Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 02, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 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 | 404,768,534 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Amendment Flag | false | |
Entity Central Index Key | 0001333986 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
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 | ||
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 | ||
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 | Sep. 30, 2021 | Dec. 31, 2020 | |
Investments: | |||
Fixed maturities available-for-sale, at fair value (amortized cost of $72,195 and $72,867) (allowance for credit losses of $27 and $13) | $ 76,968 | $ 81,638 | |
Fixed maturities, at fair value using the fair value option | [1] | 1,334 | 389 |
Mortgage loans on real estate (net of allowance for credit losses of $64 and $81) | 13,448 | 13,159 | |
Policy loans | 4,027 | 4,118 | |
Other equity investments | [1] | 2,986 | 1,502 |
Trading securities, at fair value | 584 | 5,553 | |
Other invested assets | [1] | 2,660 | 2,728 |
Total investments | 102,007 | 109,087 | |
Cash and cash equivalents | [1] | 5,255 | 6,179 |
Cash and securities segregated, at fair value | 909 | 1,753 | |
Broker-dealer related receivables | 2,639 | 2,223 | |
Deferred policy acquisition costs | 5,366 | 4,243 | |
Goodwill and other intangible assets, net | 4,734 | 4,737 | |
Amounts due from reinsurers (allowance for credit losses of $5 and $5) (fair value of $5,869 and $—) | [2] | 14,801 | 4,566 |
GMIB reinsurance contract asset, at fair value | 1,937 | 2,488 | |
Current and deferred income taxes | 293 | 0 | |
Other assets | [1] | 4,545 | 3,701 |
Assets held-for-sale | 0 | 470 | |
Separate Accounts assets | 142,093 | 135,950 | |
Total Assets | 284,579 | 275,397 | |
LIABILITIES | |||
Policyholders’ account balances | 75,909 | 66,820 | |
Future policy benefits and other policyholders' liabilities | 37,184 | 39,881 | |
Broker-dealer related payables | 1,087 | 1,443 | |
Customer related payables | 3,153 | 3,417 | |
Amounts due to reinsurers | 1,466 | 1,381 | |
Short-term and long-term debt | 3,839 | 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] | 1,190 | 313 |
Other liabilities | [1] | 5,343 | 3,686 |
Liabilities held-for-sale | 0 | 322 | |
Separate Accounts liabilities | 142,093 | 135,950 | |
Total Liabilities | 271,264 | 258,077 | |
Redeemable noncontrolling interest | [1],[3] | 143 | 143 |
Commitments and contingent liabilities (Note 13) | |||
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; 524,946,690 and 552,896,328 shares issued, respectively; 404,746,936 and 440,776,011 shares outstanding, respectively | 5 | 5 | |
Additional paid-in capital | 1,917 | 1,985 | |
Treasury stock, at cost, 120,199,754 and 112,120,317 shares, respectively | (2,537) | (2,245) | |
Retained earnings | 8,857 | 10,699 | |
Accumulated other comprehensive income (loss) | 1,876 | 3,863 | |
Total equity attributable to Holdings | 11,680 | 15,576 | |
Noncontrolling interest | 1,492 | 1,601 | |
Total Equity | 13,172 | 17,177 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 284,579 | $ 275,397 | |
[1] | See Note 2 for details of balances with VIEs. | ||
[2] | Represents the fair value of the ceded reserves to Venerable. See Note 1- Organization for details of the Venerable transaction and Note 8- Fair Value Disclosures. | ||
[3] | See Note 12 for details of redeemable noncontrolling interest. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Fixed maturities available-for-sale, amortized cost | $ 72,195,000,000 | $ 72,867,000,000 |
Fixed maturities available-for-sale, allowance for credit losses | 27,000,000 | 13,000,000 |
Mortgage loans on real estate, allowance for credit losses | 64,000,000 | 81,000,000 |
Reinsurance recoverable, allowance for credit loss | 5,000,000 | 5,000,000 |
Reinsurance recoverable, fair value | $ 5,869,000,000 | $ 0 |
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) | 524,946,690 | 552,896,328 |
Common stock outstanding (in shares) | 404,746,936 | 440,776,011 |
Treasury stock (in shares) | 120,199,754 | 112,120,317 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
REVENUES | ||||
Policy charges and fee income | $ 867 | $ 914 | $ 2,755 | $ 2,787 |
Premiums | 230 | 221 | 729 | 754 |
Net derivative gains (losses) | (185) | (1,472) | (3,930) | 1,890 |
Net investment income (loss) | 997 | 879 | 2,914 | 2,530 |
Investment gains (losses), net: | ||||
Credit losses on available-for-sale debt securities and loans | (2) | (4) | 4 | (47) |
Other investment gains (losses), net | 165 | 21 | 763 | 237 |
Total investment gains (losses), net | 163 | 17 | 767 | 190 |
Investment management and service fees | 1,323 | 1,126 | 3,898 | 3,314 |
Other income | 220 | 155 | 585 | 434 |
Total revenues | 3,615 | 1,840 | 7,718 | 11,899 |
BENEFITS AND OTHER DEDUCTIONS | ||||
Policyholders’ benefits | 751 | 1,034 | 2,518 | 4,546 |
Interest credited to policyholders’ account balances | 305 | 306 | 905 | 930 |
Compensation and benefits | 614 | 503 | 1,762 | 1,498 |
Commissions and distribution-related payments | 436 | 342 | 1,215 | 982 |
Interest expense | 59 | 52 | 184 | 152 |
Amortization of deferred policy acquisition costs | 64 | 90 | 257 | 1,555 |
Other operating costs and expenses | 456 | 436 | 1,511 | 1,308 |
Total benefits and other deductions | 2,685 | 2,763 | 8,352 | 10,971 |
Income (loss) from continuing operations, before income taxes | 930 | (923) | (634) | 928 |
Income tax (expense) benefit | (165) | 218 | 222 | (141) |
Net income (loss) | 765 | (705) | (412) | 787 |
Less: Net income (loss) attributable to the noncontrolling interest | 93 | 74 | 281 | 197 |
Net income (loss) attributable to Holdings | 672 | (779) | (693) | 590 |
Less: Preferred stock dividends | 14 | 11 | 53 | 34 |
Net income (loss) available to Holdings’ common shareholders | 658 | (790) | (746) | 556 |
Net income (loss) available to Holdings’ common shareholders | $ 658 | $ (790) | $ (746) | $ 556 |
Net income (loss) applicable to Holdings’ common shareholders per common share: | ||||
Basic (in dollars per share) | $ 1.60 | $ (1.77) | $ (1.76) | $ 1.23 |
Diluted (in dollars per share) | $ 1.59 | $ (1.77) | $ (1.76) | $ 1.22 |
Weighted average common shares outstanding (in millions): | ||||
Basic (in shares) | 411.3 | 447.5 | 423.2 | 453 |
Diluted (in shares) | 414.6 | 447.5 | 423.2 | 454.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 765 | $ (705) | $ (412) | $ 787 |
Other comprehensive income (loss) net of income taxes: | ||||
Change in unrealized gains (losses), net of reclassification adjustment | (123) | 229 | (2,056) | 3,273 |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 22 | 21 | 77 | 71 |
Foreign currency translation adjustment | (9) | 16 | (13) | 1 |
Total other comprehensive income (loss), net of income taxes | (110) | 266 | (1,992) | 3,345 |
Comprehensive income (loss) | 655 | (439) | (2,404) | 4,132 |
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 90 | 80 | 276 | 198 |
Comprehensive income (loss) attributable to Holdings | $ 565 | $ (519) | $ (2,680) | $ 3,934 |
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 | Accumulated Other Comprehensive Income (Loss) | 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 | 67 | 59 | 44 | 15 | 8 | |||||||
Purchase of treasury stock | (330) | (330) | (330) | |||||||||
Reissuance of treasury stock | (16) | (16) | (16) | |||||||||
Repurchase of AB Holding units | (50) | (31) | (31) | (19) | ||||||||
Dividends paid to noncontrolling interest | (230) | (230) | ||||||||||
Dividends on common stock | (222) | (222) | (222) | |||||||||
Dividends on preferred stock | (34) | (34) | (34) | |||||||||
Issuance of preferred stock | 494 | 494 | 494 | |||||||||
Net income (loss) | 791 | 590 | 590 | 201 | ||||||||
Other comprehensive income (loss) | 3,345 | 3,344 | 3,344 | 1 | ||||||||
Other | 20 | 20 | 20 | 0 | ||||||||
End of year at Sep. 30, 2020 | 18,852 | 17,300 | 1,269 | 5 | 1,953 | (2,147) | 12,032 | 4,188 | 1,552 | |||
Beginning of year at Jun. 30, 2020 | 19,038 | 17,498 | 775 | 5 | 1,938 | (2,047) | 12,899 | 3,928 | 1,540 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock compensation | 18 | 15 | 15 | 0 | 3 | |||||||
Purchase of treasury stock | (100) | (100) | (100) | |||||||||
Reissuance of treasury stock | (1) | (1) | (1) | |||||||||
Repurchase of AB Holding units | (2) | (2) | ||||||||||
Dividends paid to noncontrolling interest | (68) | (68) | ||||||||||
Dividends on common stock | (76) | (76) | (76) | |||||||||
Dividends on preferred stock | (11) | (11) | (11) | |||||||||
Issuance of preferred stock | 494 | 494 | 494 | |||||||||
Net income (loss) | (706) | (779) | (779) | 73 | ||||||||
Other comprehensive income (loss) | 266 | 260 | 260 | 6 | ||||||||
Other | 0 | 0 | 0 | |||||||||
End of year at Sep. 30, 2020 | 18,852 | 17,300 | 1,269 | 5 | 1,953 | (2,147) | 12,032 | 4,188 | 1,552 | |||
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 | 89 | 51 | 5 | 46 | 38 | |||||||
Purchase of treasury stock | (1,168) | (1,168) | (8) | (1,160) | ||||||||
Reissuance of treasury stock | (47) | (47) | (47) | |||||||||
Retirement of common stock | 0 | 0 | 822 | (822) | ||||||||
Repurchase of AB Holding units | (122) | (122) | ||||||||||
Dividends paid to noncontrolling interest | (296) | (296) | ||||||||||
Dividends on common stock | (224) | (224) | (224) | |||||||||
Dividends on preferred stock | (53) | (53) | (53) | |||||||||
Issuance of preferred stock | 293 | 293 | 293 | |||||||||
Net income (loss) | (416) | (693) | (693) | 277 | ||||||||
Other comprehensive income (loss) | (1,992) | (1,987) | (1,987) | (5) | ||||||||
Other | (69) | (68) | (65) | (3) | (1) | |||||||
End of year at Sep. 30, 2021 | 13,172 | 11,680 | 1,562 | 5 | 1,917 | (2,537) | 8,857 | 1,876 | 1,492 | |||
Beginning of year at Jun. 30, 2021 | 13,304 | 11,732 | 1,562 | 5 | 1,980 | (2,537) | 8,739 | 1,983 | 1,572 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock compensation | 0 | (27) | (26) | (1) | 27 | |||||||
Purchase of treasury stock | (459) | (459) | 3 | (462) | ||||||||
Reissuance of treasury stock | 0 | 0 | 0 | |||||||||
Retirement of common stock | 0 | 0 | 463 | (463) | ||||||||
Repurchase of AB Holding units | (95) | (95) | ||||||||||
Dividends paid to noncontrolling interest | (101) | (101) | ||||||||||
Dividends on common stock | (74) | (74) | (74) | |||||||||
Dividends on preferred stock | (14) | (14) | (14) | |||||||||
Issuance of preferred stock | 0 | 0 | 0 | |||||||||
Net income (loss) | 765 | 672 | 672 | 93 | ||||||||
Other comprehensive income (loss) | (110) | (107) | (107) | (3) | ||||||||
Other | (44) | (43) | (40) | (3) | (1) | |||||||
End of year at Sep. 30, 2021 | $ 13,172 | $ 11,680 | $ 1,562 | $ 5 | $ 1,917 | $ (2,537) | $ 8,857 | $ 1,876 | $ 1,492 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.18 | $ 0.17 | $ 0.53 | $ 0.49 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Statement of Cash Flows [Abstract] | |||
Net income (loss) | $ (412) | $ 787 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Interest credited to policyholders’ account balances | 905 | 930 | |
Policy charges and fee income | (2,755) | (2,787) | |
Net derivative (gains) losses | 3,930 | (1,890) | |
Credit losses on AFS debt securities and loans | (4) | 47 | |
Investment (gains) losses, net | (761) | (287) | |
(Gains) losses on businesses HFS | (2) | 50 | |
Realized and unrealized (gains) losses on trading securities | 48 | (133) | |
Non-cash long term incentive compensation expense | 34 | 55 | |
Non-cash pension plan restructuring | 0 | 0 | |
Amortization and depreciation | 336 | 1,668 | |
Equity (income) loss from limited partnerships | (431) | 14 | |
Changes in: | |||
Net broker-dealer and customer related receivables/payables | (625) | 980 | |
Reinsurance recoverable | [1] | (758) | (316) |
Segregated cash and securities, net | 845 | (774) | |
Capitalization of deferred policy acquisition costs | (620) | (489) | |
Future policy benefits | (107) | 1,867 | |
Current and deferred income taxes | (516) | 237 | |
Other, net | 539 | 46 | |
Net cash provided by (used in) operating activities | (354) | 5 | |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 25,911 | 10,422 | |
Fixed maturities, at fair value using the fair value option | 610 | 0 | |
Mortgage loans on real estate | 1,417 | 454 | |
Trading account securities | 5,115 | 1,529 | |
Short term investments | 84 | 1,434 | |
Other | 1,447 | 570 | |
Payment for the purchase/origination of: | |||
Fixed maturities, available-for-sale | (33,276) | (17,393) | |
Fixed maturities, at fair value using the fair value option | (1,564) | 0 | |
Mortgage loans on real estate | (1,680) | (1,208) | |
Trading account securities | (178) | (550) | |
Short term investments | (14) | (1,100) | |
Other | (2,259) | (702) | |
Cash from the sale of business, net of cash sold | 215 | 164 | |
Cash settlements related to derivative instruments | (6,502) | 2,503 | |
Repayments of loans to affiliates | 0 | 0 | |
Investment in capitalized software, leasehold improvements and EDP equipment | (93) | (44) | |
Other, net | (8) | (47) | |
Net cash provided by (used in) investing activities | (10,775) | (3,968) | |
Cash flows from financing activities: | |||
Deposits | 12,760 | 7,928 | |
Withdrawals | (4,617) | (3,116) | |
Transfers (to) from Separate Accounts | 1,455 | 1,919 | |
Change in short-term financings | 1 | 0 | |
Change in collateralized pledged assets | 55 | 60 | |
Change in collateralized pledged liabilities | 1,494 | 1,973 | |
(Decrease) increase in overdrafts payable | 25 | 3 | |
Repayment of long-term debt | (280) | 0 | |
Proceeds from notes issued by consolidated VIEs | 874 | 0 | |
Dividends paid on common stock | (224) | (222) | |
Dividends paid on preferred stock | (53) | (34) | |
Issuance of preferred stock | 293 | 494 | |
Purchases of AB Holding Units to fund long-term incentive compensation plan awards | (122) | (54) | |
Purchase of treasury shares | (1,169) | (330) | |
Purchases (redemptions) of noncontrolling interests of consolidated company-sponsored investment funds | 23 | (260) | |
Distribution to noncontrolling interest of consolidated subsidiaries | (296) | (230) | |
Other, net | (38) | 45 | |
Net cash provided by (used in) financing activities | 10,181 | 8,176 | |
Effect of exchange rate changes on cash and cash equivalents | (15) | 1 | |
Change in cash and cash equivalents | (963) | 4,214 | |
Cash and cash equivalents, beginning of year | 6,179 | 4,405 | |
Change in cash of businesses held-for-sale | 39 | 65 | |
Cash and cash equivalents, end of year | 5,255 | 8,684 | |
Non-cash transactions from investing and financing activities: | |||
Right-of-use assets obtained in exchange for lease obligations | 93 | 24 | |
Transfer of assets to reinsurer | $ (9,023) | $ 0 | |
[1] | Amount includes cash paid for Venerable transaction of $494 million . (see Note 1 Organization). |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Statement of Cash Flows [Abstract] | |
Cash paid for Venerable reinsurance transaction | $ 494 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 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 September 30, 2021 and December 31, 2020 the Company’s economic interest in AB was approximately 65% for both periods. 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 June 1, 2021, Holdings completed its previously announced sale (the “Transaction”) of Corporate Solutions Life Reinsurance Company, an insurance company domiciled in Delaware and wholly owned subsidiary of the Company (“CSLRC”), to Venerable Insurance and Annuity Company, an insurance company domiciled in Iowa (“VIAC”), pursuant to the Master Transaction Agreement, dated October 27, 2020 (the “Master Transaction Agreement”), among the Company, VIAC and, solely with respect to Article XIV thereof, Venerable Holdings, Inc., a Delaware corporation (“Venerable”). Pursuant to the Master Transaction Agreement, immediately prior to the closing of the Transaction, CSLRC effected the recapture of all of the business that was ceded to CS Life Re Company, an insurance company domiciled in Arizona and wholly owned subsidiary of CSLRC (“Reinsurance Subsidiary”), and sold 100% of the equity of the Reinsurance Subsidiary to another wholly owned subsidiary of the Company. VIAC paid the Company a cash purchase price of $215 million for CSLRC at closing. The post-closing true-up adjustment is expected to be immaterial. VIAC also issued a surplus note in aggregate principal amount of $50 million to Equitable Financial Life Insurance Company, a New York-domiciled life insurance company and a wholly owned subsidiary of Holdings, for cash consideration. Immediately following the closing of the Transaction, CSLRC and Equitable Financial entered into a coinsurance and modified coinsurance agreement (the “Reinsurance Agreement”), pursuant to which Equitable Financial ceded to CSLRC, on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate Guaranteed Minimum Income Benefit and/or Guaranteed Minimum Death Benefit guarantees. At the closing of the Transaction, CSLRC deposited assets supporting the general account liabilities relating to the Block into a trust account for the benefit of Equitable Financial, which assets will secure its obligations to Equitable Financial under the Reinsurance Agreement. At the closing of the Transaction, AllianceBernstein L.P., a subsidiary of the Company (“AB”), entered into an investment advisory agreement with CSLRC pursuant to which AB will serve as the preferred investment manager of the general account assets transferred to the trust account. The Company transferred assets of $9.5 billion, including primarily available for sale securities and cash, to a collateral trust account as the consideration for the reinsurance transaction. In addition, the Company recorded $9.6 billion of direct insurance liabilities ceded under the reinsurance contract, of which $5.3 billion is accounted at fair value, as the reinsurance of GMxB with no lapse guarantee riders are embedded derivatives. Additionally, $16.9 billion of Separate Account liabilities were ceded under a modified coinsurance portion of the agreement. In addition, upon the completion of the Transaction, Equitable Investment Management Group, LLC, a wholly owned subsidiary of the Company, acquired an approximate 9.09% equity interest in Venerable’s parent holding company, VA Capital Company LLC. In connection with such investment, Equitable Investment Management Group, LLC designated a member to the Board of Managers of VA Capital Company LLC. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 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 “third quarter 2021” and “third quarter 2020” refer to the three months ended September 30, 2021 and 2020, respectively. The terms “first nine months of 2021” and “first nine months of 2020” refer to the nine months ended September 30, 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. Future Adoption of New Accounting Pronouncements 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. 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. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters 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. 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 September 30, 2021 and December 31, 2020, the carrying value of COLI was $1,008 million and $992 million, respectively, and is reported in Other invested assets in the consolidated balance sheets. Derivatives Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include equity, currency, and interest rate futures, total return and/or other equity swaps, interest rate swaps and floors, swaptions, variance swaps and equity options, all of which may be exchange-traded or contracted in the OTC market. All derivative positions are carried in the consolidated balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models. Freestanding derivative contracts are reported in the consolidated balance sheets either as assets within “other invested assets” or as liabilities within “other liabilities”. 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. All changes in the fair value of the Company’s freestanding derivative positions not designated to hedge accounting relationships, including net receipts and payments, are included in “net derivative gains (losses)” without considering changes in the fair value of the economically associated assets or liabilities. The Company has designated certain derivatives it uses to economically manage asset/liability risk in relationships which qualify for hedge accounting. To qualify for hedge accounting, we formally document our designation at inception of the hedge relationship as a cash flow, fair value or net investment hedge. This documentation includes our risk management objective and strategy for undertaking the hedging transaction. The Company identifies how the hedging instrument is expected to offset the designated risks related to the hedged item and the method that will be used to retrospectively and prospectively assess the hedge effectiveness. To qualify for hedge accounting, a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed and documented at inception and periodically throughout the life of the hedge accounting relationship. The Company does not exclude any components of the hedging instrument from the effectiveness assessments and therefor does not separately measure or account for any excluded components of the hedging instrument. While in cash flow hedge relationships, any periodic net receipts and payments from the hedging instrument are included in the income or expense line that the hedged item’s periodic income or expense is recognized. Other changes in the fair value of the hedging instrument while in a cash flow hedging relationship are reported within OCI. These amounts are deferred in AOCI until they are reclassified to Net income (loss). The reclassified amount offsets the effect of the cash flows on Net income (loss) in the same period when the hedged item affects earnings and on the same line as the hedged item. We discontinue cash flow hedge accounting prospectively when the Company determines: (1) the hedging instrument is no longer highly effective in offsetting changes in the cash flow from the hedged risk, (2) the hedged item is no longer probable of occurring within two months of their forecast, or (3) the hedging instrument is otherwise redesignated from the hedging relationship. Changes in the fair value of the derivative after discontinuation of cash flow hedge accounting are accounted for as freestanding derivative positions not designated to hedge accounting relationships unless and until the derivative is redesignated to a hedge accounting relationship. When cash flow hedge accounting is discontinued the amounts deferred in AOCI during the hedge relationship continue to be deferred in AOCI, as long as the hedged items continue to be probable of occurring within two months of their forecast, until the hedged item affects Net income (loss). Any amount deferred in AOCI for hedged items which are no longer probable of occurring within two months of their forecast will be reclassified to “net derivative gains (losses)” at that time. The Company is a party to financial instruments and other contracts that contain “embedded” derivative instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are “clearly and closely related” to the economic characteristics of the remaining component of the “host contract” and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. Once those criteria are met the resulting embedded derivative is bifurcated from the host contract, carried in the consolidated balance sheets at fair value, and changes in its fair value are recognized immediately and captioned in the consolidated statements of income (loss) according to the nature of the related host contract. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company instead may elect to carry the entire instrument at fair value. Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment and recognized as a component of other expenses on a basis consistent with the expected life of the underlying reinsured contracts. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as premiums ceded (assumed); and amounts due from reinsurers (amounts due to reinsurers) are established. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. Reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. Premiums, policy charges and fee income, and policyholders’ benefits include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives as they are net settled. These embedded derivatives are included in GMIB reinsurance contract asset, at fair value with changes in estimated fair value reported in net derivative gains (losses). Separate Account liabilities that have been ceded on a Modified coinsurance (Modco) basis, receivable and payable have been recognized on a net basis as right of set off exists. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within other assets. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other income or other operating costs and expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. For reinsurance contracts other than those accounted for as derivatives, reinsurance recoverable balances are calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities. 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 CLOs. As of September 30, 2021 and December 31, 2020, respectively, Equitable Financial holds $116 million and $38 million of equity interests in the CLOs. The Company consolidated the CLOs as of September 30, 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 CLOs loan manager. The assets of the CLOs are legally isolated from the Company’s creditors and can only be used to settle obligations of the CLOs. The liabilities of the CLOs are non-recourse to the Company and the Company has no obligation to satisfy the liabilities of the CLOs. As of September 30, 2021, Equitable Financial holds $5 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 consolidated the SPE as of September 30, 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 $1,334 million and $389 million notes issued by consolidated variable interest entities, at fair value using the fair value option with total liabilities of $1,190 million and $313 million at September 30, 2021 and December 31, 2020, respectively . The unpaid outstanding principal balance of the notes and short-term borrowing is $1.2 billion and $362 million at September 30, 2021 and December 31, 2020. Consolidated Limited Partnerships and LLCs As of September 30, 2021 and December 31, 2020 the Company consolidated limited partnerships and LLCs for which it was identified as the primary beneficiary under the VIE model. Included in Other invested assets, Mortgage loans on real estate and Other equity investments in the Company’s consolidated balance sheets at September 30, 2021 and December 31, 2020 are total assets of $182 million and $12 million, respectively related to these VIEs. Consolidated AB-Sponsored Investment Funds Included in the Company’s consolidated balance sheet as of September 30, 2021 and December 31, 2020 are assets of $322 million and $284 million, liabilities of $33 million and $8 million, and redeemable noncontrolling interests of $118 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 September 30, 2021 and December 31, 2020 are assets of $0 million and $68 million, liabilities of $0 million and $23 million, and redeemable noncontrolling interests of $0 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 September 30, 2021 and December 31, 2020 respectively, the Company held approximately $2.1 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 $240.7 billion and $165.9 billion as of September 30, 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 $2.1 billion and $1.4 billion and approximately $1.3 billion and $1.2 billion of unfunded commitments as of September 30, 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 September 30, 2021 and December 31, 2020, the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $70.4 billion and $73.4 billion, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $8 million and $7 million as of September 30, 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. Annual Update The net impact of assumption changes in the third quarter of 2021 decreased policy charges and fee income by $28 million, decreased policyholders’ benefits by $62 million, increased net derivative losses by $200 million and decreased amortization of DAC by $58 million. This resulted in a decrease in income (loss) from operations, before income taxes of $108 million and decreased net income (loss) by $85 million. As part of this annual update, the reference interest rate utilized in our GAAP fair value calculations was updated from the LIBOR swap curve to the US Treasury curve due to the impending cessation of LIBOR and our GAAP fair value liability risk margins were increased, resulting in little impact to overall valuation as our view regarding market participant pricing of our guarantees has not changed at this time. The net impact of assumption changes in the third quarter of 2020 decreased policy charges and fee income by $23 million, increased policyholders’ benefits by $193 million, increased interest credited to policyholders’ account balances by $ |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 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 September 30, 2021 was $516 million. There was no accrued interest written off for AFS fixed maturities for the three and nine months ended September 30, 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) September 30, 2021 Fixed Maturities: Corporate (1) $ 49,613 $ 27 $ 3,049 $ 183 $ 52,452 U.S. Treasury, government and agency 13,487 — 1,790 24 15,253 States and political subdivisions 558 — 82 3 637 Foreign governments 977 — 43 17 1,003 Residential mortgage-backed (2) 97 — 9 — 106 Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Asset-backed (3) 5,559 — 29 4 5,584 Commercial mortgage-backed 1,863 — 28 12 1,879 Redeemable preferred stock (5) 41 — 13 — 54 Total at September 30, 2021 $ 72,195 $ 27 $ 5,043 $ 243 $ 76,968 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 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 September 30, 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) September 30, 2021 Contractual maturities: Due in one year or less $ 1,879 $ 1,891 Due in years two through five 17,877 18,716 Due in years six through ten 17,641 18,805 Due after ten years 27,211 29,933 Subtotal 64,608 69,345 Residential mortgage-backed 97 106 Asset-backed 5,559 5,584 Commercial mortgage-backed 1,863 1,879 Redeemable preferred stock 41 54 Total at September 30, 2021 $ 72,168 $ 76,968 The following table shows proceeds from sales, gross gains (losses) from sales and credit losses for AFS fixed maturities for the three and nine months ended September 30, 2021 and 2020: Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Proceeds from sales $ 3,701 $ 1,433 $ 20,776 $ 6,200 Gross gains on sales $ 171 $ 26 $ 1,019 $ 303 Gross losses on sales $ (8) $ (5) $ (162) $ (39) Credit losses $ (2) $ — $ (14) $ (13) 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Balance, beginning of period $ 42 $ 32 $ 32 $ 21 Previously recognized impairments on securities that matured, paid, prepaid or sold (1) — (4) (2) 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 — (3) 8 7 Additional credit losses this period on securities previously impaired 1 3 6 6 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 September 30, $ 42 $ 32 $ 42 $ 32 ______________ (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, July 1, 2021 $ 5,361 $ (1,165) $ (414) $ (794) $ 2,988 Net investment gains (losses) arising during the period (395) — — — (395) Reclassification adjustment: Included in Net income (loss) (165) — — — (165) Excluded from Net income (loss) — — — — — Other (1) — — — — — Impact of net unrealized investment gains (losses) — 377 33 31 441 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) excluding credit losses 4,801 (788) (381) (763) 2,869 Net unrealized investment gains (losses) with credit losses (1) — — — (1) Balance, September 30, 2021 $ 4,800 $ (788) $ (381) $ (763) $ 2,868 Balance, July 1, 2020 $ 8,728 $ (1,521) $ (1,034) $ (1,297) $ 4,876 Net investment gains (losses) arising during the period 362 — — — 362 Reclassification adjustment: Included in Net income (loss) (21) — — — (21) Excluded from Net income (loss) — — — — — Impact of net unrealized investment gains (losses) — 23 (13) (74) (64) Net unrealized investment gains (losses) excluding credit losses 9,069 (1,498) (1,047) (1,371) 5,153 Net unrealized investment gains (losses) with credit losses 3 (1) — — 2 Balance, September 30, 2020 $ 9,072 $ (1,499) $ (1,047) $ (1,371) $ 5,155 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 (3,231) — — — (3,231) Reclassification adjustment: Included in net income (loss) (747) — — — (747) Excluded from net income (loss) — — — — — Other (1) (33) — — — (33) Impact of net unrealized investment gains (losses) — 761 685 539 1,985 Net unrealized investment gains (losses) excluding credit losses 4,800 (787) (380) (763) 2,870 Net unrealized investment gains (losses) with credit losses — (1) (1) — (2) Balance, September 30, 2021 $ 4,800 $ (788) $ (381) $ (763) $ 2,868 Balance, January 1, 2020 $ 3,453 $ (894) $ (189) $ (497) $ 1,873 Net investment gains (losses) arising during the period 5,898 — — — 5,898 Reclassification adjustment: Included in net income (loss) (273) — — — (273) Excluded from net income (loss) — — — — — Impact of net unrealized investment gains (losses) — (606) (859) (875) (2,340) Net unrealized investment gains (losses) excluding credit losses 9,078 (1,500) (1,048) (1,372) 5,158 Net unrealized investment gains (losses) with credit losses (6) 1 1 1 (3) Balance, September 30, 2020 $ 9,072 $ (1,499) $ (1,047) $ (1,371) $ 5,155 ______________ (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 1,423 issues as of September 30, 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) September 30, 2021 Fixed Maturities: Corporate $ 8,383 $ 155 $ 516 $ 27 $ 8,899 $ 182 U.S. Treasury, government and agency 1,465 24 — — 1,465 24 States and political subdivisions 104 2 7 1 111 3 Foreign governments 380 11 42 6 422 17 Asset-backed 818 3 20 — 838 3 Commercial mortgage-backed 891 12 2 — 893 12 Total at September 30, 2021 $ 12,041 $ 207 $ 587 $ 34 $ 12,628 $ 241 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. 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 0.6% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of September 30, 2021 and December 31, 2020 were $337 million and $391 million, respectively, representing 2.6% 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 September 30, 2021 and December 31, 2020, respectively, approximately $3.0 billion and $2.5 billion, or 4.2% and 3.4%, of the $72.2 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 $20 million and $49 million as of September 30, 2021 and December 31, 2020, respectively. As of September 30, 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 September 30, 2021 or December 31, 2020. As of September 30, 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 September 30, 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 September 30, 2021 was $30 million and $29 million, respectively. There was no accrued interest written off for commercial and agricultural mortgage loans for the three and nine months ended September 30, 2021. As of September 30, 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 and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 59 $ 62 $ 77 $ 33 Current-period provision for expected credit losses 1 4 (17) 33 Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — — — Net change in allowance 1 4 (17) 33 Balance, end of period $ 60 $ 66 $ 60 $ 66 Agricultural mortgages: Balance, beginning of period $ 4 $ 4 $ 4 $ 3 Current-period provision for expected credit losses — — — 1 Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — — — Net change in allowance — — — 1 Balance, end of period $ 4 $ 4 $ 4 $ 4 Total allowance for credit losses $ 64 $ 70 $ 64 $ 70 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 September 30, 2021 and December 31, 2020. LTV Ratios (1) September 30, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ 1 $ — $ 184 $ 324 $ 927 $ 1,436 50% - 70% 1,286 1,265 390 619 492 2,853 6,905 70% - 90% 97 320 413 451 275 748 2,304 90% plus — — — 12 5 207 224 Total commercial $ 1,383 $ 1,586 $ 803 $ 1,266 $ 1,096 $ 4,735 $ 10,869 Agricultural: 0% - 50% $ 113 $ 215 $ 130 $ 131 $ 133 $ 774 $ 1,496 50% - 70% 174 270 105 134 88 359 1,130 70% - 90% — — — — — 17 17 90% plus — — — — — — — Total agricultural $ 287 $ 485 $ 235 $ 265 $ 221 $ 1,150 $ 2,643 Total mortgage loans: 0% - 50% $ 113 $ 216 $ 130 $ 315 $ 457 $ 1,701 $ 2,932 50% - 70% 1,460 1,535 495 753 580 3,212 8,035 70% - 90% 97 320 413 451 275 765 2,321 90% plus — — — 12 5 207 224 Total mortgage loans $ 1,670 $ 2,071 $ 1,038 $ 1,531 $ 1,317 $ 5,885 $ 13,512 Debt Service Coverage Ratios (2 ) September 30, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 705 $ 1,276 $ 328 $ 772 $ 408 $ 2,211 $ 5,700 1.8x to 2.0x 132 136 233 93 269 385 1,248 1.5x to 1.8x 183 115 167 223 166 825 1,679 1.2x to 1.5x 64 59 75 54 253 838 1,343 1.0x to 1.2x 299 — — 88 — 255 642 Less than 1.0x — — — 36 — 221 257 Total commercial $ 1,383 $ 1,586 $ 803 $ 1,266 $ 1,096 $ 4,735 $ 10,869 Agricultural: Greater than 2.0x $ 37 $ 66 $ 25 $ 16 $ 33 $ 217 $ 394 1.8x to 2.0x 38 37 26 21 14 74 210 1.5x to 1.8x 50 114 29 28 44 198 463 1.2x to 1.5x 122 180 114 117 73 375 981 1.0x to 1.2x 40 84 32 78 56 247 537 Less than 1.0x — 4 9 5 1 39 58 Total agricultural $ 287 $ 485 $ 235 $ 265 $ 221 $ 1,150 $ 2,643 Total mortgage loans: Greater than 2.0x $ 742 $ 1,342 $ 353 $ 788 $ 441 $ 2,428 $ 6,094 1.8x to 2.0x 170 173 259 114 283 459 1,458 1.5x to 1.8x 233 229 196 251 210 1,023 2,142 1.2x to 1.5x 186 239 189 171 326 1,213 2,324 1.0x to 1.2x 339 84 32 166 56 502 1,179 Less than 1.0x — 4 9 41 1 260 315 Total mortgage loans $ 1,670 $ 2,071 $ 1,038 $ 1,531 $ 1,317 $ 5,885 $ 13,512 ______________ (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 September 30, 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) September 30, 2021: Mortgage loans: Commercial: 0% - 50% $ 877 $ — $ 390 $ 31 $ 40 $ 98 $ 1,436 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) 50% - 70% 4,026 680 993 755 421 30 6,905 70% - 90% 797 568 210 492 181 56 2,304 90% plus — — 86 65 — 73 224 Total commercial $ 5,700 $ 1,248 $ 1,679 $ 1,343 $ 642 $ 257 $ 10,869 Agricultural: 0% - 50% $ 289 $ 98 $ 283 $ 501 $ 296 $ 29 $ 1,496 50% - 70% 105 110 180 480 241 14 1,130 70% - 90% — 2 — — — 15 17 90% plus — — — — — — — Total agricultural $ 394 $ 210 $ 463 $ 981 $ 537 $ 58 $ 2,643 Total mortgage loans: 0% - 50% $ 1,166 $ 98 $ 673 $ 532 $ 336 $ 127 $ 2,932 50% - 70% 4,131 790 1,173 1,235 662 44 8,035 70% - 90% 797 570 210 492 181 71 2,321 90% plus — — 86 65 — 73 224 Total mortgage loans $ 6,094 $ 1,458 $ 2,142 $ 2,324 $ 1,179 $ 315 $ 13,512 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 September 30, 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) September 30, 2021: Mortgage loans: Commercial $ — $ — $ — $ — $ 10,869 $ 10,869 $ — $ 10,869 $ — $ — Agricultural 8 3 66 77 2,566 2,643 — 2,643 — — Total $ 8 $ 3 $ 66 $ 77 $ 13,435 $ 13,512 $ — $ 13,512 $ — $ — 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 September 30, 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 privately negotiated fixed maturity modifications accounted for as a TDR during the three months ended September 30, 2021. During the nine months ended September 30, 2021, the Company had one new privately negotiated fixed maturity TDR with a pre-modification cost basis of $9 million and post-modification carrying value of $4 million. This TDR did not have subsequent payment defaults nor additional commitments to lend. The one privately negotiated fixed maturity TDR is 0.004% of the Company’s total invested assets. There were no mortgage loan on real estate modifications accounted for as a TDR during three and nine months ended September 30, 2021. During the three and nine months ended September 30, 2020, the Company had two and six privately negotiated fixed maturity TDRs with a pre-modification cost basis of $8 million and $50 million and post-modification carrying value of $7 million and $44 million, respectively. These TDRs did not have subsequent payment defaults nor additional commitments to lend. The six privately negotiated fixed maturity TDRs were 0.04% of the Company’s total invested assets. During the three and nine months ended September 30, 2020, there was one commercial mortgage loan on real estate accounted for as a TDR with a pre-modification cost basis of $75 million and post-modification carrying value of $75 million. The one commercial mortgage loan TDR was 0.07% of the Company’s total invested assets. Equity Securities The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three and nine months ended September 30, 2021. Unrealized and Realized Gains (Losses) from Equity Securities (1) Three Months Ended September 30, Nine Months Ended September 30, 2021 2021 (in millions) (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (48) $ (8) Net investment gains (losses) recognized on equity securities sold during the period 43 47 Unrealized and realized gains (losses) on equity securities $ (5) $ 39 ______________ (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 September 30, 2021 and December 31, 2020, respectively, the fair value of the Company’s trading securities was $584 million and $5.6 billion. As of September 30, 2021 and December 31, 2020, respectively, trading securities included the General Account’s investment in Separate Accounts which had carrying values of $43 million and $44 million. The table below shows a breakdown of net investment income (loss) from trading securities during the three and nine months ended September 30, 2021 and 2020. Net Investment Income (Loss) from Trading Securities Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (57) $ (13) $ (303) $ 88 Net investment gains (losses) recognized on securities sold during the period 42 16 255 45 Unrealized and realized gains (losses) on trading securities (15) 3 (48) 133 Interest and dividend income from trading securities 4 60 85 159 Net investment income (loss) from trading securities $ (11) $ 63 $ 37 $ 292 Fixed maturities, at fair value using the fair value option The table below shows a breakdown of net investment income (loss) from fixed maturities, at fair value using the fair value option during the three and nine months ended September 30, 2021. Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option Three Months Ended September 30, Nine Months Ended September 30, 2021 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 9 $ 7 Net investment gains (losses) recognized on securities sold during the period 1 3 Unrealized and realized gains (losses) from fixed maturities 10 10 Interest and dividend income from fixed maturities 12 22 Net investment income (loss) from fixed maturities $ 22 $ 32 |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 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. In addition, on June 1, 2021, we ceded legacy variable annuity policies sold by EFLIC between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate GMIB and/or GMDB guarantees. As this contract provides full risk transfer, the benefits of this treaty are accounted for in the same manner as the underlying gross reserves and therefore the Amounts Due from Reinsurers related to the GMIB with NLG are accounted for as an embedded 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. Derivatives Utilized to Hedge Exposure to Foreign Currency Denominated Cash Flows The Company purchases private placement debt securities and issues funding agreements in the FABN program in currencies other than its functional US dollar currency. The Company enters into cross currency swaps with external counterparties to hedge the exposure of the foreign currency denominated cash flows of these instruments. The foreign currency received from or paid to the cross currency swap counterparty is exchanged for fixed US dollar amounts with improved net investment yields or net product costs over equivalent US dollar denominated instruments issued at that time. The transactions are accounted for as cash flow hedges when they are designated in hedging relationships and qualify for hedge accounting. The first cross currency swap hedges were designated and applied hedge accounting during the quarter ended June 30, 2021. These cross currency swaps are for the period the foreign currency denominated private placement debt securities and funding agreement are outstanding, with the longest cross currency swap expiring in 2033. Since designation and qualification as cash flow hedges, cross currency swap interest accruals are recognized in Net investment income and in Interest credited to policyholders’ account balances. The tables below present quantitative disclosures about the Company’s derivative instruments designated in hedging relationships and derivative instruments which have not been designated in hedging relationships, including those embedded in other contracts required to be accounted for as derivative instruments. The following table presents the gross notional amount and estimated fair value of the Company’s derivatives: Derivative Instruments by Category September 30, 2021 December 31, 2020 Fair Value Fair Value Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities (in millions) Derivatives: Designated for Hedge accounting (1) Cash Flow Hedges: Currency Swaps $ 807 $ 8 $ 33 $ — $ — $ — Interest Swaps 958 — 335 957 — 219 Total: Designated for Hedge accounting 1,765 8 368 957 — 219 Derivatives: Not designated for Hedge accounting (1) Equity contracts: Futures (5) 3,518 2 — 4,881 — 2 Swaps (5) 12,907 5 — 22,456 6 2 Options 55,487 10,401 4,509 35,848 8,396 3,726 Interest rate contracts: Futures (5) 11,079 — — 18,571 — — Swaps (5) 2,875 — 243 22,877 553 437 Swaptions — — — — — — Credit contracts: Credit default swaps 902 10 10 1,087 19 14 Currency Currency Swaps 516 3 — 411 9 9 Currency forwards 74 8 7 — — — Other freestanding contracts: Margin — 111 — — 49 66 Collateral — 157 6,097 — 212 3,839 Total: Not designated for Hedge accounting 87,358 10,697 10,866 106,131 9,244 8,095 Embedded derivatives: Amounts due from reinsurers (6) — 5,869 — — — — GMIB reinsurance contracts (2) — 1,937 — — 2,488 — GMxB derivative features liability (3) — — 8,938 — — 11,131 SCS, SIO, MSO and IUL indexed features (4) — — 5,565 — — 4,509 Total Embedded — 7,806 14,503 — 2,488 15,640 Total derivative instruments $ 89,123 $ 18,511 $ 25,737 $ 107,088 $ 11,732 $ 23,954 ___________ (1) Reported in other invested assets in the consolidated balance sheets. (2) Reported in GMIB reinsurance contract asset in the consolidated balance sheets. (3) Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) Reported in policyholders’ account balances in the consolidated balance sheets. (5) Decrease in futures and swaps notional as of September 30, 2021 is primarily due to Venerable transaction (see Note 1 Organization). (6) Represents GMIB NLG ceded related to the Venerable transaction. The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss). Derivative Instruments by Category Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 (in millions) Net Derivatives Gain(Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI Net Derivatives Gain(Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI Derivatives: Designated for Hedge accounting Cash Flow Hedges: Currency Swaps $ — $ — $ (15) $ 8 $ — $ — $ (32) $ 8 Interest Swaps (26) — — (9) (54) — — (42) Total: Designated for Hedge accounting (26) — (15) (1) (54) — (32) (34) Derivatives: Not Designated for Hedge accounting Equity Futures (2) — — — (451) — — — Swaps (3) — — — (2,613) — — — Options (169) — — — 2,177 — — — Interest Rate Futures (93) — — — (891) — — — Swaps 67 — — — (2,375) — — — Swaptions — — — — — — — — Credit Credit Default Swaps — — — — — — — — Currency Currency Swaps 3 — — — 3 — — — Currency forwards 1 — — — 2 — — — Other Margin — — — — — — — — Collateral — — — — — — — — Total: Not Designated for Hedge accounting (196) — — — (4,148) — — — Embedded Derivatives Amounts due from reinsurers 344 — — — 586 — — — GMIB reinsurance contracts (84) — — — (542) — — — GMxB derivative features liability (2) (395) — — — 2,340 — — — SCS, SIO,MSO and IUL indexed features 172 — — — (2,157) — — — Total Embedded $ 37 $ — $ — $ — $ 227 $ — $ — $ — Total Derivatives $ (185) $ — $ (15) $ (1) $ (3,975) $ — $ (32) $ (34) Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 (in millions) Net Derivatives Gain(Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI Net Derivatives Gain(Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI Derivatives: Designated for Hedge accounting Cash Flow Hedges: Interest Swaps $ (12) $ — $ — $ (65) $ (4) $ — $ — $ (64) Total: Designated for Hedge accounting (12) — — (65) (4) — — (64) Derivatives: Not designated for Hedge accounting Equity Futures (208) — — — (401) — — — Swaps (1,563) — — — (604) — — — Options 909 — — — (481) — — — Interest Rate Futures (16) — — — 2,051 — — — Swaps (59) — — — 3,592 — — — Swaptions — — — — 9 — — — Credit Credit Default Swaps 1 — — — 2 — — — Currency Currency Swaps — — — — — — — — Currency forwards (1) — — — (3) — — — Other Margin — — — — — — — — Collateral — — — — — — — — Total: Not designated for Hedge accounting (937) — — — 4,165 — — — Embedded Derivatives Amounts due from reinsurers — — — — — — — — GMIB reinsurance contracts (102) — — — 737 — — — GMxB derivative features liability 579 — — — (3,421) — — — SCS, SIO,MSO and IUL indexed features (1,000) — — — 414 — — — Total Embedded $ (523) $ — $ — $ — $ (2,270) $ — $ — $ — Total Derivatives $ (1,472) $ — $ — $ (65) $ 1,891 $ — $ — $ (64) (1) Reported in net derivative gains (losses) in the consolidated statements of income (loss). (2) Excludes settlement fees of $45 million on CS Life reinsurance contract for the nine months ended September 30, 2021 . The table that follow below present a roll-forward of cash flow hedges recognized in AOCI. Rollforward of Cash flow hedges in AOCI Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Balance, beginning of period $ (158) $ 1 $ (126) $ (38) Amount recorded in AOCI — — Currency Swaps 7 — 7 — Interest Swaps (40) (81) (118) (46) Total Amount recorded in AOCI (33) (81) (111) (46) Amount reclassified from AOCI to income — — — Currency Swaps — — — — Interest Swaps 31 16 77 20 Total Amount reclassified from AOCI to income 31 16 77 20 Ending Balance, September 30 (1) $ (160) $ (64) $ (160) $ (64) _______________ (1) The Company does not estimate the amount of the deferred losses in AOCI at three and nine months ended September 30, 2021 and 2020 which will be released and reclassified into Net income (loss) over the next 12 months as the amounts cannot be reasonably estimated. Equity-Based and Treasury Futures Contracts Margin All outstanding equity-based and treasury futures contracts as of September 30, 2021 and December 31, 2020 are exchange-traded and net settled daily in cash. As of September 30, 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 $169 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 $118 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 $16 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 September 30, 2021 and December 31, 2020, respectively, the Company held $6.1 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 $157 million and $212 million as of September 30, 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 September 30, 2021 and December 31, 2020: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of September 30, 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) $ 10,707 $ 9,774 $ 933 $ (817) $ 116 Other financial assets 1,727 — 1,727 — 1,727 Other invested assets $ 12,434 $ 9,774 $ 2,660 $ (817) $ 1,843 Liabilities: Derivative liabilities (2) $ 10,418 $ 9,774 $ 644 $ — $ 644 Other financial liabilities 4,699 — 4,699 — 4,699 Other liabilities $ 15,117 $ 9,774 $ 5,343 $ — $ 5,343 ______________ (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 assets 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 | 9 Months Ended |
Sep. 30, 2021 | |
Closed Block Disclosure [Abstract] | |
CLOSED BLOCK | CLOSED BLOCK As 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. Summarized financial information for the Company’s Closed Block is as follows: September 30, 2021 December 31, 2020 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 6,022 $ 6,201 Policyholder dividend obligation 25 160 Other liabilities 40 39 Total Closed Block liabilities 6,087 6,400 Assets Designated to the Closed Block: Fixed maturities AFS, at fair value (amortized cost of $3,283 and $3,359) (allowance for credit losses of $0) 3,537 3,718 Mortgage loans on real estate (net of allowance for credit losses of $5 and $6) 1,770 1,773 Policy loans 615 648 Cash and other invested assets 18 28 Other assets 98 169 Total assets designated to the Closed Block 6,038 6,336 Excess of Closed Block liabilities over assets designated to the Closed Block 49 64 Amounts included in AOCI: Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $25 and $160; and net of income tax: $(48) and $(42) 191 167 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 240 $ 231 The Company’s Closed Block revenues and expenses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Revenues: Premiums and other income $ 33 $ 36 $ 109 $ 118 Net investment income (loss) 59 61 179 190 Investment gains (losses), net — 1 2 (1) Total revenues 92 98 290 307 Benefits and Other Deductions: Policyholders’ benefits and dividends 108 96 304 302 Other operating costs and expenses 2 — 3 1 Total benefits and other deductions 110 96 307 303 Net income (loss), before income taxes (18) 2 (17) 4 Income tax (expense) benefit (2) (1) (3) (2) Net income (loss) $ (20) $ 1 $ (20) $ 2 A reconciliation of the Company’s policyholder dividend obligation follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Beginning balance $ 72 $ 2 $ 160 $ 2 Unrealized investment gains (losses) (47) — (135) — Ending balance $ 25 $ 2 $ 25 $ 2 |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 9 Months Ended |
Sep. 30, 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 and Nine Months Ended September 30, 2021 and 2020 GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Balance, July 1, 2021 $ 5,091 $ — $ (2,262) $ 5,905 $ — $ (4,168) Paid guarantee benefits (103) — 41 (87) — 16 Other changes in reserve (6) — 2 131 — 89 Impact of the Venerable transaction (1) (2) — — — — — — Balance, September 30, 2021 $ 4,982 $ — $ (2,219) $ 5,949 $ — $ (4,063) Balance, July 1, 2020 $ 5,004 $ 70 $ (105) $ 6,122 $ 232 $ (2,931) Paid guarantee benefits (121) (6) 3 (110) (9) 21 Other changes in reserve 233 4 10 113 (3) 92 Balance, September 30, 2020 $ 5,116 $ 68 $ (92) $ 6,125 $ 220 $ (2,818) 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 (350) (12) 64 (271) (49) 41 Other changes in reserve 235 14 (19) 194 (7) 525 Impact of the Venerable transaction (1) (2) — (74) (2,176) — (140) (2,141) Balance, September 30, 2021 $ 4,982 $ — $ (2,219) $ 5,949 $ — $ (4,063) Balance, January 1, 2020 $ 4,780 $ 76 $ (104) $ 4,673 $ 187 $ (2,139) Paid guarantee benefits (372) (16) 11 (287) 39 58 Other changes in reserve 708 8 1 1,739 (6) (737) Balance, September 30, 2020 $ 5,116 $ 68 $ (92) $ 6,125 $ 220 $ (2,818) _____________ (1) Change in Assumed is driven by the sale of CSLRC to Venerable. (2) Includes the impact as of June 1, 2021 on the ceded reserves to Venerable. See Note 1- Organization for details of the Venerable transaction. 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 and amounts due from reinsurers related to GMIB NLG product features (GMIB NLG Reinsurance) 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 8 Fair Value Disclosures. Account Values and Net Amount at Risk Account Values and NAR for direct variable annuity contracts in force with GMDB and GMIB features as of September 30, 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 September 30, 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 $ 16,038 $ 85 $ 52 $ 161 $ 16,336 Separate Accounts 57,196 9,643 3,325 33,862 104,026 Total Account Values $ 73,234 $ 9,728 $ 3,377 $ 34,023 $ 120,362 NAR, gross $ 106 $ 80 $ 1,441 $ 16,473 $ 18,100 NAR, net of amounts reinsured $ 103 $ 72 $ 1,013 $ 8,394 $ 9,582 Average attained age of policyholders (in years) 51.5 68.9 75.4 70.9 55.4 Percentage of policyholders over age 70 11.6 % 50.5 % 72.0 % 56.7 % 20.7 % 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 $ — $ — $ 15 $ 210 $ 225 Separate Accounts — — 25,670 36,152 61,822 Total Account Values $ — $ — $ 25,685 $ 36,362 $ 62,047 NAR, gross $ — $ — $ 693 $ 9,492 $ 10,185 NAR, net of amounts reinsured $ — $ — $ 223 $ 3,896 $ 4,119 Average attained age of policyholders (in years) N/A N/A 64.8 70.7 68.5 Weighted average years remaining until annuitization N/A N/A 5.9 0.6 2.6 Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% 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 September 30, 2021 December 31, 2020 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 50,060 $ 19,264 $ 46,850 $ 18,771 Fixed income 5,453 2,570 5,506 2,701 Balanced 47,475 39,723 47,053 39,439 Other 1,038 265 1,111 275 Total $ 104,026 $ 61,822 $ 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Beginning balance $ 1,070 $ 948 $ 1,022 $ 898 Paid guarantee benefits (24) (6) (52) (32) Other changes in reserves 38 60 114 136 Ending balance $ 1,084 $ 1,002 $ 1,084 $ 1,002 _____________ (1) There were no amounts of reinsurance ceded in any period presented. |
REINSURANCE
REINSURANCE | 9 Months Ended |
Sep. 30, 2021 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | REINSURANCE The Company assumes and cedes reinsurance with other insurance companies. The Company evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Ceded reinsurance does not relieve the originating insurer of liability. On June 1, 2021, Holdings completed the sale of CSLRC to VIAC. Immediately following the closing of the Transaction, CSLRC and Equitable Financial entered into the Reinsurance Agreement, pursuant to which Equitable Financial ceded to CSLRC, on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial between 2006-2008. See Note 1- Organization for details of the Transaction. The following table summarizes the effect of reinsurance. The impact of the transactions described above results in a decrease to reinsurance assumed and an increase in reinsurance ceded. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Direct premiums $ 250 $ 214 $ 733 $ 698 Reinsurance assumed 43 50 144 167 Reinsurance ceded (63) (43) (148) (111) Premiums $ 230 $ 221 $ 729 $ 754 Direct charges and fee income $ 1,051 $ 1,016 $ 3,177 $ 3,098 Reinsurance ceded (184) (102) (422) (311) Policy charges and fee income $ 867 $ 914 $ 2,755 $ 2,787 Direct policyholders’ benefits $ 862 $ 1,115 $ 2,935 $ 4,882 Reinsurance assumed 55 54 173 189 Reinsurance ceded (166) (135) (590) (525) Policyholders’ benefits $ 751 $ 1,034 $ 2,518 $ 4,546 Direct interest credited to policyholders’ account balances $ 307 $ 306 $ 934 $ 942 Reinsurance ceded (2) — (29) (12) Interest credited to policyholders’ account balances $ 305 $ 306 $ 905 $ 930 Ceded Reinsurance and Assumed Reinsurance As of September 30, 2021 and December 31, 2020, the Company had reinsured with non-affiliates in the aggregate approximately 47.1% and 2.6%, respectively, of its current exposure to the GMDB obligation on annuity contracts in-force and, subject to certain maximum amounts or caps in any one period, approximately 59.6% and 13.4% of its current liability exposure, respectively, resulting from the GMIB feature. For additional information, see Note 6. The following table summarizes the ceded reinsurance GMIB reinsurance contracts, third-party recoverables, amount due to reinsurance and assumed reserves impacted by the Venerable transactions. September 30, 2021 December 31, 2020 (in millions) Ceded Reinsurance: Estimated net fair values of ceded GMIB reinsurance contracts, considered derivatives (1) $ 1,937 $ 2,488 Third-party reinsurance recoverables related to insurance contracts 14,801 4,566 Top reinsurers: Venerable Insurance and Annuity Company (BBB+ SAP rating) 10,395 N/A Zurich Life Insurance Company, Ltd. (AA- SAP rating) 1,340 1,421 Protective Life Insurance Company (AA- SAP rating) 1,146 1,184 RGA Reinsurance Company (AA- SAP rating)) 1,146 1,143 Amount due to reinsurers 1,466 1,381 Top reinsurers: RGA Reinsurance Company 1,225 1,135 Venerable Insurance and Annuity Company 129 N/A Protective Life Insurance Company 111 116 Assumed Reinsurance: Reinsurance assumed reserves 166 788 Estimated net fair values of assumed GMIB reserves — 195 ______________ (1) The estimated fair values increased $(89) million, $(113) million, $(551) million and $679 million for the three and nine months ended September 30, 2021 and 2020, respectively. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 9 Months Ended |
Sep. 30, 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. For the periods ended September 30, 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 16 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 September 30, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, AFS: Corporate (1) $ — $ 50,999 $ 1,453 $ 52,452 U.S. Treasury, government and agency — 15,253 — 15,253 States and political subdivisions — 600 37 637 Foreign governments — 1,003 — 1,003 Residential mortgage-backed (2) — 106 — 106 Asset-backed (3) — 5,579 5 5,584 Commercial mortgage-backed — 1,869 10 1,879 Redeemable preferred stock — 54 — 54 Total fixed maturities, AFS — 75,463 1,505 76,968 Fixed maturities, at fair value using the fair value option — 1,152 182 1,334 Other equity investments (7) 433 415 5 853 Trading securities 332 213 39 584 Other invested assets: Short-term investments — 30 — 30 Assets of consolidated VIEs/VOEs 62 218 11 291 Swaps — (595) — (595) Credit default swaps — — — — Futures 2 — — 2 Options — 5,892 — 5,892 Total other invested assets 64 5,545 11 5,620 Cash equivalents 3,168 269 — 3,437 Segregated securities — 909 — 909 Amounts due from reinsurer (6) — — 5,869 5,869 GMIB reinsurance contracts asset — — 1,937 1,937 Separate Accounts assets (4) 138,906 2,562 — 141,468 Total Assets $ 142,903 $ 86,528 $ 9,548 $ 238,979 Liabilities Notes issued by consolidated VIE’s, at fair value using the fair value option (5) $ — $ 1,187 $ — $ 1,187 GMxB derivative features’ liability — — 8,938 8,938 SCS, SIO, MSO and IUL indexed features’ liability — 5,565 — 5,565 Liabilities of consolidated VIEs and VOEs 18 3 — 21 Contingent payment arrangements — — 38 38 Total Liabilities $ 18 $ 6,755 $ 8,976 $ 15,749 ______________ (1) Corporate fixed maturities includes 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) 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 September 30, 2021, the fair value of such investments was $379 million. (5) Includes CLO short-term debt of $1 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 $3 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. (6) This represents GMIB NLG ceded reserves related to the Venerable transaction. See Note 1- Organization for details of the Venerable transaction. (7) Includes short position equity securities of $29 million that are reported in other liabilities. 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 classified 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. Also included are the Amounts due from Reinsurers related to the GMIB NLG product features (GMIB NLG Reinsurance). The fair value reflects the present value of reinsurance premiums, net of recoveries, adjusted for risk margins and nonperformance risk over a range of market consistent economic scenarios. The valuations of the GMIB reinsurance contract asset, GMIB NLG Reinsurance 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, GMIB NLG Reinsurance 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, GMIB NLG Reinsurance 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 and GMIB NLG Reinsurance , 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 $89 million and $102 million as of September 30, 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 $0 million and $19 million as of September 30, 2021 and December 31, 2020, respectively, to recognize its own incremental non-performance risk. After giving consideration to collateral arrangements, the Company reduced the fair value of its Amounts due from Reinsurers by $195 million at September 30, 2021 to recognize incremental counterparty 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 nine months ended September 30, 2021, fixed maturities with fair values of $782 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, fixed maturities with fair value of $1 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 5.9% of total equity as of September 30, 2021. During the nine months ended September 30, 2020, fixed maturities with fair values of $103 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, fixed maturities with fair value of $195 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 1.6% of total equity as of September 30, 2020. The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses) for the three and nine months ended September 30, 2021 and 2020, respectively. Level 3 Instruments - Fair Value Measurements Corporate State and Political Subdivisions Asset-backed CMBS Trading Securities, at Fair Value Fixed maturities, at FVO (2) (in millions) Balance, July 1, 2021 $ 1,261 $ 37 $ 128 $ 10 $ 39 $ 148 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 1 — — — — (7) Investment gains (losses), net (2) — — — — — Subtotal (1) — — — — (7) Other comprehensive income (loss) 4 (1) — — — — Purchases 262 — (121) — — 62 Sales (71) — (2) — — (17) Activity related to consolidated VIEs/VOEs — — — — — — Transfers into Level 3 (1) (2) — — — — (14) Transfers out of Level 3 (1) — — — — — 10 Balance, September 30, 2021 $ 1,453 $ 36 $ 5 $ 10 $ 39 $ 182 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (3) $ — $ — $ — $ — $ — $ 9 Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (3) $ 4 $ (1) $ — $ — $ — $ — Balance, July 1, 2020 $ 1,685 $ 40 $ — $ — $ 37 $ — Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net (1) — — — — — Subtotal (1) — — — — — Other comprehensive income (loss) 18 (1) — — — — Purchases (155) — 13 — 15 — Sales (24) — — — — — Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (1) (29) — — — — — Transfers out of Level 3 (1) — — — — — — Balance, September 30, 2020 $ 1,494 $ 39 $ 13 $ — $ 52 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (3) $ — $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (3) $ 18 $ (1) $ — $ — $ — $ — Level 3 Instruments - Fair Value Measurements Corporate State and Political Subdivisions Asset-backed CMBS Trading Securities, at Fair Value Fixed maturities, at FVO (2) (in millions) Balance, January 1, 2021 $ 1,702 $ 39 $ 20 $ — $ 39 $ 80 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 4 — — — — 4 Investment gains (losses), net (14) — — — — — Subtotal (10) — — — — 4 Other comprehensive income (loss) 30 (2) — — — Purchases 721 — 3 10 — 192 Sales (277) (1) (18) — — (26) Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (1) — — — — — 1 Transfers out of Level 3 (1) (713) — — — — (69) Balance, September 30, 2021 $ 1,453 $ 36 $ 5 $ 10 $ 39 $ 182 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (3) $ — $ — $ — $ — $ — $ 4 Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (3) $ 30 $ (2) $ — $ — $ — $ — Balance, January 1, 2020 $ 1,257 $ 39 $ 100 $ — $ 37 $ — Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 2 — — — — — Investment gains (losses), net (14) — — — — — Subtotal (12) — — — — — Other comprehensive income (loss) (36) 1 — — — — Purchases 207 — 13 — 15 — Sales (114) (1) — — — — Activity related to consolidated VIEs/VOEs — — Transfers into Level 3 (1) 195 — — — — — Transfers out of Level 3 (1) (3) — (100) — — — Balance, September 30, 2020 $ 1,494 $ 39 $ 13 $ — $ 52 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (3) $ — $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (3) $ (36) $ 1 $ — $ — $ — $ — _____________ (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. (3) For instruments held as of September 30, 2021 or September 30, 2020, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. Other Equity Investments (9) GMIB Reinsurance Contract Asset Amounts Due from Reinsurers Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement Balance, July 1, 2021 $ 103 $ 2,026 $ 5,510 $ 1 $ (8,455) $ (38) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income 1 — — — — — Net derivative gains (losses) (1) — (84) 344 — (395) — Total realized and unrealized gains (losses) 1 (84) 344 — (395) — Other comprehensive income (loss) — — — — — — Purchases (2) 1 11 31 (1) (108) 1 Sales (3) (91) (16) (16) — 20 — Settlements (4) — — — — — — Activity related to consolidated VIEs/VOEs 1 — — — — (1) Transfers into Level 3 (5) — — — — — — Transfers out of Level 3 (5) — — — — — — Balance, September 30, 2021 $ 15 $ 1,937 $ 5,869 $ — $ (8,938) $ (38) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8) $ 1 $ (84) $ 344 $ — $ (395) $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8) $ — $ — $ — $ — $ — $ — Balance, July 1, 2020 $ 95 $ 2,931 $ — $ — $ (12,689) $ (28) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income 3 — — — — — Net derivative gains (losses) — (103) — — 579 — Total realized and unrealized gains (losses) 3 (103) — — 579 — Other comprehensive income (loss) — — — — — — Purchases (2) 5 11 — — (115) — Sales (3) (15) (21) — — 21 — Settlements (4) — — — — — — Activity related to consolidated VIEs/VOEs (2) — — — — — Transfers into Level 3 (5) — — — — — (1) Transfers out of Level 3 (5) — — — — — — Balance, September 30, 2020 $ 86 $ 2,818 $ — $ — $ (12,204) $ (29) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8) $ 1 $ (103) $ — $ — $ 579 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8) $ — $ — $ — $ — $ — $ — Other Equity Investments (9) GMIB Reinsurance Amounts Due from Reinsurers Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement Balance, January 1, 2021 $ 84 $ 2,488 $ — $ 1 $ (11,131) $ (28) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income 20 — — — — — Net derivative gains (losses) (1) (6) — (542) 586 — 2,340 — Total realized and unrealized gains (losses) 20 (542) 586 — 2,340 — Other comprehensive income (loss) — — — — — — Purchases (2) 4 32 41 — (348) (7) Sales (3) (92) (41) (17) — 61 — Settlements (4) — — — — — — Other (7) — — 5,259 — — — Activity related to consolidated VIEs/VOEs (1) — — — — (3) Transfers into Level 3 (5) — — — — — Transfers out of Level 3 (5) — — — (1) 140 — Balance, September 30, 2021 $ 15 $ 1,937 $ 5,869 $ — $ (8,938) $ (38) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8) $ 2 $ (542) $ 586 $ — $ 2,340 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8) $ — $ — $ — $ — $ — $ — Balance, January 1, 2020 $ 113 $ 2,139 $ — $ — $ (8,502) $ (23) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 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 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Service cost $ 2 $ 3 $ 7 $ 7 Interest cost 13 23 40 68 Expected return on assets (40) (36) (116) (110) Prior Period Svc Cost Amortization 1 — — — Actuarial (gain) loss — — 1 1 Net amortization 23 27 81 82 Impact of settlement 2 $ 4 2 4 Net Periodic Pension Expense $ 1 $ 21 $ 15 $ 52 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense for the three and nine months ended September 30, 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 | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
EQUITY | EQUITY Preferred Stock Preferred stock authorized, issued and outstanding was as follows: September 30, 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 September 30, Nine months ended September 30, 2021 2020 2021 2020 Series A dividends declared $ 328.13 $ 328.13 $ 984.38 $ 1,049.99 Series B dividends declared $ — $ — $ 618.75 $ — Series C dividends declared $ 268.75 $ — $ 737.57 $ — Common Stock Dividends declared per share of common stock were as follows for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Dividends declared $ 0.18 $ 0.17 $ 0.53 $ 0.49 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 September 30, 2021, Holdings had authorized capacity of approximately $462 million remaining in its share repurchase program, which is inclusive of the $500 million related to the Venerable Transaction. Holdings repurchased a total of 15.6 million and 38.2 million shares of its common stock at an average price of $29.50 and $30.56 per share, respectively through open market repurchases, ASRs and privately negotiated transactions during the three and nine months ended September 30, 2021. During the three and nine months ended September 30, 2021, Holdings repurchased 0 million and 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 contract 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 terminated during May 2021, at which time additional shares of 1.1 million were received. On June 30, 2021, Holdings established an obligation to enter into an ASR with a third-party financial institution to repurchase an aggregate of $300 million of Holdings’ common stock. Pursuant to the ASR, on July 2, 2021, Holdings made a prepayment of $300 million to receive initial delivery of shares. The ASR terminated during the third quarter of 2021 and a total of 9.9 million shares were received. Shares repurchased under the ASR were retired upon receipt resulting in a reduction of Holdings’ total issued shares as of September 30, 2021. In September 2021, Holdings entered into an ASR contract 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 5.6 million shares. The ASR is scheduled to terminate on November 5, 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 September 30, 2021 and December 31, 2020 follow: September 30, December 31, 2021 2020 (in millions) Unrealized gains (losses) on investments $ 2,741 $ 4,797 Defined benefit pension plans (858) (935) Foreign currency translation adjustments (47) (34) Total accumulated other comprehensive income (loss) 1,836 3,828 Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest (40) (35) Accumulated other comprehensive income (loss) attributable to Holdings $ 1,876 $ 3,863 The components of OCI, net of taxes for the three and nine months ended September 30, 2021 and 2020 follow: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ (310) $ 309 $ (2,547) $ 4,675 (Gains) losses reclassified into net income (loss) during the period (1) (131) (26) (617) (225) Net unrealized gains (losses) on investments (441) 283 (3,164) 4,450 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 318 (54) 1,108 (1,177) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(32), $61, $(546) and $870 ) (123) 229 (2,056) 3,273 Change in defined benefit plans: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost 22 21 77 71 Change in defined benefit plans (net of deferred income tax expense (benefit) of $6, $6, $20 and $19) 22 21 77 71 Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period (9) 16 (13) 1 Foreign currency translation adjustment (9) 16 (13) 1 Total other comprehensive income (loss), net of income taxes (110) 266 (1,992) 3,345 Less: Other comprehensive income (loss) attributable to noncontrolling interest (3) 6 (5) 1 Other comprehensive income (loss) attributable to Holdings $ (107) $ 260 $ (1,987) $ 3,344 _______________ (1) See “Reclassification adjustments” in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $35 million, $(7) million, $164 million, and $(60) million for the three and nine months ended September 30, 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. Permitted Statutory Accounting Practices |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Balance, beginning of period $ 42 $ 87 $ 143 $ 365 Net earnings (loss) attributable to redeemable noncontrolling interests — 1 4 (4) Purchase/change of redeemable noncontrolling interests 101 7 (4) (266) Balance, end of period $ 143 $ 95 $ 143 $ 95 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Litigation and Regulatory Matters 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. 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 September 30, 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 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 2015, the case was transferred to the Southern District of New York and, in 2018, transferred back to Connecticut Superior Court. In August 2019, the court granted Equitable Financial’s motion to strike, which sought dismissal of the complaint, and in September 2019, Plaintiff filed an Amended Class Action Complaint. Equitable Financial filed renewed motions to strike and to dismiss and for an entry of judgment in October 2019. In August 2020, the court granted Equitable Financial’s motion for entry of judgment. Plaintiff filed a notice of appeal. We are vigorously defending this matter. In February 2016, a lawsuit was filed in 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 2008, 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 consolidated amended class action complaint alleges the following claims: breach of contract; misrepresentations 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 certifying 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. 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. For example, among other matters, the Company has been cooperating with the U.S. Securities and Exchange Commission (the “SEC”) concerning the SEC’s investigation into the Company’s non-ERISA K-12 403(b) and 457 sales and disclosure practices. 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 $318 million and pledged collateral with a carrying value of $10.4 billion as of September 30, 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 Nine Months Ended September 30, 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 September 30, 2021 (in millions) Short-term funding agreements: Due in one year or less $ 5,634 $ 46,301 $ 46,389 $ 322 $ — $ 5,868 Long-term funding agreements: Due in years two through five 722 — — (322) 409 809 Due in more than five years 534 — — — (409) 125 Total long-term funding agreements 1,256 — — (322) — 934 Total funding agreements (1) $ 6,890 $ 46,301 $ 46,389 $ — $ — $ 6,802 _____________ (1) The $5 million and $7 million difference between the funding agreements carrying value shown in fair value table for September 30, 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 program, Equitable Financial may issue funding agreements in U.S. dollar or other foreign currencies 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, maturity and currency payment terms to the applicable Trust notes. The Company hedges the foreign currency exposure of foreign currency denominated funding agreements using cross currency swaps as discussed in Note 4. As of May 2021, the maximum aggregate principal amount of Trust notes permitted to be outstanding at any one time is $10 billion. Funding agreements issued to the Trust, including any foreign currency transaction adjustments, are reported in policyholders’ account balances in the consolidated balance sheets. Foreign currency transaction adjustments to policyholder’s account balances are recognized in net income (loss) as an adjustment to interest credited to policyholders’ account balances and are offset in interest credited to policyholders’ account balances by a release of AOCI from deferred changes in fair value of designated and qualifying cross currency swap cash flow hedges. The table below summarizes the Equitable Financial’s activity of funding agreements under the FABN. Change in FABN Funding Agreements during the Nine Months Ended September 30, 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 Foreign Currency Transaction Adjustment Outstanding Balance at September 30, (in millions) Short-term funding agreements: Due in one year or less $ — $ — $ — $ — $ — $ — $ — Long-term funding agreements: Due in years two through five 1,150 2,450 — — — — 3,600 Due in more than five years 800 1,359 — — — (30) 2,129 Total long-term funding agreements 1,950 3,809 — — — (30) 5,729 Total funding agreements (1) $ 1,950 $ 3,809 $ — $ — $ — $ (30) $ 5,729 _____________ (1) The $27 million and $11 million difference between the funding agreements notional value shown and carrying value table as of September 30, 2021 and December 31, 2020, respectively, reflects the remaining amortization of the issuance cost of the funding agreements and the foreign currency transaction adjustment. 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. In June 2021, Holdings entered into an amended and restated revolving credit agreement, which lowered the facility amount to $1.5 billion and extended the maturity date to June 24, 2026, among other changes. 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. As of September 30, 2021, the Company had $145 million of undrawn letters of credit issued out of the $1.5 billion sub-limit for Equitable Financial as beneficiary. 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. In June 2021, Holdings entered into amendments with each of the issuers of its bilateral letter of credit facilities to effect changes similar to those effected in the amended and restated revolving credit agreement. The respective facility limits of the bilateral letter of credit facilities remained unchanged. These facilities support the life insurance business reinsured by EQ AZ Life Re. The HSBC facility matures on February 16, 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 September 30, 2021, these arrangements include commitments by the Company to provide equity financing of $1.4 billion (including $221 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 September 30, 2021. The Company had $714 million of commitments under existing mortgage loan agreements as of September 30, 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 |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 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, including 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 and nine months ended September 30, 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 and nine months ended September 30, 2021 and 2020, respectively: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Net income (loss) attributable to Holdings $ 672 $ (779) $ (693) $ 590 Adjustments related to: Variable annuity product features (1) 172 1,620 3,632 473 Investment (gains) losses (164) (17) (767) (190) Net actuarial (gains) losses related to pension and other postretirement benefit obligations 27 31 87 86 Other adjustments (2) (3) (4) (5) 141 66 672 836 Income tax expense (benefit) related to above adjustments (6) (35) (357) (761) (253) Non-recurring tax items 5 4 6 12 Non-GAAP operating earnings $ 818 $ 568 $ 2,176 $ 1,554 Operating earnings (loss) by segment: Individual Retirement $ 316 $ 371 $ 1,093 $ 1,094 Group Retirement $ 192 $ 129 $ 514 $ 325 Investment Management and Research $ 134 $ 104 $ 381 $ 291 Protection Solutions $ 160 $ 51 $ 264 $ 88 Corporate and Other (7) $ 16 $ (87) $ (76) $ (244) ______________ (1) Includes COVID-19 impact on variable annuity product features due to a first quarter 2020 assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the nine months ended September 30, 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 $86 million for the nine months ended September 30, 2020 . (3) Include separation costs of $25 million, $37 million, $62 million and $108 million for the three and nine months ended September 30, 2021 and 2020, respectively. (4) Includes certain legal accruals related to the COI litigation of $180 million for the nine months ended September 30, 2021 . No adjustments were made to prior period operating earnings as the impact was immaterial. (5) Includes Non-GMxB related derivative hedge gains and losses of $(4) million, $10 million, $140 million, and $(461) million for the three and nine months ended September 30, 2021 and 2020, respectively. (6) Includes income taxes of $554 million for the above COVID-19 items for the nine months ended September 30, 2020 . (7) Includes interest expense and financing fees of $65 million, $56 million, $180 million and $164 million for the three and nine months ended September 30, 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 and nine months ended September 30, 2021 and 2020. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Segment revenues: Individual Retirement (1) $ 998 $ 1,079 $ 2,957 $ 3,352 Group Retirement (1) 343 301 1,018 829 Investment Management and Research (2) 1,093 899 3,169 2,650 Protection Solutions (1) 838 751 2,496 2,344 Corporate and Other (1) 479 300 1,199 881 Adjustments related to: Variable annuity product features (256) (1,512) (3,750) 1,160 Investment gains (losses), net 164 17 767 190 Other adjustments to segment revenues (3) (44) 5 (138) 493 Total revenues $ 3,615 $ 1,840 $ 7,718 $ 11,899 ______________ (1) Includes investment expenses charged by AB of $20 million, $17 million, $59 million and $51 million for the three and nine months ended September 30, 2021 and 2020, respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of $32 million, $28 million, $94 million and $82 million for the three and nine months ended September 30, 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 and other COVID-19 related impacts of $(30) million for the nine months ended September 30, 2020 . The table below presents total assets by segment as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (in millions) Total assets by segment: Individual Retirement (1) $ 140,664 $ 135,764 Group Retirement 52,919 51,466 Investment Management and Research 10,772 11,179 Protection Solutions 48,745 48,568 Corporate and Other 31,479 28,420 Total assets $ 284,579 $ 275,397 ______________ (1) Increase in Individual Retirement as of September 30, 2021 is primarily due to Amounts due from Reinsurers related to ceded reserves on the Venerable transaction (see Note 1 Organization). |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Weighted-average common shares outstanding: Weighted-average common shares outstanding — basic 411.3 447.5 423.2 453.0 Effect of dilutive potential common shares: Employee share awards (1) 3.3 — — 1.1 Weighted-average common shares outstanding — diluted (2) 414.6 447.5 423.2 454.1 Net income (loss): Net income (loss) $ 765 $ (705) $ (412) $ 787 Less: Net income (loss) attributable to the noncontrolling interest 93 74 281 197 Net income (loss) attributable to Holdings 672 (779) (693) 590 Less: Preferred stock dividends 14 11 53 34 Net income (loss) available to Holdings’ common shareholders $ 658 $ (790) $ (746) $ 556 Earnings per common share: Basic $ 1.60 $ (1.77) $ (1.76) $ 1.23 Diluted $ 1.59 $ (1.77) $ (1.76) $ 1.22 _____________ (1) Calculated using the treasury stock method. (2) Due to net loss for the nine months ended September 30, 2021 and three months ended September 30, 2020 approximately 3.7 million and 1.5 million share awards, respectively, were excluded from the diluted EPS calculation. For the three and nine months ended September 30, 2021 and 2020, 4.5 million, 8.3 million, 8.2 million and 8.4 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 | 9 Months Ended |
Sep. 30, 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. See note 1 of the financial statements for further information. As a resu lt 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 (los s). The transaction closed on June 1, 2021 with a gain on sale, net of income tax, of less than $1 million. Accordingly, the Company recovered the impairment previously recorded, thus reflecting a gain of $15 million for the nine months ended September 30, 2021. As of December 31, 2020, assets of CS Life and CS Life Re to be sold, net of the estimated impairment loss accrual, was $470 million which is reported in assets HFS and total liabilities of $322 million was 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 December 31, 2020: December 31, 2020 (in millions) Assets: Fixed maturity securities $ 235 Trading securities, at fair value 189 Other invested assets 1 Cash and cash equivalents 39 Other assets 25 Assets held-for-sale 489 Less: Loss accrual (19) Total assets held-for-sale $ 470 Liabilities: Future policy benefits and other policyholder's liabilities: $ 320 Broker-dealer related payables — Other liabilities 2 Total liabilities held-for-sale $ 322 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Coinsurance Funds Withheld Reinsurance Agreement Effective October 1, 2021, the Company and Swiss Re Life & Health America Inc (“Swiss Re” ), entered into a coinsurance with funds withheld reinsurance agreement under which the Company retains the assets related to the underlying policies, term life insurance policies issued between 2009 and 2020. While the associated interest and credit risk of these assets has been transferred to Swiss Re, reinsurance agreements that do not indemnify the Company against loss or liability relating to insurance risk are recorded using the deposit method of accounting. There were no cash or assets exchanged upon entering into this agreement, so no deposit liability has yet been recorded. The coinsurance with funds withheld reinsurance agreement contains embedded derivatives related to the withheld assets, which were immaterial as of the effective date of the agreement. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 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 “third quarter 2021” and “third quarter 2020” refer to the three months ended September 30, 2021 and 2020, respectively. The terms “first nine months of 2021” and “first nine months of 2020” refer to the nine months ended September 30, 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. Future Adoption of New Accounting Pronouncements 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. 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. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters 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. 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 September 30, 2021 and December 31, 2020, the carrying value of COLI was $1,008 million and $992 million, respectively, and is reported in Other invested assets in the consolidated balance sheets. |
Derivatives | Derivatives Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include equity, currency, and interest rate futures, total return and/or other equity swaps, interest rate swaps and floors, swaptions, variance swaps and equity options, all of which may be exchange-traded or contracted in the OTC market. All derivative positions are carried in the consolidated balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models. Freestanding derivative contracts are reported in the consolidated balance sheets either as assets within “other invested assets” or as liabilities within “other liabilities”. 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. All changes in the fair value of the Company’s freestanding derivative positions not designated to hedge accounting relationships, including net receipts and payments, are included in “net derivative gains (losses)” without considering changes in the fair value of the economically associated assets or liabilities. The Company has designated certain derivatives it uses to economically manage asset/liability risk in relationships which qualify for hedge accounting. To qualify for hedge accounting, we formally document our designation at inception of the hedge relationship as a cash flow, fair value or net investment hedge. This documentation includes our risk management objective and strategy for undertaking the hedging transaction. The Company identifies how the hedging instrument is expected to offset the designated risks related to the hedged item and the method that will be used to retrospectively and prospectively assess the hedge effectiveness. To qualify for hedge accounting, a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed and documented at inception and periodically throughout the life of the hedge accounting relationship. The Company does not exclude any components of the hedging instrument from the effectiveness assessments and therefor does not separately measure or account for any excluded components of the hedging instrument. While in cash flow hedge relationships, any periodic net receipts and payments from the hedging instrument are included in the income or expense line that the hedged item’s periodic income or expense is recognized. Other changes in the fair value of the hedging instrument while in a cash flow hedging relationship are reported within OCI. These amounts are deferred in AOCI until they are reclassified to Net income (loss). The reclassified amount offsets the effect of the cash flows on Net income (loss) in the same period when the hedged item affects earnings and on the same line as the hedged item. We discontinue cash flow hedge accounting prospectively when the Company determines: (1) the hedging instrument is no longer highly effective in offsetting changes in the cash flow from the hedged risk, (2) the hedged item is no longer probable of occurring within two months of their forecast, or (3) the hedging instrument is otherwise redesignated from the hedging relationship. Changes in the fair value of the derivative after discontinuation of cash flow hedge accounting are accounted for as freestanding derivative positions not designated to hedge accounting relationships unless and until the derivative is redesignated to a hedge accounting relationship. When cash flow hedge accounting is discontinued the amounts deferred in AOCI during the hedge relationship continue to be deferred in AOCI, as long as the hedged items continue to be probable of occurring within two months of their forecast, until the hedged item affects Net income (loss). Any amount deferred in AOCI for hedged items which are no longer probable of occurring within two months of their forecast will be reclassified to “net derivative gains (losses)” at that time. The Company is a party to financial instruments and other contracts that contain “embedded” derivative instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are “clearly and closely related” to the economic characteristics of the remaining component of the “host contract” and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. Once those criteria are met the resulting embedded derivative is bifurcated from the host contract, carried in the consolidated balance sheets at fair value, and changes in its fair value are recognized immediately and captioned in the consolidated statements of income (loss) according to the nature of the related host contract. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company instead may elect to carry the entire instrument at fair value. |
Reinsurance | Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment and recognized as a component of other expenses on a basis consistent with the expected life of the underlying reinsured contracts. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as premiums ceded (assumed); and amounts due from reinsurers (amounts due to reinsurers) are established. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. Reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. Premiums, policy charges and fee income, and policyholders’ benefits include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives as they are net settled. These embedded derivatives are included in GMIB reinsurance contract asset, at fair value with changes in estimated fair value reported in net derivative gains (losses). Separate Account liabilities that have been ceded on a Modified coinsurance (Modco) basis, receivable and payable have been recognized on a net basis as right of set off exists. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within other assets. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other income or other operating costs and expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. For reinsurance contracts other than those accounted for as derivatives, reinsurance recoverable balances are calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities. |
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 CLOs. As of September 30, 2021 and December 31, 2020, respectively, Equitable Financial holds $116 million and $38 million of equity interests in the CLOs. The Company consolidated the CLOs as of September 30, 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 CLOs loan manager. The assets of the CLOs are legally isolated from the Company’s creditors and can only be used to settle obligations of the CLOs. The liabilities of the CLOs are non-recourse to the Company and the Company has no obligation to satisfy the liabilities of the CLOs. As of September 30, 2021, Equitable Financial holds $5 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 consolidated the SPE as of September 30, 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 $1,334 million and $389 million notes issued by consolidated variable interest entities, at fair value using the fair value option with total liabilities of $1,190 million and $313 million at September 30, 2021 and December 31, 2020, respectively . The unpaid outstanding principal balance of the notes and short-term borrowing is $1.2 billion and $362 million at September 30, 2021 and December 31, 2020. Consolidated Limited Partnerships and LLCs As of September 30, 2021 and December 31, 2020 the Company consolidated limited partnerships and LLCs for which it was identified as the primary beneficiary under the VIE model. Included in Other invested assets, Mortgage loans on real estate and Other equity investments in the Company’s consolidated balance sheets at September 30, 2021 and December 31, 2020 are total assets of $182 million and $12 million, respectively related to these VIEs. Consolidated AB-Sponsored Investment Funds Included in the Company’s consolidated balance sheet as of September 30, 2021 and December 31, 2020 are assets of $322 million and $284 million, liabilities of $33 million and $8 million, and redeemable noncontrolling interests of $118 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 September 30, 2021 and December 31, 2020 are assets of $0 million and $68 million, liabilities of $0 million and $23 million, and redeemable noncontrolling interests of $0 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 September 30, 2021 and December 31, 2020 respectively, the Company held approximately $2.1 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 $240.7 billion and $165.9 billion as of September 30, 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 $2.1 billion and $1.4 billion and approximately $1.3 billion and $1.2 billion of unfunded commitments as of September 30, 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 September 30, 2021 and December 31, 2020, the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $70.4 billion and $73.4 billion, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $8 million and $7 million as of September 30, 2021 and December 31, 2020. The Company has no further commitments to or economic interest in these VIEs. |
Assumption Updates and Model Changes | 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%. |
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) | 9 Months Ended |
Sep. 30, 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. Future Adoption of New Accounting Pronouncements 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. 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. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters 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. 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) | 9 Months Ended |
Sep. 30, 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) September 30, 2021 Fixed Maturities: Corporate (1) $ 49,613 $ 27 $ 3,049 $ 183 $ 52,452 U.S. Treasury, government and agency 13,487 — 1,790 24 15,253 States and political subdivisions 558 — 82 3 637 Foreign governments 977 — 43 17 1,003 Residential mortgage-backed (2) 97 — 9 — 106 Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Asset-backed (3) 5,559 — 29 4 5,584 Commercial mortgage-backed 1,863 — 28 12 1,879 Redeemable preferred stock (5) 41 — 13 — 54 Total at September 30, 2021 $ 72,195 $ 27 $ 5,043 $ 243 $ 76,968 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 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 September 30, 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) September 30, 2021 Contractual maturities: Due in one year or less $ 1,879 $ 1,891 Due in years two through five 17,877 18,716 Due in years six through ten 17,641 18,805 Due after ten years 27,211 29,933 Subtotal 64,608 69,345 Residential mortgage-backed 97 106 Asset-backed 5,559 5,584 Commercial mortgage-backed 1,863 1,879 Redeemable preferred stock 41 54 Total at September 30, 2021 $ 72,168 $ 76,968 |
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 and nine months ended September 30, 2021 and 2020: Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Proceeds from sales $ 3,701 $ 1,433 $ 20,776 $ 6,200 Gross gains on sales $ 171 $ 26 $ 1,019 $ 303 Gross losses on sales $ (8) $ (5) $ (162) $ (39) Credit losses $ (2) $ — $ (14) $ (13) |
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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Balance, beginning of period $ 42 $ 32 $ 32 $ 21 Previously recognized impairments on securities that matured, paid, prepaid or sold (1) — (4) (2) 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 — (3) 8 7 Additional credit losses this period on securities previously impaired 1 3 6 6 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 September 30, $ 42 $ 32 $ 42 $ 32 ______________ (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, July 1, 2021 $ 5,361 $ (1,165) $ (414) $ (794) $ 2,988 Net investment gains (losses) arising during the period (395) — — — (395) Reclassification adjustment: Included in Net income (loss) (165) — — — (165) Excluded from Net income (loss) — — — — — Other (1) — — — — — Impact of net unrealized investment gains (losses) — 377 33 31 441 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) excluding credit losses 4,801 (788) (381) (763) 2,869 Net unrealized investment gains (losses) with credit losses (1) — — — (1) Balance, September 30, 2021 $ 4,800 $ (788) $ (381) $ (763) $ 2,868 Balance, July 1, 2020 $ 8,728 $ (1,521) $ (1,034) $ (1,297) $ 4,876 Net investment gains (losses) arising during the period 362 — — — 362 Reclassification adjustment: Included in Net income (loss) (21) — — — (21) Excluded from Net income (loss) — — — — — Impact of net unrealized investment gains (losses) — 23 (13) (74) (64) Net unrealized investment gains (losses) excluding credit losses 9,069 (1,498) (1,047) (1,371) 5,153 Net unrealized investment gains (losses) with credit losses 3 (1) — — 2 Balance, September 30, 2020 $ 9,072 $ (1,499) $ (1,047) $ (1,371) $ 5,155 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 (3,231) — — — (3,231) Reclassification adjustment: Included in net income (loss) (747) — — — (747) Excluded from net income (loss) — — — — — Other (1) (33) — — — (33) Impact of net unrealized investment gains (losses) — 761 685 539 1,985 Net unrealized investment gains (losses) excluding credit losses 4,800 (787) (380) (763) 2,870 Net unrealized investment gains (losses) with credit losses — (1) (1) — (2) Balance, September 30, 2021 $ 4,800 $ (788) $ (381) $ (763) $ 2,868 Balance, January 1, 2020 $ 3,453 $ (894) $ (189) $ (497) $ 1,873 Net investment gains (losses) arising during the period 5,898 — — — 5,898 Reclassification adjustment: Included in net income (loss) (273) — — — (273) Excluded from net income (loss) — — — — — Impact of net unrealized investment gains (losses) — (606) (859) (875) (2,340) Net unrealized investment gains (losses) excluding credit losses 9,078 (1,500) (1,048) (1,372) 5,158 Net unrealized investment gains (losses) with credit losses (6) 1 1 1 (3) Balance, September 30, 2020 $ 9,072 $ (1,499) $ (1,047) $ (1,371) $ 5,155 ______________ (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 1,423 issues as of September 30, 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) September 30, 2021 Fixed Maturities: Corporate $ 8,383 $ 155 $ 516 $ 27 $ 8,899 $ 182 U.S. Treasury, government and agency 1,465 24 — — 1,465 24 States and political subdivisions 104 2 7 1 111 3 Foreign governments 380 11 42 6 422 17 Asset-backed 818 3 20 — 838 3 Commercial mortgage-backed 891 12 2 — 893 12 Total at September 30, 2021 $ 12,041 $ 207 $ 587 $ 34 $ 12,628 $ 241 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. |
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 and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 59 $ 62 $ 77 $ 33 Current-period provision for expected credit losses 1 4 (17) 33 Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — — — Net change in allowance 1 4 (17) 33 Balance, end of period $ 60 $ 66 $ 60 $ 66 Agricultural mortgages: Balance, beginning of period $ 4 $ 4 $ 4 $ 3 Current-period provision for expected credit losses — — — 1 Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — — — Net change in allowance — — — 1 Balance, end of period $ 4 $ 4 $ 4 $ 4 Total allowance for credit losses $ 64 $ 70 $ 64 $ 70 |
Financing Receivable Credit Quality Indicators | The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of September 30, 2021 and December 31, 2020. LTV Ratios (1) September 30, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ 1 $ — $ 184 $ 324 $ 927 $ 1,436 50% - 70% 1,286 1,265 390 619 492 2,853 6,905 70% - 90% 97 320 413 451 275 748 2,304 90% plus — — — 12 5 207 224 Total commercial $ 1,383 $ 1,586 $ 803 $ 1,266 $ 1,096 $ 4,735 $ 10,869 Agricultural: 0% - 50% $ 113 $ 215 $ 130 $ 131 $ 133 $ 774 $ 1,496 50% - 70% 174 270 105 134 88 359 1,130 70% - 90% — — — — — 17 17 90% plus — — — — — — — Total agricultural $ 287 $ 485 $ 235 $ 265 $ 221 $ 1,150 $ 2,643 Total mortgage loans: 0% - 50% $ 113 $ 216 $ 130 $ 315 $ 457 $ 1,701 $ 2,932 50% - 70% 1,460 1,535 495 753 580 3,212 8,035 70% - 90% 97 320 413 451 275 765 2,321 90% plus — — — 12 5 207 224 Total mortgage loans $ 1,670 $ 2,071 $ 1,038 $ 1,531 $ 1,317 $ 5,885 $ 13,512 Debt Service Coverage Ratios (2 ) September 30, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 705 $ 1,276 $ 328 $ 772 $ 408 $ 2,211 $ 5,700 1.8x to 2.0x 132 136 233 93 269 385 1,248 1.5x to 1.8x 183 115 167 223 166 825 1,679 1.2x to 1.5x 64 59 75 54 253 838 1,343 1.0x to 1.2x 299 — — 88 — 255 642 Less than 1.0x — — — 36 — 221 257 Total commercial $ 1,383 $ 1,586 $ 803 $ 1,266 $ 1,096 $ 4,735 $ 10,869 Agricultural: Greater than 2.0x $ 37 $ 66 $ 25 $ 16 $ 33 $ 217 $ 394 1.8x to 2.0x 38 37 26 21 14 74 210 1.5x to 1.8x 50 114 29 28 44 198 463 1.2x to 1.5x 122 180 114 117 73 375 981 1.0x to 1.2x 40 84 32 78 56 247 537 Less than 1.0x — 4 9 5 1 39 58 Total agricultural $ 287 $ 485 $ 235 $ 265 $ 221 $ 1,150 $ 2,643 Total mortgage loans: Greater than 2.0x $ 742 $ 1,342 $ 353 $ 788 $ 441 $ 2,428 $ 6,094 1.8x to 2.0x 170 173 259 114 283 459 1,458 1.5x to 1.8x 233 229 196 251 210 1,023 2,142 1.2x to 1.5x 186 239 189 171 326 1,213 2,324 1.0x to 1.2x 339 84 32 166 56 502 1,179 Less than 1.0x — 4 9 41 1 260 315 Total mortgage loans $ 1,670 $ 2,071 $ 1,038 $ 1,531 $ 1,317 $ 5,885 $ 13,512 ______________ (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 September 30, 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) September 30, 2021: Mortgage loans: Commercial: 0% - 50% $ 877 $ — $ 390 $ 31 $ 40 $ 98 $ 1,436 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) 50% - 70% 4,026 680 993 755 421 30 6,905 70% - 90% 797 568 210 492 181 56 2,304 90% plus — — 86 65 — 73 224 Total commercial $ 5,700 $ 1,248 $ 1,679 $ 1,343 $ 642 $ 257 $ 10,869 Agricultural: 0% - 50% $ 289 $ 98 $ 283 $ 501 $ 296 $ 29 $ 1,496 50% - 70% 105 110 180 480 241 14 1,130 70% - 90% — 2 — — — 15 17 90% plus — — — — — — — Total agricultural $ 394 $ 210 $ 463 $ 981 $ 537 $ 58 $ 2,643 Total mortgage loans: 0% - 50% $ 1,166 $ 98 $ 673 $ 532 $ 336 $ 127 $ 2,932 50% - 70% 4,131 790 1,173 1,235 662 44 8,035 70% - 90% 797 570 210 492 181 71 2,321 90% plus — — 86 65 — 73 224 Total mortgage loans $ 6,094 $ 1,458 $ 2,142 $ 2,324 $ 1,179 $ 315 $ 13,512 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 September 30, 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) September 30, 2021: Mortgage loans: Commercial $ — $ — $ — $ — $ 10,869 $ 10,869 $ — $ 10,869 $ — $ — Agricultural 8 3 66 77 2,566 2,643 — 2,643 — — Total $ 8 $ 3 $ 66 $ 77 $ 13,435 $ 13,512 $ — $ 13,512 $ — $ — 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) | The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three and nine months ended September 30, 2021. Unrealized and Realized Gains (Losses) from Equity Securities (1) Three Months Ended September 30, Nine Months Ended September 30, 2021 2021 (in millions) (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (48) $ (8) Net investment gains (losses) recognized on equity securities sold during the period 43 47 Unrealized and realized gains (losses) on equity securities $ (5) $ 39 ______________ (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 and nine months ended September 30, 2021 and 2020. Net Investment Income (Loss) from Trading Securities Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (57) $ (13) $ (303) $ 88 Net investment gains (losses) recognized on securities sold during the period 42 16 255 45 Unrealized and realized gains (losses) on trading securities (15) 3 (48) 133 Interest and dividend income from trading securities 4 60 85 159 Net investment income (loss) from trading securities $ (11) $ 63 $ 37 $ 292 The table below shows a breakdown of net investment income (loss) from fixed maturities, at fair value using the fair value option during the three and nine months ended September 30, 2021. Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option Three Months Ended September 30, Nine Months Ended September 30, 2021 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 9 $ 7 Net investment gains (losses) recognized on securities sold during the period 1 3 Unrealized and realized gains (losses) from fixed maturities 10 10 Interest and dividend income from fixed maturities 12 22 Net investment income (loss) from fixed maturities $ 22 $ 32 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments by Category | The following table presents the gross notional amount and estimated fair value of the Company’s derivatives: Derivative Instruments by Category September 30, 2021 December 31, 2020 Fair Value Fair Value Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities (in millions) Derivatives: Designated for Hedge accounting (1) Cash Flow Hedges: Currency Swaps $ 807 $ 8 $ 33 $ — $ — $ — Interest Swaps 958 — 335 957 — 219 Total: Designated for Hedge accounting 1,765 8 368 957 — 219 Derivatives: Not designated for Hedge accounting (1) Equity contracts: Futures (5) 3,518 2 — 4,881 — 2 Swaps (5) 12,907 5 — 22,456 6 2 Options 55,487 10,401 4,509 35,848 8,396 3,726 Interest rate contracts: Futures (5) 11,079 — — 18,571 — — Swaps (5) 2,875 — 243 22,877 553 437 Swaptions — — — — — — Credit contracts: Credit default swaps 902 10 10 1,087 19 14 Currency Currency Swaps 516 3 — 411 9 9 Currency forwards 74 8 7 — — — Other freestanding contracts: Margin — 111 — — 49 66 Collateral — 157 6,097 — 212 3,839 Total: Not designated for Hedge accounting 87,358 10,697 10,866 106,131 9,244 8,095 Embedded derivatives: Amounts due from reinsurers (6) — 5,869 — — — — GMIB reinsurance contracts (2) — 1,937 — — 2,488 — GMxB derivative features liability (3) — — 8,938 — — 11,131 SCS, SIO, MSO and IUL indexed features (4) — — 5,565 — — 4,509 Total Embedded — 7,806 14,503 — 2,488 15,640 Total derivative instruments $ 89,123 $ 18,511 $ 25,737 $ 107,088 $ 11,732 $ 23,954 ___________ (1) Reported in other invested assets in the consolidated balance sheets. (2) Reported in GMIB reinsurance contract asset in the consolidated balance sheets. (3) Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) Reported in policyholders’ account balances in the consolidated balance sheets. (5) Decrease in futures and swaps notional as of September 30, 2021 is primarily due to Venerable transaction (see Note 1 Organization). (6) Represents GMIB NLG ceded related to the Venerable transaction. The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss). Derivative Instruments by Category Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 (in millions) Net Derivatives Gain(Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI Net Derivatives Gain(Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI Derivatives: Designated for Hedge accounting Cash Flow Hedges: Currency Swaps $ — $ — $ (15) $ 8 $ — $ — $ (32) $ 8 Interest Swaps (26) — — (9) (54) — — (42) Total: Designated for Hedge accounting (26) — (15) (1) (54) — (32) (34) Derivatives: Not Designated for Hedge accounting Equity Futures (2) — — — (451) — — — Swaps (3) — — — (2,613) — — — Options (169) — — — 2,177 — — — Interest Rate Futures (93) — — — (891) — — — Swaps 67 — — — (2,375) — — — Swaptions — — — — — — — — Credit Credit Default Swaps — — — — — — — — Currency Currency Swaps 3 — — — 3 — — — Currency forwards 1 — — — 2 — — — Other Margin — — — — — — — — Collateral — — — — — — — — Total: Not Designated for Hedge accounting (196) — — — (4,148) — — — Embedded Derivatives Amounts due from reinsurers 344 — — — 586 — — — GMIB reinsurance contracts (84) — — — (542) — — — GMxB derivative features liability (2) (395) — — — 2,340 — — — SCS, SIO,MSO and IUL indexed features 172 — — — (2,157) — — — Total Embedded $ 37 $ — $ — $ — $ 227 $ — $ — $ — Total Derivatives $ (185) $ — $ (15) $ (1) $ (3,975) $ — $ (32) $ (34) Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 (in millions) Net Derivatives Gain(Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI Net Derivatives Gain(Losses) (1) Net Investment Income Interest Credited To Policyholders Account Balances AOCI Derivatives: Designated for Hedge accounting Cash Flow Hedges: Interest Swaps $ (12) $ — $ — $ (65) $ (4) $ — $ — $ (64) Total: Designated for Hedge accounting (12) — — (65) (4) — — (64) Derivatives: Not designated for Hedge accounting Equity Futures (208) — — — (401) — — — Swaps (1,563) — — — (604) — — — Options 909 — — — (481) — — — Interest Rate Futures (16) — — — 2,051 — — — Swaps (59) — — — 3,592 — — — Swaptions — — — — 9 — — — Credit Credit Default Swaps 1 — — — 2 — — — Currency Currency Swaps — — — — — — — — Currency forwards (1) — — — (3) — — — Other Margin — — — — — — — — Collateral — — — — — — — — Total: Not designated for Hedge accounting (937) — — — 4,165 — — — Embedded Derivatives Amounts due from reinsurers — — — — — — — — GMIB reinsurance contracts (102) — — — 737 — — — GMxB derivative features liability 579 — — — (3,421) — — — SCS, SIO,MSO and IUL indexed features (1,000) — — — 414 — — — Total Embedded $ (523) $ — $ — $ — $ (2,270) $ — $ — $ — Total Derivatives $ (1,472) $ — $ — $ (65) $ 1,891 $ — $ — $ (64) (1) Reported in net derivative gains (losses) in the consolidated statements of income (loss). (2) Excludes settlement fees of $45 million on CS Life reinsurance contract for the nine months ended September 30, 2021 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The table that follow below present a roll-forward of cash flow hedges recognized in AOCI. Rollforward of Cash flow hedges in AOCI Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Balance, beginning of period $ (158) $ 1 $ (126) $ (38) Amount recorded in AOCI — — Currency Swaps 7 — 7 — Interest Swaps (40) (81) (118) (46) Total Amount recorded in AOCI (33) (81) (111) (46) Amount reclassified from AOCI to income — — — Currency Swaps — — — — Interest Swaps 31 16 77 20 Total Amount reclassified from AOCI to income 31 16 77 20 Ending Balance, September 30 (1) $ (160) $ (64) $ (160) $ (64) _______________ (1) The Company does not estimate the amount of the deferred losses in AOCI at three and nine months ended September 30, 2021 and 2020 which will be released and reclassified into Net income (loss) over the next 12 months as the amounts cannot be reasonably estimated. |
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 September 30, 2021 and December 31, 2020: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of September 30, 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) $ 10,707 $ 9,774 $ 933 $ (817) $ 116 Other financial assets 1,727 — 1,727 — 1,727 Other invested assets $ 12,434 $ 9,774 $ 2,660 $ (817) $ 1,843 Liabilities: Derivative liabilities (2) $ 10,418 $ 9,774 $ 644 $ — $ 644 Other financial liabilities 4,699 — 4,699 — 4,699 Other liabilities $ 15,117 $ 9,774 $ 5,343 $ — $ 5,343 ______________ (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 assets 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) | 9 Months Ended |
Sep. 30, 2021 | |
Closed Block Disclosure [Abstract] | |
Schedule of Closed Block Assets and Liabilities | Summarized financial information for the Company’s Closed Block is as follows: September 30, 2021 December 31, 2020 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 6,022 $ 6,201 Policyholder dividend obligation 25 160 Other liabilities 40 39 Total Closed Block liabilities 6,087 6,400 Assets Designated to the Closed Block: Fixed maturities AFS, at fair value (amortized cost of $3,283 and $3,359) (allowance for credit losses of $0) 3,537 3,718 Mortgage loans on real estate (net of allowance for credit losses of $5 and $6) 1,770 1,773 Policy loans 615 648 Cash and other invested assets 18 28 Other assets 98 169 Total assets designated to the Closed Block 6,038 6,336 Excess of Closed Block liabilities over assets designated to the Closed Block 49 64 Amounts included in AOCI: Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $25 and $160; and net of income tax: $(48) and $(42) 191 167 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 240 $ 231 |
Closed Block Operations, Net Results | The Company’s Closed Block revenues and expenses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Revenues: Premiums and other income $ 33 $ 36 $ 109 $ 118 Net investment income (loss) 59 61 179 190 Investment gains (losses), net — 1 2 (1) Total revenues 92 98 290 307 Benefits and Other Deductions: Policyholders’ benefits and dividends 108 96 304 302 Other operating costs and expenses 2 — 3 1 Total benefits and other deductions 110 96 307 303 Net income (loss), before income taxes (18) 2 (17) 4 Income tax (expense) benefit (2) (1) (3) (2) Net income (loss) $ (20) $ 1 $ (20) $ 2 |
Closed Block Dividend Obligation | A reconciliation of the Company’s policyholder dividend obligation follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Beginning balance $ 72 $ 2 $ 160 $ 2 Unrealized investment gains (losses) (47) — (135) — Ending balance $ 25 $ 2 $ 25 $ 2 |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 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 and Nine Months Ended September 30, 2021 and 2020 GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Balance, July 1, 2021 $ 5,091 $ — $ (2,262) $ 5,905 $ — $ (4,168) Paid guarantee benefits (103) — 41 (87) — 16 Other changes in reserve (6) — 2 131 — 89 Impact of the Venerable transaction (1) (2) — — — — — — Balance, September 30, 2021 $ 4,982 $ — $ (2,219) $ 5,949 $ — $ (4,063) Balance, July 1, 2020 $ 5,004 $ 70 $ (105) $ 6,122 $ 232 $ (2,931) Paid guarantee benefits (121) (6) 3 (110) (9) 21 Other changes in reserve 233 4 10 113 (3) 92 Balance, September 30, 2020 $ 5,116 $ 68 $ (92) $ 6,125 $ 220 $ (2,818) 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 (350) (12) 64 (271) (49) 41 Other changes in reserve 235 14 (19) 194 (7) 525 Impact of the Venerable transaction (1) (2) — (74) (2,176) — (140) (2,141) Balance, September 30, 2021 $ 4,982 $ — $ (2,219) $ 5,949 $ — $ (4,063) Balance, January 1, 2020 $ 4,780 $ 76 $ (104) $ 4,673 $ 187 $ (2,139) Paid guarantee benefits (372) (16) 11 (287) 39 58 Other changes in reserve 708 8 1 1,739 (6) (737) Balance, September 30, 2020 $ 5,116 $ 68 $ (92) $ 6,125 $ 220 $ (2,818) _____________ (1) Change in Assumed is driven by the sale of CSLRC to Venerable. (2) Includes the impact as of June 1, 2021 on the ceded reserves to Venerable. See Note 1- Organization for details of the Venerable transaction. |
Schedule of Net Amount of Risk by Product and Guarantee | Direct Variable Annuity Contracts with GMDB and GMIB Features as of September 30, 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 $ 16,038 $ 85 $ 52 $ 161 $ 16,336 Separate Accounts 57,196 9,643 3,325 33,862 104,026 Total Account Values $ 73,234 $ 9,728 $ 3,377 $ 34,023 $ 120,362 NAR, gross $ 106 $ 80 $ 1,441 $ 16,473 $ 18,100 NAR, net of amounts reinsured $ 103 $ 72 $ 1,013 $ 8,394 $ 9,582 Average attained age of policyholders (in years) 51.5 68.9 75.4 70.9 55.4 Percentage of policyholders over age 70 11.6 % 50.5 % 72.0 % 56.7 % 20.7 % 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 $ — $ — $ 15 $ 210 $ 225 Separate Accounts — — 25,670 36,152 61,822 Total Account Values $ — $ — $ 25,685 $ 36,362 $ 62,047 NAR, gross $ — $ — $ 693 $ 9,492 $ 10,185 NAR, net of amounts reinsured $ — $ — $ 223 $ 3,896 $ 4,119 Average attained age of policyholders (in years) N/A N/A 64.8 70.7 68.5 Weighted average years remaining until annuitization N/A N/A 5.9 0.6 2.6 Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% |
Schedule of Fair Value of Separate Accounts by Major Category of Investment | Investment in Variable Insurance Trust Mutual Funds September 30, 2021 December 31, 2020 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 50,060 $ 19,264 $ 46,850 $ 18,771 Fixed income 5,453 2,570 5,506 2,701 Balanced 47,475 39,723 47,053 39,439 Other 1,038 265 1,111 275 Total $ 104,026 $ 61,822 $ 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Beginning balance $ 1,070 $ 948 $ 1,022 $ 898 Paid guarantee benefits (24) (6) (52) (32) Other changes in reserves 38 60 114 136 Ending balance $ 1,084 $ 1,002 $ 1,084 $ 1,002 _____________ (1) There were no amounts of reinsurance ceded in any period presented. |
REINSURANCE (Tables)
REINSURANCE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Reinsurance Disclosures [Abstract] | |
Schedule Of Effect Of Reinsurance | The following table summarizes the effect of reinsurance. The impact of the transactions described above results in a decrease to reinsurance assumed and an increase in reinsurance ceded. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Direct premiums $ 250 $ 214 $ 733 $ 698 Reinsurance assumed 43 50 144 167 Reinsurance ceded (63) (43) (148) (111) Premiums $ 230 $ 221 $ 729 $ 754 Direct charges and fee income $ 1,051 $ 1,016 $ 3,177 $ 3,098 Reinsurance ceded (184) (102) (422) (311) Policy charges and fee income $ 867 $ 914 $ 2,755 $ 2,787 Direct policyholders’ benefits $ 862 $ 1,115 $ 2,935 $ 4,882 Reinsurance assumed 55 54 173 189 Reinsurance ceded (166) (135) (590) (525) Policyholders’ benefits $ 751 $ 1,034 $ 2,518 $ 4,546 Direct interest credited to policyholders’ account balances $ 307 $ 306 $ 934 $ 942 Reinsurance ceded (2) — (29) (12) Interest credited to policyholders’ account balances $ 305 $ 306 $ 905 $ 930 |
Ceded Credit Risk | The following table summarizes the ceded reinsurance GMIB reinsurance contracts, third-party recoverables, amount due to reinsurance and assumed reserves impacted by the Venerable transactions. September 30, 2021 December 31, 2020 (in millions) Ceded Reinsurance: Estimated net fair values of ceded GMIB reinsurance contracts, considered derivatives (1) $ 1,937 $ 2,488 Third-party reinsurance recoverables related to insurance contracts 14,801 4,566 Top reinsurers: Venerable Insurance and Annuity Company (BBB+ SAP rating) 10,395 N/A Zurich Life Insurance Company, Ltd. (AA- SAP rating) 1,340 1,421 Protective Life Insurance Company (AA- SAP rating) 1,146 1,184 RGA Reinsurance Company (AA- SAP rating)) 1,146 1,143 Amount due to reinsurers 1,466 1,381 Top reinsurers: RGA Reinsurance Company 1,225 1,135 Venerable Insurance and Annuity Company 129 N/A Protective Life Insurance Company 111 116 Assumed Reinsurance: Reinsurance assumed reserves 166 788 Estimated net fair values of assumed GMIB reserves — 195 ______________ (1) The estimated fair values increased $(89) million, $(113) million, $(551) million and $679 million for the three and nine months ended September 30, 2021 and 2020, respectively. |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, AFS: Corporate (1) $ — $ 50,999 $ 1,453 $ 52,452 U.S. Treasury, government and agency — 15,253 — 15,253 States and political subdivisions — 600 37 637 Foreign governments — 1,003 — 1,003 Residential mortgage-backed (2) — 106 — 106 Asset-backed (3) — 5,579 5 5,584 Commercial mortgage-backed — 1,869 10 1,879 Redeemable preferred stock — 54 — 54 Total fixed maturities, AFS — 75,463 1,505 76,968 Fixed maturities, at fair value using the fair value option — 1,152 182 1,334 Other equity investments (7) 433 415 5 853 Trading securities 332 213 39 584 Other invested assets: Short-term investments — 30 — 30 Assets of consolidated VIEs/VOEs 62 218 11 291 Swaps — (595) — (595) Credit default swaps — — — — Futures 2 — — 2 Options — 5,892 — 5,892 Total other invested assets 64 5,545 11 5,620 Cash equivalents 3,168 269 — 3,437 Segregated securities — 909 — 909 Amounts due from reinsurer (6) — — 5,869 5,869 GMIB reinsurance contracts asset — — 1,937 1,937 Separate Accounts assets (4) 138,906 2,562 — 141,468 Total Assets $ 142,903 $ 86,528 $ 9,548 $ 238,979 Liabilities Notes issued by consolidated VIE’s, at fair value using the fair value option (5) $ — $ 1,187 $ — $ 1,187 GMxB derivative features’ liability — — 8,938 8,938 SCS, SIO, MSO and IUL indexed features’ liability — 5,565 — 5,565 Liabilities of consolidated VIEs and VOEs 18 3 — 21 Contingent payment arrangements — — 38 38 Total Liabilities $ 18 $ 6,755 $ 8,976 $ 15,749 ______________ (1) Corporate fixed maturities includes 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) 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 September 30, 2021, the fair value of such investments was $379 million. (5) Includes CLO short-term debt of $1 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 $3 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. (6) This represents GMIB NLG ceded reserves related to the Venerable transaction. See Note 1- Organization for details of the Venerable transaction. (7) Includes short position equity securities of $29 million that are reported in other liabilities. 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 and changes in unrealized gains (losses) for the three and nine months ended September 30, 2021 and 2020, respectively. Level 3 Instruments - Fair Value Measurements Corporate State and Political Subdivisions Asset-backed CMBS Trading Securities, at Fair Value Fixed maturities, at FVO (2) (in millions) Balance, July 1, 2021 $ 1,261 $ 37 $ 128 $ 10 $ 39 $ 148 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 1 — — — — (7) Investment gains (losses), net (2) — — — — — Subtotal (1) — — — — (7) Other comprehensive income (loss) 4 (1) — — — — Purchases 262 — (121) — — 62 Sales (71) — (2) — — (17) Activity related to consolidated VIEs/VOEs — — — — — — Transfers into Level 3 (1) (2) — — — — (14) Transfers out of Level 3 (1) — — — — — 10 Balance, September 30, 2021 $ 1,453 $ 36 $ 5 $ 10 $ 39 $ 182 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (3) $ — $ — $ — $ — $ — $ 9 Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (3) $ 4 $ (1) $ — $ — $ — $ — Balance, July 1, 2020 $ 1,685 $ 40 $ — $ — $ 37 $ — Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net (1) — — — — — Subtotal (1) — — — — — Other comprehensive income (loss) 18 (1) — — — — Purchases (155) — 13 — 15 — Sales (24) — — — — — Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (1) (29) — — — — — Transfers out of Level 3 (1) — — — — — — Balance, September 30, 2020 $ 1,494 $ 39 $ 13 $ — $ 52 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (3) $ — $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (3) $ 18 $ (1) $ — $ — $ — $ — Level 3 Instruments - Fair Value Measurements Corporate State and Political Subdivisions Asset-backed CMBS Trading Securities, at Fair Value Fixed maturities, at FVO (2) (in millions) Balance, January 1, 2021 $ 1,702 $ 39 $ 20 $ — $ 39 $ 80 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 4 — — — — 4 Investment gains (losses), net (14) — — — — — Subtotal (10) — — — — 4 Other comprehensive income (loss) 30 (2) — — — Purchases 721 — 3 10 — 192 Sales (277) (1) (18) — — (26) Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (1) — — — — — 1 Transfers out of Level 3 (1) (713) — — — — (69) Balance, September 30, 2021 $ 1,453 $ 36 $ 5 $ 10 $ 39 $ 182 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (3) $ — $ — $ — $ — $ — $ 4 Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (3) $ 30 $ (2) $ — $ — $ — $ — Balance, January 1, 2020 $ 1,257 $ 39 $ 100 $ — $ 37 $ — Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 2 — — — — — Investment gains (losses), net (14) — — — — — Subtotal (12) — — — — — Other comprehensive income (loss) (36) 1 — — — — Purchases 207 — 13 — 15 — Sales (114) (1) — — — — Activity related to consolidated VIEs/VOEs — — Transfers into Level 3 (1) 195 — — — — — Transfers out of Level 3 (1) (3) — (100) — — — Balance, September 30, 2020 $ 1,494 $ 39 $ 13 $ — $ 52 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (3) $ — $ — $ — $ — $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (3) $ (36) $ 1 $ — $ — $ — $ — _____________ (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. (3) For instruments held as of September 30, 2021 or September 30, 2020, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. Other Equity Investments (9) GMIB Reinsurance Contract Asset Amounts Due from Reinsurers Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement Balance, July 1, 2021 $ 103 $ 2,026 $ 5,510 $ 1 $ (8,455) $ (38) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income 1 — — — — — Net derivative gains (losses) (1) — (84) 344 — (395) — Total realized and unrealized gains (losses) 1 (84) 344 — (395) — Other comprehensive income (loss) — — — — — — Purchases (2) 1 11 31 (1) (108) 1 Sales (3) (91) (16) (16) — 20 — Settlements (4) — — — — — — Activity related to consolidated VIEs/VOEs 1 — — — — (1) Transfers into Level 3 (5) — — — — — — Transfers out of Level 3 (5) — — — — — — Balance, September 30, 2021 $ 15 $ 1,937 $ 5,869 $ — $ (8,938) $ (38) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8) $ 1 $ (84) $ 344 $ — $ (395) $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8) $ — $ — $ — $ — $ — $ — Balance, July 1, 2020 $ 95 $ 2,931 $ — $ — $ (12,689) $ (28) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income 3 — — — — — Net derivative gains (losses) — (103) — — 579 — Total realized and unrealized gains (losses) 3 (103) — — 579 — Other comprehensive income (loss) — — — — — — Purchases (2) 5 11 — — (115) — Sales (3) (15) (21) — — 21 — Settlements (4) — — — — — — Activity related to consolidated VIEs/VOEs (2) — — — — — Transfers into Level 3 (5) — — — — — (1) Transfers out of Level 3 (5) — — — — — — Balance, September 30, 2020 $ 86 $ 2,818 $ — $ — $ (12,204) $ (29) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8) $ 1 $ (103) $ — $ — $ 579 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8) $ — $ — $ — $ — $ — $ — Other Equity Investments (9) GMIB Reinsurance Amounts Due from Reinsurers Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement Balance, January 1, 2021 $ 84 $ 2,488 $ — $ 1 $ (11,131) $ (28) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income 20 — — — — — Net derivative gains (losses) (1) (6) — (542) 586 — 2,340 — Total realized and unrealized gains (losses) 20 (542) 586 — 2,340 — Other comprehensive income (loss) — — — — — — Purchases (2) 4 32 41 — (348) (7) Sales (3) (92) (41) (17) — 61 — Settlements (4) — — — — — — Other (7) — — 5,259 — — — Activity related to consolidated VIEs/VOEs (1) — — — — (3) Transfers into Level 3 (5) — — — — — Transfers out of Level 3 (5) — — — (1) 140 — Balance, September 30, 2021 $ 15 $ 1,937 $ 5,869 $ — $ (8,938) $ (38) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8) $ 2 $ (542) $ 586 $ — $ 2,340 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8) $ — $ — $ — $ — $ — $ — Balance, January 1, 2020 $ 113 $ 2,139 $ — $ — $ (8,502) $ (23) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income (7) — — — — — Net derivative gains (losses) — 736 — — (3,421) — Total realized and unrealized gains (losses) (7) 736 — — (3,421) — Other comprehensive income (loss) — — — — — — Purchases (2) 10 33 — — (335) (4) Sales (3) (26) (58) — — 54 — Settlements (4) — — — — — — Change in estimate — (32) — — — — Activity related to consolidated VIEs/VOEs (4) — — — — (2) Transfers into Level 3 (5) — — — — — — Transfers out of Level 3 (5) — — — — — — Balance, September 30, 2020 $ 86 $ 2,818 $ — $ — $ (12,204) $ (29) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (8) $ (8) $ 736 $ — $ — $ (3,421) $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (8) $ — $ — $ — $ — $ — $ — ______________ (1) For the three and nine months ended September 30, 2021, the Company’s non-performance risk impact of $(92) million and $(72) million for the GMxB Derivative Features Liability, $5 million and $6 million for the GMIB Reinsurance Contract Asset, and $(19) million and $(7) million for the Amounts Due from Reinsurers, respectively, is recorded through Net derivative gains (losses). (2) For the GMIB reinsurance contract asset, Amounts Due from Reinsurers and GMxB derivative features liability, represents attributed fee. (3) For the GMIB reinsurance contract asset and Amounts Due from Reinsurers, 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) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (6) GMxB Derivative Features Liability excludes a $45 million settlement fee on CS Life reinsurance contract. (7) Represents the opening ceded balance from the Venerable transaction of the GMxB with no lapse guarantee riders. (8) For instruments held as of September 30, 2021 or September 30, 2020, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. |
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 September 30, 2021 and December 31, 2020, respectively. Quantitative Information about Level 3 Fair Value Measurements as of September 30, 2021 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (2) (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 206 Matrix pricing model Spread over Benchmark 20 - 295 bps 159 bps 820 Market comparable EBITDA multiples Discount rate Cash flow multiples Loan to value 4.9x - 73.7x 5.95% - 15.03% 0.0x - 9.0x 0.00% - 60.77% 12.3x 8.99% 6.0x 30.45% Trading Securities, at Fair Value 39 Discounted Cash Flow Earnings multiple Discount factor Discount years 8.2x 10.00% 11 Other equity investments 4 Market comparable companies Revenue multiple 8.2x - 9.5x 8.5x GMIB reinsurance contract asset 1,937 Discounted cash flow Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115 0.45%-20.86% 0.27%-8.66% 0.04%-60.44% 40 bps - 78 bps 10%-32% 0.01%-0.17% 0.06%-0.53% 0.31%-40.00% 2.56% 0.93% 5.43% 44 bps 24% 2.76% (same for all ages) (same for all ages) Amount Due from Reinsurers 5,869 Discounted Cash Flow Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk (bps) Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115 0.45%-20.86% 0.27%-8.66% 0.04%-60.44% 34 bps-34 bps 10%-32% 0.01%-0.17% 0.06%-0.53% 0.31%-40.00% 1.67% 1.17% 7.34% 34 bps 24% 2.13% (same for all ages) (same for all ages) Liabilities: Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (2) AB Contingent Consideration Payable 38 Discounted cash flow Expected revenue growth rates Discount rate 2.0% - 83.9% 1.9% - 10.4% 13.0% 6.6% GMIBNLG 8,896 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41-60 Ages 61-115 92 bps - 92 bps 1.04%-23.57% 0.27%-8.66% 0.03%-100.00% 0.01%-0.19% 0.07%-0.57% 0.44%-43.60% 92 bps 3.51% 1.03% 5.35% 1.60% (same for all ages) (same for all ages) GWBL/GMWB 104 Discounted cash flow Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk(bps) 0.60%-20.86% 0.00%-8.00% 100% once starting 10%-32% 92 bps-92 bps 2.56% 0.93% 24% GIB (60) Discounted cash flow Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk(bps) 0.60%-20.86% 0.13%-8.66% 0.04%-100.00% 10% - 32% 92 bps - 92 bps 2.56% 0.93% 5.43% 24% GMAB (3) Discounted cash flow Lapse rates Volatility rates - Equity Non-performance risk(bps) 0.60%-20.86% 10%-32% 92 bps - 92 bps 2.56% 24% ______________ (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 bps - 195 bps 160 bps 1,148 Market comparable companies EBITDA multiples Discount rate Cash flow multiples 3.5x - 33.1x 5.60% - 28.40% 1.9x-25.0x 10.8x 8.60% 6.8x Trading Securities, at Fair Value 39 Discounted cash flow Earnings multiple Discounts factor Discount years 8.2x 10.00% 11 Other equity investments 2 Market comparable companies Revenue multiple 9.7x - 26.4x 18.5x Fair Valuation Significant Range Weighted Average (in millions) GMIB reinsurance contract asset 2,488 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 43 - 85 bps 0.6% - 16% 0% - 2% 0% - 61% 7% - 32% 0.01% - 0.18% 0.07% - 0.54% 0.42% - 42.20% 50 bps 1.69% 0.91% 5.82% 24% 2.80% (same for all ages) (same for all ages) Liabilities: AB Contingent Consideration Payable 28 Discounted cash flow Expected revenue growth rates Discount rate 0.7% - 50.0% 1.9% - 10.4% 4.9% 8.0% GMIBNLG 10,713 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 96.0 bps 1.1% - 25.7% 0.4% - 2% 0% - 100% 0.01% - 0.19% 0.06% - 0.53% 0.41% - 41.39% 3.19% 0.93% 5.51% 1.56% (same for all ages) (same for all ages) Assumed GMIB Reinsurance Contracts 195 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates (Age 0 - 85) Withdrawal rates (Age 86+) Utilization rates Volatility rates - Equity 60 - 133 bps 1.1% - 11.1% 0.6% - 22.2% 1.1% - 100% 0% -30% 7%-32% 99 bps 1.69% 0.91% (same for all ages) 5.82% 24% GWBL/GMWB 190 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity 96.0 bps 0.8%-16% 0%-8% 100% once starting 7%-32% 1.69% 0.91% 24% GIB 31 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity 96.0 bps 0.8%-15.6% 0%-2% 0%-100% 7%-32% 1.69% 0.91% 5.82% 24% GMAB 2 Discounted cash flow Non-performance risk Lapse rates Volatility rates - Equity 96.0 bps 0.8%-16% 7%-32% 1.69% 24% ______________ (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 September 30, 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) September 30, 2021: Mortgage loans on real estate $ 13,448 $ — $ — $ 13,775 $ 13,775 Policy loans $ 4,027 $ — $ — $ 5,109 $ 5,109 Policyholders’ liabilities: Investment contracts (3) $ 2,059 $ — $ — $ 2,187 $ 2,187 FHLB funding agreements $ 6,807 $ — $ 6,864 $ — $ 6,864 FABN funding agreements $ 5,732 $ — $ 5,733 $ — $ 5,733 Short-term and long-term debt (2) $ 3,838 $ — $ 4,616 $ — $ 4,616 Separate Accounts liabilities $ 11,092 $ — $ — $ 11,092 $ 11,092 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 $1 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option. (3) As of September 30, 2021, r eflects transfer of certain policyholders account balances to future policyholder benefits and other policyholders liabilities related to structured settlement contracts. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Service cost $ 2 $ 3 $ 7 $ 7 Interest cost 13 23 40 68 Expected return on assets (40) (36) (116) (110) Prior Period Svc Cost Amortization 1 — — — Actuarial (gain) loss — — 1 1 Net amortization 23 27 81 82 Impact of settlement 2 $ 4 2 4 Net Periodic Pension Expense $ 1 $ 21 $ 15 $ 52 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Stock by Class | Preferred stock authorized, issued and outstanding was as follows: September 30, 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 September 30, Nine months ended September 30, 2021 2020 2021 2020 Series A dividends declared $ 328.13 $ 328.13 $ 984.38 $ 1,049.99 Series B dividends declared $ — $ — $ 618.75 $ — Series C dividends declared $ 268.75 $ — $ 737.57 $ — Dividends declared per share of common stock were as follows for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Dividends declared $ 0.18 $ 0.17 $ 0.53 $ 0.49 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The balances as of September 30, 2021 and December 31, 2020 follow: September 30, December 31, 2021 2020 (in millions) Unrealized gains (losses) on investments $ 2,741 $ 4,797 Defined benefit pension plans (858) (935) Foreign currency translation adjustments (47) (34) Total accumulated other comprehensive income (loss) 1,836 3,828 Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest (40) (35) Accumulated other comprehensive income (loss) attributable to Holdings $ 1,876 $ 3,863 |
Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of OCI, net of taxes for the three and nine months ended September 30, 2021 and 2020 follow: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ (310) $ 309 $ (2,547) $ 4,675 (Gains) losses reclassified into net income (loss) during the period (1) (131) (26) (617) (225) Net unrealized gains (losses) on investments (441) 283 (3,164) 4,450 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 318 (54) 1,108 (1,177) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(32), $61, $(546) and $870 ) (123) 229 (2,056) 3,273 Change in defined benefit plans: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost 22 21 77 71 Change in defined benefit plans (net of deferred income tax expense (benefit) of $6, $6, $20 and $19) 22 21 77 71 Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period (9) 16 (13) 1 Foreign currency translation adjustment (9) 16 (13) 1 Total other comprehensive income (loss), net of income taxes (110) 266 (1,992) 3,345 Less: Other comprehensive income (loss) attributable to noncontrolling interest (3) 6 (5) 1 Other comprehensive income (loss) attributable to Holdings $ (107) $ 260 $ (1,987) $ 3,344 _______________ (1) See “Reclassification adjustments” in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $35 million, $(7) million, $164 million, and $(60) million for the three and nine months ended September 30, 2021 and 2020, respectively. |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Balance, beginning of period $ 42 $ 87 $ 143 $ 365 Net earnings (loss) attributable to redeemable noncontrolling interests — 1 4 (4) Purchase/change of redeemable noncontrolling interests 101 7 (4) (266) Balance, end of period $ 143 $ 95 $ 143 $ 95 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity of Funding Agreements | The table below summarizes the Company’s activity of funding agreements with the FHLB. Change in FHLB Funding Agreements during the Nine Months Ended September 30, 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 September 30, 2021 (in millions) Short-term funding agreements: Due in one year or less $ 5,634 $ 46,301 $ 46,389 $ 322 $ — $ 5,868 Long-term funding agreements: Due in years two through five 722 — — (322) 409 809 Due in more than five years 534 — — — (409) 125 Total long-term funding agreements 1,256 — — (322) — 934 Total funding agreements (1) $ 6,890 $ 46,301 $ 46,389 $ — $ — $ 6,802 _____________ (1) The $5 million and $7 million difference between the funding agreements carrying value shown in fair value table for September 30, 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 Nine Months Ended September 30, 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 Foreign Currency Transaction Adjustment Outstanding Balance at September 30, (in millions) Short-term funding agreements: Due in one year or less $ — $ — $ — $ — $ — $ — $ — Long-term funding agreements: Due in years two through five 1,150 2,450 — — — — 3,600 Due in more than five years 800 1,359 — — — (30) 2,129 Total long-term funding agreements 1,950 3,809 — — — (30) 5,729 Total funding agreements (1) $ 1,950 $ 3,809 $ — $ — $ — $ (30) $ 5,729 _____________ |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2021 and 2020, respectively: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Net income (loss) attributable to Holdings $ 672 $ (779) $ (693) $ 590 Adjustments related to: Variable annuity product features (1) 172 1,620 3,632 473 Investment (gains) losses (164) (17) (767) (190) Net actuarial (gains) losses related to pension and other postretirement benefit obligations 27 31 87 86 Other adjustments (2) (3) (4) (5) 141 66 672 836 Income tax expense (benefit) related to above adjustments (6) (35) (357) (761) (253) Non-recurring tax items 5 4 6 12 Non-GAAP operating earnings $ 818 $ 568 $ 2,176 $ 1,554 Operating earnings (loss) by segment: Individual Retirement $ 316 $ 371 $ 1,093 $ 1,094 Group Retirement $ 192 $ 129 $ 514 $ 325 Investment Management and Research $ 134 $ 104 $ 381 $ 291 Protection Solutions $ 160 $ 51 $ 264 $ 88 Corporate and Other (7) $ 16 $ (87) $ (76) $ (244) ______________ (1) Includes COVID-19 impact on variable annuity product features due to a first quarter 2020 assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the nine months ended September 30, 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 $86 million for the nine months ended September 30, 2020 . (3) Include separation costs of $25 million, $37 million, $62 million and $108 million for the three and nine months ended September 30, 2021 and 2020, respectively. (4) Includes certain legal accruals related to the COI litigation of $180 million for the nine months ended September 30, 2021 . No adjustments were made to prior period operating earnings as the impact was immaterial. (5) Includes Non-GMxB related derivative hedge gains and losses of $(4) million, $10 million, $140 million, and $(461) million for the three and nine months ended September 30, 2021 and 2020, respectively. (6) Includes income taxes of $554 million for the above COVID-19 items for the nine months ended September 30, 2020 . (7) Includes interest expense and financing fees of $65 million, $56 million, $180 million and $164 million for the three and nine months ended September 30, 2021 and 2020, respectively. The table below presents segment revenues for the three and nine months ended September 30, 2021 and 2020. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Segment revenues: Individual Retirement (1) $ 998 $ 1,079 $ 2,957 $ 3,352 Group Retirement (1) 343 301 1,018 829 Investment Management and Research (2) 1,093 899 3,169 2,650 Protection Solutions (1) 838 751 2,496 2,344 Corporate and Other (1) 479 300 1,199 881 Adjustments related to: Variable annuity product features (256) (1,512) (3,750) 1,160 Investment gains (losses), net 164 17 767 190 Other adjustments to segment revenues (3) (44) 5 (138) 493 Total revenues $ 3,615 $ 1,840 $ 7,718 $ 11,899 ______________ (1) Includes investment expenses charged by AB of $20 million, $17 million, $59 million and $51 million for the three and nine months ended September 30, 2021 and 2020, respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of $32 million, $28 million, $94 million and $82 million for the three and nine months ended September 30, 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 and other COVID-19 related impacts of $(30) million for the nine months ended September 30, 2020 . The table below presents total assets by segment as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (in millions) Total assets by segment: Individual Retirement (1) $ 140,664 $ 135,764 Group Retirement 52,919 51,466 Investment Management and Research 10,772 11,179 Protection Solutions 48,745 48,568 Corporate and Other 31,479 28,420 Total assets $ 284,579 $ 275,397 ______________ (1) Increase in Individual Retirement as of September 30, 2021 is primarily due to Amounts due from Reinsurers related to ceded reserves on the Venerable transaction (see Note 1 Organization). |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions) Weighted-average common shares outstanding: Weighted-average common shares outstanding — basic 411.3 447.5 423.2 453.0 Effect of dilutive potential common shares: Employee share awards (1) 3.3 — — 1.1 Weighted-average common shares outstanding — diluted (2) 414.6 447.5 423.2 454.1 Net income (loss): Net income (loss) $ 765 $ (705) $ (412) $ 787 Less: Net income (loss) attributable to the noncontrolling interest 93 74 281 197 Net income (loss) attributable to Holdings 672 (779) (693) 590 Less: Preferred stock dividends 14 11 53 34 Net income (loss) available to Holdings’ common shareholders $ 658 $ (790) $ (746) $ 556 Earnings per common share: Basic $ 1.60 $ (1.77) $ (1.76) $ 1.23 Diluted $ 1.59 $ (1.77) $ (1.76) $ 1.22 _____________ (1) Calculated using the treasury stock method. (2) Due to net loss for the nine months ended September 30, 2021 and three months ended September 30, 2020 approximately 3.7 million and 1.5 million share awards, respectively, were excluded from the diluted EPS calculation. |
HELD-FOR-SALE (Tables)
HELD-FOR-SALE (Tables) | 9 Months Ended |
Sep. 30, 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 December 31, 2020: December 31, 2020 (in millions) Assets: Fixed maturity securities $ 235 Trading securities, at fair value 189 Other invested assets 1 Cash and cash equivalents 39 Other assets 25 Assets held-for-sale 489 Less: Loss accrual (19) Total assets held-for-sale $ 470 Liabilities: Future policy benefits and other policyholder's liabilities: $ 320 Broker-dealer related payables — Other liabilities 2 Total liabilities held-for-sale $ 322 |
ORGANIZATION - Narrative (Detai
ORGANIZATION - Narrative (Details) | Jun. 01, 2021USD ($) | Sep. 30, 2021USD ($)segment | Dec. 31, 2020USD ($) |
Organization Basis Of Presentation [Line Items] | |||
Number of reportable segments | segment | 4 | ||
Assets | $ 284,579,000,000 | $ 275,397,000,000 | |
Alliance Bernstein (AB) | |||
Organization Basis Of Presentation [Line Items] | |||
Economic interest | 65.00% | 65.00% | |
Corporate Solutions Life Reinsurance Company (CSLRC) | |||
Organization Basis Of Presentation [Line Items] | |||
Ownership percentage acquired | 100.00% | ||
Corporate Solutions Life Reinsurance Company (CSLRC) | Venerable Insurance and Annuity Company (VAIC) | |||
Organization Basis Of Presentation [Line Items] | |||
Business combination, consideration transferred | $ 215,000,000 | ||
VA Capital Company LLC | Equitable Investment Management Group, LLC | |||
Organization Basis Of Presentation [Line Items] | |||
Ownership percentage acquired | 9.09% | ||
Corporate Solutions Life Reinsurance Company (CSLRC) | Alliance Bernstein (AB) | |||
Organization Basis Of Presentation [Line Items] | |||
Assets | $ 9,500,000,000 | ||
Direct insurance liabilities ceded | 9,600,000,000 | ||
Separate account, liability, ceded | 16,900,000,000 | ||
Corporate Solutions Life Reinsurance Company (CSLRC) | Alliance Bernstein (AB) | GMxB derivative features’ liability | |||
Organization Basis Of Presentation [Line Items] | |||
Fair value | 5,300,000,000 | ||
Equitable Financial Life Insurance Company (EFLIC) | Venerable Insurance and Annuity Company (VAIC) | |||
Organization Basis Of Presentation [Line Items] | |||
Surplus notes | $ 50,000,000 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Investments (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Life insurance, corporate or bank owned, amount | $ 1,008 | $ 992 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |||
Variable Interest Entity [Line Items] | |||||||||
Investments | $ 102,007 | $ 109,087 | |||||||
Fixed maturities, at fair value using the fair value option | [1] | 1,334 | 389 | ||||||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | [1] | 1,190 | 313 | ||||||
Unpaid outstanding balance and short-term borrowing | 1,200 | 362 | |||||||
Assets | 284,579 | 275,397 | |||||||
Liabilities | 271,264 | 258,077 | |||||||
Redeemable non-controlling interest | 143 | [1],[2] | $ 42 | 143 | [1],[2] | $ 95 | $ 87 | $ 365 | |
Consolidated Variable Interest Entities | Collateralized Loan Obligations | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Investments | 116 | 38 | |||||||
Investment assets, special purpose entity | 5 | ||||||||
Consolidated Limited Partnerships | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Assets | 182 | 12 | |||||||
Non-consolidated Vairable Interest Entities | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Investments | 2,100 | 1,400 | |||||||
Assets | 240,700 | 165,900 | |||||||
Variable interest entity, maximum loss exposure | 2,100 | 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 | 322 | 284 | |||||||
Liabilities | 33 | 8 | |||||||
Redeemable non-controlling interest | 118 | 83 | |||||||
AB-Sponsored Investment Funds | VOE Consolidation Model | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Assets | 0 | 68 | |||||||
Liabilities | 0 | 23 | |||||||
Redeemable non-controlling interest | 0 | 20 | |||||||
AB-Sponsored Investment Funds | Non-consolidated Vairable Interest Entities | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Assets | 70,400 | 73,400 | |||||||
Variable interest entity, maximum loss exposure | $ 8 | $ 7 | |||||||
[1] | See Note 2 for details of balances with VIEs. | ||||||||
[2] | See Note 12 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 | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Change in Accounting Estimate [Line Items] | |||||
Policy charges and fee income | $ 867 | $ 914 | $ 2,755 | $ 2,787 | |
Policyholders’ benefits | 751 | 1,034 | 2,518 | 4,546 | |
Interest credited to policyholders’ account balances | 305 | 306 | 905 | 930 | |
Net derivative gains (losses) | (185) | (1,472) | (3,930) | 1,890 | |
Income (loss) from continuing operation, before income taxes | 930 | (923) | (634) | 928 | |
Net income (loss) | 765 | (705) | $ (412) | 787 | |
Long-term Lapses, Partial Withdrawal Rates and Election Assumptions Updates | |||||
Change in Accounting Estimate [Line Items] | |||||
Policy charges and fee income | (28) | (23) | $ 46 | ||
Policyholders’ benefits | (62) | 193 | 1,400 | ||
Interest credited to policyholders’ account balances | 5 | (6) | |||
Net derivative gains (losses) | 200 | (112) | |||
Amortization of deferred policy acquisition costs, net | (58) | (35) | 1,100 | ||
Income (loss) from continuing operation, before income taxes | (108) | (74) | (2,500) | ||
Net income (loss) | $ (85) | $ (58) | $ (2,000) | ||
Economic Scenario Generator | |||||
Change in Accounting Estimate [Line Items] | |||||
Income (loss) from continuing operation, 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% | 2.25% |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)issueloan | Sep. 30, 2020USD ($)loan | Sep. 30, 2021USD ($)loanissue | Sep. 30, 2020USD ($)loan | Dec. 31, 2020USD ($)issue | |
Net Investment Income [Line Items] | |||||
Number of positions in unrealized loss position | issue | 1,423 | 1,423 | 565 | ||
Debt securities exposure in single issuer greater than stated percentage of total investments | 0.60% | 0.60% | |||
Gross unrealized losses | $ 34,000,000 | $ 34,000,000 | $ 40,000,000 | ||
Allowance for credit losses | 64,000,000 | $ 70,000,000 | 64,000,000 | $ 70,000,000 | 81,000,000 |
Separate account equity investment carrying value | 43,000,000 | 43,000,000 | 44,000,000 | ||
Fixed maturities | |||||
Net Investment Income [Line Items] | |||||
Accrued investment income receivable | 516,000,000 | 516,000,000 | |||
Accrued interest, written off | 0 | 0 | |||
Amortized cost | 72,200,000,000 | 72,200,000,000 | 72,900,000,000 | ||
Corporate | |||||
Net Investment Income [Line Items] | |||||
Exposure in single issuer of total investments | $ 337,000,000 | $ 337,000,000 | $ 391,000,000 | ||
Debt securities exposure in single issuer of total investments, percentage | 2.60% | 2.60% | 2.30% | ||
Gross unrealized losses | $ 27,000,000 | $ 27,000,000 | $ 33,000,000 | ||
Commercial Mortgage Loans | |||||
Net Investment Income [Line Items] | |||||
Accrued investment income receivable | 30,000,000 | 30,000,000 | |||
Accrued interest, written off | 0 | 0 | |||
Number of troubled debt restructuring | loan | 1 | ||||
Troubled debt restructuring, premodification | $ 75,000,000 | 75,000,000 | |||
Troubled debt restructuring, postmodification | $ 75,000,000 | $ 75,000,000 | |||
Troubled debt restructuring, percentage of total invested assets | 0.07% | 0.07% | |||
Agricultural Mortgage Loans | |||||
Net Investment Income [Line Items] | |||||
Accrued investment income receivable | 29,000,000 | 29,000,000 | |||
Accrued interest, written off | 0 | 0 | |||
Individually Assessed Mortgage Loans | |||||
Net Investment Income [Line Items] | |||||
Mortgage loans foreclosure probable | 0 | 0 | |||
Allowance for credit losses | $ 0 | $ 0 | |||
Privately Negotiated Fixed Maturity | |||||
Net Investment Income [Line Items] | |||||
Number of troubled debt restructuring | loan | 0 | 2 | 1 | 6 | |
Troubled debt restructuring, premodification | $ 9,000,000 | $ 8,000,000 | $ 9,000,000 | $ 50,000,000 | |
Troubled debt restructuring, postmodification | $ 4,000,000 | $ 7,000,000 | $ 4,000,000 | $ 44,000,000 | |
Troubled debt restructuring, percentage of total invested assets | 0.004% | 0.04% | 0.004% | 0.04% | |
Recurring | |||||
Net Investment Income [Line Items] | |||||
Investment gains (losses), net | $ 584,000,000 | $ 584,000,000 | 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 | $ 3,000,000,000 | $ 3,000,000,000 | $ 2,500,000,000 | ||
Percentage of available for sale securities | 4.20% | 4.20% | 3.40% | ||
Unrealized loss on available for sale securities | $ 20,000,000 | $ 20,000,000 | $ 49,000,000 |
INVESTMENTS - Available-for-sal
INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | $ 72,195 | $ 72,195 | $ 72,867 | ||
Allowance for Credit Losses | 27 | 27 | 13 | ||
Gross Unrealized Gains | 5,043 | 5,043 | 8,895 | ||
Gross Unrealized Losses | 243 | 243 | 111 | ||
Fair Value | 76,968 | 76,968 | 81,638 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Due in one year or less | 1,879 | 1,879 | |||
Due in years two through five | 17,877 | 17,877 | |||
Due in years six through ten | 17,641 | 17,641 | |||
Due after ten years | 27,211 | 27,211 | |||
Subtotal | 64,608 | 64,608 | |||
Amortized cost | 72,168 | 72,168 | |||
Fair Value | |||||
Due in one year or less | 1,891 | 1,891 | |||
Due in years two through five | 18,716 | 18,716 | |||
Due in years six through ten | 18,805 | 18,805 | |||
Due after ten years | 29,933 | 29,933 | |||
Subtotal | 69,345 | 69,345 | |||
Fair Value | 76,968 | 76,968 | 81,638 | ||
Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments | |||||
Proceeds from sales | 3,701 | $ 1,433 | 20,776 | $ 6,200 | |
Gross gains on sales | 171 | 26 | 1,019 | 303 | |
Gross losses on sales | (8) | (5) | (162) | (39) | |
Credit losses | (2) | 0 | (14) | (13) | |
Fixed Maturities - Credit Loss Impairments | |||||
Balance, beginning of period | 42 | 32 | 32 | 21 | |
Previously recognized impairments on securities that matured, paid, prepaid or sold | (1) | 0 | (4) | (2) | |
Recognized impairments on securities impaired to fair value this period | 0 | 0 | 0 | 0 | |
Credit losses recognized this period on securities for which credit losses were not previously recognized | 0 | (3) | 8 | 7 | |
Additional credit losses this period on securities previously impaired | 1 | 3 | 6 | 6 | |
Increases due to passage of time on previously recorded credit losses | 0 | 0 | 0 | 0 | |
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior) | 0 | 0 | 0 | 0 | |
Balance, end of period | 42 | $ 32 | 42 | $ 32 | |
Corporate | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 49,613 | 49,613 | 53,160 | ||
Allowance for Credit Losses | 27 | 27 | 13 | ||
Gross Unrealized Gains | 3,049 | 3,049 | 5,104 | ||
Gross Unrealized Losses | 183 | 183 | 92 | ||
Fair Value | 52,452 | 52,452 | 58,159 | ||
Fair Value | |||||
Fair Value | 52,452 | 52,452 | 58,159 | ||
U.S. Treasury, government and agency | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 13,487 | 13,487 | 12,675 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 1,790 | 1,790 | 3,448 | ||
Gross Unrealized Losses | 24 | 24 | 5 | ||
Fair Value | 15,253 | 15,253 | 16,118 | ||
Fair Value | |||||
Fair Value | 15,253 | 15,253 | 16,118 | ||
States and political subdivisions | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 558 | 558 | 535 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 82 | 82 | 100 | ||
Gross Unrealized Losses | 3 | 3 | 0 | ||
Fair Value | 637 | 637 | 635 | ||
Fair Value | |||||
Fair Value | 637 | 637 | 635 | ||
Foreign governments | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 977 | 977 | 1,011 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 43 | 43 | 98 | ||
Gross Unrealized Losses | 17 | 17 | 6 | ||
Fair Value | 1,003 | 1,003 | 1,103 | ||
Fair Value | |||||
Fair Value | 1,003 | 1,003 | 1,103 | ||
Residential mortgage-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 97 | 97 | 130 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 9 | 9 | 13 | ||
Gross Unrealized Losses | 0 | 0 | 0 | ||
Fair Value | 106 | 106 | 143 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 97 | 97 | |||
Fair Value | |||||
Without single maturity date | 106 | 106 | |||
Fair Value | 106 | 106 | 143 | ||
Asset-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 5,559 | 5,559 | 3,587 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 29 | 29 | 29 | ||
Gross Unrealized Losses | 4 | 4 | 5 | ||
Fair Value | 5,584 | 5,584 | 3,611 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 5,559 | 5,559 | |||
Fair Value | |||||
Without single maturity date | 5,584 | 5,584 | |||
Fair Value | 5,584 | 5,584 | 3,611 | ||
Commercial mortgage-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 1,863 | 1,863 | 1,148 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 28 | 28 | 55 | ||
Gross Unrealized Losses | 12 | 12 | 0 | ||
Fair Value | 1,879 | 1,879 | 1,203 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 1,863 | 1,863 | |||
Fair Value | |||||
Without single maturity date | 1,879 | 1,879 | |||
Fair Value | 1,879 | 1,879 | 1,203 | ||
Redeemable preferred stock | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 41 | 41 | 621 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 13 | 13 | 48 | ||
Gross Unrealized Losses | 0 | 0 | 3 | ||
Fair Value | 54 | 54 | 666 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 41 | 41 | |||
Fair Value | |||||
Without single maturity date | 54 | 54 | |||
Fair Value | $ 54 | $ 54 | $ 666 |
INVESTMENTS - Net Unrealized In
INVESTMENTS - Net Unrealized Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | ||||
Beginning of year | $ 13,304 | $ 19,038 | $ 17,177 | $ 15,047 |
End of year | 13,172 | 18,852 | 13,172 | 18,852 |
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 | 5,361 | 8,728 | 8,811 | 3,453 |
Net investment gains (losses) arising during the period | (395) | 362 | (3,231) | 5,898 |
Included in net income (loss) | (165) | (21) | (747) | (273) |
Excluded from net income (loss) | 0 | 0 | 0 | 0 |
Other | 0 | (33) | ||
Impact of net unrealized investment gains (losses) | 0 | 0 | 0 | 0 |
Net unrealized investment gains (losses) excluding credit losses | 4,801 | 9,069 | 4,800 | 9,078 |
Net unrealized investment gains (losses) with credit losses | (1) | 3 | 0 | (6) |
End of year | 4,800 | 9,072 | 4,800 | 9,072 |
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 | (1,165) | (1,521) | (1,548) | (894) |
Impact of net unrealized investment gains (losses) | 377 | 23 | 761 | (606) |
Net unrealized investment gains (losses) excluding credit losses | (788) | (1,498) | (787) | (1,500) |
End of year | (788) | (1,499) | (788) | (1,499) |
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 | (414) | (1,034) | (1,065) | (189) |
Impact of net unrealized investment gains (losses) | 33 | (13) | 685 | (859) |
Net unrealized investment gains (losses) excluding credit losses | (381) | (1,047) | (380) | (1,048) |
End of year | (381) | (1,047) | (381) | (1,047) |
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 | (794) | (1,297) | (1,302) | (497) |
Impact of net unrealized investment gains (losses) | 31 | (74) | 539 | (875) |
Net unrealized investment gains (losses) excluding credit losses | (763) | (1,371) | (763) | (1,372) |
End of year | (763) | (1,371) | (763) | (1,371) |
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 | 2,988 | 4,876 | 4,896 | 1,873 |
Net investment gains (losses) arising during the period | (395) | 362 | (3,231) | 5,898 |
Included in net income (loss) | (165) | (21) | (747) | (273) |
Excluded from net income (loss) | 0 | 0 | 0 | 0 |
Other | 0 | (33) | ||
Impact of net unrealized investment gains (losses) | 441 | (64) | 1,985 | (2,340) |
Net unrealized investment gains (losses) excluding credit losses | 2,869 | 5,153 | 2,870 | 5,158 |
Net unrealized investment gains (losses) with credit losses | (1) | 2 | (2) | (3) |
End of year | 2,868 | 5,155 | 2,868 | 5,155 |
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 credit losses | 0 | (1) | (1) | 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 credit losses | 0 | 0 | (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 credit losses | $ 0 | $ 0 | $ 0 | $ 1 |
INVESTMENTS - Fixed Maturities
INVESTMENTS - Fixed Maturities Available-for-sale (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | $ 12,041 | $ 4,890 |
Less than 12 Months, Gross Unrealized Losses | 207 | 65 |
12 Months or Longer, Fair Value | 587 | 445 |
12 Months or Longer, Gross Unrealized Losses | 34 | 40 |
Total Fair Value | 12,628 | 5,335 |
Total Gross Unrealized Losses | 241 | 105 |
Corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 8,383 | 2,990 |
Less than 12 Months, Gross Unrealized Losses | 155 | 53 |
12 Months or Longer, Fair Value | 516 | 337 |
12 Months or Longer, Gross Unrealized Losses | 27 | 33 |
Total Fair Value | 8,899 | 3,327 |
Total Gross Unrealized Losses | 182 | 86 |
U.S. Treasury, government and agency | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 1,465 | 885 |
Less than 12 Months, Gross Unrealized Losses | 24 | 5 |
12 Months or Longer, Fair Value | 0 | 0 |
12 Months or Longer, Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 1,465 | 885 |
Total Gross Unrealized Losses | 24 | 5 |
States and political subdivisions | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 104 | |
Less than 12 Months, Gross Unrealized Losses | 2 | |
12 Months or Longer, Fair Value | 7 | |
12 Months or Longer, Gross Unrealized Losses | 1 | |
Total Fair Value | 111 | |
Total Gross Unrealized Losses | 3 | |
Foreign governments | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 380 | 153 |
Less than 12 Months, Gross Unrealized Losses | 11 | 2 |
12 Months or Longer, Fair Value | 42 | 21 |
12 Months or Longer, Gross Unrealized Losses | 6 | 4 |
Total Fair Value | 422 | 174 |
Total Gross Unrealized Losses | 17 | 6 |
Asset-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 818 | 809 |
Less than 12 Months, Gross Unrealized Losses | 3 | 4 |
12 Months or Longer, Fair Value | 20 | 76 |
12 Months or Longer, Gross Unrealized Losses | 0 | 1 |
Total Fair Value | 838 | 885 |
Total Gross Unrealized Losses | 3 | 5 |
Commercial mortgage-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 891 | |
Less than 12 Months, Gross Unrealized Losses | 12 | |
12 Months or Longer, Fair Value | 2 | |
12 Months or Longer, Gross Unrealized Losses | 0 | |
Total Fair Value | 893 | |
Total Gross Unrealized Losses | $ 12 | |
Redeemable Preferred Stock | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 53 | |
Less than 12 Months, Gross Unrealized Losses | 1 | |
12 Months or Longer, Fair Value | 11 | |
12 Months or Longer, Gross Unrealized Losses | 2 | |
Total Fair Value | 64 | |
Total Gross Unrealized Losses | $ 3 |
INVESTMENTS - Mortgage Loans (D
INVESTMENTS - Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | $ 81 | |||
Balance, end of period | $ 64 | $ 70 | 64 | $ 70 |
Commercial Mortgage Loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 59 | 62 | 77 | 33 |
Current-period provision for expected credit losses | 1 | 4 | (17) | 33 |
Write-offs charged against the allowance | 0 | 0 | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 | 0 |
Net change in allowance | 1 | 4 | (17) | 33 |
Balance, end of period | 60 | 66 | 60 | 66 |
Agricultural Mortgage Loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 4 | 4 | 4 | 3 |
Current-period provision for expected credit losses | 0 | 0 | 0 | 1 |
Write-offs charged against the allowance | 0 | 0 | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 | 0 |
Net change in allowance | 0 | 0 | 0 | 1 |
Balance, end of period | $ 4 | $ 4 | $ 4 | $ 4 |
INVESTMENTS - Credit Quality (D
INVESTMENTS - Credit Quality (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Commercial Mortgage Loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | $ 1,383 | $ 1,615 |
Fiscal year before current fiscal year | 1,586 | 814 |
Two years before current fiscal year | 803 | 1,267 |
Three years before current fiscal year | 1,266 | 1,204 |
Four years before current fiscal year | 1,096 | 2,580 |
Prior | 4,735 | 3,028 |
Total | 10,869 | 10,508 |
Non-accruing Loans | 0 | 0 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Commercial Mortgage Loans | Past Due | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 162 |
Commercial Mortgage Loans | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 162 |
Commercial Mortgage Loans | 60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial Mortgage Loans | 90 Days Or Greater | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial Mortgage Loans | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 10,869 | 10,346 |
Commercial Mortgage Loans | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 705 | 1,230 |
Fiscal year before current fiscal year | 1,276 | 492 |
Two years before current fiscal year | 328 | 772 |
Three years before current fiscal year | 772 | 268 |
Four years before current fiscal year | 408 | 1,959 |
Prior | 2,211 | 1,230 |
Total | 5,700 | 5,951 |
Commercial Mortgage Loans | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 132 | 227 |
Fiscal year before current fiscal year | 136 | 83 |
Two years before current fiscal year | 233 | 118 |
Three years before current fiscal year | 93 | 378 |
Four years before current fiscal year | 269 | 184 |
Prior | 385 | 329 |
Total | 1,248 | 1,319 |
Commercial Mortgage Loans | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 183 | 98 |
Fiscal year before current fiscal year | 115 | 138 |
Two years before current fiscal year | 167 | 187 |
Three years before current fiscal year | 223 | 479 |
Four years before current fiscal year | 166 | 437 |
Prior | 825 | 616 |
Total | 1,679 | 1,955 |
Commercial Mortgage Loans | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 64 | 60 |
Fiscal year before current fiscal year | 59 | 57 |
Two years before current fiscal year | 75 | 154 |
Three years before current fiscal year | 54 | 79 |
Four years before current fiscal year | 253 | 0 |
Prior | 838 | 658 |
Total | 1,343 | 1,008 |
Commercial Mortgage Loans | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 299 | 0 |
Fiscal year before current fiscal year | 0 | 44 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 88 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 255 | 123 |
Total | 642 | 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 |
Four years before current fiscal year | 0 | 0 |
Prior | 221 | 72 |
Total | 257 | 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 | 1 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 184 | 324 |
Four years before current fiscal year | 324 | 187 |
Prior | 927 | 505 |
Total | 1,436 | 1,016 |
Commercial Mortgage Loans | 0% - 50% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 877 | 856 |
Commercial Mortgage Loans | 0% - 50% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial Mortgage Loans | 0% - 50% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 390 | 160 |
Commercial Mortgage Loans | 0% - 50% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 31 | 0 |
Commercial Mortgage Loans | 0% - 50% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 40 | 0 |
Commercial Mortgage Loans | 0% - 50% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 98 | 0 |
Commercial Mortgage Loans | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 1,286 | 1,294 |
Fiscal year before current fiscal year | 1,265 | 357 |
Two years before current fiscal year | 390 | 803 |
Three years before current fiscal year | 619 | 656 |
Four years before current fiscal year | 492 | 2,190 |
Prior | 2,853 | 1,697 |
Total | 6,905 | 6,997 |
Commercial Mortgage Loans | 50% - 70% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 4,026 | 4,095 |
Commercial Mortgage Loans | 50% - 70% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 680 | 870 |
Commercial Mortgage Loans | 50% - 70% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 993 | 1,452 |
Commercial Mortgage Loans | 50% - 70% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 755 | 555 |
Commercial Mortgage Loans | 50% - 70% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 421 | 25 |
Commercial Mortgage Loans | 50% - 70% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 30 | 0 |
Commercial Mortgage Loans | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 97 | 321 |
Fiscal year before current fiscal year | 320 | 457 |
Two years before current fiscal year | 413 | 452 |
Three years before current fiscal year | 451 | 219 |
Four years before current fiscal year | 275 | 203 |
Prior | 748 | 538 |
Total | 2,304 | 2,190 |
Commercial Mortgage Loans | 70% - 90% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 797 | 844 |
Commercial Mortgage Loans | 70% - 90% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 568 | 449 |
Commercial Mortgage Loans | 70% - 90% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 210 | 343 |
Commercial Mortgage Loans | 70% - 90% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 492 | 376 |
Commercial Mortgage Loans | 70% - 90% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 181 | 142 |
Commercial Mortgage Loans | 70% - 90% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 56 | 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 |
Four years before current fiscal year | 5 | 0 |
Prior | 207 | 288 |
Total | 224 | 305 |
Commercial Mortgage Loans | 90% plus | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 156 |
Commercial Mortgage Loans | 90% plus | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial Mortgage Loans | 90% plus | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 86 | 0 |
Commercial Mortgage Loans | 90% plus | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 65 | 77 |
Commercial Mortgage Loans | 90% plus | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial Mortgage Loans | 90% plus | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 73 | 72 |
Agricultural Mortgage Loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 287 | 495 |
Fiscal year before current fiscal year | 485 | 264 |
Two years before current fiscal year | 235 | 333 |
Three years before current fiscal year | 265 | 259 |
Four years before current fiscal year | 221 | 360 |
Prior | 1,150 | 1,021 |
Total | 2,643 | 2,732 |
Non-accruing Loans | 0 | 0 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Agricultural Mortgage Loans | Past Due | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 77 | 112 |
Agricultural Mortgage Loans | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 8 | 76 |
Agricultural Mortgage Loans | 60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 3 | 7 |
Agricultural Mortgage Loans | 90 Days Or Greater | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 66 | 29 |
Agricultural Mortgage Loans | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 2,566 | 2,620 |
Agricultural Mortgage Loans | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 37 | 67 |
Fiscal year before current fiscal year | 66 | 26 |
Two years before current fiscal year | 25 | 36 |
Three years before current fiscal year | 16 | 38 |
Four years before current fiscal year | 33 | 71 |
Prior | 217 | 167 |
Total | 394 | 405 |
Agricultural Mortgage Loans | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 38 | 38 |
Fiscal year before current fiscal year | 37 | 35 |
Two years before current fiscal year | 26 | 14 |
Three years before current fiscal year | 21 | 15 |
Four years before current fiscal year | 14 | 20 |
Prior | 74 | 82 |
Total | 210 | 204 |
Agricultural Mortgage Loans | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 50 | 117 |
Fiscal year before current fiscal year | 114 | 38 |
Two years before current fiscal year | 29 | 41 |
Three years before current fiscal year | 28 | 45 |
Four years before current fiscal year | 44 | 52 |
Prior | 198 | 209 |
Total | 463 | 502 |
Agricultural Mortgage Loans | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 122 | 183 |
Fiscal year before current fiscal year | 180 | 120 |
Two years before current fiscal year | 114 | 141 |
Three years before current fiscal year | 117 | 90 |
Four years before current fiscal year | 73 | 142 |
Prior | 375 | 313 |
Total | 981 | 989 |
Agricultural Mortgage Loans | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 40 | 86 |
Fiscal year before current fiscal year | 84 | 35 |
Two years before current fiscal year | 32 | 93 |
Three years before current fiscal year | 78 | 70 |
Four years before current fiscal year | 56 | 57 |
Prior | 247 | 233 |
Total | 537 | 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 | 5 | 1 |
Four years before current fiscal year | 1 | 18 |
Prior | 39 | 17 |
Total | 58 | 58 |
Agricultural Mortgage Loans | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 113 | 218 |
Fiscal year before current fiscal year | 215 | 135 |
Two years before current fiscal year | 130 | 169 |
Three years before current fiscal year | 131 | 157 |
Four years before current fiscal year | 133 | 236 |
Prior | 774 | 652 |
Total | 1,496 | 1,567 |
Agricultural Mortgage Loans | 0% - 50% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 289 | 297 |
Agricultural Mortgage Loans | 0% - 50% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 98 | 108 |
Agricultural Mortgage Loans | 0% - 50% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 283 | 291 |
Agricultural Mortgage Loans | 0% - 50% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 501 | 520 |
Agricultural Mortgage Loans | 0% - 50% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 296 | 317 |
Agricultural Mortgage Loans | 0% - 50% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 29 | 34 |
Agricultural Mortgage Loans | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 174 | 277 |
Fiscal year before current fiscal year | 270 | 129 |
Two years before current fiscal year | 105 | 161 |
Three years before current fiscal year | 134 | 102 |
Four years before current fiscal year | 88 | 124 |
Prior | 359 | 351 |
Total | 1,130 | 1,144 |
Agricultural Mortgage Loans | 50% - 70% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 105 | 108 |
Agricultural Mortgage Loans | 50% - 70% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 110 | 94 |
Agricultural Mortgage Loans | 50% - 70% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 180 | 211 |
Agricultural Mortgage Loans | 50% - 70% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 480 | 450 |
Agricultural Mortgage Loans | 50% - 70% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 241 | 257 |
Agricultural Mortgage Loans | 50% - 70% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 14 | 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 | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 17 | 18 |
Total | 17 | 21 |
Agricultural Mortgage Loans | 70% - 90% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 2 | 2 |
Agricultural Mortgage Loans | 70% - 90% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 19 |
Agricultural Mortgage Loans | 70% - 90% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 70% - 90% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 15 | 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 |
Four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Agricultural Mortgage Loans | 90% plus | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Mortgages Loan | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 1,670 | 2,110 |
Fiscal year before current fiscal year | 2,071 | 1,078 |
Two years before current fiscal year | 1,038 | 1,600 |
Three years before current fiscal year | 1,531 | 1,463 |
Four years before current fiscal year | 1,317 | 2,940 |
Prior | 5,885 | 4,049 |
Total | 13,512 | 13,240 |
Non-accruing Loans | 0 | 0 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Mortgages Loan | Past Due | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 77 | 274 |
Mortgages Loan | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 8 | 238 |
Mortgages Loan | 60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 3 | 7 |
Mortgages Loan | 90 Days Or Greater | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 66 | 29 |
Mortgages Loan | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 13,435 | 12,966 |
Mortgages Loan | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 742 | 1,297 |
Fiscal year before current fiscal year | 1,342 | 518 |
Two years before current fiscal year | 353 | 808 |
Three years before current fiscal year | 788 | 306 |
Four years before current fiscal year | 441 | 2,030 |
Prior | 2,428 | 1,397 |
Total | 6,094 | 6,356 |
Mortgages Loan | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 170 | 265 |
Fiscal year before current fiscal year | 173 | 118 |
Two years before current fiscal year | 259 | 132 |
Three years before current fiscal year | 114 | 393 |
Four years before current fiscal year | 283 | 204 |
Prior | 459 | 411 |
Total | 1,458 | 1,523 |
Mortgages Loan | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 233 | 215 |
Fiscal year before current fiscal year | 229 | 176 |
Two years before current fiscal year | 196 | 228 |
Three years before current fiscal year | 251 | 524 |
Four years before current fiscal year | 210 | 489 |
Prior | 1,023 | 825 |
Total | 2,142 | 2,457 |
Mortgages Loan | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 186 | 243 |
Fiscal year before current fiscal year | 239 | 177 |
Two years before current fiscal year | 189 | 295 |
Three years before current fiscal year | 171 | 169 |
Four years before current fiscal year | 326 | 142 |
Prior | 1,213 | 971 |
Total | 2,324 | 1,997 |
Mortgages Loan | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 339 | 86 |
Fiscal year before current fiscal year | 84 | 79 |
Two years before current fiscal year | 32 | 93 |
Three years before current fiscal year | 166 | 70 |
Four years before current fiscal year | 56 | 57 |
Prior | 502 | 356 |
Total | 1,179 | 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 | 41 | 1 |
Four years before current fiscal year | 1 | 18 |
Prior | 260 | 89 |
Total | 315 | 166 |
Mortgages Loan | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 113 | 218 |
Fiscal year before current fiscal year | 216 | 135 |
Two years before current fiscal year | 130 | 169 |
Three years before current fiscal year | 315 | 481 |
Four years before current fiscal year | 457 | 423 |
Prior | 1,701 | 1,157 |
Total | 2,932 | 2,583 |
Mortgages Loan | 0% - 50% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1,166 | 1,153 |
Mortgages Loan | 0% - 50% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 98 | 108 |
Mortgages Loan | 0% - 50% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 673 | 451 |
Mortgages Loan | 0% - 50% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 532 | 520 |
Mortgages Loan | 0% - 50% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 336 | 317 |
Mortgages Loan | 0% - 50% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 127 | 34 |
Mortgages Loan | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 1,460 | 1,571 |
Fiscal year before current fiscal year | 1,535 | 486 |
Two years before current fiscal year | 495 | 964 |
Three years before current fiscal year | 753 | 758 |
Four years before current fiscal year | 580 | 2,314 |
Prior | 3,212 | 2,048 |
Total | 8,035 | 8,141 |
Mortgages Loan | 50% - 70% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 4,131 | 4,203 |
Mortgages Loan | 50% - 70% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 790 | 964 |
Mortgages Loan | 50% - 70% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1,173 | 1,663 |
Mortgages Loan | 50% - 70% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1,235 | 1,005 |
Mortgages Loan | 50% - 70% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 662 | 282 |
Mortgages Loan | 50% - 70% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 44 | 24 |
Mortgages Loan | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 97 | 321 |
Fiscal year before current fiscal year | 320 | 457 |
Two years before current fiscal year | 413 | 455 |
Three years before current fiscal year | 451 | 219 |
Four years before current fiscal year | 275 | 203 |
Prior | 765 | 556 |
Total | 2,321 | 2,211 |
Mortgages Loan | 70% - 90% | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 797 | 844 |
Mortgages Loan | 70% - 90% | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 570 | 451 |
Mortgages Loan | 70% - 90% | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 210 | 343 |
Mortgages Loan | 70% - 90% | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 492 | 395 |
Mortgages Loan | 70% - 90% | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 181 | 142 |
Mortgages Loan | 70% - 90% | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 71 | 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 |
Four years before current fiscal year | 5 | 0 |
Prior | 207 | 288 |
Total | 224 | 305 |
Mortgages Loan | 90% plus | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 156 |
Mortgages Loan | 90% plus | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Mortgages Loan | 90% plus | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 86 | 0 |
Mortgages Loan | 90% plus | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 65 | 77 |
Mortgages Loan | 90% plus | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Mortgages Loan | 90% plus | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | $ 73 | $ 72 |
INVESTMENTS - Equity Securities
INVESTMENTS - Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ (48) | $ (8) |
Net investment gains (losses) recognized on equity securities sold during the period | 43 | 47 |
Unrealized and realized gains (losses) on equity securities | $ (5) | $ 39 |
INVESTMENTS - Trading Securitie
INVESTMENTS - Trading Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ (57) | $ (13) | $ (303) | $ 88 |
Net investment gains (losses) recognized on securities sold during the period | 42 | 16 | 255 | 45 |
Unrealized and realized gains (losses) on trading securities | (15) | 3 | (48) | 133 |
Interest and dividend income from trading securities | 4 | 60 | 85 | 159 |
Net investment income (loss) from trading securities | $ (11) | $ 63 | $ 37 | $ 292 |
INVESTMENTS - Fixed Maturitie_2
INVESTMENTS - Fixed Maturities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ 9 | $ 7 |
Net investment gains (losses) recognized on securities sold during the period | 1 | 3 |
Unrealized and realized gains (losses) from fixed maturities | 10 | 10 |
Interest and dividend income from fixed maturities | 12 | 22 |
Net investment income (loss) from fixed maturities | $ 22 | $ 32 |
DERIVATIVES - Derivatives by Ca
DERIVATIVES - Derivatives by Category (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Designated for hedge accounting | Cash flow hedge | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 1,765 | $ 957 |
Derivative Assets | 8 | 0 |
Derivative Liabilities | 368 | 219 |
Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 87,358 | 106,131 |
Derivative Assets | 10,697 | 9,244 |
Derivative Liabilities | 10,866 | 8,095 |
Currency Swap | Designated for hedge accounting | Cash flow hedge | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 807 | 0 |
Derivative Assets | 8 | 0 |
Derivative Liabilities | 33 | 0 |
Currency Swap | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 516 | 411 |
Derivative Assets | 3 | 9 |
Derivative Liabilities | 0 | 9 |
Swaps | Designated for hedge accounting | Cash flow hedge | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 958 | 957 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 335 | 219 |
Swaps | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,875 | 22,877 |
Derivative Assets | 0 | 553 |
Derivative Liabilities | 243 | 437 |
Futures | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,518 | 4,881 |
Derivative Assets | 2 | 0 |
Derivative Liabilities | 0 | 2 |
Swaps | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 12,907 | 22,456 |
Derivative Assets | 5 | 6 |
Derivative Liabilities | 0 | 2 |
Options | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 55,487 | 35,848 |
Derivative Assets | 10,401 | 8,396 |
Derivative Liabilities | 4,509 | 3,726 |
Futures | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 11,079 | 18,571 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Swaptions | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Credit default swaps | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 902 | 1,087 |
Derivative Assets | 10 | 19 |
Derivative Liabilities | 10 | 14 |
Currency forwards | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 74 | 0 |
Derivative Assets | 8 | 0 |
Derivative Liabilities | 7 | 0 |
Margin | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 111 | 49 |
Derivative Liabilities | 0 | 66 |
Collateral | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 157 | 212 |
Derivative Liabilities | 6,097 | 3,839 |
Amounts due from reinsurers | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 5,869 | 0 |
Derivative Liabilities | 0 | 0 |
GMIB Reinsurance Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 1,937 | 2,488 |
Derivative Liabilities | 0 | 0 |
GMxB Derivative Features’ Liability | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 8,938 | 11,131 |
SCS, SIO, MSO and IUL Indexed Features | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 5,565 | 4,509 |
Embedded derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 7,806 | 2,488 |
Derivative Liabilities | 14,503 | 15,640 |
Derivative instruments including embedded derivative | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 89,123 | 107,088 |
Derivative Assets | 18,511 | 11,732 |
Derivative Liabilities | $ 25,737 | $ 23,954 |
DERIVATIVES - Financial Stateme
DERIVATIVES - Financial Statement Impact of Derivatives By Category (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | $ (185) | $ (1,472) | $ (3,930) | $ 1,890 |
Net Investment Income | 997 | 879 | 2,914 | 2,530 |
Interest credited to policyholders’ account balances | (305) | (306) | (905) | (930) |
Amounts due from reinsurers | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 344 | 0 | 586 | 0 |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
GMIB Reinsurance Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (84) | (102) | (542) | 737 |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
GMxB Derivative Features’ Liability | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (395) | 579 | 2,340 | (3,421) |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Settlement fee | 45 | |||
SCS, SIO, MSO and IUL Indexed Features | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 172 | (1,000) | (2,157) | 414 |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Embedded derivatives | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 37 | (523) | 227 | (2,270) |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Derivative instruments including embedded derivative | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (185) | (1,472) | (3,975) | 1,891 |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | (15) | 0 | (32) | 0 |
AOCI | (1) | (65) | (34) | (64) |
Not designated for hedge accounting | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (196) | (937) | (4,148) | 4,165 |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not designated for hedge accounting | Currency Swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 3 | 0 | 3 | 0 |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not designated for hedge accounting | Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 67 | (59) | (2,375) | 3,592 |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not designated for hedge accounting | Futures | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (2) | (208) | (451) | (401) |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not designated for hedge accounting | Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (3) | (1,563) | (2,613) | (604) |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not designated for hedge accounting | Options | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (169) | 909 | 2,177 | (481) |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not designated for hedge accounting | Futures | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (93) | (16) | (891) | 2,051 |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not designated for hedge accounting | Swaptions | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | 0 | 9 |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not designated for hedge accounting | Credit default swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 1 | 0 | 2 |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not designated for hedge accounting | Currency forwards | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 1 | (1) | 2 | (3) |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not designated for hedge accounting | Margin | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Not designated for hedge accounting | Collateral | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 | 0 |
Cash flow hedge | Designated for hedge accounting | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (26) | (12) | (54) | (4) |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | (15) | 0 | (32) | 0 |
AOCI | (1) | (65) | (34) | (64) |
Cash flow hedge | Designated for hedge accounting | Currency Swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | ||
Net Investment Income | 0 | 0 | ||
Interest credited to policyholders’ account balances | (15) | (32) | ||
AOCI | 8 | 8 | ||
Cash flow hedge | Designated for hedge accounting | Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (26) | (12) | (54) | (4) |
Net Investment Income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | $ (9) | $ (65) | $ (42) | $ (64) |
DERIVATIVES - Rollforward for C
DERIVATIVES - Rollforward for Cash Flows Hedges in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | $ 15,576 | |||
Ending Balance, September 30 | $ 11,680 | 11,680 | ||
Cash flow hedges recognized in AOCI | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (158) | $ 1 | (126) | $ (38) |
Amount recorded in AOCI | (33) | (81) | (111) | (46) |
Amount reclassified from AOCI to income | 31 | 16 | 77 | 20 |
Ending Balance, September 30 | (160) | (64) | (160) | (64) |
Cash flow hedges recognized in AOCI | Currency Swap | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amount recorded in AOCI | 7 | 0 | 7 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 | 0 |
Cash flow hedges recognized in AOCI | Interest Swaps | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amount recorded in AOCI | (40) | (81) | (118) | (46) |
Amount reclassified from AOCI to income | $ 31 | $ 16 | $ 77 | $ 20 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Cash and securities collateral for derivative contract | $ 6,100 | $ 3,800 |
Cash and securities collateral | 157 | 212 |
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | ||
Derivative [Line Items] | ||
Initial margin requirement | 169 | 307 |
Us Treasury Notes Ultra Long Bonds And Euro Dollar | ||
Derivative [Line Items] | ||
Initial margin requirement | 118 | 264 |
Euro Stoxx, FTSE100, Topix, ASX200 and EAFE Indices | ||
Derivative [Line Items] | ||
Initial margin requirement | $ 16 | $ 35 |
DERIVATIVES - Offsetting of Fin
DERIVATIVES - Offsetting of Financial Assets and Liabilities and Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Derivatives | ||
Assets | ||
Gross Amount Recognized | $ 10,707 | $ 9,244 |
Gross Amount Offset in the Balance Sheets | 9,774 | 8,249 |
Net Amount Presented in the Balance Sheets | 933 | 995 |
Gross Amount not Offset in the Balance Sheets | (817) | (53) |
Net Amount | 116 | 942 |
Liabilities | ||
Gross Amount Recognized | 10,418 | 8,261 |
Gross Amount Offset in the Balance Sheets | 9,774 | 8,249 |
Net Amount Presented in the Balance Sheets | 644 | 12 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 644 | 12 |
Other financial assets | ||
Assets | ||
Gross Amount Recognized | 1,727 | 1,733 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 1,727 | 1,733 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 1,727 | 1,733 |
Other invested assets | ||
Assets | ||
Gross Amount Recognized | 12,434 | 10,977 |
Gross Amount Offset in the Balance Sheets | 9,774 | 8,249 |
Net Amount Presented in the Balance Sheets | 2,660 | 2,728 |
Gross Amount not Offset in the Balance Sheets | (817) | (53) |
Net Amount | 1,843 | 2,675 |
Other financial liabilities | ||
Liabilities | ||
Gross Amount Recognized | 4,699 | 3,674 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 4,699 | 3,674 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 4,699 | 3,674 |
Other liabilities | ||
Liabilities | ||
Gross Amount Recognized | 15,117 | 11,935 |
Gross Amount Offset in the Balance Sheets | 9,774 | 8,249 |
Net Amount Presented in the Balance Sheets | 5,343 | 3,686 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | $ 5,343 | $ 3,686 |
CLOSED BLOCK - Closed Block Sum
CLOSED BLOCK - Closed Block Summarized Financial Information (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Closed Block Liabilities: | ||||||
Future policy benefits, policyholders’ account balances and other | $ 6,022 | $ 6,201 | ||||
Policyholder dividend obligation | 25 | $ 72 | 160 | $ 2 | $ 2 | $ 2 |
Other liabilities | 40 | 39 | ||||
Total Closed Block liabilities | 6,087 | 6,400 | ||||
Assets Designated to the Closed Block: | ||||||
Fixed maturities AFS, at fair value (amortized cost of $3,283 and $3,359) (allowance for credit losses of $0) | 3,537 | 3,718 | ||||
Mortgage loans on real estate (net of allowance for credit losses of $5 and $6) | 1,770 | 1,773 | ||||
Policy loans | 615 | 648 | ||||
Cash and other invested assets | 18 | 28 | ||||
Other assets | 98 | 169 | ||||
Total assets designated to the Closed Block | 6,038 | 6,336 | ||||
Excess of Closed Block liabilities over assets designated to the Closed Block | 49 | 64 | ||||
Amounts included in AOCI: | ||||||
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $25 and $160; and net of income tax: $(48) and $(42) | 191 | 167 | ||||
Maximum future earnings to be recognized from Closed Block assets and liabilities | 240 | 231 | ||||
Fixed maturity available for sale, amortized cost | 3,283 | 3,359 | ||||
Fixed maturities available-for-sale, allowance for credit losses | 0 | 0 | ||||
Mortgage loans, credit losses | 5 | 6 | ||||
Policyholder dividend obligation | 25 | $ 72 | 160 | $ 2 | $ 2 | $ 2 |
Closed block operations, income taxes | $ (48) | $ (42) |
CLOSED BLOCK - Closed Block Rev
CLOSED BLOCK - Closed Block Revenues and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | ||||
Premiums and other income | $ 33 | $ 36 | $ 109 | $ 118 |
Net investment income (loss) | 59 | 61 | 179 | 190 |
Investment gains (losses), net | 0 | 1 | 2 | (1) |
Total revenues | 92 | 98 | 290 | 307 |
Benefits and Other Deductions: | ||||
Policyholders’ benefits and dividends | 108 | 96 | 304 | 302 |
Other operating costs and expenses | 2 | 0 | 3 | 1 |
Total benefits and other deductions | 110 | 96 | 307 | 303 |
Net income (loss), before income taxes | (18) | 2 | (17) | 4 |
Income tax (expense) benefit | (2) | (1) | (3) | (2) |
Net income (loss) | $ (20) | $ 1 | $ (20) | $ 2 |
CLOSED BLOCK - Reconciliation o
CLOSED BLOCK - Reconciliation of Policyholder Dividend Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Movement in Closed Block Dividend Obligation [Roll Forward] | ||||
Beginning balance | $ 72 | $ 2 | $ 160 | $ 2 |
Unrealized investment gains (losses) | (47) | 0 | (135) | 0 |
Ending balance | $ 25 | $ 2 | $ 25 | $ 2 |
INSURANCE LIABILITIES - Rollfor
INSURANCE LIABILITIES - Rollforward of Liability and Reinsurance Ceded (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
GMDB Direct | ||||||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||||||
Opening Balance | $ 4,982 | $ 5,116 | $ 4,982 | $ 5,116 | $ 5,091 | $ 5,097 | $ 5,004 | $ 4,780 |
Paid guarantee benefits | (103) | (121) | (350) | (372) | ||||
Other changes in reserves | (6) | 233 | 235 | 708 | ||||
Impact of the Venerable transaction | 0 | 0 | ||||||
Closing Balance | 4,982 | 5,116 | 4,982 | 5,116 | 5,091 | 5,097 | 5,004 | 4,780 |
GMDB Assumed | ||||||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||||||
Opening Balance | 0 | 68 | 0 | 68 | 0 | 72 | 70 | 76 |
Paid guarantee benefits | 0 | (6) | (12) | (16) | ||||
Other changes in reserves | 0 | 4 | 14 | 8 | ||||
Impact of the Venerable transaction | 0 | (74) | ||||||
Closing Balance | 0 | 68 | 0 | 68 | 0 | 72 | 70 | 76 |
GMDB Ceded | ||||||||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||||||||
Opening Balance | (2,262) | (105) | (88) | (104) | ||||
Paid guarantee benefits | 41 | 3 | 64 | 11 | ||||
Other changes in reserve | 2 | 10 | (19) | 1 | ||||
Impact of the Venerable transaction | 0 | (2,176) | ||||||
Ending Balance | (2,219) | (92) | (2,219) | (92) | ||||
GMIB Direct | ||||||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||||||
Opening Balance | 5,949 | 6,125 | 5,949 | 6,125 | 5,905 | 6,026 | 6,122 | 4,673 |
Paid guarantee benefits | (87) | (110) | (271) | (287) | ||||
Other changes in reserves | 131 | 113 | 194 | 1,739 | ||||
Impact of the Venerable transaction | 0 | 0 | ||||||
Closing Balance | 5,949 | 6,125 | 5,949 | 6,125 | 5,905 | 6,026 | 6,122 | 4,673 |
GMIB Assumed | ||||||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||||||
Opening Balance | 0 | 220 | 0 | 220 | 0 | 196 | 232 | 187 |
Paid guarantee benefits | 0 | (9) | (49) | 39 | ||||
Other changes in reserves | 0 | (3) | (7) | (6) | ||||
Impact of the Venerable transaction | 0 | (140) | ||||||
Closing Balance | 0 | 220 | 0 | 220 | $ 0 | $ 196 | $ 232 | $ 187 |
GMIB Ceded | ||||||||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||||||||
Opening Balance | (4,168) | (2,931) | (2,488) | (2,139) | ||||
Paid guarantee benefits | 16 | 21 | 41 | 58 | ||||
Other changes in reserve | 89 | 92 | 525 | (737) | ||||
Impact of the Venerable transaction | 0 | (2,141) | ||||||
Ending Balance | $ (4,063) | $ (2,818) | $ (4,063) | $ (2,818) |
INSURANCE LIABILITIES - Variabl
INSURANCE LIABILITIES - Variable Annuity Contracts with GMDB and GMIB Features and Buybacks (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate Accounts | $ 104,026 | $ 100,520 |
GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate Accounts | 61,822 | $ 61,186 |
Direct Variable Annuity | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 16,336 | |
Separate Accounts | 104,026 | |
Total Account Values | 120,362 | |
NAR, gross | 18,100 | |
NAR, net of amounts reinsured | $ 9,582 | |
Average attained age of contract holders (in years) | 55 years 4 months 24 days | |
Percentage of policyholders over age 70 | 20.70% | |
Direct Variable Annuity | GMDB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Direct Variable Annuity | GMDB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Direct Variable Annuity | GMDB | Return of Premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 16,038 | |
Separate Accounts | 57,196 | |
Total Account Values | 73,234 | |
NAR, gross | 106 | |
NAR, net of amounts reinsured | $ 103 | |
Average attained age of contract holders (in years) | 51 years 6 months | |
Percentage of policyholders over age 70 | 11.60% | |
Direct Variable Annuity | GMDB | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 85 | |
Separate Accounts | 9,643 | |
Total Account Values | 9,728 | |
NAR, gross | 80 | |
NAR, net of amounts reinsured | $ 72 | |
Average attained age of contract holders (in years) | 68 years 10 months 24 days | |
Percentage of policyholders over age 70 | 50.50% | |
Direct Variable Annuity | GMDB | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 52 | |
Separate Accounts | 3,325 | |
Total Account Values | 3,377 | |
NAR, gross | 1,441 | |
NAR, net of amounts reinsured | $ 1,013 | |
Average attained age of contract holders (in years) | 75 years 4 months 24 days | |
Percentage of policyholders over age 70 | 72.00% | |
Direct Variable Annuity | GMDB | Roll-Up | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Direct Variable Annuity | GMDB | Roll-Up | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.00% | |
Direct Variable Annuity | GMDB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 161 | |
Separate Accounts | 33,862 | |
Total Account Values | 34,023 | |
NAR, gross | 16,473 | |
NAR, net of amounts reinsured | $ 8,394 | |
Average attained age of contract holders (in years) | 70 years 10 months 24 days | |
Percentage of policyholders over age 70 | 56.70% | |
Direct Variable Annuity | GMDB | Combo | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Direct Variable Annuity | GMDB | Combo | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Direct Variable Annuity | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 225 | |
Separate Accounts | 61,822 | |
Total Account Values | 62,047 | |
NAR, gross | 10,185 | |
NAR, net of amounts reinsured | $ 4,119 | |
Average attained age of contract holders (in years) | 68 years 6 months | |
Weighted average years remaining until annuitization (in years) | 2 years 7 months 6 days | |
Direct Variable Annuity | GMIB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Direct Variable Annuity | GMIB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Direct Variable Annuity | GMIB | Return of Premium | ||
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 | |
Direct Variable Annuity | GMIB | Ratchet | ||
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 | |
Direct Variable Annuity | GMIB | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 15 | |
Separate Accounts | 25,670 | |
Total Account Values | 25,685 | |
NAR, gross | 693 | |
NAR, net of amounts reinsured | $ 223 | |
Average attained age of contract holders (in years) | 64 years 9 months 18 days | |
Weighted average years remaining until annuitization (in years) | 5 years 10 months 24 days | |
Direct Variable Annuity | GMIB | Roll-Up | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Direct Variable Annuity | GMIB | Roll-Up | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.00% | |
Direct Variable Annuity | GMIB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 210 | |
Separate Accounts | 36,152 | |
Total Account Values | 36,362 | |
NAR, gross | 9,492 | |
NAR, net of amounts reinsured | $ 3,896 | |
Average attained age of contract holders (in years) | 70 years 8 months 12 days | |
Weighted average years remaining until annuitization (in years) | 7 months 6 days | |
Direct Variable Annuity | GMIB | Combo | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3.00% | |
Direct Variable Annuity | GMIB | Combo | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% |
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 | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
GMDB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | $ 104,026 | $ 104,026 | $ 100,520 | ||
GMIB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 61,822 | 61,822 | 61,186 | ||
Direct Liabilities For Guarantees | |||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||||
Opening Balance | 1,070 | $ 948 | 1,022 | $ 898 | |
Paid guarantee benefits | (24) | (6) | (52) | (32) | |
Other changes in reserves | 38 | 60 | 114 | 136 | |
Closing Balance | 1,084 | $ 1,002 | 1,084 | $ 1,002 | |
Equity | GMDB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 50,060 | 50,060 | 46,850 | ||
Equity | GMIB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 19,264 | 19,264 | 18,771 | ||
Fixed income | GMDB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 5,453 | 5,453 | 5,506 | ||
Fixed income | GMIB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 2,570 | 2,570 | 2,701 | ||
Balanced | GMDB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 47,475 | 47,475 | 47,053 | ||
Balanced | GMIB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 39,723 | 39,723 | 39,439 | ||
Other | GMDB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 1,038 | 1,038 | 1,111 | ||
Other | GMIB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | $ 265 | $ 265 | $ 275 |
REINSURANCE - Effects of Reinsu
REINSURANCE - Effects of Reinsurance (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Premiums | ||||
Direct premiums | $ 250 | $ 214 | $ 733 | $ 698 |
Reinsurance assumed | 43 | 50 | 144 | 167 |
Reinsurance ceded | (63) | (43) | (148) | (111) |
Premiums | 230 | 221 | 729 | 754 |
Direct charges and fee income | 1,051 | 1,016 | 3,177 | 3,098 |
Reinsurance ceded | (184) | (102) | (422) | (311) |
Policy charges and fee income | 867 | 914 | 2,755 | 2,787 |
Direct policyholders’ benefits | 862 | 1,115 | 2,935 | 4,882 |
Reinsurance assumed | 55 | 54 | 173 | 189 |
Reinsurance ceded | (166) | (135) | (590) | (525) |
Policyholders’ benefits | 751 | 1,034 | 2,518 | 4,546 |
Direct interest credited to policyholders’ account balances | 307 | 306 | 934 | 942 |
Reinsurance ceded | (2) | 0 | (29) | (12) |
Interest credited to policyholders’ account balances | $ 305 | $ 306 | $ 905 | $ 930 |
REINSURANCE - Additional Inform
REINSURANCE - Additional Information (Details) - Non Affiliated Entity | Sep. 30, 2021 | Dec. 31, 2020 |
GMDB | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Exposure reinsured percentage | 47.10% | 2.60% |
GMIB | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Exposure reinsured percentage | 59.60% | 13.40% |
REINSURANCE - Ceded Reinsurance
REINSURANCE - Ceded Reinsurance (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Estimated net fair values of ceded GMIB reinsurance contracts, considered derivatives | $ 1,937 | $ 1,937 | $ 2,488 | ||
Amount due to reinsurers | 1,466 | 1,466 | 1,381 | ||
Increase (decrease) in the fair value of the reinsurance contracts | (89) | $ (551) | (113) | $ 679 | |
Group Life And Health Insurance | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Reinsurance assumed reserves | 166 | 166 | 788 | ||
Group Life And Health Insurance | GMIB | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Reinsurance assumed reserves | 0 | 0 | 195 | ||
Venerable Insurance and Annuity Company | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Reinsurance recoverables related to insurance contracts | 10,395 | 10,395 | |||
Amount due to reinsurers | 129 | 129 | |||
Zurich Life Insurance Company, Ltd. | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Reinsurance recoverables related to insurance contracts | 1,340 | 1,340 | 1,421 | ||
Protective Life Insurance Company | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Reinsurance recoverables related to insurance contracts | 1,146 | 1,146 | 1,184 | ||
Amount due to reinsurers | 111 | 111 | 116 | ||
RGA Reinsurance Company | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Reinsurance recoverables related to insurance contracts | 1,146 | 1,146 | 1,143 | ||
Amount due to reinsurers | 1,225 | 1,225 | 1,135 | ||
Non Affiliated Entity | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Reinsurance recoverables related to insurance contracts | $ 14,801 | $ 14,801 | $ 4,566 |
FAIR VALUE DISCLOSURES - Assets
FAIR VALUE DISCLOSURES - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Investments: | |||
Fixed maturities, AFS at fair value | $ 76,968 | $ 81,638 | |
Fixed maturities, at fair value using the fair value option | [1] | 1,334 | 389 |
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | [1] | 1,190 | 313 |
Accrued interest payable for notes issued by consolidated variable interest entity | (3) | 1 | |
Carrying Value | Collateralized Loan Obligations | |||
Liabilities: | |||
Short-term debt | 1 | ||
U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities, AFS at fair value | 15,253 | 16,118 | |
State and Political Subdivisions | |||
Investments: | |||
Fixed maturities, AFS at fair value | 637 | 635 | |
Foreign governments | |||
Investments: | |||
Fixed maturities, AFS at fair value | 1,003 | 1,103 | |
Residential mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 106 | 143 | |
Asset-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 5,584 | 3,611 | |
Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 1,879 | 1,203 | |
Redeemable Preferred Stock | |||
Investments: | |||
Fixed maturities, AFS at fair value | 54 | 666 | |
Recurring | |||
Investments: | |||
Fixed maturities, AFS at fair value | 76,968 | 81,638 | |
Fixed maturities, at fair value using the fair value option | 1,334 | 389 | |
Other equity investments | 853 | 84 | |
Trading securities, at fair value | 584 | 5,553 | |
Other invested assets: | 5,620 | 4,994 | |
Cash equivalents | 3,437 | 4,606 | |
Segregated securities | 909 | 1,753 | |
Amounts due from reinsurer | 5,869 | ||
GMIB reinsurance contracts asset | 1,937 | 2,488 | |
Separate Accounts assets | 141,468 | 135,373 | |
Total Assets | 238,979 | 236,878 | |
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 1,187 | ||
Contingent payment arrangements | 38 | 28 | |
Total Liabilities | 15,749 | 15,988 | |
Recurring | Other liabilities | |||
Investments: | |||
Other equity investments | 29 | ||
Recurring | Corporate | |||
Investments: | |||
Fixed maturities, AFS at fair value | 52,452 | 58,159 | |
Recurring | U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities, AFS at fair value | 15,253 | 16,118 | |
Recurring | State and Political Subdivisions | |||
Investments: | |||
Fixed maturities, AFS at fair value | 637 | 635 | |
Recurring | Foreign governments | |||
Investments: | |||
Fixed maturities, AFS at fair value | 1,003 | 1,103 | |
Recurring | Residential mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 106 | 143 | |
Recurring | Asset-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 5,584 | 3,611 | |
Recurring | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 1,879 | 1,203 | |
Recurring | Redeemable Preferred Stock | |||
Investments: | |||
Fixed maturities, AFS at fair value | 54 | 666 | |
Recurring | Short-term investments | |||
Investments: | |||
Other invested assets: | 30 | 102 | |
Recurring | Assets of consolidated VIEs/VOEs | |||
Investments: | |||
Other invested assets: | 291 | 318 | |
Recurring | Swap | |||
Investments: | |||
Other invested assets: | (595) | (99) | |
Recurring | Credit default swaps | |||
Investments: | |||
Other invested assets: | 0 | 5 | |
Recurring | Future | |||
Investments: | |||
Other invested assets: | 2 | (2) | |
Recurring | Options | |||
Investments: | |||
Other invested assets: | 5,892 | 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 | 8,938 | 11,131 | |
Recurring | SCS, SIO, MSO and IUL indexed features liability | |||
Liabilities: | |||
Guarantees | 5,565 | 4,509 | |
Recurring | Level 1 | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 404 | |
Fixed maturities, at fair value using the fair value option | 0 | 0 | |
Other equity investments | 433 | 13 | |
Trading securities, at fair value | 332 | 441 | |
Other invested assets: | 64 | 72 | |
Cash equivalents | 3,168 | 4,309 | |
Segregated securities | 0 | 0 | |
Amounts due from reinsurer | 0 | ||
GMIB reinsurance contracts asset | 0 | 0 | |
Separate Accounts assets | 138,906 | 132,698 | |
Total Assets | 142,903 | 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 | 18 | 2 | |
Recurring | Level 1 | Corporate | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | State and Political Subdivisions | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | Foreign governments | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | Residential mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | Asset-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | Redeemable Preferred Stock | |||
Investments: | |||
Fixed maturities, AFS 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: | 62 | 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: | 2 | (2) | |
Recurring | Level 1 | Options | |||
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, AFS at fair value | 75,463 | 79,473 | |
Fixed maturities, at fair value using the fair value option | 1,152 | 309 | |
Other equity investments | 415 | 0 | |
Trading securities, at fair value | 213 | 5,073 | |
Other invested assets: | 5,545 | 4,908 | |
Cash equivalents | 269 | 297 | |
Segregated securities | 909 | 1,753 | |
Amounts due from reinsurer | 0 | ||
GMIB reinsurance contracts asset | 0 | 0 | |
Separate Accounts assets | 2,562 | 2,674 | |
Total Assets | 86,528 | 94,487 | |
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 1,187 | ||
Contingent payment arrangements | 0 | 0 | |
Total Liabilities | 6,755 | 4,827 | |
Recurring | Level 2 | Corporate | |||
Investments: | |||
Fixed maturities, AFS at fair value | 50,999 | 56,457 | |
Recurring | Level 2 | U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities, AFS at fair value | 15,253 | 16,118 | |
Recurring | Level 2 | State and Political Subdivisions | |||
Investments: | |||
Fixed maturities, AFS at fair value | 600 | 596 | |
Recurring | Level 2 | Foreign governments | |||
Investments: | |||
Fixed maturities, AFS at fair value | 1,003 | 1,103 | |
Recurring | Level 2 | Residential mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 106 | 143 | |
Recurring | Level 2 | Asset-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 5,579 | 3,591 | |
Recurring | Level 2 | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 1,869 | 1,203 | |
Recurring | Level 2 | Redeemable Preferred Stock | |||
Investments: | |||
Fixed maturities, AFS at fair value | 54 | 262 | |
Recurring | Level 2 | Short-term investments | |||
Investments: | |||
Other invested assets: | 30 | 101 | |
Recurring | Level 2 | Assets of consolidated VIEs/VOEs | |||
Investments: | |||
Other invested assets: | 218 | 231 | |
Recurring | Level 2 | Swap | |||
Investments: | |||
Other invested assets: | (595) | (99) | |
Recurring | Level 2 | Credit default swaps | |||
Investments: | |||
Other invested assets: | 0 | 5 | |
Recurring | Level 2 | Future | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 2 | Options | |||
Investments: | |||
Other invested assets: | 5,892 | 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 | 5,565 | 4,509 | |
Recurring | Level 3 | |||
Investments: | |||
Fixed maturities, AFS at fair value | 1,505 | 1,761 | |
Fixed maturities, at fair value using the fair value option | 182 | 80 | |
Other equity investments | 5 | 71 | |
Trading securities, at fair value | 39 | 39 | |
Other invested assets: | 11 | 14 | |
Cash equivalents | 0 | 0 | |
Segregated securities | 0 | 0 | |
Amounts due from reinsurer | 5,869 | ||
GMIB reinsurance contracts asset | 1,937 | 2,488 | |
Separate Accounts assets | 0 | 1 | |
Total Assets | 9,548 | 4,454 | |
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 0 | ||
Contingent payment arrangements | 38 | 28 | |
Total Liabilities | 8,976 | 11,159 | |
Recurring | Level 3 | Corporate | |||
Investments: | |||
Fixed maturities, AFS at fair value | 1,453 | 1,702 | |
Recurring | Level 3 | U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 3 | State and Political Subdivisions | |||
Investments: | |||
Fixed maturities, AFS at fair value | 37 | 39 | |
Recurring | Level 3 | Foreign governments | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 3 | Residential mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 3 | Asset-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 5 | 20 | |
Recurring | Level 3 | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 10 | 0 | |
Recurring | Level 3 | Redeemable Preferred Stock | |||
Investments: | |||
Fixed maturities, AFS 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 | |||
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 | 8,938 | 11,131 | |
Recurring | Level 3 | SCS, SIO, MSO and IUL indexed features liability | |||
Liabilities: | |||
Guarantees | 0 | 0 | |
Recurring | NAV | |||
Investments: | |||
Separate Accounts assets | 379 | 356 | |
Variable Interest Entity, Primary Beneficiary | Recurring | |||
Liabilities: | |||
Guarantees | 21 | 8 | |
Variable Interest Entity, Primary Beneficiary | Recurring | Level 1 | |||
Liabilities: | |||
Guarantees | 18 | 2 | |
Variable Interest Entity, Primary Beneficiary | Recurring | Level 2 | |||
Liabilities: | |||
Guarantees | 3 | 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 | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Fair value adjustments on GMIB asset | $ 89 | $ 102 | |
Fair value adjustments on GMIB liability | 0 | 19 | |
Fair value adjustments on amounts due from reinsurers | 195 | ||
AFS fixed maturities transferred from Level 3 to Level 2 | 782 | $ 103 | |
AFS fixed maturities transferred from Level 2 to Level 3 | $ 1 | $ 195 | |
Fair value measurement with unobservable inputs reconciliation recurring basis asset transfers percentage | 5.90% | 1.60% | |
Nonrecurring | Level 3 | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Investments, fair value disclosure | $ 673 | $ 743 |
FAIR VALUE DISCLOSURES - Fair V
FAIR VALUE DISCLOSURES - Fair Value Measurement Reconciliation for All Levels (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Total gains (losses), realized and unrealized, included in: | ||||
Transfers into level 3 | $ 1 | $ 195 | ||
Transfers out of level 3 | (782) | (103) | ||
GMxB derivative features’ liability | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Settlement fee | 45 | |||
Corporate | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | $ 1,261 | $ 1,685 | 1,702 | 1,257 |
Net investment income (loss) | 1 | 0 | 4 | 2 |
Investment gains (losses), net | (2) | (1) | (14) | (14) |
Total realized and unrealized gains (losses) | (1) | (1) | (10) | (12) |
Other comprehensive income (loss) | 4 | 18 | 30 | (36) |
Purchases | 262 | (155) | 721 | 207 |
Sales | (71) | (24) | (277) | (114) |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | (2) | (29) | 0 | 195 |
Transfers out of level 3 | 0 | 0 | (713) | (3) |
Ending Balance | 1,453 | 1,494 | 1,453 | 1,494 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 4 | 18 | 30 | (36) |
State and Political Subdivisions | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 37 | 40 | 39 | 39 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (1) | (1) | (2) | 1 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | (1) | (1) |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 36 | 39 | 36 | 39 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | (1) | (1) | (2) | 1 |
Asset-backed | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 128 | 0 | 20 | 100 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | (121) | 13 | 3 | 13 |
Sales | (2) | 0 | (18) | 0 |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 0 | (100) |
Ending Balance | 5 | 13 | 5 | 13 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
CMBS | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 10 | 0 | 0 | 0 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 10 | 0 |
Sales | 0 | 0 | 0 | 0 |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 10 | 0 | 10 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Trading Securities, at Fair Value | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 39 | 37 | 39 | 37 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 0 | 15 | 0 | 15 |
Sales | 0 | 0 | 0 | 0 |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 39 | 52 | 39 | 52 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Fixed maturities, at FVO | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 148 | 0 | 80 | 0 |
Net investment income (loss) | (7) | 0 | 4 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | (7) | 0 | 4 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases | 62 | 0 | 192 | 0 |
Sales | (17) | 0 | (26) | 0 |
Activity related to consolidated VIEs/VOEs | 0 | |||
Transfers into level 3 | (14) | 0 | 1 | 0 |
Transfers out of level 3 | 10 | 0 | (69) | 0 |
Ending Balance | 182 | 0 | 182 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 9 | 0 | 4 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Other Equity Investments | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 103 | 95 | 84 | 113 |
Net investment income (loss) | 1 | 3 | 20 | (7) |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 1 | 3 | 20 | (7) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 1 | 5 | 4 | 10 |
Sales | (91) | (15) | (92) | (26) |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | |||
Change in estimate | 0 | |||
Activity related to consolidated VIEs/VOEs | 1 | (2) | (1) | (4) |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 15 | 86 | 15 | 86 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 1 | 1 | 2 | (8) |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
GMIB Reinsurance Contract Asset | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Non-performance Risk | 5 | 6 | ||
GMIB Reinsurance Contract Asset | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 2,026 | 2,931 | 2,488 | 2,139 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | (84) | (103) | (542) | 736 |
Total realized and unrealized gains (losses) | (84) | (103) | (542) | 736 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 11 | 11 | 32 | 33 |
Sales | (16) | (21) | (41) | (58) |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | |||
Change in estimate | (32) | |||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 1,937 | 2,818 | 1,937 | 2,818 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | (84) | (103) | (542) | 736 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Amounts Due from Reinsurers | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Non-performance Risk | (19) | (7) | ||
Amounts Due from Reinsurers | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 5,510 | 0 | 0 | 0 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 344 | 0 | 586 | 0 |
Total realized and unrealized gains (losses) | 344 | 0 | 586 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 31 | 0 | 41 | 0 |
Sales | (16) | 0 | (17) | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 5,259 | |||
Change in estimate | 0 | |||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | |
Transfers out of level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 5,869 | 0 | 5,869 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 344 | 0 | 586 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Separate Accounts Assets | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 1 | 0 | 1 | 0 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | (1) | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | |||
Change in estimate | 0 | |||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | (1) | 0 |
Ending Balance | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
GMxB Derivative Features Liability | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Non-performance Risk | (92) | (72) | ||
GMxB Derivative Features Liability | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | (8,455) | (12,689) | (11,131) | (8,502) |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | (395) | 579 | 2,340 | (3,421) |
Total realized and unrealized gains (losses) | (395) | 579 | 2,340 | (3,421) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | (108) | (115) | (348) | (335) |
Sales | 20 | 21 | 61 | 54 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | |||
Change in estimate | 0 | |||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 140 | 0 |
Ending Balance | (8,938) | (12,204) | (8,938) | (12,204) |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | (395) | 579 | 2,340 | (3,421) |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Contingent Payment Arrangement | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | (38) | (28) | (28) | (23) |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 1 | 0 | (7) | (4) |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | |||
Change in estimate | 0 | |||
Activity related to consolidated VIEs/VOEs | (1) | 0 | (3) | (2) |
Transfers into level 3 | 0 | (1) | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 0 | 0 |
Ending Balance | (38) | (29) | (38) | (29) |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | $ 0 | $ 0 | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Quanti
FAIR VALUE DISCLOSURES - Quantitative Information about Level 3 (Details) - Level 3 $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Discounted cash flow | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 38 | $ 28 |
Discount rate | Discounted cash flow | Minimum | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.019 | 0.019 |
Discount rate | Discounted cash flow | Maximum | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.104 | 0.104 |
Discount rate | Discounted cash flow | Weighted Average | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.066 | 0.080 |
Expected revenue growth rate | Discounted cash flow | Minimum | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
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] | ||
Measurement input | 0.839 | 0.500 |
Expected revenue growth rate | Discounted cash flow | Weighted Average | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.130 | 0.049 |
Corporate | Matrix pricing model | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 206 | $ 34 |
Corporate | Market comparable companies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 820 | $ 1,148 |
Corporate | Spread over benchmark | Matrix pricing model | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0020 | 0.0045 |
Corporate | Spread over benchmark | Matrix pricing model | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0295 | 0.0195 |
Corporate | Spread over benchmark | Matrix pricing model | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0159 | 0.0160 |
Corporate | EBITDA Multiple | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 4.9 | 3.5 |
Corporate | EBITDA Multiple | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 73.7 | 33.1 |
Corporate | EBITDA Multiple | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 12.3 | 10.8 |
Corporate | Discount rate | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0595 | 0.0560 |
Corporate | Discount rate | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.1503 | 0.2840 |
Corporate | Discount rate | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0899 | 0.0860 |
Corporate | Cash flow multiples | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0 | 1.9 |
Corporate | Cash flow multiples | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 9 | 25 |
Corporate | Cash flow multiples | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 6 | 6.8 |
Corporate | Loan to value | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0 | |
Corporate | Loan to value | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.006077 | |
Corporate | Loan to value | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.003045 | |
Trading Securities, at Fair Value | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 39 | $ 39 |
Measurement input | 11 years | 11 years |
Trading Securities, at Fair Value | Revenue/earnings multiple | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 8.2 | 8.2 |
Trading Securities, at Fair Value | Discount factor | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.1000 | 0.1000 |
Other Equity Investments | Market comparable companies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 4 | $ 2 |
Other Equity Investments | Revenue/earnings multiple | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 8.2 | 9.7 |
Other Equity Investments | Revenue/earnings multiple | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 9.5 | 26.4 |
Other Equity Investments | Revenue/earnings multiple | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 8.5 | 18.5 |
GMIB reinsurance contracts | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 1,937 | $ 2,488 |
GMIB reinsurance contracts | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0045 | 0.006 |
GMIB reinsurance contracts | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | 0.16 |
GMIB reinsurance contracts | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0256 | 0.0169 |
GMIB reinsurance contracts | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0027 | 0 |
GMIB reinsurance contracts | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0866 | 0.02 |
GMIB reinsurance contracts | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0093 | 0.0091 |
GMIB reinsurance contracts | Utilization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0004 | 0 |
GMIB reinsurance contracts | Utilization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.6044 | 0.61 |
GMIB reinsurance contracts | Utilization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0543 | 0.0582 |
GMIB reinsurance contracts | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0040 | 0.0043 |
GMIB reinsurance contracts | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0078 | 0.0085 |
GMIB reinsurance contracts | Non-performance risk | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0044 | 0.0050 |
GMIB reinsurance contracts | Volatility rate - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.10 | 0.07 |
GMIB reinsurance contracts | Volatility rate - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.32 | 0.32 |
GMIB reinsurance contracts | Volatility rate - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.24 | 0.24 |
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 0 - 40 | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0001 | 0.0001 |
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 0 - 40 | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0017 | 0.0018 |
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 0 - 40 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0276 | 0.0280 |
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 41 - 60 | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0006 | 0.0007 |
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 41 - 60 | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0053 | 0.0054 |
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 41 - 60 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0276 | 0.0280 |
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 61 - 115 | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0031 | 0.000042 |
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 61 - 115 | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.4000 | 0.004220 |
GMIB reinsurance contracts | Mortality rate | Discounted cash flow | Ages 61 - 115 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0276 | 0.0280 |
Amounts due from reinsurers | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 5,869 | |
Amounts due from reinsurers | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0045 | |
Amounts due from reinsurers | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | |
Amounts due from reinsurers | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0167 | |
Amounts due from reinsurers | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0027 | |
Amounts due from reinsurers | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0866 | |
Amounts due from reinsurers | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0117 | |
Amounts due from reinsurers | Utilization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0004 | |
Amounts due from reinsurers | Utilization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.6044 | |
Amounts due from reinsurers | Utilization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0734 | |
Amounts due from reinsurers | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0034 | |
Amounts due from reinsurers | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0034 | |
Amounts due from reinsurers | Non-performance risk | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0034 | |
Amounts due from reinsurers | Volatility rate - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.10 | |
Amounts due from reinsurers | Volatility rate - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.32 | |
Amounts due from reinsurers | Volatility rate - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.24 | |
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 0 - 40 | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0001 | |
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 0 - 40 | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0017 | |
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 0 - 40 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0213 | |
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 41 - 60 | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0006 | |
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 41 - 60 | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0053 | |
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 41 - 60 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0213 | |
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 61 - 115 | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0031 | |
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 61 - 115 | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.4000 | |
Amounts due from reinsurers | Mortality rate | Discounted cash flow | Ages 61 - 115 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0213 | |
GMIBNLG | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 8,896 | $ 10,713 |
GMIBNLG | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0104 | 0.00011 |
GMIBNLG | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2357 | 0.257 |
GMIBNLG | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0351 | 0.0319 |
GMIBNLG | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0027 | 0.00004 |
GMIBNLG | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0866 | 0.02 |
GMIBNLG | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0103 | 0.0093 |
GMIBNLG | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.00960 | |
GMIBNLG | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0092 | |
GMIBNLG | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0092 | |
GMIBNLG | Non-performance risk | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0092 | |
GMIBNLG | Mortality rate | Discounted cash flow | Ages 0 - 40 | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0001 | 0.00 |
GMIBNLG | Mortality rate | Discounted cash flow | Ages 0 - 40 | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0019 | 0.0019 |
GMIBNLG | Mortality rate | Discounted cash flow | Ages 0 - 40 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0160 | 0.0156 |
GMIBNLG | Mortality rate | Discounted cash flow | Ages 41 - 60 | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0007 | 0.0006 |
GMIBNLG | Mortality rate | Discounted cash flow | Ages 41 - 60 | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0057 | 0.0053 |
GMIBNLG | Mortality rate | Discounted cash flow | Ages 41 - 60 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0160 | 0.0156 |
GMIBNLG | Mortality rate | Discounted cash flow | Ages 61 - 115 | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0044 | 0.000041 |
GMIBNLG | Mortality rate | Discounted cash flow | Ages 61 - 115 | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.4360 | 0.4139 |
GMIBNLG | Mortality rate | Discounted cash flow | Ages 61 - 115 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0160 | 0.0156 |
GMIBNLG | Annuitization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0003 | 0 |
GMIBNLG | Annuitization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 1 | 1 |
GMIBNLG | Annuitization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0535 | 0.0551 |
Assumed GMIB Reinsurance Contracts | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 195 | |
Assumed GMIB Reinsurance Contracts | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.00011 | |
Assumed GMIB Reinsurance Contracts | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.111 | |
Assumed GMIB Reinsurance Contracts | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0169 | |
Assumed GMIB Reinsurance Contracts | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.00006 | |
Assumed GMIB Reinsurance Contracts | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.222 | |
Assumed GMIB Reinsurance Contracts | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0091 | |
Assumed GMIB Reinsurance Contracts | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.00011 | |
Assumed GMIB Reinsurance Contracts | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 1 | |
Assumed GMIB Reinsurance Contracts | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0091 | |
Assumed GMIB Reinsurance Contracts | Utilization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0 | |
Assumed GMIB Reinsurance Contracts | Utilization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.30 | |
Assumed GMIB Reinsurance Contracts | Utilization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0582 | |
Assumed GMIB Reinsurance Contracts | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0060 | |
Assumed GMIB Reinsurance Contracts | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0133 | |
Assumed GMIB Reinsurance Contracts | Non-performance risk | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0099 | |
Assumed GMIB Reinsurance Contracts | Volatility rate - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.07 | |
Assumed GMIB Reinsurance Contracts | Volatility rate - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.32 | |
Assumed GMIB Reinsurance Contracts | Volatility rate - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.24 | |
GWBL/GMWB | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 104 | $ 190 |
GWBL/GMWB | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0060 | 0.00008 |
GWBL/GMWB | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | 0.16 |
GWBL/GMWB | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0256 | 0.00000169 |
GWBL/GMWB | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0 | 0 |
GWBL/GMWB | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0800 | 0.08 |
GWBL/GMWB | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0093 | 0.0000 |
GWBL/GMWB | Utilization rate | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 1 | 1 |
GWBL/GMWB | Utilization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.24 | |
GWBL/GMWB | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.00960 | |
GWBL/GMWB | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0092 | |
GWBL/GMWB | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0092 | |
GWBL/GMWB | Volatility rate - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.10 | 0.07 |
GWBL/GMWB | Volatility rate - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.32 | 0.32 |
GWBL/GMWB | Volatility rate - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.24 | |
GIB | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ (60) | $ 31 |
GIB | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0060 | 0.008 |
GIB | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | 0.156 |
GIB | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0256 | 0.0169 |
GIB | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0013 | 0 |
GIB | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0866 | 0.02 |
GIB | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0093 | 0.0091 |
GIB | Utilization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0004 | 0 |
GIB | Utilization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 1 | 1 |
GIB | Utilization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0543 | 0.0582 |
GIB | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.00960 | |
GIB | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0092 | |
GIB | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0092 | |
GIB | Volatility rate - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.10 | 0.07 |
GIB | Volatility rate - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.32 | 0.32 |
GIB | Volatility rate - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.24 | 0.24 |
GMAB | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ (3) | $ 2 |
GMAB | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0060 | 0.00008 |
GMAB | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | 0.16 |
GMAB | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0256 | 0.0169 |
GMAB | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.00960 | |
GMAB | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0092 | |
GMAB | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0092 | |
GMAB | Volatility rate - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.10 | 0.07 |
GMAB | Volatility rate - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.32 | 0.32 |
GMAB | Volatility rate - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.24 | 0.24 |
FAIR VALUE DISCLOSURES - Carryi
FAIR VALUE DISCLOSURES - Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | $ 13,448 | $ 13,159 |
Policy loans | 4,027 | 4,118 |
Policyholders liabilities: Investment contracts | 75,909 | 66,820 |
Short-term and long-term debt | 3,839 | 4,115 |
Separate Accounts liabilities | 142,093 | 135,950 |
Carrying Value | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 13,448 | 13,159 |
Policy loans | 4,027 | 4,118 |
Policyholders liabilities: Investment contracts | 2,059 | 2,198 |
FHLB funding agreements | 6,807 | 6,897 |
FABN funding agreements | 5,732 | 1,939 |
Short-term and long-term debt | 3,838 | 4,115 |
Separate Accounts liabilities | 11,092 | 10,081 |
Carrying Value | Collateralized Loan Obligations | ||
Consolidated Amounts [Abstract] | ||
Short-term debt | 1 | |
Measured at Fair Value | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 13,775 | 13,491 |
Policy loans | 5,109 | 5,352 |
Policyholders liabilities: Investment contracts | 2,187 | 2,416 |
FHLB funding agreements | 6,864 | 6,990 |
FABN funding agreements | 5,733 | 1,971 |
Short-term and long-term debt | 4,616 | 5,065 |
Separate Accounts liabilities | 11,092 | 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 and long-term debt | 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 | 6,864 | 6,990 |
FABN funding agreements | 5,733 | 1,971 |
Short-term and long-term debt | 4,616 | 5,065 |
Separate Accounts liabilities | 0 | 0 |
Measured at Fair Value | Level 3 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 13,775 | 13,491 |
Policy loans | 5,109 | 5,352 |
Policyholders liabilities: Investment contracts | 2,187 | 2,416 |
FHLB funding agreements | 0 | 0 |
FABN funding agreements | 0 | 0 |
Short-term and long-term debt | 0 | 0 |
Separate Accounts liabilities | $ 11,092 | $ 10,081 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Certain Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Impact of settlement | $ 2 | $ 4 | ||
Net Periodic Pension Expense | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 3 | $ 7 | $ 7 |
Interest cost | 13 | 23 | 40 | 68 |
Expected return on assets | (40) | (36) | (116) | (110) |
Prior Period Svc Cost Amortization | 1 | 0 | 0 | 0 |
Actuarial (gain) loss | 0 | 0 | 1 | 1 |
Net amortization | 23 | 27 | 81 | 82 |
Impact of settlement | 2 | 4 | ||
Net Periodic Pension Expense | $ 1 | $ 21 | $ 15 | $ 52 |
EQUITY - Preferred Stock Activi
EQUITY - Preferred Stock Activity (Details) - shares | Sep. 30, 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 | Sep. 30, 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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Class of Stock [Line Items] | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.18 | $ 0.17 | $ 0.53 | $ 0.49 |
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Cash dividends declared per depository share (in dollars per share) | 328.13 | 328.13 | 984.38 | 1,049.99 |
Series B Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Cash dividends declared per depository share (in dollars per share) | 0 | 0 | 618.75 | 0 |
Series C Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Cash dividends declared per depository share (in dollars per share) | $ 268.75 | $ 0 | $ 737.57 | $ 0 |
EQUITY - Share Repurchase (Deta
EQUITY - Share Repurchase (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2021 | May 31, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Jul. 02, 2021 | Jun. 30, 2021 | 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 | 1,000,000,000 | ||||||||||
Share repurchase program, remaining authorized repurchase amount | $ 462,000,000 | $ 462,000,000 | $ 462,000,000 | ||||||||||
Shares repurchased (in shares) | 0 | 3,200,000 | |||||||||||
Accelerated Share Repurchase Agreement | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Shares repurchased (in shares) | 15,600,000 | 38,200,000 | |||||||||||
Accelerated share repurchases, average purchase price (in dollars per share) | $ 29.50 | $ 30.56 | |||||||||||
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) | 1,100,000 | 4,900,000 | |||||||||||
Accelerated share repurchases, settlement payment | $ 200,000,000 | $ 200,000,000 | |||||||||||
Accelerated Share Repurchase Agreement, June 2021 | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Share repurchase plan, authorized amount | $ 300,000,000 | ||||||||||||
Shares repurchased (in shares) | 9,900,000 | ||||||||||||
Accelerated share repurchases, settlement payment | $ 300,000,000 | ||||||||||||
Accelerated Share Repurchase Agreement, September 2021 | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Share repurchase plan, authorized amount | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | ||||||||||
Shares repurchased (in shares) | 5,600,000 | ||||||||||||
Accelerated share repurchases, settlement payment | $ 200,000,000 | 200,000,000 | 200,000,000 | ||||||||||
Venerable | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Share repurchase program, additional authorized amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 |
EQUITY - Cumulative Gains (Loss
EQUITY - Cumulative Gains (Losses) (Details) - AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||
Unrealized gains (losses) on investments | $ 2,741 | $ 4,797 |
Defined benefit pension plans | (858) | (935) |
Foreign currency translation adjustments | (47) | (34) |
Total accumulated other comprehensive income (loss) | 1,836 | 3,828 |
Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest | (40) | (35) |
Accumulated other comprehensive income (loss) attributable to Holdings | $ 1,876 | $ 3,863 |
EQUITY - Components of OCI, Net
EQUITY - Components of OCI, Net of Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity [Abstract] | ||||
Net unrealized gains (losses) arising during the period | $ (310) | $ 309 | $ (2,547) | $ 4,675 |
(Gains) losses reclassified into net income (loss) during the period | (131) | (26) | (617) | (225) |
Net unrealized gains (losses) on investments | (441) | 283 | (3,164) | 4,450 |
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | 318 | (54) | 1,108 | (1,177) |
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(32), $61, $(546) and $870 ) | (123) | 229 | (2,056) | 3,273 |
Change in defined benefit plans: | ||||
Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost | 22 | 21 | 77 | 71 |
Change in defined benefit plans (net of deferred income tax expense (benefit) of $6, $6, $20 and $19) | 22 | 21 | 77 | 71 |
Foreign currency translation adjustments: | ||||
Foreign currency translation gains (losses) arising during the period | (9) | 16 | (13) | 1 |
Foreign currency translation adjustment | (9) | 16 | (13) | 1 |
Total other comprehensive income (loss), net of income taxes | (110) | 266 | (1,992) | 3,345 |
Less: Other comprehensive income (loss) attributable to noncontrolling interest | (3) | 6 | (5) | 1 |
Other comprehensive income (loss) attributable to Holdings | (107) | 260 | (1,987) | 3,344 |
Reclassification adjustment | 35 | (7) | 164 | (60) |
AFS Securities, OCI, tax | (32) | 61 | (546) | 870 |
Defined benefit plan, OCI, tax | $ 6 | $ 6 | $ 20 | $ 19 |
EQUITY - Permitted Statutory Ac
EQUITY - Permitted Statutory Accounting Practices (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | |
Equity [Abstract] | ||
Statutory accounting practices, statutory surplus, increase | $ 1,500,000,000 | |
Statutory accounting practices, statutory net income, increase | $ 1,600,000,000 | |
Statutory accounting practices, hedging losses amortization period | 5 years | |
Statutory accounting practices, statutory unassigned surplus, balance | $ 0 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTEREST - Summary of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Balance, beginning of period | $ 42 | $ 87 | $ 143 | [1],[2] | $ 365 | |
Net earnings (loss) attributable to redeemable noncontrolling interests | 0 | 1 | 4 | (4) | ||
Purchase/change of redeemable noncontrolling interests | 101 | 7 | (4) | (266) | ||
Balance, end of period | $ 143 | [1],[2] | $ 95 | $ 143 | [1],[2] | $ 95 |
[1] | See Note 12 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 ($)shares | Feb. 28, 2018USD ($) | Sep. 30, 2021USD ($)saleAndDisclosurePractice | Jun. 30, 2021USD ($) | May 31, 2021USD ($) | Feb. 29, 2016USD ($)federalActionlegalAction | |
Loss Contingencies [Line Items] | ||||||
Unaccrued amounts of reasonably possible range of losses | $ 150,000,000 | |||||
Number of sales and disclosure practices under investigation | saleAndDisclosurePractice | 457 | |||||
Federal home loan bank stock | $ 318,000,000 | |||||
Carrying value of collateral pledged for federal home loan bank | 10,400,000,000 | |||||
Commitments by the Company to provide equity financing | 1,400,000,000 | |||||
Face amount of mortgage loans | 714,000,000 | |||||
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 | $ 10,000,000,000 | |||||
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 | Credit facility, amended | ||||||
Loss Contingencies [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | |||||
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 | |||||
Equitable Life | Holdings Revolving Credit Facility | Letter of Credit | ||||||
Loss Contingencies [Line Items] | ||||||
Remaining capacity | 145,000,000 | |||||
Affiliated Entity | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments by the Company to provide equity financing | $ 221,000,000 | |||||
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 | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Federal Home Loan Bank (FHLB) | ||
Restructuring Cost and Reserve [Line Items] | ||
Difference related to remaining amortization | $ 5 | $ 7 |
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 6,890 | |
Issued During the Period | 46,301 | |
Repaid During the Period | 46,389 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 6,802 | |
Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Cost and Reserve [Line Items] | ||
Difference related to remaining amortization | 27 | $ 11 |
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,950 | |
Issued During the Period | 3,809 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | (30) | |
Outstanding Balance, period end | 5,729 | |
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 | 46,301 | |
Repaid During the Period | 46,389 | |
Long-term Agreements Maturing Within One Year | 322 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 5,868 | |
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 | |
Foreign Currency Transaction Adjustment | 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 | (322) | |
Long-term Agreements Maturing Within Five Years | 409 | |
Outstanding Balance, period end | 809 | |
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 | 2,450 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | 0 | |
Outstanding Balance, period end | 3,600 | |
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 | (409) | |
Outstanding Balance, period end | 125 | |
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 | 1,359 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | (30) | |
Outstanding Balance, period end | 2,129 | |
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 | (322) | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 934 | |
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 | 3,809 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | (30) | |
Outstanding Balance, period end | $ 5,729 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Narrative (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
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 | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | |||||
Net income (loss) | $ 672 | $ (779) | $ (693) | $ 590 | |
Adjustments related to: | |||||
Non-GAAP operating earnings | 818 | 568 | 2,176 | 1,554 | |
Legal expense | 180 | ||||
Interest expense | 59 | 52 | 184 | 152 | |
Non-GMxB related derivative | |||||
Adjustments related to: | |||||
Gain (loss) on fair value hedges recognized in earnings | (4) | 10 | 140 | ||
Adjustments | |||||
Segment Reporting Information [Line Items] | |||||
Net income (loss) | 672 | (779) | (693) | 590 | |
Adjustments related to: | |||||
Variable annuity product features | 172 | 1,620 | 3,632 | 473 | |
Investment (gains) losses,net | (164) | (17) | (767) | (190) | |
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 27 | 31 | 87 | 86 | |
Other adjustments | 141 | 66 | 672 | 836 | |
Income tax expense (benefit) related to above adjustments | (35) | (357) | (761) | (253) | |
Non-recurring tax items | 5 | 4 | 6 | 12 | |
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 | 86 | ||||
Separation costs | 25 | 37 | 62 | 108 | |
COVID-19 impact on taxes | 554 | ||||
Adjustments | Non-GMxB related derivative | |||||
Adjustments related to: | |||||
Gain (loss) on fair value hedges recognized in earnings | (461) | ||||
Operating Segments | Individual Retirement | |||||
Adjustments related to: | |||||
Non-GAAP operating earnings | 316 | 371 | 1,093 | 1,094 | |
Operating Segments | Group Retirement | |||||
Adjustments related to: | |||||
Non-GAAP operating earnings | 192 | 129 | 514 | 325 | |
Operating Segments | Investment Management and Research | |||||
Adjustments related to: | |||||
Non-GAAP operating earnings | 134 | 104 | 381 | 291 | |
Operating Segments | Protection Solutions | |||||
Adjustments related to: | |||||
Non-GAAP operating earnings | 160 | 51 | 264 | 88 | |
Corporate and Other | |||||
Adjustments related to: | |||||
Non-GAAP operating earnings | 16 | (87) | (76) | (244) | |
Interest expense | $ 65 | $ 56 | $ 180 | $ 164 |
BUSINESS SEGMENT INFORMATION _3
BUSINESS SEGMENT INFORMATION - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 3,615 | $ 1,840 | $ 7,718 | $ 11,899 |
Operating Segments | Individual Retirement | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 998 | 1,079 | 2,957 | 3,352 |
Operating Segments | Group Retirement | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 343 | 301 | 1,018 | 829 |
Operating Segments | Investment Management and Research | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,093 | 899 | 3,169 | 2,650 |
Operating Segments | Protection Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 838 | 751 | 2,496 | 2,344 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 479 | 300 | 1,199 | 881 |
Adjustments | ||||
Adjustments related to: | ||||
Variable annuity product features | (256) | (1,512) | (3,750) | 1,160 |
Investment (gains) losses | 164 | 17 | 767 | 190 |
Other adjustments to segment revenues | (44) | 5 | (138) | 493 |
Assumption updates due to COVID-19 | 46 | |||
Other COVID-19 related impact | (30) | |||
Intersegment Eliminations | ||||
Adjustments related to: | ||||
Investment expenses | 20 | 17 | 59 | 51 |
Investment management and other fees | Intersegment Eliminations | ||||
Adjustments related to: | ||||
Revenues | $ 32 | $ 28 | $ 94 | $ 82 |
BUSINESS SEGMENT INFORMATION _4
BUSINESS SEGMENT INFORMATION - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 284,579 | $ 275,397 |
Operating Segments | Individual Retirement | ||
Segment Reporting Information [Line Items] | ||
Total assets | 140,664 | 135,764 |
Operating Segments | Group Retirement | ||
Segment Reporting Information [Line Items] | ||
Total assets | 52,919 | 51,466 |
Operating Segments | Investment Management and Research | ||
Segment Reporting Information [Line Items] | ||
Total assets | 10,772 | 11,179 |
Operating Segments | Protection Solutions | ||
Segment Reporting Information [Line Items] | ||
Total assets | 48,745 | 48,568 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 31,479 | $ 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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Weighted average number of shares outstanding - basic (in shares) | 411.3 | 447.5 | 423.2 | 453 |
Effect of dilutive securities common shares, employee stock awards (in shares) | 3.3 | 0 | 0 | 1.1 |
Weighted average common shares outstanding - diluted (in shares) | 414.6 | 447.5 | 423.2 | 454.1 |
Net income (loss) | $ 765 | $ (705) | $ (412) | $ 787 |
Less: Net income (loss) attributable to the noncontrolling interest | 93 | 74 | 281 | 197 |
Net income (loss) attributable to Holdings | 672 | (779) | (693) | 590 |
Less: Preferred stock dividends | 14 | 11 | 53 | 34 |
Net income (loss) available to Holdings’ common shareholders | 658 | (790) | (746) | 556 |
Net income (loss) available to Holdings’ common shareholders | $ 658 | $ (790) | $ (746) | $ 556 |
Net income (loss) attributable to Holdings per common share: | ||||
Basic (in dollars per share) | $ 1.60 | $ (1.77) | $ (1.76) | $ 1.23 |
Diluted (in dollars per share) | $ 1.59 | $ (1.77) | $ (1.76) | $ 1.22 |
Effect of dilutive securities (in shares) | 3.7 | 1.5 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities (in shares) | 4.5 | 8.2 | 8.3 | 8.4 |
HELD-FOR-SALE - Narrative (Deta
HELD-FOR-SALE - Narrative (Details) - USD ($) $ in Millions | Jun. 01, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held-for-sale | $ 0 | $ 470 | |
Liabilities held-for-sale | 0 | 322 | |
Corporate Solutions Life Reinsurance Company | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Investment impairment | $ 15 | (15) | |
Gain on disposal | $ 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 | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Total assets held-for-sale | $ 0 | $ 470 |
Liabilities: | ||
Total liabilities held-for-sale | $ 0 | 322 |
Corporate Solutions Life Reinsurance Company | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||
Assets: | ||
Fixed maturity securities | 235 | |
Trading securities, at fair value | 189 | |
Other invested assets | 1 | |
Cash and cash equivalents | 39 | |
Other assets | 25 | |
Assets held-for-sale | 489 | |
Less: Loss accrual | (19) | |
Total assets held-for-sale | 470 | |
Liabilities: | ||
Future policy benefits and other policyholders’ liabilities | 320 | |
Broker-dealer related payables | 0 | |
Other liabilities | 2 | |
Total liabilities held-for-sale | $ 322 |
Uncategorized Items - eqh-20210
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |