705 — 2,705 — — Total $ 10 $ 4 $ 80 $ 94 $ 13,260 $ 13,354 $ — $ 13,354 $ — $ — December 31, 2020: Mortgage loans: Commercial $ 162 $ — $ — $ 162 $ 10,346 $ 10,508 $ — $ 10,508 $ — $ — Agricultural 76 7 29 112 2,620 2,732 — 2,732 — — Total $ 238 $ 7 $ 29 $ 274 $ 12,966 $ 13,240 $ — $ 13,240 $ — $ — _______________ (1) Amounts presented at amortized cost basis. As of March 31, 2021 and December 31, 2020, the carrying values of problem mortgage loans that had been classified as non-accrual loans were $0 million and $0 million, respectively. Troubled Debt Restructuring There were no mortgage loan on real estate or fixed maturities accounted for as a TDR during the three months ended March 31, 2021 and 2020. Equity Securities The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three months ended March 31, 2021. Unrealized and Realized Gains (Losses) from Equity Securities (1) Three Months Ended March 31, 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 19 Net investment gains (losses) recognized on securities sold during the period (6) Unrealized and realized gains (losses) on equity securities $ 13 ______________ (1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments) Trading Securities As of March 31, 2021 and December 31, 2020, respectively, the fair value of the Company’s trading securities was $4.8 billion and $5.6 billion. As of March 31, 2021 and December 31, 2020, respectively, trading securities included the General Account’s investment in Separate Accounts which had carrying values of $42 million and $44 million. The table below shows a breakdown of net investment income (loss) from trading securities during the three months ended March 31, 2021 and 2020. Net Investment Income (Loss) from Trading Securities Three Months Ended March 31, 2021 2020 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (70) $ (186) Net investment gains (losses) recognized on securities sold during the period 29 4 Unrealized and realized gains (losses) on trading securities (41) (182) Interest and dividend income from trading securities 38 51 Net investment income (loss) from trading securities $ (3) $ (131) |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES 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” approved by applicable states’ insurance law. Derivatives are generally not accounted for using hedge accounting, with the exception of 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 its hedging strategy, the Company targets an 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. CTE98 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 GMxB features. 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 experience 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 reinsurance of the GMIB features is accounted for as a derivative. The Company has in place an economic hedge program using interest rate swaps and U.S. Treasury futures to partially protect the overall profitability of future variable annuity sales against declining interest rates. Derivatives Utilized to Hedge Crediting Rate Exposure on SCS, SIO, MSO and IUL Products/Investment Options The Company hedges crediting rates in the SCS variable annuity, SIO in the EQUI-VEST variable annuity series, MSO in the variable life insurance products and 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, thereby substantially reducing any exposure to market-related earnings volatility. Derivatives Used to Hedge Equity Market Risks Associated with the General Account’s Seed Money Investments in Retail Mutual Funds The Company’s General Account seed money investments in retail mutual funds expose us to market risk, including equity market risk which is partially hedged through equity-index futures contracts to minimize such risk. Derivatives Used to Hedge ULSG Policy The Company implemented a hedge program using fixed income total return swaps to mitigate the interest rate exposure in the ULSG policy statutory liability. 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 CDS. 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 derivative gains (losses). 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 CDS 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 its 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. The Company purchased CDS to mitigate its exposure to a reference entity through cash positions. These positions do not replicate credit spreads. To date, there have been no events of default or circumstances indicative of a deterioration in the credit quality of the named referenced entities to require or suggest that the Company will have to perform under the CDS that it sold. The maximum potential amount of future payments the Company could be required to make under the credit derivatives sold is limited to the par value of the referenced securities which is the dollar or euro-equivalent of the derivative’s notional amount. The Standard North American CDS Contract or Standard European Corporate Contract 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, both 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. 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 March 31, 2021 Three Months Ended March 31, 2021 Fair Value Notional Amount Derivative Assets Derivative Liabilities Net Derivative Gains (Losses) (2) (in millions) Derivative instruments: Freestanding derivatives (1): Equity contracts: Futures $ 5,397 $ 2 $ 1 $ (288) Swaps 19,308 5 3 (1,271) Options 43,207 9,764 4,246 1,145 Interest rate contracts: Swaps 13,980 3 2,144 (2,915) Futures 15,096 — — (949) Swaptions — — — — Credit contracts: Credit default swaps 1,129 18 12 — Other freestanding contracts: Foreign currency contracts 576 9 9 1 Margin — 58 — — Collateral — 1,605 3,882 — Embedded derivatives: GMIB reinsurance contracts (3) — 1,907 — (578) GMxB derivative features liability (4) (6) (7) — — 7,824 3,408 SCS, SIO, MSO and IUL indexed features (5) — — 5,297 (1,145) Total derivative instruments $ 98,693 $ 13,371 $ 23,418 Net derivative gains (losses) $ (2,592) ______________ (1) Reported in other invested assets in the consolidated balance sheets. (2) Reported in net derivative gains (losses) in the consolidated statements of income (loss). (3) Reported in GMIB reinsurance contract asset in the consolidated balance sheets. (4) Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (5) Reported in policyholders’ account balances in the consolidated balance sheets. (6) Includes amounts reclassified as HFS. (7) Excludes a $46 million settlement fee on CS Life reinsurance contract. Derivative Instruments by Category December 31, 2020 Three Months Ended March 31, 2020 Fair Value Notional Amount Derivative Assets Derivative Net Derivative (in millions) Derivative instruments: Freestanding derivatives (1): Equity contracts: Futures $ 4,881 $ — $ 2 $ 220 Swaps 22,456 6 2 3,778 Options 35,848 8,396 3,726 (3,851) Interest rate contracts: Swaps 23,834 553 656 3,578 Futures 18,571 — — 1,988 Swaptions — — — 9 Credit contracts: Credit default swaps 1,087 19 14 (1) Other freestanding contracts: Foreign currency contracts 411 9 9 (2) Margin — 49 66 — Collateral — 212 3,839 — Embedded derivatives: GMIB reinsurance contracts (3) — 2,488 — 726 GMxB derivative features liability (4) (6) — — 11,131 (1,199) SCS, SIO, MSO and IUL indexed features (5) — — 4,509 4,154 Total derivative instruments $ 107,088 $ 11,732 $ 23,954 Net derivative gains (losses) $ 9,400 ______________ (1) Reported in other invested assets in the consolidated balance sheets. (2) Reported in net derivative gains (losses) in the consolidated statements of income (loss). (3) Reported in GMIB reinsurance contract asset in the consolidated balance sheets. (4) Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (5) Reported in policyholders’ account balances in the consolidated balance sheets. (6) Includes amounts reclassified as HFS. Equity-Based and Treasury Futures Contracts Margin All outstanding equity-based and treasury futures contracts as of March 31, 2021 and December 31, 2020 are exchange-traded and net settled daily in cash. As of March 31, 2021 and December 31, 2020, respectively, the Company had open exchange-traded futures positions on: (i) the S&P 500, Nasdaq, Russell 2000 and Emerging Market indices, having initial margin requirements of $248 million and $307 million, (ii) the 2-year, 5-year and 10-year U.S. Treasury Notes on U.S. Treasury bonds and ultra-long bonds, having initial margin requirements of $125 million and $264 million, and (iii) the Euro Stoxx, FTSE 100, Topix, ASX 200 and EAFE indices as well as corresponding currency futures on the Euro/U.S. dollar, Pound/U.S. dollar, Australian dollar/U.S. dollar, and Yen/U.S. dollar, having initial margin requirements of $29 million and $35 million. Collateral Arrangements The Company generally has executed a CSA under the ISDA Master Agreement it maintains with each of its OTC derivative counterparties that requires both posting and accepting collateral either in the form of cash or high-quality securities, such as U.S. Treasury securities, U.S. government and government agency securities and investment grade corporate bonds. The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. As of March 31, 2021 and December 31, 2020, respectively, the Company held $3.9 billion and $3.8 billion in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. The unrestricted cash collateral is reported in other invested assets. The Company posted collateral of $1.6 billion and $212 million as of March 31, 2021 and December 31, 2020, respectively, in the normal operation of its collateral arrangements. The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of March 31, 2021 and December 31, 2020: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of March 31, 2021 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (3) Net Amount (in millions) Assets: Derivative assets (1) $ 11,463 $ 10,272 $ 1,191 $ — $ 1,191 Other financial assets 1,722 — 1,722 — 1,722 Other invested assets $ 13,185 $ 10,272 $ 2,913 $ — $ 2,913 Liabilities: Derivative liabilities (2) $ 10,296 $ 10,272 $ 24 $ — $ 24 Other financial liabilities 3,966 — 3,966 — 3,966 Other liabilities $ 14,262 $ 10,272 $ 3,990 $ — $ 3,990 ______________ (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) Financial instruments sent (held). As of December 31, 2020 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (3) Net Amount (in millions) Assets: Derivative assets (1) $ 9,244 $ 8,249 $ 995 $ (53) $ 942 Other financial instruments 1,733 — 1,733 — 1,733 Other invested assets $ 10,977 $ 8,249 $ 2,728 $ (53) $ 2,675 Liabilities: Derivative liabilities (2) $ 8,261 $ 8,249 $ 12 $ — $ 12 Other financial liabilities 3,674 — 3,674 — 3,674 Other liabilities $ 11,935 $ 8,249 $ 3,686 $ — $ 3,686 ______________ (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) Financial instruments sent (held). |
CLOSED BLOCK
CLOSED BLOCK | 3 Months Ended |
Mar. 31, 2021 | |
Closed Block Disclosure [Abstract] | |
CLOSED BLOCK | CLOSED BLOCKAs a result of demutualization, the Company’s Closed Block was established in 1992 for the benefit of certain individual participating policies that were in force on that date. Assets, liabilities and earnings of the Closed Block are specifically identified to support its participating policyholders.Assets allocated to the Closed Block inure solely to the benefit of the Closed Block policyholders and will not revert to the benefit of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of the Company’s General Account, any of its Separate Accounts or any affiliate of the Company without the approval of the New York State Department of Financial Services (the “NYDFS”). Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the General Account. For more information on the Closed Block, see Note 6 to the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2020. Summarized financial information for the Company’s Closed Block is as follows: March 31, 2021 December 31, 2020 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 6,133 $ 6,201 Policyholder dividend obligation 28 160 Other liabilities 63 39 Total Closed Block liabilities 6,224 6,400 Assets Designated to the Closed Block: Fixed maturities AFS, at fair value (amortized cost of $3,381 and $3,359) (allowance for credit losses of $0) 3,623 3,718 Mortgage loans on real estate (net of allowance for credit losses of $6 and $6) 1,761 1,773 Policy loans 636 648 Cash and other invested assets 19 28 Other assets 128 169 Total assets designated to the Closed Block 6,167 6,336 Excess of Closed Block liabilities over assets designated to the Closed Block 57 64 Amounts included in AOCI: Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $28 and $160; and net of income tax: $(45) and $(42) 179 167 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 236 $ 231 The Company’s Closed Block revenues and expenses were as follows: Three Months Ended March 31, 2021 2020 (in millions) Revenues: Premiums and other income $ 39 $ 42 Net investment income (loss) 60 66 Investment gains (losses), net — — Total revenues 99 108 Benefits and Other Deductions: Policyholders’ benefits and dividends 106 103 Other operating costs and expenses 1 — Total benefits and other deductions 107 103 Net income (loss), before income taxes (8) 5 Income tax (expense) benefit (1) — Net income (loss) $ (9) $ 5 A reconciliation of the Company’s policyholder dividend obligation follows: Three Months Ended March 31, 2021 2020 (in millions) Balance, beginning of year $ 160 $ 2 Unrealized investment gains (losses) (132) — Balance, end of year $ 28 $ 2 |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 3 Months Ended |
Mar. 31, 2021 | |
Insurance [Abstract] | |
INSURANCE LIABILITIES | INSURANCE LIABILITIES 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. Liabilities for Variable Annuity Contracts with GMDB and GMIB Features without NLG Rider Feature The change in the liabilities for variable annuity contracts with GMDB and GMIB features and without a NLG feature are summarized in the tables below. The amounts for the direct contracts (before reinsurance ceded) and assumed contracts are reflected in the consolidated balance sheets in future policy benefits and other policyholders’ liabilities. The amounts for the ceded contracts are reflected in the consolidated balance sheets in amounts due from reinsurers. The amounts for the ceded IB are reflected in the consolidated balance sheets in GMIB reinsurance contract asset, at fair value. Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature Three Months Ended March 31, 2021 and 2020 GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Balance, January 1, 2021 $ 5,097 $ 72 $ (88) $ 6,026 $ 196 $ (2,488) Paid guarantee benefits (133) (6) 3 (92) (52) 14 Other changes in reserve 122 6 1 32 — 567 Balance, March 31, 2021 $ 5,086 $ 72 $ (84) $ 5,966 $ 144 $ (1,907) Balance, January 1, 2020 $ 4,780 $ 76 $ (104) $ 4,673 $ 187 $ (2,139) Paid guarantee benefits (111) (6) 5 (74) (1) 20 Other changes in reserve 377 2 (11) 1,675 33 (706) Balance, March 31, 2020 $ 5,046 $ 72 $ (110) $ 6,274 $ 219 $ (2,825) Liabilities for Embedded and Freestanding Insurance Related Derivatives The liability for the GMxB derivative features, the liability for SCS, SIO, MSO and IUL indexed features and the asset and liability for the GMIB reinsurance contracts are considered embedded or freestanding insurance derivatives and are reported at fair value. For the fair value of the assets and liabilities associated with these embedded or freestanding insurance derivatives, see Note 7 Fair Value Disclosures. Account Values and Net Amount at Risk Account Values and NAR for direct and assumed variable annuity contracts in force with GMDB and GMIB features as of March 31, 2021 are presented in the following tables by guarantee type. For contracts with the GMDB feature, the NAR in the event of death is the amount by which the GMDB feature exceeds the related Account Values. For contracts with the GMIB feature, the NAR in the event of annuitization is the amount by which the present value of the GMIB benefits exceed the 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 features may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive. Direct Variable Annuity Contracts with GMDB and GMIB Features as of March 31, 2021 Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rate) Variable annuity contracts with GMDB features Account Values invested in: General Account $ 15,647 $ 86 $ 53 $ 164 $ 15,950 Separate Accounts 55,738 9,713 3,350 34,329 103,130 Total Account Values $ 71,385 $ 9,799 $ 3,403 $ 34,493 $ 119,080 NAR, gross $ 96 $ 35 $ 1,509 $ 16,402 $ 18,042 NAR, net of amounts reinsured $ 96 $ 33 $ 1,057 $ 16,402 $ 17,588 Average attained age of policyholders (in years) 51.4 68.5 75.0 70.4 55.3 Percentage of policyholders over age 70 11.4 % 49.1 % 70.8 % 55.0 % 20.4 % Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% Variable annuity contracts with GMIB features Account Values invested in: General Account $ — $ — $ 16 $ 212 $ 228 Separate Accounts — — 25,457 36,802 62,259 Total Account Values $ — $ — $ 25,473 $ 37,014 $ 62,487 NAR, gross $ — $ — $ 680 $ 8,598 $ 9,278 NAR, net of amounts reinsured $ — $ — $ 219 $ 7,835 $ 8,054 Average attained age of policyholders (in years) N/A N/A 64.4 70.3 68.1 Weighted average years remaining until annuitization N/A N/A 5.6 0.6 2.4 Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% Assumed Variable Annuity Contracts with GMDB and GMIB Features as of March 31, 2021 Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rates) Variable annuity contracts with GMDB features Reinsured Account Values $ 975 $ 5,294 $ 261 $ 1,164 $ 7,694 Net Amount at Risk assumed $ 3 $ 202 $ 12 $ 103 $ 320 Average attained age of policyholders (in years) 68 73 78 76 73 Percentage of policyholders over age 70 45.7 % 66.0 % 80.4 % 77.2 % 65.6 % Range of contractually specified interest rates (1) N/A N/A 3%-10% 5%-10% 3%-10% Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rates) Variable annuity contracts with GMIB features Reinsured Account Values $ 966 $ 45 $ 229 $ 1,198 $ 2,438 Net Amount at Risk assumed $ 1 $ — $ 19 $ 222 $ 242 Average attained age of policyholders (in years) 72 75 72 70 71 Percentage of policyholders over age 70 65.0 % 63.5 % 61.3 % 55.0 % 59.7 % Range of contractually specified interest rates 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 has now elapsed. For more information about the reinsurance programs of the Company’s GMDB and GMIB exposure, see “Reinsurance” in Note 11 of the 2020 Form 10-K. Separate Accounts Investments by Investment Category Underlying Variable Annuity Contracts with 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 features. The investment performance of the assets impacts the related Account Values and, consequently, the NAR associated with the GMDB and GMIB benefits and guarantees. Because the Company’s variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive. Investment in Variable Insurance Trust Mutual Funds March 31, 2021 December 31, 2020 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 48,656 $ 19,246 $ 46,850 $ 18,771 Fixed income 5,362 2,584 5,506 2,701 Balanced 48,016 40,157 47,053 39,439 Other 1,096 272 1,111 275 Total $ 103,130 $ 62,259 $ 100,520 $ 61,186 Hedging Programs for GMDB, GMIB, GIB and Other Features The Company has a program intended to hedge certain risks associated first with the GMDB feature and 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. 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 derivative gains (losses) in the period in which they occur, and may contribute to income (loss) volatility. 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 change in the NLG liabilities, reflected in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below. Direct Liability (1) Three Months Ended March 31, 2021 2020 (in millions) Beginning balance $ 1,022 $ 898 Paid guarantee benefits (15) (13) Other changes in reserves 43 39 Ending balance $ 1,050 $ 924 _____________ (1) There were no amounts of reinsurance ceded in any period presented. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES U.S. GAAP establishes 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 fair value for those 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 Nonrecurring Basis Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. As of March 31, 2021 and December 31, 2020, the Company recognized impairment adjustments and impairment losses, respectively, to adjust the carrying value of held-for-sale asset and liabilities to their fair value less cost to sell. The value is measured on a nonrecurring basis and categorized within Level 3 of the fair value hierarchy. The fair value was determined using a market approach, estimated based on the negotiated value of the asset and liabilities. See Note 15 of the Notes to Consolidated Financial Statements for additional details of the Held-for-Sale assets and liabilities. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below. Fair Value Measurements as of March 31, 2021 (1) Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, AFS: Corporate (2) $ — $ 51,837 $ 1,255 $ 53,092 U.S. Treasury, government and agency — 16,004 — 16,004 States and political subdivisions — 602 38 640 Foreign governments — 1,074 — 1,074 Residential mortgage-backed (3) — 130 — 130 Asset-backed (4) — 4,614 65 4,679 Commercial mortgage-backed — 1,486 4 1,490 Redeemable preferred stock — 52 — 52 Total fixed maturities, AFS — 75,799 1,362 77,161 Fixed maturities, at fair value using the fair value option — 703 141 844 Other equity investments 402 394 74 870 Trading securities 300 4,482 39 4,821 Other invested assets: Short-term investments — 87 — 87 Assets of consolidated VIEs/VOEs 53 260 11 324 Swaps — (2,139) — (2,139) Credit default swaps — 6 — 6 Futures 1 — — 1 Options — 5,518 — 5,518 Total other invested assets 54 3,732 11 3,797 Cash equivalents 4,308 1,054 — 5,362 Segregated securities — 1,413 — 1,413 GMIB reinsurance contracts asset — — 1,907 1,907 Separate Accounts assets (5) 136,830 2,398 — 139,228 Level 1 Level 2 Level 3 Total (in millions) Total Assets $ 141,894 $ 89,975 $ 3,534 $ 235,403 Liabilities Notes issued by consolidated VIE’s, at fair value using the fair value option (6) $ — $ 506 $ — $ 506 GMxB derivative features’ liability — — 7,824 7,824 SCS, SIO, MSO and IUL indexed features’ liability — 5,297 — 5,297 Liabilities of consolidated VIEs and VOEs 14 6 — 20 Contingent payment arrangements — — 36 36 Total Liabilities $ 14 $ 5,809 $ 7,860 $ 13,683 ______________ (1) Excludes amounts reclassified as HFS except GMxB derivative features’ liability, which is inclusive of amounts reclassified as HFS. (2) Corporate fixed maturities includes both public and private issues. (3) Includes publicly traded agency pass-through securities and collateralized obligations. (4) Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types. (5) Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate. As of March 31, 2021, the fair value of such investments was $365 million. (6) Includes CLO short-term debt of $185 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option Accrued interest payable of $2 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis. Fair Value Measurements as of December 31, 2020 (1) Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, AFS: Corporate (2) $ — $ 56,457 $ 1,702 $ 58,159 U.S. Treasury, government and agency — 16,118 — 16,118 States and political subdivisions — 596 39 635 Foreign governments — 1,103 — 1,103 Residential mortgage-backed (3) — 143 — 143 Asset-backed (4) — 3,591 20 3,611 Commercial mortgage-backed (3) — 1,203 — 1,203 Redeemable preferred stock 404 262 — 666 Total fixed maturities, AFS 404 79,473 1,761 81,638 Fixed maturities, at fair value using the fair value option — 309 80 389 Other equity investments 13 — 71 84 Trading securities 441 5,073 39 5,553 Other invested assets: Short-term investments — 101 1 102 Assets of consolidated VIEs/VOEs 74 231 13 318 Swaps — (99) — (99) Credit default swaps — 5 — 5 Futures (2) — — (2) Options — 4,670 — 4,670 Swaptions — — — — Total other invested assets 72 4,908 14 4,994 Cash equivalents 4,309 297 — 4,606 Segregated securities — 1,753 — 1,753 GMIB reinsurance contracts asset — — 2,488 2,488 Separate Accounts assets (5) 132,698 2,674 1 135,373 Total Assets $ 137,937 $ 94,487 $ 4,454 $ 236,878 Liabilities Notes issued by consolidated VIE’s, at fair value using the fair value option (6) $ — $ 312 $ — $ 312 GMxB derivative features’ liability — — 11,131 11,131 SCS, SIO, MSO and IUL indexed features’ liability — 4,509 — 4,509 Liabilities of consolidated VIEs and VOEs 2 6 — 8 Contingent payment arrangements — — 28 28 Total Liabilities $ 2 $ 4,827 $ 11,159 $ 15,988 ______________ (1) Excludes amounts reclassified as HFS. (2) Corporate fixed maturities includes both public and private issues. (3) Includes publicly traded agency pass-through securities and collateralized obligations. (4) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (5) Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate and commercial mortgages. As of December 31, 2020, the fair value of such investments was $356 million. (6) Accrued interest payable of $1 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis. Public Fixed Maturities The fair values of the Company’s public fixed maturities, including those accounted for using the fair value option 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 maturities 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. Private Fixed Maturities The fair values of the Company’s private fixed maturities, including those accounted for using the fair value option 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. Notes issued by consolidated VIE’s, at fair value using the fair value option These notes are based on the fair values of corresponding fixed maturity collateral. The CLO liabilities are also reduced by the fair value of the beneficial interests the Company retains in the CLO and the carrying value of any beneficial interests that represent compensation for services. As the notes are valued based on the reference collateral, they are classified as Level 2 or 3. See “Fair Value Option” below for additional information. Freestanding Derivative Positions The net fair value of the Company’s freestanding derivative positions as disclosed in Note 4 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 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. Level Classifications of the Company’s Financial Instruments Financial Instruments Classified as Level 1 Investments classified as Level 1 primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Accounts 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. Financial Instruments Classified as Level 2 Investments classified as Level 2 are measured at fair value on a recurring basis and primarily include U.S. government and agency securities, certain corporate debt securities and financial assets and liabilities accounted for using the fair value option, 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. The Company’s 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, EQUI-VEST variable annuity products, IUL and 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 one, three, five or six 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. Financial Instruments Classified as Level 3 The Company’s investments classified as Level 3 primarily include corporate debt securities and financial assets and liabilities accounted for using the fair value option, such as private fixed maturities and asset-backed securities. 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 are fixed maturities with indicative pricing obtained from brokers that otherwise could not be corroborated to market observable data. 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 assets, which are accounted for as derivative contracts. The GMIB reinsurance contract asset and liabilities’ fair value reflects the present value of reinsurance premiums, net of 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 Accounts 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 associated 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 $91 million and $102 million as of March 31, 2021 and December 31, 2020, respectively, to recognize incremental counterparty non-performance risk and reduced the fair value of its GMIB reinsurance contract liabilities by $15 million and $19 million as of March 31, 2021 and December 31, 2020, respectively, to recognize its own incremental non-performance risk. Lapse rates are adjusted at the contract level based on a comparison of the actuarial 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. The Company’s Level 3 liabilities include contingent payment arrangements associated with acquisitions in 2016 and 2019 by AB. At each reporting date, AB estimates the fair values of the contingent consideration expected to be paid based upon revenue and discount rate projections, using unobservable market data inputs, which are included in Level 3 of the valuation hierarchy. The Company’s consolidated VIEs/VOEs hold investments that are classified as Level 3, primarily corporate bonds that are vendor priced with no ratings available, bank loans, non-agency collateralized mortgage obligations and asset-backed securities. Transfers of Financial Instruments Between Levels 2 and 3 During the three months ended March 31, 2021, AFS fixed maturities with fair values of $549 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, AFS fixed maturities with fair value of $2 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 4.5% of total equity as of March 31, 2021. During the three months ended March 31, 2020, AFS fixed maturities with fair values of $126 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, AFS fixed maturities with fair value of $0 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 0.6% of total equity as of March 31, 2020. The tables below present reconciliations for all Level 3 assets and liabilities for the three months ended March 31, 2021 and 2020, respectively. Level 3 Instruments - Fair Value Measurements Corporate State and Asset-backed Redeemable Preferred Stock CMBS Fixed maturities, at FVO (2) (in millions) Balance, January 1, 2021 $ 1,702 $ 39 $ 20 $ — $ — $ 80 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 1 — — — — 3 Investment gains (losses), net (6) — — — — — Subtotal (5) — — — — 3 Other comprehensive income (loss) 9 (1) — — — Purchases 165 — 50 — 4 88 Sales (69) — (5) — — (8) Transfers into Level 3 (1) 2 — — — — 7 Transfers out of Level 3 (1) (549) — — — — (28) Balance, March 31, 2021 $ 1,255 $ 38 $ 65 $ — $ 4 $ 142 Balance, January 1, 2020 $ 1,257 $ 39 $ 100 $ — $ — $ — Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 1 — — — — — Investment gains (losses), net (2) — — — — — Subtotal (1) — — — — — Other comprehensive income (loss) (61) (3) (8) — — — Purchases 61 — 48 — — — Sales (45) — — — — — Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) (26) — (100) — — — Balance, March 31, 2020 $ 1,185 $ 36 $ 40 $ — $ — $ — _____________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) Fixed maturities, at fair value using the fair value option. Other Equity Investments GMIB Reinsurance Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Balance, January 1, 2021 $ 124 $ 2,488 $ 1 $ (11,131) $ (28) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), net 1 — — — — Net derivative gains (losses) (1) (7) — (578) — 3,408 — Total realized and unrealized gains (losses) 1 (578) — 3,408 — Other comprehensive income (loss) — — — — — Purchases (2) 2 11 — (119) (7) Sales (3) (2) (14) — 18 — Settlements (4) — — — — — Change in estimate (5) — — — — — Activity related to consolidated VIEs/VOEs (2) — — — (1) Transfers into Level 3 (6) — — — — — Transfers out of Level 3 (6) — — (1) — — Balance, March 31, 2021 $ 123 $ 1,907 $ — $ (7,824) $ (36) Balance, January 1, 2020 $ 150 $ 2,139 $ — $ (8,502) $ (23) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), net 7 — — — — Net derivative gains (losses) — 726 — (1,199) — Total realized and unrealized gains (losses) 7 726 — (1,199) — Other comprehensive income (loss) (7) — — — — Purchases (2) 2 10 — (111) — Sales (3) (11) (20) — 14 — Settlements (4) — — — — — Change in estimate — (32) — — — Activity related to consolidated VIEs/VOEs (1) — — — (1) Transfers into Level 3 (6) — — — — — Transfers out of Level 3 (6) — — — — — Balance, March 31, 2020 $ 140 $ 2,823 $ — $ (9,798) $ (24) ______________ (1) The Company’s non-performance risk impact of $79 million for the GMxB Derivative Features Liability and $(15) million for the GMIB Reinsurance Contract Asset during the three months ended March 31, 2021, respectively, is recorded through Net derivative gains (losses). (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. (5) For the GMIB reinsurance contract asset, represents a transfer from amounts due from reinsurers. (6) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (7) GMxB Derivative Features Liability excludes a $46 million settlement fee on CS Life reinsurance contract. The table below details changes in unrealized gains (losses) for the three months ended March 31, 2021 and 2020 by category for Level 3 assets and liabilities still held as of March 31, 2021 and 2020, respectively. Change in Unrealized Gains (Losses) for Level 3 Instruments Net Income (Loss) Net Derivative Gains (Losses) OCI (in millions) Held at March 31, 2021: Change in unrealized gains (losses): Fixed maturities, AFS Corporate $ — $ 9 State and political subdivisions — (1) Asset-backed — — Total fixed maturities, AFS — 8 GMIB reinsurance contracts (578) — Separate Account assets — — GMxB derivative features liability 3,408 — Total $ 2,830 $ 8 Held at March 31, 2020: Change in unrealized gains (losses): Fixed maturities, AFS Corporate $ — $ (61) State and political subdivisions — (2) Asset-backed — (8) Total fixed maturities, AFS — (71) GMIB reinsurance contracts 726 — Separate Account assets — — GMxB derivative features liability (1,199) — Total $ (473) $ (71) Quantitative and Qualitative Information about Level 3 Fair Value Measurements The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of March 31, 2021 and December 31, 2020, respectively. Quantitative Information about Level 3 Fair Value Measurements as of March 31, 2021 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (2) (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 40 Matrix pricing model Spread over Benchmark 20 - 245 bps 150 bps 771 Market comparable EBITDA multiples 4.0x - 32.3x 11.4x Other equity investments 2 Market comparable companies Revenue multiple 9.6x - 17.2x 16.0x 39 Discounted Cash Flow Earnings multiple 8.2x GMIB reinsurance contract asset 1,907 Discounted cash flow Lapse rates 0.6%-16% 1.93% Liabilities: AB Contingent Consideration Payable 36 Discounted cash flow Expected revenue growth rates 2.0 % - 135.6 % 9.0 % Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (2) GMIBNLG 7,625 Discounted cash flow Non-performance risk 102.0 bps 0.01%-0.19% 3.44% 1.66% Assumed GMIB Reinsurance Contracts 143 Discounted cash flow Lapse rates 1.1% - 11.1% 1.93% GWBL/GMWB 134 Discounted cash flow Lapse rates Volatility rates - Equity 0.8%-16% 1.93% 24% GIB (76) Discounted cash flow Lapse rates 0.8%-15.6% 1.93% GMAB (2) Discounted cash flow Lapse rates 0.8%-16% 1.93% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. (2) For lapses, withdrawals, and utilizations the rates were weighted by counts; for mortality weighted average rates are shown for all ages combined; and for withdrawals the weighted averages were based on an estimated split of partial withdrawal and dollar-for-dollar withdrawals. Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2020 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 34 Matrix pricing model Spread over benchmark 45 - 195 bps 160 bps 1,148 Market comparable companies EBITDA multiples 3.5x - 33.1x 10.8x Other equity investments 2 Market comparable companies Revenue multiple 9.7x - 26.4x 18.5x 39 Discounted cash flow Earnings multiple 8.2x Fair Valuation Significant Range Weighted Average GMIB reinsurance contract asset 2,488 Discounted cash flow Non-performance risk 43 - 85 bps 50 bps 2.80% Liabilities: AB Contingent Consideration Payable 28 Discounted cash flow Expected revenue growth rates 0.7 % - 50.0 % 4.9 % GMIBNLG 10,713 Discounted cash flow Non-performance risk 96.0 bps 3.19% 1.56% Assumed GMIB Reinsurance Contracts 195 Discounted cash flow Non-performance risk 60 - 133 99 bps GWBL/GMWB 190 Discounted cash flow Non-performance risk Volatility rates - Equity 96.0 bps 1.69% 24% GIB 31 Discounted cash flow Non-performance risk 96.0 bps 1.69% GMAB 2 Discounted cash flow Non-performance risk 96.0 bps 1.69% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. Level 3 Financial Instruments for which Quantitative Inputs are Not Available Certain Privately Placed Debt Securities with Limited Trading Activity Excluded from the tables above as of March 31, 2021 and December 31, 2020, respectively, are approximately $774 million and $743 million of Level 3 fair value measurements of investments for which the underlying quantitative inputs are not developed by the Company |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension Plans Holdings and Equitable Financial Retirement Plans Holdings sponsors the MONY Life Retirement Income Security Plan for Employees and Equitable Financial sponsors the Equitable Retirement Plan (the “Equitable Financial 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. Holdings and Equitable Financial also sponsor certain nonqualified defined benefit plans, including the Equitable Excess Retirement Plan, that provide retirement benefits in excess of the amount permitted under the tax law for the qualified plans. Holdings has assumed primary liability for both plans. Equitable Financial remains secondarily liable for its obligations under the Equitable Financial QP and and would recognize such liability in the event Holdings does not perform. AB Retirement Plans AB 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, average final base salary, and primary Social Security benefits. Net Periodic Pension Expense Components of net periodic pension expense for the Company’s plans were as follows: Three Months Ended March 31, 2021 2020 Service cost $ 2 $ 2 Interest cost 14 23 Expected return on assets (38) (37) Prior Period Svc Cost Amortization (1) — Actuarial (gain) loss 1 — Net amortization 29 27 Impact of settlement — — Net Periodic Pension Expense $ 7 $ 15 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense for the three months ended March 31, 2021 and 2020 was computed using an estimated annual effective tax rate (“ETR”), with discrete items recognized in the period in which they occur. The estimated ETR is revised, as necessary, at the end of successive interim reporting periods. |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
EQUITY | EQUITY Preferred Stock Preferred stock authorized, issued and outstanding was as follows: March 31, 2021 December 31, 2020 Series Shares Authorized Shares Shares Outstanding Shares Authorized Shares Shares Outstanding Series A 32,000 32,000 32,000 32,000 32,000 32,000 Series B 20,000 20,000 20,000 20,000 20,000 20,000 Series C 12,000 12,000 12,000 — — — Total 64,000 64,000 64,000 52,000 52,000 52,000 Series C Fixed Rate Reset Noncumulative Perpetual Preferred Stock On January 8, 2021, Holdings issued 12,000,000 depositary shares, each representing a 1/1,000th interest in a share of the Company’s Series C Fixed Rate Noncumulative Perpetual Preferred Stock (“Series C Preferred Stock”), $1.00 par value per share and liquidation preference of $25,000 per share, for aggregate net cash proceeds of $293 million ($300 million gross). The Series C Preferred Stock ranks senior to Holdings’ common stock and on parity with Holdings’ Series A Preferred Stock and Series B Preferred Stock with respect to the payment of dividends and liquidation. Holdings will pay dividends on the Series C Preferred Stock on a noncumulative basis only when, as and if declared by the Company’s Board of Directors (or a duly authorized committee of the Board) and will be payable quarterly in arrears, at an annual rate equal to the fixed rate of 4.3%. Dividends to Shareholders Dividends declared per share were as follows for the periods indicated: Three months ended March 31, 2021 2020 Series A dividends declared $ 328 $ 394 Series B dividends declared $ — $ — Series C dividends declared $ 200 $ — Common Stock Dividends declared per share of common stock were as follows for the periods indicated: Three Months Ended March 31, 2021 2020 Dividends declared $ 0.17 $ 0.15 Share Repurchase On November 6, 2019, Holdings’ Board of Directors authorized a $400 million share repurchase program with an expiration date of December 31, 2020. On February 26, 2020, Holdings’ Board of Directors authorized an increase of $600 million to the capacity of this program as well as the extension of the term of the program until March 31, 2021. This program was exhausted in January 2021. On October 23, 2020, Holdings’ Board of Directors authorized an incremental $500 million of share repurchase in 2021, subject to the close of the Venerable Transaction. In addition, on February 17, 2021 Holdings announced that its Board of Directors had authorized a $1.0 billion share repurchase program. Under this program, Holdings may, from time to time, purchase up to $1.0 billion of its common stock but it is not obligated to purchase any particular number of shares. Repurchases may be effected in the open market, through derivative, accelerated repurchase and other negotiated transactions and through prearranged trading plans complying with Rule 10b5-1(c) under the Exchange Act. As of March 31, 2021, Holdings had authorized capacity of approximately $701 million remaining in its share repurchase program, which is exclusive of the $500 million related to the Venerable Transaction. Holdings repurchased a total of 14.5 million shares of its common stock at an average price of $29.71 per share through both open market repurchases and an ASR during the three months ended March 31, 2021. During the three months ended March 31, 2021, Holdings repurchased 3.2 million shares of its common stock through open market repurchases. In January 2021, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $170 million of Holdings’ common stock. The ASR terminated during the first quarter of 2021, for a total of 6.3 million shares delivered. Shares repurchased under the ASR were retired upon receipt resulting in a reduction of Holdings’ total issued shares as of March 31, 2021. In March 2021, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $200 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $200 million and received initial delivery of 4.9 million shares. The ASR is scheduled to terminate during the second quarter of 2021, at which time additional shares may be delivered or returned depending on the daily volume-weighted average price of Holdings’ common stock. 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, 2021 and December 31, 2020 follow: March 31, December 31, 2021 2020 (in millions) Unrealized gains (losses) on investments $ 1,644 $ 4,797 Defined benefit pension plans (902) (935) Foreign currency translation adjustments (40) (34) Total accumulated other comprehensive income (loss) 702 3,828 Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest (38) (35) Accumulated other comprehensive income (loss) attributable to Holdings $ 740 $ 3,863 The components of OCI, net of taxes for the three months ended March 31, 2021 and 2020 follow: Three Months Ended March 31, 2021 2020 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ (4,059) $ 1,513 (Gains) losses reclassified into net income (loss) during the period (1) (164) (47) Net unrealized gains (losses) on investments (4,223) 1,466 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 1,070 (36) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $838 and $380) (3,153) 1,430 Change in defined benefit plans: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost 33 28 Change in defined benefit plans (net of deferred income tax expense (benefit) of $9 and $7) 33 28 Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period (6) (21) Foreign currency translation adjustment (6) (21) Total other comprehensive income (loss), net of income taxes (3,126) 1,437 Less: Other comprehensive income (loss) attributable to noncontrolling interest (3) (8) Other comprehensive income (loss) attributable to Holdings $ (3,123) $ 1,445 _______________ (1) See “Reclassification adjustments” in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $44 million, and $12 million for the three months ended March 31, 2021 and 2020, respectively Investment gains and losses reclassified from AOCI to net income (loss) primarily consist of realized gains (losses) on sales and credit losses 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 amortization of net (gains) losses and net prior service cost (credit) recognized as a component of net periodic cost and reported in compensation and benefits in the consolidated statements of income (loss). Amounts presented in the table above are net of tax. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 3 Months Ended |
Mar. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
REDEEMABLE NONCONTROLLING INTEREST | REDEEMABLE NONCONTROLLING INTEREST The changes in the components of redeemable noncontrolling interests are presented in the table that follows: Three Months Ended March 31, 2021 2020 (in millions) Balance, beginning of period $ 143 $ 365 Net earnings (loss) attributable to redeemable noncontrolling interests — (30) Purchase/change of redeemable noncontrolling interests (6) (78) Balance, end of period $ 137 $ 257 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS 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 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, 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 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, 2021, 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 $150 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 August 2015, a 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 Equitable Financial, 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 Equitable Financial implemented the volatility management strategy in violation of applicable law. Plaintiff seeks an award of damages individually and on a classwide basis, and costs and disbursements, including attorneys’ fees, expert witness fees and other costs. 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 Equitable Financial’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. In September 2018, the Second Circuit issued its mandate, following Equitable Financial’s notification to the court that it would not file a petition for writ of certiorari. The case was transferred in December 2018 to the Connecticut Superior Court, Judicial District of Stamford. In December 2018, Equitable Financial sought dismissal of the complaint by filing a motion to strike, which the court granted in August 2019. Plaintiff filed an Amended Class Action Complaint in September 2019. Equitable Financial filed a motion for entry of judgment in October 2019. On August 3, 2020, the court granted Equitable Financial’s motion for entry of judgment. In August 2020, Plaintiff filed a notice of appeal. We are vigorously defending this matter. 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 UL policies subject to Equitable Financial’s COI rate increase. In early 2016, Equitable Financial 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. A second putative class action was filed in Arizona in 2017 and consolidated with the Brach matter. The current consolidated amended class action complaint alleges the following claims: breach of contract; misrepresentations by Equitable Financial in violation of Section 4226 of the New York Insurance Law; violations of New York General Business Law Section 349; and 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. In August 2020, the federal district court issued a decision granting in part Brach Plaintiffs’ motion for class certification. The court certified nationwide breach of contract and Section 4226 classes, and a New York State Section 349 class. Equitable Financial has commenced settlement discussions with the Brach class action plaintiffs through a non-binding mediation process. No assurances can be given about the outcome of that mediation process. Separately, a substantial number of policy owners have opted out of the Brach class action and are not participating in that mediation process. Most have not yet filed suit. Others filed suit previously. They include five other federal actions challenging the COI rate increase that are also pending against Equitable Financial and have been coordinated with the Brach action for the purposes of pre-trial activities. They contain allegations similar to those in the Brach action as well as additional allegations for violations of various states’ consumer protection statutes and common law fraud. Two actions are also pending against Equitable Financial in New York state court. Equitable Financial is vigorously defending each of these matters. Obligations under Funding Agreements Pre-Capitalized Trust Securities (“P-Caps”) In April 2019, pursuant to separate Purchase Agreements among Holdings, Credit Suisse Securities (USA) LLC, as representative of the several initial purchasers, and the Trusts (as defined below), Pine Street Trust I, a Delaware statutory trust (the “2029 Trust”), completed the issuance and sale of 600,000 of its Pre-Capitalized Trust Securities redeemable February 15, 2029 (the “2029 P-Caps”) for an aggregate purchase price of $600 million and Pine Street Trust II, a Delaware statutory trust (the “2049 Trust” and, together with the 2029 Trust, the “Trusts”), completed the issuance and sale of 400,000 of its Pre-Capitalized Trust Securities redeemable February 15, 2049 (the “2049 P-Caps” and, together with the 2029 P-Caps, the “P-Caps”) for an aggregate purchase price of $400 million in each case to qualified institutional buyers in reliance on Rule 144A that are also “qualified purchasers” for purposes of Section 3(c)(7) of the Investment Company Act of 1940, as amended. The P-Caps are an off-balance sheet contingent funding arrangement that, upon Holdings’ election, gives Holdings the right over a ten-year period (in the case of the 2029 Trust) or over a thirty-year period (in the case of the 2049 Trust) to issue senior notes to the Trusts. The Trusts each invested the proceeds from the sale of their P-Caps in separate portfolios of principal and/or interest strips of U.S. Treasury securities. In return, Holdings will pay a semi-annual facility fee to the 2029 Trust and 2049 Trust calculated at a rate of 2.125% and 2.715% per annum, respectively, which will be applied to the unexercised portion of the contingent funding arrangement and Holdings will reimburse the Trusts for certain expenses. The facility fees are recorded in Other operating costs and expenses in the Consolidated Statements of Income (Loss). Federal Home Loan Bank As a member of the FHLB, Equitable Financial has access to collateralized borrowings. It also may issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements would require Equitable Financial to pledge qualified mortgage-backed assets and/or government securities as collateral. Equitable Financial issues short-term funding agreements to the FHLB and uses the funds for asset, liability, and cash management purposes. Equitable Financial issues long-term funding agreements to the FHLB and uses the funds for spread lending purposes. Entering into FHLB membership, borrowings and funding agreements requires the ownership of FHLB stock and the pledge of assets as collateral. Equitable Financial has purchased FHLB stock of $472 million and pledged collateral with a carrying value of $6.7 billion as of March 31, 2021. Funding agreements are reported in policyholders’ account balances in the consolidated balance sheets. For other instruments used for asset/liability and cash management purposes, see “Derivative and offsetting assets and liabilities” included in Note 4. The table below summarizes the Company’s activity of funding agreements with the FHLB. Change in FHLB Funding Agreements during the Three Months Ended March 31, 2021 Outstanding Balance at December 31, 2020 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Outstanding Balance at March 31, 2021 (in millions) Short-term funding agreements: Due in one year or less $ 5,634 $ 16,050 $ 12,724 $ 173 $ — $ 9,133 Long-term funding agreements: Due in years two through five 722 — — (173) — 549 Due in more than five years 534 — — — — 534 Total long-term funding agreements 1,256 — — (173) — 1,083 Total funding agreements (1) $ 6,890 $ 16,050 $ 12,724 $ — $ — $ 10,216 _____________ (1) The $6 million and $7 million difference between the funding agreements carrying value shown in fair value table for March 31, 2021 and December 31, 2020, respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements borrowing rates. Funding Agreement-Backed Notes Program Under the FABN, Equitable Financial may issue funding agreements to a Delaware special purpose statutory trust (the “Trust”) in exchange for the proceeds from issuances of fixed and floating rate medium-term marketable notes issued by the Trust from time to time (the “Trust notes”). The funding agreements have matching interest and maturity payment terms to the applicable Trust notes. The maximum aggregate principal amount of Trust notes permitted to be outstanding at any one time is $5 billion. Funding agreements issued to the Trust are reported in policyholders’ account balances in the consolidated balance sheets. The table below summarizes the Equitable Financial’s activity of funding agreements under the FABN. Change in FABN Funding Agreements during the Three Months Ended March 31, 2021 Outstanding Balance at December 31, 2020 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Outstanding Balance at March 31, (in millions) Short-term funding agreements: Due in one year or less $ — $ — $ — $ — $ — $ — Long-term funding agreements: Due in years two through five 1,150 450 — — — 1,600 Due in more than five years 800 750 — — — 1,550 Total long-term funding agreements 1,950 1,200 — — — 3,150 Total funding agreements (1) $ 1,950 $ 1,200 $ — $ — $ — $ 3,150 _____________ (1) The $18 million and $11 million difference between the funding agreements notional value shown and carrying value table as of March 31, 2021 and December 31, 2020, respectively, reflects the remaining amortization of the issuance cost of the funding agreements. Credit Facilities Holdings Revolving Credit Facility In February 2018, Holdings entered into a $2.5 billion five-year senior unsecured revolving credit facility with a syndicate of banks. The revolving credit facility has a sub-limit of $1.5 billion for the issuance of letters of credit to support the life insurance business reinsured by EQ AZ Life Re and the third-party GMxB variable annuity business retroceded to CS Life RE. As of March 31, 2021, the Company had $150 million and $205 million of undrawn letters of credit issued out of the $1.5 billion sub-limit for CS Life and Equitable Financial, respectively, as beneficiaries. Bilateral Letter of Credit Facilities In February 2018, the Company entered into bilateral letter of credit facilities, each guaranteed by Holdings, with an aggregate principal amount of approximately $1.9 billion, with multiple counterparties. These facilities support the life insurance business reinsured by EQ AZ Life Re. While the facilities with JP Morgan Chase Bank, N.A. and Citibank Europe PLC mature on February 16, 2023, the one with HSBC matures on February 2024 and the rest of the facilities mature on February 16, 2026. Guarantees and Other Commitments The Company provides certain guarantees or commitments to affiliates and others. As of March 31, 2021, these arrangements include commitments by the Company to provide equity financing of $1.3 billion (including $193 million with affiliates) to certain limited partnerships and real estate joint ventures under certain conditions. Management believes the Company will not incur material losses as a result of these commitments. The Company had $17 million of undrawn letters of credit related to reinsurance as of March 31, 2021. The Company had $456 million of commitments under existing mortgage loan agreements as of March 31, 2021. The Company is the obligor under certain structured settlement agreements it had entered into with unaffiliated insurance companies and beneficiaries. To satisfy its obligations under these agreements, the Company owns single premium annuities issued by previously wholly-owned life insurance subsidiaries. The Company has directed payment under these annuities to be made directly to the beneficiaries under the structured settlement agreements. A contingent liability exists with respect to these agreements should the previously wholly-owned subsidiaries be unable to meet their obligations. Management believes the need for the Company to satisfy those obligations is remote. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2021 | |
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. 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 services or products to 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 Protection Solutions segment includes our life insurance and group employee benefits businesses. Our life insurance business offers a variety of VUL, UL 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. 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: (i) certain changes in the fair value of the derivatives and other securities we use to hedge these features; (ii) the effect of benefit ratio unlock adjustments related to extraordinary economic conditions or events such as COVID-19; and (iii) changes in the fair value of the embedded derivatives reflected within variable annuity products’ net derivative results and the impact of these items on DAC amortization on our SCS product; • Investment (gains) losses, which includes credit loss impairments of securities/investments, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances; • 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 the one-time impact of the settlement of the defined benefit obligation; • Other adjustments, which primarily include restructuring costs related to severance and separation, COVID-19 related impacts, net derivative gains (losses) on certain Non-GMxB derivatives, net investment income from certain items including consolidated VIE investments, seed capital mark-to-market adjustments, unrealized gain/losses associated with equity securities and certain legal accruals; 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. Revenues derived from any customer did not exceed 10% of revenues for the three months ended March 31, 2021 and 2020. 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, 2021 and 2020, respectively: Three Months Ended March 31, 2021 2020 (in millions) Net income (loss) attributable to Holdings $ (1,488) $ 5,388 Adjustments related to: Variable annuity product features (1) 2,267 (6,869) Investment (gains) losses (183) (4) Net actuarial (gains) losses related to pension and other postretirement benefit obligations 34 27 Other adjustments (2) (3) (4) 524 695 Income tax expense (benefit) related to above adjustments (5) (555) 1,292 Non-recurring tax items 1 6 Non-GAAP operating earnings $ 600 $ 535 Operating earnings (loss) by segment: Individual Retirement $ 363 $ 373 Group Retirement $ 151 $ 106 Investment Management and Research $ 121 $ 95 Protection Solutions $ 41 $ 49 Corporate and Other (6) $ (76) $ (88) ______________ (1) Includes COVID-19 impact on variable annuity product features due to an assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the three months ended March 31, 2020. (2) Includes COVID-19 impact on other adjustments due to a first quarter 2020 assumption update of $1.0 billion and other COVID-19 related impacts of $51 million for the three months ended March 31, 2020. (3) Include separation costs of $21 million and $32 million for the three months ended March 31, 2021 and 2020, respectively. (4) Includes certain legal accruals related to the COI litigation of $180 million for the three months ended March 31, 2021. No adjustments were made to prior period operating earnings as the impact was immaterial. (5) Includes income taxes of $547 million for the above COVID-19 items for the three months ended March 31, 2020. (6) Includes interest expense and financing fees of $58 million and $56 million for the three months ended March 31, 2021 and 2020, respectively. Segment revenues is 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 includes credit loss impairments of securities/investments, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances; • Other adjustments, which primarily includes net derivative gains (losses) on certain Non-GMxB derivatives and net investment income from certain items including consolidated VIE investments, seed capital mark-to-market adjustments and unrealized gain/losses associated with equity securities. The table below presents segment revenues for the three months ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 2020 (in millions) Segment revenues: Individual Retirement (1) $ 980 $ 1,473 Group Retirement (1) 329 282 Investment Management and Research (2) 1,004 907 Protection Solutions (1) 826 865 Corporate and Other (1) 334 311 Adjustments related to: Variable annuity product features (2,282) 8,345 Investment gains (losses), net 183 4 Other adjustments to segment revenues (3) (221) 422 Total revenues $ 1,153 $ 12,609 ______________ (1) Includes investment expenses charged by AB of $19 million and $18 million for the three months ended March 31, 2021 and 2020, respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of $30 million and $27 million for the three months ended March 31, 2021 and 2020, respectively, are included in segment revenues of the Investment Management and Research segment. (3) Includes COVID-19 impact on other adjustments due to an assumption update of $46 million & other COVID-19 related impacts of $(51) million for the three months ended March 31, 2020 . The table below presents total assets by segment as of March 31, 2021 and 2020: March 31, 2021 December 31, 2020 (in millions) Total assets by segment: Individual Retirement $ 135,009 $ 135,764 Group Retirement 53,050 51,466 Investment Management and Research 10,688 11,179 Protection Solutions 49,246 48,568 Corporate and Other 28,839 28,420 Total assets $ 276,832 $ 275,397 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHAREThe following table presents a reconciliation of Net income (loss) and Weighted-average common shares used in calculating basic and diluted Earnings per common share for the periods indicated: Three Months Ended March 31, 2021 2020 (in millions) Weighted-average common shares outstanding: Weighted-average common shares outstanding — basic 434.2 461.0 Effect of dilutive potential common shares: Employee share awards (1) — 2.5 Weighted-average common shares outstanding — diluted (2) 434.2 463.5 Net income (loss): Net income (loss) $ (1,400) $ 5,425 Less: Net income (loss) attributable to the noncontrolling interest 88 37 Net income (loss) attributable to Holdings (1,488) 5,388 Less: Preferred stock dividends 13 13 Net income (loss) available to Holdings’ common shareholders $ (1,501) $ 5,375 Earnings per common share: Basic $ (3.46) $ 11.66 Diluted $ (3.46) $ 11.60 _____________ (1) Calculated using the treasury stock method. (2) Due to net loss for the three months ended March 31, 2021 , approximately 4.3 million share awards were excluded from the diluted EPS calculation. For the three months ended March 31, 2021 and 2020, 9.1 million and 6.0 million of outstanding stock awards, respectively, were not included in the computation of diluted earnings per share because their effect was anti-dilutive. |
HELD-FOR-SALE
HELD-FOR-SALE | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
HELD-FOR-SALE | HELD-FOR-SALE: Assets and liabilities related to the business classified as HFS are separately reported in the Consolidated Balance Sheets beginning in the period in which the business is classified as HFS. Corporate Solutions Life Reinsurance Company On October 27, 2020, Holdings entered into a Master Transaction Agreement with VIAC, pursuant to which, among other things, VIAC will acquire all of the shares of the capital stock of CS Life. Immediately following the sale of CS Life, Equitable Financial will enter into a coinsurance and modified coinsurance agreement, pursuant to which Equitable Financial will cede to CS Life, on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial in 2006-2008 supported by general account assets (the “Block”). The Block comprised of non-New York “Accumulator” policies containing fixed rate GMIB and/or GMDB guarantees. As a result of the agreement, an estimated impairment loss of $15 million, net of income tax, was recorded for the year ended December 31, 2020 and is included in investment gains (losses), net in the consolidated statements of income (loss). During the quarter ended March 31, 2021, the Company adjusted favorably the estimated impairment for $1 million to reflect an estimated impairment loss of $14 million, net of income tax. The transaction is expected to close in second quarter of 2021 and is subject to regulatory approval and satisfaction of other closing conditions. As of March 31, 2021 and December 31, 2020, respectively, assets of CS Life and CS Life Re to be sold, net of the estimated impairment loss accrual, were $483 million and $470 million which is reported in assets HFS and total liabilities of $270 million and $322 million were reported in liabilities HFS. The assets and liabilities HFS are reported in the Corporate and Other segment. The following table summarizes the components of assets and liabilities HFS on the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 (in millions) Assets: Fixed maturity securities $ 226 235 Trading securities, at fair value 156 189 Other invested assets 1 1 Cash and cash equivalents 92 39 Other assets 26 25 Assets held-for-sale 501 489 Less: Loss accrual (18) (19) Total assets held-for-sale $ 483 $ 470 Liabilities: Future policy benefits and other policyholder's liabilities: $ 267 $ 320 Broker-dealer related payables 1 — Other liabilities 2 2 Total liabilities held-for-sale $ 270 $ 322 |
REVISION OF PRIOR PERIOD FINANC
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS | REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS The Company identified certain errors primarily related to the calculation of actuarially determined insurance contract assets and liabilities that impacted previously issued consolidated financial statements. Management evaluated these adjustments and concluded they were not material to any previously reported quarterly or annual financial statements. In order to improve the consistency and comparability of the financial statements, management revised the financial statements and related disclosures to correct these errors as shown below. Management assessed the materiality of this change within prior period financial statements based upon SEC Staff Accounting Bulletin Number 99, Materiality, which is since codified in ASC 250, Accounting Changes and Error Corrections. The prior period comparative financial statements that are presented herein have been revised. The following tables present line items for prior period financial statements that have been affected by the revision. For these line items, the tables detail the amounts as previously reported, the impact upon those line items due to the revision, and the amounts as currently revised within the financial statements. March 31, 2020 As Previously Impact of Revisions As Revised (in millions) Consolidated Balance Sheets: Assets: Investments: Other invested assets 2,112 12 2,124 Total investments 96,216 12 96,228 Deferred policy acquisition costs 4,809 (112) 4,697 Total Assets $ 240,781 $ (100) $ 240,681 Liabilities: Future policy benefits and other policyholders’ liabilities 37,968 33 38,001 Current and deferred income taxes 2,355 (28) 2,327 Total Liabilities $ 218,884 $ 5 $ 218,889 EQUITY Retained earnings 17,112 (105) 17,007 Total equity attributable to Holdings 20,086 (105) 19,981 Total Equity 21,640 (105) 21,535 Total Liabilities, Redeemable Noncontrolling Interest and Equity $ 240,781 $ (100) $ 240,681 Three Months Ended March 31, 2020 As Previously Impact of Revisions As Revised (in millions) Consolidated Statements of Income (Loss) REVENUES Policy charges and fee income $ 991 $ 5 $ 996 Net derivative gains (losses) 9,401 (1) 9,400 Net investment income (loss) 616 13 629 Other Income 156 (1) 155 Total revenues 12,593 16 12,609 BENEFITS AND OTHER DEDUCTIONS Policyholders' benefits 2,788 (12) 2,776 Amortization of deferred policy acquisition costs 1,248 55 1,303 Other operating costs and expenses 437 1 438 Total benefits and other deductions 5,706 44 5,750 Income (loss) from continuing operations, before income taxes 6,887 (28) 6,859 Income tax (expense) benefit (1,440) 6 (1,434) Net income (loss) 5,447 (22) 5,425 Net income (loss) attributable to Holdings $ 5,410 $ (22) $ 5,388 EARNINGS PER COMMON SHARE Basic $ 11.71 $ (0.05) $ 11.66 Diluted $ 11.65 $ (0.05) $ 11.60 Three Months Ended March 31, 2020 As Previously Impact of Revisions As Revised (in millions) Consolidated Statements of Comprehensive Income (Loss) Net income (loss) $ 5,447 $ (22) $ 5,425 Change in unrealized gains (losses), net of reclassification adjustment 1,434 (4) 1,430 Other comprehensive income 1,441 (4) 1,437 Comprehensive income (loss) 6,888 (26) 6,862 Comprehensive income (loss) attributable to Holdings $ 6,859 $ (26) $ 6,833 Three Months Ended March 31, 2020 As Previously Impact of Revisions As Revised (in millions) Consolidated Statement of Equity: Retained earnings, beginning of year $ 11,827 $ (83) $ 11,744 Net income (loss) attributable to Holdings 5,410 (22) 5,388 Retained earnings, end of period $ 17,112 $ (105) $ 17,007 Accumulated other comprehensive income (loss), beginning of year $ 840 $ 4 $ 844 Other comprehensive income (loss) 1,449 (4) 1,445 Accumulated other comprehensive income (loss), end of period $ 2,289 $ — $ 2,289 Total Holdings’ equity, end of period $ 20,086 $ (105) $ 19,981 Total equity, end of period $ 21,640 $ (105) $ 21,535 Three Months Ended March 31, 2020 As Previously Impact of Revisions As Revised (in millions) Consolidated Statement of Cash Flows: Cash flows from operating activities: Net income (loss) $ 5,447 $ (22) $ 5,425 Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: Policy charges and fee income (991) (5) (996) Net derivative (gains) losses (9,401) 1 (9,400) Amortization and depreciation 1,275 55 1,330 Future policy benefits 1,936 (11) 1,925 Current and deferred income taxes 1,425 (5) 1,420 Other, net (448) (1) (449) Net cash provided by (used in) operating activities $ (582) $ 12 $ (570) Cash flows from financing activities: Change in collateralized pledged assets 44 (1) 43 Change in collateralized pledged liabilities 657 (11) 646 Net cash provided by (used in) financing activities $ 2,334 $ (12) $ 2,322 Cash and cash equivalents, end of period $ 10,315 $ — $ 10,315 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Funding Agreement-Backed Notes Pursuant to the FABN program discussed in Note 12, in April 2021, Equitable Financial issued a $350 million funding agreement to the Trust with a fixed interest rate of 0.50% per annum and a maturity date of April 6, 2023. In addition, on the same date Equitable Financial issued a $650 million funding agreement to the Trust with a floating interest rate equal to the compounded Secured Overnight Financing Rate (“SOFR”) plus 39 basis points per annum which matures |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The unaudited interim consolidated financial statements (the “consolidated financial statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to the Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). 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, with the exception of the Company’s update of its interest rate assumption and adoption of new economic scenario generator as further described below in Assumption Updates and Model Changes. 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, 2020. The accompanying unaudited consolidated financial statements present the consolidated results of operations, financial condition, and cash flows of the Company and its subsidiaries and those investment companies, partnerships and joint ventures in which the Company has control and a majority economic interest as well as those variable interest entities (“VIEs”) that meet the requirements for consolidation. All significant intercompany transactions and balances have been eliminated in consolidation. The terms “first quarter 2021” and “first quarter 2020” refer to the three months ended March 31, 2021 and 2020, respectively. The terms “first three months of 2021” and “first three months of 2020” refer to the three months ended March 31, 2021 and 2020, respectively. |
Adoption of New Accounting Pronouncements and Future Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements Description Effect on the Financial Statement or Other Significant Matters ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as clarifying and amending existing guidance. On January 1, 2021, the Company adopted the new accounting standards update. The new guidance is applied either on a retrospective, modified retrospective or prospective basis based on the items to which the amendments relate. The adoption did not have a material impact on the Company’s consolidated financial position, results of operations and cash flows as of the adoption date. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. The Company is currently evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements, however the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls. 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. Interest rates used to discount the liability will need to be updated quarterly using an upper medium grade (low credit risk) fixed-income instrument yield. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. The ASU requires MRBs to be measured at fair value with changes in value attributable to changes in instrument-specific credit risk recognized in OCI. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs will be required to be written off for unexpected contract terminations but will not be subject to impairment testing. 4. Expanded footnote disclosures. The ASU requires additional disclosures including disaggregated roll-forwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, separate account liabilities and deferred acquisition costs. Companies will also be required to disclose information about significant inputs, judgements, assumptions and methods used in measurement. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. ASU2020-04 : Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this ASU provide optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This ASU is effective as of March 12, 2020 through December 31, 2022. The Company is currently assessing the applicability of the optional expedients and exceptions provided under the ASU. Management is evaluating the impact that the adoption of this guidance will have on the Company’s consolidated financial statements. |
Investments | Investments The carrying values of fixed maturities classified as AFS are reported at fair value. Changes in fair value are reported in OCI, net of allowance for credit losses, policy related amounts and deferred income taxes. Changes in credit losses are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include REIT, perpetual preferred stock and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. Effective January 1, 2021, the Company began classifying certain preferred stock as equity securities to better reflect the economics and nature of these securities. These preferred stock securities are reported in other equity investments. The Company determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. The Company’s management, with the assistance of its investment advisors, evaluates AFS debt securities that experienced a decline in fair value below amortized cost for credit losses which are evaluated in accordance with the new financial instruments credit losses guidance. Integral to this review is an assessment made each quarter, on a security-by-security basis, by the IUS Committee, of various indicators of credit deterioration to determine whether the investment security has experienced a credit loss. This assessment includes, but is not limited to, consideration of the severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, and the financial strength, liquidity and continued viability of the issuer. The Company recognizes an allowance for credit losses on AFS debt securities with a corresponding adjustment to earnings rather than a direct write down that reduces the cost basis of the investment, and credit losses are limited to the amount by which the security’s amortized cost basis exceeds its fair value. Any improvements in estimated credit losses on AFS debt securities are recognized immediately in earnings. Management does not use the length of time a security has been in an unrealized loss position as a factor, either by itself or in combination with other factors, to conclude that a credit loss does not exist. When the Company determines that there is more than 50% likelihood that it is not going to recover the principal and interest cash flows related to an AFS debt security, the security is placed on nonaccrual status and the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in a timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable. If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting allowance is recognized in income (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value. Write-offs of AFS debt securities are recorded when all or a portion of a financial asset is deemed uncollectible. Full or partial write-offs are recorded as reductions to the amortized cost basis of the AFS debt security and deducted from the allowance in the period in which the financial assets are deemed uncollectible. The Company elected to reverse accrued interest deemed uncollectible as a reversal of interest income. In instances where the Company collects cash that it has previously written off, the recovery will be recognized through earnings or as a reduction of the amortized cost basis for interest and principal, respectively. COLI has been purchased by the Company and certain subsidiaries on the lives of certain key employees and the Company and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. As of March 31, 2021 and December 31, 2020, the carrying value of COLI was $992 million and $992 million, respectively, and is reported in Other invested assets in the consolidated balance sheets. |
Accounting and Consolidation of VIEs | Accounting and Consolidation of VIEs For all new investment products and entities developed by the Company, the Company first determines whether the entity is a VIE, which involves determining an entity’s variability and variable interests, identifying the holders of the equity investment at risk and assessing the five characteristics of a VIE. Once an entity has been determined to be a VIE, the Company then determines whether it is the primary beneficiary of the VIE based on its beneficial interests. If the Company is deemed to be the primary beneficiary of the VIE, then the Company consolidates the entity. Management of the Company reviews quarterly its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client AUM to determine the entities that the Company is required to consolidate under this guidance. These entities include certain mutual fund products, hedge funds, structured products, group trusts, collective investment trusts and limited partnerships. 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. Consolidated VIEs Consolidated CLOs The Company is the investment manager of certain asset-backed investment vehicles, commonly referred to as CLOs, and certain other vehicles for which the Company earns fee income for investment management services. The Company may sell or syndicate investments through these vehicles, principally as part of the strategic investing activity as part of its investment management businesses. Additionally, the Company may invest in securities issued by these vehicles which are eliminated in consolidation of the CLO. As of March 31, 2021 and December 31, 2020, respectively, Equitable Financial holds $41 million and $38 million of equity interests in the CLO. The Company consolidated the CLO as of March 31, 2021 and December 31, 2020 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority ownership of AB, which functions as the CLO loan manager. The assets of the CLO are legally isolated from the Company’s creditors and can only be used to settle obligations of the CLO. The liabilities of the CLO are non-recourse to the Company and the Company has no obligation to satisfy the liabilities of the CLO. As of March 31, 2021, Equitable Financial holds $81 million of equity interests in a newly formed SPE established to purchase loans from the market in anticipation of a new CLO transaction. The Company has determined it will consolidate the SPE as of March 31, 2021 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority ownership of AB, which functions as the SPE loan manager. Resulting from this consolidation in the Company’s consolidated balance sheets are fixed maturities, at fair value using the fair value option with total assets of $844 million and $389 million notes issued by consolidated variable interest entities, at fair value using the fair value option with total liabilities of $323 million and $313 million at March 31, 2021 and December 31, 2020, respectively . The unpaid outstanding principal balance of the notes and short-term borrowing is $547 million and $362 million at March 31, 2021 and December 31, 2020, Consolidated Limited Partnerships As of March 31, 2021 and December 31, 2020, the Company consolidated one private equity limited partnership for which it was identified as the primary beneficiary under the VIE model. Included in other invested assets in the Company’s consolidated balance sheets at March 31, 2021 and December 31, 2020 are total assets of $10 million and $12 million, respectively related to this VIE. Consolidated AB-Sponsored Investment Funds Included in the Company’s consolidated balance sheet as of March 31, 2021 and December 31, 2020 are assets of $290 million and $284 million, liabilities of $14 million and $8 million, and redeemable noncontrolling interests of $64 million and $83 million, respectively, associated with the consolidation of AB-sponsored investment funds under the VIE model. Also included in the Company’s consolidated balance sheets as of March 31, 2021 and December 31, 2020 are assets of $78 million and $68 million, liabilities of $29 million and $23 million, and redeemable noncontrolling interests of $24 million and $20 million, respectively, 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 in the Company’s consolidated balance sheets; ownership interests not held by the Company relating to consolidated VIEs and VOEs are presented either as redeemable or non-redeemable noncontrolling interests, as appropriate. Redeemable noncontrolling interests are presented in mezzanine equity and non-redeemable noncontrolling interests are presented within permanent equity. The Company is not required to provide financial support to these AB-sponsored investment funds, and only the assets of such funds are available to settle each fund’s own liabilities. Non-Consolidated VIEs As of March 31, 2021 and December 31, 2020, respectively, the Company held approximately $1.5 billion and $1.4 billion of investment assets in the form of equity interests issued by non-corporate legal entities determined under the guidance to be VIEs, such as limited partnerships and limited liability companies, including CLOs, 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 sheets as other equity investments and applies the equity method of accounting for these positions. The net assets of these non-consolidated VIEs are approximately $173.1 billion and $165.9 billion as of March 31, 2021 and December 31, 2020, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $1.5 billion and $1.4 billion and approximately $1.3 billion and $1.2 billion of unfunded commitments as of March 31, 2021 and December 31, 2020, respectively. The Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. Non-Consolidated AB-Sponsored Investment Products As of March 31, 2021 and December 31, 2020, the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $70.9 billion and $73.4 billion, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $7 million as of March 31, 2021 and December 31, 2020. The Company has no further commitments to or economic interest in these VIEs. |
Fair Value Measurement | U.S. GAAP establishes 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 fair value for those 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 Nonrecurring Basis |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Adoption of New Accounting Pronouncements Description Effect on the Financial Statement or Other Significant Matters ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as clarifying and amending existing guidance. On January 1, 2021, the Company adopted the new accounting standards update. The new guidance is applied either on a retrospective, modified retrospective or prospective basis based on the items to which the amendments relate. The adoption did not have a material impact on the Company’s consolidated financial position, results of operations and cash flows as of the adoption date. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. The Company is currently evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements, however the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial condition, results of operations, cash flows and required disclosures, as well as processes and controls. 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. Interest rates used to discount the liability will need to be updated quarterly using an upper medium grade (low credit risk) fixed-income instrument yield. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. The ASU requires MRBs to be measured at fair value with changes in value attributable to changes in instrument-specific credit risk recognized in OCI. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs will be required to be written off for unexpected contract terminations but will not be subject to impairment testing. 4. Expanded footnote disclosures. The ASU requires additional disclosures including disaggregated roll-forwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, separate account liabilities and deferred acquisition costs. Companies will also be required to disclose information about significant inputs, judgements, assumptions and methods used in measurement. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. ASU2020-04 : Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this ASU provide optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This ASU is effective as of March 12, 2020 through December 31, 2022. The Company is currently assessing the applicability of the optional expedients and exceptions provided under the ASU. Management is evaluating the impact that the adoption of this guidance will have on the Company’s consolidated financial statements. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Fixed Maturities by Classification | The following tables provide information relating to the Company’s fixed maturities classified as AFS. AFS Fixed Maturities by Classification Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) March 31, 2021 (4) Fixed Maturities: Corporate (1) $ 50,988 $ 19 $ 2,775 $ 652 $ 53,092 U.S. Treasury, government and agency 14,817 — 1,362 175 16,004 States and political subdivisions 569 — 78 7 640 Foreign governments 1,065 — 47 38 1,074 Residential mortgage-backed (2) 119 — 11 — 130 Asset-backed (3) 4,653 — 28 2 4,679 Commercial mortgage-backed 1,482 — 26 18 1,490 Redeemable preferred stock (5) 41 — 11 — 52 Total at March 31, 2021 $ 73,734 $ 19 $ 4,338 $ 892 $ 77,161 December 31, 2020 (4) Fixed Maturities: Corporate (1) $ 53,160 $ 13 $ 5,104 $ 92 $ 58,159 U.S. Treasury, government and agency 12,675 — 3,448 5 16,118 States and political subdivisions 535 — 100 — 635 Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Foreign governments 1,011 — 98 6 1,103 Residential mortgage-backed (2) 130 — 13 — 143 Asset-backed (3) 3,587 — 29 5 3,611 Commercial mortgage-backed 1,148 — 55 — 1,203 Redeemable preferred stock 621 — 48 3 666 Total at December 31, 2020 $ 72,867 $ 13 $ 8,895 $ 111 $ 81,638 ______________ (1) Corporate fixed maturities include both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types. (4) Excludes amounts reclassified as HFS. (5) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments). |
Contractual Maturities of Available-for-Sale Fixed Maturities | The contractual maturities of AFS fixed maturities as of March 31, 2021 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. Contractual Maturities of AFS Fixed Maturities Amortized Cost (Less Allowance for Credit Losses) Fair Value (in millions) March 31, 2021 Contractual maturities: Due in one year or less $ 2,645 $ 2,665 Due in years two through five 16,460 17,279 Due in years six through ten 19,385 20,464 Due after ten years 28,930 30,402 Subtotal 67,420 70,810 Residential mortgage-backed 119 130 Asset-backed 4,653 4,679 Commercial mortgage-backed 1,482 1,490 Redeemable preferred stock 41 52 Total at March 31, 2021 $ 73,715 $ 77,161 |
Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities | The following table shows proceeds from sales, gross gains (losses) from sales and credit losses for AFS fixed maturities for the three months ended March 31, 2021 and 2020: Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities Three Months Ended March 31, 2021 2020 (in millions) Proceeds from sales $ 7,209 $ 1,820 Gross gains on sales $ 291 $ 70 Gross losses on sales $ (116) $ (6) Credit losses $ (6) $ (2) |
AFS Fixed Maturities - Credit Loss Impairments | The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts. AFS Fixed Maturities - Credit Loss Impairments Three Months Ended March 31, 2021 2020 (in millions) Balance, beginning of period $ 32 $ 21 Previously recognized impairments on securities that matured, paid, prepaid or sold — — Recognized impairments on securities impaired to fair value this period (1) — — Credit losses recognized this period on securities for which credit losses were not previously recognized 2 2 Additional credit losses this period on securities previously impaired 4 — Increases due to passage of time on previously recorded credit losses — — Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior) — — Balance at March 31, $ 38 $ 23 ______________ (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 Gains (Losses) on Available-for-Sale Fixed Maturities | The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI. Net Unrealized Gains (Losses) on AFS Fixed Maturities Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, January 1, 2021 $ 8,811 $ (1,548) $ (1,065) $ (1,302) $ 4,896 Net investment gains (losses) arising during the period (5,129) — — — (5,129) Reclassification adjustment: Included in Net income (loss) (175) — — — (175) Excluded from Net income (loss) — — — — — Other (1) (33) — — — (33) Impact of net unrealized investment gains (losses) — 599 757 836 2,192 Net unrealized investment gains (losses) excluding credit losses 3,474 (949) (308) (466) 1,751 Net unrealized investment gains (losses) with credit losses (8) 2 1 1 (4) Balance, March 31, 2021 $ 3,466 $ (947) $ (307) $ (465) $ 1,747 Balance, January 1, 2020 $ 3,453 $ (894) $ (189) $ (497) $ 1,873 Net investment gains (losses) arising during the period 1,922 — — — 1,922 Reclassification adjustment: Included in Net income (loss) (62) — — — (62) Excluded from Net income (loss) — — — — — Impact of net unrealized investment gains (losses) — (28) (165) (351) (544) Net unrealized investment gains (losses) excluding credit losses 5,313 (922) (354) (848) 3,189 Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Net unrealized investment gains (losses) with credit losses (7) 1 1 1 (4) Balance, March 31, 2020 $ 5,306 $ (921) $ (353) $ (847) $ 3,185 ______________ (1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments). |
Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities | The following tables disclose the fair values and gross unrealized losses of the 1,663 issues as of March 31, 2021 and the 565 issues as of December 31, 2020 that are not deemed to have credit losses, 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. AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded 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, 2021: (1) Fixed Maturities: Corporate $ 12,951 $ 611 $ 468 $ 30 $ 13,419 $ 641 U.S. Treasury, government and agency 5,043 175 — — 5,043 175 States and political subdivisions 117 7 — — 117 7 Foreign governments 424 35 29 4 453 39 Asset-backed 649 2 17 — 666 2 Commercial mortgage-backed 778 18 — — 778 18 Redeemable preferred stock (2) — — — — — — Total at March 31, 2021 $ 19,962 $ 848 $ 514 $ 34 $ 20,476 $ 882 December 31, 2020: (1) Fixed Maturities: Corporate $ 2,990 $ 53 $ 337 $ 33 $ 3,327 $ 86 U.S. Treasury, government and agency 885 5 — — 885 5 Foreign governments 153 2 21 4 174 6 Asset-backed 809 4 76 1 885 5 Redeemable preferred stock 53 1 11 2 64 3 Total at December 31, 2020 $ 4,890 $ 65 $ 445 $ 40 $ 5,335 $ 105 ______________ (1) Excludes amounts reclassified as HFS. (2) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments). |
Financing Receivable, Allowance for Credit Loss | The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 77 $ 33 Current-period provision for expected credit losses (7) 11 Write-offs charged against the allowance — — Recoveries of amounts previously written off — (1) Net change in allowance (7) 10 Balance, end of period $ 70 $ 43 Agricultural mortgages: Balance, beginning of period $ 4 $ 3 Current-period provision for expected credit losses — — Write-offs charged against the allowance — — Recoveries of amounts previously written off — — Net change in allowance — — Balance, end of period $ 4 $ 3 Total allowance for credit losses $ 74 $ 46 |
Financing Receivable Credit Quality Indicators | The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of March 31, 2021 and December 31, 2020. LTV Ratios (1) March 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ — $ — $ — $ 324 $ 789 $ 1,113 50% - 70% 313 1,294 364 803 657 3,681 7,112 70% - 90% — 321 456 452 220 668 2,117 90% plus — — — 12 5 290 307 Total commercial $ 313 $ 1,615 $ 820 $ 1,267 $ 1,206 $ 5,428 $ 10,649 Agricultural: 0% - 50% $ 51 $ 218 $ 131 $ 152 $ 140 $ 853 $ 1,545 50% - 70% 41 275 120 158 101 444 1,139 70% - 90% — — — 3 — 18 21 90% plus — — — — — — — Total agricultural $ 92 $ 493 $ 251 $ 313 $ 241 $ 1,315 $ 2,705 Total mortgage loans: 0% - 50% $ 51 $ 218 $ 131 $ 152 $ 464 $ 1,642 $ 2,658 50% - 70% 354 1,569 484 961 758 4,125 8,251 70% - 90% — 321 456 455 220 686 2,138 90% plus — — — 12 5 290 307 Total mortgage loans $ 405 $ 2,108 $ 1,071 $ 1,580 $ 1,447 $ 6,743 $ 13,354 Debt Service Coverage Ratios (2 ) March 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 226 $ 1,230 $ 492 $ 772 $ 268 $ 3,336 $ 6,324 1.8x to 2.0x — 227 90 118 378 438 1,251 1.5x to 1.8x — 98 138 187 424 758 1,605 1.2x to 1.5x — 60 56 154 81 699 1,050 1.0x to 1.2x 87 — 44 — — 124 255 Less than 1.0x — — — 36 55 73 164 Total commercial $ 313 $ 1,615 $ 820 $ 1,267 $ 1,206 $ 5,428 $ 10,649 Agricultural: Greater than 2.0x $ 11 $ 67 $ 26 $ 24 $ 34 $ 233 $ 395 1.8x to 2.0x 19 37 31 24 15 94 220 1.5x to 1.8x 25 117 33 39 43 249 506 1.2x to 1.5x 22 182 118 124 82 428 956 1.0x to 1.2x 15 86 34 91 66 267 559 Less than 1.0x — 4 9 11 1 44 69 Total agricultural $ 92 $ 493 $ 251 $ 313 $ 241 $ 1,315 $ 2,705 Total mortgage loans: Greater than 2.0x $ 237 $ 1,297 $ 518 $ 796 $ 302 $ 3,569 $ 6,719 1.8x to 2.0x 19 264 121 142 393 532 1,471 1.5x to 1.8x 25 215 171 226 467 1,007 2,111 1.2x to 1.5x 22 242 174 278 163 1,127 2,006 1.0x to 1.2x 102 86 78 91 66 391 814 Less than 1.0x — 4 9 47 56 117 233 Total mortgage loans $ 405 $ 2,108 $ 1,071 $ 1,580 $ 1,447 $ 6,743 $ 13,354 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. LTV Ratios (1) December 31, 2020 Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ — $ — $ 324 $ 187 $ 505 $ 1,016 50% - 70% 1,294 357 803 656 2,190 1,697 6,997 70% - 90% 321 457 452 219 203 538 2,190 90% plus — — 12 5 — 288 305 Total commercial $ 1,615 $ 814 $ 1,267 $ 1,204 $ 2,580 $ 3,028 $ 10,508 Agricultural: 0% - 50% $ 218 $ 135 $ 169 $ 157 $ 236 $ 652 $ 1,567 50% - 70% 277 129 161 102 124 351 1,144 70% - 90% — — 3 — — 18 21 90% plus — — — — — — — Total agricultural $ 495 $ 264 $ 333 $ 259 $ 360 $ 1,021 $ 2,732 Total mortgage loans: 0% - 50% $ 218 $ 135 $ 169 $ 481 $ 423 $ 1,157 $ 2,583 50% - 70% 1,571 486 964 758 2,314 2,048 8,141 70% - 90% 321 457 455 219 203 556 2,211 90% plus — — 12 5 — 288 305 Total mortgage loans $ 2,110 $ 1,078 $ 1,600 $ 1,463 $ 2,940 $ 4,049 $ 13,240 Debt Service Coverage Ratios (2) December 31, 2020 Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 1,230 $ 492 $ 772 $ 268 $ 1,959 $ 1,230 $ 5,951 1.8x to 2.0x 227 83 118 378 184 329 1,319 1.5x to 1.8x 98 138 187 479 437 616 1,955 1.2x to 1.5x 60 57 154 79 — 658 1,008 1.0x to 1.2x — 44 — — — 123 167 Less than 1.0x — — 36 — — 72 108 Total commercial $ 1,615 $ 814 $ 1,267 $ 1,204 $ 2,580 $ 3,028 $ 10,508 Agricultural: Greater than 2.0x $ 67 $ 26 $ 36 $ 38 $ 71 $ 167 $ 405 1.8x to 2.0x 38 35 14 15 20 82 204 1.5x to 1.8x 117 38 41 45 52 209 502 1.2x to 1.5x 183 120 141 90 142 313 989 1.0x to 1.2x 86 35 93 70 57 233 574 Less than 1.0x 4 10 8 1 18 17 58 Total agricultural $ 495 $ 264 $ 333 $ 259 $ 360 $ 1,021 $ 2,732 Total mortgage loans: Greater than 2.0x $ 1,297 $ 518 $ 808 $ 306 $ 2,030 $ 1,397 $ 6,356 1.8x to 2.0x 265 118 132 393 204 411 1,523 1.5x to 1.8x 215 176 228 524 489 825 2,457 1.2x to 1.5x 243 177 295 169 142 971 1,997 1.0x to 1.2x 86 79 93 70 57 356 741 Less than 1.0x 4 10 44 1 18 89 166 Total mortgage loans $ 2,110 $ 1,078 $ 1,600 $ 1,463 $ 2,940 $ 4,049 $ 13,240 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. The following tables provide information relating to the LTV and DSC ratios for commercial and agricultural mortgage loans as of March 31, 2021 and December 31, 2020. 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 LTV and DSC Ratios DSC Ratio (2) (3) LTV Ratio (1) (3): Greater than 2.0x 1.8x to 1.5x to 1.2x to 1.0x to Less than Total (in millions) March 31, 2021: Mortgage loans: Commercial: 0% - 50% $ 953 $ — $ 160 $ — $ — $ — $ 1,113 50% - 70% 4,370 877 1,156 597 112 — 7,112 70% - 90% 844 374 289 376 143 91 2,117 90% plus 157 — — 77 — 73 307 Total commercial $ 6,324 $ 1,251 $ 1,605 $ 1,050 $ 255 $ 164 $ 10,649 Agricultural: 0% - 50% $ 297 $ 99 $ 301 $ 510 $ 300 $ 38 $ 1,545 50% - 70% 98 119 205 446 259 12 1,139 70% - 90% — 2 — — — 19 21 90% plus — — — — — — — Total agricultural $ 395 $ 220 $ 506 $ 956 $ 559 $ 69 $ 2,705 Total mortgage loans: 0% - 50% $ 1,250 $ 99 $ 461 $ 510 $ 300 $ 38 $ 2,658 50% - 70% 4,468 996 1,361 1,043 371 12 8,251 70% - 90% 844 376 289 376 143 110 2,138 90% plus 157 — — 77 — 73 307 Total mortgage loans $ 6,719 $ 1,471 $ 2,111 $ 2,006 $ 814 $ 233 $ 13,354 DSC Ratio (2) (3) LTV Ratio (1) (3): Greater than 2.0x 1.8x to 1.5x to 1.2x to 1.0x to Less than Total (in millions) December 31, 2020: Mortgage loans: Commercial: 0% - 50% $ 856 $ — $ 160 $ — $ — $ — $ 1,016 50% - 70% 4,095 870 1,452 555 25 — 6,997 70% - 90% 844 449 343 376 142 36 2,190 90% plus 156 — — 77 — 72 305 Total commercial $ 5,951 $ 1,319 $ 1,955 $ 1,008 $ 167 $ 108 $ 10,508 Agricultural: 0% - 50% $ 297 $ 108 $ 291 $ 520 $ 317 $ 34 $ 1,567 50% - 70% 108 94 211 450 257 24 1,144 70% - 90% — 2 — 19 — — 21 90% plus — — — — — — — Total agricultural $ 405 $ 204 $ 502 $ 989 $ 574 $ 58 $ 2,732 Total mortgage loans: 0% - 50% $ 1,153 $ 108 $ 451 $ 520 $ 317 $ 34 $ 2,583 50% - 70% 4,203 964 1,663 1,005 282 24 8,141 70% - 90% 844 451 343 395 142 36 2,211 90% plus 156 — — 77 — 72 305 Total mortgage loans $ 6,356 $ 1,523 $ 2,457 $ 1,997 $ 741 $ 166 $ 13,240 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. |
Age Analysis Of Past Due Mortgage Loans | The following table provides information relating to the aging analysis of past-due mortgage loans as of March 31, 2021 and December 31, 2020, respectively. Age Analysis of Past Due Mortgage Loans (1) Accruing Loans Non-accruing Loans Total Loans Non-accruing Loans with No Allowance Interest Income on Non-accruing Loans Past Due Current Total 30-59 Days 60-89 Days 90 Days or More Total (in millions) March 31, 2021: Mortgage loans: Commercial $ — $ — $ — $ — $ 10,649 $ 10,649 $ — $ 10,649 $ — $ — Agricultural 10 4 80 94 2,611 2,705 — 2,705 — — Total $ 10 $ 4 $ 80 $ 94 $ 13,260 $ 13,354 $ — $ 13,354 $ — $ — December 31, 2020: Mortgage loans: Commercial $ 162 $ — $ — $ 162 $ 10,346 $ 10,508 $ — $ 10,508 $ — $ — Agricultural 76 7 29 112 2,620 2,732 — 2,732 — — Total $ 238 $ 7 $ 29 $ 274 $ 12,966 $ 13,240 $ — $ 13,240 $ — $ — _______________ |
Net Investment Income (Loss) from Equity and Trading Securities | The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three months ended March 31, 2021. Unrealized and Realized Gains (Losses) from Equity Securities (1) Three Months Ended March 31, 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 19 Net investment gains (losses) recognized on securities sold during the period (6) Unrealized and realized gains (losses) on equity securities $ 13 ______________ (1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 Significant Accounting Policies – Investments) The table below shows a breakdown of net investment income (loss) from trading securities during the three months ended March 31, 2021 and 2020. Net Investment Income (Loss) from Trading Securities Three Months Ended March 31, 2021 2020 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (70) $ (186) Net investment gains (losses) recognized on securities sold during the period 29 4 Unrealized and realized gains (losses) on trading securities (41) (182) Interest and dividend income from trading securities 38 51 Net investment income (loss) from trading securities $ (3) $ (131) |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 March 31, 2021 Three Months Ended March 31, 2021 Fair Value Notional Amount Derivative Assets Derivative Liabilities Net Derivative Gains (Losses) (2) (in millions) Derivative instruments: Freestanding derivatives (1): Equity contracts: Futures $ 5,397 $ 2 $ 1 $ (288) Swaps 19,308 5 3 (1,271) Options 43,207 9,764 4,246 1,145 Interest rate contracts: Swaps 13,980 3 2,144 (2,915) Futures 15,096 — — (949) Swaptions — — — — Credit contracts: Credit default swaps 1,129 18 12 — Other freestanding contracts: Foreign currency contracts 576 9 9 1 Margin — 58 — — Collateral — 1,605 3,882 — Embedded derivatives: GMIB reinsurance contracts (3) — 1,907 — (578) GMxB derivative features liability (4) (6) (7) — — 7,824 3,408 SCS, SIO, MSO and IUL indexed features (5) — — 5,297 (1,145) Total derivative instruments $ 98,693 $ 13,371 $ 23,418 Net derivative gains (losses) $ (2,592) ______________ (1) Reported in other invested assets in the consolidated balance sheets. (2) Reported in net derivative gains (losses) in the consolidated statements of income (loss). (3) Reported in GMIB reinsurance contract asset in the consolidated balance sheets. (4) Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (5) Reported in policyholders’ account balances in the consolidated balance sheets. (6) Includes amounts reclassified as HFS. (7) Excludes a $46 million settlement fee on CS Life reinsurance contract. Derivative Instruments by Category December 31, 2020 Three Months Ended March 31, 2020 Fair Value Notional Amount Derivative Assets Derivative Net Derivative (in millions) Derivative instruments: Freestanding derivatives (1): Equity contracts: Futures $ 4,881 $ — $ 2 $ 220 Swaps 22,456 6 2 3,778 Options 35,848 8,396 3,726 (3,851) Interest rate contracts: Swaps 23,834 553 656 3,578 Futures 18,571 — — 1,988 Swaptions — — — 9 Credit contracts: Credit default swaps 1,087 19 14 (1) Other freestanding contracts: Foreign currency contracts 411 9 9 (2) Margin — 49 66 — Collateral — 212 3,839 — Embedded derivatives: GMIB reinsurance contracts (3) — 2,488 — 726 GMxB derivative features liability (4) (6) — — 11,131 (1,199) SCS, SIO, MSO and IUL indexed features (5) — — 4,509 4,154 Total derivative instruments $ 107,088 $ 11,732 $ 23,954 Net derivative gains (losses) $ 9,400 ______________ (1) Reported in other invested assets in the consolidated balance sheets. (2) Reported in net derivative gains (losses) in the consolidated statements of income (loss). (3) Reported in GMIB reinsurance contract asset in the consolidated balance sheets. (4) Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (5) Reported in policyholders’ account balances in the consolidated balance sheets. (6) Includes amounts reclassified as HFS. |
Offsetting Financial Assets and Liabilities and Derivative Instruments | The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of March 31, 2021 and December 31, 2020: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of March 31, 2021 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (3) Net Amount (in millions) Assets: Derivative assets (1) $ 11,463 $ 10,272 $ 1,191 $ — $ 1,191 Other financial assets 1,722 — 1,722 — 1,722 Other invested assets $ 13,185 $ 10,272 $ 2,913 $ — $ 2,913 Liabilities: Derivative liabilities (2) $ 10,296 $ 10,272 $ 24 $ — $ 24 Other financial liabilities 3,966 — 3,966 — 3,966 Other liabilities $ 14,262 $ 10,272 $ 3,990 $ — $ 3,990 ______________ (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) Financial instruments sent (held). As of December 31, 2020 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (3) Net Amount (in millions) Assets: Derivative assets (1) $ 9,244 $ 8,249 $ 995 $ (53) $ 942 Other financial instruments 1,733 — 1,733 — 1,733 Other invested assets $ 10,977 $ 8,249 $ 2,728 $ (53) $ 2,675 Liabilities: Derivative liabilities (2) $ 8,261 $ 8,249 $ 12 $ — $ 12 Other financial liabilities 3,674 — 3,674 — 3,674 Other liabilities $ 11,935 $ 8,249 $ 3,686 $ — $ 3,686 ______________ (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) Financial instruments sent (held). |
CLOSED BLOCK (Tables)
CLOSED BLOCK (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Closed Block Disclosure [Abstract] | |
Schedule of Closed Block Assets and Liabilities | Summarized financial information for the Company’s Closed Block is as follows: March 31, 2021 December 31, 2020 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 6,133 $ 6,201 Policyholder dividend obligation 28 160 Other liabilities 63 39 Total Closed Block liabilities 6,224 6,400 Assets Designated to the Closed Block: Fixed maturities AFS, at fair value (amortized cost of $3,381 and $3,359) (allowance for credit losses of $0) 3,623 3,718 Mortgage loans on real estate (net of allowance for credit losses of $6 and $6) 1,761 1,773 Policy loans 636 648 Cash and other invested assets 19 28 Other assets 128 169 Total assets designated to the Closed Block 6,167 6,336 Excess of Closed Block liabilities over assets designated to the Closed Block 57 64 Amounts included in AOCI: Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $28 and $160; and net of income tax: $(45) and $(42) 179 167 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 236 $ 231 |
Closed Block Operations, Net Results | The Company’s Closed Block revenues and expenses were as follows: Three Months Ended March 31, 2021 2020 (in millions) Revenues: Premiums and other income $ 39 $ 42 Net investment income (loss) 60 66 Investment gains (losses), net — — Total revenues 99 108 Benefits and Other Deductions: Policyholders’ benefits and dividends 106 103 Other operating costs and expenses 1 — Total benefits and other deductions 107 103 Net income (loss), before income taxes (8) 5 Income tax (expense) benefit (1) — Net income (loss) $ (9) $ 5 |
Closed Block Dividend Obligation | A reconciliation of the Company’s policyholder dividend obligation follows: Three Months Ended March 31, 2021 2020 (in millions) Balance, beginning of year $ 160 $ 2 Unrealized investment gains (losses) (132) — Balance, end of year $ 28 $ 2 |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Insurance [Abstract] | |
Variable Annuity Contracts- GMDB GMIB | Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature Three Months Ended March 31, 2021 and 2020 GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Balance, January 1, 2021 $ 5,097 $ 72 $ (88) $ 6,026 $ 196 $ (2,488) Paid guarantee benefits (133) (6) 3 (92) (52) 14 Other changes in reserve 122 6 1 32 — 567 Balance, March 31, 2021 $ 5,086 $ 72 $ (84) $ 5,966 $ 144 $ (1,907) Balance, January 1, 2020 $ 4,780 $ 76 $ (104) $ 4,673 $ 187 $ (2,139) Paid guarantee benefits (111) (6) 5 (74) (1) 20 Other changes in reserve 377 2 (11) 1,675 33 (706) Balance, March 31, 2020 $ 5,046 $ 72 $ (110) $ 6,274 $ 219 $ (2,825) |
Schedule of Net Amount of Risk by Product and Guarantee | Direct Variable Annuity Contracts with GMDB and GMIB Features as of March 31, 2021 Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rate) Variable annuity contracts with GMDB features Account Values invested in: General Account $ 15,647 $ 86 $ 53 $ 164 $ 15,950 Separate Accounts 55,738 9,713 3,350 34,329 103,130 Total Account Values $ 71,385 $ 9,799 $ 3,403 $ 34,493 $ 119,080 NAR, gross $ 96 $ 35 $ 1,509 $ 16,402 $ 18,042 NAR, net of amounts reinsured $ 96 $ 33 $ 1,057 $ 16,402 $ 17,588 Average attained age of policyholders (in years) 51.4 68.5 75.0 70.4 55.3 Percentage of policyholders over age 70 11.4 % 49.1 % 70.8 % 55.0 % 20.4 % Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% Variable annuity contracts with GMIB features Account Values invested in: General Account $ — $ — $ 16 $ 212 $ 228 Separate Accounts — — 25,457 36,802 62,259 Total Account Values $ — $ — $ 25,473 $ 37,014 $ 62,487 NAR, gross $ — $ — $ 680 $ 8,598 $ 9,278 NAR, net of amounts reinsured $ — $ — $ 219 $ 7,835 $ 8,054 Average attained age of policyholders (in years) N/A N/A 64.4 70.3 68.1 Weighted average years remaining until annuitization N/A N/A 5.6 0.6 2.4 Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% Assumed Variable Annuity Contracts with GMDB and GMIB Features as of March 31, 2021 Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rates) Variable annuity contracts with GMDB features Reinsured Account Values $ 975 $ 5,294 $ 261 $ 1,164 $ 7,694 Net Amount at Risk assumed $ 3 $ 202 $ 12 $ 103 $ 320 Average attained age of policyholders (in years) 68 73 78 76 73 Percentage of policyholders over age 70 45.7 % 66.0 % 80.4 % 77.2 % 65.6 % Range of contractually specified interest rates (1) N/A N/A 3%-10% 5%-10% 3%-10% Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rates) Variable annuity contracts with GMIB features Reinsured Account Values $ 966 $ 45 $ 229 $ 1,198 $ 2,438 Net Amount at Risk assumed $ 1 $ — $ 19 $ 222 $ 242 Average attained age of policyholders (in years) 72 75 72 70 71 Percentage of policyholders over age 70 65.0 % 63.5 % 61.3 % 55.0 % 59.7 % Range of contractually specified interest rates 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 has now elapsed. |
Schedule of Fair Value of Separate Accounts by Major Category of Investment | Investment in Variable Insurance Trust Mutual Funds March 31, 2021 December 31, 2020 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 48,656 $ 19,246 $ 46,850 $ 18,771 Fixed income 5,362 2,584 5,506 2,701 Balanced 48,016 40,157 47,053 39,439 Other 1,096 272 1,111 275 Total $ 103,130 $ 62,259 $ 100,520 $ 61,186 |
No Lapse Guarantee Liabilities | The change in the NLG liabilities, reflected in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below. Direct Liability (1) Three Months Ended March 31, 2021 2020 (in millions) Beginning balance $ 1,022 $ 898 Paid guarantee benefits (15) (13) Other changes in reserves 43 39 Ending balance $ 1,050 $ 924 _____________ (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, 2021 | |
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. Fair Value Measurements as of March 31, 2021 (1) Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, AFS: Corporate (2) $ — $ 51,837 $ 1,255 $ 53,092 U.S. Treasury, government and agency — 16,004 — 16,004 States and political subdivisions — 602 38 640 Foreign governments — 1,074 — 1,074 Residential mortgage-backed (3) — 130 — 130 Asset-backed (4) — 4,614 65 4,679 Commercial mortgage-backed — 1,486 4 1,490 Redeemable preferred stock — 52 — 52 Total fixed maturities, AFS — 75,799 1,362 77,161 Fixed maturities, at fair value using the fair value option — 703 141 844 Other equity investments 402 394 74 870 Trading securities 300 4,482 39 4,821 Other invested assets: Short-term investments — 87 — 87 Assets of consolidated VIEs/VOEs 53 260 11 324 Swaps — (2,139) — (2,139) Credit default swaps — 6 — 6 Futures 1 — — 1 Options — 5,518 — 5,518 Total other invested assets 54 3,732 11 3,797 Cash equivalents 4,308 1,054 — 5,362 Segregated securities — 1,413 — 1,413 GMIB reinsurance contracts asset — — 1,907 1,907 Separate Accounts assets (5) 136,830 2,398 — 139,228 Level 1 Level 2 Level 3 Total (in millions) Total Assets $ 141,894 $ 89,975 $ 3,534 $ 235,403 Liabilities Notes issued by consolidated VIE’s, at fair value using the fair value option (6) $ — $ 506 $ — $ 506 GMxB derivative features’ liability — — 7,824 7,824 SCS, SIO, MSO and IUL indexed features’ liability — 5,297 — 5,297 Liabilities of consolidated VIEs and VOEs 14 6 — 20 Contingent payment arrangements — — 36 36 Total Liabilities $ 14 $ 5,809 $ 7,860 $ 13,683 ______________ (1) Excludes amounts reclassified as HFS except GMxB derivative features’ liability, which is inclusive of amounts reclassified as HFS. (2) Corporate fixed maturities includes both public and private issues. (3) Includes publicly traded agency pass-through securities and collateralized obligations. (4) Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types. (5) Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate. As of March 31, 2021, the fair value of such investments was $365 million. (6) Includes CLO short-term debt of $185 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option Accrued interest payable of $2 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis. Fair Value Measurements as of December 31, 2020 (1) Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, AFS: Corporate (2) $ — $ 56,457 $ 1,702 $ 58,159 U.S. Treasury, government and agency — 16,118 — 16,118 States and political subdivisions — 596 39 635 Foreign governments — 1,103 — 1,103 Residential mortgage-backed (3) — 143 — 143 Asset-backed (4) — 3,591 20 3,611 Commercial mortgage-backed (3) — 1,203 — 1,203 Redeemable preferred stock 404 262 — 666 Total fixed maturities, AFS 404 79,473 1,761 81,638 Fixed maturities, at fair value using the fair value option — 309 80 389 Other equity investments 13 — 71 84 Trading securities 441 5,073 39 5,553 Other invested assets: Short-term investments — 101 1 102 Assets of consolidated VIEs/VOEs 74 231 13 318 Swaps — (99) — (99) Credit default swaps — 5 — 5 Futures (2) — — (2) Options — 4,670 — 4,670 Swaptions — — — — Total other invested assets 72 4,908 14 4,994 Cash equivalents 4,309 297 — 4,606 Segregated securities — 1,753 — 1,753 GMIB reinsurance contracts asset — — 2,488 2,488 Separate Accounts assets (5) 132,698 2,674 1 135,373 Total Assets $ 137,937 $ 94,487 $ 4,454 $ 236,878 Liabilities Notes issued by consolidated VIE’s, at fair value using the fair value option (6) $ — $ 312 $ — $ 312 GMxB derivative features’ liability — — 11,131 11,131 SCS, SIO, MSO and IUL indexed features’ liability — 4,509 — 4,509 Liabilities of consolidated VIEs and VOEs 2 6 — 8 Contingent payment arrangements — — 28 28 Total Liabilities $ 2 $ 4,827 $ 11,159 $ 15,988 ______________ (1) Excludes amounts reclassified as HFS. (2) Corporate fixed maturities includes both public and private issues. (3) Includes publicly traded agency pass-through securities and collateralized obligations. (4) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (5) Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate and commercial mortgages. As of December 31, 2020, the fair value of such investments was $356 million. |
Reconciliation of Assets and Liabilities at Level 3 | The tables below present reconciliations for all Level 3 assets and liabilities for the three months ended March 31, 2021 and 2020, respectively. Level 3 Instruments - Fair Value Measurements Corporate State and Asset-backed Redeemable Preferred Stock CMBS Fixed maturities, at FVO (2) (in millions) Balance, January 1, 2021 $ 1,702 $ 39 $ 20 $ — $ — $ 80 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 1 — — — — 3 Investment gains (losses), net (6) — — — — — Subtotal (5) — — — — 3 Other comprehensive income (loss) 9 (1) — — — Purchases 165 — 50 — 4 88 Sales (69) — (5) — — (8) Transfers into Level 3 (1) 2 — — — — 7 Transfers out of Level 3 (1) (549) — — — — (28) Balance, March 31, 2021 $ 1,255 $ 38 $ 65 $ — $ 4 $ 142 Balance, January 1, 2020 $ 1,257 $ 39 $ 100 $ — $ — $ — Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 1 — — — — — Investment gains (losses), net (2) — — — — — Subtotal (1) — — — — — Other comprehensive income (loss) (61) (3) (8) — — — Purchases 61 — 48 — — — Sales (45) — — — — — Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) (26) — (100) — — — Balance, March 31, 2020 $ 1,185 $ 36 $ 40 $ — $ — $ — _____________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) Fixed maturities, at fair value using the fair value option. Other Equity Investments GMIB Reinsurance Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Balance, January 1, 2021 $ 124 $ 2,488 $ 1 $ (11,131) $ (28) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), net 1 — — — — Net derivative gains (losses) (1) (7) — (578) — 3,408 — Total realized and unrealized gains (losses) 1 (578) — 3,408 — Other comprehensive income (loss) — — — — — Purchases (2) 2 11 — (119) (7) Sales (3) (2) (14) — 18 — Settlements (4) — — — — — Change in estimate (5) — — — — — Activity related to consolidated VIEs/VOEs (2) — — — (1) Transfers into Level 3 (6) — — — — — Transfers out of Level 3 (6) — — (1) — — Balance, March 31, 2021 $ 123 $ 1,907 $ — $ (7,824) $ (36) Balance, January 1, 2020 $ 150 $ 2,139 $ — $ (8,502) $ (23) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), net 7 — — — — Net derivative gains (losses) — 726 — (1,199) — Total realized and unrealized gains (losses) 7 726 — (1,199) — Other comprehensive income (loss) (7) — — — — Purchases (2) 2 10 — (111) — Sales (3) (11) (20) — 14 — Settlements (4) — — — — — Change in estimate — (32) — — — Activity related to consolidated VIEs/VOEs (1) — — — (1) Transfers into Level 3 (6) — — — — — Transfers out of Level 3 (6) — — — — — Balance, March 31, 2020 $ 140 $ 2,823 $ — $ (9,798) $ (24) ______________ (1) The Company’s non-performance risk impact of $79 million for the GMxB Derivative Features Liability and $(15) million for the GMIB Reinsurance Contract Asset during the three months ended March 31, 2021, respectively, is recorded through Net derivative gains (losses). (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. (5) For the GMIB reinsurance contract asset, represents a transfer from amounts due from reinsurers. (6) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (7) GMxB Derivative Features Liability excludes a $46 million settlement fee on CS Life reinsurance contract. The table below details changes in unrealized gains (losses) for the three months ended March 31, 2021 and 2020 by category for Level 3 assets and liabilities still held as of March 31, 2021 and 2020, respectively. Change in Unrealized Gains (Losses) for Level 3 Instruments Net Income (Loss) Net Derivative Gains (Losses) OCI (in millions) Held at March 31, 2021: Change in unrealized gains (losses): Fixed maturities, AFS Corporate $ — $ 9 State and political subdivisions — (1) Asset-backed — — Total fixed maturities, AFS — 8 GMIB reinsurance contracts (578) — Separate Account assets — — GMxB derivative features liability 3,408 — Total $ 2,830 $ 8 Held at March 31, 2020: Change in unrealized gains (losses): Fixed maturities, AFS Corporate $ — $ (61) State and political subdivisions — (2) Asset-backed — (8) Total fixed maturities, AFS — (71) GMIB reinsurance contracts 726 — Separate Account assets — — GMxB derivative features liability (1,199) — Total $ (473) $ (71) |
Quantitative Information About Level 3 Fair Value Measurement | The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of March 31, 2021 and December 31, 2020, respectively. Quantitative Information about Level 3 Fair Value Measurements as of March 31, 2021 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (2) (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 40 Matrix pricing model Spread over Benchmark 20 - 245 bps 150 bps 771 Market comparable EBITDA multiples 4.0x - 32.3x 11.4x Other equity investments 2 Market comparable companies Revenue multiple 9.6x - 17.2x 16.0x 39 Discounted Cash Flow Earnings multiple 8.2x GMIB reinsurance contract asset 1,907 Discounted cash flow Lapse rates 0.6%-16% 1.93% Liabilities: AB Contingent Consideration Payable 36 Discounted cash flow Expected revenue growth rates 2.0 % - 135.6 % 9.0 % Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (2) GMIBNLG 7,625 Discounted cash flow Non-performance risk 102.0 bps 0.01%-0.19% 3.44% 1.66% Assumed GMIB Reinsurance Contracts 143 Discounted cash flow Lapse rates 1.1% - 11.1% 1.93% GWBL/GMWB 134 Discounted cash flow Lapse rates Volatility rates - Equity 0.8%-16% 1.93% 24% GIB (76) Discounted cash flow Lapse rates 0.8%-15.6% 1.93% GMAB (2) Discounted cash flow Lapse rates 0.8%-16% 1.93% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. (2) For lapses, withdrawals, and utilizations the rates were weighted by counts; for mortality weighted average rates are shown for all ages combined; and for withdrawals the weighted averages were based on an estimated split of partial withdrawal and dollar-for-dollar withdrawals. Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2020 Fair Valuation Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 34 Matrix pricing model Spread over benchmark 45 - 195 bps 160 bps 1,148 Market comparable companies EBITDA multiples 3.5x - 33.1x 10.8x Other equity investments 2 Market comparable companies Revenue multiple 9.7x - 26.4x 18.5x 39 Discounted cash flow Earnings multiple 8.2x Fair Valuation Significant Range Weighted Average GMIB reinsurance contract asset 2,488 Discounted cash flow Non-performance risk 43 - 85 bps 50 bps 2.80% Liabilities: AB Contingent Consideration Payable 28 Discounted cash flow Expected revenue growth rates 0.7 % - 50.0 % 4.9 % GMIBNLG 10,713 Discounted cash flow Non-performance risk 96.0 bps 3.19% 1.56% Assumed GMIB Reinsurance Contracts 195 Discounted cash flow Non-performance risk 60 - 133 99 bps GWBL/GMWB 190 Discounted cash flow Non-performance risk Volatility rates - Equity 96.0 bps 1.69% 24% GIB 31 Discounted cash flow Non-performance risk 96.0 bps 1.69% GMAB 2 Discounted cash flow Non-performance risk 96.0 bps 1.69% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. |
Fair Value Disclosure Financial Instruments Not Carried At Fair Value | The carrying values and fair values as of March 31, 2021 and December 31, 2020 for financial instruments not otherwise disclosed in Note 3 and Note 4 are presented in the table below. Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed Carrying Fair Value Level 1 Level 2 Level 3 Total (in millions) March 31, 2021: Mortgage loans on real estate $ 13,280 $ — $ — $ 13,532 $ 13,532 Policy loans (1) $ 4,091 $ — $ — $ 5,117 $ 5,117 Policyholders’ liabilities: Investment contracts (1) $ 2,160 $ — $ — $ 2,280 $ 2,280 FHLB funding agreements $ 10,223 $ — $ 10,284 $ — $ 10,284 FABN funding agreements $ 3,132 $ — $ 3,087 $ — $ 3,087 Short-term and long-term debt (2) $ 3,837 $ — $ 4,493 $ — $ 4,493 Separate Accounts liabilities $ 10,658 $ — $ — $ 10,658 $ 10,658 December 31, 2020: Mortgage loans on real estate $ 13,159 $ — $ — $ 13,491 $ 13,491 Policy loans (1) $ 4,118 $ — $ — $ 5,352 $ 5,352 Policyholders’ liabilities: Investment contracts (1) $ 2,198 $ — $ — $ 2,416 $ 2,416 FHLB funding agreements $ 6,897 $ — $ 6,990 $ — $ 6,990 FABN funding agreements $ 1,939 $ — $ 1,971 $ — $ 1,971 Short-term and long-term debt $ 4,115 $ — $ 5,065 $ — $ 5,065 Separate Accounts liabilities $ 10,081 $ — $ — $ 10,081 $ 10,081 _____________ (1) Excludes amounts reclassified as HFS. (2) Excludes CLO short-term debt of $185 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Components of Certain Benefit Costs | Components of net periodic pension expense for the Company’s plans were as follows: Three Months Ended March 31, 2021 2020 Service cost $ 2 $ 2 Interest cost 14 23 Expected return on assets (38) (37) Prior Period Svc Cost Amortization (1) — Actuarial (gain) loss 1 — Net amortization 29 27 Impact of settlement — — Net Periodic Pension Expense $ 7 $ 15 |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Stock by Class | Preferred stock authorized, issued and outstanding was as follows: March 31, 2021 December 31, 2020 Series Shares Authorized Shares Shares Outstanding Shares Authorized Shares Shares Outstanding Series A 32,000 32,000 32,000 32,000 32,000 32,000 Series B 20,000 20,000 20,000 20,000 20,000 20,000 Series C 12,000 12,000 12,000 — — — Total 64,000 64,000 64,000 52,000 52,000 52,000 |
Dividends Declared | Dividends declared per share were as follows for the periods indicated: Three months ended March 31, 2021 2020 Series A dividends declared $ 328 $ 394 Series B dividends declared $ — $ — Series C dividends declared $ 200 $ — Dividends declared per share of common stock were as follows for the periods indicated: Three Months Ended March 31, 2021 2020 Dividends declared $ 0.17 $ 0.15 |
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, 2021 and December 31, 2020 follow: March 31, December 31, 2021 2020 (in millions) Unrealized gains (losses) on investments $ 1,644 $ 4,797 Defined benefit pension plans (902) (935) Foreign currency translation adjustments (40) (34) Total accumulated other comprehensive income (loss) 702 3,828 Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest (38) (35) Accumulated other comprehensive income (loss) attributable to Holdings $ 740 $ 3,863 |
Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of OCI, net of taxes for the three months ended March 31, 2021 and 2020 follow: Three Months Ended March 31, 2021 2020 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ (4,059) $ 1,513 (Gains) losses reclassified into net income (loss) during the period (1) (164) (47) Net unrealized gains (losses) on investments (4,223) 1,466 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 1,070 (36) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $838 and $380) (3,153) 1,430 Change in defined benefit plans: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost 33 28 Change in defined benefit plans (net of deferred income tax expense (benefit) of $9 and $7) 33 28 Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period (6) (21) Foreign currency translation adjustment (6) (21) Total other comprehensive income (loss), net of income taxes (3,126) 1,437 Less: Other comprehensive income (loss) attributable to noncontrolling interest (3) (8) Other comprehensive income (loss) attributable to Holdings $ (3,123) $ 1,445 _______________ (1) See “Reclassification adjustments” in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $44 million, and $12 million for the three months ended March 31, 2021 and 2020, respectively |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The changes in the components of redeemable noncontrolling interests are presented in the table that follows: Three Months Ended March 31, 2021 2020 (in millions) Balance, beginning of period $ 143 $ 365 Net earnings (loss) attributable to redeemable noncontrolling interests — (30) Purchase/change of redeemable noncontrolling interests (6) (78) Balance, end of period $ 137 $ 257 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity of Funding Agreements | Change in FHLB Funding Agreements during the Three Months Ended March 31, 2021 Outstanding Balance at December 31, 2020 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Outstanding Balance at March 31, 2021 (in millions) Short-term funding agreements: Due in one year or less $ 5,634 $ 16,050 $ 12,724 $ 173 $ — $ 9,133 Long-term funding agreements: Due in years two through five 722 — — (173) — 549 Due in more than five years 534 — — — — 534 Total long-term funding agreements 1,256 — — (173) — 1,083 Total funding agreements (1) $ 6,890 $ 16,050 $ 12,724 $ — $ — $ 10,216 _____________ (1) The $6 million and $7 million difference between the funding agreements carrying value shown in fair value table for March 31, 2021 and December 31, 2020, respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements borrowing rates. Change in FABN Funding Agreements during the Three Months Ended March 31, 2021 Outstanding Balance at December 31, 2020 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Outstanding Balance at March 31, (in millions) Short-term funding agreements: Due in one year or less $ — $ — $ — $ — $ — $ — Long-term funding agreements: Due in years two through five 1,150 450 — — — 1,600 Due in more than five years 800 750 — — — 1,550 Total long-term funding agreements 1,950 1,200 — — — 3,150 Total funding agreements (1) $ 1,950 $ 1,200 $ — $ — $ — $ 3,150 _____________ |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | 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, 2021 and 2020, respectively: Three Months Ended March 31, 2021 2020 (in millions) Net income (loss) attributable to Holdings $ (1,488) $ 5,388 Adjustments related to: Variable annuity product features (1) 2,267 (6,869) Investment (gains) losses (183) (4) Net actuarial (gains) losses related to pension and other postretirement benefit obligations 34 27 Other adjustments (2) (3) (4) 524 695 Income tax expense (benefit) related to above adjustments (5) (555) 1,292 Non-recurring tax items 1 6 Non-GAAP operating earnings $ 600 $ 535 Operating earnings (loss) by segment: Individual Retirement $ 363 $ 373 Group Retirement $ 151 $ 106 Investment Management and Research $ 121 $ 95 Protection Solutions $ 41 $ 49 Corporate and Other (6) $ (76) $ (88) ______________ (1) Includes COVID-19 impact on variable annuity product features due to an assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the three months ended March 31, 2020. (2) Includes COVID-19 impact on other adjustments due to a first quarter 2020 assumption update of $1.0 billion and other COVID-19 related impacts of $51 million for the three months ended March 31, 2020. (3) Include separation costs of $21 million and $32 million for the three months ended March 31, 2021 and 2020, respectively. (4) Includes certain legal accruals related to the COI litigation of $180 million for the three months ended March 31, 2021. No adjustments were made to prior period operating earnings as the impact was immaterial. (5) Includes income taxes of $547 million for the above COVID-19 items for the three months ended March 31, 2020. (6) Includes interest expense and financing fees of $58 million and $56 million for the three months ended March 31, 2021 and 2020, respectively. The table below presents segment revenues for the three months ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 2020 (in millions) Segment revenues: Individual Retirement (1) $ 980 $ 1,473 Group Retirement (1) 329 282 Investment Management and Research (2) 1,004 907 Protection Solutions (1) 826 865 Corporate and Other (1) 334 311 Adjustments related to: Variable annuity product features (2,282) 8,345 Investment gains (losses), net 183 4 Other adjustments to segment revenues (3) (221) 422 Total revenues $ 1,153 $ 12,609 ______________ (1) Includes investment expenses charged by AB of $19 million and $18 million for the three months ended March 31, 2021 and 2020, respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of $30 million and $27 million for the three months ended March 31, 2021 and 2020, respectively, are included in segment revenues of the Investment Management and Research segment. (3) Includes COVID-19 impact on other adjustments due to an assumption update of $46 million & other COVID-19 related impacts of $(51) million for the three months ended March 31, 2020 . The table below presents total assets by segment as of March 31, 2021 and 2020: March 31, 2021 December 31, 2020 (in millions) Total assets by segment: Individual Retirement $ 135,009 $ 135,764 Group Retirement 53,050 51,466 Investment Management and Research 10,688 11,179 Protection Solutions 49,246 48,568 Corporate and Other 28,839 28,420 Total assets $ 276,832 $ 275,397 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents a reconciliation of Net income (loss) and Weighted-average common shares used in calculating basic and diluted Earnings per common share for the periods indicated: Three Months Ended March 31, 2021 2020 (in millions) Weighted-average common shares outstanding: Weighted-average common shares outstanding — basic 434.2 461.0 Effect of dilutive potential common shares: Employee share awards (1) — 2.5 Weighted-average common shares outstanding — diluted (2) 434.2 463.5 Net income (loss): Net income (loss) $ (1,400) $ 5,425 Less: Net income (loss) attributable to the noncontrolling interest 88 37 Net income (loss) attributable to Holdings (1,488) 5,388 Less: Preferred stock dividends 13 13 Net income (loss) available to Holdings’ common shareholders $ (1,501) $ 5,375 Earnings per common share: Basic $ (3.46) $ 11.66 Diluted $ (3.46) $ 11.60 _____________ (1) Calculated using the treasury stock method. (2) Due to net loss for the three months ended March 31, 2021 , approximately 4.3 million share awards were excluded from the diluted EPS calculation. |
HELD-FOR-SALE (Tables)
HELD-FOR-SALE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets And Liabilities Held-for-sale | The following table summarizes the components of assets and liabilities HFS on the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 (in millions) Assets: Fixed maturity securities $ 226 235 Trading securities, at fair value 156 189 Other invested assets 1 1 Cash and cash equivalents 92 39 Other assets 26 25 Assets held-for-sale 501 489 Less: Loss accrual (18) (19) Total assets held-for-sale $ 483 $ 470 Liabilities: Future policy benefits and other policyholder's liabilities: $ 267 $ 320 Broker-dealer related payables 1 — Other liabilities 2 2 Total liabilities held-for-sale $ 270 $ 322 |
REVISION OF PRIOR PERIOD FINA_2
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The following tables present line items for prior period financial statements that have been affected by the revision. For these line items, the tables detail the amounts as previously reported, the impact upon those line items due to the revision, and the amounts as currently revised within the financial statements March 31, 2020 As Previously Impact of Revisions As Revised (in millions) Consolidated Balance Sheets: Assets: Investments: Other invested assets 2,112 12 2,124 Total investments 96,216 12 96,228 Deferred policy acquisition costs 4,809 (112) 4,697 Total Assets $ 240,781 $ (100) $ 240,681 Liabilities: Future policy benefits and other policyholders’ liabilities 37,968 33 38,001 Current and deferred income taxes 2,355 (28) 2,327 Total Liabilities $ 218,884 $ 5 $ 218,889 EQUITY Retained earnings 17,112 (105) 17,007 Total equity attributable to Holdings 20,086 (105) 19,981 Total Equity 21,640 (105) 21,535 Total Liabilities, Redeemable Noncontrolling Interest and Equity $ 240,781 $ (100) $ 240,681 Three Months Ended March 31, 2020 As Previously Impact of Revisions As Revised (in millions) Consolidated Statements of Income (Loss) REVENUES Policy charges and fee income $ 991 $ 5 $ 996 Net derivative gains (losses) 9,401 (1) 9,400 Net investment income (loss) 616 13 629 Other Income 156 (1) 155 Total revenues 12,593 16 12,609 BENEFITS AND OTHER DEDUCTIONS Policyholders' benefits 2,788 (12) 2,776 Amortization of deferred policy acquisition costs 1,248 55 1,303 Other operating costs and expenses 437 1 438 Total benefits and other deductions 5,706 44 5,750 Income (loss) from continuing operations, before income taxes 6,887 (28) 6,859 Income tax (expense) benefit (1,440) 6 (1,434) Net income (loss) 5,447 (22) 5,425 Net income (loss) attributable to Holdings $ 5,410 $ (22) $ 5,388 EARNINGS PER COMMON SHARE Basic $ 11.71 $ (0.05) $ 11.66 Diluted $ 11.65 $ (0.05) $ 11.60 Three Months Ended March 31, 2020 As Previously Impact of Revisions As Revised (in millions) Consolidated Statements of Comprehensive Income (Loss) Net income (loss) $ 5,447 $ (22) $ 5,425 Change in unrealized gains (losses), net of reclassification adjustment 1,434 (4) 1,430 Other comprehensive income 1,441 (4) 1,437 Comprehensive income (loss) 6,888 (26) 6,862 Comprehensive income (loss) attributable to Holdings $ 6,859 $ (26) $ 6,833 Three Months Ended March 31, 2020 As Previously Impact of Revisions As Revised (in millions) Consolidated Statement of Equity: Retained earnings, beginning of year $ 11,827 $ (83) $ 11,744 Net income (loss) attributable to Holdings 5,410 (22) 5,388 Retained earnings, end of period $ 17,112 $ (105) $ 17,007 Accumulated other comprehensive income (loss), beginning of year $ 840 $ 4 $ 844 Other comprehensive income (loss) 1,449 (4) 1,445 Accumulated other comprehensive income (loss), end of period $ 2,289 $ — $ 2,289 Total Holdings’ equity, end of period $ 20,086 $ (105) $ 19,981 Total equity, end of period $ 21,640 $ (105) $ 21,535 Three Months Ended March 31, 2020 As Previously Impact of Revisions As Revised (in millions) Consolidated Statement of Cash Flows: Cash flows from operating activities: Net income (loss) $ 5,447 $ (22) $ 5,425 Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities: Policy charges and fee income (991) (5) (996) Net derivative (gains) losses (9,401) 1 (9,400) Amortization and depreciation 1,275 55 1,330 Future policy benefits 1,936 (11) 1,925 Current and deferred income taxes 1,425 (5) 1,420 Other, net (448) (1) (449) Net cash provided by (used in) operating activities $ (582) $ 12 $ (570) Cash flows from financing activities: Change in collateralized pledged assets 44 (1) 43 Change in collateralized pledged liabilities 657 (11) 646 Net cash provided by (used in) financing activities $ 2,334 $ (12) $ 2,322 Cash and cash equivalents, end of period $ 10,315 $ — $ 10,315 |
ORGANIZATION - Narrative (Detai
ORGANIZATION - Narrative (Details) - numberOfOperatingSegment | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Oct. 27, 2020 | |
Organization Basis Of Presentation [Line Items] | |||
Number of reportable segments | 4 | ||
CS Life RE | |||
Organization Basis Of Presentation [Line Items] | |||
Percentage of common stock sold to affiliate | 100.00% | ||
Alliance Bernstein | |||
Organization Basis Of Presentation [Line Items] | |||
Economic interest | 64.00% | 65.00% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Investments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Life insurance, corporate or bank owned, amount | $ 992 | $ 992 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entities (Details) $ in Millions | Mar. 31, 2021USD ($)partnership | Dec. 31, 2020USD ($)partnership | Mar. 31, 2020USD ($) | |
Variable Interest Entity [Line Items] | ||||
Investments | $ 105,497 | $ 109,087 | $ 96,228 | |
Fixed maturities, at fair value using the fair value option | [1] | 844 | 389 | |
Notes issued by consolidated variable interest entities, at fair value using the fair value option | [1] | 323 | 313 | |
Unpaid outstanding balance and short-term borrowing | 547 | 362 | ||
Assets | 276,832 | 275,397 | 240,681 | |
Liabilities | 264,427 | 258,077 | $ 218,889 | |
Redeemable non-controlling interest | [1],[2] | 137 | 143 | |
Consolidated Variable Interest Entities | Collateralized Loan Obligations | ||||
Variable Interest Entity [Line Items] | ||||
Investments | 41 | $ 38 | ||
Investment assets, special purpose entity | $ 81 | |||
Consolidated Limited Partnerships | ||||
Variable Interest Entity [Line Items] | ||||
Number of consolidated private equity limited partnership | partnership | 1 | 1 | ||
Assets | $ 10 | $ 12 | ||
Non-consolidated Vairable Interest Entities | ||||
Variable Interest Entity [Line Items] | ||||
Investments | 1,500 | 1,400 | ||
Assets | 173,100 | 165,900 | ||
Variable interest entity, maximum loss exposure | 1,500 | 1,400 | ||
Variable interest entity, unfunded commitments | 1,300 | 1,200 | ||
AB-Sponsored Investment Funds | Consolidated Variable Interest Entities | ||||
Variable Interest Entity [Line Items] | ||||
Assets | 290 | 284 | ||
Liabilities | 14 | 8 | ||
Redeemable non-controlling interest | 64 | 83 | ||
AB-Sponsored Investment Funds | VOE Consolidation Model | ||||
Variable Interest Entity [Line Items] | ||||
Assets | 78 | 68 | ||
Liabilities | 29 | 23 | ||
Redeemable non-controlling interest | 24 | 20 | ||
AB-Sponsored Investment Funds | Non-consolidated Vairable Interest Entities | ||||
Variable Interest Entity [Line Items] | ||||
Assets | 70,900 | 73,400 | ||
Variable interest entity, maximum loss exposure | $ 7 | $ 7 | ||
[1] | See Note 2 for details of balances with VIEs. | |||
[2] | See Note 11 for details of redeemable noncontrolling interest. |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Assumption Updates and Model Changes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Change in Accounting Estimate [Line Items] | |||
Policy charges and fee income | $ 949 | $ 996 | |
Policyholders’ benefits | 939 | 2,776 | |
Interest credited to policyholders’ account balances | 291 | 317 | |
Income (loss) from continuing operations, before income taxes | (1,808) | 6,859 | |
Net income (loss) | $ (1,400) | 5,425 | |
Long-term Lapses, Partial Withdrawal Rates and Election Assumptions Updates | |||
Change in Accounting Estimate [Line Items] | |||
Policy charges and fee income | 46 | ||
Policyholders’ benefits | 1,400 | ||
Interest credited to policyholders’ account balances | (6) | ||
Amortization of deferred policy acquisition costs, net | 1,100 | ||
Income (loss) from continuing operations, before income taxes | (2,500) | ||
Net income (loss) | $ (2,000) | ||
Economic Scenario Generator | |||
Change in Accounting Estimate [Line Items] | |||
Income (loss) from continuing operations, before income taxes | $ 201 | ||
Net income (loss) | $ 159 | ||
5-year Historical Average Over A 10-year Period | |||
Change in Accounting Estimate [Line Items] | |||
Interest rate assumptions | 2.25% |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($)issue | Dec. 31, 2020USD ($)issue | Mar. 31, 2020USD ($) | |
Net Investment Income [Line Items] | |||
Number of positions in unrealized loss position | issue | 1,663 | 565 | |
Debt securities exposure in single issuer greater than stated percentage of total investments | 0.70% | ||
Amortized cost | $ 73,715,000,000 | ||
Gross unrealized losses | 34,000,000 | $ 40,000,000 | |
Allowance for credit loss | 74,000,000 | $ 46,000,000 | |
Separate account equity investment carrying value | 42,000,000 | 44,000,000 | |
Fixed maturities | |||
Net Investment Income [Line Items] | |||
Accrued investment income receivable | 545,000,000 | ||
Accrued interest, written off | 0 | ||
Amortized cost | 73,734,000,000 | 72,867,000,000 | |
Corporate | |||
Net Investment Income [Line Items] | |||
Exposure in single issuer of total investments | $ 368,000,000 | $ 391,000,000 | |
Debt securities exposure in single issuer of total investments, percentage | 3.00% | 2.30% | |
Gross unrealized losses | $ 30,000,000 | $ 33,000,000 | |
Commercial Mortgage Loans | |||
Net Investment Income [Line Items] | |||
Accrued investment income receivable | 30,000,000 | ||
Accrued interest, written off | 0 | ||
Agricultural Mortgage Loans | |||
Net Investment Income [Line Items] | |||
Accrued investment income receivable | 29,000,000 | ||
Accrued interest, written off | 0 | ||
Individually Assessed Mortgage Loans | |||
Net Investment Income [Line Items] | |||
Mortgage loans foreclosure probable | 0 | ||
Allowance for credit loss | 0 | ||
Recurring | |||
Net Investment Income [Line Items] | |||
Trading securities, at fair value | 4,821,000,000 | 5,553,000,000 | |
Other Than Investment Grade | External Credit Rating, Non Investment Grade | Fixed maturities | |||
Net Investment Income [Line Items] | |||
Available-for-sale securities, amortized cost basis other than investment grade | $ 2,600,000,000 | $ 2,500,000,000 | |
Percentage of available for sale securities | 3.60% | 3.40% | |
Unrealized loss on available for sale securities | $ 49,000,000 | $ 49,000,000 |
INVESTMENTS - Available-for-sal
INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 73,734 | $ 72,867 | |
Allowance for Credit Losses | 19 | 13 | |
Gross Unrealized Gains | 4,338 | 8,895 | |
Gross Unrealized Losses | 892 | 111 | |
Fixed maturities available for sale, at fair value | 77,161 | 81,638 | |
Amortized Cost | |||
Due in one year or less | 2,645 | ||
Due in years two through five | 16,460 | ||
Due in years six through ten | 19,385 | ||
Due after ten years | 28,930 | ||
Subtotal | 67,420 | ||
Amortized cost | 73,715 | ||
Fair Value | |||
Due in one year or less | 2,665 | ||
Due in years two through five | 17,279 | ||
Due in years six through ten | 20,464 | ||
Due after ten years | 30,402 | ||
Subtotal | 70,810 | ||
Fair Value | 77,161 | ||
Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments | |||
Proceeds from sales | 7,209 | $ 1,820 | |
Gross gains on sales | 291 | 70 | |
Gross losses on sales | (116) | (6) | |
Credit losses | (6) | (2) | |
Fixed Maturities - Credit Loss Impairments | |||
Balances, beginning of period | 32 | 21 | |
Previously recognized impairments on securities that matured, paid, prepaid or sold | 0 | 0 | |
Recognized impairments on securities impaired to fair value this period | 0 | 0 | |
Credit losses recognized this period on securities for which credit losses were not previously recognized | 2 | 2 | |
Additional credit losses this period on securities previously impaired | 4 | 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 | 38 | $ 23 | |
Corporate | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 50,988 | 53,160 | |
Allowance for Credit Losses | 19 | 13 | |
Gross Unrealized Gains | 2,775 | 5,104 | |
Gross Unrealized Losses | 652 | 92 | |
Fixed maturities available for sale, at fair value | 53,092 | 58,159 | |
U.S. Treasury, government and agency | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 14,817 | 12,675 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 1,362 | 3,448 | |
Gross Unrealized Losses | 175 | 5 | |
Fixed maturities available for sale, at fair value | 16,004 | 16,118 | |
State and Political Subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 569 | 535 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 78 | 100 | |
Gross Unrealized Losses | 7 | 0 | |
Fixed maturities available for sale, at fair value | 640 | 635 | |
Foreign governments | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,065 | 1,011 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 47 | 98 | |
Gross Unrealized Losses | 38 | 6 | |
Fixed maturities available for sale, at fair value | 1,074 | 1,103 | |
Residential mortgage-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 119 | 130 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 11 | 13 | |
Gross Unrealized Losses | 0 | 0 | |
Fixed maturities available for sale, at fair value | 130 | 143 | |
Amortized Cost | |||
Without single maturity date | 119 | ||
Fair Value | |||
Without single maturity date | 130 | ||
Asset-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 4,653 | 3,587 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 28 | 29 | |
Gross Unrealized Losses | 2 | 5 | |
Fixed maturities available for sale, at fair value | 4,679 | 3,611 | |
Amortized Cost | |||
Without single maturity date | 4,653 | ||
Fair Value | |||
Without single maturity date | 4,679 | ||
Commercial mortgage-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,482 | 1,148 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 26 | 55 | |
Gross Unrealized Losses | 18 | 0 | |
Fixed maturities available for sale, at fair value | 1,490 | 1,203 | |
Amortized Cost | |||
Without single maturity date | 1,482 | ||
Fair Value | |||
Without single maturity date | 1,490 | ||
Redeemable Preferred Stock | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 41 | 621 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 11 | 48 | |
Gross Unrealized Losses | 0 | 3 | |
Fixed maturities available for sale, at fair value | 52 | $ 666 | |
Amortized Cost | |||
Without single maturity date | 41 | ||
Fair Value | |||
Without single maturity date | $ 52 |
INVESTMENTS - Net Unrealized In
INVESTMENTS - Net Unrealized Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | ||
Beginning of year | $ 17,177 | $ 15,047 |
End of year | 12,268 | 21,535 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Net Unrealized Gains (Losses) on Investments | ||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | ||
Beginning of year | 8,811 | 3,453 |
Net investment gains (losses) arising during the period | (5,129) | 1,922 |
Included in net income (loss) | (175) | (62) |
Excluded from net income (loss) | 0 | 0 |
Other | (33) | |
Impact of net unrealized investment gains (losses) | 0 | 0 |
Net unrealized investment gains (losses) excluding OTTI losses | 3,474 | 5,313 |
Net unrealized investment gains (losses) with OTTI losses | (8) | (7) |
End of year | 3,466 | 5,306 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | DAC | ||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | ||
Beginning of year | (1,548) | (894) |
Impact of net unrealized investment gains (losses) | 599 | (28) |
Net unrealized investment gains (losses) excluding OTTI losses | (949) | (922) |
End of year | (947) | (921) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Policyholders’ Liabilities | ||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | ||
Beginning of year | (1,065) | (189) |
Impact of net unrealized investment gains (losses) | 757 | (165) |
Net unrealized investment gains (losses) excluding OTTI losses | (308) | (354) |
End of year | (307) | (353) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Deferred Income Tax Asset (Liability) | ||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | ||
Beginning of year | (1,302) | (497) |
Impact of net unrealized investment gains (losses) | 836 | (351) |
Net unrealized investment gains (losses) excluding OTTI losses | (466) | (848) |
End of year | (465) | (847) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | ||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | ||
Beginning of year | 4,896 | 1,873 |
Net investment gains (losses) arising during the period | (5,129) | 1,922 |
Included in net income (loss) | (175) | (62) |
Excluded from net income (loss) | 0 | 0 |
Other | (33) | |
Impact of net unrealized investment gains (losses) | 2,192 | (544) |
Net unrealized investment gains (losses) excluding OTTI losses | 1,751 | 3,189 |
Net unrealized investment gains (losses) with OTTI losses | (4) | (4) |
End of year | 1,747 | 3,185 |
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | DAC | ||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | ||
Net unrealized investment gains (losses) with OTTI losses | 2 | 1 |
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Policyholders’ Liabilities | ||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | ||
Net unrealized investment gains (losses) with OTTI losses | 1 | 1 |
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Deferred Income Tax Asset (Liability) | ||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | ||
Net unrealized investment gains (losses) with OTTI losses | $ 1 | $ 1 |
INVESTMENTS - Fixed Maturities
INVESTMENTS - Fixed Maturities Available-for-sale (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | $ 19,962 | $ 4,890 |
Less than 12 Months, Gross Unrealized Losses | 848 | 65 |
12 Months or Longer, Fair Value | 514 | 445 |
12 Months or Longer, Gross Unrealized Losses | 34 | 40 |
Total Fair Value | 20,476 | 5,335 |
Total Gross Unrealized Losses | 882 | 105 |
Corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 12,951 | 2,990 |
Less than 12 Months, Gross Unrealized Losses | 611 | 53 |
12 Months or Longer, Fair Value | 468 | 337 |
12 Months or Longer, Gross Unrealized Losses | 30 | 33 |
Total Fair Value | 13,419 | 3,327 |
Total Gross Unrealized Losses | 641 | 86 |
U.S. Treasury, government and agency | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 5,043 | 885 |
Less than 12 Months, Gross Unrealized Losses | 175 | 5 |
12 Months or Longer, Fair Value | 0 | 0 |
12 Months or Longer, Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 5,043 | 885 |
Total Gross Unrealized Losses | 175 | 5 |
State and Political Subdivisions | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 117 | |
Less than 12 Months, Gross Unrealized Losses | 7 | |
12 Months or Longer, Fair Value | 0 | |
12 Months or Longer, Gross Unrealized Losses | 0 | |
Total Fair Value | 117 | |
Total Gross Unrealized Losses | 7 | |
Foreign governments | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 424 | 153 |
Less than 12 Months, Gross Unrealized Losses | 35 | 2 |
12 Months or Longer, Fair Value | 29 | 21 |
12 Months or Longer, Gross Unrealized Losses | 4 | 4 |
Total Fair Value | 453 | 174 |
Total Gross Unrealized Losses | 39 | 6 |
Asset-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 649 | 809 |
Less than 12 Months, Gross Unrealized Losses | 2 | 4 |
12 Months or Longer, Fair Value | 17 | 76 |
12 Months or Longer, Gross Unrealized Losses | 0 | 1 |
Total Fair Value | 666 | 885 |
Total Gross Unrealized Losses | 2 | 5 |
Commercial mortgage-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 778 | |
Less than 12 Months, Gross Unrealized Losses | 18 | |
12 Months or Longer, Fair Value | 0 | |
12 Months or Longer, Gross Unrealized Losses | 0 | |
Total Fair Value | 778 | |
Total Gross Unrealized Losses | 18 | |
Redeemable Preferred Stock | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | 53 |
Less than 12 Months, Gross Unrealized Losses | 0 | 1 |
12 Months or Longer, Fair Value | 0 | 11 |
12 Months or Longer, Gross Unrealized Losses | 0 | 2 |
Total Fair Value | 0 | 64 |
Total Gross Unrealized Losses | $ 0 | $ 3 |
INVESTMENTS - Mortgage Loans (D
INVESTMENTS - Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, end of period | $ 74 | $ 46 |
Commercial Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 77 | 33 |
Current-period provision for expected credit losses | (7) | 11 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | (1) |
Net change in allowance | (7) | 10 |
Balance, end of period | 70 | 43 |
Agricultural Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 4 | 3 |
Current-period provision for expected credit losses | 0 | 0 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Net change in allowance | 0 | 0 |
Balance, end of period | $ 4 | $ 3 |
INVESTMENTS - Credit Quality (D
INVESTMENTS - Credit Quality (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | $ 456 | |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 456 | |
Commercial Mortgage Loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 313 | $ 1,615 |
Fiscal year before current fiscal year | 1,615 | 814 |
Two years before current fiscal year | 820 | 1,267 |
Three years before current fiscal year | 1,267 | 1,204 |
Fouryears before current fiscal year | 1,206 | 2,580 |
Prior | 5,428 | 3,028 |
Total Loans | 10,649 | 10,508 |
Age Analysis of Past Due Mortgage Loan | ||
Total Past Due | 0 | 162 |
Current | 10,649 | 10,346 |
Total | 10,649 | 10,508 |
Non-accruing Loans | 0 | 0 |
Total Loans | 10,649 | 10,508 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Commercial Mortgage Loans | 30-59 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Past Due | 0 | 162 |
Commercial Mortgage Loans | 60-89 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Past Due | 0 | 0 |
Commercial Mortgage Loans | 90 Days Or Greater | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Past Due | 0 | 0 |
Commercial Mortgage Loans | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 226 | 1,230 |
Fiscal year before current fiscal year | 1,230 | 492 |
Two years before current fiscal year | 492 | 772 |
Three years before current fiscal year | 772 | 268 |
Fouryears before current fiscal year | 268 | 1,959 |
Prior | 3,336 | 1,230 |
Total Loans | 6,324 | 5,951 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 6,324 | 5,951 |
Commercial Mortgage Loans | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 227 |
Fiscal year before current fiscal year | 227 | 83 |
Two years before current fiscal year | 90 | 118 |
Three years before current fiscal year | 118 | 378 |
Fouryears before current fiscal year | 378 | 184 |
Prior | 438 | 329 |
Total Loans | 1,251 | 1,319 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 1,251 | 1,319 |
Commercial Mortgage Loans | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 98 |
Fiscal year before current fiscal year | 98 | 138 |
Two years before current fiscal year | 138 | 187 |
Three years before current fiscal year | 187 | 479 |
Fouryears before current fiscal year | 424 | 437 |
Prior | 758 | 616 |
Total Loans | 1,605 | 1,955 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 1,605 | 1,955 |
Commercial Mortgage Loans | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 60 |
Fiscal year before current fiscal year | 60 | 57 |
Two years before current fiscal year | 56 | 154 |
Three years before current fiscal year | 154 | 79 |
Fouryears before current fiscal year | 81 | 0 |
Prior | 699 | 658 |
Total Loans | 1,050 | 1,008 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 1,050 | 1,008 |
Commercial Mortgage Loans | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 87 | 0 |
Fiscal year before current fiscal year | 0 | 44 |
Two years before current fiscal year | 44 | 0 |
Three years before current fiscal year | 0 | 0 |
Fouryears before current fiscal year | 0 | 0 |
Prior | 124 | 123 |
Total Loans | 255 | 167 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 255 | 167 |
Commercial Mortgage Loans | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 36 |
Three years before current fiscal year | 36 | 0 |
Fouryears before current fiscal year | 55 | 0 |
Prior | 73 | 72 |
Total Loans | 164 | 108 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 164 | 108 |
Commercial Mortgage Loans | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 324 |
Fouryears before current fiscal year | 324 | 187 |
Prior | 789 | 505 |
Total Loans | 1,113 | 1,016 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 1,113 | 1,016 |
Commercial Mortgage Loans | 0% - 50% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 953 | 856 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 953 | 856 |
Commercial Mortgage Loans | 0% - 50% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Commercial Mortgage Loans | 0% - 50% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 160 | 160 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 160 | 160 |
Commercial Mortgage Loans | 0% - 50% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Commercial Mortgage Loans | 0% - 50% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Commercial Mortgage Loans | 0% - 50% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Commercial Mortgage Loans | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 313 | 1,294 |
Fiscal year before current fiscal year | 1,294 | 357 |
Two years before current fiscal year | 364 | 803 |
Three years before current fiscal year | 803 | 656 |
Fouryears before current fiscal year | 657 | 2,190 |
Prior | 3,681 | 1,697 |
Total Loans | 7,112 | 6,997 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 7,112 | 6,997 |
Commercial Mortgage Loans | 50% - 70% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 4,370 | 4,095 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 4,370 | 4,095 |
Commercial Mortgage Loans | 50% - 70% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 877 | 870 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 877 | 870 |
Commercial Mortgage Loans | 50% - 70% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 1,156 | 1,452 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 1,156 | 1,452 |
Commercial Mortgage Loans | 50% - 70% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 597 | 555 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 597 | 555 |
Commercial Mortgage Loans | 50% - 70% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 112 | 25 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 112 | 25 |
Commercial Mortgage Loans | 50% - 70% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Commercial Mortgage Loans | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 321 |
Fiscal year before current fiscal year | 321 | 457 |
Two years before current fiscal year | 456 | 452 |
Three years before current fiscal year | 452 | 219 |
Fouryears before current fiscal year | 220 | 203 |
Prior | 668 | 538 |
Total Loans | 2,117 | 2,190 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 2,117 | 2,190 |
Commercial Mortgage Loans | 70% - 90% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 844 | 844 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 844 | 844 |
Commercial Mortgage Loans | 70% - 90% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 374 | 449 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 374 | 449 |
Commercial Mortgage Loans | 70% - 90% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 289 | 343 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 289 | 343 |
Commercial Mortgage Loans | 70% - 90% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 376 | 376 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 376 | 376 |
Commercial Mortgage Loans | 70% - 90% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 143 | 142 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 143 | 142 |
Commercial Mortgage Loans | 70% - 90% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 91 | 36 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 91 | 36 |
Commercial Mortgage Loans | 90% plus | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 12 |
Three years before current fiscal year | 12 | 5 |
Fouryears before current fiscal year | 5 | 0 |
Prior | 290 | 288 |
Total Loans | 307 | 305 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 307 | 305 |
Commercial Mortgage Loans | 90% plus | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 157 | 156 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 157 | 156 |
Commercial Mortgage Loans | 90% plus | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 77 | 77 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 77 | 77 |
Commercial Mortgage Loans | 90% plus | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Commercial Mortgage Loans | 90% plus | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 73 | 72 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 73 | 72 |
Agricultural Mortgage Loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 92 | 495 |
Fiscal year before current fiscal year | 493 | 264 |
Two years before current fiscal year | 251 | 333 |
Three years before current fiscal year | 313 | 259 |
Fouryears before current fiscal year | 241 | 360 |
Prior | 1,315 | 1,021 |
Total Loans | 2,705 | 2,732 |
Age Analysis of Past Due Mortgage Loan | ||
Total Past Due | 94 | 112 |
Current | 2,611 | 2,620 |
Total | 2,705 | 2,732 |
Non-accruing Loans | 0 | 0 |
Total Loans | 2,705 | 2,732 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Agricultural Mortgage Loans | 30-59 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Past Due | 10 | 76 |
Agricultural Mortgage Loans | 60-89 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Past Due | 4 | 7 |
Agricultural Mortgage Loans | 90 Days Or Greater | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Past Due | 80 | 29 |
Agricultural Mortgage Loans | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 11 | 67 |
Fiscal year before current fiscal year | 67 | 26 |
Two years before current fiscal year | 26 | 36 |
Three years before current fiscal year | 24 | 38 |
Fouryears before current fiscal year | 34 | 71 |
Prior | 233 | 167 |
Total Loans | 395 | 405 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 395 | 405 |
Agricultural Mortgage Loans | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 19 | 38 |
Fiscal year before current fiscal year | 37 | 35 |
Two years before current fiscal year | 31 | 14 |
Three years before current fiscal year | 24 | 15 |
Fouryears before current fiscal year | 15 | 20 |
Prior | 94 | 82 |
Total Loans | 220 | 204 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 220 | 204 |
Agricultural Mortgage Loans | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 25 | 117 |
Fiscal year before current fiscal year | 117 | 38 |
Two years before current fiscal year | 33 | 41 |
Three years before current fiscal year | 39 | 45 |
Fouryears before current fiscal year | 43 | 52 |
Prior | 249 | 209 |
Total Loans | 506 | 502 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 506 | 502 |
Agricultural Mortgage Loans | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 22 | 183 |
Fiscal year before current fiscal year | 182 | 120 |
Two years before current fiscal year | 118 | 141 |
Three years before current fiscal year | 124 | 90 |
Fouryears before current fiscal year | 82 | 142 |
Prior | 428 | 313 |
Total Loans | 956 | 989 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 956 | 989 |
Agricultural Mortgage Loans | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 15 | 86 |
Fiscal year before current fiscal year | 86 | 35 |
Two years before current fiscal year | 34 | 93 |
Three years before current fiscal year | 91 | 70 |
Fouryears before current fiscal year | 66 | 57 |
Prior | 267 | 233 |
Total Loans | 559 | 574 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 559 | 574 |
Agricultural Mortgage Loans | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 4 |
Fiscal year before current fiscal year | 4 | 10 |
Two years before current fiscal year | 9 | 8 |
Three years before current fiscal year | 11 | 1 |
Fouryears before current fiscal year | 1 | 18 |
Prior | 44 | 17 |
Total Loans | 69 | 58 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 69 | 58 |
Agricultural Mortgage Loans | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 51 | 218 |
Fiscal year before current fiscal year | 218 | 135 |
Two years before current fiscal year | 131 | 169 |
Three years before current fiscal year | 152 | 157 |
Fouryears before current fiscal year | 140 | 236 |
Prior | 853 | 652 |
Total Loans | 1,545 | 1,567 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 1,545 | 1,567 |
Agricultural Mortgage Loans | 0% - 50% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 297 | 297 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 297 | 297 |
Agricultural Mortgage Loans | 0% - 50% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 99 | 108 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 99 | 108 |
Agricultural Mortgage Loans | 0% - 50% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 301 | 291 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 301 | 291 |
Agricultural Mortgage Loans | 0% - 50% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 510 | 520 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 510 | 520 |
Agricultural Mortgage Loans | 0% - 50% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 300 | 317 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 300 | 317 |
Agricultural Mortgage Loans | 0% - 50% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 38 | 34 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 38 | 34 |
Agricultural Mortgage Loans | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 41 | 277 |
Fiscal year before current fiscal year | 275 | 129 |
Two years before current fiscal year | 120 | 161 |
Three years before current fiscal year | 158 | 102 |
Fouryears before current fiscal year | 101 | 124 |
Prior | 444 | 351 |
Total Loans | 1,139 | 1,144 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 1,139 | 1,144 |
Agricultural Mortgage Loans | 50% - 70% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 98 | 108 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 98 | 108 |
Agricultural Mortgage Loans | 50% - 70% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 119 | 94 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 119 | 94 |
Agricultural Mortgage Loans | 50% - 70% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 205 | 211 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 205 | 211 |
Agricultural Mortgage Loans | 50% - 70% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 446 | 450 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 446 | 450 |
Agricultural Mortgage Loans | 50% - 70% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 259 | 257 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 259 | 257 |
Agricultural Mortgage Loans | 50% - 70% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 12 | 24 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 12 | 24 |
Agricultural Mortgage Loans | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 3 |
Three years before current fiscal year | 3 | 0 |
Fouryears before current fiscal year | 0 | 0 |
Prior | 18 | 18 |
Total Loans | 21 | 21 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 21 | 21 |
Agricultural Mortgage Loans | 70% - 90% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 2 | 2 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 2 | 2 |
Agricultural Mortgage Loans | 70% - 90% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 19 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 19 |
Agricultural Mortgage Loans | 70% - 90% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 19 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 19 | 0 |
Agricultural Mortgage Loans | 90% plus | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Fouryears before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Mortgages Loan | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 405 | 2,110 |
Fiscal year before current fiscal year | 2,108 | 1,078 |
Two years before current fiscal year | 1,071 | 1,600 |
Three years before current fiscal year | 1,580 | 1,463 |
Fouryears before current fiscal year | 1,447 | 2,940 |
Prior | 6,743 | 4,049 |
Total Loans | 13,354 | 13,240 |
Age Analysis of Past Due Mortgage Loan | ||
Total Past Due | 94 | 274 |
Current | 13,260 | 12,966 |
Total | 13,354 | 13,240 |
Non-accruing Loans | 0 | 0 |
Total Loans | 13,354 | 13,240 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Mortgages Loan | 30-59 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Past Due | 10 | 238 |
Mortgages Loan | 60-89 Days | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Past Due | 4 | 7 |
Mortgages Loan | 90 Days Or Greater | ||
Age Analysis of Past Due Mortgage Loan | ||
Total Past Due | 80 | 29 |
Mortgages Loan | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 237 | 1,297 |
Fiscal year before current fiscal year | 1,297 | 518 |
Two years before current fiscal year | 518 | 808 |
Three years before current fiscal year | 796 | 306 |
Fouryears before current fiscal year | 302 | 2,030 |
Prior | 3,569 | 1,397 |
Total Loans | 6,719 | 6,356 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 6,719 | 6,356 |
Mortgages Loan | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 19 | 265 |
Fiscal year before current fiscal year | 264 | 118 |
Two years before current fiscal year | 121 | 132 |
Three years before current fiscal year | 142 | 393 |
Fouryears before current fiscal year | 393 | 204 |
Prior | 532 | 411 |
Total Loans | 1,471 | 1,523 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 1,471 | 1,523 |
Mortgages Loan | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 25 | 215 |
Fiscal year before current fiscal year | 215 | 176 |
Two years before current fiscal year | 171 | 228 |
Three years before current fiscal year | 226 | 524 |
Fouryears before current fiscal year | 467 | 489 |
Prior | 1,007 | 825 |
Total Loans | 2,111 | 2,457 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 2,111 | 2,457 |
Mortgages Loan | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 22 | 243 |
Fiscal year before current fiscal year | 242 | 177 |
Two years before current fiscal year | 174 | 295 |
Three years before current fiscal year | 278 | 169 |
Fouryears before current fiscal year | 163 | 142 |
Prior | 1,127 | 971 |
Total Loans | 2,006 | 1,997 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 2,006 | 1,997 |
Mortgages Loan | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 102 | 86 |
Fiscal year before current fiscal year | 86 | 79 |
Two years before current fiscal year | 78 | 93 |
Three years before current fiscal year | 91 | 70 |
Fouryears before current fiscal year | 66 | 57 |
Prior | 391 | 356 |
Total Loans | 814 | 741 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 814 | 741 |
Mortgages Loan | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 4 |
Fiscal year before current fiscal year | 4 | 10 |
Two years before current fiscal year | 9 | 44 |
Three years before current fiscal year | 47 | 1 |
Fouryears before current fiscal year | 56 | 18 |
Prior | 117 | 89 |
Total Loans | 233 | 166 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 233 | 166 |
Mortgages Loan | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 51 | 218 |
Fiscal year before current fiscal year | 218 | 135 |
Two years before current fiscal year | 131 | 169 |
Three years before current fiscal year | 152 | 481 |
Fouryears before current fiscal year | 464 | 423 |
Prior | 1,642 | 1,157 |
Total Loans | 2,658 | 2,583 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 2,658 | 2,583 |
Mortgages Loan | 0% - 50% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 1,250 | 1,153 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 1,250 | 1,153 |
Mortgages Loan | 0% - 50% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 99 | 108 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 99 | 108 |
Mortgages Loan | 0% - 50% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 461 | 451 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 461 | 451 |
Mortgages Loan | 0% - 50% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 510 | 520 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 510 | 520 |
Mortgages Loan | 0% - 50% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 300 | 317 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 300 | 317 |
Mortgages Loan | 0% - 50% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 38 | 34 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 38 | 34 |
Mortgages Loan | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 354 | 1,571 |
Fiscal year before current fiscal year | 1,569 | 486 |
Two years before current fiscal year | 484 | 964 |
Three years before current fiscal year | 961 | 758 |
Fouryears before current fiscal year | 758 | 2,314 |
Prior | 4,125 | 2,048 |
Total Loans | 8,251 | 8,141 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 8,251 | 8,141 |
Mortgages Loan | 50% - 70% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 4,468 | 4,203 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 4,468 | 4,203 |
Mortgages Loan | 50% - 70% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 996 | 964 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 996 | 964 |
Mortgages Loan | 50% - 70% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 1,361 | 1,663 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 1,361 | 1,663 |
Mortgages Loan | 50% - 70% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 1,043 | 1,005 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 1,043 | 1,005 |
Mortgages Loan | 50% - 70% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 371 | 282 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 371 | 282 |
Mortgages Loan | 50% - 70% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 12 | 24 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 12 | 24 |
Mortgages Loan | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 321 |
Fiscal year before current fiscal year | 321 | 457 |
Two years before current fiscal year | 456 | 455 |
Three years before current fiscal year | 455 | 219 |
Fouryears before current fiscal year | 220 | 203 |
Prior | 686 | 556 |
Total Loans | 2,138 | 2,211 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 2,138 | 2,211 |
Mortgages Loan | 70% - 90% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 844 | 844 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 844 | 844 |
Mortgages Loan | 70% - 90% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 376 | 451 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 376 | 451 |
Mortgages Loan | 70% - 90% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 289 | 343 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 289 | 343 |
Mortgages Loan | 70% - 90% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 376 | 395 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 376 | 395 |
Mortgages Loan | 70% - 90% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 143 | 142 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 143 | 142 |
Mortgages Loan | 70% - 90% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 110 | 36 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 110 | 36 |
Mortgages Loan | 90% plus | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 12 |
Three years before current fiscal year | 12 | 5 |
Fouryears before current fiscal year | 5 | 0 |
Prior | 290 | 288 |
Total Loans | 307 | 305 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 307 | 305 |
Mortgages Loan | 90% plus | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 157 | 156 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 157 | 156 |
Mortgages Loan | 90% plus | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Mortgages Loan | 90% plus | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Mortgages Loan | 90% plus | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 77 | 77 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 77 | 77 |
Mortgages Loan | 90% plus | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 0 | 0 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | 0 | 0 |
Mortgages Loan | 90% plus | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total Loans | 73 | 72 |
Age Analysis of Past Due Mortgage Loan | ||
Total Loans | $ 73 | $ 72 |
INVESTMENTS - Equity Securities
INVESTMENTS - Equity Securities (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ 19 |
Net investment gains (losses) recognized on securities sold during the period | (6) |
Unrealized and realized gains (losses) on equity securities | $ 13 |
INVESTMENTS - Trading Securitie
INVESTMENTS - Trading Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ (70) | $ (186) |
Net investment gains (losses) recognized on securities sold during the period | 29 | 4 |
Unrealized and realized gains (losses) on trading securities | (41) | (182) |
Interest and dividend income from trading securities | 38 | 51 |
Net investment income (loss) from trading securities | $ (3) | $ (131) |
DERIVATIVES - Derivatives by Ca
DERIVATIVES - Derivatives by Category (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 98,693 | $ 107,088 | |
Asset Derivatives | 13,371 | 11,732 | |
Liability Derivatives | 23,418 | 23,954 | |
Net Derivative Gains (Losses) | (2,592) | $ 9,400 | |
Futures | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 5,397 | 4,881 | |
Asset Derivatives | 2 | 0 | |
Liability Derivatives | 1 | 2 | |
Net Derivative Gains (Losses) | (288) | 220 | |
Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 19,308 | 22,456 | |
Asset Derivatives | 5 | 6 | |
Liability Derivatives | 3 | 2 | |
Net Derivative Gains (Losses) | (1,271) | 3,778 | |
Options | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 43,207 | 35,848 | |
Asset Derivatives | 9,764 | 8,396 | |
Liability Derivatives | 4,246 | 3,726 | |
Net Derivative Gains (Losses) | 1,145 | (3,851) | |
Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 13,980 | 23,834 | |
Asset Derivatives | 3 | 553 | |
Liability Derivatives | 2,144 | 656 | |
Net Derivative Gains (Losses) | (2,915) | 3,578 | |
Futures | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 15,096 | 18,571 | |
Asset Derivatives | 0 | 0 | |
Liability Derivatives | 0 | 0 | |
Net Derivative Gains (Losses) | (949) | 1,988 | |
Swaptions | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Asset Derivatives | 0 | 0 | |
Liability Derivatives | 0 | 0 | |
Net Derivative Gains (Losses) | 0 | 9 | |
Credit default swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,129 | 1,087 | |
Asset Derivatives | 18 | 19 | |
Liability Derivatives | 12 | 14 | |
Net Derivative Gains (Losses) | 0 | (1) | |
Foreign currency contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 576 | 411 | |
Asset Derivatives | 9 | 9 | |
Liability Derivatives | 9 | 9 | |
Net Derivative Gains (Losses) | 1 | (2) | |
Margin | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Asset Derivatives | 58 | 49 | |
Liability Derivatives | 0 | 66 | |
Net Derivative Gains (Losses) | 0 | 0 | |
Collateral | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Asset Derivatives | 1,605 | 212 | |
Liability Derivatives | 3,882 | 3,839 | |
Net Derivative Gains (Losses) | 0 | 0 | |
GMIB Reinsurance Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Asset Derivatives | 1,907 | 2,488 | |
Liability Derivatives | 0 | 0 | |
Net Derivative Gains (Losses) | (578) | 726 | |
GMxB Derivative Features’ Liability | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Asset Derivatives | 0 | 0 | |
Liability Derivatives | 7,824 | 11,131 | |
Net Derivative Gains (Losses) | 3,408 | (1,199) | |
Settlement fee | 46 | ||
SCS, SIO, MSO and IUL Indexed Features | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Asset Derivatives | 0 | 0 | |
Liability Derivatives | 5,297 | $ 4,509 | |
Net Derivative Gains (Losses) | $ (1,145) | $ 4,154 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Cash and securities collateral for derivative contract | $ 3,900 | $ 3,800 |
Cash and securities collateral | 1,600 | 212 |
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | ||
Derivative [Line Items] | ||
Initial margin requirement | 248 | 307 |
Us Treasury Notes Ultra Long Bonds And Euro Dollar | ||
Derivative [Line Items] | ||
Initial margin requirement | 125 | 264 |
Euro Stoxx, FTSE100, Topix, ASX200 and EAFE Indices | ||
Derivative [Line Items] | ||
Initial margin requirement | $ 29 | $ 35 |
DERIVATIVES - Offsetting of Fin
DERIVATIVES - Offsetting of Financial Assets and Liabilities and Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives | ||
Assets | ||
Gross Amount Recognized | $ 11,463 | $ 9,244 |
Gross Amount Offset in the Balance Sheets | 10,272 | 8,249 |
Net Amount Presented in the Balance Sheets | 1,191 | 995 |
Gross Amount not Offset in the Balance Sheets | 0 | (53) |
Net Amount | 1,191 | 942 |
Liabilities | ||
Gross Amount Recognized | 10,296 | 8,261 |
Gross Amount Offset in the Balance Sheets | 10,272 | 8,249 |
Net Amount Presented in the Balance Sheets | 24 | 12 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 24 | 12 |
Other financial instruments | ||
Assets | ||
Gross Amount Recognized | 1,722 | 1,733 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 1,722 | 1,733 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 1,722 | 1,733 |
Other invested assets | ||
Assets | ||
Gross Amount Recognized | 13,185 | 10,977 |
Gross Amount Offset in the Balance Sheets | 10,272 | 8,249 |
Net Amount Presented in the Balance Sheets | 2,913 | 2,728 |
Gross Amount not Offset in the Balance Sheets | 0 | (53) |
Net Amount | 2,913 | 2,675 |
Other financial liabilities | ||
Liabilities | ||
Gross Amount Recognized | 3,966 | 3,674 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 3,966 | 3,674 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 3,966 | 3,674 |
Other liabilities | ||
Liabilities | ||
Gross Amount Recognized | 14,262 | 11,935 |
Gross Amount Offset in the Balance Sheets | 10,272 | 8,249 |
Net Amount Presented in the Balance Sheets | 3,990 | 3,686 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | $ 3,990 | $ 3,686 |
CLOSED BLOCK - Closed Block Sum
CLOSED BLOCK - Closed Block Summarized Financial Information (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Closed Block Liabilities: | ||||
Future policy benefits, policyholders’ account balances and other | $ 6,133 | $ 6,201 | ||
Policyholder dividend obligation | 28 | 160 | $ 2 | $ 2 |
Other liabilities | 63 | 39 | ||
Total Closed Block liabilities | 6,224 | 6,400 | ||
Assets Designated to the Closed Block: | ||||
Fixed maturities AFS, at fair value (amortized cost of $3,381 and $3,359) (allowance for credit losses of $0) | 3,623 | 3,718 | ||
Mortgage loans on real estate (net of allowance for credit losses of $6 and $6) | 1,761 | 1,773 | ||
Policy loans | 636 | 648 | ||
Cash and other invested assets | 19 | 28 | ||
Other assets | 128 | 169 | ||
Total assets designated to the Closed Block | 6,167 | 6,336 | ||
Excess of Closed Block liabilities over assets designated to the Closed Block | 57 | 64 | ||
Amounts included in AOCI: | ||||
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $28 and $160; and net of income tax: $(45) and $(42) | 179 | 167 | ||
Maximum future earnings to be recognized from Closed Block assets and liabilities | 236 | 231 | ||
Fixed maturity available for sale, amortized cost | 3,381 | 3,359 | ||
Fixed maturities available-for-sale, allowance for credit losses | 0 | |||
Mortgage loans, credit losses | (6) | (6) | ||
Policyholder dividend obligation | 28 | 160 | $ 2 | $ 2 |
Closed block operations, income taxes | $ (45) | $ (42) |
CLOSED BLOCK - Closed Block Rev
CLOSED BLOCK - Closed Block Revenues and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Premiums and other income | $ 39 | $ 42 |
Net investment income (loss) | 60 | 66 |
Investment gains (losses), net | 0 | 0 |
Total revenues | 99 | 108 |
Benefits and Other Deductions: | ||
Policyholders’ benefits and dividends | 106 | 103 |
Other operating costs and expenses | 1 | 0 |
Total benefits and other deductions | 107 | 103 |
Net income (loss), before income taxes | (8) | 5 |
Income tax (expense) benefit | (1) | 0 |
Net income (loss) | $ (9) | $ 5 |
CLOSED BLOCK - Reconciliation o
CLOSED BLOCK - Reconciliation of Policyholder Dividend Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Movement in Closed Block Dividend Obligation [Roll Forward] | ||
Balances, beginning of year | $ 160 | $ 2 |
Unrealized investment gains (losses) | (132) | 0 |
Balances, End of year | $ 28 | $ 2 |
INSURANCE LIABILITIES - Rollfor
INSURANCE LIABILITIES - Rollforward of Liability and Reinsurance Ceded (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
GMDB Direct | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Opening Balance | $ 5,086 | $ 5,046 | $ 5,097 | $ 4,780 |
Paid guarantee benefits | (133) | (111) | ||
Other changes in reserves | 122 | 377 | ||
Closing Balance | 5,086 | 5,046 | 5,097 | 4,780 |
GMDB Assumed | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Opening Balance | 72 | 72 | 72 | 76 |
Paid guarantee benefits | (6) | (6) | ||
Other changes in reserves | 6 | 2 | ||
Closing Balance | 72 | 72 | 72 | 76 |
GMDB Ceded | ||||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||||
Opening Balance | (88) | (104) | ||
Paid guarantee benefits | 3 | 5 | ||
Other changes in reserve | 1 | (11) | ||
Ending Balance | (84) | (110) | ||
GMIB Direct | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Opening Balance | 5,966 | 6,274 | 6,026 | 4,673 |
Paid guarantee benefits | (92) | (74) | ||
Other changes in reserves | 32 | 1,675 | ||
Closing Balance | 5,966 | 6,274 | 6,026 | 4,673 |
GMIB Assumed | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Opening Balance | 144 | 219 | 196 | 187 |
Paid guarantee benefits | (52) | (1) | ||
Other changes in reserves | 0 | 33 | ||
Closing Balance | 144 | 219 | $ 196 | $ 187 |
GMIB Ceded | ||||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||||
Opening Balance | (2,488) | (2,139) | ||
Paid guarantee benefits | 14 | 20 | ||
Other changes in reserve | 567 | (706) | ||
Ending Balance | $ (1,907) | $ (2,825) |
INSURANCE LIABILITIES - Variabl
INSURANCE LIABILITIES - Variable Annuity Contracts with GMDB and GMIB Features and Buybacks (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate Accounts | $ 103,130 | $ 100,520 |
GMDB | Direct Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 15,950 | |
Separate Accounts | 103,130 | |
Total Account Values | 119,080 | |
NAR, gross | 18,042 | |
NAR, net of amounts reinsured | $ 17,588 | |
Average attained age of contract holders (in years) | 55 years 3 months 18 days | |
Percentage of policyholders over age 70 | 20.40% | |
GMDB | Direct Variable Annuity | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
GMDB | Direct Variable Annuity | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
GMDB | Deferred Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 7,694 | |
NAR, gross | $ 320 | |
Average attained age of contract holders (in years) | 73 years | |
Percentage of policyholders over age 70 | 65.60% | |
GMDB | Deferred Variable Annuity | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
GMDB | Deferred Variable Annuity | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 10.00% | |
GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate Accounts | $ 62,259 | $ 61,186 |
GMIB | Direct Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 228 | |
Separate Accounts | 62,259 | |
Total Account Values | 62,487 | |
NAR, gross | 9,278 | |
NAR, net of amounts reinsured | $ 8,054 | |
Average attained age of contract holders (in years) | 68 years 1 month 6 days | |
Weighted average years remaining until annuitization (in years) | 2 years 4 months 24 days | |
GMIB | Direct Variable Annuity | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
GMIB | Direct Variable Annuity | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
GMIB | Deferred Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 2,438 | |
NAR, gross | $ 242 | |
Average attained age of contract holders (in years) | 71 years | |
Percentage of policyholders over age 70 | 59.70% | |
GMIB | Deferred Variable Annuity | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.30% | |
GMIB | Deferred Variable Annuity | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Return of Premium | GMDB | Direct Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 15,647 | |
Separate Accounts | 55,738 | |
Total Account Values | 71,385 | |
NAR, gross | 96 | |
NAR, net of amounts reinsured | $ 96 | |
Average attained age of contract holders (in years) | 51 years 4 months 24 days | |
Percentage of policyholders over age 70 | 11.40% | |
Return of Premium | GMDB | Deferred Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 975 | |
NAR, gross | $ 3 | |
Average attained age of contract holders (in years) | 68 years | |
Percentage of policyholders over age 70 | 45.70% | |
Return of Premium | GMIB | Direct Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 0 | |
Separate Accounts | 0 | |
Total Account Values | 0 | |
NAR, gross | 0 | |
NAR, net of amounts reinsured | 0 | |
Return of Premium | GMIB | Deferred Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 966 | |
NAR, gross | $ 1 | |
Average attained age of contract holders (in years) | 72 years | |
Percentage of policyholders over age 70 | 65.00% | |
Ratchet | GMDB | Direct Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 86 | |
Separate Accounts | 9,713 | |
Total Account Values | 9,799 | |
NAR, gross | 35 | |
NAR, net of amounts reinsured | $ 33 | |
Average attained age of contract holders (in years) | 68 years 6 months | |
Percentage of policyholders over age 70 | 49.10% | |
Ratchet | GMDB | Deferred Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 5,294 | |
NAR, gross | $ 202 | |
Average attained age of contract holders (in years) | 73 years | |
Percentage of policyholders over age 70 | 66.00% | |
Ratchet | GMIB | Direct Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 0 | |
Separate Accounts | 0 | |
Total Account Values | 0 | |
NAR, gross | 0 | |
NAR, net of amounts reinsured | 0 | |
Ratchet | GMIB | Deferred Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 45 | |
NAR, gross | $ 0 | |
Average attained age of contract holders (in years) | 75 years | |
Percentage of policyholders over age 70 | 63.50% | |
Roll-Up | GMDB | Direct Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 53 | |
Separate Accounts | 3,350 | |
Total Account Values | 3,403 | |
NAR, gross | 1,509 | |
NAR, net of amounts reinsured | $ 1,057 | |
Average attained age of contract holders (in years) | 75 years | |
Percentage of policyholders over age 70 | 70.80% | |
Roll-Up | GMDB | Direct Variable Annuity | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Roll-Up | GMDB | Direct Variable Annuity | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.00% | |
Roll-Up | GMDB | Deferred Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 261 | |
NAR, gross | $ 12 | |
Average attained age of contract holders (in years) | 78 years | |
Percentage of policyholders over age 70 | 80.40% | |
Roll-Up | GMDB | Deferred Variable Annuity | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Roll-Up | GMDB | Deferred Variable Annuity | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 10.00% | |
Roll-Up | GMIB | Direct Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 16 | |
Separate Accounts | 25,457 | |
Total Account Values | 25,473 | |
NAR, gross | 680 | |
NAR, net of amounts reinsured | $ 219 | |
Average attained age of contract holders (in years) | 64 years 4 months 24 days | |
Weighted average years remaining until annuitization (in years) | 5 years 7 months 6 days | |
Roll-Up | GMIB | Direct Variable Annuity | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Roll-Up | GMIB | Direct Variable Annuity | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.00% | |
Roll-Up | GMIB | Deferred Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 229 | |
NAR, gross | $ 19 | |
Average attained age of contract holders (in years) | 72 years | |
Percentage of policyholders over age 70 | 61.30% | |
Roll-Up | GMIB | Deferred Variable Annuity | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.30% | |
Roll-Up | GMIB | Deferred Variable Annuity | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Combo | GMDB | Direct Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 164 | |
Separate Accounts | 34,329 | |
Total Account Values | 34,493 | |
NAR, gross | 16,402 | |
NAR, net of amounts reinsured | $ 16,402 | |
Average attained age of contract holders (in years) | 70 years 4 months 24 days | |
Percentage of policyholders over age 70 | 55.00% | |
Combo | GMDB | Direct Variable Annuity | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Combo | GMDB | Direct Variable Annuity | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Combo | GMDB | Deferred Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 1,164 | |
NAR, gross | $ 103 | |
Average attained age of contract holders (in years) | 76 years | |
Percentage of policyholders over age 70 | 77.20% | |
Combo | GMDB | Deferred Variable Annuity | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 5.00% | |
Combo | GMDB | Deferred Variable Annuity | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 10.00% | |
Combo | GMIB | Direct Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 212 | |
Separate Accounts | 36,802 | |
Total Account Values | 37,014 | |
NAR, gross | 8,598 | |
NAR, net of amounts reinsured | $ 7,835 | |
Average attained age of contract holders (in years) | 70 years 3 months 18 days | |
Weighted average years remaining until annuitization (in years) | 7 months 6 days | |
Combo | GMIB | Direct Variable Annuity | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Combo | GMIB | Direct Variable Annuity | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Combo | GMIB | Deferred Variable Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 1,198 | |
NAR, gross | $ 222 | |
Average attained age of contract holders (in years) | 70 years | |
Percentage of policyholders over age 70 | 55.00% | |
Combo | GMIB | Deferred Variable Annuity | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.00% | |
Combo | GMIB | Deferred Variable Annuity | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.00% |
INSURANCE LIABILITIES - Separat
INSURANCE LIABILITIES - Separate Account Investments, Hedging Programs and Variable and Interest-Sensitive Live Insurance Policies (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | $ 103,130 | $ 100,520 | |
GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 62,259 | 61,186 | |
Direct Liabilities For Guarantees | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Opening Balance | 1,022 | $ 898 | |
Paid guarantee benefits | (15) | (13) | |
Other changes in reserves | 43 | 39 | |
Closing Balance | 1,050 | $ 924 | |
Equity | GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 48,656 | 46,850 | |
Equity | GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 19,246 | 18,771 | |
Fixed income | GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 5,362 | 5,506 | |
Fixed income | GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 2,584 | 2,701 | |
Balanced | GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 48,016 | 47,053 | |
Balanced | GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 40,157 | 39,439 | |
Other | GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 1,096 | 1,111 | |
Other | GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | $ 272 | $ 275 |
FAIR VALUE DISCLOSURES - Assets
FAIR VALUE DISCLOSURES - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Investments: | |||
Fixed maturities available for sale, at fair value | $ 77,161 | $ 81,638 | |
Fixed maturities, at fair value using the fair value option | [1] | 844 | 389 |
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | [1] | 323 | 313 |
Accrued interest payable for notes issued by consolidated variable interest entity | (2) | 1 | |
Carrying Value | |||
Liabilities: | |||
Short-term | 3,837 | 4,115 | |
Carrying Value | Collateralized Loan Obligations | |||
Liabilities: | |||
Short-term | 185 | ||
U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 16,004 | 16,118 | |
State and Political Subdivisions | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 640 | 635 | |
Foreign governments | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 1,074 | 1,103 | |
Residential mortgage-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 130 | 143 | |
Asset-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 4,679 | 3,611 | |
Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 1,490 | 1,203 | |
Redeemable Preferred Stock | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 52 | 666 | |
Recurring | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 77,161 | 81,638 | |
Fixed maturities, at fair value using the fair value option | 844 | 389 | |
Other equity investments | 870 | 84 | |
Trading securities, at fair value | 4,821 | 5,553 | |
Other invested assets: | 3,797 | 4,994 | |
Cash equivalents | 5,362 | 4,606 | |
Segregated securities | 1,413 | 1,753 | |
GMIB reinsurance contracts asset | 1,907 | 2,488 | |
Separate Accounts assets | 139,228 | 135,373 | |
Total Assets | 235,403 | 236,878 | |
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 506 | ||
Contingent payment arrangements | 36 | 28 | |
Total Liabilities | 13,683 | 15,988 | |
Recurring | Corporate | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 53,092 | 58,159 | |
Recurring | U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 16,004 | 16,118 | |
Recurring | State and Political Subdivisions | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 640 | 635 | |
Recurring | Foreign governments | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 1,074 | 1,103 | |
Recurring | Residential mortgage-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 130 | 143 | |
Recurring | Asset-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 4,679 | 3,611 | |
Recurring | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 1,490 | 1,203 | |
Recurring | Redeemable Preferred Stock | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 52 | 666 | |
Recurring | Short-term investments | |||
Investments: | |||
Other invested assets: | 87 | 102 | |
Recurring | Assets of consolidated VIEs/VOEs | |||
Investments: | |||
Other invested assets: | 324 | 318 | |
Recurring | Swap | |||
Investments: | |||
Other invested assets: | (2,139) | (99) | |
Recurring | Credit default swaps | |||
Investments: | |||
Other invested assets: | 6 | 5 | |
Recurring | Future | |||
Investments: | |||
Other invested assets: | 1 | (2) | |
Recurring | Options Held | |||
Investments: | |||
Other invested assets: | 5,518 | 4,670 | |
Recurring | Swaption | |||
Investments: | |||
Other invested assets: | 0 | ||
Recurring | GMxB derivative features’ liability | |||
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 312 | ||
Guarantees | 7,824 | 11,131 | |
Recurring | SCS, SIO, MSO and IUL indexed features liability | |||
Liabilities: | |||
Guarantees | 5,297 | 4,509 | |
Recurring | Level 1 | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 0 | 404 | |
Fixed maturities, at fair value using the fair value option | 0 | 0 | |
Other equity investments | 402 | 13 | |
Trading securities, at fair value | 300 | 441 | |
Other invested assets: | 54 | 72 | |
Cash equivalents | 4,308 | 4,309 | |
Segregated securities | 0 | 0 | |
GMIB reinsurance contracts asset | 0 | 0 | |
Separate Accounts assets | 136,830 | 132,698 | |
Total Assets | 141,894 | 137,937 | |
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 0 | ||
Contingent payment arrangements | 0 | 0 | |
Total Liabilities | 14 | 2 | |
Recurring | Level 1 | Corporate | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Recurring | Level 1 | U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Recurring | Level 1 | State and Political Subdivisions | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Recurring | Level 1 | Foreign governments | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Recurring | Level 1 | Residential mortgage-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Recurring | Level 1 | Asset-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Recurring | Level 1 | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Recurring | Level 1 | Redeemable Preferred Stock | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 0 | 404 | |
Recurring | Level 1 | Short-term investments | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | Assets of consolidated VIEs/VOEs | |||
Investments: | |||
Other invested assets: | 53 | 74 | |
Recurring | Level 1 | Swap | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | Credit default swaps | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | Future | |||
Investments: | |||
Other invested assets: | 1 | (2) | |
Recurring | Level 1 | Options Held | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | Swaption | |||
Investments: | |||
Other invested assets: | 0 | ||
Recurring | Level 1 | GMxB derivative features’ liability | |||
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 0 | ||
Guarantees | 0 | 0 | |
Recurring | Level 1 | SCS, SIO, MSO and IUL indexed features liability | |||
Liabilities: | |||
Guarantees | 0 | 0 | |
Recurring | Level 2 | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 75,799 | 79,473 | |
Fixed maturities, at fair value using the fair value option | 703 | 309 | |
Other equity investments | 394 | 0 | |
Trading securities, at fair value | 4,482 | 5,073 | |
Other invested assets: | 3,732 | 4,908 | |
Cash equivalents | 1,054 | 297 | |
Segregated securities | 1,413 | 1,753 | |
GMIB reinsurance contracts asset | 0 | 0 | |
Separate Accounts assets | 2,398 | 2,674 | |
Total Assets | 89,975 | 94,487 | |
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 506 | ||
Contingent payment arrangements | 0 | 0 | |
Total Liabilities | 5,809 | 4,827 | |
Recurring | Level 2 | Corporate | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 51,837 | 56,457 | |
Recurring | Level 2 | U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 16,004 | 16,118 | |
Recurring | Level 2 | State and Political Subdivisions | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 602 | 596 | |
Recurring | Level 2 | Foreign governments | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 1,074 | 1,103 | |
Recurring | Level 2 | Residential mortgage-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 130 | 143 | |
Recurring | Level 2 | Asset-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 4,614 | 3,591 | |
Recurring | Level 2 | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 1,486 | 1,203 | |
Recurring | Level 2 | Redeemable Preferred Stock | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 52 | 262 | |
Recurring | Level 2 | Short-term investments | |||
Investments: | |||
Other invested assets: | 87 | 101 | |
Recurring | Level 2 | Assets of consolidated VIEs/VOEs | |||
Investments: | |||
Other invested assets: | 260 | 231 | |
Recurring | Level 2 | Swap | |||
Investments: | |||
Other invested assets: | (2,139) | (99) | |
Recurring | Level 2 | Credit default swaps | |||
Investments: | |||
Other invested assets: | 6 | 5 | |
Recurring | Level 2 | Future | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 2 | Options Held | |||
Investments: | |||
Other invested assets: | 5,518 | 4,670 | |
Recurring | Level 2 | Swaption | |||
Investments: | |||
Other invested assets: | 0 | ||
Recurring | Level 2 | GMxB derivative features’ liability | |||
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 312 | ||
Guarantees | 0 | 0 | |
Recurring | Level 2 | SCS, SIO, MSO and IUL indexed features liability | |||
Liabilities: | |||
Guarantees | 5,297 | 4,509 | |
Recurring | Level 3 | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 1,362 | 1,761 | |
Fixed maturities, at fair value using the fair value option | 141 | 80 | |
Other equity investments | 74 | 71 | |
Trading securities, at fair value | 39 | 39 | |
Other invested assets: | 11 | 14 | |
Cash equivalents | 0 | 0 | |
Segregated securities | 0 | 0 | |
GMIB reinsurance contracts asset | 1,907 | 2,488 | |
Separate Accounts assets | 0 | 1 | |
Total Assets | 3,534 | 4,454 | |
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 0 | ||
Contingent payment arrangements | 36 | 28 | |
Total Liabilities | 7,860 | 11,159 | |
Recurring | Level 3 | Corporate | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 1,255 | 1,702 | |
Recurring | Level 3 | U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Recurring | Level 3 | State and Political Subdivisions | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 38 | 39 | |
Recurring | Level 3 | Foreign governments | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Recurring | Level 3 | Residential mortgage-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Recurring | Level 3 | Asset-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 65 | 20 | |
Recurring | Level 3 | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 4 | 0 | |
Recurring | Level 3 | Redeemable Preferred Stock | |||
Investments: | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Recurring | Level 3 | Short-term investments | |||
Investments: | |||
Other invested assets: | 0 | 1 | |
Recurring | Level 3 | Assets of consolidated VIEs/VOEs | |||
Investments: | |||
Other invested assets: | 11 | 13 | |
Recurring | Level 3 | Swap | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Credit default swaps | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Future | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Options Held | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Swaption | |||
Investments: | |||
Other invested assets: | 0 | ||
Recurring | Level 3 | GMxB derivative features’ liability | |||
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 0 | ||
Guarantees | 7,824 | 11,131 | |
Recurring | Level 3 | SCS, SIO, MSO and IUL indexed features liability | |||
Liabilities: | |||
Guarantees | 0 | 0 | |
Recurring | NAV | |||
Investments: | |||
Separate Accounts assets | 365 | 356 | |
Variable Interest Entity, Primary Beneficiary | Recurring | |||
Liabilities: | |||
Guarantees | 20 | 8 | |
Variable Interest Entity, Primary Beneficiary | Recurring | Level 1 | |||
Liabilities: | |||
Guarantees | 14 | 2 | |
Variable Interest Entity, Primary Beneficiary | Recurring | Level 2 | |||
Liabilities: | |||
Guarantees | 6 | 6 | |
Variable Interest Entity, Primary Beneficiary | Recurring | Level 3 | |||
Liabilities: | |||
Guarantees | $ 0 | $ 0 | |
[1] | See Note 2 for details of balances with VIEs. |
FAIR VALUE DISCLOSURES - Narrat
FAIR VALUE DISCLOSURES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Fair value adjustments on GMIB asset | $ 91 | $ 102 | |
Fair value adjustments on GMIB liability | 15 | 19 | |
AFS fixed maturities transferred from Level 3 to Level 2 | 549 | $ 126 | |
AFS fixed maturities transferred from Level 2 to Level 3 | $ 2 | $ 0 | |
Fair value measurement with unobservable inputs reconciliation recurring basis asset transfers percentage | 4.50% | 0.60% | |
Nonrecurring | Level 3 | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Investments, fair value disclosure | $ 774 | $ 743 |
FAIR VALUE DISCLOSURES - Fair V
FAIR VALUE DISCLOSURES - Fair Value Measurement Reconciliation for All Levels (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Total gains (losses), realized and unrealized, included in: | ||
Investment gains (losses), net | $ 182 | $ 65 |
Transfers into level 3 | 2 | 0 |
Transfers out of level 3 | (549) | (126) |
Corporate | ||
Total gains (losses), realized and unrealized, included in: | ||
Other comprehensive income (loss) | 9 | (61) |
Corporate | Level 3 | ||
Total gains (losses), realized and unrealized, included in: | ||
Beginning Balance | 1,702 | 1,257 |
Net investment income (loss) | 1 | 1 |
Investment gains (losses), net | (6) | (2) |
Total realized and unrealized gains (losses) | (5) | (1) |
Other comprehensive income (loss) | 9 | (61) |
Purchases | 165 | 61 |
Sales | (69) | (45) |
Transfers into level 3 | 2 | 0 |
Transfers out of level 3 | (549) | (26) |
Ending Balance | 1,255 | 1,185 |
State and Political Subdivisions | ||
Total gains (losses), realized and unrealized, included in: | ||
Other comprehensive income (loss) | (1) | (2) |
State and Political Subdivisions | Level 3 | ||
Total gains (losses), realized and unrealized, included in: | ||
Beginning Balance | 39 | 39 |
Net investment income (loss) | 0 | 0 |
Investment gains (losses), net | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 |
Other comprehensive income (loss) | (1) | (3) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Transfers into level 3 | 0 | 0 |
Transfers out of level 3 | 0 | 0 |
Ending Balance | 38 | 36 |
Asset-backed | ||
Total gains (losses), realized and unrealized, included in: | ||
Other comprehensive income (loss) | 0 | (8) |
Asset-backed | Level 3 | ||
Total gains (losses), realized and unrealized, included in: | ||
Beginning Balance | 20 | 100 |
Net investment income (loss) | 0 | 0 |
Investment gains (losses), net | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 |
Other comprehensive income (loss) | 0 | (8) |
Purchases | 50 | 48 |
Sales | (5) | 0 |
Transfers into level 3 | 0 | 0 |
Transfers out of level 3 | 0 | (100) |
Ending Balance | 65 | 40 |
Redeemable Preferred Stock | Level 3 | ||
Total gains (losses), realized and unrealized, included in: | ||
Beginning Balance | 0 | 0 |
Net investment income (loss) | 0 | 0 |
Investment gains (losses), net | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Transfers into level 3 | 0 | 0 |
Transfers out of level 3 | 0 | 0 |
Ending Balance | 0 | 0 |
CMBS | Level 3 | ||
Total gains (losses), realized and unrealized, included in: | ||
Beginning Balance | 0 | 0 |
Net investment income (loss) | 0 | 0 |
Investment gains (losses), net | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Purchases | 4 | 0 |
Sales | 0 | 0 |
Transfers into level 3 | 0 | 0 |
Transfers out of level 3 | 0 | 0 |
Ending Balance | 4 | 0 |
Fixed maturities, at FVO | Level 3 | ||
Total gains (losses), realized and unrealized, included in: | ||
Beginning Balance | 80 | 0 |
Net investment income (loss) | 3 | 0 |
Investment gains (losses), net | 0 | 0 |
Total realized and unrealized gains (losses) | 3 | 0 |
Other comprehensive income (loss) | 0 | |
Purchases | 88 | 0 |
Sales | (8) | 0 |
Transfers into level 3 | 7 | 0 |
Transfers out of level 3 | (28) | 0 |
Ending Balance | 142 | 0 |
Other Equity Investments | Level 3 | ||
Total gains (losses), realized and unrealized, included in: | ||
Beginning Balance | 124 | 150 |
Investment gains (losses), net | 1 | 7 |
Net derivative gains (losses) | 0 | 0 |
Total realized and unrealized gains (losses) | 1 | 7 |
Other comprehensive income (loss) | 0 | (7) |
Purchases | 2 | 2 |
Sales | (2) | (11) |
Settlements | 0 | 0 |
Change in estimate | 0 | 0 |
Activity related to consolidated VIEs/VOEs | (2) | (1) |
Transfers into level 3 | 0 | 0 |
Transfers out of level 3 | 0 | 0 |
Ending Balance | 123 | 140 |
GMIB Reinsurance Contract Asset | ||
Total gains (losses), realized and unrealized, included in: | ||
Other comprehensive income (loss) | 0 | 0 |
Non-performance Risk | (15) | |
GMIB Reinsurance Contract Asset | Level 3 | ||
Total gains (losses), realized and unrealized, included in: | ||
Beginning Balance | 2,488 | 2,139 |
Investment gains (losses), net | 0 | |
Net derivative gains (losses) | (578) | 726 |
Total realized and unrealized gains (losses) | (578) | 726 |
Other comprehensive income (loss) | 0 | 0 |
Purchases | 11 | 10 |
Sales | (14) | (20) |
Settlements | 0 | 0 |
Change in estimate | 0 | (32) |
Activity related to consolidated VIEs/VOEs | 0 | 0 |
Transfers into level 3 | 0 | 0 |
Transfers out of level 3 | 0 | 0 |
Ending Balance | 1,907 | 2,823 |
Separate Accounts Assets | Level 3 | ||
Total gains (losses), realized and unrealized, included in: | ||
Beginning Balance | 1 | 0 |
Investment gains (losses), net | 0 | |
Net derivative gains (losses) | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Change in estimate | 0 | 0 |
Activity related to consolidated VIEs/VOEs | 0 | 0 |
Transfers into level 3 | 0 | 0 |
Transfers out of level 3 | (1) | 0 |
Ending Balance | 0 | 0 |
GMxB Derivative Features Liability | ||
Total gains (losses), realized and unrealized, included in: | ||
Non-performance Risk | 79 | |
GMxB Derivative Features Liability | Level 3 | ||
Total gains (losses), realized and unrealized, included in: | ||
Beginning Balance | (11,131) | (8,502) |
Investment gains (losses), net | 0 | |
Net derivative gains (losses) | 3,408 | (1,199) |
Total realized and unrealized gains (losses) | 3,408 | (1,199) |
Other comprehensive income (loss) | 0 | 0 |
Purchases | (119) | (111) |
Sales | 18 | 14 |
Settlements | 0 | 0 |
Change in estimate | 0 | 0 |
Activity related to consolidated VIEs/VOEs | 0 | 0 |
Transfers into level 3 | 0 | 0 |
Transfers out of level 3 | 0 | 0 |
Ending Balance | (7,824) | (9,798) |
Contingent Payment Arrangement | Level 3 | ||
Total gains (losses), realized and unrealized, included in: | ||
Beginning Balance | (28) | (23) |
Investment gains (losses), net | 0 | |
Net derivative gains (losses) | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Purchases | (7) | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Change in estimate | 0 | 0 |
Activity related to consolidated VIEs/VOEs | (1) | (1) |
Transfers into level 3 | 0 | 0 |
Transfers out of level 3 | 0 | 0 |
Ending Balance | $ (36) | $ (24) |
FAIR VALUE DISCLOSURES - Unreal
FAIR VALUE DISCLOSURES - Unrealized Gains (Losses) for Level 3 Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Level 3 Assets And Liabilities Held | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | $ 2,830 | $ (473) |
OCI | 8 | (71) |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | 0 | 0 |
OCI | 9 | (61) |
State and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | 0 | 0 |
OCI | (1) | (2) |
Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | 0 | 0 |
OCI | 0 | (8) |
Fixed maturities, AFS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | 0 | 0 |
OCI | 8 | (71) |
GMIB Reinsurance Contract Asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | (578) | 726 |
OCI | 0 | 0 |
Separate Account assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | 0 | 0 |
OCI | 0 | 0 |
GMxB derivative features liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Derivative Gains (Losses) | 3,408 | (1,199) |
OCI | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Quanti
FAIR VALUE DISCLOSURES - Quantitative Information about Level 3 (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset, fair value | $ 13,371 | $ 11,732 |
Level 3 | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability, consideration payable | $ 36 | $ 28 |
Discount rate | Discounted cash flow | Minimum | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.019 | 0.019 |
Discount rate | Discounted cash flow | Maximum | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.200 | 0.104 |
Discount rate | Discounted cash flow | Weighted Average | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.108 | 0.080 |
Expected revenue growth rate | Discounted cash flow | Minimum | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.020 | 0.007 |
Expected revenue growth rate | Discounted cash flow | Maximum | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 1.356 | 0.500 |
Expected revenue growth rate | Discounted cash flow | Weighted Average | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.090 | 0.049 |
Corporate | Level 3 | Matrix pricing model | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Unobservable Inputs | $ 40 | $ 34 |
Corporate | Level 3 | Matrix pricing model | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Spread over Benchmark | 0.0020 | 0.0045 |
Corporate | Level 3 | Matrix pricing model | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Spread over Benchmark | 0.0245 | 0.0195 |
Corporate | Level 3 | Matrix pricing model | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Spread over Benchmark | 0.0150 | 0.0160 |
Corporate | Level 3 | Market comparable companies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Unobservable Inputs | $ 771 | $ 1,148 |
Corporate | EBITDA Multiple | Level 3 | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 4 | 3.5 |
Corporate | EBITDA Multiple | Level 3 | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 32.3 | 33.1 |
Corporate | EBITDA Multiple | Level 3 | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 11.4 | 10.8 |
Corporate | Discount rate | Level 3 | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 0.060 | 0.056 |
Corporate | Discount rate | Level 3 | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 0.167 | 0.284 |
Corporate | Discount rate | Level 3 | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 0.085 | 0.086 |
Corporate | Cash flow multiples | Level 3 | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 1.6 | 1.9 |
Corporate | Cash flow multiples | Level 3 | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 25 | 25 |
Corporate | Cash flow multiples | Level 3 | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 6.7 | 6.8 |
Other Equity Investments | Level 3 | Market comparable companies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Unobservable Inputs | $ 2 | $ 2 |
Other Equity Investments | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Unobservable Inputs | $ 39 | $ 39 |
Fair value inputs, discount period | 11 years | 11 years |
Other Equity Investments | Discount rate | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 0.100 | |
Other Equity Investments | Revenue/earnings multiple | Level 3 | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 9.6 | 9.7 |
Other Equity Investments | Revenue/earnings multiple | Level 3 | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 17.2 | 0.264 |
Other Equity Investments | Revenue/earnings multiple | Level 3 | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 16 | 18.5 |
Other Equity Investments | Revenue/earnings multiple | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 8.2 | 8.2 |
Other Equity Investments | Discount factor | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, measurement input | 0.100 | |
GMIB reinsurance contracts | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset, fair value | $ 1,907 | $ 2,488 |
GMIB reinsurance contracts | Non-performance risk | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0052 | 0.0043 |
GMIB reinsurance contracts | Non-performance risk | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0088 | 0.0085 |
GMIB reinsurance contracts | Non-performance risk | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0056 | 0.0050 |
GMIB reinsurance contracts | Lapse rates | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.006 | 0.006 |
GMIB reinsurance contracts | Lapse rates | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.16 | 0.160 |
GMIB reinsurance contracts | Lapse rates | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0193 | 0.0169 |
GMIB reinsurance contracts | Withdrawal rates | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0 | 0 |
GMIB reinsurance contracts | Withdrawal rates | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.02 | 0.020 |
GMIB reinsurance contracts | Withdrawal rates | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0089 | 0.0091 |
GMIB reinsurance contracts | Utilization Rate | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0 | 0 |
GMIB reinsurance contracts | Utilization Rate | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.61 | 0.61 |
GMIB reinsurance contracts | Utilization Rate | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0527 | 0.0582 |
GMIB reinsurance contracts | Volatility rates - Equity | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.11 | 0.070 |
GMIB reinsurance contracts | Volatility rates - Equity | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.28 | 0.320 |
GMIB reinsurance contracts | Volatility rates - Equity | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.24 | 0.240 |
GMIB reinsurance contracts | Mortality rate | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0294 | |
GMIBNLG | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability, fair value | $ 7,625 | $ 10,713 |
GMIBNLG | Non-performance risk | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0102 | 0.0096 |
GMIBNLG | Lapse rates | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.011 | 0.011 |
GMIBNLG | Lapse rates | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.257 | 0.257 |
GMIBNLG | Lapse rates | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0344 | 0.0319 |
GMIBNLG | Withdrawal rates | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.004 | 0.004 |
GMIBNLG | Withdrawal rates | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.020 | 0.020 |
GMIBNLG | Withdrawal rates | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0095 | 0.0093 |
GMIBNLG | Annuitization | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
GMIBNLG | Annuitization | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 1 | 1 |
GMIBNLG | Annuitization | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0518 | 0.0551 |
GMIBNLG | Mortality rate | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0166 | |
Assumed GMIB Reinsurance Contracts | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability, fair value | $ 143 | $ 195 |
Assumed GMIB Reinsurance Contracts | Non-performance risk | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0066 | 0.0060 |
Assumed GMIB Reinsurance Contracts | Non-performance risk | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0129 | 0.0133 |
Assumed GMIB Reinsurance Contracts | Non-performance risk | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0099 | 0.0099 |
Assumed GMIB Reinsurance Contracts | Lapse rates | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.011 | 0.011 |
Assumed GMIB Reinsurance Contracts | Lapse rates | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.111 | 0.111 |
Assumed GMIB Reinsurance Contracts | Lapse rates | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0193 | 0.0169 |
Assumed GMIB Reinsurance Contracts | Withdrawal rates | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.006 | 0.006 |
Assumed GMIB Reinsurance Contracts | Withdrawal rates | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.222 | 0.222 |
Assumed GMIB Reinsurance Contracts | Withdrawal rates | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0091 | |
Assumed GMIB Reinsurance Contracts | Withdrawal rates | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.011 | 0.011 |
Assumed GMIB Reinsurance Contracts | Withdrawal rates | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 1 | 1 |
Assumed GMIB Reinsurance Contracts | Withdrawal rates | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0089 | |
Assumed GMIB Reinsurance Contracts | Utilization Rate | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
Assumed GMIB Reinsurance Contracts | Utilization Rate | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.30 | 0.30 |
Assumed GMIB Reinsurance Contracts | Utilization Rate | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0527 | 0.0582 |
Assumed GMIB Reinsurance Contracts | Volatility rates - Equity | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.110 | 0.07 |
Assumed GMIB Reinsurance Contracts | Volatility rates - Equity | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.280 | 0.32 |
Assumed GMIB Reinsurance Contracts | Volatility rates - Equity | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.24 | 0.24 |
GWBL/GMWB | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability, fair value | $ 134 | $ 190 |
GWBL/GMWB | Non-performance risk | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0102 | 0.0096 |
GWBL/GMWB | Lapse rates | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.008 | 0.008 |
GWBL/GMWB | Lapse rates | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.16 | 0.160 |
GWBL/GMWB | Lapse rates | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0193 | 0.0169 |
GWBL/GMWB | Withdrawal rates | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
GWBL/GMWB | Withdrawal rates | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.080 | 0.080 |
GWBL/GMWB | Withdrawal rates | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0089 | 0.0091 |
GWBL/GMWB | Utilization Rate | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 1 | 1 |
GWBL/GMWB | Utilization Rate | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.240 | |
GWBL/GMWB | Volatility rates - Equity | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.110 | 0.070 |
GWBL/GMWB | Volatility rates - Equity | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.280 | 0.320 |
GWBL/GMWB | Volatility rates - Equity | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.24 | |
GIB | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability, fair value | $ (76) | $ 31 |
GIB | Non-performance risk | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0102 | 0.0096 |
GIB | Lapse rates | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.008 | 0.008 |
GIB | Lapse rates | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.156 | 0.156 |
GIB | Lapse rates | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0193 | 0.0169 |
GIB | Withdrawal rates | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
GIB | Withdrawal rates | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.020 | 0.020 |
GIB | Withdrawal rates | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0089 | 0.0091 |
GIB | Utilization Rate | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0 | 0 |
GIB | Utilization Rate | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 1 | 1 |
GIB | Utilization Rate | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0527 | 0.0582 |
GIB | Volatility rates - Equity | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.110 | 0.070 |
GIB | Volatility rates - Equity | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.280 | 0.320 |
GIB | Volatility rates - Equity | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.24 | 0.240 |
GMAB | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability, fair value | $ (2) | $ 2 |
GMAB | Non-performance risk | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0102 | 0.0096 |
GMAB | Lapse rates | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.008 | 0.008 |
GMAB | Lapse rates | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.160 | 0.160 |
GMAB | Lapse rates | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0193 | 0.0169 |
GMAB | Volatility rates - Equity | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.110 | 0.07 |
GMAB | Volatility rates - Equity | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.280 | 0.320 |
GMAB | Volatility rates - Equity | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.24 | 0.2400 |
Ages 0 - 40 | GMIB reinsurance contracts | Mortality rate | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0001 | 0.0001 |
Ages 0 - 40 | GMIB reinsurance contracts | Mortality rate | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0018 | 0.0018 |
Ages 0 - 40 | GMIB reinsurance contracts | Mortality rate | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.000280 | |
Ages 0 - 40 | GMIBNLG | Mortality rate | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0001 | 0.0001 |
Ages 0 - 40 | GMIBNLG | Mortality rate | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0019 | 0.0019 |
Ages 0 - 40 | GMIBNLG | Mortality rate | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0156 | |
Ages 41 - 60 | GMIB reinsurance contracts | Mortality rate | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0007 | 0.0007 |
Ages 41 - 60 | GMIB reinsurance contracts | Mortality rate | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0054 | 0.0054 |
Ages 41 - 60 | GMIBNLG | Mortality rate | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0006 | 0.0006 |
Ages 41 - 60 | GMIBNLG | Mortality rate | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0053 | 0.0053 |
Ages 61 - 115 | GMIB reinsurance contracts | Mortality rate | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.0042 | 0.0042 |
Ages 61 - 115 | GMIB reinsurance contracts | Mortality rate | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing asset, measurement input | 0.422 | 0.4220 |
Ages 61 - 115 | GMIBNLG | Mortality rate | Level 3 | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.0041 | 0.0041 |
Ages 61 - 115 | GMIBNLG | Mortality rate | Level 3 | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing liability, measurement input | 0.4139 | 0.4139 |
FAIR VALUE DISCLOSURES - Carryi
FAIR VALUE DISCLOSURES - Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | $ 13,280 | $ 13,159 |
Policy loans | 4,091 | 4,118 |
Policyholders liabilities: Investment contracts | 73,303 | 66,820 |
Separate Accounts liabilities | 139,795 | 135,950 |
Carrying Value | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 13,280 | 13,159 |
Policy loans | 4,091 | 4,118 |
Policyholders liabilities: Investment contracts | 2,160 | 2,198 |
FHLB funding agreements | 10,223 | 6,897 |
FABN funding agreements | 3,132 | 1,939 |
Short-term | 3,837 | 4,115 |
Separate Accounts liabilities | 10,658 | 10,081 |
Carrying Value | Collateralized Loan Obligations | ||
Consolidated Amounts [Abstract] | ||
Short-term | 185 | |
Measured at Fair Value | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 13,532 | 13,491 |
Policy loans | 5,117 | 5,352 |
Policyholders liabilities: Investment contracts | 2,280 | 2,416 |
FHLB funding agreements | 10,284 | 6,990 |
FABN funding agreements | 3,087 | 1,971 |
Short-term | 4,493 | 5,065 |
Separate Accounts liabilities | 10,658 | 10,081 |
Measured at Fair Value | Level 1 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 0 | 0 |
Policy loans | 0 | 0 |
Policyholders liabilities: Investment contracts | 0 | 0 |
FHLB funding agreements | 0 | 0 |
FABN funding agreements | 0 | 0 |
Short-term | 0 | 0 |
Separate Accounts liabilities | 0 | 0 |
Measured at Fair Value | Level 2 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 0 | 0 |
Policy loans | 0 | 0 |
Policyholders liabilities: Investment contracts | 0 | 0 |
FHLB funding agreements | 10,284 | 6,990 |
FABN funding agreements | 3,087 | 1,971 |
Short-term | 4,493 | 5,065 |
Separate Accounts liabilities | 0 | 0 |
Measured at Fair Value | Level 3 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 13,532 | 13,491 |
Policy loans | 5,117 | 5,352 |
Policyholders liabilities: Investment contracts | 2,280 | 2,416 |
FHLB funding agreements | 0 | 0 |
FABN funding agreements | 0 | 0 |
Short-term | 0 | 0 |
Separate Accounts liabilities | $ 10,658 | $ 10,081 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Certain Benefit Costs (Details) - Net Periodic Pension Expense - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2 | $ 2 |
Interest cost | 14 | 23 |
Expected return on assets | (38) | (37) |
Prior Period Svc Cost Amortization | (1) | 0 |
Actuarial (gain) loss | 1 | 0 |
Net amortization | 29 | 27 |
Impact of settlement | 0 | 0 |
Net periodic pension expense | $ 7 | $ 15 |
EQUITY - Preferred Stock Activi
EQUITY - Preferred Stock Activity (Details) - shares | Mar. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 64,000 | 52,000 |
Preferred stock, shares issued (in shares) | 64,000 | 52,000 |
Preferred stock, shares outstanding (in shares) | 64,000 | 52,000 |
Series A Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 32,000 | 32,000 |
Preferred stock, shares issued (in shares) | 32,000 | 32,000 |
Preferred stock, shares outstanding (in shares) | 32,000 | 32,000 |
Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 20,000 | 20,000 |
Preferred stock, shares issued (in shares) | 20,000 | 20,000 |
Preferred stock, shares outstanding (in shares) | 20,000 | 20,000 |
Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 12,000 | 0 |
Preferred stock, shares issued (in shares) | 12,000 | 0 |
Preferred stock, shares outstanding (in shares) | 12,000 | 0 |
EQUITY - Preferred Stock (Detai
EQUITY - Preferred Stock (Details) - USD ($) | Jan. 08, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | |||
Preferred stock par value (in dollars per share) | $ 1 | $ 1 | |
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | |
Series C Preferred Stock | |||
Class of Stock [Line Items] | |||
Depositary stock, shares issued (in shares) | 12,000,000 | ||
Conversion to preferred stock from depositary stock (in shares) | 0.001 | ||
Preferred stock par value (in dollars per share) | $ 1 | ||
Preferred stock, liquidation preference | $ 25,000 | ||
Proceeds from offering | 293,000,000 | ||
Sale of stock, consideration received per transaction | $ 300,000,000 | ||
Preferred stock, dividend rate, percentage | 4.30% |
EQUITY - Dividends Declared (De
EQUITY - Dividends Declared (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Class of Stock [Line Items] | ||
Cash dividends declared per common share (in dollars per share) | $ 0.17 | $ 0.15 |
Series A Preferred Stock | ||
Class of Stock [Line Items] | ||
Cash dividends declared per depository share (in dollars per share) | 328 | 394 |
Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Cash dividends declared per depository share (in dollars per share) | 0 | 0 |
Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Cash dividends declared per depository share (in dollars per share) | $ 200 | $ 0 |
EQUITY - Share Repurchase (Deta
EQUITY - Share Repurchase (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Feb. 17, 2021 | Jan. 31, 2021 | Oct. 23, 2020 | Feb. 26, 2020 | Nov. 06, 2019 | |
Class of Stock [Line Items] | ||||||||
Share repurchase plan, authorized amount | $ 1,000,000,000 | $ 600,000,000 | $ 400,000,000 | |||||
Share repurchase program, number of shares authorized to be repurchased (in shares) | 1,000,000,000 | 1,000,000,000 | ||||||
Share repurchase program, remaining authorized repurchase amount | $ 701,000,000 | $ 701,000,000 | ||||||
Shares repurchased (in shares) | 3,200,000 | |||||||
Payments for repurchase of common shares | $ 430,000,000 | $ 205,000,000 | ||||||
Venerable | ||||||||
Class of Stock [Line Items] | ||||||||
Share repurchase program, additional authorized amount | 500,000,000 | $ 500,000,000 | $ 500,000,000 | |||||
Accelerated Share Repurchase Agreement | ||||||||
Class of Stock [Line Items] | ||||||||
Shares repurchased (in shares) | 14,500,000 | |||||||
Accelerated share repurchases, average purchase price (in dollars per share) | $ 29.71 | |||||||
Accelerated Share Repurchase Agreement, January 2021 | ||||||||
Class of Stock [Line Items] | ||||||||
Share repurchase plan, authorized amount | $ 170,000,000 | |||||||
Shares repurchased (in shares) | 6,300,000 | |||||||
Accelerated Share Repurchase Agreement, March 2021 | ||||||||
Class of Stock [Line Items] | ||||||||
Share repurchase plan, authorized amount | $ 200,000,000 | $ 200,000,000 | ||||||
Shares repurchased (in shares) | 4,900,000 | |||||||
Payments for repurchase of common shares | $ 200,000,000 |
EQUITY - Cumulative Gains (Loss
EQUITY - Cumulative Gains (Losses) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Equity [Abstract] | ||
Unrealized gains (losses) on investments | $ 1,644 | $ 4,797 |
Defined benefit pension plans | (902) | (935) |
Foreign currency translation adjustments | (40) | (34) |
Total accumulated other comprehensive income (loss) | 702 | 3,828 |
Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest | (38) | (35) |
Accumulated other comprehensive income (loss) attributable to Holdings | $ 740 | $ 3,863 |
EQUITY - Components of OCI, Net
EQUITY - Components of OCI, Net of Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Net unrealized gains (losses) arising during the period | $ (4,059) | $ 1,513 |
(Gains) losses reclassified into net income (loss) during the period | (164) | (47) |
Net unrealized gains (losses) on investments | (4,223) | 1,466 |
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | 1,070 | (36) |
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $838 and $380) | (3,153) | 1,430 |
Change in defined benefit plans: | ||
Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost | 33 | 28 |
Change in defined benefit plans (net of deferred income tax expense (benefit) of $9 and $7) | 33 | 28 |
Foreign currency translation adjustments: | ||
Foreign currency translation gains (losses) arising during the period | (6) | (21) |
Foreign currency translation adjustment | (6) | (21) |
Total other comprehensive income (loss), net of income taxes | (3,126) | 1,437 |
Less: Other comprehensive income (loss) attributable to noncontrolling interest | (3) | (8) |
Other comprehensive income (loss) attributable to Holdings | (3,123) | 1,445 |
Reclassification adjustment | 44 | 12 |
AFS Securities, OCI, tax | 838 | 380 |
Defined benefit plan, OCI, tax | $ 9 | $ 7 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTEREST - Summary of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Balance, beginning of period | [1],[2] | $ 143 | |
Net earnings (loss) attributable to redeemable noncontrolling interests | 88 | $ 37 | |
Balance, end of period | [1],[2] | 137 | |
Redeemable Noncontrolling Interest | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Balance, beginning of period | 143 | 365 | |
Net earnings (loss) attributable to redeemable noncontrolling interests | 0 | (30) | |
Purchase/change of redeemable noncontrolling interests | (6) | (78) | |
Balance, end of period | $ 137 | $ 257 | |
[1] | See Note 11 for details of redeemable noncontrolling interest. | ||
[2] | See Note 2 for details of balances with VIEs. |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details) shares in Millions | 1 Months Ended | |||
Apr. 30, 2019USD ($)shares | Feb. 28, 2018USD ($) | Mar. 31, 2021USD ($) | Feb. 29, 2016USD ($)legalActionfederalAction | |
Loss Contingencies [Line Items] | ||||
Unaccrued amounts of reasonably possible range of losses | $ 150,000,000 | |||
Federal home loan bank stock | 472,000,000 | |||
Carrying value of collateral pledged for federal home loan bank | 6,700,000,000 | |||
Commitments by the Company to provide equity financing | 1,300,000,000 | |||
Face amount of mortgage loans | 456,000,000 | |||
Credit facility | ||||
Loss Contingencies [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 17,000,000 | |||
Trust Notes | ||||
Loss Contingencies [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 5,000,000,000 | |||
Holdings Revolving Credit Facility | Credit facility | ||||
Loss Contingencies [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 2,500,000,000 | |||
Debt instrument, term | 5 years | |||
Holdings Revolving Credit Facility | Letter of Credit | ||||
Loss Contingencies [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | |||
Bilateral Letter Of Credit Facilities | Letter of Credit | ||||
Loss Contingencies [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,900,000,000 | |||
Equitable Financial | ||||
Loss Contingencies [Line Items] | ||||
Number of federal actions | federalAction | 5 | |||
Equitable Financial | New York | ||||
Loss Contingencies [Line Items] | ||||
Number of actions | legalAction | 2 | |||
ACS Life | Holdings Revolving Credit Facility | Letter of Credit | ||||
Loss Contingencies [Line Items] | ||||
Remaining capacity | 150,000,000 | |||
Equitable Life | Holdings Revolving Credit Facility | Letter of Credit | ||||
Loss Contingencies [Line Items] | ||||
Remaining capacity | 205,000,000 | |||
Affiliated Entity | ||||
Loss Contingencies [Line Items] | ||||
Commitments by the Company to provide equity financing | $ 193,000,000 | |||
Brach Family Foundation Litigation | ||||
Loss Contingencies [Line Items] | ||||
Liability for future policy benefits, face value of policy | $ 1,000,000 | |||
Pre-Capitalized Trust Securities, Redeemable February 15, 2049 | ||||
Loss Contingencies [Line Items] | ||||
Shares issued (in shares) | shares | 0.6 | |||
Proceeds from offering | $ 600,000,000 | |||
Sale of stock, funding arrangement, period to issue senior notes to trust | 30 years | |||
Sale of stock, semi-annual facility fee, rate | 2.125% | |||
Pre-Capitalized Trust Securities, Redeemable February 15, 2029 | ||||
Loss Contingencies [Line Items] | ||||
Shares issued (in shares) | shares | 0.4 | |||
Proceeds from offering | $ 400,000,000 | |||
Sale of stock, funding arrangement, period to issue senior notes to trust | 10 years | |||
Sale of stock, semi-annual facility fee, rate | 2.715% |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - Funding Agreements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Federal Home Loan Bank (FHLB) | ||
Restructuring Cost and Reserve [Line Items] | ||
Difference related to remaining amortization | $ 6 | $ 7 |
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 6,890 | |
Issued During the Period | 16,050 | |
Repaid During the Period | 12,724 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 10,216 | |
Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Cost and Reserve [Line Items] | ||
Difference related to remaining amortization | 18 | $ 11 |
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,950 | |
Issued During the Period | 1,200 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 3,150 | |
Due in one year or less | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 5,634 | |
Issued During the Period | 16,050 | |
Repaid During the Period | 12,724 | |
Long-term Agreements Maturing Within One Year | 173 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 9,133 | |
Due in one year or less | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 0 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 0 | |
Due in years two through five | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 722 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (173) | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 549 | |
Due in years two through five | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,150 | |
Issued During the Period | 450 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 1,600 | |
Due in more than five years | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 534 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 534 | |
Due in more than five years | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 800 | |
Issued During the Period | 750 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 1,550 | |
Total long-term funding agreements | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,256 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (173) | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 1,083 | |
Total long-term funding agreements | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,950 | |
Issued During the Period | 1,200 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | $ 3,150 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Narrative (Details) | 3 Months Ended |
Mar. 31, 2021numberOfOperatingSegment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net income (loss) | $ (1,488) | $ 5,388 |
Adjustments related to: | ||
Non-GAAP operating earnings | 600 | 535 |
Legal expense | 180 | |
Interest expense | 74 | 52 |
Adjustments | ||
Segment Reporting Information [Line Items] | ||
Net income (loss) | (1,488) | 5,388 |
Adjustments related to: | ||
Variable annuity product features | 2,267 | (6,869) |
Investment (gains) losses | (183) | (4) |
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 34 | 27 |
Other adjustments | 524 | 695 |
Income tax expense (benefit) related to above adjustments | (555) | 1,292 |
Non-recurring tax items | 1 | 6 |
COVID Impact on VA product feature due to assumption updates | 1,500 | |
Other COVID-19 impact | 35 | |
Other assumption updates due to COVID-19 | 1,000 | |
Other COVID-19 impact | 51 | |
Separation costs | 21 | 32 |
COVID-19 impact on taxes | 547 | |
Operating Segments | Individual Retirement | ||
Adjustments related to: | ||
Non-GAAP operating earnings | 363 | 373 |
Operating Segments | Group Retirement | ||
Adjustments related to: | ||
Non-GAAP operating earnings | 151 | 106 |
Operating Segments | Investment Management and Research | ||
Adjustments related to: | ||
Non-GAAP operating earnings | 121 | 95 |
Operating Segments | Protection Solutions | ||
Adjustments related to: | ||
Non-GAAP operating earnings | 41 | 49 |
Corporate and Other | ||
Adjustments related to: | ||
Non-GAAP operating earnings | (76) | (88) |
Interest expense | $ 58 | $ 56 |
BUSINESS SEGMENT INFORMATION _3
BUSINESS SEGMENT INFORMATION - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 1,153 | $ 12,609 |
Operating Segments | Individual Retirement | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 980 | 1,473 |
Operating Segments | Group Retirement | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 329 | 282 |
Operating Segments | Investment Management and Research | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,004 | 907 |
Operating Segments | Protection Solutions | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 826 | 865 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 334 | 311 |
Adjustments | ||
Adjustments related to: | ||
Variable annuity product features | (2,282) | 8,345 |
Investment (gains) losses | 183 | 4 |
Other adjustments to segment revenues | (221) | 422 |
Assumption updates due to COVID-19 | 46 | |
Other COVID-19 related impact | (51) | |
Intersegment Eliminations | ||
Adjustments related to: | ||
Investment expenses | 19 | 18 |
Investment management and other fees | Intersegment Eliminations | ||
Adjustments related to: | ||
Revenues | $ 30 | $ 27 |
BUSINESS SEGMENT INFORMATION _4
BUSINESS SEGMENT INFORMATION - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 276,832 | $ 275,397 |
Operating Segments | Individual Retirement | ||
Segment Reporting Information [Line Items] | ||
Total assets | 135,009 | 135,764 |
Operating Segments | Group Retirement | ||
Segment Reporting Information [Line Items] | ||
Total assets | 53,050 | 51,466 |
Operating Segments | Investment Management and Research | ||
Segment Reporting Information [Line Items] | ||
Total assets | 10,688 | 11,179 |
Operating Segments | Protection Solutions | ||
Segment Reporting Information [Line Items] | ||
Total assets | 49,246 | 48,568 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 28,839 | $ 28,420 |
EARNINGS PER COMMON SHARE - Bas
EARNINGS PER COMMON SHARE - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Weighted average number of shares outstanding - basic (in shares) | 434.2 | 461 |
Effect of dilutive securities common shares, employee stock awards (in shares) | 0 | 2.5 |
Weighted average common shares outstanding - diluted (in shares) | 434.2 | 463.5 |
Net income (loss) | $ (1,400) | $ 5,425 |
Less: Net income (loss) attributable to the noncontrolling interest | 88 | 37 |
Net income (loss) attributable to Holdings | (1,488) | 5,388 |
Less: Preferred stock dividends | 13 | 13 |
Net income (loss) available to Holdings’ common shareholders | $ (1,501) | $ 5,375 |
Net income (loss) attributable to Holdings per common share: | ||
Basic (in dollars per share) | $ (3.46) | $ 11.66 |
Diluted (in dollars per share) | $ (3.46) | $ 11.60 |
Effect of dilutive securities (in shares) | 4.3 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities (in shares) | 9.1 | 6 |
HELD-FOR-SALE (Details)
HELD-FOR-SALE (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held-for-sale | $ 483 | $ 470 |
Liabilities held-for-sale | 270 | 322 |
Corporate Solutions Life Reinsurance Company | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Investment impairment | 14 | 15 |
Investment impairment, decrease | $ (1) | |
Assets held-for-sale | 470 | |
Liabilities held-for-sale | $ 322 |
HELD-FOR-SALE - Assets and Liab
HELD-FOR-SALE - Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Fixed maturity securities | $ 226 | $ 235 |
Trading securities, at fair value | 156 | 189 |
Other invested assets | 1 | 1 |
Cash and cash equivalents | 92 | 39 |
Other assets | 26 | 25 |
Assets held-for-sale | 501 | 489 |
Less: Loss accrual | (18) | (19) |
Total assets held-for-sale | 483 | 470 |
Liabilities: | ||
Future policy benefits and other policyholders’ liabilities | 267 | 320 |
Broker-dealer related payables | 1 | 0 |
Other liabilities | 2 | 2 |
Total liabilities held-for-sale | $ 270 | $ 322 |
REVISION OF PRIOR PERIOD FINA_3
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
ASSETS | ||||||
Other invested assets | $ 2,913 | [1] | $ 2,728 | [1] | $ 2,124 | |
Investments | 105,497 | 109,087 | 96,228 | |||
Deferred policy acquisition costs | 4,943 | 4,243 | 4,697 | |||
Total Assets | 276,832 | 275,397 | 240,681 | |||
LIABILITIES | ||||||
Future policy benefits and other policyholders' liabilities | 35,922 | 39,881 | 38,001 | |||
Current and deferred income taxes | 0 | 749 | 2,327 | |||
Total Liabilities | 264,427 | 258,077 | 218,889 | |||
EQUITY | ||||||
Retained earnings | 8,758 | 10,699 | 17,007 | |||
Total equity attributable to Holdings | 10,693 | 15,576 | 19,981 | |||
Total Equity | 12,268 | 17,177 | 21,535 | $ 15,047 | ||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 276,832 | $ 275,397 | 240,681 | |||
As Previously Reported | ||||||
ASSETS | ||||||
Other invested assets | 2,112 | |||||
Investments | 96,216 | |||||
Deferred policy acquisition costs | 4,809 | |||||
Total Assets | 240,781 | |||||
LIABILITIES | ||||||
Future policy benefits and other policyholders' liabilities | 37,968 | |||||
Current and deferred income taxes | 2,355 | |||||
Total Liabilities | 218,884 | |||||
EQUITY | ||||||
Retained earnings | 17,112 | |||||
Total equity attributable to Holdings | 20,086 | |||||
Total Equity | 21,640 | |||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 240,781 | |||||
Impact of Revisions | ||||||
ASSETS | ||||||
Other invested assets | 12 | |||||
Investments | 12 | |||||
Deferred policy acquisition costs | (112) | |||||
Total Assets | (100) | |||||
LIABILITIES | ||||||
Future policy benefits and other policyholders' liabilities | 33 | |||||
Current and deferred income taxes | (28) | |||||
Total Liabilities | 5 | |||||
EQUITY | ||||||
Retained earnings | (105) | |||||
Total equity attributable to Holdings | (105) | |||||
Total Equity | (105) | |||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ (100) | |||||
[1] | See Note 2 for details of balances with VIEs. |
REVISION OF PRIOR PERIOD FINA_4
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Income Statement (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
REVENUES | ||
Policy charges and fee income | $ 949 | $ 996 |
Net derivative gains (losses) | (2,546) | 9,400 |
Net investment income (loss) | 884 | 629 |
Other income | 167 | 155 |
Total revenues | 1,153 | 12,609 |
BENEFITS AND OTHER DEDUCTIONS | ||
Policyholders' benefits | 939 | 2,776 |
Amortization of deferred policy acquisition costs | 87 | 1,303 |
Other operating costs and expenses | 608 | 438 |
Total benefits and other deductions | 2,961 | 5,750 |
Income (loss) from continuing operations, before income taxes | (1,808) | 6,859 |
Income tax (expense) benefit | 408 | (1,434) |
Net income (loss) | (1,400) | 5,425 |
Net income (loss) attributable to Holdings | $ (1,488) | $ 5,388 |
EARNINGS PER COMMON SHARE | ||
Basic (in dollars per share) | $ (3.46) | $ 11.66 |
Diluted (in dollars per share) | $ (3.46) | $ 11.60 |
As Previously Reported | ||
REVENUES | ||
Policy charges and fee income | $ 991 | |
Net derivative gains (losses) | 9,401 | |
Net investment income (loss) | 616 | |
Other income | 156 | |
Total revenues | 12,593 | |
BENEFITS AND OTHER DEDUCTIONS | ||
Policyholders' benefits | 2,788 | |
Amortization of deferred policy acquisition costs | 1,248 | |
Other operating costs and expenses | 437 | |
Total benefits and other deductions | 5,706 | |
Income (loss) from continuing operations, before income taxes | 6,887 | |
Income tax (expense) benefit | (1,440) | |
Net income (loss) | 5,447 | |
Net income (loss) attributable to Holdings | $ 5,410 | |
EARNINGS PER COMMON SHARE | ||
Basic (in dollars per share) | $ 11.71 | |
Diluted (in dollars per share) | $ 11.65 | |
Impact of Revisions | ||
REVENUES | ||
Policy charges and fee income | $ 5 | |
Net derivative gains (losses) | (1) | |
Net investment income (loss) | 13 | |
Other income | (1) | |
Total revenues | 16 | |
BENEFITS AND OTHER DEDUCTIONS | ||
Policyholders' benefits | (12) | |
Amortization of deferred policy acquisition costs | 55 | |
Other operating costs and expenses | 1 | |
Total benefits and other deductions | 44 | |
Income (loss) from continuing operations, before income taxes | (28) | |
Income tax (expense) benefit | 6 | |
Net income (loss) | (22) | |
Net income (loss) attributable to Holdings | $ (22) | |
EARNINGS PER COMMON SHARE | ||
Basic (in dollars per share) | $ (0.05) | |
Diluted (in dollars per share) | $ (0.05) |
REVISION OF PRIOR PERIOD FINA_5
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income (loss) | $ (1,400) | $ 5,425 |
Change in unrealized gains (losses), net of reclassification adjustment | (3,153) | 1,430 |
Other comprehensive income (loss) | (3,126) | 1,437 |
Comprehensive income (loss) | (4,526) | 6,862 |
Comprehensive income (loss) attributable to Holdings | $ (4,611) | 6,833 |
As Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income (loss) | 5,447 | |
Change in unrealized gains (losses), net of reclassification adjustment | 1,434 | |
Other comprehensive income (loss) | 1,441 | |
Comprehensive income (loss) | 6,888 | |
Comprehensive income (loss) attributable to Holdings | 6,859 | |
Impact of Revisions | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income (loss) | (22) | |
Change in unrealized gains (losses), net of reclassification adjustment | (4) | |
Other comprehensive income (loss) | (4) | |
Comprehensive income (loss) | (26) | |
Comprehensive income (loss) attributable to Holdings | $ (26) |
REVISION OF PRIOR PERIOD FINA_6
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | $ 17,177 | $ 15,047 |
Net income (loss) attributable to Holdings | (1,488) | 5,388 |
Other comprehensive income (loss) | (3,126) | 1,437 |
End of year | 12,268 | 21,535 |
As Previously Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Net income (loss) attributable to Holdings | 5,410 | |
Other comprehensive income (loss) | 1,441 | |
End of year | 21,640 | |
Impact of Revisions | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Net income (loss) attributable to Holdings | (22) | |
Other comprehensive income (loss) | (4) | |
End of year | (105) | |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | 10,699 | 11,744 |
Net income (loss) attributable to Holdings | 5,388 | |
End of year | 8,758 | 17,007 |
Retained Earnings | As Previously Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | 11,827 | |
Net income (loss) attributable to Holdings | 5,410 | |
End of year | 17,112 | |
Retained Earnings | Impact of Revisions | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | (83) | |
Net income (loss) attributable to Holdings | (22) | |
End of year | (105) | |
AOCI Attributable to Parent | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | 3,863 | 844 |
Other comprehensive income (loss) | (3,123) | 1,445 |
End of year | 740 | 2,289 |
AOCI Attributable to Parent | As Previously Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | 840 | |
Other comprehensive income (loss) | 1,449 | |
End of year | 2,289 | |
AOCI Attributable to Parent | Impact of Revisions | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | 4 | |
Other comprehensive income (loss) | (4) | |
End of year | 0 | |
Parent | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of year | 15,576 | 13,456 |
Other comprehensive income (loss) | (3,123) | 1,445 |
End of year | $ 10,693 | 19,981 |
Parent | As Previously Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
End of year | 20,086 | |
Parent | Impact of Revisions | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
End of year | $ (105) |
REVISION OF PRIOR PERIOD FINA_7
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 5,425 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Policy charges and fee income | $ (949) | (996) |
Net derivative (gains) losses | 2,546 | (9,400) |
Amortization and depreciation | 1,330 | |
Future policy benefits | 60 | 1,925 |
Current and deferred income taxes | (429) | 1,420 |
Other, net | 175 | (449) |
Net cash provided by (used in) operating activities | (14) | (570) |
Change in collateralized pledged assets | (1,392) | 43 |
Change in collateralized pledged liabilities | 96 | 646 |
Net cash provided by (used in) financing activities | 4,436 | 2,322 |
Cash and cash equivalents, end of year | $ 6,795 | 10,315 |
As Previously Reported | ||
Cash flows from operating activities: | ||
Net income (loss) | 5,447 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Policy charges and fee income | (991) | |
Net derivative (gains) losses | (9,401) | |
Amortization and depreciation | 1,275 | |
Future policy benefits | 1,936 | |
Current and deferred income taxes | 1,425 | |
Other, net | (448) | |
Net cash provided by (used in) operating activities | (582) | |
Change in collateralized pledged assets | 44 | |
Change in collateralized pledged liabilities | 657 | |
Net cash provided by (used in) financing activities | 2,334 | |
Cash and cash equivalents, end of year | 10,315 | |
Impact of Revisions | ||
Cash flows from operating activities: | ||
Net income (loss) | (22) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Policy charges and fee income | (5) | |
Net derivative (gains) losses | 1 | |
Amortization and depreciation | 55 | |
Future policy benefits | (11) | |
Current and deferred income taxes | (5) | |
Other, net | (1) | |
Net cash provided by (used in) operating activities | 12 | |
Change in collateralized pledged assets | (1) | |
Change in collateralized pledged liabilities | (11) | |
Net cash provided by (used in) financing activities | (12) | |
Cash and cash equivalents, end of year | $ 0 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - Subsequent Event | 1 Months Ended |
Apr. 30, 2021USD ($) | |
Funding Agreement-Backed Note, Fixed Rate, Due April 2021 | |
Subsequent Event [Line Items] | |
Debt instrument, face amount | $ 350,000,000 |
Debt instrument, stated percentage | 0.50% |
Funding Agreement-Backed Note, Floating Rate, Due April 2023 | |
Subsequent Event [Line Items] | |
Debt instrument, face amount | $ 650,000,000 |
Funding Agreement-Backed Note, Floating Rate, Due April 2023 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Subsequent Event [Line Items] | |
Debt instrument, basis spread on variable rate | 0.39% |