Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 02, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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 | 375,622,526 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
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 | Jun. 30, 2022 | Dec. 31, 2021 | |
Investments: | |||
Fixed maturities available-for-sale, at fair value (amortized cost of $74,238 and $73,429) (allowance for credit losses of $19 and $22) | $ 67,254 | $ 78,216 | |
Fixed maturities, at fair value using the fair value option | [1] | 1,562 | 1,641 |
Mortgage loans on real estate (net of allowance for credit losses of $53 and $62) | [1] | 14,480 | 14,033 |
Policy loans | 4,020 | 4,024 | |
Other equity investments | [1] | 3,202 | 2,975 |
Trading securities, at fair value | 538 | 631 | |
Other invested assets | [1] | 2,160 | 3,591 |
Total investments | 93,216 | 105,111 | |
Cash and cash equivalents | [1] | 5,109 | 5,188 |
Cash and securities segregated, at fair value | 1,747 | 1,504 | |
Broker-dealer related receivables | 2,666 | 2,599 | |
Deferred policy acquisition costs | 7,541 | 5,491 | |
Goodwill and other intangible assets, net | 4,721 | 4,728 | |
Amounts due from reinsurers (allowance for credit losses of $6 and $5) (includes amounts accounted for at fair value of $4,681 and $5,813) | [2] | 13,758 | 14,679 |
GMIB reinsurance contract asset, at fair value | 1,498 | 1,848 | |
Current and deferred income taxes | 1,674 | 195 | |
Other assets | [1] | 4,787 | 3,613 |
Separate Accounts assets | 116,765 | 147,306 | |
Total Assets | 253,482 | 292,262 | |
LIABILITIES | |||
Policyholders’ account balances | 78,766 | 79,357 | |
Future policy benefits and other policyholders' liabilities | 34,717 | 36,717 | |
Broker-dealer related payables | 612 | 1,283 | |
Customer related payables | 3,821 | 3,600 | |
Amounts due to reinsurers | 1,353 | 1,381 | |
Short-term and long-term debt | 4,085 | 3,931 | |
Notes issued by consolidated variable interest entities, at fair value using the fair value option | [1] | 1,150 | 1,191 |
Other liabilities | [1] | 4,866 | 3,933 |
Separate Accounts liabilities | 116,765 | 147,306 | |
Total Liabilities | 246,135 | 278,699 | |
Redeemable noncontrolling interest | [1],[3] | 348 | 468 |
Commitments and contingent liabilities (Note 12) | |||
Equity attributable to Holdings: | |||
Preferred stock and additional paid-in capital, $1 par value and $25,000 liquidation preference | 1,562 | 1,562 | |
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 512,621,318 and 520,918,331 shares issued, respectively; 376,922,387 and 391,290,224 shares outstanding, respectively | 4 | 4 | |
Additional paid-in capital | 1,918 | 1,919 | |
Treasury stock, at cost, 135,698,931 and 129,628,107 shares, respectively | (3,065) | (2,850) | |
Retained earnings | 10,718 | 8,880 | |
Accumulated other comprehensive income (loss) | (5,548) | 2,004 | |
Total equity attributable to Holdings | 5,589 | 11,519 | |
Noncontrolling interest | 1,410 | 1,576 | |
Total Equity | 6,999 | 13,095 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 253,482 | $ 292,262 | |
[1]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs.[2]Represents the fair value of the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction and Note 8 of the Notes to these Consolidated Financial Statements .[3]See Note 11 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fixed maturities available-for-sale, amortized cost | $ 74,238,000,000 | $ 73,429,000,000 |
Fixed maturities available-for-sale, allowance for credit losses | 19,000,000 | 22,000,000 |
Mortgage loans on real estate, allowance for credit losses | 64,000,000 | 62,000,000 |
Reinsurance recoverable, allowance for credit loss | 6,000,000 | 5,000,000 |
Reinsurance recoverable, fair value | $ 4,681,000,000 | $ 5,813,000,000 |
Preferred stock par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock issued (in shares) | 512,621,318 | 520,918,331 |
Common stock outstanding (in shares) | 376,922,387 | 391,290,224 |
Treasury stock (in shares) | 135,698,931 | 129,628,107 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
REVENUES | ||||
Policy charges and fee income | $ 813 | $ 939 | $ 1,653 | $ 1,888 |
Premiums | 238 | 241 | 485 | 499 |
Net derivative gains (losses) | 2,229 | (1,199) | 3,050 | (3,745) |
Net investment income (loss) | 711 | 1,033 | 1,515 | 1,917 |
Investment gains (losses), net: | ||||
Credit losses on available-for-sale debt securities and loans | (9) | 5 | 1 | 6 |
Other investment gains (losses), net | (223) | 415 | (559) | 598 |
Total investment gains (losses), net | (232) | 420 | (558) | 604 |
Investment management and service fees | 1,197 | 1,318 | 2,552 | 2,575 |
Other income | 212 | 198 | 415 | 365 |
Total revenues | 5,168 | 2,950 | 9,112 | 4,103 |
BENEFITS AND OTHER DEDUCTIONS | ||||
Policyholders’ benefits | 914 | 828 | 1,974 | 1,767 |
Interest credited to policyholders’ account balances | 309 | 309 | 624 | 600 |
Compensation and benefits | 518 | 568 | 1,113 | 1,148 |
Commissions and distribution-related payments | 394 | 397 | 816 | 779 |
Interest expense | 50 | 51 | 97 | 125 |
Amortization of deferred policy acquisition costs | 160 | 106 | 341 | 193 |
Other operating costs and expenses | 583 | 447 | 1,120 | 1,055 |
Total benefits and other deductions | 2,928 | 2,706 | 6,085 | 5,667 |
Income (loss) from continuing operations, before income taxes | 2,240 | 244 | 3,027 | (1,564) |
Income tax (expense) benefit | (467) | (21) | (615) | 387 |
Net income (loss) | 1,773 | 223 | 2,412 | (1,177) |
Less: Net income (loss) attributable to the noncontrolling interest | 45 | 100 | 111 | 188 |
Net income (loss) attributable to Holdings | 1,728 | 123 | 2,301 | (1,365) |
Less: Preferred stock dividends | 26 | 26 | 40 | 39 |
Net income (loss) available to Holdings’ common shareholders | 1,702 | 97 | 2,261 | (1,404) |
Net income (loss) available to Holdings’ common shareholders | $ 1,702 | $ 97 | $ 2,261 | $ (1,404) |
Net income (loss) applicable to Holdings’ common shareholders per common share: | ||||
Basic (in dollars per share) | $ 4.49 | $ 0.23 | $ 5.89 | $ (3.27) |
Diluted (in dollars per share) | $ 4.47 | $ 0.23 | $ 5.86 | $ (3.27) |
Weighted average common shares outstanding (in millions): | ||||
Basic (in shares) | 378.9 | 424.2 | 383.7 | 429.2 |
Diluted (in shares) | 380.6 | 428.3 | 386.1 | 429.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,773 | $ 223 | $ 2,412 | $ (1,177) |
Other comprehensive income (loss) net of income taxes: | ||||
Change in unrealized gains (losses), net of reclassification adjustment | (3,742) | 1,220 | (7,568) | (1,933) |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 2 | 22 | 45 | 55 |
Foreign currency translation adjustment | (33) | 2 | (45) | (4) |
Total other comprehensive income (loss), net of income taxes | (3,773) | 1,244 | (7,568) | (1,882) |
Comprehensive income (loss) | (2,000) | 1,467 | (5,156) | (3,059) |
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 33 | 101 | 95 | 186 |
Comprehensive income (loss) attributable to Holdings | $ (2,033) | $ 1,366 | $ (5,251) | $ (3,245) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Total Holdings Equity | Preferred Stock and Additional Paid-In Capital | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
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 | 78 | 31 | 47 | 11 | ||||
Purchase of treasury stock | (709) | (709) | (11) | (698) | |||||
Reissuance of treasury stock | (47) | (47) | (47) | ||||||
Retirement of common stock | 0 | 359 | (359) | ||||||
Repurchase of AB Holding units | (27) | (27) | |||||||
Dividends paid to noncontrolling interest | (195) | (195) | |||||||
Dividends on common stock | (150) | (150) | (150) | ||||||
Dividends on preferred stock | (39) | (39) | (39) | ||||||
Issuance of preferred stock | 293 | 293 | 293 | ||||||
Net income (loss) | (1,181) | (1,365) | (1,365) | 184 | |||||
Other comprehensive income (loss) | (1,882) | (1,880) | (1,880) | (2) | |||||
Other | (25) | (25) | (25) | ||||||
End of year at Jun. 30, 2021 | 13,304 | 11,732 | 1,562 | 5 | 1,980 | (2,537) | 8,739 | 1,983 | 1,572 |
Beginning of year at Mar. 31, 2021 | 12,268 | 10,693 | 1,562 | 5 | 1,928 | (2,300) | 8,758 | 740 | 1,575 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock compensation | 18 | 14 | 12 | 2 | 4 | ||||
Purchase of treasury stock | (279) | (279) | (1) | (278) | |||||
Reissuance of treasury stock | (1) | (1) | (1) | ||||||
Retirement of common stock | 39 | (39) | |||||||
Repurchase of AB Holding units | (14) | (14) | |||||||
Dividends paid to noncontrolling interest | (87) | (87) | |||||||
Dividends on common stock | (76) | (76) | (76) | ||||||
Dividends on preferred stock | (26) | (26) | (26) | ||||||
Net income (loss) | 219 | 123 | 123 | 96 | |||||
Other comprehensive income (loss) | 1,244 | 1,243 | 1,243 | 1 | |||||
Other | 38 | 41 | 41 | (3) | |||||
End of year at Jun. 30, 2021 | 13,304 | 11,732 | 1,562 | 5 | 1,980 | (2,537) | 8,739 | 1,983 | 1,572 |
Beginning of year at Dec. 31, 2021 | 13,095 | 11,519 | 1,562 | 4 | 1,919 | (2,850) | 8,880 | 2,004 | 1,576 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock compensation | 98 | 71 | 35 | 36 | 27 | ||||
Purchase of treasury stock | (498) | (498) | (5) | (493) | |||||
Reissuance of treasury stock | (36) | (36) | (36) | ||||||
Retirement of common stock | 0 | 0 | 242 | (242) | |||||
Repurchase of AB Holding units | (107) | (107) | |||||||
Dividends paid to noncontrolling interest | (239) | (239) | |||||||
Dividends on common stock | (145) | (145) | (145) | ||||||
Dividends on preferred stock | (40) | (40) | (40) | ||||||
Net income (loss) | 2,468 | 2,301 | 2,301 | 167 | |||||
Other comprehensive income (loss) | (7,568) | (7,552) | (7,552) | (16) | |||||
Other | (29) | (31) | (31) | 2 | |||||
End of year at Jun. 30, 2022 | 6,999 | 5,589 | 1,562 | 4 | 1,918 | (3,065) | 10,718 | (5,548) | 1,410 |
Beginning of year at Mar. 31, 2022 | 9,483 | 7,954 | 1,562 | 4 | 1,933 | (3,070) | 9,312 | (1,787) | 1,529 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock compensation | 29 | 21 | 16 | 5 | 8 | ||||
Purchase of treasury stock | (220) | (220) | 0 | (220) | |||||
Reissuance of treasury stock | (5) | (5) | (5) | ||||||
Retirement of common stock | 0 | 0 | 220 | (220) | |||||
Repurchase of AB Holding units | (93) | (93) | |||||||
Dividends paid to noncontrolling interest | (100) | (100) | |||||||
Dividends on common stock | (75) | (75) | (75) | ||||||
Dividends on preferred stock | (26) | (26) | (26) | ||||||
Issuance of preferred stock | 0 | 0 | 0 | ||||||
Net income (loss) | 1,802 | 1,728 | 1,728 | 74 | |||||
Other comprehensive income (loss) | (3,773) | (3,761) | (3,761) | (12) | |||||
Other | (23) | (27) | (31) | 4 | 4 | ||||
End of year at Jun. 30, 2022 | $ 6,999 | $ 5,589 | $ 1,562 | $ 4 | $ 1,918 | $ (3,065) | $ 10,718 | $ (5,548) | $ 1,410 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.20 | $ 0.18 | $ 0.38 | $ 0.35 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement of Cash Flows [Abstract] | |||
Net income (loss) | $ 2,412 | $ (1,177) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Interest credited to policyholders’ account balances | 624 | 600 | |
Policy charges and fee income | (1,653) | (1,888) | |
Net derivative (gains) losses | (3,050) | 3,745 | |
Credit losses on AFS debt securities and loans | (1) | (6) | |
Investment (gains) losses, net | 559 | (596) | |
(Gains) losses on businesses HFS | 0 | (2) | |
Realized and unrealized (gains) losses on trading securities | 196 | 33 | |
Non-cash long-term incentive compensation expense | 62 | 65 | |
Amortization and depreciation | 371 | 248 | |
Equity (income) loss from limited partnerships | (106) | (217) | |
Changes in: | |||
Net broker-dealer and customer related receivables/payables | 183 | (724) | |
Reinsurance recoverable | [1] | (637) | (696) |
Segregated cash and securities, net | (243) | 680 | |
Capitalization of deferred policy acquisition costs | (429) | (406) | |
Future policy benefits | 327 | 35 | |
Current and deferred income taxes | 523 | (678) | |
Other, net | 38 | 389 | |
Net cash provided by (used in) operating activities | (824) | (595) | |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 12,532 | 20,638 | |
Fixed maturities, at fair value using the fair value option | 345 | 410 | |
Mortgage loans on real estate | 713 | 543 | |
Trading account securities | 93 | 4,637 | |
Short term investments | 106 | 81 | |
Other | 296 | 1,053 | |
Payment for the purchase/origination of: | |||
Fixed maturities, available-for-sale | (13,977) | (26,519) | |
Fixed maturities, at fair value using the fair value option | (344) | (724) | |
Mortgage loans on real estate | (1,175) | (741) | |
Trading account securities | (87) | (145) | |
Short term investments | (325) | (5) | |
Other | (786) | (1,679) | |
Cash from the sale of business, net of cash sold | 0 | 215 | |
Cash settlements related to derivative instruments, net | 666 | (6,100) | |
Investment in capitalized software, leasehold improvements and EDP equipment | (19) | (52) | |
Other, net | 214 | 97 | |
Net cash provided by (used in) investing activities | (1,748) | (8,291) | |
Cash flows from financing activities: | |||
Deposits | 7,214 | 9,989 | |
Withdrawals | (3,056) | (3,118) | |
Transfers (to) from Separate Accounts | 857 | 957 | |
Change in short-term financings | 153 | 82 | |
Change in collateralized pledged assets | 65 | 67 | |
Change in collateralized pledged liabilities | (1,529) | 1,267 | |
(Decrease) increase in overdrafts payable | (14) | 9 | |
Repayment of long-term debt | 0 | (280) | |
Proceeds from notes issued by consolidated VIEs | (43) | 433 | |
Dividends paid on common stock | (145) | (150) | |
Dividends paid on preferred stock | (40) | (39) | |
Issuance of preferred stock | 0 | 293 | |
Purchases of AB Holding Units to fund long-term incentive compensation plan awards | (107) | (75) | |
Purchase of treasury shares | (499) | (709) | |
Purchases (redemptions) of noncontrolling interests of consolidated company-sponsored investment funds | (61) | (79) | |
Distribution to noncontrolling interest of consolidated subsidiaries | (238) | (195) | |
Other, net | (12) | (22) | |
Net cash provided by (used in) financing activities | 2,545 | 8,430 | |
Effect of exchange rate changes on cash and cash equivalents | (52) | (1) | |
Change in cash and cash equivalents | (79) | (457) | |
Cash and cash equivalents, beginning of year | 5,188 | 6,179 | |
Change in cash of businesses held-for-sale | 0 | 39 | |
Cash and cash equivalents, end of year | 5,109 | 5,761 | |
Non-cash transactions from investing and financing activities: | |||
Right-of-use assets obtained in exchange for lease obligations | 34 | 45 | |
Transfer of assets to reinsurer | $ 0 | $ (9,023) | |
[1]Amount includes cash paid for Venerable Transaction of $494 million . See the Notes to these Consolidated Financial Statements. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 6 Months Ended |
Jun. 30, 2021 USD ($) | |
Statement of Cash Flows [Abstract] | |
Cash paid for Venerable reinsurance transaction | $ 494 |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2022 | |
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 - 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 June 30, 2022 and December 31, 2021 the Company’s economic interest in AB was approximately 65% as of both dates. 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 the sale (the “Venerable Transaction”) of CS Life, 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 Venerable Transaction, CS Life effected the recapture of all of the business that was ceded to CS Life Re Company, a wholly owned subsidiary of CS Life (“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 CS Life at closing. The post-closing true-up adjustment was immaterial. VIAC also issued a surplus note in aggregate principal amount of $60 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 Venerable Transaction, CS Life and Equitable Financial entered into a coinsurance and modified coinsurance agreement (the “Reinsurance Agreement”), pursuant to which Equitable Financial ceded to CS Life, 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, CS Life 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 CS Life 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 Venerable Transaction, EIMG acquired an approximate 9.09% equity interest in Venerable’s parent holding company, VA Capital Company LLC. In connection with such investment, EIMG designated a member to the Board of Managers of VA Capital Company LLC. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
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. 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, 2021. 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 “second quarter 2022” and “second quarter 2021” refer to the three months ended June 30, 2022 and 2021, respectively. The terms “first six months of 2022” and “first six months of 2021” refer to the six months ended June 30, 2022 and 2021, respectively. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of June 30, 2022, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. 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: 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. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 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. 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. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement. 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. 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. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. The Company continues to progress with implementation efforts and the evaluation of the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Due to its extensive nature, the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial statements, as well as systems, processes and controls. Effective January 1, 2023, the new guidance will be adopted using the modified retrospective approach, except for MRBs which will use the full retrospective approach. The Company has created a governance framework and implementation plan to ensure timely adoption of the guidance. In preparation for implementation, the Company continues to refine key accounting policy decisions, modernize processes and update internal controls. These changes include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. The impact on total equity of applying this ASU is estimated to be positive to the current amount of reported total equity as of June 30, 2022. As of June 30, 2022, a positive impact to AOCI is expected due to increases in the Company’s estimate of its non-performance risk on variable annuity guarantees accounted for as MRBs for the first time under the guidance. The estimated impact to the retained earnings element of total equity as of June 30, 2022, due to accounting for variable annuity guarantees as MRBs that are not currently measured at fair value, is mitigated by the Company’s present use of a near industry low interest rate assumption of 2.25% on GMIB business. Because movements in equity markets, interest rates and credit spreads are unpredictable and at times volatile, it is possible that the estimated effects of adoption could change materially between June 30, 2022 and January 1, 2023. 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 June 30, 2022 and December 31, 2021, respectively, Equitable Financial holds $93 million and $109 million of equity interests in the CLOs. The Company consolidated the CLOs as of June 30, 2022 and December 31, 2021 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority ownership of AB, which functions as the 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 June 30, 2022, Equitable Financial holds $71 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 June 30, 2022 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 $1.6 billion and $1.6 billion notes issued by consolidated variable interest entities, at fair value using the fair value option with total liabilities of $1.2 billion and $1.2 billion at June 30, 2022 and December 31, 2021, respectively . The unpaid outstanding principal balance of the notes and short-term borrowing is $1.4 billion and $1.3 billion at June 30, 2022 and December 31, 2021. Consolidated Limited Partnerships and LLCs As of June 30, 2022 and December 31, 2021 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 June 30, 2022 and December 31, 2021 are total assets of $242 million and $219 million, respectively related to these VIEs. Consolidated AB-Sponsored Investment Funds Included in the Company’s consolidated balance sheet as of June 30, 2022 and December 31, 2021 are assets of $497 million and $734 million, liabilities of $38 million and $87 million, and redeemable noncontrolling interests of $309 million and $421 million , respectively, associated with the consolidation of AB-sponsored investment funds under the VIE model. There were no consolidated AB-sponsored investment funds under the VOE model as of June 30, 2022 and December 31, 2021. 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 June 30, 2022 and December 31, 2021 respectively, the Company held approximately $2.3 billion and $2.1 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 $278.0 billion and $245.6 billion as of June 30, 2022 and December 31, 2021 respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $2.3 billion and $2.1 billion and approximately $1.3 billion and $1.2 billion of unfunded commitments as of June 30, 2022 and December 31, 2021, 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 June 30, 2022 and December 31, 2021, the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $40.3 billion and $68.9 billion, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $5 million and $9 million as of June 30, 2022 and December 31, 2021. 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. There were no material assumption updates or model changes in the first and second quarters of 2022 or 2021. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021 was $541 million and $506 million, respectively. There was no accrued interest written off for AFS fixed maturities for the three and six months ended June 30, 2022 and 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) June 30, 2022 Fixed Maturities: Corporate (1) $ 52,025 $ 19 $ 164 $ 5,728 $ 46,442 U.S. Treasury, government and agency 7,417 — 55 493 6,979 States and political subdivisions 684 — 24 61 647 Foreign governments 1,094 — 6 141 959 Residential mortgage-backed (2) 514 — 3 8 509 Asset-backed (3) 8,735 — 4 406 8,333 Commercial mortgage-backed 3,728 — 1 388 3,341 Redeemable preferred stock 41 — 3 — 44 Total at June 30, 2022 $ 74,238 $ 19 $ 260 $ 7,225 $ 67,254 December 31, 2021: Fixed Maturities: Corporate (1) $ 50,172 $ 22 $ 2,601 $ 240 $ 52,511 U.S. Treasury, government and agency 13,056 — 2,344 15 15,385 States and political subdivisions 586 — 78 2 662 Foreign governments 1,124 — 42 14 1,152 Residential mortgage-backed (2) 90 — 8 — 98 Asset-backed (3) 5,933 — 21 20 5,934 Commercial mortgage-backed 2,427 — 19 25 2,421 Redeemable preferred stock 41 — 12 — 53 Total at December 31, 2021 $ 73,429 $ 22 $ 5,125 $ 316 $ 78,216 ______________ (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. The contractual maturities of AFS fixed maturities as of June 30, 2022 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) June 30, 2022 Contractual maturities: Due in one year or less $ 1,354 $ 1,346 Due in years two through five 14,662 14,189 Due in years six through ten 18,470 16,969 Due after ten years 26,715 22,523 Subtotal 61,201 55,027 Residential mortgage-backed 514 509 Asset-backed 8,735 8,333 Commercial mortgage-backed 3,728 3,341 Redeemable preferred stock 41 44 Total at June 30, 2022 $ 74,219 $ 67,254 The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities for the three and six months ended June 30, 2022 and 2021: Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit Losses for AFS Fixed Maturities Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Proceeds from sales $ 3,344 $ 9,866 $ 10,735 $ 17,075 Gross gains on sales $ 15 $ 557 $ 44 $ 848 Gross losses on sales $ (227) $ (38) $ (591) $ (154) Net change in Allowance for Credit losses $ 2 $ (6) $ 3 $ (12) 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Balance, beginning of period $ 43 $ 38 $ 44 $ 32 Previously recognized impairments on securities that matured, paid, prepaid or sold (13) (3) (15) (3) 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 1 6 1 8 Additional credit losses this period on securities previously impaired 1 1 2 5 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 June 30, $ 32 $ 42 $ 32 $ 42 ______________ (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, April 1, 2022 $ (1,287) $ 290 $ (237) $ 259 $ (975) Net investment gains (losses) arising during the period (5,889) — — — (5,889) Reclassification adjustment: Included in net income (loss) 214 — — — 214 Excluded from net income (loss) — — — — — Other — — — — — Impact of net unrealized investment gains (losses) — 890 (96) 1,025 1,819 Net unrealized investment gains (losses) excluding credit losses (6,962) 1,180 (333) 1,284 (4,831) Net unrealized investment gains (losses) with credit losses (3) — — 1 (2) Balance, June 30, 2022 $ (6,965) $ 1,180 $ (333) $ 1,285 $ (4,833) Balance, April 1, 2021 $ 3,466 $ (947) $ (307) $ (465) $ 1,747 Net investment gains (losses) arising during the period 2,293 — — — 2,293 Reclassification adjustment: Included in net income (loss) (407) — — — (407) Other (1) — — — — — Impact of net unrealized investment gains (losses) — (215) (106) (328) (649) Net unrealized investment gains (losses) excluding credit losses 5,352 (1,162) (413) (793) 2,984 Net unrealized investment gains (losses) with credit losses 9 (3) (1) (1) 4 Balance, June 30, 2021 $ 5,361 $ (1,165) $ (414) $ (794) $ 2,988 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, 2022 $ 4,809 $ (782) $ (418) $ (757) $ 2,852 Net investment gains (losses) arising during the period (12,314) — — — (12,314) Reclassification adjustment: Included in net income (loss) 548 — — — 548 Other — — — — — Impact of net unrealized investment gains (losses) — 1,961 85 2,040 4,086 Net unrealized investment gains (losses) excluding credit losses (6,957) 1,179 (333) 1,283 (4,828) Net unrealized investment gains (losses) with credit losses (8) 1 — 2 (5) Balance, June 30, 2022 $ (6,965) $ 1,180 $ (333) $ 1,285 $ (4,833) Balance, January 1, 2021 $ 8,811 $ (1,548) $ (1,065) $ (1,302) $ 4,896 Net investment gains (losses) arising during the period (2,836) — — — (2,836) Reclassification adjustment: Included in net income (loss) (582) — — — (582) Other (1) (33) — — — (33) Impact of net unrealized investment gains (losses) — 384 652 508 1,544 Net unrealized investment gains (losses) excluding credit losses 5,360 (1,164) (413) (794) 2,989 Net unrealized investment gains (losses) with credit losses 1 (1) (1) — (1) Balance, June 30, 2021 $ 5,361 $ (1,165) $ (414) $ (794) $ 2,988 _____________ (1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments. The following tables disclose the fair values and gross unrealized losses of the 4,942 issues as of June 30, 2022 and the 2,060 issues as of December 31, 2021 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) June 30, 2022 Fixed Maturities: Corporate $ 38,094 $ 5,236 $ 2,883 $ 489 $ 40,977 $ 5,725 U.S. Treasury, government and agency 5,006 481 87 12 5,093 493 States and political subdivisions 289 57 11 4 300 61 Foreign governments 734 119 101 22 835 141 Residential mortgage-backed 442 8 1 — 443 8 Asset-backed 7,757 394 206 12 7,963 406 Commercial mortgage-backed 3,145 358 164 30 3,309 388 Total at June 30, 2022 $ 55,467 $ 6,653 $ 3,453 $ 569 $ 58,920 $ 7,222 December 31, 2021: Fixed Maturities: Corporate $ 10,571 $ 163 $ 1,633 $ 75 $ 12,204 $ 238 U.S. Treasury, government and agency 993 11 105 4 1,098 15 States and political subdivisions 120 2 11 — 131 2 Foreign governments 349 6 92 8 441 14 Residential mortgage-backed — — — — — — Asset-backed 3,865 20 38 — 3,903 20 Commercial mortgage-backed 1,527 21 96 4 1,623 25 Total at December 31, 2021 $ 17,425 $ 223 $ 1,975 $ 91 $ 19,400 $ 314 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 0.5% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of June 30, 2022 and December 31, 2021 were $239 million and $322 million, respectively, representing 3.4% and 2.5% 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 June 30, 2022 and December 31, 2021, respectively, approximately $2.9 billion and $2.9 billion, or 3.9% and 3.9%, of the $74.2 billion and $73.4 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 $208 million and $18 million as of June 30, 2022 and December 31, 2021, respectively. As of June 30, 2022 and December 31, 2021, respectively, the $569 million and $91 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 of the Notes to these Consolidated Financial Statements, the Company concluded that an adjustment to allowance for credit losses for these securities was not warranted at either June 30, 2022 or December 31, 2021. As of June 30, 2022 and December 31, 2021, 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 June 30, 2022, the Company determined that the unrealized loss was primarily due to increases in interest rates, credit spreads and changes in credit ratings. Mortgage Loans on Real Estate Accrued interest receivable on commercial and agricultural mortgage loans as of June 30, 2022 and December 31, 2021 was $58 million and $57 million, respectively. There was no accrued interest written off for commercial and agricultural mortgage loans for the six months ended June 30, 2022 and 2021. As of June 30, 2022, 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 six months ended June 30, 2022 and 2021 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 47 $ 70 $ 57 $ 77 Current-period provision for expected credit losses 11 (11) 1 (18) Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — Net change in allowance 11 (11) 1 (18) Balance, end of period $ 58 $ 59 $ 58 $ 59 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Agricultural mortgages: Balance, beginning of period $ 6 $ 4 $ 5 $ 4 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 $ 6 $ 4 $ 6 $ 4 Total allowance for credit losses $ 64 $ 63 $ 64 $ 63 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; and • changes in credit quality. Credit Quality Information The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of June 30, 2022 and December 31, 2021. LTV Ratios (1) June 30, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: 0% - 50% $ 188 $ — $ — $ — $ 119 $ 1,202 $ — $ — $ 1,509 50% - 70% 575 1,790 1,374 276 634 2,969 221 — 7,839 70% - 90% 136 328 147 411 450 1,055 — 35 2,562 90% plus — — — — — — — — — Total commercial $ 899 $ 2,118 $ 1,521 $ 687 $ 1,203 $ 5,226 $ 221 $ 35 $ 11,910 Agricultural: 0% - 50% $ 103 $ 192 $ 214 $ 124 $ 129 $ 788 $ — $ — $ 1,550 50% - 70% 166 180 241 87 94 300 — — 1,068 70% - 90% — — — — — 16 — — 16 90% plus — — — — — — — — — Total agricultural $ 269 $ 372 $ 455 $ 211 $ 223 $ 1,104 $ — $ — $ 2,634 Total mortgage loans: June 30, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) 0% - 50% $ 291 $ 192 $ 214 $ 124 $ 248 $ 1,990 $ — $ — $ 3,059 50% - 70% 741 1,970 1,615 363 728 3,269 221 — 8,907 70% - 90% 136 328 147 411 450 1,071 — 35 2,578 90% plus — — — — — — — — — Total mortgage loans $ 1,168 $ 2,490 $ 1,976 $ 898 $ 1,426 $ 6,330 $ 221 $ 35 $ 14,544 Debt Service Coverage Ratios (2 ) June 30, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 420 $ 1,143 $ 1,243 $ 104 $ 631 $ 2,078 $ — $ — $ 5,619 1.8x to 2.0x 94 187 134 262 186 660 124 — 1,647 1.5x to 1.8x 270 275 49 266 190 1,051 68 — 2,169 1.2x to 1.5x 35 260 95 11 48 1,006 — — 1,455 1.0x to 1.2x — 253 — 44 148 360 29 35 869 Less than 1.0x 80 — — — — 71 — — 151 Total commercial $ 899 $ 2,118 $ 1,521 $ 687 $ 1,203 $ 5,226 $ 221 $ 35 $ 11,910 Agricultural: Greater than 2.0x $ 48 $ 40 $ 63 $ 22 $ 12 $ 215 $ — $ — $ 400 1.8x to 2.0x 11 58 36 25 14 71 — — 215 1.5x to 1.8x 38 43 112 28 23 209 — — 453 1.2x to 1.5x 73 156 175 100 101 332 — — 937 1.0x to 1.2x 83 74 65 30 69 264 — — 585 Less than 1.0x 16 1 4 6 4 13 — — 44 Total agricultural $ 269 $ 372 $ 455 $ 211 $ 223 $ 1,104 $ — $ — $ 2,634 Total mortgage loans: Greater than 2.0x $ 468 $ 1,183 $ 1,306 $ 126 $ 643 $ 2,293 $ — $ — $ 6,019 1.8x to 2.0x 105 245 170 287 200 731 124 — 1,862 1.5x to 1.8x 308 318 161 294 213 1,260 68 — 2,622 1.2x to 1.5x 108 416 270 111 149 1,338 — — 2,392 1.0x to 1.2x 83 327 65 74 217 624 29 35 1,454 Less than 1.0x 96 1 4 6 4 84 — — 195 Total mortgage loans $ 1,168 $ 2,490 $ 1,976 $ 898 $ 1,426 $ 6,330 $ 221 $ 35 $ 14,544 ______________ (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, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ — $ — $ 184 $ 293 $ 1,009 $ — $ — $ 1,486 50% - 70% 1,944 1,286 339 619 491 2,533 139 — 7,351 70% - 90% 190 236 412 415 276 972 — — 2,501 90% plus — — — 35 5 73 — — 113 Total commercial $ 2,134 $ 1,522 $ 751 $ 1,253 $ 1,065 $ 4,587 $ 139 $ — $ 11,451 Agricultural: 0% - 50% $ 180 $ 212 $ 128 $ 129 $ 119 $ 738 $ — $ — $ 1,506 50% - 70% 200 268 102 126 87 338 — — 1,121 70% - 90% — — — — — 17 — — 17 90% plus — — — — — — — — — Total agricultural $ 380 $ 480 $ 230 $ 255 $ 206 $ 1,093 $ — $ — $ 2,644 Total mortgage loans: 0% - 50% $ 180 $ 212 $ 128 $ 313 $ 412 $ 1,747 $ — $ — $ 2,992 50% - 70% 2,144 1,554 441 745 578 2,871 139 — 8,472 70% - 90% 190 236 412 415 276 989 — — 2,518 90% plus — — — 35 5 73 — — 113 Total mortgage loans $ 2,514 $ 2,002 $ 981 $ 1,508 $ 1,271 $ 5,680 $ 139 $ — $ 14,095 Debt Service Coverage Ratios (2) December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 1,143 $ 1,243 $ 210 $ 772 $ 485 $ 2,235 $ — $ — $ 6,088 1.8x to 2.0x 185 135 182 46 161 372 68 — 1,149 1.5x to 1.8x 275 49 284 211 166 919 48 — 1,952 1.2x to 1.5x 264 95 75 101 253 701 — — 1,489 1.0x to 1.2x 267 — — 88 — 287 23 — 665 Less than 1.0x — — — 35 — 73 — — 108 Total commercial $ 2,134 $ 1,522 $ 751 $ 1,253 $ 1,065 $ 4,587 $ 139 $ — $ 11,451 Agricultural: Greater than 2.0x $ 49 $ 64 $ 25 $ 22 $ 24 $ 210 $ — $ — $ 394 1.8x to 2.0x 52 37 25 14 14 70 — — 212 1.5x to 1.8x 43 113 28 22 41 193 — — 440 1.2x to 1.5x 161 179 112 116 72 355 — — 995 1.0x to 1.2x 75 83 31 77 54 226 — — 546 Less than 1.0x — 4 9 4 1 39 — — 57 Total agricultural $ 380 $ 480 $ 230 $ 255 $ 206 $ 1,093 $ — $ — $ 2,644 Total mortgage loans: Greater than 2.0x $ 1,192 $ 1,307 $ 235 $ 794 $ 509 $ 2,445 $ — $ — $ 6,482 1.8x to 2.0x 237 172 207 60 175 442 68 — 1,361 1.5x to 1.8x 318 162 312 233 207 1,112 48 — 2,392 1.2x to 1.5x 425 274 187 217 325 1,056 — — 2,484 1.0x to 1.2x 342 83 31 165 54 513 23 — 1,211 Less than 1.0x — 4 9 39 1 112 — — 165 Total mortgage loans $ 2,514 $ 2,002 $ 981 $ 1,508 $ 1,271 $ 5,680 $ 139 $ — $ 14,095 ______________ (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. Past-Due and Nonaccrual Mortgage Loan Status The following table provides information relating to the aging analysis of past-due mortgage loans as of June 30, 2022 and December 31, 2021, 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) June 30, 2022: Mortgage loans: Commercial $ — $ — $ — $ — $ 11,910 $ 11,910 $ — $ 11,910 $ — $ — Agricultural 9 1 19 29 2,589 2,618 16 2,634 — — Total $ 9 $ 1 $ 19 $ 29 $ 14,499 $ 14,528 $ 16 $ 14,544 $ — $ — December 31, 2021: Mortgage loans: Commercial $ — $ — $ — $ — $ 11,451 $ 11,451 $ — $ 11,451 $ — $ — Agricultural 1 1 25 27 2,601 2,628 16 2,644 — — Total $ 1 $ 1 $ 25 $ 27 $ 14,052 $ 14,079 $ 16 $ 14,095 $ — $ — _______________ (1) Amounts presented at amortized cost basis. As of June 30, 2022 and December 31, 2021, the carrying values of problem mortgage loans that had been classified as non-accrual loans were $13 million and $14 million, respectively. Troubled Debt Restructuring During the three and six months ended June 30, 2022 and 2021, the Company identified an immaterial amount of TDRs. Equity Securities The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three and six months ended June 30, 2022 and 2021. Unrealized and Realized Gains (Losses) from Equity Securities Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (70) $ 21 $ (110) $ 40 Net investment gains (losses) recognized on securities sold during the period 2 10 (11) 4 Unrealized and realized gains (losses) on equity securities $ (68) $ 31 $ (121) $ 44 Trading Securities As of June 30, 2022 and December 31, 2021, respectively, the fair value of the Company’s trading securities was $538 million and $631 million. As of June 30, 2022 and December 31, 2021, respectively, trading securities included the General Account’s investment in Separate Accounts had carrying values of $35 million and $45 million. The table below shows a breakdown of net investment income (loss) from trading securities during the three and six months ended June 30, 2022 and 2021. Net Investment Income (Loss) from Trading Securities Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (108) $ (176) $ (202) $ (246) Net investment gains (losses) recognized on securities sold during the period 4 184 6 213 Unrealized and realized gains (losses) on trading securities (104) 8 (196) (33) Interest and dividend income from trading securities 2 43 18 81 Net investment income (loss) from trading securities $ (102) $ 51 $ (178) $ 48 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 six months ended June 30, 2022 and 2021. Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (8) $ (2) $ (13) $ (2) Net investment gains (losses) recognized on securities sold during the period — 1 6 2 Unrealized and realized gains (losses) from fixed maturities (8) (1) (7) — Interest and dividend income from fixed maturities (17) 9 (1) 10 Net investment income (loss) from fixed maturities $ (25) $ 8 $ (8) $ 10 |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2022 | |
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 and cash flow hedges, which are 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 Equitable Financial 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 and thus has the same risk attributes as the underlying direct contracts, 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 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 U.S. 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 U.S. dollar amounts with improved net investment yields or net product costs over equivalent U.S. 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 June 30, 2022 December 31, 2021 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 $ 1,307 $ 63 $ 86 $ 921 $ 7 $ 42 Interest swaps 954 — 298 955 — 395 Total: designated for hedge accounting 2,261 63 384 1,876 7 437 Derivatives: not designated for hedge accounting (1) Equity contracts: Futures 4,131 2 — 2,640 — 1 Swaps 10,340 16 10 13,378 6 4 Options 37,766 6,559 3,722 48,489 12,024 5,065 Interest rate contracts: Futures 9,824 — — 12,575 — — Swaps 1,319 15 72 1,889 — 46 Swaptions — — — — — — Credit contracts: Credit default swaps 282 17 9 774 9 10 Currency contracts Currency swaps 181 9 — 541 1 — Currency forwards 78 21 21 79 8 7 Other freestanding contracts: Margin — 224 — — 125 — Collateral — 138 3,695 — 178 6,160 Total: not designated for hedge accounting 63,921 7,001 7,529 80,365 12,351 11,293 Embedded derivatives: Amounts due from reinsurers (5) — 4,681 — — 5,813 — GMIB reinsurance contracts (2) — 1,498 — — 1,848 — GMxB derivative features liability (3) — — 6,180 — — 8,525 SCS, SIO, MSO and IUL indexed features (4) — — 2,636 — — 6,773 Total embedded derivatives — 6,179 8,816 — 7,661 15,298 Total derivative instruments $ 66,182 $ 13,243 $ 16,729 $ 82,241 $ 20,019 $ 27,028 ___________ (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) 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 June 30, 2022 Six Months Ended June 30, 2022 (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 $ 18 $ 1 $ 8 $ (8) $ 14 $ 2 $ (10) $ 5 Interest swaps (27) — — 168 (41) — — 148 Total: designated for hedge accounting (9) 1 8 160 (27) 2 (10) 153 Derivatives: not Designated for hedge accounting Equity contracts Futures 398 — — — 456 — — — Swaps 2,043 — — — 2,778 — — — Options (3,446) — — — (3,730) — — — Interest rate contracts Futures (546) — — — (1,058) — — — Swaps (154) — — — (303) — — — Swaptions — — — — — — — — Credit contracts Credit default swaps 13 — — — 14 — — — Currency contracts Currency swaps 13 — — — 18 — — — Currency forwards 2 — — — 2 — — — Other freestanding contracts Margin — — — — — — — — Collateral — — — — — — — — Total: not designated for hedge accounting (1,677) — — — (1,823) — — — Embedded derivatives Amounts due from reinsurers (376) — — — (1,142) — — — GMIB reinsurance contracts (79) — — — (339) — — — GMxB derivative features liability (2) 827 — — — 2,515 — — — SCS, SIO,MSO and IUL indexed features 3,543 — — — 3,866 — — — Total embedded derivatives $ 3,915 $ — $ — $ — $ 4,900 $ — $ — $ — Total derivative instruments $ 2,229 $ 1 $ 8 $ 160 $ 3,050 $ 2 $ (10) $ 153 Three Months Ended June 30, 2021 Six Months Ended June 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/interest rate Currency swaps $ — $ — $ (17) $ — $ — $ — $ (17) $ — Interest swaps $ (24) $ — $ — $ 6 $ (28) $ — $ — $ 33 Total: designated for hedge accounting (24) — (17) 6 (28) — (17) 33 Derivatives: not designated for hedge accounting Equity contracts Futures (161) — — — (449) — — — Swaps (1,339) — — — (2,610) — — — Options 1,201 — — — 2,346 — — — Interest rate contracts Futures 152 — — — (798) — — — Swaps 470 — — — (2,442) — — — Swaptions — — — — — — — — Credit contracts Credit default swaps (1) — — — (1) — — — Currency contracts Currency swaps — — — — — — — — Currency forwards — — — — 1 — — — Other freestanding contracts Margin — — — — — — — — Collateral — — — — — — — — Total: not designated for hedge accounting 322 — — — (3,953) — — — Embedded derivatives Amounts due from reinsurers 242 — — — 242 — — — GMIB reinsurance contracts 120 — — — (458) — — — GMxB derivative features liability (2) (674) — — — 2,735 — — — SCS, SIO,MSO and IUL indexed features (1,183) — — — (2,328) — — — Total embedded derivatives $ (1,495) $ — $ — $ — $ 191 $ — $ — $ — Total derivative instruments $ (1,197) $ — $ (17) $ 6 $ (3,790) $ — $ (17) $ 33 ______________ (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 six months ended June 30, 2021 . The table that follow below present a roll-forward of cash flow hedges recognized in AOCI. Roll-forward of Cash flow hedges in AOCI Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Balance, beginning of period $ (215) $ (132) $ (208) $ (126) Amount recorded in AOCI Currency swaps 3 (17) — (17) Interest swaps 137 (56) 98 (78) Total amount recorded in AOCI 140 (73) 98 (95) Amount reclassified from AOCI to income Currency swaps (10) 17 6 17 Interest swaps 31 30 50 46 Total amount reclassified from AOCI to income 21 47 56 63 Balance, end of period $ (54) $ (158) $ (54) $ (158) _______________ (1) The Company does not estimate the amount of the deferred losses in AOCI at three and six months ended June 30, 2022 and 2021 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 June 30, 2022 and December 31, 2021 are exchange-traded and net settled daily in cash. As of June 30, 2022 and December 31, 2021, 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 $207 million and $109 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 $172 million and $200 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 $15 million and $16 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 June 30, 2022 and December 31, 2021, respectively, the Company held $3.7 billion and $6.2 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 $138 million and $178 million as of June 30, 2022 and December 31, 2021, respectively, in the normal operation of its collateral arrangements. The Company is exposed to losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. The Company manages credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreements, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review. Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. In addition, certain of the Company’s derivative agreements contain credit-risk related contingent features; if the credit rating of one of the parties to the derivative agreement is to fall below a certain level, the party with positive fair value could request termination at the then fair value or demand immediate full collateralization from the party whose credit rating fell and is in a net liability position. As of June 30, 2022 and December 31, 2021, there were no net liability derivative positions with counterparties with credit risk-related contingent features whose credit rating has fallen. All derivatives have been appropriately collateralized by the Company or the counterparty in accordance with the terms of the derivative agreements. The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of June 30, 2022 and December 31, 2021: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of June 30, 2022 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) $ 7,065 $ 6,825 $ 240 $ — $ 240 Other financial assets 1,920 — 1,920 — 1,920 Other invested assets $ 8,985 $ 6,825 $ 2,160 $ — $ 2,160 Liabilities: Derivative liabilities (2) $ 7,913 $ 6,825 $ 1,088 $ — $ 1,088 Other financial liabilities 3,778 — 3,778 — 3,778 Other liabilities $ 11,691 $ 6,825 $ 4,866 $ — $ 4,866 ______________ (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, 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) $ 12,358 $ 10,756 $ 1,602 $ (961) $ 641 Other financial assets 1,989 — 1,989 — 1,989 Other invested assets $ 14,347 $ 10,756 $ 3,591 $ (961) $ 2,630 Liabilities: Derivative liabilities (2) $ 10,770 $ 10,756 $ 14 $ — $ 14 Other financial liabilities 3,919 — 3,919 — 3,919 Other liabilities $ 14,689 $ 10,756 $ 3,933 $ — $ 3,933 ______________ (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 | 6 Months Ended |
Jun. 30, 2022 | |
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 Summarized financial information for the Company’s Closed Block is as follows: June 30, 2022 December 31, 2021 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 5,806 $ 5,928 Policyholder dividend obligation — — Other liabilities 66 39 Total Closed Block liabilities 5,872 5,967 Assets Designated to the Closed Block: Fixed maturities AFS, at fair value (amortized cost of $3,189 and $3,185) (allowance for credit losses of $0 and $0) 3,054 3,390 Mortgage loans on real estate (net of allowance for credit losses of $3 and $4) 1,693 1,771 Policy loans 581 602 Cash and other invested assets 70 63 Other assets 122 90 Total assets designated to the Closed Block 5,520 5,916 Excess of Closed Block liabilities over assets designated to the Closed Block 352 51 Amounts included in AOCI: Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $0; and net of income tax: $28 and $(43) (96) 172 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 256 $ 223 The Company’s Closed Block revenues and expenses were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Revenues: Premiums and other income $ 31 $ 37 $ 64 $ 76 Net investment income (loss) 55 60 113 120 Investment gains (losses), net (3) 2 (2) 2 Total revenues 83 99 175 198 Benefits and Other Deductions: Policyholders’ benefits and dividends 80 90 156 196 Other operating costs and expenses — — — 1 Total benefits and other deductions 80 90 156 197 Net income (loss), before income taxes 3 9 19 1 Income tax (expense) benefit 3 — 4 (1) Net income (loss) $ 6 $ 9 $ 23 $ — A reconciliation of the Company’s policyholder dividend obligation follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Beginning balance $ — $ 28 $ — $ 160 Unrealized investment gains (losses) — 44 — (88) Ending balance $ — $ 72 $ — $ 72 |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
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 GMIB that are reflected in the consolidated balance sheets in GMIB reinsurance contract asset are at fair value. Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature Three and Six Months Ended June 30, 2022 and 2021 GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Balance, April 1, 2022 $ 5,040 $ — $ (2,253) $ 6,024 $ — $ (3,750) Paid guarantee benefits (148) — 61 (145) — (8) Other changes in reserve 204 — (84) 286 — 51 Balance, June 30, 2022 $ 5,096 $ — $ (2,276) $ 6,165 $ — $ (3,707) Balance, April 1, 2021 $ 5,086 $ 72 $ (84) $ 5,966 $ 144 $ (1,907) Paid guarantee benefits (114) (6) 20 (92) 3 11 Other changes in reserve 119 8 (22) 31 (7) (131) Impact of the Venerable Transaction (1) (2) — (74) (2,176) — (140) (2,141) Balance, June 30, 2021 $ 5,091 $ — $ (2,262) $ 5,905 $ — $ (4,168) GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Balance, January 1, 2022 $ 4,951 $ — $ (2,216) $ 5,892 $ — $ (3,968) Paid guarantee benefits (281) — 117 (266) — 7 Other changes in reserve 426 — (177) 539 — 254 Balance, June 30, 2022 $ 5,096 $ — $ (2,276) $ 6,165 $ — $ (3,707) Balance, January 1, 2021 $ 5,097 $ 72 $ (88) $ 6,026 $ 196 $ (2,488) Paid guarantee benefits (247) (12) 23 (184) (49) 25 Other changes in reserve 241 14 (21) 63 (7) 436 Impact of the Venerable Transaction — (74) (2,176) — (140) (2,141) Balance, June 30, 2021 $ 5,091 $ — $ (2,262) $ 5,905 $ — $ (4,168) ______________ (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 of the Notes to these Consolidated Financial Statements 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 7 of the Notes to these Consolidated Financial Statements. 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 June 30, 2022 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 June 30, 2022 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 $ 16,501 $ 90 $ 49 $ 153 $ 16,793 Separate Accounts 47,469 7,745 2,577 26,538 84,329 Total Account Values $ 63,970 $ 7,835 $ 2,626 $ 26,691 $ 101,122 NAR, gross $ 720 $ 1,424 $ 1,848 $ 22,522 $ 26,514 NAR, net of amounts reinsured $ 711 $ 1,286 $ 1,337 $ 12,051 $ 15,385 Average attained age of policyholders (in years) 51.5 69.4 75.8 71.4 55.7 Percentage of policyholders over age 70 11.9 % 51.6 % 73.6 % 59.2 % 21.0 % 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 $ 199 $ 214 Separate Accounts — — 21,461 27,973 49,434 Total Account Values $ — $ — $ 21,476 $ 28,172 $ 49,648 NAR, gross $ — $ — $ 652 $ 9,749 $ 10,401 NAR, net of amounts reinsured $ — $ — $ 209 $ 4,023 $ 4,232 Average attained age of policyholders (in years) N/A N/A 65.4 71.1 68.9 Weighted average years remaining until annuitization N/A N/A 5.7 0.5 2.5 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 Notes to the Consolidated Financial Statements 2021 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 June 30, 2022 December 31, 2021 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 39,786 $ 14,596 $ 52,771 $ 20,015 Fixed income 4,738 2,179 5,391 2,507 Balanced 38,682 32,396 48,390 40,491 Other 1,123 263 1,025 263 Total $ 84,329 $ 49,434 $ 107,577 $ 63,276 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Beginning balance $ 1,112 $ 1,050 $ 1,096 $ 1,022 Paid guarantee benefits (8) (13) (16) (28) Other changes in reserves 30 33 54 76 Ending balance $ 1,134 $ 1,070 $ 1,134 $ 1,070 _____________ (1) There were no amounts of reinsurance ceded in any period presented. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES U.S. GAAP establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. As of June 30, 2022 and December 31, 2021, no assets or liabilities were required to be measured at fair value on a non-recurring basis. 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 June 30, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, AFS: Corporate (1) $ — $ 44,675 $ 1,767 $ 46,442 U.S. Treasury, government and agency — 6,979 — 6,979 States and political subdivisions — 617 30 647 Foreign governments — 959 — 959 Residential mortgage-backed (2) — 509 — 509 Asset-backed (3) — 8,315 18 8,333 Commercial mortgage-backed — 3,316 25 3,341 Redeemable preferred stock — 44 — 44 Total fixed maturities, AFS — 65,414 1,840 67,254 Fixed maturities, at fair value using the fair value option — 1,139 423 1,562 Other equity investments (7) 305 495 13 813 Trading securities 280 206 52 538 Other invested assets: Short-term investments 7 164 50 221 Assets of consolidated VIEs/VOEs 75 386 5 466 Swaps — (363) — (363) Credit default swaps — 9 — 9 Futures 2 — — 2 Options — 2,837 — 2,837 Total other invested assets 84 3,033 55 3,172 Cash equivalents 2,764 548 — 3,312 Segregated securities — 1,747 — 1,747 Amounts due from reinsurer (6) — — 4,681 4,681 GMIB reinsurance contracts asset — — 1,498 1,498 Separate Accounts assets (4) 113,384 2,555 1 115,940 Total Assets $ 116,817 $ 75,137 $ 8,563 $ 200,517 Liabilities Notes issued by consolidated VIE’s, at fair value using the fair value option (5) $ — $ 1,387 $ — $ 1,387 GMxB derivative features’ liability — — 6,180 6,180 SCS, SIO, MSO and IUL indexed features’ liability — 2,636 — 2,636 Liabilities of consolidated VIEs and VOEs 15 4 — 19 Contingent payment arrangements — — 42 42 Total Liabilities $ 15 $ 4,027 $ 6,222 $ 10,264 ______________ (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 June 30, 2022, the fair value of such investments was $438 million. (5) Includes CLO short-term debt of $245 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 $8 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 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction. (7) Includes short position equity securities of $15 million that are reported in other liabilities. Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, AFS: Corporate (1) $ — $ 51,007 $ 1,504 $ 52,511 U.S. Treasury, government and agency — 15,385 — 15,385 States and political subdivisions — 627 35 662 Foreign governments — 1,152 — 1,152 Residential mortgage-backed (2) — 98 — 98 Asset-backed (3) — 5,926 8 5,934 Commercial mortgage-backed (2) — 2,401 20 2,421 Redeemable preferred stock — 53 — 53 Total fixed maturities, AFS — 76,649 1,567 78,216 Fixed maturities, at fair value using the fair value option 1,440 201 1,641 Other equity investments 322 457 5 784 Trading securities 340 226 65 631 Other invested assets: Short-term investments — 30 — 30 Assets of consolidated VIEs/VOEs 166 450 11 627 Swaps — (473) — (473) Credit default swaps — (1) — (1) Futures (1) — — (1) Options — 6,959 — 6,959 Swaptions — — — — Total other invested assets 165 6,965 11 7,141 Cash equivalents 3,275 293 — 3,568 Segregated securities — 1,504 — 1,504 Amounts due from reinsurer — — 5,813 5,813 GMIB reinsurance contracts asset — — 1,848 1,848 Separate Accounts assets (4) 144,124 2,572 1 146,697 Total Assets $ 148,226 $ 90,106 $ 9,511 $ 247,843 Liabilities Notes issued by consolidated VIE’s, at fair value using the fair value option (5) $ — $ 1,277 $ — $ 1,277 GMxB derivative features’ liability — — 8,525 8,525 SCS, SIO, MSO and IUL indexed features’ liability — 6,773 — 6,773 Liabilities of consolidated VIEs and VOEs 16 2 — 18 Contingent payment arrangements — — 38 38 Total Liabilities $ 16 $ 8,052 $ 8,563 $ 16,631 ______________ (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 and other asset types and credit tenant loans. (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 and commercial mortgages. As of December 31, 2021, the fair value of such investments was $404 million. (5) Includes CLO short-term debt of $92 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 $6 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 of the Notes to these Consolidated Financial Statements 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 GMIB NLG 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 equity projections of Separate Account funds. The credit risks of the counterparty and of the Company are considered in determining the fair values of its GMIB reinsurance contract asset, GMIB NLG Reinsurance and GMxB derivative features liability positions, respectively, after taking into account the effects of collateral arrangements. Incremental adjustment to the U.S. Treasury curve for non-performance risk is made to the fair values of the GMIB reinsurance contract asset, GMIB NLG Reinsurance and GMIB NLG feature to reflect the claims-paying ratings of counterparties and the Company. Due to the unique, long duration of the GMIB NLG feature and GMIB NLG Reinsurance, risk margins were applied to the non-capital markets inputs to the GMIB NLG valuations. After giving consideration to collateral arrangements, the impact to the fair value of its GMIB reinsurance contract asset was a decrease of $148 million and $107 million as of June 30, 2022 and December 31, 2021, respectively, to recognize incremental counterparty non-performance risk. After giving consideration to collateral arrangements, the impact to the fair value of its Amounts due from Reinsurers was a decrease of $213 million and $210 million at June 30, 2022 and December 31, 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 six months ended June 30, 2022, fixed maturities with fair values of $184 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 $250 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 6.2% of total equity as of June 30, 2022. During the six months ended June 30, 2021, fixed maturities with fair values of $792 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 $17 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 6.1% of total equity as of June 30, 2021. The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses) for the three and six months ended June 30, 2022 and 2021, respectively. Corporate State and Political Subdivisions Asset-backed CMBS Trading Securities, at Fair Value Fixed maturities, at FVO Balance, April 1, 2022 $ 1,683 $ 32 $ 332 $ 238 $ 52 $ 342 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 1 — — — — 4 Investment gains (losses), net (1) — — — — — Subtotal — — — — — 4 Other comprehensive income (loss) (50) (2) (1) (1) — — Purchases 327 — (313) (212) — 64 Sales (74) — — — — (24) Activity related to consolidated VIEs/VOEs — — — — — — Transfers into Level 3 (1) (5) — — — — (3) Transfers out of Level 3 (1) (114) — — — — 40 Balance, June 30, 2022 $ 1,767 $ 30 $ 18 $ 25 $ 52 $ 423 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — $ 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 (2) $ (50) $ (2) $ — $ — $ — $ — Balance, April 1, 2021 $ 1,255 $ 38 $ 65 $ 4 $ 39 $ 142 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 2 — — — — 8 Investment gains (losses), net (6) — — — — — Subtotal (4) — — — — 8 Other comprehensive income (loss) 17 — — — — — Purchases 294 — 74 6 — 42 Sales (137) (1) (11) — — (1) Activity related to consolidated VIEs/VOEs — — — — — — Transfers into Level 3 (1) — — — — — 8 Transfers out of Level 3 (1) (164) — — — — (51) Balance, June 30, 2021 $ 1,261 $ 37 $ 128 $ 10 $ 39 $ 148 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (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 (2) $ 17 $ — $ — $ — $ — $ — _____ Corporate State and Political Subdivisions Asset-backed CMBS Trading Securities, at Fair Value Fixed maturities, at FVO Balance, January 1, 2022 $ 1,504 $ 35 $ 8 $ 20 $ 65 $ 201 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 2 — — — — — Investment gains (losses), net — — — — (13) — Subtotal 2 — — — (13) — Other comprehensive income (loss) (81) (4) (1) (2) — — Purchases 559 — 12 7 — 153 Sales (161) (1) (1) — — (53) Activity related to consolidated VIEs/VOEs — — — — — — Transfers into Level 3 (1) 65 — — — — 185 Transfers out of Level 3 (1) (121) — — — — (63) Balance, June 30, 2022 $ 1,767 $ 30 $ 18 $ 25 $ 52 $ 423 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ (13) $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ (79) $ (4) $ (1) $ (2) $ — $ — 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) 3 — — — — 11 Investment gains (losses), net (12) — — — — — Subtotal (9) — — — — 11 Other comprehensive income (loss) 26 (1) — — — — Purchases 459 — 124 10 — 130 Sales (206) (1) (16) — — (9) Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (1) 2 — — — — 15 Transfers out of Level 3 (1) (713) — — — — (79) Balance, June 30, 2021 $ 1,261 $ 37 $ 128 $ 10 $ 39 $ 148 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — $ 11 Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ 26 $ (1) $ — $ — $ — $ — ________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of June 30, 2022 or June 30, 2021, 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 (7) GMIB Reinsurance Contract Asset Amounts Due from Reinsurers Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement Balance, April 1, 2022 $ 11 $ 1,582 $ 5,056 $ — $ (6,925) $ (37) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income — — — — — — Net derivative gains (losses) (1) — (79) (376) — 827 — Total realized and unrealized gains (losses) — (79) (376) — 827 — Other comprehensive income (loss) — — — — — — Purchases (2) 57 11 28 — (116) (3) Sales (3) — (16) (27) 1 34 — Activity related to consolidated VIEs/VOEs (1) — — — — (2) Transfers into Level 3 (4) — — — — — — Transfers out of Level 3 (4) — — — — — — Balance, June 30, 2022 $ 67 $ 1,498 $ 4,681 $ 1 $ (6,180) $ (42) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ — $ (79) $ (376) $ — $ 827 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — $ — Balance, April 1, 2021 $ 83 $ 1,907 $ — $ — $ (7,824) $ (36) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income 18 — — — — — Net derivative gains (losses) (1) (5) — 120 242 — (673) — Total realized and unrealized gains (losses) 18 120 242 — (673) — Other comprehensive income (loss) — — — — — — Purchases (2) — 11 10 1 (121) (1) Sales (3) 2 (12) (1) — 23 — Other — — 5,259 — — — Activity related to consolidated VIEs/VOEs — — — — — (1) Transfers into Level 3 (4) — — — — — — Transfers out of Level 3 (4) — — — — 140 — Balance, June 30, 2021 $ 103 $ 2,026 $ 5,510 $ 1 $ (8,455) $ (38) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ 18 $ 120 $ 242 $ — $ (673) $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — $ — Other Equity Investments (7) GMIB Reinsurance Contract Asset Amounts Due from Reinsurers Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement Balance, January 1, 2022 $ 16 $ 1,848 $ 5,815 $ 1 $ (8,525) $ (38) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income — — — — — — Net derivative gains (losses) (1) — (339) (1,142) — 2,515 — Total realized and unrealized gains (losses) — (339) (1,142) — 2,515 — Other comprehensive income (loss) — — — — — — Purchases (2) 57 21 61 — (236) (2) Sales (3) — (32) (53) — 66 — Activity related to consolidated VIEs/VOEs (3) — — — — (2) Transfers into Level 3 (4) — — — — — Transfers out of Level 3 (4) (3) — — — — — Balance, June 30, 2022 $ 67 $ 1,498 $ 4,681 $ 1 $ (6,180) $ (42) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ — $ (339) $ (1,142) $ — $ 2,515 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — $ — 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 19 — — — — — Net derivative gains (losses) (1) (5) — (458) 242 — 2,735 — Total realized and unrealized gains (losses) 19 (458) 242 — 2,735 — Other comprehensive income (loss) — — — — — — Purchases (2) 3 21 10 1 (240) (8) Sales (3) (1) (25) (1) — 41 — Other — — 5,259 — — — Activity related to consolidated VIEs/VOEs (2) — — — — (2) Transfers into Level 3 (4) — — — — — — Transfers out of Level 3 (4) — — — (1) 140 — Balance, June 30, 2021 $ 103 $ 2,026 $ 5,510 $ 1 $ (8,455) $ (38) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ 19 $ (458) $ 242 $ — $ 2,735 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Service cost $ 2 $ 2 $ 4 $ 5 Interest cost 14 14 28 27 Expected return on assets (40) (38) (79) (76) Prior Period Svc Cost Amortization (1) — (1) (1) Actuarial (gain) loss — — 1 1 Net amortization 20 29 40 58 Impact of settlement — — — — Net Periodic Pension Expense $ (5) $ 7 $ (7) $ 14 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense for the three and six months ended June 30, 2022 and 2021 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 | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
EQUITY | EQUITY Preferred Stock Preferred stock authorized, issued and outstanding was as follows: June 30, 2022 December 31, 2021 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 12,000 12,000 12,000 Total 64,000 64,000 64,000 64,000 64,000 64,000 Dividends declared per share were as follows for the periods indicated: Three Months Ended June 30, Six months ended June 30, 2022 2021 2022 2021 Series A dividends declared $ 328 $ 328 $ 656 $ 656 Series B dividends declared $ 619 $ 619 $ 619 $ 619 Series C dividends declared $ 269 $ 269 $ 538 $ 469 Common Stock Dividends declared per share of common stock were as follows for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Dividends declared $ 0.20 $ 0.18 $ 0.38 $ 0.35 Share Repurchase On February 9, 2022, the Company’s Board of Directors authorized a new $1.2 billion share repurchase program. Under this program, the Company may, from time to time purchase shares of its common stock through various means. The Company may choose to suspend or discontinue the repurchase program at any time. The repurchase program does not obligate the Company to purchase any particular number of shares. As of June 30, 2022, Holdings had authorized capacity of approximately $705 million remaining in its share repurchase program. Holdings repurchased a total of 7.6 million, 8.2 million, 16.2 million and 22.7 million shares of its common stock at an average price of $28.90, $34.09, $30.81, and $31.29 per share, respectively through open market repurchases, ASRs and privately negotiated transactions during the three and six months ended June 30, 2022 and 2021. Holdings did not repurchase any shares of its common stock through open market purchases in the three months ended June 30, 2022 and 2021. During the six months ended June 30, 2022 and 2021, Holdings repurchased 7.9 million and 3.2 million shares of its common stock through open market repurchases. In April 2022, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $100 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $100 million and initially received 2.6 million shares. The ASR terminated during April 2022, at which time 684,700 additional shares of common stock were received. In May 2022, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $150 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $150 million and initially received 4.3 million shares. The ASR terminated during July 2022, at which time 1.2 million additional shares of common stock were received. Accumulated Other Comprehensive Income (Loss) AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of June 30, 2022 and December 31, 2021 follow: June 30, December 31, 2022 2021 (in millions) Unrealized gains (losses) on investments $ (4,884) $ 2,684 Defined benefit pension plans (624) (669) Foreign currency translation adjustments (90) (45) Total accumulated other comprehensive income (loss) (5,598) 1,970 Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest (50) (34) Accumulated other comprehensive income (loss) attributable to Holdings $ (5,548) $ 2,004 The components of OCI, net of taxes for the three and six months ended June 30, 2022 and 2021 follow: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ (4,654) $ 1,822 $ (9,734) $ (2,237) (Gains) losses reclassified into net income (loss) during the period (1) 169 (322) 433 (486) Net unrealized gains (losses) on investments (4,485) 1,500 (9,301) (2,723) Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 743 (280) 1,733 790 Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(993), $324, $(2,011) and $(514)) (3,742) 1,220 (7,568) (1,933) Change in defined benefit plans: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost 2 22 45 55 Change in defined benefit plans (net of deferred income tax expense (benefit) of $0, $5, $(9), and $14) 2 22 45 55 Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period (33) 2 (45) (4) Foreign currency translation adjustment (33) 2 (45) (4) Total other comprehensive income (loss), net of income taxes (3,773) 1,244 (7,568) (1,882) Less: Other comprehensive income (loss) attributable to noncontrolling interest (12) 1 (16) (2) Other comprehensive income (loss) attributable to Holdings $ (3,761) $ 1,243 $ (7,552) $ (1,880) _______________ (1) See “Reclassification adjustments” in Note 3 of the Notes to these Consolidated Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $(45) million, $85 million, $(115) million, and $129 million for the three and six months ended June 30, 2022 and 2021, respectively. Investment gains and losses reclassified from AOCI to net income (loss) primarily consist of realized gains (losses) on sales and credit losses of AFS securities and are included in total investment gains (losses), net on the consolidated statements of income (loss). Amounts reclassified from AOCI to net income (loss) as related to defined benefit plans primarily consist of amortization of net (gains) losses and net prior service cost (credit) recognized as a component of net periodic cost and reported in compensation and benefits in the consolidated statements of income (loss). Amounts presented in the table above are net of tax. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Balance, beginning of period $ 386 $ 137 $ 468 $ 143 Net earnings (loss) attributable to redeemable noncontrolling interests (29) 4 (56) 4 Purchase/change of redeemable noncontrolling interests (9) (99) (64) (105) Balance, end of period $ 348 $ 42 $ 348 $ 42 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
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 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 June 30, 2022, 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 $250 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, in which the volatility management tool was subsequently implemented and who claim to have 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 and in February 2022, the Connecticut Appellate Court reversed the Superior Court’s entry of judgement. In April 2022, the Connecticut Supreme Court granted Equitable Financial’s petition to review the decision of the Connecticut Appellate Court. 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 the District of Arizona in 2017 and consolidated with the Brach matter in federal court in New York. 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. Owners of a substantial number of policies opted out of the Brach class action. Most opt-out policies are not yet the subject of litigation. Others filed suit previously including five federal actions that have been coordinated with the Brach action and contain similar allegations along with additional allegations for violations of state consumer protection statutes and common law fraud. In March 2022, the federal district court issued a summary judgment decision, denying in significant part but granting in part Equitable Financial’s motion and denying the motion filed by plaintiffs in the coordinated actions. In July 2022, the federal district court granted Equitable Financial’s motion to reconsider its summary judgment decision in part and granted summary judgment as to a portion of the Section 4226 class. The federal district court also agreed to consider whether it should decertify the Section 4226 class and set a briefing schedule. Equitable Financial has commenced settlement discussions with the Brach class action plaintiffs and plaintiffs in the coordinated actions. No assurances can be given about the outcome of those settlement discussions. Equitable Financial has settled actual and threatened litigations challenging the COI increase by individual policyowners and one entity that invested in numerous policies purchased in the life settlement market. Two actions are also pending against Equitable Financial in New York state court. In July 2022, the trial court in one of the New York state court actions, Hobish v. AXA Equitable Life Insurance Company, granted in significant part Equitable Financial’s motion for summary judgment and denied plaintiff’s cross motion. That plaintiff filed a notice of appeal. Equitable Financial is vigorously defending each of these matters. As with other financial services companies, Equitable Financial 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. In July 2022, the SEC issued an order with findings that daily separate account and portfolio operating expenses disclosed in customer prospectuses for the EQUI-VEST variable annuity product and incorporated in the calculation of net investment portfolio results in EQUI-VEST quarterly account statements were not properly presented or referenced in those account statements. The Company neither admitted nor denied the findings but agreed to prospectively modify the relevant account statements and cross-reference the relevant prospectus disclosures, and pay a civil monetary penalty of $50 million, to be distributed to plan participants. The Company has fully accrued for the cost of the settlement and its implementation. 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 these 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 (“FHLB”) 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 $339 million and pledged collateral with a carrying value of $10.2 billion as of June 30, 2022. 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 of the Notes to these Consolidated Financial Statements. The table below summarizes the Company’s activity of funding agreements with the FHLB. Change in FHLB Funding Agreements during the Six Months Ended June 30, 2022 Outstanding Balance at December 31, 2021 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 June 30, 2022 (in millions) Short-term funding agreements: Due in one year or less $ 5,353 $ 27,407 $ 27,488 $ 153 $ — $ 5,425 Long-term funding agreements: Due in years two through five 1,290 309 — (153) — 1,446 Due in more than five years — 412 — — — 412 Total long-term funding agreements 1,290 721 — (153) — 1,858 Total funding agreements (1) $ 6,643 $ 28,128 $ 27,488 $ — $ — $ 7,283 _____________ (1) The $4 million and $4 million difference between the funding agreements carrying value shown in fair value table for June 30, 2022 and December 31, 2021, 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 of the Notes to these Consolidated Financial Statements. As of June 30, 2022, 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 Equitable Financial’s activity of funding agreements under the FABN program. Change in FABN Funding Agreements during the Six Months Ended June 30, 2022 Outstanding Balance at December 31, 2021 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 June 30, (in millions) Short-term funding agreements: Due in one year or less $ — $ — $ — $ — $ 1,000 $ — $ 1,000 Long-term funding agreements: Due in years two through five 4,600 — — — (1,000) — 3,600 Due in more than five years 2,119 — — — — (45) 2,074 Total long-term funding agreements 6,719 — — — (1,000) (45) 5,674 Total funding agreements (1) $ 6,719 $ — $ — $ — $ — $ (45) $ 6,674 _____________ (1) The $3 million and $70 million difference between the funding agreements notional value shown and carrying value table as of June 30, 2022 and December 31, 2021, respectively, reflects the remaining amortization of the issuance cost of the funding agreements and the foreign currency transaction adjustment. 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 June 30, 2022, the Company had $30 million 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 June 30, 2022, these arrangements include commitments by the Company to provide equity financing of $1.3 billion 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 June 30, 2022. The Company had $830 million of commitments under existing mortgage loan agreements as of June 30, 2022. The Company is the obligor under certain structured settlement agreements it had entered into with unaffiliated insurance companies and beneficiaries. To satisfy its obligations under these agreements, the Company owns single premium annuities issued by previously wholly-owned life insurance subsidiaries. The Company has directed payment under these annuities to be made directly to the beneficiaries under the structured settlement agreements. A contingent liability exists with respect to these agreements should the previously wholly-owned subsidiaries be unable to meet their obligations. Management believes the need for the Company to satisfy those obligations is remote. |
INSURANCE GROUP STATUTORY FINAN
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
Insurance [Abstract] | |
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION | INSURANCE GROUP STATUTORY FINANCIAL INFORMATION Prescribed and Permitted Accounting Practices As of June 30, 2022, the following three prescribed and permitted practices resulted in net income (loss) and capital and surplus that is different from the statutory surplus that would have been reported had NAIC statutory accounting practices been applied. Equitable Financial was granted a permitted practice by the NYDFS to apply SSAP 108, Derivatives Hedging Variable Annuity Guarantees on a retroactive basis from January 1, 2021 through June 30, 2021, after reflecting the impacts of our reinsurance transaction with Venerable. The permitted practice was amended to also permit Equitable Financial to adopt SSAP 108 prospectively as of July 1, 2021 and to consider the impact of both the interest rate derivatives and the general account assets used to fully hedge the interest rate risk inherent in its variable annuity guarantees when determining the amount of the deferred asset or liability under SSAP 108. Application of the permitted practice partially mitigates the New York Insurance Regulation 213 (“Reg 213”) impact of the Venerable Transaction on Equitable Financial’s statutory capital and surplus and enables Equitable Financial to more effectively neutralize the impact of interest rates on its statutory surplus and to better align with our economic hedging program. The impact of applying this permitted practice relative to SSAP 108 as written was an increase of approximately $461 million in statutory special surplus funds and a decrease of $527 million and $900 million in statutory net income as of and for the three and six months ended June 30, 2022, respectively, which will be amortized over five years for each of the retrospective and prospective components. The permitted practice also reset Equitable Financial’s unassigned surplus to zero as of June 30, 2021 to reflect the transformative nature of the Venerable Transaction. The NAIC Accounting Practices and Procedures manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by the State of New York. However, Reg 213 adopted in May of 2019 and as amended in February 2020 and March 2021, differs from the NAIC variable annuity reserve and capital framework. Reg 213 requires Equitable Financial to carry statutory basis reserves for its variable annuity contract obligations equal to the greater of those required under (i) the NAIC standard or (ii) a revised version of the NYDFS requirement in effect prior to the adoption of the first amendment for contracts issued prior to January 1, 2020, and for policies issued after that date a new standard that in current market conditions imposes more conservative reserving requirements for variable annuity contracts than the NAIC standard. The impact of the application of Reg 213 was a decrease of approximately $3.1 billion in statutory surplus as of June 30, 2022 compared to statutory surplus under the NAIC variable annuity framework. Our hedging program is designed to hedge the economics of our insurance liabilities and largely offsets Reg 213 and NAIC framework reserve movements due to interest rates and equities. The NYDFS allows domestic insurance companies a five year phase-in provision for Reg 213 reserves. As of June 30, 2022, Equitable Financial’s Reg 213 reserves are phased-in at 60% and are very close to Reg 213 reserves with a 100% phase-in. Additionally, as of June 30, 2022, Reg 213 when 100% phased-in result in redundant reserves over the US RBC CTE 98 total asset requirement (“TAR”) of approximately $0.5 billion to $1.0 billion, which the Company intends to mitigate during the phase-in period. Finally, the continued application of Reg 213 resulted in a corresponding decrease of $1.2 billion and $1.8 billion in statutory net income for the three and six months ended June 30, 2022, which was largely offset by net income gains on our hedging program during the same period as noted. During the fourth quarter of 2020, the Company received approval from NYDFS for its proposed amended Plan of Operation for Separate Account No. 68 (“SA 68”) for our Structured Capital Strategies product and Separate Account No. 69 (“SA 69”) for our Equi-Vest product Structured Investment Option, to change the accounting basis of these two non-insulated Separate Accounts from fair value to book value in accordance with Section 1414 of the Insurance Law to align with how we manage and measure our overall general account asset portfolio. In order to facilitate this change and comply with Section 4240(a)(10), the Company also sought approval to amend the Plans to remove the requirement to comply with Section 4240(a)(5)(iii) and substitute it with a commitment to comply with Section 4240(a)(5)(i). Similarly, the Company updated the reserves section of each Plan to reflect the fact that Regulation 128 would no longer be applicable upon the change in accounting basis. We applied this change effective January 1, 2021. The impact of the application is an increase of approximately $1.8 billion in statutory surplus and an increase in statutory net income as of and for the three and six months ended June 30, 2022 of $1.0 billion and $2.0 billion, respectively. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
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 - 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; (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; and (iv) DAC amortization for the SCS variable annuity product arising from near-term fluctuations in index segment returns; • 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, certain legal accruals; and a bespoke deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market, which disposed of the risk of additional COI litigation by that entity related to those UL policies; 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. In the first quarter 2022, the Company updated its Operating earnings measure to exclude the DAC amortization impact of near-term fluctuations in indexed segment returns on the SCS variable annuity product to reflect the impact of market fluctuations consistently with the long term duration of the product. Operating earnings was favorably impacted by this change in the amount of $50 million and $70 million for the three and six months ended June 30, 2022, respectively. The presentation of Operating earnings in prior periods was not revised to reflect this modification, however, the Company estimated that had the treatment in the Company’s Operating earnings measure of the Amortization of DAC for SCS been modified in 2020, the pre-tax impact on Operating earnings of excluding the SCS-related DAC amortization from Operating earnings would have been a decrease of $10 million, $14 million, $16 million and $34 million for the three and six months ended June 30, 2021, and years ended December 31, 2021 and 2020, respectively. The General Account investment portfolio is used to support the insurance and annuity liabilities of our Individual Retirement, Group Retirement and Protection Solutions businesses segments. In the first quarter 2022, the Company changed its methodology for allocating its General Account investment portfolio, which resulted in a change in the asset and net investment income allocation amongst the Company’s business segments. Following this change the segmentation of the general account investments is now more closely aligned with the liability characteristics of the product groups. Management determined that the change in the allocation methodology allows for improved flexibility and infuses an active asset liability management practice into the segmentation process. Additionally, the Company also changed its basis for allocating the spread earned from our FHLB investment borrowing and FABN programs. The spread earned from our FHLB investment borrowing and FABN programs includes the investment income on the assets less interest credited on the funding agreements. The net spread as reflected in net investment income is allocated to the segments based on the percentage of the individual segment insurance liabilities over the combined segments insurance liabilities. This change in measurement only impacts our segment disclosures, and thus it has no impact on our overall consolidated financial statements. Historical segment operating income (loss), revenues and assets have not been recast in the tables as the impact was immaterial. Revenues derived from any customer did not exceed 10% of revenues for the three and six months ended June 30, 2022 and 2021. 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 six months ended June 30, 2022 and 2021, respectively: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Net income (loss) attributable to Holdings $ 1,728 $ 123 $ 2,301 $ (1,365) Adjustments related to: Variable annuity product features (1,924) 1,193 (2,525) 3,460 Investment (gains) losses 231 (420) 557 (603) Net actuarial (gains) losses related to pension and other postretirement benefit obligations 19 26 38 60 Other adjustments (1) (2) (3) 148 7 368 531 Income tax expense (benefit) related to above adjustments 321 (171) 329 (726) Non-recurring tax items 3 — 6 1 Non-GAAP Operating Earnings $ 526 $ 758 $ 1,074 $ 1,358 Operating earnings (loss) by segment: Individual Retirement $ 274 $ 414 $ 567 $ 777 Group Retirement $ 131 $ 171 $ 281 $ 322 Investment Management and Research $ 101 $ 126 $ 237 $ 247 Protection Solutions $ 101 $ 63 $ 136 $ 104 Corporate and Other (4) $ (81) $ (16) $ (147) $ (92) ______________ (1) Includes separation costs of $16 million and $37 million for the three and six months ended June 30, 2021, respectively. Separation costs were completed during 2021. (2) Includes certain gross legal expenses related to the COI litigation of $107 million, $0 million, $166 million and $180 million for the three and six months ended June 30, 2022 and 2021, respectively. Includes policyholder benefit costs of $0 million and $75 million for the three and six months ended June 30, 2022 stemming from a deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market. (3) Includes Non-GMxB related derivative hedge gains and losses of ($38) million, ($100) million, ($40) million and $144 million for the three and six months ended June 30, 2022 and 2021, respectively. (4) Includes interest expense and financing fees of $52 million, $57 million, $105 million and $115 million for the three and six months ended June 30, 2022 and 2021, 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 six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Segment revenues: Individual Retirement (1) $ 1,022 $ 979 $ 2,044 $ 1,959 Group Retirement (1) 301 346 635 675 Investment Management and Research (2) 1,003 1,072 2,138 2,076 Protection Solutions (1) 836 832 1,687 1,658 Corporate and Other (1) 350 386 724 720 Adjustments related to: Variable annuity product features 1,944 (1,212) 2,575 (3,494) Investment gains (losses), net (231) 420 (557) 603 Other adjustments to segment revenues (57) 127 (134) (94) Total revenues $ 5,168 $ 2,950 $ 9,112 $ 4,103 ______________ (1) Includes investment expenses charged by AB of $23 million, $20 million, $44 million and $39 million for the three and six months ended June 30, 2022 and 2021, respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of $32 million, $32 million, $60 million and $62 million for the three and six months ended June 30, 2022 and 2021, respectively, are included in segment revenues of the Investment Management and Research segment. The table below presents total assets by segment as of June 30, 2022 and 2021: June 30, 2022 December 31, 2021 (in millions) Total assets by segment: Individual Retirement $ 126,393 $ 143,663 Group Retirement 40,356 55,368 Investment Management and Research 11,974 11,602 Protection Solutions 38,384 50,686 Corporate and Other 36,375 30,943 Total assets $ 253,482 $ 292,262 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Weighted-average common shares outstanding: Weighted-average common shares outstanding — basic 378.9 424.2 383.7 429.2 Effect of dilutive potential common shares: Employee share awards (1) 1.7 4.1 2.3 — Weighted-average common shares outstanding — diluted (2) 380.6 428.3 386.1 429.2 Net income (loss): Net income (loss) $ 1,773 $ 223 $ 2,412 $ (1,177) Less: Net income (loss) attributable to the noncontrolling interest 45 100 111 188 Net income (loss) attributable to Holdings 1,728 123 2,301 (1,365) Less: Preferred stock dividends 26 26 40 39 Net income (loss) available to Holdings’ common shareholders $ 1,702 $ 97 $ 2,261 $ (1,404) Earnings per common share: Basic $ 4.49 $ 0.23 $ 5.89 $ (3.27) Diluted $ 4.47 $ 0.23 $ 5.86 $ (3.27) _____________ (1) Calculated using the treasury stock method. (2) Due to net loss for the six months ended June 30, 2021 approximately 3.9 million share awards were excluded from the diluted EPS calculation. For the three and six months ended June 30, 2022 and 2021, 3.3 million, 3.2 million, 4.5 million and 8.6 million of outstanding stock awards, respectively, were not included in the computation of diluted earnings per share because their effect was anti-dilutive. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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. 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, 2021. 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 “second quarter 2022” and “second quarter 2021” refer to the three months ended June 30, 2022 and 2021, respectively. The terms “first six months of 2022” and “first six months of 2021” refer to the six months ended June 30, 2022 and 2021, respectively. |
Recent Accounting Pronouncements and Future Adoption of New Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of June 30, 2022, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. 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: 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. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 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. 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. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement. 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. 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. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. The Company continues to progress with implementation efforts and the evaluation of the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Due to its extensive nature, the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial statements, as well as systems, processes and controls. Effective January 1, 2023, the new guidance will be adopted using the modified retrospective approach, except for MRBs which will use the full retrospective approach. The Company has created a governance framework and implementation plan to ensure timely adoption of the guidance. In preparation for implementation, the Company continues to refine key accounting policy decisions, modernize processes and update internal controls. These changes include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. The impact on total equity of applying this ASU is estimated to be positive to the current amount of reported total equity as of June 30, 2022. As of June 30, 2022, a positive impact to AOCI is expected due to increases in the Company’s estimate of its non-performance risk on variable annuity guarantees accounted for as MRBs for the first time under the guidance. The estimated impact to the retained earnings element of total equity as of June 30, 2022, due to accounting for variable annuity guarantees as MRBs that are not currently measured at fair value, is mitigated by the Company’s present use of a near industry low interest rate assumption of 2.25% on GMIB business. Because movements in equity markets, interest rates and credit spreads are unpredictable and at times volatile, it is possible that the estimated effects of adoption could change materially between June 30, 2022 and January 1, 2023. |
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 June 30, 2022 and December 31, 2021, respectively, Equitable Financial holds $93 million and $109 million of equity interests in the CLOs. The Company consolidated the CLOs as of June 30, 2022 and December 31, 2021 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority ownership of AB, which functions as the 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 June 30, 2022, Equitable Financial holds $71 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 June 30, 2022 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 $1.6 billion and $1.6 billion notes issued by consolidated variable interest entities, at fair value using the fair value option with total liabilities of $1.2 billion and $1.2 billion at June 30, 2022 and December 31, 2021, respectively . The unpaid outstanding principal balance of the notes and short-term borrowing is $1.4 billion and $1.3 billion at June 30, 2022 and December 31, 2021. Consolidated Limited Partnerships and LLCs As of June 30, 2022 and December 31, 2021 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 June 30, 2022 and December 31, 2021 are total assets of $242 million and $219 million, respectively related to these VIEs. Consolidated AB-Sponsored Investment Funds Included in the Company’s consolidated balance sheet as of June 30, 2022 and December 31, 2021 are assets of $497 million and $734 million, liabilities of $38 million and $87 million, and redeemable noncontrolling interests of $309 million and $421 million , respectively, associated with the consolidation of AB-sponsored investment funds under the VIE model. There were no consolidated AB-sponsored investment funds under the VOE model as of June 30, 2022 and December 31, 2021. 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 June 30, 2022 and December 31, 2021 respectively, the Company held approximately $2.3 billion and $2.1 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 $278.0 billion and $245.6 billion as of June 30, 2022 and December 31, 2021 respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $2.3 billion and $2.1 billion and approximately $1.3 billion and $1.2 billion of unfunded commitments as of June 30, 2022 and December 31, 2021, 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 June 30, 2022 and December 31, 2021, the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $40.3 billion and $68.9 billion, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $5 million and $9 million as of June 30, 2022 and December 31, 2021. 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. There were no material assumption updates or model changes in the first and second quarters of 2022 or 2021. |
Fair Value Disclosures | U.S. GAAP establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. As of June 30, 2022 and December 31, 2021, no assets or liabilities were required to be measured at fair value on a non-recurring basis. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | 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: 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. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 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. 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. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement. 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. 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. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. The Company continues to progress with implementation efforts and the evaluation of the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Due to its extensive nature, the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial statements, as well as systems, processes and controls. Effective January 1, 2023, the new guidance will be adopted using the modified retrospective approach, except for MRBs which will use the full retrospective approach. The Company has created a governance framework and implementation plan to ensure timely adoption of the guidance. In preparation for implementation, the Company continues to refine key accounting policy decisions, modernize processes and update internal controls. These changes include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. The impact on total equity of applying this ASU is estimated to be positive to the current amount of reported total equity as of June 30, 2022. As of June 30, 2022, a positive impact to AOCI is expected due to increases in the Company’s estimate of its non-performance risk on variable annuity guarantees accounted for as MRBs for the first time under the guidance. The estimated impact to the retained earnings element of total equity as of June 30, 2022, due to accounting for variable annuity guarantees as MRBs that are not currently measured at fair value, is mitigated by the Company’s present use of a near industry low interest rate assumption of 2.25% on GMIB business. Because movements in equity markets, interest rates and credit spreads are unpredictable and at times volatile, it is possible that the estimated effects of adoption could change materially between June 30, 2022 and January 1, 2023. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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) June 30, 2022 Fixed Maturities: Corporate (1) $ 52,025 $ 19 $ 164 $ 5,728 $ 46,442 U.S. Treasury, government and agency 7,417 — 55 493 6,979 States and political subdivisions 684 — 24 61 647 Foreign governments 1,094 — 6 141 959 Residential mortgage-backed (2) 514 — 3 8 509 Asset-backed (3) 8,735 — 4 406 8,333 Commercial mortgage-backed 3,728 — 1 388 3,341 Redeemable preferred stock 41 — 3 — 44 Total at June 30, 2022 $ 74,238 $ 19 $ 260 $ 7,225 $ 67,254 December 31, 2021: Fixed Maturities: Corporate (1) $ 50,172 $ 22 $ 2,601 $ 240 $ 52,511 U.S. Treasury, government and agency 13,056 — 2,344 15 15,385 States and political subdivisions 586 — 78 2 662 Foreign governments 1,124 — 42 14 1,152 Residential mortgage-backed (2) 90 — 8 — 98 Asset-backed (3) 5,933 — 21 20 5,934 Commercial mortgage-backed 2,427 — 19 25 2,421 Redeemable preferred stock 41 — 12 — 53 Total at December 31, 2021 $ 73,429 $ 22 $ 5,125 $ 316 $ 78,216 ______________ (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. |
Contractual Maturities of Available-for-Sale Fixed Maturities | The contractual maturities of AFS fixed maturities as of June 30, 2022 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) June 30, 2022 Contractual maturities: Due in one year or less $ 1,354 $ 1,346 Due in years two through five 14,662 14,189 Due in years six through ten 18,470 16,969 Due after ten years 26,715 22,523 Subtotal 61,201 55,027 Residential mortgage-backed 514 509 Asset-backed 8,735 8,333 Commercial mortgage-backed 3,728 3,341 Redeemable preferred stock 41 44 Total at June 30, 2022 $ 74,219 $ 67,254 |
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 allowance for credit losses for AFS fixed maturities for the three and six months ended June 30, 2022 and 2021: Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit Losses for AFS Fixed Maturities Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Proceeds from sales $ 3,344 $ 9,866 $ 10,735 $ 17,075 Gross gains on sales $ 15 $ 557 $ 44 $ 848 Gross losses on sales $ (227) $ (38) $ (591) $ (154) Net change in Allowance for Credit losses $ 2 $ (6) $ 3 $ (12) |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Balance, beginning of period $ 43 $ 38 $ 44 $ 32 Previously recognized impairments on securities that matured, paid, prepaid or sold (13) (3) (15) (3) 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 1 6 1 8 Additional credit losses this period on securities previously impaired 1 1 2 5 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 June 30, $ 32 $ 42 $ 32 $ 42 ______________ (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, April 1, 2022 $ (1,287) $ 290 $ (237) $ 259 $ (975) Net investment gains (losses) arising during the period (5,889) — — — (5,889) Reclassification adjustment: Included in net income (loss) 214 — — — 214 Excluded from net income (loss) — — — — — Other — — — — — Impact of net unrealized investment gains (losses) — 890 (96) 1,025 1,819 Net unrealized investment gains (losses) excluding credit losses (6,962) 1,180 (333) 1,284 (4,831) Net unrealized investment gains (losses) with credit losses (3) — — 1 (2) Balance, June 30, 2022 $ (6,965) $ 1,180 $ (333) $ 1,285 $ (4,833) Balance, April 1, 2021 $ 3,466 $ (947) $ (307) $ (465) $ 1,747 Net investment gains (losses) arising during the period 2,293 — — — 2,293 Reclassification adjustment: Included in net income (loss) (407) — — — (407) Other (1) — — — — — Impact of net unrealized investment gains (losses) — (215) (106) (328) (649) Net unrealized investment gains (losses) excluding credit losses 5,352 (1,162) (413) (793) 2,984 Net unrealized investment gains (losses) with credit losses 9 (3) (1) (1) 4 Balance, June 30, 2021 $ 5,361 $ (1,165) $ (414) $ (794) $ 2,988 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, 2022 $ 4,809 $ (782) $ (418) $ (757) $ 2,852 Net investment gains (losses) arising during the period (12,314) — — — (12,314) Reclassification adjustment: Included in net income (loss) 548 — — — 548 Other — — — — — Impact of net unrealized investment gains (losses) — 1,961 85 2,040 4,086 Net unrealized investment gains (losses) excluding credit losses (6,957) 1,179 (333) 1,283 (4,828) Net unrealized investment gains (losses) with credit losses (8) 1 — 2 (5) Balance, June 30, 2022 $ (6,965) $ 1,180 $ (333) $ 1,285 $ (4,833) Balance, January 1, 2021 $ 8,811 $ (1,548) $ (1,065) $ (1,302) $ 4,896 Net investment gains (losses) arising during the period (2,836) — — — (2,836) Reclassification adjustment: Included in net income (loss) (582) — — — (582) Other (1) (33) — — — (33) Impact of net unrealized investment gains (losses) — 384 652 508 1,544 Net unrealized investment gains (losses) excluding credit losses 5,360 (1,164) (413) (794) 2,989 Net unrealized investment gains (losses) with credit losses 1 (1) (1) — (1) Balance, June 30, 2021 $ 5,361 $ (1,165) $ (414) $ (794) $ 2,988 _____________ (1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments. |
Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities | The following tables disclose the fair values and gross unrealized losses of the 4,942 issues as of June 30, 2022 and the 2,060 issues as of December 31, 2021 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) June 30, 2022 Fixed Maturities: Corporate $ 38,094 $ 5,236 $ 2,883 $ 489 $ 40,977 $ 5,725 U.S. Treasury, government and agency 5,006 481 87 12 5,093 493 States and political subdivisions 289 57 11 4 300 61 Foreign governments 734 119 101 22 835 141 Residential mortgage-backed 442 8 1 — 443 8 Asset-backed 7,757 394 206 12 7,963 406 Commercial mortgage-backed 3,145 358 164 30 3,309 388 Total at June 30, 2022 $ 55,467 $ 6,653 $ 3,453 $ 569 $ 58,920 $ 7,222 December 31, 2021: Fixed Maturities: Corporate $ 10,571 $ 163 $ 1,633 $ 75 $ 12,204 $ 238 U.S. Treasury, government and agency 993 11 105 4 1,098 15 States and political subdivisions 120 2 11 — 131 2 Foreign governments 349 6 92 8 441 14 Residential mortgage-backed — — — — — — Asset-backed 3,865 20 38 — 3,903 20 Commercial mortgage-backed 1,527 21 96 4 1,623 25 Total at December 31, 2021 $ 17,425 $ 223 $ 1,975 $ 91 $ 19,400 $ 314 |
Financing Receivable, Allowance for Credit Loss | The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the six months ended June 30, 2022 and 2021 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 47 $ 70 $ 57 $ 77 Current-period provision for expected credit losses 11 (11) 1 (18) Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — Net change in allowance 11 (11) 1 (18) Balance, end of period $ 58 $ 59 $ 58 $ 59 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Agricultural mortgages: Balance, beginning of period $ 6 $ 4 $ 5 $ 4 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 $ 6 $ 4 $ 6 $ 4 Total allowance for credit losses $ 64 $ 63 $ 64 $ 63 |
Financing Receivable Credit Quality Indicators | The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of June 30, 2022 and December 31, 2021. LTV Ratios (1) June 30, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: 0% - 50% $ 188 $ — $ — $ — $ 119 $ 1,202 $ — $ — $ 1,509 50% - 70% 575 1,790 1,374 276 634 2,969 221 — 7,839 70% - 90% 136 328 147 411 450 1,055 — 35 2,562 90% plus — — — — — — — — — Total commercial $ 899 $ 2,118 $ 1,521 $ 687 $ 1,203 $ 5,226 $ 221 $ 35 $ 11,910 Agricultural: 0% - 50% $ 103 $ 192 $ 214 $ 124 $ 129 $ 788 $ — $ — $ 1,550 50% - 70% 166 180 241 87 94 300 — — 1,068 70% - 90% — — — — — 16 — — 16 90% plus — — — — — — — — — Total agricultural $ 269 $ 372 $ 455 $ 211 $ 223 $ 1,104 $ — $ — $ 2,634 Total mortgage loans: June 30, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) 0% - 50% $ 291 $ 192 $ 214 $ 124 $ 248 $ 1,990 $ — $ — $ 3,059 50% - 70% 741 1,970 1,615 363 728 3,269 221 — 8,907 70% - 90% 136 328 147 411 450 1,071 — 35 2,578 90% plus — — — — — — — — — Total mortgage loans $ 1,168 $ 2,490 $ 1,976 $ 898 $ 1,426 $ 6,330 $ 221 $ 35 $ 14,544 Debt Service Coverage Ratios (2 ) June 30, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 420 $ 1,143 $ 1,243 $ 104 $ 631 $ 2,078 $ — $ — $ 5,619 1.8x to 2.0x 94 187 134 262 186 660 124 — 1,647 1.5x to 1.8x 270 275 49 266 190 1,051 68 — 2,169 1.2x to 1.5x 35 260 95 11 48 1,006 — — 1,455 1.0x to 1.2x — 253 — 44 148 360 29 35 869 Less than 1.0x 80 — — — — 71 — — 151 Total commercial $ 899 $ 2,118 $ 1,521 $ 687 $ 1,203 $ 5,226 $ 221 $ 35 $ 11,910 Agricultural: Greater than 2.0x $ 48 $ 40 $ 63 $ 22 $ 12 $ 215 $ — $ — $ 400 1.8x to 2.0x 11 58 36 25 14 71 — — 215 1.5x to 1.8x 38 43 112 28 23 209 — — 453 1.2x to 1.5x 73 156 175 100 101 332 — — 937 1.0x to 1.2x 83 74 65 30 69 264 — — 585 Less than 1.0x 16 1 4 6 4 13 — — 44 Total agricultural $ 269 $ 372 $ 455 $ 211 $ 223 $ 1,104 $ — $ — $ 2,634 Total mortgage loans: Greater than 2.0x $ 468 $ 1,183 $ 1,306 $ 126 $ 643 $ 2,293 $ — $ — $ 6,019 1.8x to 2.0x 105 245 170 287 200 731 124 — 1,862 1.5x to 1.8x 308 318 161 294 213 1,260 68 — 2,622 1.2x to 1.5x 108 416 270 111 149 1,338 — — 2,392 1.0x to 1.2x 83 327 65 74 217 624 29 35 1,454 Less than 1.0x 96 1 4 6 4 84 — — 195 Total mortgage loans $ 1,168 $ 2,490 $ 1,976 $ 898 $ 1,426 $ 6,330 $ 221 $ 35 $ 14,544 ______________ (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, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ — $ — $ 184 $ 293 $ 1,009 $ — $ — $ 1,486 50% - 70% 1,944 1,286 339 619 491 2,533 139 — 7,351 70% - 90% 190 236 412 415 276 972 — — 2,501 90% plus — — — 35 5 73 — — 113 Total commercial $ 2,134 $ 1,522 $ 751 $ 1,253 $ 1,065 $ 4,587 $ 139 $ — $ 11,451 Agricultural: 0% - 50% $ 180 $ 212 $ 128 $ 129 $ 119 $ 738 $ — $ — $ 1,506 50% - 70% 200 268 102 126 87 338 — — 1,121 70% - 90% — — — — — 17 — — 17 90% plus — — — — — — — — — Total agricultural $ 380 $ 480 $ 230 $ 255 $ 206 $ 1,093 $ — $ — $ 2,644 Total mortgage loans: 0% - 50% $ 180 $ 212 $ 128 $ 313 $ 412 $ 1,747 $ — $ — $ 2,992 50% - 70% 2,144 1,554 441 745 578 2,871 139 — 8,472 70% - 90% 190 236 412 415 276 989 — — 2,518 90% plus — — — 35 5 73 — — 113 Total mortgage loans $ 2,514 $ 2,002 $ 981 $ 1,508 $ 1,271 $ 5,680 $ 139 $ — $ 14,095 Debt Service Coverage Ratios (2) December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 1,143 $ 1,243 $ 210 $ 772 $ 485 $ 2,235 $ — $ — $ 6,088 1.8x to 2.0x 185 135 182 46 161 372 68 — 1,149 1.5x to 1.8x 275 49 284 211 166 919 48 — 1,952 1.2x to 1.5x 264 95 75 101 253 701 — — 1,489 1.0x to 1.2x 267 — — 88 — 287 23 — 665 Less than 1.0x — — — 35 — 73 — — 108 Total commercial $ 2,134 $ 1,522 $ 751 $ 1,253 $ 1,065 $ 4,587 $ 139 $ — $ 11,451 Agricultural: Greater than 2.0x $ 49 $ 64 $ 25 $ 22 $ 24 $ 210 $ — $ — $ 394 1.8x to 2.0x 52 37 25 14 14 70 — — 212 1.5x to 1.8x 43 113 28 22 41 193 — — 440 1.2x to 1.5x 161 179 112 116 72 355 — — 995 1.0x to 1.2x 75 83 31 77 54 226 — — 546 Less than 1.0x — 4 9 4 1 39 — — 57 Total agricultural $ 380 $ 480 $ 230 $ 255 $ 206 $ 1,093 $ — $ — $ 2,644 Total mortgage loans: Greater than 2.0x $ 1,192 $ 1,307 $ 235 $ 794 $ 509 $ 2,445 $ — $ — $ 6,482 1.8x to 2.0x 237 172 207 60 175 442 68 — 1,361 1.5x to 1.8x 318 162 312 233 207 1,112 48 — 2,392 1.2x to 1.5x 425 274 187 217 325 1,056 — — 2,484 1.0x to 1.2x 342 83 31 165 54 513 23 — 1,211 Less than 1.0x — 4 9 39 1 112 — — 165 Total mortgage loans $ 2,514 $ 2,002 $ 981 $ 1,508 $ 1,271 $ 5,680 $ 139 $ — $ 14,095 ______________ (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 June 30, 2022 and December 31, 2021, 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) June 30, 2022: Mortgage loans: Commercial $ — $ — $ — $ — $ 11,910 $ 11,910 $ — $ 11,910 $ — $ — Agricultural 9 1 19 29 2,589 2,618 16 2,634 — — Total $ 9 $ 1 $ 19 $ 29 $ 14,499 $ 14,528 $ 16 $ 14,544 $ — $ — December 31, 2021: Mortgage loans: Commercial $ — $ — $ — $ — $ 11,451 $ 11,451 $ — $ 11,451 $ — $ — Agricultural 1 1 25 27 2,601 2,628 16 2,644 — — Total $ 1 $ 1 $ 25 $ 27 $ 14,052 $ 14,079 $ 16 $ 14,095 $ — $ — _______________ |
Unrealized and Realized Gains (Losses) from Equity Securities and Net Investment Income (Loss) from Trading Securities and Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option | The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three and six months ended June 30, 2022 and 2021. Unrealized and Realized Gains (Losses) from Equity Securities Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (70) $ 21 $ (110) $ 40 Net investment gains (losses) recognized on securities sold during the period 2 10 (11) 4 Unrealized and realized gains (losses) on equity securities $ (68) $ 31 $ (121) $ 44 The table below shows a breakdown of net investment income (loss) from trading securities during the three and six months ended June 30, 2022 and 2021. Net Investment Income (Loss) from Trading Securities Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (108) $ (176) $ (202) $ (246) Net investment gains (losses) recognized on securities sold during the period 4 184 6 213 Unrealized and realized gains (losses) on trading securities (104) 8 (196) (33) Interest and dividend income from trading securities 2 43 18 81 Net investment income (loss) from trading securities $ (102) $ 51 $ (178) $ 48 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 six months ended June 30, 2022 and 2021. Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (8) $ (2) $ (13) $ (2) Net investment gains (losses) recognized on securities sold during the period — 1 6 2 Unrealized and realized gains (losses) from fixed maturities (8) (1) (7) — Interest and dividend income from fixed maturities (17) 9 (1) 10 Net investment income (loss) from fixed maturities $ (25) $ 8 $ (8) $ 10 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 December 31, 2021 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 $ 1,307 $ 63 $ 86 $ 921 $ 7 $ 42 Interest swaps 954 — 298 955 — 395 Total: designated for hedge accounting 2,261 63 384 1,876 7 437 Derivatives: not designated for hedge accounting (1) Equity contracts: Futures 4,131 2 — 2,640 — 1 Swaps 10,340 16 10 13,378 6 4 Options 37,766 6,559 3,722 48,489 12,024 5,065 Interest rate contracts: Futures 9,824 — — 12,575 — — Swaps 1,319 15 72 1,889 — 46 Swaptions — — — — — — Credit contracts: Credit default swaps 282 17 9 774 9 10 Currency contracts Currency swaps 181 9 — 541 1 — Currency forwards 78 21 21 79 8 7 Other freestanding contracts: Margin — 224 — — 125 — Collateral — 138 3,695 — 178 6,160 Total: not designated for hedge accounting 63,921 7,001 7,529 80,365 12,351 11,293 Embedded derivatives: Amounts due from reinsurers (5) — 4,681 — — 5,813 — GMIB reinsurance contracts (2) — 1,498 — — 1,848 — GMxB derivative features liability (3) — — 6,180 — — 8,525 SCS, SIO, MSO and IUL indexed features (4) — — 2,636 — — 6,773 Total embedded derivatives — 6,179 8,816 — 7,661 15,298 Total derivative instruments $ 66,182 $ 13,243 $ 16,729 $ 82,241 $ 20,019 $ 27,028 ___________ (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) 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 June 30, 2022 Six Months Ended June 30, 2022 (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 $ 18 $ 1 $ 8 $ (8) $ 14 $ 2 $ (10) $ 5 Interest swaps (27) — — 168 (41) — — 148 Total: designated for hedge accounting (9) 1 8 160 (27) 2 (10) 153 Derivatives: not Designated for hedge accounting Equity contracts Futures 398 — — — 456 — — — Swaps 2,043 — — — 2,778 — — — Options (3,446) — — — (3,730) — — — Interest rate contracts Futures (546) — — — (1,058) — — — Swaps (154) — — — (303) — — — Swaptions — — — — — — — — Credit contracts Credit default swaps 13 — — — 14 — — — Currency contracts Currency swaps 13 — — — 18 — — — Currency forwards 2 — — — 2 — — — Other freestanding contracts Margin — — — — — — — — Collateral — — — — — — — — Total: not designated for hedge accounting (1,677) — — — (1,823) — — — Embedded derivatives Amounts due from reinsurers (376) — — — (1,142) — — — GMIB reinsurance contracts (79) — — — (339) — — — GMxB derivative features liability (2) 827 — — — 2,515 — — — SCS, SIO,MSO and IUL indexed features 3,543 — — — 3,866 — — — Total embedded derivatives $ 3,915 $ — $ — $ — $ 4,900 $ — $ — $ — Total derivative instruments $ 2,229 $ 1 $ 8 $ 160 $ 3,050 $ 2 $ (10) $ 153 Three Months Ended June 30, 2021 Six Months Ended June 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/interest rate Currency swaps $ — $ — $ (17) $ — $ — $ — $ (17) $ — Interest swaps $ (24) $ — $ — $ 6 $ (28) $ — $ — $ 33 Total: designated for hedge accounting (24) — (17) 6 (28) — (17) 33 Derivatives: not designated for hedge accounting Equity contracts Futures (161) — — — (449) — — — Swaps (1,339) — — — (2,610) — — — Options 1,201 — — — 2,346 — — — Interest rate contracts Futures 152 — — — (798) — — — Swaps 470 — — — (2,442) — — — Swaptions — — — — — — — — Credit contracts Credit default swaps (1) — — — (1) — — — Currency contracts Currency swaps — — — — — — — — Currency forwards — — — — 1 — — — Other freestanding contracts Margin — — — — — — — — Collateral — — — — — — — — Total: not designated for hedge accounting 322 — — — (3,953) — — — Embedded derivatives Amounts due from reinsurers 242 — — — 242 — — — GMIB reinsurance contracts 120 — — — (458) — — — GMxB derivative features liability (2) (674) — — — 2,735 — — — SCS, SIO,MSO and IUL indexed features (1,183) — — — (2,328) — — — Total embedded derivatives $ (1,495) $ — $ — $ — $ 191 $ — $ — $ — Total derivative instruments $ (1,197) $ — $ (17) $ 6 $ (3,790) $ — $ (17) $ 33 ______________ (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 six months ended June 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. Roll-forward of Cash flow hedges in AOCI Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Balance, beginning of period $ (215) $ (132) $ (208) $ (126) Amount recorded in AOCI Currency swaps 3 (17) — (17) Interest swaps 137 (56) 98 (78) Total amount recorded in AOCI 140 (73) 98 (95) Amount reclassified from AOCI to income Currency swaps (10) 17 6 17 Interest swaps 31 30 50 46 Total amount reclassified from AOCI to income 21 47 56 63 Balance, end of period $ (54) $ (158) $ (54) $ (158) _______________ (1) The Company does not estimate the amount of the deferred losses in AOCI at three and six months ended June 30, 2022 and 2021 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 June 30, 2022 and December 31, 2021: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of June 30, 2022 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) $ 7,065 $ 6,825 $ 240 $ — $ 240 Other financial assets 1,920 — 1,920 — 1,920 Other invested assets $ 8,985 $ 6,825 $ 2,160 $ — $ 2,160 Liabilities: Derivative liabilities (2) $ 7,913 $ 6,825 $ 1,088 $ — $ 1,088 Other financial liabilities 3,778 — 3,778 — 3,778 Other liabilities $ 11,691 $ 6,825 $ 4,866 $ — $ 4,866 ______________ (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, 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) $ 12,358 $ 10,756 $ 1,602 $ (961) $ 641 Other financial assets 1,989 — 1,989 — 1,989 Other invested assets $ 14,347 $ 10,756 $ 3,591 $ (961) $ 2,630 Liabilities: Derivative liabilities (2) $ 10,770 $ 10,756 $ 14 $ — $ 14 Other financial liabilities 3,919 — 3,919 — 3,919 Other liabilities $ 14,689 $ 10,756 $ 3,933 $ — $ 3,933 ______________ (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) | 6 Months Ended |
Jun. 30, 2022 | |
Closed Block Disclosure [Abstract] | |
Schedule of Closed Block Assets and Liabilities | Summarized financial information for the Company’s Closed Block is as follows: June 30, 2022 December 31, 2021 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 5,806 $ 5,928 Policyholder dividend obligation — — Other liabilities 66 39 Total Closed Block liabilities 5,872 5,967 Assets Designated to the Closed Block: Fixed maturities AFS, at fair value (amortized cost of $3,189 and $3,185) (allowance for credit losses of $0 and $0) 3,054 3,390 Mortgage loans on real estate (net of allowance for credit losses of $3 and $4) 1,693 1,771 Policy loans 581 602 Cash and other invested assets 70 63 Other assets 122 90 Total assets designated to the Closed Block 5,520 5,916 Excess of Closed Block liabilities over assets designated to the Closed Block 352 51 Amounts included in AOCI: Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $0; and net of income tax: $28 and $(43) (96) 172 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 256 $ 223 |
Closed Block Operations, Net Results | The Company’s Closed Block revenues and expenses were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Revenues: Premiums and other income $ 31 $ 37 $ 64 $ 76 Net investment income (loss) 55 60 113 120 Investment gains (losses), net (3) 2 (2) 2 Total revenues 83 99 175 198 Benefits and Other Deductions: Policyholders’ benefits and dividends 80 90 156 196 Other operating costs and expenses — — — 1 Total benefits and other deductions 80 90 156 197 Net income (loss), before income taxes 3 9 19 1 Income tax (expense) benefit 3 — 4 (1) Net income (loss) $ 6 $ 9 $ 23 $ — |
Closed Block Dividend Obligation | A reconciliation of the Company’s policyholder dividend obligation follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Beginning balance $ — $ 28 $ — $ 160 Unrealized investment gains (losses) — 44 — (88) Ending balance $ — $ 72 $ — $ 72 |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 Six Months Ended June 30, 2022 and 2021 GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Balance, April 1, 2022 $ 5,040 $ — $ (2,253) $ 6,024 $ — $ (3,750) Paid guarantee benefits (148) — 61 (145) — (8) Other changes in reserve 204 — (84) 286 — 51 Balance, June 30, 2022 $ 5,096 $ — $ (2,276) $ 6,165 $ — $ (3,707) Balance, April 1, 2021 $ 5,086 $ 72 $ (84) $ 5,966 $ 144 $ (1,907) Paid guarantee benefits (114) (6) 20 (92) 3 11 Other changes in reserve 119 8 (22) 31 (7) (131) Impact of the Venerable Transaction (1) (2) — (74) (2,176) — (140) (2,141) Balance, June 30, 2021 $ 5,091 $ — $ (2,262) $ 5,905 $ — $ (4,168) GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Balance, January 1, 2022 $ 4,951 $ — $ (2,216) $ 5,892 $ — $ (3,968) Paid guarantee benefits (281) — 117 (266) — 7 Other changes in reserve 426 — (177) 539 — 254 Balance, June 30, 2022 $ 5,096 $ — $ (2,276) $ 6,165 $ — $ (3,707) Balance, January 1, 2021 $ 5,097 $ 72 $ (88) $ 6,026 $ 196 $ (2,488) Paid guarantee benefits (247) (12) 23 (184) (49) 25 Other changes in reserve 241 14 (21) 63 (7) 436 Impact of the Venerable Transaction — (74) (2,176) — (140) (2,141) Balance, June 30, 2021 $ 5,091 $ — $ (2,262) $ 5,905 $ — $ (4,168) ______________ (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 of the Notes to these Consolidated Financial Statements 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 June 30, 2022 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 $ 16,501 $ 90 $ 49 $ 153 $ 16,793 Separate Accounts 47,469 7,745 2,577 26,538 84,329 Total Account Values $ 63,970 $ 7,835 $ 2,626 $ 26,691 $ 101,122 NAR, gross $ 720 $ 1,424 $ 1,848 $ 22,522 $ 26,514 NAR, net of amounts reinsured $ 711 $ 1,286 $ 1,337 $ 12,051 $ 15,385 Average attained age of policyholders (in years) 51.5 69.4 75.8 71.4 55.7 Percentage of policyholders over age 70 11.9 % 51.6 % 73.6 % 59.2 % 21.0 % 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 $ 199 $ 214 Separate Accounts — — 21,461 27,973 49,434 Total Account Values $ — $ — $ 21,476 $ 28,172 $ 49,648 NAR, gross $ — $ — $ 652 $ 9,749 $ 10,401 NAR, net of amounts reinsured $ — $ — $ 209 $ 4,023 $ 4,232 Average attained age of policyholders (in years) N/A N/A 65.4 71.1 68.9 Weighted average years remaining until annuitization N/A N/A 5.7 0.5 2.5 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 June 30, 2022 December 31, 2021 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 39,786 $ 14,596 $ 52,771 $ 20,015 Fixed income 4,738 2,179 5,391 2,507 Balanced 38,682 32,396 48,390 40,491 Other 1,123 263 1,025 263 Total $ 84,329 $ 49,434 $ 107,577 $ 63,276 |
Schedule of 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Beginning balance $ 1,112 $ 1,050 $ 1,096 $ 1,022 Paid guarantee benefits (8) (13) (16) (28) Other changes in reserves 30 33 54 76 Ending balance $ 1,134 $ 1,070 $ 1,134 $ 1,070 _____________ (1) There were no amounts of reinsurance ceded in any period presented. |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, AFS: Corporate (1) $ — $ 44,675 $ 1,767 $ 46,442 U.S. Treasury, government and agency — 6,979 — 6,979 States and political subdivisions — 617 30 647 Foreign governments — 959 — 959 Residential mortgage-backed (2) — 509 — 509 Asset-backed (3) — 8,315 18 8,333 Commercial mortgage-backed — 3,316 25 3,341 Redeemable preferred stock — 44 — 44 Total fixed maturities, AFS — 65,414 1,840 67,254 Fixed maturities, at fair value using the fair value option — 1,139 423 1,562 Other equity investments (7) 305 495 13 813 Trading securities 280 206 52 538 Other invested assets: Short-term investments 7 164 50 221 Assets of consolidated VIEs/VOEs 75 386 5 466 Swaps — (363) — (363) Credit default swaps — 9 — 9 Futures 2 — — 2 Options — 2,837 — 2,837 Total other invested assets 84 3,033 55 3,172 Cash equivalents 2,764 548 — 3,312 Segregated securities — 1,747 — 1,747 Amounts due from reinsurer (6) — — 4,681 4,681 GMIB reinsurance contracts asset — — 1,498 1,498 Separate Accounts assets (4) 113,384 2,555 1 115,940 Total Assets $ 116,817 $ 75,137 $ 8,563 $ 200,517 Liabilities Notes issued by consolidated VIE’s, at fair value using the fair value option (5) $ — $ 1,387 $ — $ 1,387 GMxB derivative features’ liability — — 6,180 6,180 SCS, SIO, MSO and IUL indexed features’ liability — 2,636 — 2,636 Liabilities of consolidated VIEs and VOEs 15 4 — 19 Contingent payment arrangements — — 42 42 Total Liabilities $ 15 $ 4,027 $ 6,222 $ 10,264 ______________ (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 June 30, 2022, the fair value of such investments was $438 million. (5) Includes CLO short-term debt of $245 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 $8 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 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction. (7) Includes short position equity securities of $15 million that are reported in other liabilities. Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, AFS: Corporate (1) $ — $ 51,007 $ 1,504 $ 52,511 U.S. Treasury, government and agency — 15,385 — 15,385 States and political subdivisions — 627 35 662 Foreign governments — 1,152 — 1,152 Residential mortgage-backed (2) — 98 — 98 Asset-backed (3) — 5,926 8 5,934 Commercial mortgage-backed (2) — 2,401 20 2,421 Redeemable preferred stock — 53 — 53 Total fixed maturities, AFS — 76,649 1,567 78,216 Fixed maturities, at fair value using the fair value option 1,440 201 1,641 Other equity investments 322 457 5 784 Trading securities 340 226 65 631 Other invested assets: Short-term investments — 30 — 30 Assets of consolidated VIEs/VOEs 166 450 11 627 Swaps — (473) — (473) Credit default swaps — (1) — (1) Futures (1) — — (1) Options — 6,959 — 6,959 Swaptions — — — — Total other invested assets 165 6,965 11 7,141 Cash equivalents 3,275 293 — 3,568 Segregated securities — 1,504 — 1,504 Amounts due from reinsurer — — 5,813 5,813 GMIB reinsurance contracts asset — — 1,848 1,848 Separate Accounts assets (4) 144,124 2,572 1 146,697 Total Assets $ 148,226 $ 90,106 $ 9,511 $ 247,843 Liabilities Notes issued by consolidated VIE’s, at fair value using the fair value option (5) $ — $ 1,277 $ — $ 1,277 GMxB derivative features’ liability — — 8,525 8,525 SCS, SIO, MSO and IUL indexed features’ liability — 6,773 — 6,773 Liabilities of consolidated VIEs and VOEs 16 2 — 18 Contingent payment arrangements — — 38 38 Total Liabilities $ 16 $ 8,052 $ 8,563 $ 16,631 ______________ (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 and other asset types and credit tenant loans. (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 and commercial mortgages. As of December 31, 2021, the fair value of such investments was $404 million. (5) Includes CLO short-term debt of $92 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 $6 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. |
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 six months ended June 30, 2022 and 2021, respectively. Corporate State and Political Subdivisions Asset-backed CMBS Trading Securities, at Fair Value Fixed maturities, at FVO Balance, April 1, 2022 $ 1,683 $ 32 $ 332 $ 238 $ 52 $ 342 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 1 — — — — 4 Investment gains (losses), net (1) — — — — — Subtotal — — — — — 4 Other comprehensive income (loss) (50) (2) (1) (1) — — Purchases 327 — (313) (212) — 64 Sales (74) — — — — (24) Activity related to consolidated VIEs/VOEs — — — — — — Transfers into Level 3 (1) (5) — — — — (3) Transfers out of Level 3 (1) (114) — — — — 40 Balance, June 30, 2022 $ 1,767 $ 30 $ 18 $ 25 $ 52 $ 423 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — $ 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 (2) $ (50) $ (2) $ — $ — $ — $ — Balance, April 1, 2021 $ 1,255 $ 38 $ 65 $ 4 $ 39 $ 142 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 2 — — — — 8 Investment gains (losses), net (6) — — — — — Subtotal (4) — — — — 8 Other comprehensive income (loss) 17 — — — — — Purchases 294 — 74 6 — 42 Sales (137) (1) (11) — — (1) Activity related to consolidated VIEs/VOEs — — — — — — Transfers into Level 3 (1) — — — — — 8 Transfers out of Level 3 (1) (164) — — — — (51) Balance, June 30, 2021 $ 1,261 $ 37 $ 128 $ 10 $ 39 $ 148 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (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 (2) $ 17 $ — $ — $ — $ — $ — _____ Corporate State and Political Subdivisions Asset-backed CMBS Trading Securities, at Fair Value Fixed maturities, at FVO Balance, January 1, 2022 $ 1,504 $ 35 $ 8 $ 20 $ 65 $ 201 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 2 — — — — — Investment gains (losses), net — — — — (13) — Subtotal 2 — — — (13) — Other comprehensive income (loss) (81) (4) (1) (2) — — Purchases 559 — 12 7 — 153 Sales (161) (1) (1) — — (53) Activity related to consolidated VIEs/VOEs — — — — — — Transfers into Level 3 (1) 65 — — — — 185 Transfers out of Level 3 (1) (121) — — — — (63) Balance, June 30, 2022 $ 1,767 $ 30 $ 18 $ 25 $ 52 $ 423 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ (13) $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ (79) $ (4) $ (1) $ (2) $ — $ — 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) 3 — — — — 11 Investment gains (losses), net (12) — — — — — Subtotal (9) — — — — 11 Other comprehensive income (loss) 26 (1) — — — — Purchases 459 — 124 10 — 130 Sales (206) (1) (16) — — (9) Activity related to consolidated VIEs/VOEs — — — — — Transfers into Level 3 (1) 2 — — — — 15 Transfers out of Level 3 (1) (713) — — — — (79) Balance, June 30, 2021 $ 1,261 $ 37 $ 128 $ 10 $ 39 $ 148 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — $ 11 Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ 26 $ (1) $ — $ — $ — $ — ________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of June 30, 2022 or June 30, 2021, 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 (7) GMIB Reinsurance Contract Asset Amounts Due from Reinsurers Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement Balance, April 1, 2022 $ 11 $ 1,582 $ 5,056 $ — $ (6,925) $ (37) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income — — — — — — Net derivative gains (losses) (1) — (79) (376) — 827 — Total realized and unrealized gains (losses) — (79) (376) — 827 — Other comprehensive income (loss) — — — — — — Purchases (2) 57 11 28 — (116) (3) Sales (3) — (16) (27) 1 34 — Activity related to consolidated VIEs/VOEs (1) — — — — (2) Transfers into Level 3 (4) — — — — — — Transfers out of Level 3 (4) — — — — — — Balance, June 30, 2022 $ 67 $ 1,498 $ 4,681 $ 1 $ (6,180) $ (42) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ — $ (79) $ (376) $ — $ 827 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — $ — Balance, April 1, 2021 $ 83 $ 1,907 $ — $ — $ (7,824) $ (36) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income 18 — — — — — Net derivative gains (losses) (1) (5) — 120 242 — (673) — Total realized and unrealized gains (losses) 18 120 242 — (673) — Other comprehensive income (loss) — — — — — — Purchases (2) — 11 10 1 (121) (1) Sales (3) 2 (12) (1) — 23 — Other — — 5,259 — — — Activity related to consolidated VIEs/VOEs — — — — — (1) Transfers into Level 3 (4) — — — — — — Transfers out of Level 3 (4) — — — — 140 — Balance, June 30, 2021 $ 103 $ 2,026 $ 5,510 $ 1 $ (8,455) $ (38) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ 18 $ 120 $ 242 $ — $ (673) $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — $ — Other Equity Investments (7) GMIB Reinsurance Contract Asset Amounts Due from Reinsurers Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement Balance, January 1, 2022 $ 16 $ 1,848 $ 5,815 $ 1 $ (8,525) $ (38) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income — — — — — — Net derivative gains (losses) (1) — (339) (1,142) — 2,515 — Total realized and unrealized gains (losses) — (339) (1,142) — 2,515 — Other comprehensive income (loss) — — — — — — Purchases (2) 57 21 61 — (236) (2) Sales (3) — (32) (53) — 66 — Activity related to consolidated VIEs/VOEs (3) — — — — (2) Transfers into Level 3 (4) — — — — — Transfers out of Level 3 (4) (3) — — — — — Balance, June 30, 2022 $ 67 $ 1,498 $ 4,681 $ 1 $ (6,180) $ (42) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ — $ (339) $ (1,142) $ — $ 2,515 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — $ — 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 19 — — — — — Net derivative gains (losses) (1) (5) — (458) 242 — 2,735 — Total realized and unrealized gains (losses) 19 (458) 242 — 2,735 — Other comprehensive income (loss) — — — — — — Purchases (2) 3 21 10 1 (240) (8) Sales (3) (1) (25) (1) — 41 — Other — — 5,259 — — — Activity related to consolidated VIEs/VOEs (2) — — — — (2) Transfers into Level 3 (4) — — — — — — Transfers out of Level 3 (4) — — — (1) 140 — Balance, June 30, 2021 $ 103 $ 2,026 $ 5,510 $ 1 $ (8,455) $ (38) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ 19 $ (458) $ 242 $ — $ 2,735 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — $ — ______________ (1) For the three and six months ended June 30, 2022 and 2021 , the Company’s non-performance risk impact of $395 million , $(60) million, $878 million and $20 million for the GMxB Derivative Features Liability, $(37) million ,$16 million, $(74) million and $1 million for the GMIB Reinsurance Contract Asset, and $(35) million, $12 million, $(77) million and $12 million for the Amounts due from Reinsurers is recorded through Net derivative gains (losses), respectively. (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) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (5) For the six months ended June 30, 2021, GMxB Derivative Features Liability excludes settlement fees on CS Life reinsurance contract of $45 million. (6) For instruments held as of June 30, 2022 or June 30, 2021, 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 June 30, 2022 and December 31, 2021, respectively. Quantitative Information about Level 3 Fair Value Measurements as of June 30, 2022 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (2) (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 247 Matrix pricing model Spread over Benchmark 20 bps - 803 bps 151 bps 885 Market comparable EBITDA multiples Discount rate Cash flow multiples Loan to value 5.2x - 31.8x 8.0% - 38.5% 1.2x - 11.6x 0.0% - 44.4% 13.4x 10.2% 6.6x 25.9% Trading Securities, at Fair Value 52 Discounted Cash Flow Earnings multiple Discount factor Discount years 7.3x 10.0% 11 Other equity investments 4 Market comparable companies Revenue multiple 7.1x - 9.5x 8.5x GMIB reinsurance contract asset 1,498 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% 111 bps - 169 bps 15%-34% 0.01%-0.17% 0.06%-0.53% 0.31%-40.00% 2.80% 0.98% 5.87% 113 bps 24% 2.83% (same for all ages) (same for all ages) Amount Due from Reinsurers 4,681 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% 59 bps 15%-34% 0.01%-0.17% 0.06%-0.53% 0.31%-40.00% 1.80% 1.24% 8.19% 59 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 42 Discounted cash flow Expected revenue growth rates Discount rate 2.0% - 83.9% 1.9% - 10.4% 7.9% 7.0% GMIB NLG 6,198 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41-60 Ages 61-115 191 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% 191 bps 3.73% 1.14% 5.94% 1.60% (same for all ages) (same for all ages) GWBL/GMWB 65 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 15%-34% 191 bps 2.80% 0.98% 24% GIB (82) 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% 15% - 34% 191 bps 2.80% 0.98% 5.87% 24% GMAB (1) Discounted cash flow Lapse rates Volatility rates - Equity Non-performance risk(bps) 0.60%-20.86% 15%-34% 191 bps 2.80% 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, 2021 Fair Valuation Significant Range Weighted Average (2) (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 258 Matrix pricing model Spread over benchmark 20 bps - 270 bps 144 bps 888 Market comparable companies EBITDA multiples Discount rate Cash flow multiples Loan to value 4.9x - 62.3x 6.2% - 21.5% 0.5x-10.0x 3.1%-63.4% 13.0x 9.1% 5.5x 30.8% Trading Securities, at Fair Value 65 Discounted cash flow Earnings multiple Discounts factor Discount years 7.3x 10.00% 11 Other equity investments 4 Market comparable companies Revenue multiple 7.8x - 10.3x 9.5x Fair Valuation Significant Range Weighted Average (2) (in millions) GMIB reinsurance contract asset 1,848 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 57 bps - 93 bps 0.45% - 20.86% 0.27% - 8.66% 0.04% - 60.44% 11% - 31% 0.01% - 0.17% 0.06% - 0.53% 0.31% - 40.00% 60 bps 2.65% 0.93% 5.27% 24% 2.79% (same for all ages) (same for all ages) Amount Due from Reinsurers 5,813 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% 37 bps 11%-31% 0.01%-0.17% 0.06%-0.53% 0.31%-40.00% 1.70% 1.18% 7.20% 37 bps 24% 2.17% (same for all ages) (same for all ages) Liabilities: AB Contingent Consideration Payable 38 Discounted cash flow Expected revenue growth rates Discount rate 2.0% - 83.9% 1.9% - 10.4% 11.9% 7.0% GMIB NLG 8,503 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 111 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% 111 bps 3.55% 1.04% 5.24% 1.62% (same for all ages) (same for all ages) GWBL/GMWB 99 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity 111 bps 0.60%-20.86% 0.00%-8.00% 100% once starting 11%-31% 2.65% 0.93% 24% GIB (75) Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity 111 bps 0.60%-20.86% 0.13%-8.66% 0.04%-100.00% 11%-31% 2.65% 0.93% 5.27% 24% GMAB (3) Discounted cash flow Non-performance risk Lapse rates Volatility rates - Equity 111 bps 0.60%-20.86% 11%-31% 2.65% 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. |
Fair Value Disclosure Financial Instruments Not Carried At Fair Value | The carrying values and fair values as of June 30, 2022 and December 31, 2021 for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Consolidated Financial Statements 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) June 30, 2022: Mortgage loans on real estate $ 14,480 $ — $ — $ 13,258 $ 13,258 Policy loans $ 4,020 $ — $ — $ 4,993 $ 4,993 Policyholders’ liabilities: Investment contracts $ 2,031 $ — $ — $ 1,916 $ 1,916 FHLB funding agreements $ 7,287 $ — $ 7,241 $ — $ 7,241 FABN funding agreements $ 6,671 $ — $ 6,077 $ — $ 6,077 Short-term and long-term debt (1) $ 3,840 $ — $ 3,753 $ — $ 3,753 Separate Accounts liabilities $ 10,292 $ — $ — $ 10,292 $ 10,292 December 31, 2021: Mortgage loans on real estate $ 14,033 $ — $ — $ 14,308 $ 14,308 Policy loans $ 4,024 $ — $ — $ 5,050 $ 5,050 Policyholders’ liabilities: Investment contracts $ 2,035 $ — $ — $ 2,103 $ 2,103 FHLB funding agreements $ 6,647 $ — $ 6,679 $ — $ 6,679 FABN funding agreements $ 6,689 $ — $ 6,626 $ — $ 6,626 Short-term and long-term debt (1) $ 3,839 $ — $ 4,544 $ — $ 4,544 Separate Accounts liabilities $ 11,620 $ — $ — $ 11,620 $ 11,620 _____________ (1) As of June 30, 2022 and December 31, 2021 e xcludes CLO short-term debt of $245 million and $92 million , which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Service cost $ 2 $ 2 $ 4 $ 5 Interest cost 14 14 28 27 Expected return on assets (40) (38) (79) (76) Prior Period Svc Cost Amortization (1) — (1) (1) Actuarial (gain) loss — — 1 1 Net amortization 20 29 40 58 Impact of settlement — — — — Net Periodic Pension Expense $ (5) $ 7 $ (7) $ 14 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class | Preferred stock authorized, issued and outstanding was as follows: June 30, 2022 December 31, 2021 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 12,000 12,000 12,000 Total 64,000 64,000 64,000 64,000 64,000 64,000 |
Dividends Declared | Dividends declared per share were as follows for the periods indicated: Three Months Ended June 30, Six months ended June 30, 2022 2021 2022 2021 Series A dividends declared $ 328 $ 328 $ 656 $ 656 Series B dividends declared $ 619 $ 619 $ 619 $ 619 Series C dividends declared $ 269 $ 269 $ 538 $ 469 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Dividends declared $ 0.20 $ 0.18 $ 0.38 $ 0.35 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The balances as of June 30, 2022 and December 31, 2021 follow: June 30, December 31, 2022 2021 (in millions) Unrealized gains (losses) on investments $ (4,884) $ 2,684 Defined benefit pension plans (624) (669) Foreign currency translation adjustments (90) (45) Total accumulated other comprehensive income (loss) (5,598) 1,970 Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest (50) (34) Accumulated other comprehensive income (loss) attributable to Holdings $ (5,548) $ 2,004 |
Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of OCI, net of taxes for the three and six months ended June 30, 2022 and 2021 follow: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ (4,654) $ 1,822 $ (9,734) $ (2,237) (Gains) losses reclassified into net income (loss) during the period (1) 169 (322) 433 (486) Net unrealized gains (losses) on investments (4,485) 1,500 (9,301) (2,723) Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 743 (280) 1,733 790 Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(993), $324, $(2,011) and $(514)) (3,742) 1,220 (7,568) (1,933) Change in defined benefit plans: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost 2 22 45 55 Change in defined benefit plans (net of deferred income tax expense (benefit) of $0, $5, $(9), and $14) 2 22 45 55 Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period (33) 2 (45) (4) Foreign currency translation adjustment (33) 2 (45) (4) Total other comprehensive income (loss), net of income taxes (3,773) 1,244 (7,568) (1,882) Less: Other comprehensive income (loss) attributable to noncontrolling interest (12) 1 (16) (2) Other comprehensive income (loss) attributable to Holdings $ (3,761) $ 1,243 $ (7,552) $ (1,880) _______________ (1) See “Reclassification adjustments” in Note 3 of the Notes to these Consolidated Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $(45) million, $85 million, $(115) million, and $129 million for the three and six months ended June 30, 2022 and 2021, respectively. |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Balance, beginning of period $ 386 $ 137 $ 468 $ 143 Net earnings (loss) attributable to redeemable noncontrolling interests (29) 4 (56) 4 Purchase/change of redeemable noncontrolling interests (9) (99) (64) (105) Balance, end of period $ 348 $ 42 $ 348 $ 42 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 Six Months Ended June 30, 2022 Outstanding Balance at December 31, 2021 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 June 30, 2022 (in millions) Short-term funding agreements: Due in one year or less $ 5,353 $ 27,407 $ 27,488 $ 153 $ — $ 5,425 Long-term funding agreements: Due in years two through five 1,290 309 — (153) — 1,446 Due in more than five years — 412 — — — 412 Total long-term funding agreements 1,290 721 — (153) — 1,858 Total funding agreements (1) $ 6,643 $ 28,128 $ 27,488 $ — $ — $ 7,283 _____________ (1) The $4 million and $4 million difference between the funding agreements carrying value shown in fair value table for June 30, 2022 and December 31, 2021, 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 Six Months Ended June 30, 2022 Outstanding Balance at December 31, 2021 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 June 30, (in millions) Short-term funding agreements: Due in one year or less $ — $ — $ — $ — $ 1,000 $ — $ 1,000 Long-term funding agreements: Due in years two through five 4,600 — — — (1,000) — 3,600 Due in more than five years 2,119 — — — — (45) 2,074 Total long-term funding agreements 6,719 — — — (1,000) (45) 5,674 Total funding agreements (1) $ 6,719 $ — $ — $ — $ — $ (45) $ 6,674 _____________ |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 six months ended June 30, 2022 and 2021, respectively: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Net income (loss) attributable to Holdings $ 1,728 $ 123 $ 2,301 $ (1,365) Adjustments related to: Variable annuity product features (1,924) 1,193 (2,525) 3,460 Investment (gains) losses 231 (420) 557 (603) Net actuarial (gains) losses related to pension and other postretirement benefit obligations 19 26 38 60 Other adjustments (1) (2) (3) 148 7 368 531 Income tax expense (benefit) related to above adjustments 321 (171) 329 (726) Non-recurring tax items 3 — 6 1 Non-GAAP Operating Earnings $ 526 $ 758 $ 1,074 $ 1,358 Operating earnings (loss) by segment: Individual Retirement $ 274 $ 414 $ 567 $ 777 Group Retirement $ 131 $ 171 $ 281 $ 322 Investment Management and Research $ 101 $ 126 $ 237 $ 247 Protection Solutions $ 101 $ 63 $ 136 $ 104 Corporate and Other (4) $ (81) $ (16) $ (147) $ (92) ______________ (1) Includes separation costs of $16 million and $37 million for the three and six months ended June 30, 2021, respectively. Separation costs were completed during 2021. (2) Includes certain gross legal expenses related to the COI litigation of $107 million, $0 million, $166 million and $180 million for the three and six months ended June 30, 2022 and 2021, respectively. Includes policyholder benefit costs of $0 million and $75 million for the three and six months ended June 30, 2022 stemming from a deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market. (3) Includes Non-GMxB related derivative hedge gains and losses of ($38) million, ($100) million, ($40) million and $144 million for the three and six months ended June 30, 2022 and 2021, respectively. (4) Includes interest expense and financing fees of $52 million, $57 million, $105 million and $115 million for the three and six months ended June 30, 2022 and 2021, respectively. The table below presents segment revenues for the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Segment revenues: Individual Retirement (1) $ 1,022 $ 979 $ 2,044 $ 1,959 Group Retirement (1) 301 346 635 675 Investment Management and Research (2) 1,003 1,072 2,138 2,076 Protection Solutions (1) 836 832 1,687 1,658 Corporate and Other (1) 350 386 724 720 Adjustments related to: Variable annuity product features 1,944 (1,212) 2,575 (3,494) Investment gains (losses), net (231) 420 (557) 603 Other adjustments to segment revenues (57) 127 (134) (94) Total revenues $ 5,168 $ 2,950 $ 9,112 $ 4,103 ______________ (1) Includes investment expenses charged by AB of $23 million, $20 million, $44 million and $39 million for the three and six months ended June 30, 2022 and 2021, respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of $32 million, $32 million, $60 million and $62 million for the three and six months ended June 30, 2022 and 2021, respectively, are included in segment revenues of the Investment Management and Research segment. The table below presents total assets by segment as of June 30, 2022 and 2021: June 30, 2022 December 31, 2021 (in millions) Total assets by segment: Individual Retirement $ 126,393 $ 143,663 Group Retirement 40,356 55,368 Investment Management and Research 11,974 11,602 Protection Solutions 38,384 50,686 Corporate and Other 36,375 30,943 Total assets $ 253,482 $ 292,262 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) Weighted-average common shares outstanding: Weighted-average common shares outstanding — basic 378.9 424.2 383.7 429.2 Effect of dilutive potential common shares: Employee share awards (1) 1.7 4.1 2.3 — Weighted-average common shares outstanding — diluted (2) 380.6 428.3 386.1 429.2 Net income (loss): Net income (loss) $ 1,773 $ 223 $ 2,412 $ (1,177) Less: Net income (loss) attributable to the noncontrolling interest 45 100 111 188 Net income (loss) attributable to Holdings 1,728 123 2,301 (1,365) Less: Preferred stock dividends 26 26 40 39 Net income (loss) available to Holdings’ common shareholders $ 1,702 $ 97 $ 2,261 $ (1,404) Earnings per common share: Basic $ 4.49 $ 0.23 $ 5.89 $ (3.27) Diluted $ 4.47 $ 0.23 $ 5.86 $ (3.27) _____________ (1) Calculated using the treasury stock method. (2) Due to net loss for the six months ended June 30, 2021 approximately 3.9 million share awards were excluded from the diluted EPS calculation. |
ORGANIZATION - Narrative (Detai
ORGANIZATION - Narrative (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 01, 2021 USD ($) | Jun. 30, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | |
Organization Basis Of Presentation [Line Items] | |||
Number of reportable segments | segment | 4 | ||
Assets | $ 253,482,000,000 | $ 292,262,000,000 | |
Corporate Solutions Life Reinsurance Company (CS Life) | |||
Organization Basis Of Presentation [Line Items] | |||
Ownership percentage acquired | 100% | ||
Alliance Bernstein (AB) | |||
Organization Basis Of Presentation [Line Items] | |||
Economic interest | 65% | 65% | |
Alliance Bernstein (AB) | Corporate Solutions Life Reinsurance Company (CS Life) | |||
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 | ||
Alliance Bernstein (AB) | Corporate Solutions Life Reinsurance Company (CS Life) | GMxB derivative features’ liability | |||
Organization Basis Of Presentation [Line Items] | |||
Fair value | 5,300,000,000 | ||
Venerable Insurance and Annuity Company (VAIC) | Equitable Financial Life Insurance Company (EFLIC) | |||
Organization Basis Of Presentation [Line Items] | |||
Surplus notes | 60,000,000 | ||
Venerable Insurance and Annuity Company (VAIC) | Corporate Solutions Life Reinsurance Company (CS Life) | |||
Organization Basis Of Presentation [Line Items] | |||
Business combination, consideration transferred | $ 215,000,000 | ||
Equitable Investment Management Group, LLC (EIMG) | VA Capital Company LLC | |||
Organization Basis Of Presentation [Line Items] | |||
Ownership percentage acquired | 9.09% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |||
Variable Interest Entity [Line Items] | |||||||||
Investments | $ 93,216 | $ 105,111 | |||||||
Fixed maturities, at fair value using the fair value option | [1] | 1,562 | 1,641 | ||||||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | [1] | 1,150 | 1,191 | ||||||
Unpaid outstanding balance and short-term borrowing | 1,400 | 1,300 | |||||||
Assets | 253,482 | 292,262 | |||||||
Liabilities | 246,135 | 278,699 | |||||||
Redeemable non-controlling interest | 348 | [1],[2] | $ 386 | 468 | [1],[2] | $ 42 | $ 137 | $ 143 | |
Consolidated Variable Interest Entities | AB-Sponsored Investment Funds | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Assets | 497 | 734 | |||||||
Liabilities | 38 | 87 | |||||||
Redeemable non-controlling interest | 309 | 421 | |||||||
Consolidated Variable Interest Entities | CLO Warehouse Debt | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Investments | 93 | 109 | |||||||
Investment assets, special purpose entity | 71 | ||||||||
Consolidated Limited Partnerships | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Assets | 242 | 219 | |||||||
Non-consolidated Vairable Interest Entities | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Investments | 2,300 | 2,100 | |||||||
Assets | 278,000 | 245,600 | |||||||
Variable interest entity, maximum loss exposure | 2,300 | 2,100 | |||||||
Variable interest entity, unfunded commitments | 1,300 | 1,200 | |||||||
Non-consolidated Vairable Interest Entities | AB-Sponsored Investment Funds | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Assets | 40,300 | 68,900 | |||||||
Variable interest entity, maximum loss exposure | $ 5 | $ 9 | |||||||
[1]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs.[2]See Note 11 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest. |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 USD ($) issue | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) issue | Jun. 30, 2021 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) issue | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Net Investment Income [Line Items] | ||||||||
Number of positions in unrealized loss position | issue | 4,942 | 4,942 | 2,060 | |||||
Debt securities exposure in single issuer greater than stated percentage of total investments | 0.50% | 0.50% | ||||||
Fixed maturities available-for-sale, amortized cost | $ 74,238,000,000 | $ 74,238,000,000 | $ 73,429,000,000 | |||||
Gross unrealized losses | 569,000,000 | 569,000,000 | 91,000,000 | |||||
Allowance for credit losses | 64,000,000 | $ 63,000,000 | 64,000,000 | $ 63,000,000 | 62,000,000 | |||
Non-accruing loans, carrying value | 13,000,000 | 13,000,000 | 13,000,000 | |||||
Separate account equity investment carrying value | 35,000,000 | 35,000,000 | 45,000,000 | |||||
Fixed maturities | ||||||||
Net Investment Income [Line Items] | ||||||||
Accrued investment income receivable | 541,000,000 | 541,000,000 | 506,000,000 | |||||
Accrued interest, written off | 0 | 0 | 0 | 0 | ||||
Fixed maturities available-for-sale, amortized cost | 74,200,000,000 | 74,200,000,000 | 73,400,000,000 | |||||
Corporate | ||||||||
Net Investment Income [Line Items] | ||||||||
Exposure in single issuer of total investments | $ 239,000,000 | $ 239,000,000 | $ 322,000,000 | |||||
Debt securities exposure in single issuer of total investments, percentage | 3.40% | 3.40% | 2.50% | |||||
Fixed maturities available-for-sale, amortized cost | $ 52,025,000,000 | $ 52,025,000,000 | $ 50,172,000,000 | |||||
Gross unrealized losses | 489,000,000 | 489,000,000 | 75,000,000 | |||||
Commercial mortgage loans | ||||||||
Net Investment Income [Line Items] | ||||||||
Accrued investment income receivable | 58,000,000 | 58,000,000 | 57,000,000 | |||||
Accrued interest, written off | 0 | 0 | ||||||
Allowance for credit losses | 58,000,000 | 59,000,000 | 58,000,000 | 59,000,000 | $ 47,000,000 | 57,000,000 | $ 70,000,000 | $ 77,000,000 |
Non-accruing loans, carrying value | 14,000,000 | |||||||
Agricultural mortgage loans | ||||||||
Net Investment Income [Line Items] | ||||||||
Accrued investment income receivable | 58,000,000 | 58,000,000 | 57,000,000 | |||||
Accrued interest, written off | 0 | 0 | ||||||
Allowance for credit losses | 6,000,000 | $ 4,000,000 | 6,000,000 | $ 4,000,000 | $ 6,000,000 | 5,000,000 | $ 4,000,000 | $ 4,000,000 |
Individually assessed mortgage loans | ||||||||
Net Investment Income [Line Items] | ||||||||
Mortgage loans foreclosure probable | 0 | 0 | ||||||
Allowance for credit losses | 0 | 0 | ||||||
Recurring | ||||||||
Net Investment Income [Line Items] | ||||||||
Investment gains (losses), net | 538,000,000 | 538,000,000 | 631,000,000 | |||||
Other than investment grade | Non-investment grade | Fixed maturities | ||||||||
Net Investment Income [Line Items] | ||||||||
Available-for-sale securities, amortized cost basis other than investment grade | $ 2,900,000,000 | $ 2,900,000,000 | $ 2,900,000,000 | |||||
Percentage of available for sale securities | 3.90% | 3.90% | 3.90% | |||||
Unrealized loss on available for sale securities | $ 208,000,000 | $ 208,000,000 | $ 18,000,000 |
INVESTMENTS - Available-for-sal
INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | $ 74,238 | $ 74,238 | $ 73,429 | ||
Allowance for Credit Losses | 19 | 19 | 22 | ||
Gross Unrealized Gains | 260 | 260 | 5,125 | ||
Gross Unrealized Losses | 7,225 | 7,225 | 316 | ||
Fair Value | 67,254 | 67,254 | 78,216 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Due in one year or less | 1,354 | 1,354 | |||
Due in years two through five | 14,662 | 14,662 | |||
Due in years six through ten | 18,470 | 18,470 | |||
Due after ten years | 26,715 | 26,715 | |||
Subtotal | 61,201 | 61,201 | |||
Amortized cost | 74,219 | 74,219 | |||
Fair Value | |||||
Due in one year or less | 1,346 | 1,346 | |||
Due in years two through five | 14,189 | 14,189 | |||
Due in years six through ten | 16,969 | 16,969 | |||
Due after ten years | 22,523 | 22,523 | |||
Subtotal | 55,027 | 55,027 | |||
Fair Value | 67,254 | 67,254 | 78,216 | ||
Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments | |||||
Proceeds from sales | 3,344 | $ 9,866 | 10,735 | $ 17,075 | |
Gross gains on sales | 15 | 557 | 44 | 848 | |
Gross losses on sales | (227) | (38) | (591) | (154) | |
Net change in Allowance for Credit losses | 2 | (6) | 3 | (12) | |
Fixed Maturities - Credit Loss Impairments | |||||
Balance, beginning of period | 43 | 38 | 44 | 32 | |
Previously recognized impairments on securities that matured, paid, prepaid or sold | (13) | (3) | (15) | (3) | |
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 | 1 | 6 | 1 | 8 | |
Additional credit losses this period on securities previously impaired | 1 | 1 | 2 | 5 | |
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 | 32 | $ 42 | 32 | $ 42 | |
Corporate | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 52,025 | 52,025 | 50,172 | ||
Allowance for Credit Losses | 19 | 19 | 22 | ||
Gross Unrealized Gains | 164 | 164 | 2,601 | ||
Gross Unrealized Losses | 5,728 | 5,728 | 240 | ||
Fair Value | 46,442 | 46,442 | 52,511 | ||
Fair Value | |||||
Fair Value | 46,442 | 46,442 | 52,511 | ||
U.S. government, agencies and authorities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 7,417 | 7,417 | 13,056 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 55 | 55 | 2,344 | ||
Gross Unrealized Losses | 493 | 493 | 15 | ||
Fair Value | 6,979 | 6,979 | 15,385 | ||
Fair Value | |||||
Fair Value | 6,979 | 6,979 | 15,385 | ||
States and political subdivisions | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 684 | 684 | 586 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 24 | 24 | 78 | ||
Gross Unrealized Losses | 61 | 61 | 2 | ||
Fair Value | 647 | 647 | 662 | ||
Fair Value | |||||
Fair Value | 647 | 647 | 662 | ||
Foreign governments | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 1,094 | 1,094 | 1,124 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 6 | 6 | 42 | ||
Gross Unrealized Losses | 141 | 141 | 14 | ||
Fair Value | 959 | 959 | 1,152 | ||
Fair Value | |||||
Fair Value | 959 | 959 | 1,152 | ||
Residential mortgage-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 514 | 514 | 90 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 3 | 3 | 8 | ||
Gross Unrealized Losses | 8 | 8 | 0 | ||
Fair Value | 509 | 509 | 98 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 514 | 514 | |||
Fair Value | |||||
Without single maturity date | 509 | 509 | |||
Fair Value | 509 | 509 | 98 | ||
Asset-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 8,735 | 8,735 | 5,933 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 4 | 4 | 21 | ||
Gross Unrealized Losses | 406 | 406 | 20 | ||
Fair Value | 8,333 | 8,333 | 5,934 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 8,735 | 8,735 | |||
Fair Value | |||||
Without single maturity date | 8,333 | 8,333 | |||
Fair Value | 8,333 | 8,333 | 5,934 | ||
Commercial mortgage-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 3,728 | 3,728 | 2,427 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 1 | 1 | 19 | ||
Gross Unrealized Losses | 388 | 388 | 25 | ||
Fair Value | 3,341 | 3,341 | 2,421 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 3,728 | 3,728 | |||
Fair Value | |||||
Without single maturity date | 3,341 | 3,341 | |||
Fair Value | 3,341 | 3,341 | 2,421 | ||
Redeemable preferred stock | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 41 | 41 | 41 | ||
Allowance for Credit Losses | 0 | 0 | 0 | ||
Gross Unrealized Gains | 3 | 3 | 12 | ||
Gross Unrealized Losses | 0 | 0 | 0 | ||
Fair Value | 44 | 44 | 53 | ||
Amortized Cost (Less Allowance for Credit Losses) | |||||
Without single maturity date | 41 | 41 | |||
Fair Value | |||||
Without single maturity date | 44 | 44 | |||
Fair Value | $ 44 | $ 44 | $ 53 |
INVESTMENTS - Net Unrealized Ga
INVESTMENTS - Net Unrealized Gain (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | ||||
Beginning of year | $ 9,483 | $ 12,268 | $ 13,095 | $ 17,177 |
End of year | 6,999 | 13,304 | 6,999 | 13,304 |
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 | (1,287) | 3,466 | 4,809 | 8,811 |
Net investment gains (losses) arising during the period | (5,889) | 2,293 | (12,314) | (2,836) |
Included in net income (loss) | 214 | (407) | 548 | (582) |
Other | 0 | (33) | ||
Impact of net unrealized investment gains (losses) | 0 | 0 | 0 | 0 |
Net unrealized investment gains (losses) excluding credit losses | (6,962) | 5,352 | (6,957) | 5,360 |
Net unrealized investment gains (losses) with credit losses | (3) | 9 | (8) | 1 |
End of year | (6,965) | 5,361 | (6,965) | 5,361 |
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 | 290 | (947) | (782) | (1,548) |
Impact of net unrealized investment gains (losses) | 890 | (215) | 1,961 | 384 |
End of year | 1,180 | (1,165) | 1,180 | (1,165) |
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 | (237) | (307) | (418) | (1,065) |
Impact of net unrealized investment gains (losses) | (96) | (106) | 85 | 652 |
End of year | (333) | (414) | (333) | (414) |
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 | 259 | (465) | (757) | (1,302) |
Impact of net unrealized investment gains (losses) | 1,025 | (328) | 2,040 | 508 |
End of year | 1,285 | (794) | 1,285 | (794) |
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 | (975) | 1,747 | 2,852 | 4,896 |
Net investment gains (losses) arising during the period | (5,889) | 2,293 | (12,314) | (2,836) |
Included in net income (loss) | 214 | (407) | 548 | (582) |
Other | 0 | (33) | ||
Impact of net unrealized investment gains (losses) | 1,819 | (649) | 4,086 | 1,544 |
Net unrealized investment gains (losses) excluding credit losses | (4,831) | 2,984 | (4,828) | 2,989 |
Net unrealized investment gains (losses) with credit losses | (2) | 4 | (5) | (1) |
End of year | (4,833) | 2,988 | (4,833) | 2,988 |
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) excluding credit losses | 1,180 | (1,162) | 1,179 | (1,164) |
Net unrealized investment gains (losses) with credit losses | 0 | (3) | 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) excluding credit losses | (333) | (413) | (333) | (413) |
Net unrealized investment gains (losses) with credit losses | 0 | (1) | 0 | (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) excluding credit losses | 1,284 | (793) | 1,283 | (794) |
Net unrealized investment gains (losses) with credit losses | $ 1 | $ (1) | $ 2 | $ 0 |
INVESTMENTS - Fixed Maturities
INVESTMENTS - Fixed Maturities Available-for-sale (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | $ 55,467 | $ 17,425 |
Less than 12 Months, Gross Unrealized Losses | 6,653 | 223 |
12 Months or Longer, Fair Value | 3,453 | 1,975 |
12 Months or Longer, Gross Unrealized Losses | 569 | 91 |
Total Fair Value | 58,920 | 19,400 |
Total Gross Unrealized Losses | 7,222 | 314 |
Corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 38,094 | 10,571 |
Less than 12 Months, Gross Unrealized Losses | 5,236 | 163 |
12 Months or Longer, Fair Value | 2,883 | 1,633 |
12 Months or Longer, Gross Unrealized Losses | 489 | 75 |
Total Fair Value | 40,977 | 12,204 |
Total Gross Unrealized Losses | 5,725 | 238 |
U.S. government, agencies and authorities | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 5,006 | 993 |
Less than 12 Months, Gross Unrealized Losses | 481 | 11 |
12 Months or Longer, Fair Value | 87 | 105 |
12 Months or Longer, Gross Unrealized Losses | 12 | 4 |
Total Fair Value | 5,093 | 1,098 |
Total Gross Unrealized Losses | 493 | 15 |
States and political subdivisions | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 289 | 120 |
Less than 12 Months, Gross Unrealized Losses | 57 | 2 |
12 Months or Longer, Fair Value | 11 | 11 |
12 Months or Longer, Gross Unrealized Losses | 4 | 0 |
Total Fair Value | 300 | 131 |
Total Gross Unrealized Losses | 61 | 2 |
Foreign governments | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 734 | 349 |
Less than 12 Months, Gross Unrealized Losses | 119 | 6 |
12 Months or Longer, Fair Value | 101 | 92 |
12 Months or Longer, Gross Unrealized Losses | 22 | 8 |
Total Fair Value | 835 | 441 |
Total Gross Unrealized Losses | 141 | 14 |
Residential mortgage-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 442 | 0 |
Less than 12 Months, Gross Unrealized Losses | 8 | 0 |
12 Months or Longer, Fair Value | 1 | 0 |
12 Months or Longer, Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 443 | 0 |
Total Gross Unrealized Losses | 8 | 0 |
Asset-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 7,757 | 3,865 |
Less than 12 Months, Gross Unrealized Losses | 394 | 20 |
12 Months or Longer, Fair Value | 206 | 38 |
12 Months or Longer, Gross Unrealized Losses | 12 | 0 |
Total Fair Value | 7,963 | 3,903 |
Total Gross Unrealized Losses | 406 | 20 |
Commercial mortgage-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 3,145 | 1,527 |
Less than 12 Months, Gross Unrealized Losses | 358 | 21 |
12 Months or Longer, Fair Value | 164 | 96 |
12 Months or Longer, Gross Unrealized Losses | 30 | 4 |
Total Fair Value | 3,309 | 1,623 |
Total Gross Unrealized Losses | $ 388 | $ 25 |
INVESTMENTS - Mortgage Loans (D
INVESTMENTS - Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | $ 62 | |||
Balance, end of period | $ 64 | $ 63 | 64 | $ 63 |
Commercial mortgage loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 47 | 70 | 57 | 77 |
Current-period provision for expected credit losses | 11 | (11) | 1 | (18) |
Write-offs charged against the allowance | 0 | 0 | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 | ||
Net change in allowance | 11 | (11) | 1 | (18) |
Balance, end of period | 58 | 59 | 58 | 59 |
Agricultural mortgage loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 6 | 4 | 5 | 4 |
Current-period provision for expected credit losses | 0 | 0 | 1 | 0 |
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 | 1 | 0 |
Balance, end of period | $ 6 | $ 4 | $ 6 | $ 4 |
INVESTMENTS - Credit Quality (D
INVESTMENTS - Credit Quality (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | $ 14,544 | $ 14,095 |
Total | 14,528 | 14,079 |
Non-accruing Loans | 16 | 16 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Past Due | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 29 | 27 |
30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 9 | 1 |
60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1 | 1 |
90 Days Or Greater | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 19 | 25 |
Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 14,499 | 14,052 |
Commercial mortgage loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 899 | 2,134 |
Fiscal year before current fiscal year | 2,118 | 1,522 |
Two years before current fiscal year | 1,521 | 751 |
Three years before current fiscal year | 687 | 1,253 |
Four years before current fiscal year | 1,203 | 1,065 |
Prior | 5,226 | 4,587 |
Revolving Loans Amortized Cost Basis | 221 | 139 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 35 | 0 |
Total | 11,910 | 11,451 |
Total | 11,910 | 11,451 |
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 | 0 |
Commercial mortgage loans | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
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 | 11,910 | 11,451 |
Commercial mortgage loans | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 420 | 1,143 |
Fiscal year before current fiscal year | 1,143 | 1,243 |
Two years before current fiscal year | 1,243 | 210 |
Three years before current fiscal year | 104 | 772 |
Four years before current fiscal year | 631 | 485 |
Prior | 2,078 | 2,235 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 5,619 | 6,088 |
Commercial mortgage loans | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 94 | 185 |
Fiscal year before current fiscal year | 187 | 135 |
Two years before current fiscal year | 134 | 182 |
Three years before current fiscal year | 262 | 46 |
Four years before current fiscal year | 186 | 161 |
Prior | 660 | 372 |
Revolving Loans Amortized Cost Basis | 124 | 68 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 1,647 | 1,149 |
Commercial mortgage loans | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 270 | 275 |
Fiscal year before current fiscal year | 275 | 49 |
Two years before current fiscal year | 49 | 284 |
Three years before current fiscal year | 266 | 211 |
Four years before current fiscal year | 190 | 166 |
Prior | 1,051 | 919 |
Revolving Loans Amortized Cost Basis | 68 | 48 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 2,169 | 1,952 |
Commercial mortgage loans | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 35 | 264 |
Fiscal year before current fiscal year | 260 | 95 |
Two years before current fiscal year | 95 | 75 |
Three years before current fiscal year | 11 | 101 |
Four years before current fiscal year | 48 | 253 |
Prior | 1,006 | 701 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 1,455 | 1,489 |
Commercial mortgage loans | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 267 |
Fiscal year before current fiscal year | 253 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 44 | 88 |
Four years before current fiscal year | 148 | 0 |
Prior | 360 | 287 |
Revolving Loans Amortized Cost Basis | 29 | 23 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 35 | 0 |
Total | 869 | 665 |
Commercial mortgage loans | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 80 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 35 |
Four years before current fiscal year | 0 | 0 |
Prior | 71 | 73 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 151 | 108 |
Commercial mortgage loans | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 188 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 184 |
Four years before current fiscal year | 119 | 293 |
Prior | 1,202 | 1,009 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 1,509 | 1,486 |
Commercial mortgage loans | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 575 | 1,944 |
Fiscal year before current fiscal year | 1,790 | 1,286 |
Two years before current fiscal year | 1,374 | 339 |
Three years before current fiscal year | 276 | 619 |
Four years before current fiscal year | 634 | 491 |
Prior | 2,969 | 2,533 |
Revolving Loans Amortized Cost Basis | 221 | 139 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 7,839 | 7,351 |
Commercial mortgage loans | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 136 | 190 |
Fiscal year before current fiscal year | 328 | 236 |
Two years before current fiscal year | 147 | 412 |
Three years before current fiscal year | 411 | 415 |
Four years before current fiscal year | 450 | 276 |
Prior | 1,055 | 972 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 35 | 0 |
Total | 2,562 | 2,501 |
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 | 0 |
Three years before current fiscal year | 0 | 35 |
Four years before current fiscal year | 0 | 5 |
Prior | 0 | 73 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 113 |
Agricultural mortgage loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 269 | 380 |
Fiscal year before current fiscal year | 372 | 480 |
Two years before current fiscal year | 455 | 230 |
Three years before current fiscal year | 211 | 255 |
Four years before current fiscal year | 223 | 206 |
Prior | 1,104 | 1,093 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 2,634 | 2,644 |
Total | 2,618 | 2,628 |
Non-accruing Loans | 16 | 16 |
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 | 29 | 27 |
Agricultural mortgage loans | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 9 | 1 |
Agricultural mortgage loans | 60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1 | 1 |
Agricultural mortgage loans | 90 Days Or Greater | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 19 | 25 |
Agricultural mortgage loans | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 2,589 | 2,601 |
Agricultural mortgage loans | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 48 | 49 |
Fiscal year before current fiscal year | 40 | 64 |
Two years before current fiscal year | 63 | 25 |
Three years before current fiscal year | 22 | 22 |
Four years before current fiscal year | 12 | 24 |
Prior | 215 | 210 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 400 | 394 |
Agricultural mortgage loans | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 11 | 52 |
Fiscal year before current fiscal year | 58 | 37 |
Two years before current fiscal year | 36 | 25 |
Three years before current fiscal year | 25 | 14 |
Four years before current fiscal year | 14 | 14 |
Prior | 71 | 70 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 215 | 212 |
Agricultural mortgage loans | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 38 | 43 |
Fiscal year before current fiscal year | 43 | 113 |
Two years before current fiscal year | 112 | 28 |
Three years before current fiscal year | 28 | 22 |
Four years before current fiscal year | 23 | 41 |
Prior | 209 | 193 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 453 | 440 |
Agricultural mortgage loans | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 73 | 161 |
Fiscal year before current fiscal year | 156 | 179 |
Two years before current fiscal year | 175 | 112 |
Three years before current fiscal year | 100 | 116 |
Four years before current fiscal year | 101 | 72 |
Prior | 332 | 355 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 937 | 995 |
Agricultural mortgage loans | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 83 | 75 |
Fiscal year before current fiscal year | 74 | 83 |
Two years before current fiscal year | 65 | 31 |
Three years before current fiscal year | 30 | 77 |
Four years before current fiscal year | 69 | 54 |
Prior | 264 | 226 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 585 | 546 |
Agricultural mortgage loans | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 16 | 0 |
Fiscal year before current fiscal year | 1 | 4 |
Two years before current fiscal year | 4 | 9 |
Three years before current fiscal year | 6 | 4 |
Four years before current fiscal year | 4 | 1 |
Prior | 13 | 39 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 44 | 57 |
Agricultural mortgage loans | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 103 | 180 |
Fiscal year before current fiscal year | 192 | 212 |
Two years before current fiscal year | 214 | 128 |
Three years before current fiscal year | 124 | 129 |
Four years before current fiscal year | 129 | 119 |
Prior | 788 | 738 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 1,550 | 1,506 |
Agricultural mortgage loans | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 166 | 200 |
Fiscal year before current fiscal year | 180 | 268 |
Two years before current fiscal year | 241 | 102 |
Three years before current fiscal year | 87 | 126 |
Four years before current fiscal year | 94 | 87 |
Prior | 300 | 338 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 1,068 | 1,121 |
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 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 16 | 17 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 16 | 17 |
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 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Mortgages Loan | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 1,168 | 2,514 |
Fiscal year before current fiscal year | 2,490 | 2,002 |
Two years before current fiscal year | 1,976 | 981 |
Three years before current fiscal year | 898 | 1,508 |
Four years before current fiscal year | 1,426 | 1,271 |
Prior | 6,330 | 5,680 |
Revolving Loans Amortized Cost Basis | 221 | 139 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 35 | 0 |
Total | 14,544 | 14,095 |
Mortgages Loan | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 468 | 1,192 |
Fiscal year before current fiscal year | 1,183 | 1,307 |
Two years before current fiscal year | 1,306 | 235 |
Three years before current fiscal year | 126 | 794 |
Four years before current fiscal year | 643 | 509 |
Prior | 2,293 | 2,445 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 6,019 | 6,482 |
Mortgages Loan | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 105 | 237 |
Fiscal year before current fiscal year | 245 | 172 |
Two years before current fiscal year | 170 | 207 |
Three years before current fiscal year | 287 | 60 |
Four years before current fiscal year | 200 | 175 |
Prior | 731 | 442 |
Revolving Loans Amortized Cost Basis | 124 | 68 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 1,862 | 1,361 |
Mortgages Loan | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 308 | 318 |
Fiscal year before current fiscal year | 318 | 162 |
Two years before current fiscal year | 161 | 312 |
Three years before current fiscal year | 294 | 233 |
Four years before current fiscal year | 213 | 207 |
Prior | 1,260 | 1,112 |
Revolving Loans Amortized Cost Basis | 68 | 48 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 2,622 | 2,392 |
Mortgages Loan | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 108 | 425 |
Fiscal year before current fiscal year | 416 | 274 |
Two years before current fiscal year | 270 | 187 |
Three years before current fiscal year | 111 | 217 |
Four years before current fiscal year | 149 | 325 |
Prior | 1,338 | 1,056 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 2,392 | 2,484 |
Mortgages Loan | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 83 | 342 |
Fiscal year before current fiscal year | 327 | 83 |
Two years before current fiscal year | 65 | 31 |
Three years before current fiscal year | 74 | 165 |
Four years before current fiscal year | 217 | 54 |
Prior | 624 | 513 |
Revolving Loans Amortized Cost Basis | 29 | 23 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 35 | 0 |
Total | 1,454 | 1,211 |
Mortgages Loan | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 96 | 0 |
Fiscal year before current fiscal year | 1 | 4 |
Two years before current fiscal year | 4 | 9 |
Three years before current fiscal year | 6 | 39 |
Four years before current fiscal year | 4 | 1 |
Prior | 84 | 112 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 195 | 165 |
Mortgages Loan | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 291 | 180 |
Fiscal year before current fiscal year | 192 | 212 |
Two years before current fiscal year | 214 | 128 |
Three years before current fiscal year | 124 | 313 |
Four years before current fiscal year | 248 | 412 |
Prior | 1,990 | 1,747 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 3,059 | 2,992 |
Mortgages Loan | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 741 | 2,144 |
Fiscal year before current fiscal year | 1,970 | 1,554 |
Two years before current fiscal year | 1,615 | 441 |
Three years before current fiscal year | 363 | 745 |
Four years before current fiscal year | 728 | 578 |
Prior | 3,269 | 2,871 |
Revolving Loans Amortized Cost Basis | 221 | 139 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 8,907 | 8,472 |
Mortgages Loan | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 136 | 190 |
Fiscal year before current fiscal year | 328 | 236 |
Two years before current fiscal year | 147 | 412 |
Three years before current fiscal year | 411 | 415 |
Four years before current fiscal year | 450 | 276 |
Prior | 1,071 | 989 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 35 | 0 |
Total | 2,578 | 2,518 |
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 | 0 |
Three years before current fiscal year | 0 | 35 |
Four years before current fiscal year | 0 | 5 |
Prior | 0 | 73 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | $ 0 | $ 113 |
INVESTMENTS - Equity Securities
INVESTMENTS - Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 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 | $ (70) | $ 21 | $ (110) | $ 40 |
Net investment gains (losses) recognized on securities sold during the period | 2 | 10 | (11) | 4 |
Unrealized and realized gains (losses) on equity securities | $ (68) | $ 31 | $ (121) | $ 44 |
INVESTMENTS - Trading Securitie
INVESTMENTS - Trading Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 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 | $ (108) | $ (176) | $ (202) | $ (246) |
Net investment gains (losses) recognized on securities sold during the period | 4 | 184 | 6 | 213 |
Unrealized and realized gains (losses) on trading securities | (104) | 8 | (196) | (33) |
Interest and dividend income from trading securities | 2 | 43 | 18 | 81 |
Net investment income (loss) from trading securities | $ (102) | $ 51 | $ (178) | $ 48 |
INVESTMENTS - Fixed Maturitie_2
INVESTMENTS - Fixed Maturities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 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 | $ (8) | $ (2) | $ (13) | $ (2) |
Net investment gains (losses) recognized on securities sold during the period | 0 | 1 | 6 | 2 |
Unrealized and realized gains (losses) from fixed maturities | (8) | (1) | (7) | 0 |
Interest and dividend income from fixed maturities | (17) | 9 | (1) | 10 |
Net investment income (loss) from fixed maturities | $ (25) | $ 8 | $ (8) | $ 10 |
DERIVATIVES - Derivatives by Ca
DERIVATIVES - Derivatives by Category (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Designated for hedge accounting | Cash flow hedge | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 2,261 | $ 1,876 |
Derivative Assets | 63 | 7 |
Derivative Liabilities | 384 | 437 |
Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 63,921 | 80,365 |
Derivative Assets | 7,001 | 12,351 |
Derivative Liabilities | 7,529 | 11,293 |
Currency swaps | Designated for hedge accounting | Cash flow hedge | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,307 | 921 |
Derivative Assets | 63 | 7 |
Derivative Liabilities | 86 | 42 |
Currency swaps | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 181 | 541 |
Derivative Assets | 9 | 1 |
Derivative Liabilities | 0 | 0 |
Swaps | Designated for hedge accounting | Cash flow hedge | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 954 | 955 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 298 | 395 |
Swaps | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,319 | 1,889 |
Derivative Assets | 15 | 0 |
Derivative Liabilities | 72 | 46 |
Futures | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 4,131 | 2,640 |
Derivative Assets | 2 | 0 |
Derivative Liabilities | 0 | 1 |
Swaps | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 10,340 | 13,378 |
Derivative Assets | 16 | 6 |
Derivative Liabilities | 10 | 4 |
Options | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 37,766 | 48,489 |
Derivative Assets | 6,559 | 12,024 |
Derivative Liabilities | 3,722 | 5,065 |
Futures | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 9,824 | 12,575 |
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 | 282 | 774 |
Derivative Assets | 17 | 9 |
Derivative Liabilities | 9 | 10 |
Currency forwards | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 78 | 79 |
Derivative Assets | 21 | 8 |
Derivative Liabilities | 21 | 7 |
Margin | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 224 | 125 |
Derivative Liabilities | 0 | 0 |
Collateral | Not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 138 | 178 |
Derivative Liabilities | 3,695 | 6,160 |
Amount Due from Reinsurers | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 4,681 | 5,813 |
Derivative Liabilities | 0 | 0 |
GMIB Reinsurance Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 1,498 | 1,848 |
Derivative Liabilities | 0 | 0 |
GMxB Derivative Features’ Liability | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 6,180 | 8,525 |
SCS, SIO, MSO and IUL Indexed Features | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 2,636 | 6,773 |
Embedded derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 6,179 | 7,661 |
Derivative Liabilities | 8,816 | 15,298 |
Derivative instruments including embedded derivative | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 66,182 | 82,241 |
Derivative Assets | 13,243 | 20,019 |
Derivative Liabilities | $ 16,729 | $ 27,028 |
DERIVATIVES - Financial Stateme
DERIVATIVES - Financial Statement Impact of Derivatives By Category (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | $ 2,229 | $ (1,199) | $ 3,050 | $ (3,745) |
Net investment income (loss) | 711 | 1,033 | 1,515 | 1,917 |
Interest credited to policyholders’ account balances | (309) | (309) | (624) | (600) |
Amount Due from Reinsurers | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (376) | 242 | (1,142) | 242 |
Net investment income (loss) | 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) | (79) | 120 | (339) | (458) |
Net investment income (loss) | 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) | 827 | (674) | 2,515 | 2,735 |
Net investment income (loss) | 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) | 3,543 | (1,183) | 3,866 | (2,328) |
Net investment income (loss) | 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) | 3,915 | (1,495) | 4,900 | 191 |
Net investment income (loss) | 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) | 2,229 | (1,197) | 3,050 | (3,790) |
Net investment income (loss) | 1 | 0 | 2 | 0 |
Interest credited to policyholders’ account balances | 8 | (17) | (10) | (17) |
AOCI | 160 | 6 | 153 | 33 |
Not designated for hedge accounting | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (1,677) | 322 | (1,823) | (3,953) |
Net investment income (loss) | 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 swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 13 | 0 | 18 | 0 |
Net investment income (loss) | 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) | (154) | 470 | (303) | (2,442) |
Net investment income (loss) | 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) | 398 | (161) | 456 | (449) |
Net investment income (loss) | 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) | 2,043 | (1,339) | 2,778 | (2,610) |
Net investment income (loss) | 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) | (3,446) | 1,201 | (3,730) | 2,346 |
Net investment income (loss) | 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) | (546) | 152 | (1,058) | (798) |
Net investment income (loss) | 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 | 0 |
Net investment income (loss) | 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) | 13 | (1) | 14 | (1) |
Net investment income (loss) | 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) | 2 | 0 | 2 | 1 |
Net investment income (loss) | 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 (loss) | 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 (loss) | 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) | (9) | (24) | (27) | (28) |
Net investment income (loss) | 1 | 0 | 2 | 0 |
Interest credited to policyholders’ account balances | 8 | (17) | (10) | (17) |
AOCI | 160 | 6 | 153 | 33 |
Cash flow hedge | Designated for hedge accounting | Currency swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 18 | 0 | 14 | 0 |
Net investment income (loss) | 1 | 0 | 2 | 0 |
Interest credited to policyholders’ account balances | 8 | (17) | (10) | (17) |
AOCI | (8) | 0 | 5 | 0 |
Cash flow hedge | Designated for hedge accounting | Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (27) | (24) | (41) | (28) |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
AOCI | $ 168 | $ 6 | $ 148 | $ 33 |
DERIVATIVES - Rollforward for C
DERIVATIVES - Rollforward for Cash Flows Hedges in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | $ 11,519 | |||
Ending Balance, March 31 | $ 5,589 | 5,589 | ||
Cash flow hedges recognized in AOCI | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (215) | $ (132) | (208) | $ (126) |
Amount recorded in AOCI | 140 | (73) | 98 | (95) |
Amount reclassified from AOCI to income | 21 | 47 | 56 | 63 |
Ending Balance, March 31 | (54) | (158) | (54) | (158) |
Cash flow hedges recognized in AOCI | Currency swaps | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amount recorded in AOCI | 3 | (17) | 0 | (17) |
Amount reclassified from AOCI to income | (10) | 17 | 6 | 17 |
Cash flow hedges recognized in AOCI | Interest swaps | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amount recorded in AOCI | 137 | (56) | 98 | (78) |
Amount reclassified from AOCI to income | $ 31 | $ 30 | $ 50 | $ 46 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Cash and securities collateral for derivative contract | $ 3,700 | $ 6,200 |
Cash and securities collateral | 138 | 178 |
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | ||
Derivative [Line Items] | ||
Initial margin requirement | 207 | 109 |
Us Treasury Notes Ultra Long Bonds And Euro Dollar | ||
Derivative [Line Items] | ||
Initial margin requirement | 172 | 200 |
Euro Stoxx, FTSE100, Topix, ASX200 and EAFE Indices | ||
Derivative [Line Items] | ||
Initial margin requirement | $ 15 | $ 16 |
DERIVATIVES - Offsetting of Fin
DERIVATIVES - Offsetting of Financial Assets and Liabilities and Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivatives | ||
Assets | ||
Gross Amount Recognized | $ 7,065 | $ 12,358 |
Gross Amount Offset in the Balance Sheets | 6,825 | 10,756 |
Net Amount Presented in the Balance Sheets | 240 | 1,602 |
Gross Amount not Offset in the Balance Sheets | 0 | (961) |
Net Amount | 240 | 641 |
Liabilities | ||
Gross Amount Recognized | 7,913 | 10,770 |
Gross Amount Offset in the Balance Sheets | 6,825 | 10,756 |
Net Amount Presented in the Balance Sheets | 1,088 | 14 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 1,088 | 14 |
Other financial assets | ||
Assets | ||
Gross Amount Recognized | 1,920 | 1,989 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 1,920 | 1,989 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 1,920 | 1,989 |
Other invested assets | ||
Assets | ||
Gross Amount Recognized | 8,985 | 14,347 |
Gross Amount Offset in the Balance Sheets | 6,825 | 10,756 |
Net Amount Presented in the Balance Sheets | 2,160 | 3,591 |
Gross Amount not Offset in the Balance Sheets | 0 | (961) |
Net Amount | 2,160 | 2,630 |
Other financial liabilities | ||
Liabilities | ||
Gross Amount Recognized | 3,778 | 3,919 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 3,778 | 3,919 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 3,778 | 3,919 |
Other liabilities | ||
Liabilities | ||
Gross Amount Recognized | 11,691 | 14,689 |
Gross Amount Offset in the Balance Sheets | 6,825 | 10,756 |
Net Amount Presented in the Balance Sheets | 4,866 | 3,933 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | $ 4,866 | $ 3,933 |
CLOSED BLOCK - Closed Block Sum
CLOSED BLOCK - Closed Block Summarized Financial Information (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Closed Block Liabilities: | ||||||
Future policy benefits, policyholders’ account balances and other | $ 5,806 | $ 5,928 | ||||
Policyholder dividend obligation | 0 | $ 0 | 0 | $ 72 | $ 28 | $ 160 |
Other liabilities | 66 | 39 | ||||
Total Closed Block liabilities | 5,872 | 5,967 | ||||
Assets Designated to the Closed Block: | ||||||
Fixed maturities AFS, at fair value (amortized cost of $3,189 and $3,185) (allowance for credit losses of $0 and $0) | 3,054 | 3,390 | ||||
Mortgage loans on real estate (net of allowance for credit losses of $3 and $4) | 1,693 | 1,771 | ||||
Policy loans | 581 | 602 | ||||
Cash and other invested assets | 70 | 63 | ||||
Other assets | 122 | 90 | ||||
Total assets designated to the Closed Block | 5,520 | 5,916 | ||||
Excess of Closed Block liabilities over assets designated to the Closed Block | 352 | 51 | ||||
Amounts included in AOCI: | ||||||
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $0; and net of income tax: $28 and $(43) | (96) | 172 | ||||
Maximum future earnings to be recognized from Closed Block assets and liabilities | 256 | 223 | ||||
Fixed maturity available for sale, amortized cost | 3,189 | 3,185 | ||||
Fixed maturities available-for-sale, allowance for credit losses | 0 | 0 | ||||
Mortgage loans, credit losses | (3) | (4) | ||||
Policyholder dividend obligation | 0 | $ 0 | 0 | $ 72 | $ 28 | $ 160 |
Closed block operations, income taxes | $ 28 | $ (43) |
CLOSED BLOCK - Closed Block Rev
CLOSED BLOCK - Closed Block Revenues and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues: | ||||
Premiums and other income | $ 31 | $ 37 | $ 64 | $ 76 |
Net investment income (loss) | 55 | 60 | 113 | 120 |
Investment gains (losses), net | (3) | 2 | (2) | 2 |
Total revenues | 83 | 99 | 175 | 198 |
Benefits and Other Deductions: | ||||
Policyholders’ benefits and dividends | 80 | 90 | 156 | 196 |
Other operating costs and expenses | 0 | 0 | 0 | 1 |
Total benefits and other deductions | 80 | 90 | 156 | 197 |
Net income (loss), before income taxes | 3 | 9 | 19 | 1 |
Income tax (expense) benefit | 3 | 0 | 4 | (1) |
Net income (loss) | $ 6 | $ 9 | $ 23 | $ 0 |
CLOSED BLOCK - Reconciliation o
CLOSED BLOCK - Reconciliation of Policyholder Dividend Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Movement in Closed Block Dividend Obligation [Roll Forward] | ||||
Beginning balance | $ 0 | $ 28 | $ 0 | $ 160 |
Unrealized investment gains (losses) | 0 | 44 | 0 | (88) |
Ending balance | $ 0 | $ 72 | $ 0 | $ 72 |
INSURANCE LIABILITIES - Rollfor
INSURANCE LIABILITIES - Rollforward of Liability and Reinsurance Ceded (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
GMDB Direct | ||||||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||||||
Opening Balance | $ 5,096 | $ 5,091 | $ 5,096 | $ 5,091 | $ 5,040 | $ 4,951 | $ 5,086 | $ 5,097 |
Paid guarantee benefits | (148) | (114) | (281) | (247) | ||||
Other changes in reserve | 204 | 119 | 426 | 241 | ||||
Impact of the Venerable transaction | 0 | 0 | ||||||
Closing Balance | 5,096 | 5,091 | 5,096 | 5,091 | 5,040 | 4,951 | 5,086 | 5,097 |
GMDB Assumed | ||||||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||||||
Opening Balance | 0 | 0 | 0 | 0 | 0 | 0 | 72 | 72 |
Paid guarantee benefits | 0 | (6) | 0 | (12) | ||||
Other changes in reserve | 0 | 8 | 0 | 14 | ||||
Impact of the Venerable transaction | (74) | (74) | ||||||
Closing Balance | 0 | 0 | 0 | 0 | 0 | 0 | 72 | 72 |
GMDB Ceded | ||||||||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||||||||
Opening Balance | (2,253) | (84) | (2,216) | (88) | ||||
Paid guarantee benefits | 61 | 20 | 117 | 23 | ||||
Other changes in reserve | (84) | (22) | (177) | (21) | ||||
Impact of the Venerable transaction | (2,176) | (2,176) | ||||||
Ending Balance | (2,276) | (2,262) | (2,276) | (2,262) | ||||
GMIB Direct | ||||||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||||||
Opening Balance | 6,165 | 5,905 | 6,165 | 5,905 | 6,024 | 5,892 | 5,966 | 6,026 |
Paid guarantee benefits | (145) | (92) | (266) | (184) | ||||
Other changes in reserve | 286 | 31 | 539 | 63 | ||||
Impact of the Venerable transaction | 0 | 0 | ||||||
Closing Balance | 6,165 | 5,905 | 6,165 | 5,905 | 6,024 | 5,892 | 5,966 | 6,026 |
GMIB Assumed | ||||||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||||||
Opening Balance | 0 | 0 | 0 | 0 | 0 | 0 | 144 | 196 |
Paid guarantee benefits | 0 | 3 | 0 | (49) | ||||
Other changes in reserve | 0 | (7) | 0 | (7) | ||||
Impact of the Venerable transaction | (140) | (140) | ||||||
Closing Balance | 0 | 0 | 0 | 0 | $ 0 | $ 0 | $ 144 | $ 196 |
GMIB Ceded | ||||||||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||||||||
Opening Balance | (3,750) | (1,907) | (3,968) | (2,488) | ||||
Paid guarantee benefits | (8) | 11 | 7 | 25 | ||||
Other changes in reserve | 51 | (131) | 254 | 436 | ||||
Impact of the Venerable transaction | (2,141) | (2,141) | ||||||
Ending Balance | $ (3,707) | $ (4,168) | $ (3,707) | $ (4,168) |
INSURANCE LIABILITIES - Variabl
INSURANCE LIABILITIES - Variable Annuity Contracts with GMDB and GMIB Features and Buybacks (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate Accounts | $ 84,329 | $ 107,577 |
GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate Accounts | 49,434 | $ 63,276 |
Direct Variable Annuity | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 16,793 | |
Separate Accounts | 84,329 | |
Total Account Values | 101,122 | |
NAR, gross | 26,514 | |
NAR, net of amounts reinsured | $ 15,385 | |
Average attained age of contract holders (in years) | 55 years 8 months 12 days | |
Percentage of policyholders over age 70 | 21% | |
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% | |
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 | $ 16,501 | |
Separate Accounts | 47,469 | |
Total Account Values | 63,970 | |
NAR, gross | 720 | |
NAR, net of amounts reinsured | $ 711 | |
Average attained age of contract holders (in years) | 51 years 6 months | |
Percentage of policyholders over age 70 | 11.90% | |
Direct Variable Annuity | GMDB | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 90 | |
Separate Accounts | 7,745 | |
Total Account Values | 7,835 | |
NAR, gross | 1,424 | |
NAR, net of amounts reinsured | $ 1,286 | |
Average attained age of contract holders (in years) | 69 years 2 months 12 days | |
Percentage of policyholders over age 70 | 51.60% | |
Direct Variable Annuity | GMDB | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 49 | |
Separate Accounts | 2,577 | |
Total Account Values | 2,626 | |
NAR, gross | 1,848 | |
NAR, net of amounts reinsured | $ 1,337 | |
Average attained age of contract holders (in years) | 75 years 7 months 6 days | |
Percentage of policyholders over age 70 | 73.60% | |
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% | |
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% | |
Direct Variable Annuity | GMDB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 153 | |
Separate Accounts | 26,538 | |
Total Account Values | 26,691 | |
NAR, gross | 22,522 | |
NAR, net of amounts reinsured | $ 12,051 | |
Average attained age of contract holders (in years) | 71 years 3 months 18 days | |
Percentage of policyholders over age 70 | 59.20% | |
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% | |
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 | $ 214 | |
Separate Accounts | 49,434 | |
Total Account Values | 49,648 | |
NAR, gross | 10,401 | |
NAR, net of amounts reinsured | $ 4,232 | |
Average attained age of contract holders (in years) | 68 years 9 months 18 days | |
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% | |
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 | 21,461 | |
Total Account Values | 21,476 | |
NAR, gross | 652 | |
NAR, net of amounts reinsured | $ 209 | |
Average attained age of contract holders (in years) | 65 years 2 months 12 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% | |
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% | |
Direct Variable Annuity | GMIB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 199 | |
Separate Accounts | 27,973 | |
Total Account Values | 28,172 | |
NAR, gross | 9,749 | |
NAR, net of amounts reinsured | $ 4,023 | |
Average attained age of contract holders (in years) | 71 years | |
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% | |
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 | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
GMDB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | $ 84,329 | $ 84,329 | $ 107,577 | ||
GMIB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 49,434 | 49,434 | 63,276 | ||
Direct Liabilities For Guarantees | |||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||||
Opening Balance | 1,112 | $ 1,050 | 1,096 | $ 1,022 | |
Paid guarantee benefits | (8) | (13) | (16) | (28) | |
Other changes in reserves | 30 | 33 | 54 | 76 | |
Closing Balance | 1,134 | $ 1,070 | 1,134 | $ 1,070 | |
Equity | GMDB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 39,786 | 39,786 | 52,771 | ||
Equity | GMIB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 14,596 | 14,596 | 20,015 | ||
Fixed income | GMDB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 4,738 | 4,738 | 5,391 | ||
Fixed income | GMIB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 2,179 | 2,179 | 2,507 | ||
Balanced | GMDB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 38,682 | 38,682 | 48,390 | ||
Balanced | GMIB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 32,396 | 32,396 | 40,491 | ||
Other | GMDB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | 1,123 | 1,123 | 1,025 | ||
Other | GMIB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Separate Accounts | $ 263 | $ 263 | $ 263 |
FAIR VALUE DISCLOSURES - Assets
FAIR VALUE DISCLOSURES - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Investments: | |||
Fixed maturities, AFS at fair value | $ 67,254 | $ 78,216 | |
Fixed maturities, at fair value using the fair value option | [1] | 1,562 | 1,641 |
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | [1] | 1,150 | 1,191 |
Accrued interest payable for notes issued by consolidated variable interest entity | 8 | 6 | |
Carrying Value | Other liabilities | |||
Investments: | |||
Other equity investments | 15 | ||
Carrying Value | CLO Warehouse Debt | |||
Liabilities: | |||
Short-term debt | 245 | 92 | |
U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities, AFS at fair value | 6,979 | 15,385 | |
State and Political Subdivisions | |||
Investments: | |||
Fixed maturities, AFS at fair value | 647 | 662 | |
Foreign governments | |||
Investments: | |||
Fixed maturities, AFS at fair value | 959 | 1,152 | |
Residential mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 509 | 98 | |
Asset-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 8,333 | 5,934 | |
Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 3,341 | 2,421 | |
Redeemable preferred stock | |||
Investments: | |||
Fixed maturities, AFS at fair value | 44 | 53 | |
Recurring | |||
Investments: | |||
Fixed maturities, AFS at fair value | 67,254 | 78,216 | |
Fixed maturities, at fair value using the fair value option | 1,562 | 1,641 | |
Other equity investments | 813 | 784 | |
Trading securities, at fair value | 538 | 631 | |
Other invested assets: | 3,172 | 7,141 | |
Cash equivalents | 3,312 | 3,568 | |
Segregated securities | 1,747 | 1,504 | |
Amounts due from reinsurer | 4,681 | 5,813 | |
GMIB reinsurance contracts asset | 1,498 | 1,848 | |
Separate Accounts assets | 115,940 | 146,697 | |
Total Assets | 200,517 | 247,843 | |
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 1,387 | 1,277 | |
Contingent payment arrangements | 42 | 38 | |
Total Liabilities | 10,264 | 16,631 | |
Recurring | Corporate | |||
Investments: | |||
Fixed maturities, AFS at fair value | 46,442 | 52,511 | |
Recurring | U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities, AFS at fair value | 6,979 | 15,385 | |
Recurring | State and Political Subdivisions | |||
Investments: | |||
Fixed maturities, AFS at fair value | 647 | 662 | |
Recurring | Foreign governments | |||
Investments: | |||
Fixed maturities, AFS at fair value | 959 | 1,152 | |
Recurring | Residential mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 509 | 98 | |
Recurring | Asset-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 8,333 | 5,934 | |
Recurring | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 3,341 | 2,421 | |
Recurring | Redeemable preferred stock | |||
Investments: | |||
Fixed maturities, AFS at fair value | 44 | 53 | |
Recurring | Short-term investments | |||
Investments: | |||
Other invested assets: | 221 | 30 | |
Recurring | Assets of consolidated VIEs/VOEs | |||
Investments: | |||
Other invested assets: | 466 | 627 | |
Recurring | Swaps | |||
Investments: | |||
Other invested assets: | (363) | (473) | |
Recurring | Credit default swaps | |||
Investments: | |||
Other invested assets: | 9 | (1) | |
Recurring | Futures | |||
Investments: | |||
Other invested assets: | 2 | (1) | |
Recurring | Options | |||
Investments: | |||
Other invested assets: | 2,837 | 6,959 | |
Recurring | Swaptions | |||
Investments: | |||
Other invested assets: | 0 | ||
Recurring | GMxB derivative features’ liability | |||
Liabilities: | |||
Guarantees | 6,180 | 8,525 | |
Recurring | SCS, SIO, MSO and IUL indexed features’ liability | |||
Liabilities: | |||
Guarantees | 2,636 | 6,773 | |
Recurring | Level 1 | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Fixed maturities, at fair value using the fair value option | 0 | ||
Other equity investments | 305 | 322 | |
Trading securities, at fair value | 280 | 340 | |
Other invested assets: | 84 | 165 | |
Cash equivalents | 2,764 | 3,275 | |
Segregated securities | 0 | 0 | |
Amounts due from reinsurer | 0 | 0 | |
GMIB reinsurance contracts asset | 0 | 0 | |
Separate Accounts assets | 113,384 | 144,124 | |
Total Assets | 116,817 | 148,226 | |
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 0 | 0 | |
Contingent payment arrangements | 0 | 0 | |
Total Liabilities | 15 | 16 | |
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 | 0 | |
Recurring | Level 1 | Short-term investments | |||
Investments: | |||
Other invested assets: | 7 | 0 | |
Recurring | Level 1 | Assets of consolidated VIEs/VOEs | |||
Investments: | |||
Other invested assets: | 75 | 166 | |
Recurring | Level 1 | Swaps | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | Credit default swaps | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | Futures | |||
Investments: | |||
Other invested assets: | 2 | (1) | |
Recurring | Level 1 | Options | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | Swaptions | |||
Investments: | |||
Other invested assets: | 0 | ||
Recurring | Level 1 | GMxB derivative features’ liability | |||
Liabilities: | |||
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 | 65,414 | 76,649 | |
Fixed maturities, at fair value using the fair value option | 1,139 | 1,440 | |
Other equity investments | 495 | 457 | |
Trading securities, at fair value | 206 | 226 | |
Other invested assets: | 3,033 | 6,965 | |
Cash equivalents | 548 | 293 | |
Segregated securities | 1,747 | 1,504 | |
Amounts due from reinsurer | 0 | 0 | |
GMIB reinsurance contracts asset | 0 | 0 | |
Separate Accounts assets | 2,555 | 2,572 | |
Total Assets | 75,137 | 90,106 | |
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 1,387 | 1,277 | |
Contingent payment arrangements | 0 | 0 | |
Total Liabilities | 4,027 | 8,052 | |
Recurring | Level 2 | Corporate | |||
Investments: | |||
Fixed maturities, AFS at fair value | 44,675 | 51,007 | |
Recurring | Level 2 | U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities, AFS at fair value | 6,979 | 15,385 | |
Recurring | Level 2 | State and Political Subdivisions | |||
Investments: | |||
Fixed maturities, AFS at fair value | 617 | 627 | |
Recurring | Level 2 | Foreign governments | |||
Investments: | |||
Fixed maturities, AFS at fair value | 959 | 1,152 | |
Recurring | Level 2 | Residential mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 509 | 98 | |
Recurring | Level 2 | Asset-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 8,315 | 5,926 | |
Recurring | Level 2 | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 3,316 | 2,401 | |
Recurring | Level 2 | Redeemable preferred stock | |||
Investments: | |||
Fixed maturities, AFS at fair value | 44 | 53 | |
Recurring | Level 2 | Short-term investments | |||
Investments: | |||
Other invested assets: | 164 | 30 | |
Recurring | Level 2 | Assets of consolidated VIEs/VOEs | |||
Investments: | |||
Other invested assets: | 386 | 450 | |
Recurring | Level 2 | Swaps | |||
Investments: | |||
Other invested assets: | (363) | (473) | |
Recurring | Level 2 | Credit default swaps | |||
Investments: | |||
Other invested assets: | 9 | (1) | |
Recurring | Level 2 | Futures | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 2 | Options | |||
Investments: | |||
Other invested assets: | 2,837 | 6,959 | |
Recurring | Level 2 | Swaptions | |||
Investments: | |||
Other invested assets: | 0 | ||
Recurring | Level 2 | GMxB derivative features’ liability | |||
Liabilities: | |||
Guarantees | 0 | 0 | |
Recurring | Level 2 | SCS, SIO, MSO and IUL indexed features’ liability | |||
Liabilities: | |||
Guarantees | 2,636 | 6,773 | |
Recurring | Level 3 | |||
Investments: | |||
Fixed maturities, AFS at fair value | 1,840 | 1,567 | |
Fixed maturities, at fair value using the fair value option | 423 | 201 | |
Other equity investments | 13 | 5 | |
Trading securities, at fair value | 52 | 65 | |
Other invested assets: | 55 | 11 | |
Cash equivalents | 0 | 0 | |
Segregated securities | 0 | 0 | |
Amounts due from reinsurer | 4,681 | 5,813 | |
GMIB reinsurance contracts asset | 1,498 | 1,848 | |
Separate Accounts assets | 1 | 1 | |
Total Assets | 8,563 | 9,511 | |
Liabilities: | |||
Notes issued by consolidated variable interest entities, at fair value using the fair value option | 0 | 0 | |
Contingent payment arrangements | 42 | 38 | |
Total Liabilities | 6,222 | 8,563 | |
Recurring | Level 3 | Corporate | |||
Investments: | |||
Fixed maturities, AFS at fair value | 1,767 | 1,504 | |
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 | 30 | 35 | |
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 | 18 | 8 | |
Recurring | Level 3 | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 25 | 20 | |
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: | 50 | 0 | |
Recurring | Level 3 | Assets of consolidated VIEs/VOEs | |||
Investments: | |||
Other invested assets: | 5 | 11 | |
Recurring | Level 3 | Swaps | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Credit default swaps | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Futures | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Options | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Swaptions | |||
Investments: | |||
Other invested assets: | 0 | ||
Recurring | Level 3 | GMxB derivative features’ liability | |||
Liabilities: | |||
Guarantees | 6,180 | 8,525 | |
Recurring | Level 3 | SCS, SIO, MSO and IUL indexed features’ liability | |||
Liabilities: | |||
Guarantees | 0 | 0 | |
Recurring | NAV | |||
Investments: | |||
Separate Accounts assets | 438 | 404 | |
Variable Interest Entity, Primary Beneficiary | Recurring | |||
Liabilities: | |||
Guarantees | 19 | 18 | |
Variable Interest Entity, Primary Beneficiary | Recurring | Level 1 | |||
Liabilities: | |||
Guarantees | 15 | 16 | |
Variable Interest Entity, Primary Beneficiary | Recurring | Level 2 | |||
Liabilities: | |||
Guarantees | 4 | 2 | |
Variable Interest Entity, Primary Beneficiary | Recurring | Level 3 | |||
Liabilities: | |||
Guarantees | $ 0 | $ 0 | |
[1]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs. |
FAIR VALUE DISCLOSURES - Narrat
FAIR VALUE DISCLOSURES - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Fair value adjustments on GMIB asset | $ 148 | $ 107 | |
Fair value adjustments on amounts due from reinsurers | 213 | 210 | |
AFS fixed maturities transferred from Level 3 to Level 2 | 184 | $ 792 | |
AFS fixed maturities transferred from Level 2 to Level 3 | $ 250 | $ 17 | |
Fair value measurement with unobservable inputs reconciliation recurring basis asset transfers percentage | 6.20% | 6.10% | |
Nonrecurring | Level 3 | |||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||
Investments, fair value disclosure | $ 1,200 | $ 635 |
FAIR VALUE DISCLOSURES - Fair V
FAIR VALUE DISCLOSURES - Fair Value Measurement Reconciliation for All Levels (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Total gains (losses), realized and unrealized, included in: | ||||
Transfers into level 3 | $ 250 | $ 17 | ||
Transfers out of level 3 | (184) | (792) | ||
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 | $ 1,683 | $ 1,255 | 1,504 | 1,702 |
Net investment income (loss) | 1 | 2 | 2 | 3 |
Investment gains (losses), net | (1) | (6) | 0 | (12) |
Total realized and unrealized gains (losses) | 0 | (4) | 2 | (9) |
Other comprehensive income (loss) | (50) | 17 | (81) | 26 |
Purchases | 327 | 294 | 559 | 459 |
Sales | (74) | (137) | (161) | (206) |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | 0 |
Transfers into level 3 | (5) | 0 | 65 | 2 |
Transfers out of level 3 | (114) | (164) | (121) | (713) |
Ending Balance | 1,767 | 1,261 | 1,767 | 1,261 |
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 | (50) | 17 | (79) | 26 |
State and Political Subdivisions | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 32 | 38 | 35 | 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) | (2) | 0 | (4) | (1) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | (1) | (1) | (1) |
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 | 30 | 37 | 30 | 37 |
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 | (2) | 0 | (4) | (1) |
Asset-backed | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 332 | 65 | 8 | 20 |
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) | 0 | (1) | 0 |
Purchases | (313) | 74 | 12 | 124 |
Sales | 0 | (11) | (1) | (16) |
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 | 18 | 128 | 18 | 128 |
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 | (1) | 0 |
CMBS | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 238 | 4 | 20 | 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) | (1) | 0 | (2) | 0 |
Purchases | (212) | 6 | 7 | 10 |
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 | 25 | 10 | 25 | 10 |
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 | (2) | 0 |
Trading Securities, at Fair Value | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 52 | 39 | 65 | 39 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | (13) | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | (13) | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
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 | 52 | 39 | 52 | 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 | (13) | 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 | 342 | 142 | 201 | 80 |
Net investment income (loss) | 4 | 8 | 0 | 11 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 4 | 8 | 0 | 11 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 64 | 42 | 153 | 130 |
Sales | (24) | (1) | (53) | (9) |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | (3) | 8 | 185 | 15 |
Transfers out of level 3 | 40 | (51) | (63) | (79) |
Ending Balance | 423 | 148 | 423 | 148 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 4 | 8 | 0 | 11 |
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 | 11 | 83 | 16 | 84 |
Net investment income (loss) | 0 | 18 | 0 | 19 |
Investment gains (losses), net | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 18 | 0 | 19 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 57 | 0 | 57 | 3 |
Sales | 0 | 2 | 0 | (1) |
Other | 0 | 0 | ||
Activity related to consolidated VIEs/VOEs | (1) | 0 | (3) | (2) |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | (3) | 0 |
Ending Balance | 67 | 103 | 67 | 103 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 18 | 0 | 19 |
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 | (37) | 16 | (74) | 1 |
GMIB Reinsurance Contract Asset | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 1,582 | 1,907 | 1,848 | 2,488 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | (79) | 120 | (339) | (458) |
Total realized and unrealized gains (losses) | (79) | 120 | (339) | (458) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 11 | 11 | 21 | 21 |
Sales | (16) | (12) | (32) | (25) |
Other | 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 | 1,498 | 2,026 | 1,498 | 2,026 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | (79) | 120 | (339) | (458) |
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 | (35) | 12 | (77) | 12 |
Amounts Due from Reinsurers | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 5,056 | 0 | 5,815 | 0 |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | (376) | 242 | (1,142) | 242 |
Total realized and unrealized gains (losses) | (376) | 242 | (1,142) | 242 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 28 | 10 | 61 | 10 |
Sales | (27) | (1) | (53) | (1) |
Other | 5,259 | 5,259 | ||
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 | 4,681 | 5,510 | 4,681 | 5,510 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | (376) | 242 | (1,142) | 242 |
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 | 0 | 0 | 1 | 1 |
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 | 1 | 0 | 1 |
Sales | 1 | 0 | 0 | 0 |
Other | 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 | (1) |
Ending Balance | 1 | 1 | 1 | 1 |
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 | 395 | (60) | 878 | 20 |
GMxB Derivative Features Liability | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | (6,925) | (7,824) | (8,525) | (11,131) |
Net investment income (loss) | 0 | 0 | 0 | 0 |
Investment gains (losses), net | 827 | (673) | 2,515 | 2,735 |
Total realized and unrealized gains (losses) | 827 | (673) | 2,515 | 2,735 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | (116) | (121) | (236) | (240) |
Sales | 34 | 23 | 66 | 41 |
Other | 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 | 140 | 0 | 140 |
Ending Balance | (6,180) | (8,455) | (6,180) | (8,455) |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 827 | (673) | 2,515 | 2,735 |
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 | (37) | (36) | (38) | (28) |
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 | (3) | (1) | (2) | (8) |
Sales | 0 | 0 | 0 | 0 |
Other | 0 | 0 | ||
Activity related to consolidated VIEs/VOEs | (2) | (1) | (2) | (2) |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of level 3 | 0 | 0 | 0 | |
Ending Balance | (42) | (38) | (42) | $ (38) |
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 | |
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 |
FAIR VALUE DISCLOSURES - Quanti
FAIR VALUE DISCLOSURES - Quantitative Information about Level 3 (Details) - Level 3 $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Discounted cash flow | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 42 | $ 38 |
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 | 0.070 | 0.070 |
Expected revenue growth rate | Discounted cash flow | Minimum | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.020 | 0.020 |
Expected revenue growth rate | Discounted cash flow | Maximum | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.839 | 0.839 |
Expected revenue growth rate | Discounted cash flow | Weighted Average | Alliance Bernstein | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.079 | 0.119 |
Corporate | Matrix pricing model | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 247 | $ 258 |
Corporate | Market comparable companies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 885 | $ 888 |
Corporate | Spread over benchmark | Matrix pricing model | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0020 | 0.0020 |
Corporate | Spread over benchmark | Matrix pricing model | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0803 | 0.0270 |
Corporate | Spread over benchmark | Matrix pricing model | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0151 | 0.0144 |
Corporate | EBITDA Multiple | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 5.2 | 4.9 |
Corporate | EBITDA Multiple | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 31.8 | 62.3 |
Corporate | EBITDA Multiple | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 13.4 | 13 |
Corporate | Discount rate | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.080 | 0.062 |
Corporate | Discount rate | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.385 | 0.215 |
Corporate | Discount rate | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.102 | 0.091 |
Corporate | Cash flow multiples | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 1.2 | 0.5 |
Corporate | Cash flow multiples | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 11.6 | 10 |
Corporate | Cash flow multiples | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 6.6 | 5.5 |
Corporate | Loan to value | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0 | 0.031 |
Corporate | Loan to value | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.00444 | 0.634 |
Corporate | Loan to value | Market comparable companies | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.00259 | 0.308 |
Trading Securities, at Fair Value | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 52 | $ 65 |
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 | 7.3 | 7.3 |
Trading Securities, at Fair Value | Discount factor | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.100 | 0.1000 |
Other equity investments | Market comparable companies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 4 | $ 4 |
Other equity investments | Revenue/earnings multiple | Market comparable companies | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 7.1 | 7.8 |
Other equity investments | Revenue/earnings multiple | Market comparable companies | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 9.5 | 10.3 |
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 | 9.5 |
GMIB reinsurance contract asset | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 1,498 | $ 1,848 |
GMIB reinsurance contract asset | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0045 | 0.0045 |
GMIB reinsurance contract asset | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | 0.2086 |
GMIB reinsurance contract asset | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0280 | 0.0265 |
GMIB reinsurance contract asset | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0027 | 0.0027 |
GMIB reinsurance contract asset | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0866 | 0.0866 |
GMIB reinsurance contract asset | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0098 | 0.0093 |
GMIB reinsurance contract asset | Utilization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0004 | 0.0004 |
GMIB reinsurance contract asset | Utilization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.6044 | 0.6044 |
GMIB reinsurance contract asset | Utilization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0587 | 0.0527 |
GMIB reinsurance contract asset | Non-performance risk | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0111 | 0.0057 |
GMIB reinsurance contract asset | Non-performance risk | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0169 | 0.0093 |
GMIB reinsurance contract asset | Non-performance risk | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0113 | 0.0060 |
GMIB reinsurance contract asset | Volatility rate - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.15 | 0.11 |
GMIB reinsurance contract asset | Volatility rate - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.34 | 0.31 |
GMIB reinsurance contract asset | 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 contract asset | 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 contract asset | Mortality rate | Discounted cash flow | Ages 0 - 40 | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0017 | 0.0017 |
GMIB reinsurance contract asset | Mortality rate | Discounted cash flow | Ages 0 - 40 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0283 | 0.0279 |
GMIB reinsurance contract asset | Mortality rate | Discounted cash flow | Ages 41 - 60 | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0006 | 0.0006 |
GMIB reinsurance contract asset | Mortality rate | Discounted cash flow | Ages 41 - 60 | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0053 | 0.0053 |
GMIB reinsurance contract asset | Mortality rate | Discounted cash flow | Ages 41 - 60 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0283 | 0.0279 |
GMIB reinsurance contract asset | Mortality rate | Discounted cash flow | Ages 61 - 115 | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0031 | 0.000031 |
GMIB reinsurance contract asset | Mortality rate | Discounted cash flow | Ages 61 - 115 | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.4000 | 0.004000 |
GMIB reinsurance contract asset | Mortality rate | Discounted cash flow | Ages 61 - 115 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0283 | 0.0279 |
Amount Due from Reinsurers | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 4,681 | $ 5,813 |
Amount Due from Reinsurers | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0045 | 0.0045 |
Amount Due from Reinsurers | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | 0.2086 |
Amount Due from Reinsurers | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0180 | 0.0170 |
Amount Due from Reinsurers | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0027 | 0.0027 |
Amount Due from Reinsurers | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0866 | 0.0866 |
Amount Due from Reinsurers | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0124 | 0.0118 |
Amount Due from Reinsurers | Utilization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0004 | 0.0004 |
Amount Due from Reinsurers | Utilization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.6044 | 0.6044 |
Amount Due from Reinsurers | Utilization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0819 | 0.0720 |
Amount Due from Reinsurers | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0059 | 0.0037 |
Amount Due from Reinsurers | Non-performance risk | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0059 | 37 |
Amount Due from Reinsurers | Volatility rate - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.15 | 0.11 |
Amount Due from Reinsurers | Volatility rate - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.34 | 0.31 |
Amount 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 | 0.24 |
Amount 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 | 0.0001 |
Amount 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 | 0.0017 |
Amount 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 | 0.0217 |
Amount 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 | 0.0006 |
Amount 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 | 0.0053 |
Amount 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 | 0.0217 |
Amount 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 | 0.0031 |
Amount 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 | 0.4000 |
Amount 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 | 0.0217 |
GMIB NLG | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 6,198 | $ 8,503 |
GMIB NLG | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0104 | 0.000104 |
GMIB NLG | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2357 | 0.2357 |
GMIB NLG | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0373 | 0.0355 |
GMIB NLG | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0027 | 0.000027 |
GMIB NLG | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0866 | 0.0866 |
GMIB NLG | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0114 | 0.0104 |
GMIB NLG | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0191 | 0.0111 |
GMIB NLG | Non-performance risk | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0191 | 1.11 |
GMIB NLG | 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 |
GMIB NLG | 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 |
GMIB NLG | Mortality rate | Discounted cash flow | Ages 0 - 40 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0160 | 0.0162 |
GMIB NLG | Mortality rate | Discounted cash flow | Ages 41 - 60 | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0007 | 0.0007 |
GMIB NLG | Mortality rate | Discounted cash flow | Ages 41 - 60 | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0057 | 0.0057 |
GMIB NLG | Mortality rate | Discounted cash flow | Ages 41 - 60 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0160 | 0.0162 |
GMIB NLG | Mortality rate | Discounted cash flow | Ages 61 - 115 | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0044 | 0.000044 |
GMIB NLG | Mortality rate | Discounted cash flow | Ages 61 - 115 | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.4360 | 0.4360 |
GMIB NLG | Mortality rate | Discounted cash flow | Ages 61 - 115 | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0160 | 0.0162 |
GMIB NLG | Annuitization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0003 | 0.00 |
GMIB NLG | Annuitization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 1 | 1 |
GMIB NLG | Annuitization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0594 | 0.0524 |
GWBL/GMWB | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 65 | $ 99 |
GWBL/GMWB | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0060 | 0.000060 |
GWBL/GMWB | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | 0.2086 |
GWBL/GMWB | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0280 | 0.00000265 |
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 | 0.00000800 |
GWBL/GMWB | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0098 | 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 | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0191 | 0.0111 |
GWBL/GMWB | Volatility rate - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.15 | 0.11 |
GWBL/GMWB | Volatility rate - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.34 | 0.31 |
GWBL/GMWB | Volatility rate - Equity | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.24 | 0.24 |
GIB | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ (82) | $ (75) |
GIB | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0060 | 0.0060 |
GIB | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | 0.2086 |
GIB | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0280 | 0.0265 |
GIB | Withdrawal rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0013 | 0.0013 |
GIB | Withdrawal rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0866 | 0.0866 |
GIB | Withdrawal rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0098 | 0.0093 |
GIB | Utilization rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0004 | 0.0004 |
GIB | Utilization rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 1 | 0.010000 |
GIB | Utilization rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0587 | 0.0527 |
GIB | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0191 | 0.0111 |
GIB | Volatility rate - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.15 | 0.11 |
GIB | Volatility rate - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.34 | 0.31 |
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 | $ (1) | $ (3) |
GMAB | Lapse rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0060 | 0.000060 |
GMAB | Lapse rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.2086 | 0.2086 |
GMAB | Lapse rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0280 | 0.0265 |
GMAB | Non-performance risk | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.0191 | 0.0111 |
GMAB | Volatility rate - Equity | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.15 | 0.11 |
GMAB | Volatility rate - Equity | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.34 | 0.31 |
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 | Jun. 30, 2022 | Dec. 31, 2021 | |
Consolidated Amounts [Abstract] | |||
Mortgage loans on real estate | [1] | $ 14,480 | $ 14,033 |
Policy loans | 4,020 | 4,024 | |
Policyholders liabilities: Investment contracts | 78,766 | 79,357 | |
Short-term and long-term debt | 4,085 | 3,931 | |
Separate Accounts liabilities | 116,765 | 147,306 | |
Carrying Value | |||
Consolidated Amounts [Abstract] | |||
Mortgage loans on real estate | 14,480 | 14,033 | |
Policy loans | 4,020 | 4,024 | |
Policyholders liabilities: Investment contracts | 2,031 | 2,035 | |
FHLB funding agreements | 7,287 | 6,647 | |
FABN funding agreements | 6,671 | 6,689 | |
Short-term and long-term debt | 3,840 | 3,839 | |
Separate Accounts liabilities | 10,292 | 11,620 | |
Carrying Value | CLO Warehouse Debt | |||
Consolidated Amounts [Abstract] | |||
Short-term debt | 245 | 92 | |
Measured at Fair Value | |||
Consolidated Amounts [Abstract] | |||
Mortgage loans on real estate | 13,258 | 14,308 | |
Policy loans | 4,993 | 5,050 | |
Policyholders liabilities: Investment contracts | 1,916 | 2,103 | |
FHLB funding agreements | 7,241 | 6,679 | |
FABN funding agreements | 6,077 | 6,626 | |
Short-term and long-term debt | 3,753 | 4,544 | |
Separate Accounts liabilities | 10,292 | 11,620 | |
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 | 7,241 | 6,679 | |
FABN funding agreements | 6,077 | 6,626 | |
Short-term and long-term debt | 3,753 | 4,544 | |
Separate Accounts liabilities | 0 | 0 | |
Measured at Fair Value | Level 3 | |||
Consolidated Amounts [Abstract] | |||
Mortgage loans on real estate | 13,258 | 14,308 | |
Policy loans | 4,993 | 5,050 | |
Policyholders liabilities: Investment contracts | 1,916 | 2,103 | |
FHLB funding agreements | 0 | 0 | |
FABN funding agreements | 0 | 0 | |
Short-term and long-term debt | 0 | 0 | |
Separate Accounts liabilities | $ 10,292 | $ 11,620 | |
[1]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs. |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Certain Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 2 | $ 2 | $ 4 | $ 5 |
Interest cost | 14 | 14 | 28 | 27 |
Expected return on assets | (40) | (38) | (79) | (76) |
Prior Period Svc Cost Amortization | (1) | 0 | (1) | (1) |
Actuarial (gain) loss | 0 | 0 | 1 | 1 |
Net amortization | 20 | 29 | 40 | 58 |
Impact of settlement | 0 | 0 | 0 | 0 |
Net Periodic Pension Expense | $ (5) | $ 7 | $ (7) | $ 14 |
EQUITY - Preferred Stock Activi
EQUITY - Preferred Stock Activity (Details) - shares | Jun. 30, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 64,000 | 64,000 |
Preferred stock, shares issued (in shares) | 64,000 | 64,000 |
Preferred stock, shares outstanding (in shares) | 64,000 | 64,000 |
Series A | ||
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 | ||
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 | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 12,000 | 12,000 |
Preferred stock, shares issued (in shares) | 12,000 | 12,000 |
Preferred stock, shares outstanding (in shares) | 12,000 | 12,000 |
EQUITY - Dividends Declared (De
EQUITY - Dividends Declared (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Class of Stock [Line Items] | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.20 | $ 0.18 | $ 0.38 | $ 0.35 |
Series A | ||||
Class of Stock [Line Items] | ||||
Cash dividends declared per preferred stock (in dollars per share) | 328 | 328 | 656 | 656 |
Series B | ||||
Class of Stock [Line Items] | ||||
Cash dividends declared per preferred stock (in dollars per share) | 619 | 619 | 619 | 619 |
Series C | ||||
Class of Stock [Line Items] | ||||
Cash dividends declared per preferred stock (in dollars per share) | $ 269 | $ 269 | $ 538 | $ 469 |
EQUITY - Share Repurchase (Deta
EQUITY - Share Repurchase (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
May 31, 2022 | Apr. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Feb. 09, 2022 | |
Class of Stock [Line Items] | |||||||
Share repurchase plan, authorized amount | $ 1,200,000,000 | ||||||
Share repurchase program, remaining authorized repurchase amount | $ 705,000,000 | $ 705,000,000 | |||||
Shares repurchased (in shares) | 7,900,000 | 3,200,000 | |||||
Accelerated Share Repurchase Agreement | |||||||
Class of Stock [Line Items] | |||||||
Shares repurchased (in shares) | 7,600,000 | 8,200,000 | 16,200,000 | 22,700,000 | |||
Share repurchases, average purchase price (in dollars per share) | $ 28.90 | $ 34.09 | $ 30.81 | $ 31.29 | |||
Accelerated Share Repurchase Agreement, April 2022 | |||||||
Class of Stock [Line Items] | |||||||
Share repurchase plan, authorized amount | $ 100,000,000 | ||||||
Shares repurchased (in shares) | 2,600,000 | ||||||
Accelerated share repurchases, settlement payment | $ 100,000,000 | ||||||
Additional shares received (in shares) | 1,200,000 | 684,700 | |||||
Accelerated Share Repurchase Agreement, May 2022 | |||||||
Class of Stock [Line Items] | |||||||
Share repurchase plan, authorized amount | $ 150,000,000 | ||||||
Shares repurchased (in shares) | 4,300,000 | ||||||
Accelerated share repurchases, settlement payment | $ 150,000,000 |
EQUITY - Cumulative Gains (Loss
EQUITY - Cumulative Gains (Losses) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Unrealized gains (losses) on investments | $ (4,884) | $ 2,684 |
Defined benefit pension plans | (624) | (669) |
Foreign currency translation adjustments | (90) | (45) |
Total accumulated other comprehensive income (loss) | (5,598) | 1,970 |
Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest | (50) | (34) |
Accumulated other comprehensive income (loss) attributable to Holdings | $ (5,548) | $ 2,004 |
EQUITY - Components of OCI, Net
EQUITY - Components of OCI, Net of Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity [Abstract] | ||||
Net unrealized gains (losses) arising during the period | $ (4,654) | $ 1,822 | $ (9,734) | $ (2,237) |
(Gains) losses reclassified into net income (loss) during the period | 169 | (322) | 433 | (486) |
Net unrealized gains (losses) on investments | (4,485) | 1,500 | (9,301) | (2,723) |
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | 743 | (280) | 1,733 | 790 |
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(1,018) and $838) | (3,742) | 1,220 | (7,568) | (1,933) |
Change in defined benefit plans: | ||||
Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost | 2 | 22 | 45 | 55 |
Change in defined benefit plans (net of deferred income tax expense (benefit) of $(9) and $9) | 2 | 22 | 45 | 55 |
Foreign currency translation adjustments: | ||||
Foreign currency translation gains (losses) arising during the period | (33) | 2 | (45) | (4) |
Foreign currency translation adjustment | (33) | 2 | (45) | (4) |
Total other comprehensive income (loss), net of income taxes | (3,773) | 1,244 | (7,568) | (1,882) |
Less: Other comprehensive income (loss) attributable to noncontrolling interest | (12) | 1 | (16) | (2) |
Other comprehensive income (loss) attributable to Holdings | (3,761) | 1,243 | (7,552) | (1,880) |
Reclassification adjustment | (45) | 85 | (115) | 129 |
AFS Securities, OCI, tax | (993) | 324 | (2,011) | (514) |
Defined benefit plan, OCI, tax | $ 0 | $ 5 | $ (9) | $ 14 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTEREST - Summary of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Balance, beginning of period | $ 386 | $ 137 | $ 468 | [1],[2] | $ 143 | |
Net earnings (loss) attributable to redeemable noncontrolling interests | (29) | 4 | (56) | 4 | ||
Purchase/change of redeemable noncontrolling interests | (9) | (99) | (64) | (105) | ||
Balance, end of period | $ 348 | [1],[2] | $ 42 | $ 348 | [1],[2] | $ 42 |
[1]See Note 11 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest.[2]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs. |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details) shares in Millions | 1 Months Ended | |||||
Jul. 31, 2022 USD ($) | Apr. 30, 2019 USD ($) shares | Feb. 28, 2018 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Feb. 29, 2016 USD ($) legalAction federalAction | |
Loss Contingencies [Line Items] | ||||||
Unaccrued amounts of reasonably possible range of losses | $ 250,000,000 | |||||
Federal home loan bank stock | 339,000,000 | |||||
Carrying value of collateral pledged for federal home loan bank | 10,200,000,000 | |||||
Commitments by the Company to provide equity financing | 1,300,000,000 | |||||
Face amount of mortgage loans | 830,000,000 | |||||
Revolving 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 | ||||||
Loss Contingencies [Line Items] | ||||||
Letters of credit outstanding | 30,000,000 | |||||
Holdings Revolving Credit Facility | Revolving credit facility | ||||||
Loss Contingencies [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 2,500,000,000 | $ 1,500,000,000 | ||||
Debt instrument, term | 5 years | |||||
Holdings Revolving Credit Facility | Letter of credit | ||||||
Loss Contingencies [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | $ 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 | |||||
Pre-Capitalized Trust Securities, Redeemable February 15, 2029 | ||||||
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 | 10 years | |||||
Sale of stock, semi-annual facility fee, rate | 2.125% | |||||
Pre-Capitalized Trust Securities, Redeemable February 15, 2049 | ||||||
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 | 30 years | |||||
Sale of stock, semi-annual facility fee, rate | 2.715% | |||||
New York | Equitable Financial | ||||||
Loss Contingencies [Line Items] | ||||||
Number of actions | legalAction | 2 | |||||
Brach Family Foundation Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Liability for future policy benefits, face value of policy | $ 1,000,000 | |||||
Sales and Disclosure Practices | Subsequent Event | ||||||
Loss Contingencies [Line Items] | ||||||
Civil monetary penalty | $ 50,000,000 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - Funding Agreements (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | $ 6,643 | |
Issued During the Period | 28,128 | |
Repaid During the Period | 27,488 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 7,283 | |
Difference related to remaining amortization | 4 | $ 4 |
Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 6,719 | |
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 | (45) | |
Outstanding Balance, period end | 6,674 | |
Difference related to remaining amortization | 3 | $ 70 |
Due in one year or less | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 5,353 | |
Issued During the Period | 27,407 | |
Repaid During the Period | 27,488 | |
Long-term Agreements Maturing Within One Year | 153 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 5,425 | |
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 | 1,000 | |
Foreign Currency Transaction Adjustment | 0 | |
Outstanding Balance, period end | 1,000 | |
Due in years two through five | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,290 | |
Issued During the Period | 309 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (153) | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 1,446 | |
Due in years two through five | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 4,600 | |
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 | (1,000) | |
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 | 0 | |
Issued During the Period | 412 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 412 | |
Due in more than five years | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 2,119 | |
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 | (45) | |
Outstanding Balance, period end | 2,074 | |
Total long-term funding agreements | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,290 | |
Issued During the Period | 721 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (153) | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 1,858 | |
Total long-term funding agreements | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 6,719 | |
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 | (1,000) | |
Foreign Currency Transaction Adjustment | (45) | |
Outstanding Balance, period end | $ 5,674 |
INSURANCE GROUP STATUTORY FIN_2
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION - Narrative (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 USD ($) prescribedAndPermittedPractice | Jun. 30, 2022 USD ($) prescribedAndPermittedPractice | Jun. 30, 2021 USD ($) | |
Related Party Transaction [Line Items] | |||
Number of prescribed and permitted practices | prescribedAndPermittedPractice | 3 | 3 | |
Statement of Statutory Accounting Principles 108 | |||
Related Party Transaction [Line Items] | |||
Statutory accounting practices, statutory surplus, increase | $ 461,000,000 | $ 461,000,000 | |
Statutory accounting practices, statutory net income, decrease | $ 527,000,000 | $ 900,000,000 | |
Statutory accounting practices, hedging losses amortization period | 5 years | ||
Statutory accounting practices, statutory unassigned surplus, balance | $ 0 | ||
Regulation Number 213 | |||
Related Party Transaction [Line Items] | |||
Statutory accounting practices, statutory surplus, increase (decrease) to new standard application | $ (3,100,000,000) | ||
Statutory accounting practices, reserves phased-in, percentage | 100% | 100% | |
Statutory accounting practices, statutory net income, increase (decrease) to new standard application | $ (1,200,000,000) | $ (1,800,000,000) | |
Regulation Number 213 | Equitable Financial | |||
Related Party Transaction [Line Items] | |||
Statutory accounting practices, reserves phased-in, percentage | 60% | 60% | |
Regulation Number 213 | Minimum | |||
Related Party Transaction [Line Items] | |||
Statutory accounting practices, total asset requirement | $ 500,000,000 | $ 500,000,000 | |
Regulation Number 213 | Maximum | |||
Related Party Transaction [Line Items] | |||
Statutory accounting practices, total asset requirement | 1,000,000,000 | 1,000,000,000 | |
Regulation Number 213 with Seperate Accounts | |||
Related Party Transaction [Line Items] | |||
Statutory accounting practices, statutory surplus, increase (decrease) to new standard application | 1,800,000,000 | 1,800,000,000 | |
Statutory accounting practices, statutory net income, increase (decrease) to new standard application | $ 1,000,000,000 | $ 2,000,000,000 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) segment | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting [Abstract] | ||||||
Number of reportable segments | segment | 4 | |||||
Operating earnings excluding SCS-related DAC amortization | $ | $ 50 | $ 10 | $ 70 | $ 14 | $ 16 | $ 34 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net income (loss) attributable to Holdings | $ 1,728 | $ 123 | $ 2,301 | $ (1,365) |
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 526 | 758 | 1,074 | 1,358 |
Legal expense | 107 | 0 | 166 | 180 |
Policyholders’ benefits | 914 | 828 | 1,974 | 1,767 |
Interest expense | 50 | 51 | 97 | 125 |
Adjustments | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) attributable to Holdings | 1,728 | 123 | ||
Adjustments related to: | ||||
Variable annuity product features | (1,924) | 1,193 | (2,525) | 3,460 |
Investment (gains) losses | 231 | (420) | 557 | (603) |
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 19 | 26 | 38 | 60 |
Other adjustments | 148 | 7 | 368 | 531 |
Income tax expense (benefit) related to above adjustments | 321 | (171) | 329 | (726) |
Non-recurring tax items | 3 | 0 | 6 | 1 |
Separation costs | 16 | 37 | ||
Policyholders’ benefits | 0 | 75 | ||
Adjustments | Non-GMxB related derivative | ||||
Adjustments related to: | ||||
Gain (loss) on fair value hedges recognized in earnings | (38) | (100) | (40) | 144 |
Operating Segments | Individual Retirement | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 274 | 414 | 567 | 777 |
Operating Segments | Group Retirement | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 131 | 171 | 281 | 322 |
Operating Segments | Investment Management and Research | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 101 | 126 | 237 | 247 |
Operating Segments | Protection Solutions | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 101 | 63 | 136 | 104 |
Corporate and Other | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | (81) | (16) | (147) | (92) |
Interest expense | $ 52 | $ 57 | $ 105 | $ 115 |
BUSINESS SEGMENT INFORMATION _3
BUSINESS SEGMENT INFORMATION - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 5,168 | $ 2,950 | $ 9,112 | $ 4,103 |
Operating Segments | Individual Retirement | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,022 | 979 | 2,044 | 1,959 |
Operating Segments | Group Retirement | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 301 | 346 | 635 | 675 |
Operating Segments | Investment Management and Research | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,003 | 1,072 | 2,138 | 2,076 |
Operating Segments | Protection Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 836 | 832 | 1,687 | 1,658 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 350 | 386 | 724 | 720 |
Adjustments | ||||
Adjustments related to: | ||||
Variable annuity product features | 1,944 | (1,212) | 2,575 | (3,494) |
Investment gains (losses), net | (231) | 420 | (557) | 603 |
Other adjustments to segment revenues | (57) | 127 | (134) | (94) |
Intersegment Eliminations | ||||
Adjustments related to: | ||||
Investment expenses | 23 | 20 | 44 | 39 |
Intersegment Eliminations | Investment management and other fees | ||||
Adjustments related to: | ||||
Revenues | $ 32 | $ 32 | $ 60 | $ 62 |
BUSINESS SEGMENT INFORMATION _4
BUSINESS SEGMENT INFORMATION - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 253,482 | $ 292,262 |
Operating Segments | Individual Retirement | ||
Segment Reporting Information [Line Items] | ||
Total assets | 126,393 | 143,663 |
Operating Segments | Group Retirement | ||
Segment Reporting Information [Line Items] | ||
Total assets | 40,356 | 55,368 |
Operating Segments | Investment Management and Research | ||
Segment Reporting Information [Line Items] | ||
Total assets | 11,974 | 11,602 |
Operating Segments | Protection Solutions | ||
Segment Reporting Information [Line Items] | ||
Total assets | 38,384 | 50,686 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 36,375 | $ 30,943 |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Weighted average number of shares outstanding - basic (in shares) | 378.9 | 424.2 | 383.7 | 429.2 |
Effect of dilutive securities common shares, employee stock awards (in shares) | 1.7 | 4.1 | 2.3 | 0 |
Diluted (in shares) | 380.6 | 428.3 | 386.1 | 429.2 |
Net income (loss) | $ 1,773 | $ 223 | $ 2,412 | $ (1,177) |
Less: Net income (loss) attributable to the noncontrolling interest | 45 | 100 | 111 | 188 |
Net income (loss) attributable to Holdings | 1,728 | 123 | 2,301 | (1,365) |
Less: Preferred stock dividends | 26 | 26 | 40 | 39 |
Net income (loss) available to Holdings’ common shareholders | 1,702 | 97 | 2,261 | (1,404) |
Net income (loss) available to Holdings’ common shareholders | $ 1,702 | $ 97 | $ 2,261 | $ (1,404) |
Net income (loss) attributable to Holdings per common share: | ||||
Basic (in dollars per share) | $ 4.49 | $ 0.23 | $ 5.89 | $ (3.27) |
Diluted (in dollars per share) | $ 4.47 | $ 0.23 | $ 5.86 | $ (3.27) |
Effect of dilutive securities (in shares) | 3.9 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities (in shares) | 3.3 | 3.2 | 4.5 | 8.6 |