Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2018shares | |
Document Information [Line Items] | |
Entity Registrant Name | Athene Holding Ltd |
Entity Central Index Key | 1,527,469 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Common Class A | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 164,734,282 |
Common Class B | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 25,483,107 |
Common Class M-1 | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 3,388,890 |
Common Class M-2 | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 851,103 |
Common Class M-3 | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,001,110 |
Common Class M-4 | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 4,354,425 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fixed maturity securities, at fair value | ||
Mortgage loans, net of allowances (portion at fair value: 2018 – $38 and 2017 – $41) | $ 7,609 | $ 6,233 |
Investment funds | 3,062 | 2,580 |
Restricted cash | 178 | 105 |
Deferred acquisition costs, deferred sales inducements and value of business acquired | 4,715 | 2,930 |
Total assets | 114,755 | 99,747 |
Liabilities | ||
Total liabilities | 106,250 | 90,539 |
Equity | ||
Additional paid-in capital | 3,492 | 3,472 |
Retained earnings | 4,887 | 4,321 |
Accumulated other comprehensive income (related party: 2018 – $(2) and 2017 – $48) | 126 | 1,415 |
Total equity | 8,505 | 9,208 |
Total liabilities and equity | 114,755 | 99,747 |
Related Party | ||
Equity | ||
Accumulated other comprehensive income (related party: 2018 – $(2) and 2017 – $48) | (2) | 48 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Fixed maturity securities, at fair value | ||
Available-for-sale securities | 59,762 | 61,012 |
Trading securities | 2,053 | 2,196 |
Equity securities | 216 | 790 |
Mortgage loans, net of allowances (portion at fair value: 2018 – $38 and 2017 – $41) | 7,609 | 6,233 |
Investment funds | 633 | 699 |
Policy loans | 504 | 530 |
Funds withheld at interest (portion at fair value: 2018 – $150 and 2017 – $312) | 7,700 | 7,085 |
Derivative assets | 1,929 | 2,551 |
Real estate (portion held for sale: 2017 – $32) | 0 | 624 |
Short-term investments, at fair value | 289 | 201 |
Other investments | 123 | 133 |
Total investments | 80,818 | 82,054 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fixed maturity securities, at fair value | ||
Available-for-sale securities | 60,718 | |
Cash and cash equivalents | 3,608 | 4,888 |
Restricted cash | 178 | |
Accrued investment income (related party: 2018 – $24 and 2017 – $10) | 662 | 652 |
Reinsurance recoverable (related party: 2018 – $4; portion at fair value: 2018 – $1,717 and 2017 – $1,824) | 4,847 | 4,972 |
Deferred acquisition costs, deferred sales inducements and value of business acquired | 4,715 | 2,930 |
Other assets | 1,265 | 969 |
Liabilities | ||
Interest sensitive contract liabilities (related party: 2018 – $17,742; portion at fair value: 2018 – $9,008 and 2017 – $8,929) | 87,052 | 67,708 |
Future policy benefits (related party: 2018 – $928; portion at fair value: 2018 – $2,249 and 2017 – $2,428) | 13,970 | 17,507 |
Other policy claims and benefits | 136 | 211 |
Dividends payable to policyholders | 118 | 1,025 |
Short-term debt | 183 | 0 |
Long-term debt | 991 | 0 |
Derivative liabilities | 137 | 134 |
Payables for collateral on derivatives | 1,746 | 2,323 |
Funds withheld liability (portion at fair value: 2018 – $4 and 2017 – $22) | 389 | 407 |
Other liabilities | 1,524 | 1,222 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Fixed maturity securities, at fair value | ||
Available-for-sale securities | 956 | 406 |
Trading securities | 278 | 307 |
Investment funds | 1,836 | 1,310 |
Funds withheld at interest (portion at fair value: 2018 – $150 and 2017 – $312) | 14,221 | 0 |
Short-term investments, at fair value | 172 | 52 |
Other investments | 388 | 238 |
Accrued investment income (related party: 2018 – $24 and 2017 – $10) | 24 | 10 |
Reinsurance recoverable (related party: 2018 – $4; portion at fair value: 2018 – $1,717 and 2017 – $1,824) | 4 | 0 |
Liabilities | ||
Interest sensitive contract liabilities (related party: 2018 – $17,742; portion at fair value: 2018 – $9,008 and 2017 – $8,929) | 17,742 | 0 |
Future policy benefits (related party: 2018 – $928; portion at fair value: 2018 – $2,249 and 2017 – $2,428) | 928 | 0 |
Other policy claims and benefits | 2 | 0 |
Other liabilities | 69 | 64 |
Variable Interest Entities | ||
Fixed maturity securities, at fair value | ||
Investment funds | 593 | 571 |
Cash and cash equivalents | 2 | 4 |
Other assets | 5 | 1 |
Liabilities | ||
Other liabilities | 4 | 2 |
Variable Interest Entities | Related Party | ||
Fixed maturity securities, at fair value | ||
Trading securities | 48 | 48 |
Equity securities | 163 | 240 |
Investment funds | 542 | 571 |
Common Class A | ||
Equity | ||
Common stock | 0 | 0 |
Common Class B | ||
Equity | ||
Common stock | 0 | 0 |
Common Class M-1 | ||
Equity | ||
Common stock | 0 | 0 |
Common Class M-2 | ||
Equity | ||
Common stock | 0 | 0 |
Common Class M-3 | ||
Equity | ||
Common stock | 0 | 0 |
Common Class M-4 | ||
Equity | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Available-for-sale securities | ||
Mortgage loans | $ 7,609 | $ 6,233 |
Investment funds | 3,062 | 2,580 |
Deferred acquisition costs, deferred sales inducements and value of business acquired | 4,715 | 2,930 |
Accumulated other comprehensive income | 126 | 1,415 |
Related Party | ||
Available-for-sale securities | ||
Accumulated other comprehensive income | (2) | 48 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Available-for-sale securities | ||
Available-for-sale securities | 59,445 | 58,506 |
Mortgage loans | 7,609 | 6,233 |
Investment funds | 633 | 699 |
Funds withheld at interest | 7,700 | 7,085 |
Real estate held for sale | 0 | 32 |
Short-term investments | 289 | 201 |
Other investments | 123 | 133 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Available-for-sale securities | ||
Available-for-sale securities | 60,403 | |
Accrued investment income | 662 | 652 |
Reinsurance recoverable | 4,847 | 4,972 |
Deferred acquisition costs, deferred sales inducements and value of business acquired | 4,715 | 2,930 |
Interest sensitive contract liabilities | 87,052 | 67,708 |
Future policy benefits | 13,970 | 17,507 |
Other policy claims and benefits | 136 | 211 |
Funds withheld liability | 389 | 407 |
Other liabilities | 1,524 | 1,222 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Available-for-sale securities | ||
Available-for-sale securities | 958 | 399 |
Investment funds | 1,836 | 1,310 |
Funds withheld at interest | 14,221 | 0 |
Short-term investments | 172 | 52 |
Other investments | 388 | 238 |
Accrued investment income | 24 | 10 |
Reinsurance recoverable | 4 | 0 |
Interest sensitive contract liabilities | 17,742 | 0 |
Future policy benefits | 928 | 0 |
Other policy claims and benefits | 2 | 0 |
Other liabilities | 69 | 64 |
Variable Interest Entities | ||
Available-for-sale securities | ||
Investment funds | 593 | 571 |
Other liabilities | 4 | 2 |
Variable Interest Entities | Related Party | ||
Available-for-sale securities | ||
Investment funds | 542 | 571 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Available-for-sale securities | ||
Mortgage loans | 7,713 | 6,342 |
Funds withheld at interest | 7,550 | 6,773 |
Other investments | 73 | 133 |
Interest sensitive contract liabilities | 43,972 | 31,656 |
Funds withheld liability | 385 | 385 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Available-for-sale securities | ||
Funds withheld at interest | 14,059 | |
Other investments | $ 371 | $ 259 |
Common Class A | Parent Company [Member] | ||
Available-for-sale securities | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 425,000,000 | 425,000,000 |
Common stock issued (in shares) | 164,734,282 | 142,386,704 |
Common stock outstanding (in shares) | 164,734,282 | 142,386,704 |
Common Class B | Parent Company [Member] | ||
Available-for-sale securities | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 325,000,000 | 325,000,000 |
Common stock issued (in shares) | 25,483,107 | 47,422,399 |
Common stock outstanding (in shares) | 25,483,107 | 47,422,399 |
Common Class M-1 | Parent Company [Member] | ||
Available-for-sale securities | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 7,109,560 | 7,109,560 |
Common stock issued (in shares) | 3,388,890 | 3,388,890 |
Common stock outstanding (in shares) | 3,388,890 | 3,388,890 |
Common Class M-2 | Parent Company [Member] | ||
Available-for-sale securities | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock issued (in shares) | 851,103 | 851,103 |
Common stock outstanding (in shares) | 851,103 | 851,103 |
Common Class M-3 | Parent Company [Member] | ||
Available-for-sale securities | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 7,500,000 | 7,500,000 |
Common stock issued (in shares) | 1,001,110 | 1,092,000 |
Common stock outstanding (in shares) | 1,001,110 | 1,092,000 |
Common Class M-4 | Parent Company [Member] | ||
Available-for-sale securities | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 7,500,000 | 7,500,000 |
Common stock issued (in shares) | 4,354,425 | 4,711,743 |
Common stock outstanding (in shares) | 4,354,425 | 4,711,743 |
Recurring | Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Available-for-sale securities | ||
Mortgage loans | $ 38 | $ 41 |
Investment funds | 126 | 145 |
Funds withheld at interest | 150 | 312 |
Other investments | 50 | 0 |
Recurring | Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Available-for-sale securities | ||
Mortgage loans | 38 | 41 |
Short-term investments | 289 | 201 |
Other investments | 50 | |
Reinsurance recoverable | 1,717 | 1,824 |
Interest sensitive contract liabilities | 9,008 | 8,929 |
Future policy benefits | 2,249 | 2,428 |
Funds withheld liability | 4 | 22 |
Recurring | Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Available-for-sale securities | ||
Investment funds | 198 | 30 |
Funds withheld at interest | 162 | 0 |
Short-term investments | 172 | 52 |
Recurring | Fair Value | Variable Interest Entities | ||
Available-for-sale securities | ||
Investment funds | $ 542 | $ 549 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other-than-temporary impairment investment losses | ||||
Other-than-temporary impairment losses recognized in other comprehensive income | $ 0 | $ 1 | $ 0 | $ 0 |
Total revenues | 1,797 | 1,763 | 2,808 | 3,382 |
Benefits and Expenses | ||||
Amortization of deferred sales inducements | 43 | 29 | ||
Total benefits and expenses | 1,467 | 1,426 | 2,151 | 2,639 |
Income before income taxes | 330 | 337 | 657 | 743 |
Income tax expense (benefit) | 66 | 11 | 125 | 33 |
Net income | 264 | 326 | 532 | 710 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||
Revenues | ||||
Premiums | 726 | 379 | 1,004 | 431 |
Product charges | 106 | 85 | 202 | 166 |
Net investment income | 958 | 821 | 1,813 | 1,607 |
Investment related gains (losses) | (2) | 460 | (238) | 1,142 |
Other-than-temporary impairment investment losses | ||||
Other-than-temporary impairment losses | 0 | (12) | (3) | (12) |
Other-than-temporary impairment losses recognized in other comprehensive income | 0 | 1 | 0 | 0 |
Net other-than-temporary impairment losses | 0 | (11) | (3) | (12) |
Other revenues | 6 | 8 | 12 | 16 |
Benefits and Expenses | ||||
Interest sensitive contract benefits | 332 | 553 | 351 | 1,245 |
Amortization of deferred sales inducements | 23 | 11 | 43 | 29 |
Future policy and other policy benefits | 857 | 578 | 1,258 | 792 |
Amortization of deferred acquisition costs and value of business acquired | 92 | 67 | 181 | 171 |
Dividends to policyholders | 9 | 49 | 22 | 81 |
Policy and other operating expenses (related party of $3 and $2 for the three months ended and $5 and $6 for the six months ended June 30, 2018 and 2017, respectively) | 153 | 168 | 295 | 321 |
Variable Interest Entities | ||||
Revenues | ||||
Net investment income | 14 | 10 | 24 | 20 |
Investment related gains (losses) | $ (11) | $ 11 | (6) | 12 |
Benefits and Expenses | ||||
Operating Expenses | $ 1 | $ 0 | ||
Common Class A | ||||
Earnings per share | ||||
Basic (in USD per share) | $ 1.34 | $ 1.66 | $ 2.70 | $ 3.66 |
Diluted (in USD per share) | 1.33 | 1.65 | 2.69 | 3.59 |
Common Class B | ||||
Earnings per share | ||||
Basic (in USD per share) | 1.34 | 1.66 | 2.70 | 3.66 |
Diluted (in USD per share) | 1.34 | 1.66 | 2.70 | 3.66 |
Common Class M-1 | ||||
Earnings per share | ||||
Basic (in USD per share) | 1.34 | 1.66 | 2.70 | 3.66 |
Diluted (in USD per share) | 1.34 | 1.66 | 2.70 | 3.66 |
Common Class M-2 | ||||
Earnings per share | ||||
Basic (in USD per share) | 1.34 | 1.66 | 2.70 | 3.66 |
Diluted (in USD per share) | 1.33 | 1.64 | 2.67 | 1.80 |
Common Class M-3 | ||||
Earnings per share | ||||
Basic (in USD per share) | 1.34 | 1.66 | 2.70 | 3.66 |
Diluted (in USD per share) | 1.34 | 1 | 2.67 | 1.08 |
Common Class M-4 | ||||
Earnings per share | ||||
Basic (in USD per share) | 1.34 | 1.66 | 2.70 | 3.66 |
Diluted (in USD per share) | $ 1.04 | $ 0.76 | $ 1.98 | $ 0.98 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||
Premiums | $ 726 | $ 379 | $ 1,004 | $ 431 |
Product charges | 106 | 85 | 202 | 166 |
Investment income | 1,046 | 900 | 1,985 | 1,766 |
Investment expense | 88 | 79 | 172 | 159 |
Investment related gains (losses) | (2) | 460 | (238) | 1,142 |
Interest sensitive contract benefits | 332 | 553 | 351 | 1,245 |
Future policy and other policy benefits | 857 | 578 | 1,258 | 792 |
Amortization of deferred acquisition costs and value of business acquired | 92 | 67 | 181 | 171 |
Net investment income | 958 | 821 | 1,813 | 1,607 |
Policy and other operating expenses | 153 | 168 | 295 | 321 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||||
Premiums | 582 | 0 | 582 | 0 |
Product charges | 5 | 0 | 5 | 0 |
Investment income | 67 | 73 | 129 | |
Investment expense | 86 | 76 | 154 | |
Investment related gains (losses) | 2 | 3 | (8) | |
Interest sensitive contract benefits | 20 | 0 | 20 | 0 |
Future policy and other policy benefits | 580 | 0 | 580 | 0 |
Policy and other operating expenses | 3 | 2 | 6 | |
Variable Interest Entities | ||||
Investment related gains (losses) | (11) | 11 | (6) | 12 |
Net investment income | 14 | 10 | 24 | 20 |
Variable Interest Entities | Related Party | ||||
Investment related gains (losses) | (11) | 11 | $ (6) | 12 |
Net investment income | $ 14 | $ 10 | $ 20 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 264 | $ 326 | $ 532 | $ 710 |
Other comprehensive income (loss), before tax | ||||
Unrealized investment gains (losses) on available-for-sale securities | (667) | 582 | (1,577) | 1,001 |
Noncredit component of other-than-temporary impairment losses on available-for-sale securities | 0 | (1) | 0 | 0 |
Unrealized gains (losses) on hedging instruments | 101 | (33) | 45 | (38) |
Pension adjustments | 0 | (1) | 3 | (1) |
Foreign currency translation adjustments | (2) | 8 | (10) | 10 |
Other comprehensive income (loss), before tax | (568) | 555 | (1,539) | 972 |
Income tax expense (benefit) related to other comprehensive income | (109) | 168 | (292) | 279 |
Other comprehensive income (loss) | (459) | 387 | (1,247) | 693 |
Comprehensive income (loss) | $ (195) | $ 713 | $ (715) | $ 1,403 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Total Athene Holding Ltd. shareholders' equity | Noncontrolling interest |
Beginning Balance at Dec. 31, 2016 | $ 6,859 | $ 0 | $ 3,421 | $ 3,070 | $ 367 | $ 6,858 | $ 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 710 | 710 | 710 | 0 | |||
Other comprehensive income | 693 | 693 | 693 | ||||
Stock-based compensation | 31 | 31 | 31 | ||||
Retirement or repurchase of shares | (8) | 0 | (8) | (8) | |||
Other changes in equity of noncontrolling interests | (1) | (1) | |||||
Ending Balance at Jun. 30, 2017 | 8,284 | 0 | 3,452 | 3,772 | 1,060 | 8,284 | 0 |
Beginning Balance at Dec. 31, 2017 | 9,208 | 0 | 3,472 | 4,321 | 1,415 | 9,208 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 532 | 532 | 532 | 0 | |||
Other comprehensive income | (1,247) | (1,247) | (1,247) | ||||
Issuance of shares, net of expenses | 1 | 1 | 1 | ||||
Stock-based compensation | 19 | 19 | 19 | ||||
Retirement or repurchase of shares | (5) | 0 | (5) | (5) | |||
Ending Balance at Jun. 30, 2018 | $ 8,505 | $ 0 | $ 3,492 | $ 4,887 | $ 126 | $ 8,505 | $ 0 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Cash flows from operating activities | |||
Net income | $ 532 | $ 710 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of deferred sales inducements | 43 | 29 | |
Policy acquisition costs deferred | (1,607) | (248) | |
Changes in operating assets and liabilities: | |||
Net cash provided by operating activities | 519 | 1,073 | |
Purchases of: | |||
Cash Divested from Deconsolidation | (296) | 0 | |
Net cash used in investing activities | (3,904) | (2,592) | |
Cash flows from financing activities | |||
Proceeds from long-term debt | 998 | 0 | |
Net cash provided by financing activities | 2,176 | 2,569 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 19 | |
Net increase (decrease) in cash and cash equivalents | (1,209) | 1,069 | |
Cash and cash equivalents at beginning of year | [1] | 4,997 | 2,516 |
Cash and cash equivalents at end of period | [1] | 3,788 | 3,585 |
Non-cash transactions | |||
Deposits on investment-type policies and contracts through reinsurance agreements | 18,247 | 385 | |
Withdrawals on investment-type policies and contracts through reinsurance agreements | 341 | 285 | |
Proceeds from Short-term Debt | 183 | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of deferred acquisition costs and value of business acquired | 181 | 171 | |
Amortization of deferred sales inducements | 43 | 29 | |
Accretion of net investment premiums, discounts, and other | (99) | (101) | |
Coinsurance Agreement Payments | 394 | 0 | |
Stock-based compensation | 13 | 29 | |
Net investment income (related party: 2018 – $(50) and 2017 – $(43)) | (32) | (43) | |
Gain (Loss) on Investments and Derivatives | (161) | 882 | |
Policy acquisition costs deferred | (311) | (248) | |
Changes in operating assets and liabilities: | |||
Accrued investment income | (47) | (9) | |
Interest sensitive contract liabilities | 7 | 1,140 | |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 352 | 387 | |
Funds withheld assets and liabilities | (32) | (222) | |
Other assets and liabilities | 139 | 124 | |
Sales, maturities and repayments of: | |||
Available-for-sale securities (related party: 2018 – $97 and 2017 – $73) | 6,309 | 5,987 | |
Trading securities (related party: 2018 – $22 and 2017 – $26) | 288 | 83 | |
Mortgage loans | 686 | 632 | |
Investment funds (related party: 2018 – $143 and 2017 – $172) | 252 | 221 | |
Derivative instruments and other invested assets | 1,062 | 713 | |
Short-term investments | 220 | 226 | |
Purchases of: | |||
Fixed maturity securities (related party: 2017 – $(186) and 2016 – $0) | (8,953) | (9,111) | |
Trading securities (related party: 2017 – $0 and 2016 – $(33)) | (81) | (66) | |
Mortgage loans | (1,924) | (1,184) | |
Investment funds (related party: 2017 – $(244) and 2016 – $(258)) | (654) | (227) | |
Derivative instruments and other invested assets | (659) | (376) | |
Real estate | 0 | (13) | |
Short-term investments (related party: 2017 – $(37) and 2016 – $0) | (429) | (177) | |
Cash settlement of derivatives | (2) | 4 | |
Other investing activities, net | 286 | 748 | |
Cash flows from financing activities | |||
Capital contributions | 1 | 0 | |
Deposits on investment-type policies and contracts | 4,375 | 4,727 | |
Withdrawals on investment-type policies and contracts | (2,839) | (2,607) | |
Payments for coinsurance agreements on investment-type contracts, net | (12) | (15) | |
Net change in cash collateral posted for derivative transactions | (577) | 477 | |
Repurchase of common stock | (5) | (8) | |
Other financing activities, net | 52 | (5) | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity securities | |||
Sales, maturities and repayments of: | |||
Proceeds from Sale and Maturity of Marketable Securities | 2 | 455 | |
Purchases of: | |||
Equity securities | 62 | 492 | |
Variable Interest Entities | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain (Loss) on Investments and Derivatives | (5) | 12 | |
Changes in operating assets and liabilities: | |||
Other operating activities, net | 1 | 0 | |
Purchases of: | |||
Sales, maturities and repayments of investments (related party: 2018 – $103 and 2017 – $7) | 103 | 7 | |
Purchases of investments (related party: 2018 – $0 and 2017 – $(22)) | (52) | (22) | |
Exchange of Stock for Stock [Member] | Equity securities | |||
Sales, maturities and repayments of: | |||
Proceeds from Sale and Maturity of Marketable Securities | 0 | ||
Reinsurance Settlements [Member] | |||
Non-cash transactions | |||
Transfer to Investments | 8 | $ 36 | |
Investment funds | Exchange of Stock for Stock [Member] | |||
Purchases of: | |||
Investment funds (related party: 2017 – $(244) and 2016 – $(258)) | $ (108) | ||
[1] | Includes cash and cash equivalents, restricted cash, and cash and cash equivalents of consolidated variable interest entities. |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Policy acquisition costs deferred | $ (1,607) | $ (248) |
Purchases of: | ||
Deposits on investment-type policies and contracts through reinsurance agreements | 18,247 | 385 |
Withdrawals on investment-type policies and contracts through reinsurance agreements | 341 | 285 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Reinsurance Agreement Payments | (394) | 0 |
Amortization of deferred acquisition costs and value of business acquired | 181 | 171 |
Net investments (income) loss | (32) | (43) |
Net recognized (gains) losses on investments and derivatives (related party: 2018 – $0 and 2017 – $10) | 161 | (882) |
Accrued investment income | (47) | (9) |
Policy acquisition costs deferred | (311) | (248) |
Interest sensitive contract liabilities | 7 | 1,140 |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 352 | 387 |
Funds withheld assets and liabilities | (32) | (222) |
Sales, maturities and repayments of: | ||
Available-for-sale securities (related party: 2018 – $97 and 2017 – $73) | 6,309 | 5,987 |
Trading securities | 288 | 83 |
Investment funds | 252 | 221 |
Derivative instruments and other invested assets | 1,062 | 713 |
Short-term investments | 220 | 226 |
Purchases of: | ||
Fixed maturity securities (related party: 2017 – $(186) and 2016 – $0) | (8,953) | (9,111) |
Trading securities | (81) | (66) |
Investment funds | (654) | (227) |
Derivative instruments and other invested assets | (659) | (376) |
Short-term investments | (429) | (177) |
Deposits on investment-type policies and contracts | 4,375 | 4,727 |
Repayments of Annuities and Investment Certificates | (2,839) | (2,607) |
Payments for coinsurance agreements on investment-type contracts, net | (12) | (15) |
Variable Interest Entities | ||
Net recognized (gains) losses on investments and derivatives (related party: 2018 – $0 and 2017 – $10) | 5 | (12) |
Purchases of: | ||
Sales, maturities, and repayments of investments | 103 | 7 |
Purchases of investments | (52) | (22) |
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Reinsurance Agreement Payments | (407) | 0 |
Net investments (income) loss | (50) | (43) |
Net recognized (gains) losses on investments and derivatives (related party: 2018 – $0 and 2017 – $10) | (18) | 3 |
Accrued investment income | (14) | 0 |
Interest sensitive contract liabilities | 15 | 0 |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 15 | 0 |
Funds withheld assets and liabilities | 23 | 0 |
Sales, maturities and repayments of: | ||
Available-for-sale securities (related party: 2018 – $97 and 2017 – $73) | 97 | 73 |
Trading securities | 22 | 26 |
Investment funds | 143 | 172 |
Purchases of: | ||
Fixed maturity securities (related party: 2017 – $(186) and 2016 – $0) | (211) | (64) |
Investment funds | (556) | (179) |
Derivative instruments and other invested assets | (150) | 0 |
Short-term investments | (121) | (28) |
Deposits on investment-type policies and contracts | 128 | 0 |
Repayments of Annuities and Investment Certificates | (37) | 0 |
Deposits on investment-type policies and contracts through reinsurance agreements | 17,525 | 0 |
Withdrawals on investment-type policies and contracts through reinsurance agreements | 155 | 0 |
Related Party | Variable Interest Entities | ||
Net recognized (gains) losses on investments and derivatives (related party: 2018 – $0 and 2017 – $10) | 5 | (12) |
Purchases of: | ||
Sales, maturities, and repayments of investments | 103 | 7 |
Purchases of investments | 0 | (22) |
Equity securities | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Sales, maturities and repayments of: | ||
Proceeds from Sale and Maturity of Marketable Securities | 2 | 455 |
Purchases of: | ||
Equity securities | 62 | 492 |
Equity securities | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Sales, maturities and repayments of: | ||
Proceeds from Sale and Maturity of Marketable Securities | 0 | 22 |
Exchange of Stock for Stock [Member] | Equity securities | ||
Sales, maturities and repayments of: | ||
Proceeds from Sale and Maturity of Marketable Securities | 0 | |
Reinsurance Settlements [Member] | ||
Purchases of: | ||
Transfer from Investments | 8 | 36 |
Transfer to Investments | $ 8 | $ 36 |
Business, Basis of Presentation
Business, Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Business, Basis of Presentation, and Significant Accounting Policies | 1. Business, Basis of Presentation and Significant Accounting Policies Athene Holding Ltd. (AHL), a Bermuda exempted company, together with its subsidiaries (collectively, Athene, we, our, us, or the Company), is a leading retirement services company that issues, reinsures and acquires retirement savings products in all U.S. states and the District of Columbia. We conduct business primarily through the following consolidated subsidiaries: • Our non-U.S. reinsurance subsidiaries, to which AHL’s other insurance subsidiaries and third party ceding companies directly and indirectly reinsure a portion of their liabilities, including Athene Life Re Ltd. (ALRe), a Bermuda exempted company; and • Athene USA Corporation, an Iowa corporation and its subsidiaries (Athene USA). In addition, we consolidate certain variable interest entities (VIEs), for which we determined we are the primary beneficiary, as discussed in Note 4 – Variable Interest Entities . Basis of Presentation —We have prepared the accompanying condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the United States Securities and Exchange Commission’s rules and regulations for Form 10-Q and Article 10 of Regulation S-X. The accompanying condensed consolidated financial statements are unaudited and reflect all adjustments, consisting only of normal recurring items, considered necessary for fair statement of the periods presented. All significant intercompany accounts and transactions have been eliminated. Interim operating results are not necessarily indicative of the results expected for the entire year. The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited financial statements, but does not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017. The preparation of financial statements requires the use of management estimates. Actual results may differ from estimates used in preparing the condensed consolidated financial statements. Deconsolidation – AGER Bermuda Holding Ltd. and its subsidiaries, now known as Athora Holding Ltd. (Athora), was our consolidated subsidiary for the year ended December 31, 2017. In April 2017, in connection with a private offering, Athora entered into subscription agreements with AHL, certain affiliates of Apollo Global Management, LLC (AGM and, together with its subsidiaries, Apollo) and a number of other third-party investors pursuant to which Athora secured commitments from such parties to purchase new common shares in Athora (Athora Offering). In November 2017, the Athora board of directors approved resolutions authorizing the closing of the Athora Offering (Closing) to occur on January 1, 2018 and approving a capital call from all of the Athora investors, excluding us. In connection with the Closing and the issuance of shares in respect of the capital call, each of which occurred on January 1, 2018, our equity interest in Athora was exchanged for common shares of Athora. As a result, on January 1, 2018, we held 10% of the aggregate voting power of and less than 50% of the economic interest in Athora and, as such, it is thereafter held as a related party investment rather than a consolidated subsidiary. We did not recognize a material amount in the condensed consolidated statements of income upon deconsolidation in 2018. Adopted Accounting Pronouncements Revenue Recognition (ASU 2017-13, ASU 2016-20, ASU 2016-12, ASU 2016-11, ASU 2016-10, ASU 2016-08, ASU 2015-14 and ASU 2014-09) These updates are based on the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. These updates replace all general and most industry-specific revenue recognition guidance, excluding insurance contracts, leases, financial instruments and guarantees, which have been scoped out of these updates. Since the guidance does not apply to revenue on contracts accounted for under the financial instruments or insurance contracts standards, only a portion of our revenues are impacted by this guidance. We adopted these updates on a modified retrospective basis effective January 1, 2018. The adoptions did not have a material effect on our consolidated financial statements. Derivatives and Hedging – Targeted Improvements (ASU 2017-12) The amendments in this update contain improvements to the financial reporting of hedging relationships that more closely reflect the economic results of an entity’s risk management activities in its financial statements. Additionally, the amendments in this update make certain targeted improvements to simplify the application of hedge accounting. We early adopted this update effective January 1, 2018, and the adoption did not have a material effect on our consolidated financial statements. Gains and Losses from the Derecognition of Nonfinancial Assets (ASU 2017-05) The amendments in this update clarify the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets. We adopted this update on a modified retrospective basis effective January 1, 2018. The adoption did not have a material effect on our consolidated financial statements. Statement of Cash Flows – Restricted Cash (ASU 2016-18) This update requires amounts generally described as restricted cash or restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the consolidated statements of cash flows. We adopted this update effective January 1, 2018, and have changed the presentation on the consolidated statements of cash flows as required by this update. Income Taxes – Intra-Entity Transfers (ASU 2016-16) This update requires the immediate recognition of current and deferred income tax effects of intra-entity transfers of assets, other than inventory. Prior to adoption, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. We adopted this update effective January 1, 2018. Upon adoption, we recognized a cumulative-effect decrease to beginning retained earnings of $3 million . Statement of Cash Flows (ASU 2016-15) This update provides specific guidance to clarify how entities should classify certain cash receipts and cash payments on the statement of cash flows. The update also clarifies the application of the predominance principle when cash receipts and cash payments have aspects of more than one class of cash flows. We adopted this update effective January 1, 2018, and the adoption did not have a material effect on our consolidated financial statements. Financial Instruments – Recognition and Measurement (ASU 2016-01) This update changes the accounting for certain equity investments, the presentation of changes in the fair value of liabilities measured under the fair value option due to instrument-specific credit risk, and certain disclosures. For liabilities measured under the fair value option, changes in fair value attributable to instrument-specific credit risk will no longer affect net income, but will be recognized separately in other comprehensive income (OCI). Additionally, this update requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. Prior to the effective date of this update, changes in fair value related to available-for-sale (AFS) equity securities were recognized in OCI. We adopted this update effective January 1, 2018. Upon adoption, we recognized a cumulative-effect increase to beginning retained earnings of $42 million and a corresponding decrease to accumulated other comprehensive income (AOCI). Additionally, we combined the presentation of AFS and trading equity securities on the consolidated balance sheets for all periods presented. Recently Issued Accounting Pronouncements Stock Compensation – Nonemployee Share-Based Payments (ASU 2018-07) The amendments in this update simplify the accounting for share-based payments to nonemployees by aligning with the accounting for share-based payments to employees, with certain exceptions. We will be required to adopt this update on a modified retrospective basis effective January 1, 2019. Early adoption is permitted. We do not expect the adoption of this update will have a material effect on our consolidated financial statements. Leases (ASU 2018-11, ASU 2018-10, ASU 2018-01, ASU 2017-13 and ASU 2016-02) These updates are intended to increase transparency and comparability for lease transactions. ASU 2016-02, among other things, requires a lessee to recognize an asset and a liability for all lease arrangements longer than 12 months. Lessor accounting is largely unchanged. ASU 2016-02 required the adoption of this standard on a modified retrospective basis. However, with the issuance of ASU 2018-11, we are allowed the option to recognize the cumulative effect of applying the new standard as an adjustment to the opening balance of retained earnings in the year of adoption, while continuing to present all prior periods under the previous lease guidance. The standard is effective January 1, 2019 and early adoption is permitted. We have reviewed our existing lease contracts and our implementation efforts are primarily focused on assessing the financial impact of these updates on our consolidated financial statements. Intangibles – Simplifying the Test for Goodwill Impairment (ASU 2017-04) The amendments in this update simplify the subsequent measurement of goodwill by eliminating the comparison of the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill to determine the goodwill impairment loss. With the adoption of this guidance, a goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of the goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. We will be required to adopt this update prospectively effective January 1, 2020. Early adoption is permitted. We do not expect the adoption of this update will have a material effect on our consolidated financial statements. Financial Instruments – Credit Losses (ASU 2016-13) This update is designed to reduce complexity by limiting the number of credit impairment models used for different assets. The model will result in accelerated credit loss recognition on assets held at amortized cost, which includes our commercial and residential mortgage investments. The identification of credit-deteriorated securities will include all assets that have experienced a more-than-insignificant deterioration in credit since origination. Additionally, any changes in the expected cash flows of credit-deteriorated securities will be recognized immediately in the income statement. AFS fixed maturity securities are not in scope of the new credit loss model, but will undergo targeted improvements to the current reporting model including the establishment of a valuation allowance for credit losses versus the current direct write down approach. We will be required to adopt this update effective January 1, 2020. Early adoption is permitted effective January 1, 2019. We are currently evaluating the impact of this guidance on our consolidated financial statements. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments Schedule [Abstract] | |
Investments | 2. Investments Available-for-sale Securities — The following table represents the amortized cost, gross unrealized gains and losses, fair value and other-than-temporary impairments (OTTI) in AOCI of our AFS investments by asset type. Our AFS investment portfolio includes direct investments in affiliates of Apollo Global Management, LLC (AGM and, together with its subsidiaries, Apollo) where Apollo can exercise significant influence over the affiliates. These investments are presented as investments in related parties on the condensed consolidated balance sheets, and are separately disclosed below. June 30, 2018 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI Available-for-sale securities U.S. government and agencies $ 143 $ — $ (1 ) $ 142 $ — U.S. state, municipal and political subdivisions 1,152 124 (5 ) 1,271 — Foreign governments 203 1 (5 ) 199 — Corporate 37,258 481 (885 ) 36,854 1 CLO 5,355 21 (24 ) 5,352 — ABS 4,727 32 (43 ) 4,716 1 CMBS 2,343 28 (47 ) 2,324 1 RMBS 8,264 648 (8 ) 8,904 10 Total AFS securities 59,445 1,335 (1,018 ) 59,762 13 Available-for-sale securities – related party CLO 473 2 (3 ) 472 — ABS 485 2 (3 ) 484 — Total AFS securities – related party 958 4 (6 ) 956 — Total AFS securities, including related party $ 60,403 $ 1,339 $ (1,024 ) $ 60,718 $ 13 December 31, 2017 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI Fixed maturity securities U.S. government and agencies $ 63 $ 1 $ (2 ) $ 62 $ — U.S. state, municipal and political subdivisions 996 171 (2 ) 1,165 — Foreign governments 2,575 116 (8 ) 2,683 — Corporate 35,173 1,658 (171 ) 36,660 — CLO 5,039 53 (8 ) 5,084 — ABS 3,945 53 (27 ) 3,971 1 CMBS 1,994 48 (21 ) 2,021 1 RMBS 8,721 652 (7 ) 9,366 11 Total fixed maturity securities 58,506 2,752 (246 ) 61,012 13 Equity securities 1 271 7 (1 ) 277 — Total AFS securities 58,777 2,759 (247 ) 61,289 13 Available-for-sale securities – related party CLO 353 7 — 360 — ABS 46 — — 46 — Total AFS securities – related party 399 7 — 406 — Total AFS securities, including related party $ 59,176 $ 2,766 $ (247 ) $ 61,695 $ 13 1 Included in equity securities on the condensed consolidated balance sheets. The amortized cost and fair value of fixed maturity AFS securities, including related party, are shown by contractual maturity below: June 30, 2018 (In millions) Amortized Cost Fair Value Due in one year or less $ 1,146 $ 1,145 Due after one year through five years 8,521 8,517 Due after five years through ten years 11,461 11,261 Due after ten years 17,628 17,543 CLO, ABS, CMBS and RMBS 20,689 21,296 Total AFS fixed maturity securities 59,445 59,762 Fixed maturity securities – related party, CLO and ABS 958 956 Total AFS fixed maturity securities, including related party $ 60,403 $ 60,718 Actual maturities can differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Unrealized Losses on AFS Securities — The following summarizes the fair value and gross unrealized losses for AFS securities, including related party, aggregated by class of security and length of time the fair value has remained below amortized cost: June 30, 2018 Less than 12 months 12 months or more Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Fair Value Gross Available-for-sale securities U.S. government and agencies $ 139 $ (1 ) $ 1 $ — $ 140 $ (1 ) U.S. state, municipal and political subdivisions 125 (1 ) 77 (4 ) 202 (5 ) Foreign governments 103 (2 ) 45 (3 ) 148 (5 ) Corporate 17,178 (526 ) 5,105 (359 ) 22,283 (885 ) CLO 2,270 (21 ) 267 (3 ) 2,537 (24 ) ABS 1,689 (22 ) 678 (21 ) 2,367 (43 ) CMBS 880 (20 ) 382 (27 ) 1,262 (47 ) RMBS 380 (4 ) 248 (4 ) 628 (8 ) Total AFS securities 22,764 (597 ) 6,803 (421 ) 29,567 (1,018 ) Available-for-sale securities – related party CLO 214 (3 ) — — 214 (3 ) ABS 127 — 86 (3 ) 213 (3 ) Total AFS securities – related party 341 (3 ) 86 (3 ) 427 (6 ) Total AFS securities, including related party $ 23,105 $ (600 ) $ 6,889 $ (424 ) $ 29,994 $ (1,024 ) December 31, 2017 Less than 12 months 12 months or more Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturity securities U.S. government and agencies $ 34 $ (1 ) $ 9 $ (1 ) $ 43 $ (2 ) U.S. state, municipal and political subdivisions 50 (1 ) 39 (1 ) 89 (2 ) Foreign governments 435 (6 ) 76 (2 ) 511 (8 ) Corporate 3,992 (49 ) 2,457 (122 ) 6,449 (171 ) CLO 414 (2 ) 340 (6 ) 754 (8 ) ABS 515 (5 ) 549 (22 ) 1,064 (27 ) CMBS 460 (8 ) 179 (13 ) 639 (21 ) RMBS 506 (3 ) 210 (4 ) 716 (7 ) Total fixed maturity securities 6,406 (75 ) 3,859 (171 ) 10,265 (246 ) Equity securities 1 134 (1 ) — — 134 (1 ) Total AFS securities 6,540 (76 ) 3,859 (171 ) 10,399 (247 ) Available-for-sale securities – related party CLO 29 — — — 29 — ABS 42 — — — 42 — Total AFS securities – related party 71 — — — 71 — Total AFS securities, including related party $ 6,611 $ (76 ) $ 3,859 $ (171 ) $ 10,470 $ (247 ) 1 Included in equity securities on the condensed consolidated balance sheets. As of June 30, 2018 , we held 3,517 AFS securities that were in an unrealized loss position. Of this total, 808 were in an unrealized loss position 12 months or more. As of June 30, 2018 , we held 17 related party AFS securities that were in an unrealized loss position. Of this total, four were in an unrealized loss position 12 months or more. The unrealized losses on AFS securities can primarily be attributed to changes in market interest rates since acquisition. We did not recognize the unrealized losses in income as we intend to hold these securities and it is not more likely than not we will be required to sell a security before the recovery of its amortized cost. Other-Than-Temporary Impairments — For the six months ended June 30, 2018 , we incurred $3 million of net OTTI, of which $2 million related to intent-to-sell impairments. These securities were impaired to fair value as of the impairment date. The remaining net OTTI of $1 million related to credit impairments where a portion was bifurcated in AOCI. Any credit loss impairments not bifurcated in AOCI are excluded from the rollforward below. The following table represents a rollforward of the cumulative amounts recognized on the condensed consolidated statements of income for OTTI related to pre-tax credit loss impairments on AFS fixed maturity securities, for which a portion of the securities’ total OTTI was recognized in AOCI: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Beginning balance $ 7 $ 16 $ 7 $ 16 Initial impairments – credit loss OTTI recognized on securities not previously impaired — 6 1 6 Reduction in impairments from securities sold, matured or repaid — (6 ) (1 ) (6 ) Ending balance $ 7 $ 16 $ 7 $ 16 Net Investment Income —Net investment income by asset class consists of the following: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Fixed maturity securities AFS securities $ 719 $ 635 $ 1,387 $ 1,255 Trading securities 54 53 98 103 Equity securities 2 2 4 5 Mortgage loans 104 90 195 175 Investment funds 58 65 123 120 Funds withheld at interest 86 34 132 70 Other 23 21 46 38 Investment revenue 1,046 900 1,985 1,766 Investment expenses (88 ) (79 ) (172 ) (159 ) Net investment income $ 958 $ 821 $ 1,813 $ 1,607 Investment Related Gains (Losses) —Investment related gains (losses) by asset class consists of the following: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 AFS securities Gross realized gains on investment activity $ 51 $ 35 $ 72 $ 63 Gross realized losses on investment activity (37 ) (13 ) (43 ) (21 ) Net realized investment gains on AFS securities 14 22 29 42 Net realized investment gains (losses) on trading securities (76 ) 42 (165 ) 28 Net realized investment gains on equity securities 3 2 4 20 Derivative gains (losses) 46 406 (138 ) 1,060 Other gains (losses) 11 (12 ) 32 (8 ) Investment related gains (losses) $ (2 ) $ 460 $ (238 ) $ 1,142 Proceeds from sales of AFS securities were $2,365 million and $1,235 million for the three months ended June 30, 2018 and 2017 , respectively, and $4,002 million and $2,766 million for the six months ended June 30, 2018 and 2017 , respectively. The following table summarizes the change in unrealized gains (losses) on trading and equity securities, including related party, we still held as of the respective period end: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Trading securities $ 30 $ 48 $ (39 ) $ 59 Trading securities – related party (4 ) 12 (6 ) — Equity securities 4 (2 ) 4 13 Purchased Credit Impaired (PCI) Investments —The following table summarizes our PCI investments: June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 (In millions) Fixed maturity securities Mortgage loans Contractually required payments receivable $ 8,695 $ 9,690 $ 1,198 $ 1,140 Less: Cash flows expected to be collected 1 (7,689 ) (8,188 ) (1,164 ) (1,090 ) Non-accretable difference $ 1,006 $ 1,502 $ 34 $ 50 Cash flows expected to be collected 1 $ 7,689 $ 8,188 $ 1,164 $ 1,090 Less: Amortized cost (5,905 ) (6,168 ) (860 ) (817 ) Accretable difference $ 1,784 $ 2,020 $ 304 $ 273 Fair value $ 6,426 $ 6,703 $ 909 $ 844 Outstanding balance 7,250 8,026 992 946 1 Represents the undiscounted principal and interest cash flows expected. During the period, we acquired PCI investments with the following amounts at the time of purchase: June 30, 2018 (In millions) Fixed maturity securities Mortgage loans Contractually required payments receivable $ 405 $ 89 Cash flows expected to be collected 381 87 Fair value 310 68 The following table summarizes the activity for the accretable yield on PCI investments: Three months ended June 30, 2018 Six months ended June 30, 2018 (In millions) Fixed maturity securities Mortgage loans Fixed maturity securities Mortgage loans Beginning balance $ 1,912 $ 291 $ 2,020 $ 273 Purchases of PCI investments, net of sales 28 16 44 14 Accretion (105 ) (11 ) (205 ) (21 ) Net reclassification from (to) non-accretable difference (51 ) 8 (75 ) 38 Ending balance $ 1,784 $ 304 $ 1,784 $ 304 Mortgage Loans —Mortgage loans, net of allowances, consists of the following: (In millions) June 30, 2018 December 31, 2017 Commercial mortgage loans $ 6,197 $ 5,223 Commercial mortgage loans under development 37 24 Total commercial mortgage loans 6,234 5,247 Residential mortgage loans 1,375 986 Mortgage loans, net of allowances $ 7,609 $ 6,233 We primarily invest in commercial mortgage loans on income producing properties including hotels, industrial properties and retail and office buildings. We diversify the commercial mortgage loan portfolio by geographic region and property type to reduce concentration risk. We evaluate mortgage loans based on relevant current information to confirm if properties are performing at a consistent and acceptable level to secure the related debt. The distribution of commercial mortgage loans, including those under development, net of valuation allowances, by property type and geographic region, is as follows: June 30, 2018 December 31, 2017 (In millions, except for percentages) Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total Property type Office building $ 1,769 28.4 % $ 1,187 22.6 % Retail 1,710 27.4 % 1,223 23.3 % Hotels 895 14.4 % 928 17.7 % Industrial 858 13.8 % 944 18.0 % Apartment 545 8.7 % 525 10.0 % Other commercial 457 7.3 % 440 8.4 % Total commercial mortgage loans $ 6,234 100.0 % $ 5,247 100.0 % U.S. Region East North Central $ 921 14.8 % $ 643 12.3 % East South Central 160 2.6 % 144 2.7 % Middle Atlantic 1,025 16.4 % 909 17.3 % Mountain 512 8.2 % 492 9.4 % New England 144 2.3 % 162 3.1 % Pacific 1,362 21.9 % 991 18.9 % South Atlantic 1,362 21.8 % 873 16.6 % West North Central 189 3.0 % 233 4.4 % West South Central 559 9.0 % 655 12.5 % Total U.S. Region 6,234 100.0 % 5,102 97.2 % International Region — — % 145 2.8 % Total commercial mortgage loans $ 6,234 100.0 % $ 5,247 100.0 % Our residential mortgage loan portfolio includes first lien residential mortgage loans collateralized by properties located in the U.S. As of June 30, 2018 , California and Florida represented 33.3% and 16.7% , respectively, of the portfolio, and the remaining 50.0% represented all other states, with each individual state comprising less than 5% of the portfolio. As of December 31, 2017 , California , Florida and New York represented 34.3% , 15.6% and 6.0% , respectively, of the portfolio, and the remaining 44.1% represented all other states, with each individual state comprising less than 5% of the portfolio. Mortgage Loan Valuation Allowance — The assessment of mortgage loan impairments and valuation allowances is substantially the same for residential and commercial mortgage loans. The valuation allowance was $1 million as of June 30, 2018 and $2 million as of December 31, 2017 . We did not record any material activity in the valuation allowance during the six months ended June 30, 2018 or 2017 . Residential mortgage loans – The primary credit quality indicator of residential mortgage loans is loan performance. Nonperforming residential mortgage loans are 90 days or more past due and/or are in non-accrual status. As of June 30, 2018 and December 31, 2017 , $35 million and $28 million , respectively, of our residential mortgage loans were non-performing. Commercial mortgage loans – As of June 30, 2018 and December 31, 2017 , none of our commercial mortgage loans were 30 days or more past due. Loan-to-value and debt service coverage ratios are measures we use to assess the risk and quality of commercial mortgage loans other than those under development. Loans under development are not evaluated using these ratios as the properties underlying these loans are generally not yet income-producing and the value of the underlying property significantly fluctuates based on the progress of construction. Therefore, the risk and quality of loans under development are evaluated based on the aging and geographical distribution of such loans as shown above. The loan-to-value ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A loan-to-value ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The following represents the loan-to-value ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances: (In millions) June 30, 2018 December 31, 2017 Less than 50% $ 1,952 $ 1,841 50% to 60% 1,607 1,390 61% to 70% 1,989 1,691 71% to 100% 649 301 Commercial mortgage loans $ 6,197 $ 5,223 The debt service coverage ratio, based upon the most recent financial statements, is expressed as a percentage of a property’s net operating income to its debt service payments. A debt service ratio of less than 1.0 indicates a property’s operations do not generate enough income to cover debt payments. The following represents the debt service coverage ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances: (In millions) June 30, 2018 December 31, 2017 Greater than 1.20x $ 5,776 $ 4,742 1.00x – 1.20x 302 297 Less than 1.00x 119 184 Commercial mortgage loans $ 6,197 $ 5,223 Investment Funds —Our investment fund portfolio consists of funds that employ various strategies and include investments in real estate and other real assets, credit , private equity, natural resources and hedge funds. Investment funds typically meet the definition of VIEs and are discussed further in Note 4 – Variable Interest Entities . |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 3. Derivative Instruments We use a variety of derivative instruments to manage risks, primarily equity, interest rate, credit, foreign currency and market volatility. See Note 5 – Fair Value for information about the fair value hierarchy for derivatives. The following table presents the notional amount and fair value of derivative instruments: June 30, 2018 December 31, 2017 Notional Amount Fair Value Notional Amount Fair Value (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedges Foreign currency swaps 1,713 $ 28 $ 102 928 $ 1 $ 99 Interest rate swaps — — — 302 — — Total derivatives designated as hedges 28 102 1 99 Derivatives not designated as hedges Equity options 34,189 1,875 13 31,460 2,500 19 Futures 4 3 — 1,134 7 — Total return swaps 61 1 — 114 5 — Foreign currency swaps 42 3 4 41 21 3 Interest rate swaps 480 — 1 385 — 2 Credit default swaps 10 — 5 10 — 5 Foreign currency forwards 595 19 12 1,139 17 6 Embedded derivatives Funds withheld — 312 4 — 312 22 Interest sensitive contract liabilities — — 8,065 — — 7,436 Total derivatives not designated as hedges 2,213 8,104 2,862 7,493 Total derivatives $ 2,241 $ 8,206 $ 2,863 $ 7,592 Derivatives Designated as Hedges Foreign currency swaps – We use foreign currency swaps to convert foreign currency denominated cash flows of an investment to U.S. dollars to reduce cash flow fluctuations due to changes in currency exchange rates. Certain of these swaps are designated and accounted for as cash flow hedges, which will expire by December 2045 . During the three months ended June 30, 2018 and 2017 , we had foreign currency swap gains of $101 million and losses of $33 million , respectively, recorded in AOCI. During the six months ended June 30, 2018 and 2017 , we had foreign currency swap gains of $45 million and losses of $38 million , respectively, recorded in AOCI. There were no amounts reclassified to income during the six months ended June 30, 2018 and 2017 , and as of June 30, 2018 , no amounts are expected to be reclassified to income within the next 12 months. Derivatives Not Designated as Hedges Equity options – We use equity indexed options to economically hedge fixed indexed annuity products that guarantee the return of principal to the policyholder and credit interest based on a percentage of the gain in a specified market index, primarily the S&P 500. To hedge against adverse changes in equity indices, we enter into contracts to buy equity indexed options. The contracts are net settled in cash based on differentials in the indices at the time of exercise and the strike price. Futures – Futures contracts are purchased to hedge the growth in interest credited to the customer as a direct result of increases in the related indices. We enter into exchange-traded futures with regulated futures commission clearing brokers who are members of a trading exchange. Under exchange-traded futures contracts, we agree to purchase a specified number of contracts with other parties and to post variation margin on a daily basis in an amount equal to the difference in the daily fair values of those contracts. Interest rate swaps – We use interest rate swaps to reduce market risks from interest rate changes and to alter interest rate exposure arising from duration mismatches between assets and liabilities. With an interest rate swap, we agree with another party to exchange the difference between fixed-rate and floating-rate interest amounts tied to an agreed-upon notional principal amount at specified intervals. Certain of these swaps entered into during the fourth quarter of 2016 were designated as fair value hedges. These fair value hedges were dedesignated during the second quarter of 2018 and there was no material impact as a result. Total return swaps – We purchase total rate of return swaps to gain exposure and benefit from a reference asset or index without ownership. Total rate of return swaps are contracts in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of the underlying asset or index, which includes both the income it generates and any capital gains. Credit default swaps – Credit default swaps provide a measure of protection against the default of an issuer or allow us to gain credit exposure to an issuer or traded index. We use credit default swaps coupled with a bond to synthetically create the characteristics of a reference bond. These transactions have a lower cost and are generally more liquid relative to the cash market. We receive a periodic premium for these transactions as compensation for accepting credit risk. Hedging credit risk involves buying protection for existing credit risk. The exposure resulting from the agreements, which is usually the notional amount, is equal to the maximum proceeds that must be paid by a counterparty for a defaulted security. If a credit event occurs on a reference entity, then a counterparty who sold protection is required to pay the buyer the trade notional amount less any recovery value of the security. Foreign currency forwards – We use foreign currency forward contracts to hedge certain exposures to foreign currency risk. The price is agreed upon at the time of the contract and payment is made at a specified future date. Embedded derivatives – We have embedded derivatives which are required to be separated from their host contracts and reported as derivatives. Host contracts include reinsurance agreements structured on a modified coinsurance (modco) or funds withheld basis and indexed annuity products. The following is a summary of the gains (losses) related to derivatives not designated as hedges: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Equity options $ 89 $ 259 $ (53 ) $ 787 Futures 1 (4 ) (4 ) (14 ) Swaps (9 ) 9 (7 ) 14 Foreign currency forwards 14 19 7 20 Embedded derivatives on funds withheld (49 ) 123 (81 ) 253 Amounts recognized in investment related gains (losses) 46 406 (138 ) 1,060 Embedded derivatives in indexed annuity products 1 (54 ) (302 ) 184 (733 ) Total gains (losses) on derivatives not designated as hedges $ (8 ) $ 104 $ 46 $ 327 1 Included in interest sensitive contract benefits. Credit Risk —We may be exposed to credit-related losses in the event of counterparty nonperformance on derivative financial instruments. Generally, the current credit exposure of our derivative contracts is the fair value at the reporting date less any collateral received from the counterparty. We manage credit risk related to over-the-counter derivatives by entering into transactions with creditworthy counterparties. Where possible, we maintain collateral arrangements and use master netting agreements that provide for a single net payment from one counterparty to another at each due date and upon termination. We have also established counterparty exposure limits, where possible, in order to evaluate if there is sufficient collateral to support the net exposure. Collateral arrangements typically require the posting of collateral in connection with its derivative instruments. Collateral agreements often contain posting thresholds, some of which may vary depending on the posting party’s financial strength ratings. Additionally, a decrease in our financial strength rating to a specified level can result in settlement of the derivative position. The estimated fair value of our net derivative and other financial assets and liabilities after the application of master netting agreements and collateral were as follows: Gross amounts not offset on the condensed consolidated balance sheets (In millions) Gross amount recognized 1 Financial instruments 2 Collateral received/pledged Net amount Off-balance sheet securities collateral 3 Net amount after securities collateral June 30, 2018 Derivative assets $ 1,929 $ (59 ) $ (1,746 ) $ 124 $ (111 ) $ 13 Derivative liabilities (137 ) 59 56 (22 ) — (22 ) December 31, 2017 Derivative assets $ 2,551 $ (59 ) $ (2,323 ) $ 169 $ (221 ) $ (52 ) Derivative liabilities (134 ) 59 63 (12 ) — (12 ) 1 T he gross amounts of recognized derivative assets and derivative liabilities are reported on the c ondensed c onsolidated balance sheets. As of June 30, 2018 and December 31, 2017, amounts not subject to master netting or similar agreements were immaterial. 2 Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the condensed consolidated balance sheets. 3 For non-cash collateral received, we do not recognize the collateral on our balance sheet unless the obligor (transferor) has defaulted under the terms of the secured contract and is no longer entitled to redeem the pledged asset. Amounts do not include any excess of collateral pledged or received. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 4. Variable Interest Entities Our investment funds typically meet the definition of a VIE, and in certain cases these investment funds are consolidated in our financial statements because we meet the criteria of the primary beneficiary. Consolidated VIEs —We consolidate AAA Investments (Co-Invest VI), L.P. (CoInvest VI), AAA Investments (Co-Invest VII), L.P. (CoInvest VII), AAA Investments (Other), L.P. (CoInvest Other), NCL Athene, LLC (NCL LLC), Apollo Asia Sprint Co-Investment Fund, L.P. (Sprint) and ALR Aircraft Investment Ireland Limited (ALR), which are investment funds. We are the only limited partner, Class A member or holder of profit participating notes in these investment funds and receive all of the economic benefits and losses, other than management fees and carried interest, as applicable, paid to the general partner in each entity, or a related entity, which are related parties. We do not have any voting rights as limited partner and, as the limited partner, Class A member or holder of profit participating notes, do not solely satisfy the power criteria to direct the activities that significantly impact the economics of the VIE. However, the criteria for the primary beneficiary are satisfied by our related party group and, because substantially all of the activities are conducted on our behalf, we consolidate the investment funds. No arrangement exists requiring us to provide additional funding in excess of our committed capital investment, liquidity, or the funding of losses or an increase to our loss exposure in excess of our investment in the VIEs. We elected the fair value option for certain fixed maturity and equity securities, and investment funds, which are reported in the consolidated variable interest entity sections on the condensed consolidated balance sheets. CoInvest VI, CoInvest VII and CoInvest Other were formed to make investments, including co-investments alongside private equity funds sponsored by Apollo. We received our interests in CoInvest VI, CoInvest VII and CoInvest Other as part of a contribution agreement in 2012 with AAA Guarantor – Athene, L.P. (AAA Investor) and its subsidiary, Apollo Life Re Ltd., in order to provide a capital base to support future acquisitions. CoInvest VII holds a significant investment in MidCap FinCo Limited (MidCap), which is included in investment funds of consolidated VIEs on the condensed consolidated balance sheets. We have purchased pools of loans sourced by MidCap and contemporaneously sold subordinated participation interests in the loans to a subsidiary of MidCap. As of June 30, 2018 and December 31, 2017 , we had $14 million due to MidCap under the subordinated participation agreement which is reflected as a secured borrowing in other liabilities on the condensed consolidated balance sheets. In addition, we have advanced amounts under a subordinated debt facility to MidCap and, as of June 30, 2018 and December 31, 2017 , the principal balance was $245 million , and this is included in other related party investments on the condensed consolidated balance sheets. NCL LLC was formed to hold the investment in Norwegian Cruise Line Holdings Ltd. (NCLH) shares, which were previously held by CoInvest VI. NCL LLC is subject to the same management fees, selling restrictions with respect to shares of NCLH, and carried interest calculation as CoInvest VI. NCL LLC classifies its NCLH shares as equity securities. We are the primary beneficiary and consolidate NCL LLC, as substantially all of its activities are conducted on our behalf. We have a 100% limited partnership interest in Sprint, an entity formed to make a co-investment alongside private equity funds sponsored by Apollo. The underlying investment is a structured credit facility on a nearly complete skyscraper in Southeast Asia. We are the primary beneficiary and consolidate Sprint, as substantially all of its activities are conducted on our behalf. During the first quarter of 2018, we invested in profit participating notes of ALR. ALR was formed to invest in a joint venture that provides airplane lease financing to a major commercial airline. We are the only investor in the profit participating notes and, as substantially all of the activities of ALR are conducted on our behalf, we are the primary beneficiary and consolidate ALR. Trading securities – related party – Trading securities represents investments in fixed maturity securities with changes in fair value recognized in investment related gains (losses) within revenues of consolidated variable interest entities on the condensed consolidated statements of income. Trading securities held by CoInvest VI and CoInvest VII are related party investments because Apollo affiliates exercise significant influence over the operations of these investees. Equity securities – related party – Changes in fair value of equity securities are recognized in investment related gains (losses) within revenues of consolidated variable interest entities on the condensed consolidated statements of income. Prior period unrealized changes in fair value of equity securities designated as AFS were recognized in OCI. Equity securities held by CoInvest VI, CoInvest VII, CoInvest Other and NCL LLC are related party investments because Apollo affiliates exercise significant influence over the operations of these investees. The following table summarizes the change in unrealized gains (losses) on trading and equity securities of our consolidated variable interest entities still held as of the respective period end: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Trading securities – related party $ 1 $ 1 $ 1 $ 1 Equity securities – related party (14 ) 9 (39 ) 5 Investment funds, including related party – Investment funds include non-fixed income, alternative investments in the form of limited partnerships or similar legal structures that meet the definition of VIEs; however, our consolidated VIEs are not considered the primary beneficiary of these investment funds. Changes in fair value for certain of these investment funds are included in investment related gains (losses) within revenues of consolidated variable interest entities on the condensed consolidated statements of income. Investment funds held by CoInvest VII, CoInvest Other and Sprint are related party investments as they are sponsored or managed by Apollo affiliates. Fair Value —See Note 5 – Fair Value for a description of the levels of our fair value hierarchy and our process for determining the level we assign our assets and liabilities carried at fair value. The following represents the hierarchy for assets and liabilities of our consolidated VIEs measured at fair value on a recurring basis: June 30, 2018 (In millions) Total NAV 1 Level 1 Level 2 Level 3 Assets of consolidated variable interest entities Investments Fixed maturity securities, trading $ 48 $ — $ — $ — $ 48 Equity securities 163 — 137 — 26 Investment funds 542 541 — — 1 Cash and cash equivalents 2 — 2 — — Total assets of consolidated VIEs measured at fair value $ 755 $ 541 $ 139 $ — $ 75 1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. December 31, 2017 (In millions) Total NAV 1 Level 1 Level 2 Level 3 Assets of consolidated variable interest entities Investments Fixed maturity securities, trading $ 48 $ — $ — $ — $ 48 Equity securities 240 — 212 — 28 Investment funds 549 528 — — 21 Cash and cash equivalents 4 — 4 — — Total assets of consolidated VIEs measured at fair value $ 841 $ 528 $ 216 $ — $ 97 1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. Fair Value Valuation Methods – See Note 5 – Fair Value for the valuation methods used to determine the fair value of trading securities, equity securities, investment funds and cash and cash equivalents. Level 3 Financial Instruments – The following is a reconciliation for all VIE Level 3 assets and liabilities measured at fair value on a recurring basis: Three months ended June 30, 2018 (In millions) Beginning Balance Total realized and unrealized gains (losses) included in income Purchases Sales Transfers in (out) Ending Balance Total gains (losses) included in earnings 1 Assets of consolidated variable interest entities Fixed maturity securities Trading securities $ 47 $ 1 $ — $ — $ — $ 48 $ 1 Equity securities 28 (2 ) — — — 26 (2 ) Investment funds 20 (3 ) — (16 ) — 1 (3 ) Total Level 3 assets of consolidated VIEs $ 95 $ (4 ) $ — $ (16 ) $ — $ 75 $ (4 ) 1 Related to instruments held at end of period. Three months ended June 30, 2017 (In millions) Beginning Balance Total realized and unrealized gains (losses) included in income Purchases Sales Transfers in (out) Ending Balance Total gains (losses) included in earnings 1 Assets of consolidated variable interest entities Fixed maturity securities Trading securities $ 50 $ 1 $ — $ — $ — $ 51 $ — Equity securities 32 (2 ) — — — 30 (2 ) Investment funds 38 — 1 (7 ) — 32 — Total Level 3 assets of consolidated VIEs $ 120 $ (1 ) $ 1 $ (7 ) $ — $ 113 $ (2 ) 1 Related to instruments held at end of period. Six months ended June 30, 2018 (In millions) Beginning Balance Total realized and unrealized gains (losses) included in income Purchases Sales Transfers in (out) Ending Balance Total gains (losses) included in earnings 1 Assets of consolidated variable interest entities Fixed maturity securities Trading securities $ 48 $ 1 $ — $ (1 ) $ — $ 48 $ 1 Equity securities 28 (2 ) — — — 26 (2 ) Investment funds 21 (3 ) — (17 ) — 1 (3 ) Total Level 3 assets of consolidated VIEs $ 97 $ (4 ) $ — $ (18 ) $ — $ 75 $ (4 ) 1 Related to instruments held at end of period. Six months ended June 30, 2017 (In millions) Beginning Balance Total realized and unrealized gains (losses) included in income Purchases Sales Transfers in (out) Ending Balance Total gains (losses) included in earnings 1 Assets of consolidated variable interest entities Fixed maturity securities Trading securities $ 50 $ 1 $ — $ — $ — $ 51 $ 1 Equity securities 43 (13 ) — — — 30 (13 ) Investment funds 38 — 1 (7 ) — 32 — Total Level 3 assets of consolidated VIEs $ 131 $ (12 ) $ 1 $ (7 ) $ — $ 113 $ (12 ) 1 Related to instruments held at end of period. There were no transfers between Level 1 or Level 2 during the three and six months ended June 30, 2018 and 2017 . Significant Unobservable Inputs – For certain Level 3 trading securities and investment funds, the valuations have significant unobservable inputs, which may include, but are not limited to, comparable multiples and weighted average cost of capital rates applied in the valuation models. These inputs in isolation can cause significant increases or decreases in fair value. For example, the comparable multiples may be multiplied by the underlying investment’s earnings before interest, tax, depreciation and amortization or by some other applicable financial metric to establish the total enterprise value of the underlying investments. A comparable multiple consistent with the implied trading multiple of public industry peers or relevant recent private transactions are used when available. For other Level 3 trading securities, valuations are performed using a discounted cash flow model. For a discounted cash flow model, the significant input is the discount rate applied to present value the projected cash flows. An increase in the discount rate can significantly lower the fair value; a decrease in the discount rate can significantly increase the fair value. The discount rate may be determined by considering the weighted average cost of capital calculation of companies in similar industries with comparable debt to equity ratios. Fair Value Option – The following represents the gains (losses) recorded for instruments within the consolidated VIEs for which we have elected the fair value option: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Trading securities $ 1 $ 1 $ 1 $ 1 Investment funds 3 — 9 5 Total gains (losses) $ 4 $ 1 $ 10 $ 6 Fair Value of Financial Instruments Not Held at Fair Value – Assets of consolidated variable interest entities includes $51 million and $22 million of investment funds accounted for under the equity method and not carried at fair value as of June 30, 2018 and December 31, 2017 , respectively; however, the carrying amount approximates fair value. Non-Consolidated Securities and Investment Funds Fixed Maturity Securities – We invest in securitization entities as a debt holder or an investor in the residual interest of the securitization vehicle, which are included in fixed maturity securities on the condensed consolidated balance sheets. These entities are deemed VIEs due to insufficient equity within the structure and lack of control by the equity investors over the activities that significantly impact the economics of the entity. In general, we are a debt investor within these entities and, as such, hold a variable interest; however, due to the debt holders’ lack of ability to control the decisions within the trust that significantly impact the entity, and the fact the debt holders are protected from losses due to the subordination of the equity tranche, the debt holders are not deemed the primary beneficiary. Securitization vehicles in which we hold the residual tranche are not consolidated because we do not unilaterally have substantive rights to remove the general partner, or when assessing related party interests, we are not under common control, as defined by GAAP, with the related party, nor are substantially all of the activities conducted on our behalf; therefore, we are not deemed the primary beneficiary. Debt investments and investments in the residual tranche of securitization entities are considered debt instruments and are held at fair value on the balance sheet and classified as AFS or trading. Investment funds – Investment funds include non-fixed income, alternative investments in the form of limited partnerships or similar legal structures. Our risk of loss associated with our non-consolidated investments is limited and depends on the investment, including any unfunded commitments, as follows: (1) investment funds accounted for under the equity method are limited to our capital contributions, net of return of capital; (2) investment funds under the fair value option are limited to the fair value; (3) AFS securities and other investments are limited to amortized cost; and (4) trading securities are limited to carrying value. The following summarizes the carrying value and maximum loss exposure of these non-consolidated investments: June 30, 2018 December 31, 2017 (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment funds $ 633 $ 1,242 $ 699 $ 1,036 Investment in related parties – investment funds 1,836 3,644 1,310 2,598 Assets of consolidated variable interest entities – investment funds 593 594 571 594 Investment in fixed maturity securities 21,879 21,272 21,022 20,278 Investment in related parties – fixed maturity securities 1,234 1,321 713 792 Total non-consolidated investments $ 26,175 $ 28,073 $ 24,315 $ 25,298 The following summarizes our investment funds, including related party investment funds and investment funds owned by consolidated VIEs: June 30, 2018 December 31, 2017 (In millions, except for percentages and years) Carrying value Percent of total Remaining life in years Carrying value Percent of total Remaining life in years Investment funds Private equity $ 237 37.4 % 0 – 6 $ 271 38.8 % 0 – 7 Real estate and other real assets 179 28.3 % 0 – 7 161 23.0 % 1 – 7 Natural resources 4 0.6 % 0 – 0 4 0.6 % 1 – 1 Hedge funds 53 8.4 % 0 – 2 61 8.7 % 0 – 3 Credit funds 160 25.3 % 0 – 4 202 28.9 % 0 – 5 Total investment funds 633 100.0 % 699 100.0 % Investment funds – related parties Private equity – A-A Mortgage 1 432 23.5 % 4 – 4 403 30.8 % 5 – 5 Private equity – other 441 24.0 % 0 – 6 180 13.7 % 0 – 10 Real estate and other real assets 499 27.2 % 0 – 10 297 22.7 % 0 – 7 Natural resources 91 5.0 % 3 – 4 74 5.6 % 4 – 6 Hedge funds 98 5.3 % 0 – 11 93 7.1 % 9 – 9 Credit funds 275 15.0 % 0 – 3 263 20.1 % 2 – 4 Total investment funds – related parties 1,836 100.0 % 1,310 100.0 % Investment funds owned by consolidated VIEs Private equity – MidCap 2 541 91.2 % N/A 528 92.5 % N/A Credit funds 1 0.2 % 0 – 2 21 3.7 % 0 – 3 Real estate and other real assets 51 8.6 % 0 – 4 22 3.8 % 2 – 3 Total investment funds owned by consolidated VIEs 593 100.0 % 571 100.0 % Total investment funds including related parties and funds owned by consolidated VIEs $ 3,062 $ 2,580 1 A-A Mortgage Opportunities, L.P. (A-A Mortgage) is a platform to originate residential mortgage loans and mortgage servicing rights. Our total investment in A-A Mortgage, including amounts loaned to A-A Mortgage affiliates, was $604 million and $455 million as of June 30, 2018 and December 31, 2017, respectively. 2 Our total investment in MidCap, including amounts advanced under credit facilities, was $779 million and $766 million as of June 30, 2018 and December 31, 2017, respectively. Summarized Ownership of Investment Funds —The following table presents the carrying value by ownership percentage of equity method investment funds, including related party investment funds and investment funds owned by consolidated VIEs: (In millions) June 30, 2018 December 31, 2017 Ownership Percentage 100% $ 15 $ 35 50% – 99% 837 520 3% – 49% 1,399 1,301 Equity method investment funds $ 2,251 $ 1,856 The following table presents the carrying value by ownership percentage of investment funds where we elected the fair value option, including related party investment funds and investment funds owned by consolidated VIEs: (In millions) June 30, 2018 December 31, 2017 Ownership Percentage 50% – 99% $ — $ — 3% – 49% 678 590 Less than 3% 133 134 Fair value option investment funds $ 811 $ 724 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 5. Fair Value Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. We determine fair value based on the following fair value hierarchy: Level 1 – Unadjusted quoted prices for identical assets or liabilities in an active market. Level 2 – Quoted prices for inactive markets or valuation techniques that require observable direct or indirect inputs for substantially the full term of the asset or liability. Level 2 inputs include the following: • Quoted prices for similar assets or liabilities in active markets, • Observable inputs other than quoted market prices, and • Observable inputs derived principally from market data through correlation or other means. Level 3 – Prices or valuation techniques with unobservable inputs significant to the overall fair value estimate. These valuations use critical assumptions not readily available to market participants. Level 3 valuations are based on market standard valuation methodologies, including discounted cash flows, matrix pricing or other similar techniques. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the instrument’s fair value measurement. We use a number of valuation sources to determine fair values. Valuation sources can include quoted market prices; third-party commercial pricing services; third-party brokers; industry-standard, vendor modeling software that uses market observable inputs; and other internal modeling techniques based on projected cash flows. We periodically review the assumptions and inputs of third-party commercial pricing services through internal valuation price variance reviews, comparisons to internal pricing models, back testing to recent trades, or monitoring trading volumes. The following represents the hierarchy for our assets and liabilities measured at fair value on a recurring basis: June 30, 2018 (In millions) Total NAV 1 Level 1 Level 2 Level 3 Assets Fixed maturity securities AFS securities U.S. government and agencies $ 142 $ — $ 140 $ 2 $ — U.S. state, municipal and political subdivisions 1,271 — — 1,271 — Foreign governments 199 — — 199 — Corporate 36,854 — — 35,892 962 CLO 5,352 — — 5,071 281 ABS 4,716 — — 3,265 1,451 CMBS 2,324 — — 2,127 197 RMBS 8,904 — — 8,897 7 Total AFS securities 59,762 — 140 56,724 2,898 Trading securities U.S. government and agencies 5 — 3 2 — U.S. state, municipal and political subdivisions 127 — — 110 17 Corporate 1,338 — — 1,334 4 CLO 26 — — — 26 ABS 89 — — — 89 CMBS 49 — — 49 — RMBS 419 — — 115 304 Total trading securities 2,053 — 3 1,610 440 Equity securities 216 — 20 194 2 Mortgage loans 38 — — — 38 Investment funds 126 95 — — 31 Funds withheld at interest – embedded derivative 150 — — — 150 Derivative assets 1,929 — 3 1,926 — Short-term investments 289 — 58 231 — Other investments 50 — — 50 — Cash and cash equivalents 3,608 — 3,608 — — Restricted cash 178 — 178 — — Investments in related parties Fixed maturity securities AFS securities CLO 472 — — 433 39 ABS 484 — — 438 46 Total AFS securities – related party 956 — — 871 85 Trading securities CLO 114 — — — 114 ABS 164 — — — 164 Total trading securities – related party 278 — — — 278 Investment funds 198 93 — — 105 Funds withheld at interest – embedded derivative 162 — — — 162 Short-term investments 172 — — 162 10 Reinsurance recoverable 1,717 — — — 1,717 Total assets measured at fair value $ 71,882 $ 188 $ 4,010 $ 61,768 $ 5,916 (Continued) June 30, 2018 (In millions) Total NAV 1 Level 1 Level 2 Level 3 Liabilities Interest sensitive contract liabilities Embedded derivative $ 8,065 $ — $ — $ — $ 8,065 Universal life benefits 943 — — — 943 Future policy benefits AmerUs Closed Block 1,490 — — — 1,490 ILICO Closed Block and life benefits 759 — — — 759 Derivative liabilities 137 — — 132 5 Funds withheld liability – embedded derivative 4 — — 4 — Total liabilities measured at fair value $ 11,398 $ — $ — $ 136 $ 11,262 1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. (Concluded) December 31, 2017 (In millions) Total NAV 1 Level 1 Level 2 Level 3 Assets Fixed maturity securities AFS securities U.S. government and agencies $ 62 $ — $ 26 $ 36 $ — U.S. state, municipal and political subdivisions 1,165 — — 1,165 — Foreign governments 2,683 — — 2,683 — Corporate 36,660 — — 36,082 578 CLO 5,084 — — 5,020 64 ABS 3,971 — — 2,510 1,461 CMBS 2,021 — — 1,884 137 RMBS 9,366 — — 9,065 301 Total AFS securities 61,012 — 26 58,445 2,541 Trading securities U.S. government and agencies 3 — 3 — — U.S. state, municipal and political subdivisions 138 — — 121 17 Corporate 1,475 — — 1,475 — CLO 27 — — 10 17 ABS 94 — — 17 77 CMBS 51 — — 51 — RMBS 408 — — 66 342 Total trading securities 2,196 — 3 1,740 453 (Continued) December 31, 2017 (In millions) Total NAV 1 Level 1 Level 2 Level 3 Equity securities 790 — 18 764 8 Mortgage loans 41 — — — 41 Investment funds 145 104 — — 41 Funds withheld at interest – embedded derivative 312 — — — 312 Derivative assets 2,551 — 7 2,544 — Short-term investments 201 — 40 161 — Cash and cash equivalents 4,888 — 4,888 — — Restricted cash 105 — 105 — — Investments in related parties Fixed maturity securities AFS securities CLO 360 — — 360 — ABS 46 — — 46 — Total AFS securities – related party 406 — — 406 — Trading securities CLO 132 — — 27 105 ABS 175 — — 175 — Total trading securities – related party 307 — — 202 105 Investment funds 30 30 — — — Short-term investments 52 — — 52 — Reinsurance recoverable 1,824 — — — 1,824 Total assets measured at fair value $ 74,860 $ 134 $ 5,087 $ 64,314 $ 5,325 Liabilities Interest sensitive contract liabilities Embedded derivative $ 7,436 $ — $ — $ — $ 7,436 Universal life benefits 1,005 — — — 1,005 Unit-linked contracts 488 — — 488 — Future policy benefits AmerUs Closed Block 1,625 — — — 1,625 ILICO Closed Block and life benefits 803 — — — 803 Derivative liabilities 134 — — 129 5 Funds withheld liability – embedded derivative 22 — — 22 — Total liabilities measured at fair value $ 11,513 $ — $ — $ 639 $ 10,874 1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. (Concluded) See Note 4 – Variable Interest Entities for fair value disclosures associated with consolidated VIEs. Fair Value Valuation Methods —We used the following valuation methods and assumptions to estimate fair value: Fixed maturity – AFS and trading securities – We obtain the fair value for most marketable securities without an active market from several commercial pricing services. These are classified as Level 2 assets. The pricing services incorporate a variety of market observable information in their valuation techniques, including benchmark yields, trading activity, credit quality, issuer spreads, bids, offers and other reference data. This category typically includes U.S. and non-U.S. corporate bonds, U.S. agency and government guaranteed securities, CLO, ABS, CMBS and RMBS. We value privately placed fixed maturity securities based on the credit quality and duration of comparable marketable securities, which may be securities of another issuer with similar characteristics. In some instances, we use a matrix-based pricing model. These models consider the current level of risk-free interest rates, corporate spreads, credit quality of the issuer and cash flow characteristics of the security. We also consider additional factors such as net worth of the borrower, value of collateral, capital structure of the borrower, presence of guarantees and our evaluation of the borrower’s ability to compete in its relevant market. Privately placed fixed maturity securities are classified as Level 2 or 3. Equity securities – Fair values of publicly traded equity securities are based on quoted market prices and classified as Level 1. Other equity securities, typically private equities or equity securities not traded on an exchange, we value based on other sources, such as commercial pricing services or brokers and are classified as Level 2 or 3. Mortgage loans – Mortgage loans for which we have elected the fair value option or those held for sale are carried at fair value. We estimate fair value on a monthly basis using discounted cash flow analysis and rates being offered for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. The discounted cash flow model uses unobservable inputs, including estimates of discount rates and loan prepayments. Mortgage loans are classified as Level 3. Funds withheld (embedded derivative) – We estimate the fair value of the embedded derivative based on the change in the fair value of the assets supporting the funds withheld payable under the combined coinsurance, modco and coinsurance funds withheld reinsurance agreements. As a result, the fair value of the embedded derivative is classified as Level 2 or 3 based on the valuation methods used for the assets held in trust supporting the reinsurance agreements. Derivatives – Derivative contracts can be exchange traded or over-the-counter. Exchange-traded derivatives typically fall within Level 1 of the fair value hierarchy depending on trading activity. Over-the-counter derivatives are valued using valuation models or an income approach using third-party broker valuations. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit curves, measures of volatility, prepayment rates and correlation of the inputs. We consider and incorporate counterparty credit risk in the valuation process through counterparty credit rating requirements and monitoring of overall exposure. We also evaluate and include our own nonperformance risk in valuing derivatives. The majority of our derivatives trade in liquid markets; therefore, we can verify model inputs and model selection does not involve significant management judgment. These are typically classified within Level 2 of the fair value hierarchy. Cash and cash equivalents – including restricted cash – The carrying amount for cash equals fair value. We estimate the fair value for cash equivalents based on quoted market prices. These assets are classified as Level 1. Interest sensitive contract liabilities (embedded derivative) – Embedded derivatives related to interest sensitive contract liabilities with fixed indexed annuity products are classified as Level 3. The valuations include significant unobservable inputs associated with economic assumptions and actuarial assumptions for policyholder behavior. Unit-linked contracts – Unit-linked contracts are valued based on the fair value of the investments supporting the contract. The underlying investments are trading securities comprised primarily of mutual funds. The valuations of these are based on quoted market prices for similar assets and are classified as Level 2, resulting in a corresponding classification for the unit-linked contracts. AmerUs Closed Block – We elected the fair value option for the future policy benefits liability in the AmerUs Closed Block. Our valuation technique is to set the fair value of policyholder liabilities equal to the fair value of assets. There is an additional component which captures the fair value of the open block’s obligations to the closed block business. This component is the present value of the projected release of required capital and future earnings before income taxes on required capital supporting the AmerUs Closed Block, discounted at a rate which represents a market participant’s required rate of return, less the initial required capital. Unobservable inputs include estimates for these items. The AmerUs Closed Block policyholder liabilities and any corresponding reinsurance recoverable are classified as Level 3. ILICO Closed Block – We elected the fair value option for the ILICO Closed Block. Our valuation technique is to set the fair value of policyholder liabilities equal to the fair value of assets. There is an additional component which captures the fair value of the open block’s obligations to the closed block business. This component uses the present value of future cash flows which include commissions, administrative expenses, reinsurance premiums and benefits, and an explicit cost of capital. The discount rate includes a margin to reflect the business and non-performance risk. Unobservable inputs include estimates for these items. The ILICO Closed Block policyholder liabilities and corresponding reinsurance recoverable are classified as Level 3. Universal life liabilities and other life benefits – We elected the fair value option for certain blocks of universal and other life business ceded to Global Atlantic Financial Group Limited (together with its subsidiaries, Global Atlantic). We use a present value of liability cash flows. Unobservable inputs include estimates of mortality, persistency, expenses, premium payments and a risk margin used in the discount rates that reflects the riskiness of the business. These universal life policyholder liabilities and corresponding reinsurance recoverable are classified as Level 3. Fair Value Option — The following represents the gains (losses) recorded for instruments for which we have elected the fair value option: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Trading securities $ (76 ) $ 41 $ (165 ) $ 27 Investment funds, including related party investment funds 10 7 6 14 Future policy benefits 51 (19 ) 135 (15 ) Total gains (losses) $ (15 ) $ 29 $ (24 ) $ 26 Gains and losses on trading and equity securities are recorded in investment related gains (losses) on the condensed consolidated statements of income. Prior period unrealized gains and losses on equity securities designated as AFS were recorded in OCI. For fair valu e option mortgage loans, we record interest income in net investment income and subsequent changes in fair value in investment related gains (losses) on the condensed consolidated statements of income. Gains and losses related to investment funds, including related party investment funds, are recorded in net investment income on the condensed consolidated statements of income. We record the change in fair value of future policy benefits to future policy and other policy benefits on the condensed consolidated statements of income. The following summarizes information for fair value option mortgage loans: (In millions) June 30, 2018 December 31, 2017 Unpaid principal balance $ 37 $ 40 Mark to fair value 1 1 Fair value $ 38 $ 41 There were no fair value option mortgage loans 90 days or more past due as of June 30, 2018 and December 31, 2017 . Transfers Between Levels —Transfers into Level 3 generally represent securities that were valued using pricing sources which, due to changing market conditions, were less observable than in prior periods as indicated by the increased volatility, which was reflected in vendor prices obtained for individual securities. Additionally, changes in pricing sources also led to securities transferring into Level 3. Transfers out of Level 3 generally represent securities that were valued using pricing sources which, due to changing market conditions, were more observable than in prior periods as indicated by decreased volatility, which was reflected in vendor prices obtained for individual securities. Additionally, changes in pricing sources also led to securities transferring into Level 2. Transfers into or out of any level are assumed to occur at the end of the period. For the three and six months ended June 30, 2018 and 2017 , there were no transfers between Level 1 and Level 2. Level 3 Financial Instruments — The following is a reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis: Three months ended June 30, 2018 Total realized and unrealized gains (losses) Transfers (In millions) Beginning Balance Included in income Included in OCI Net purchases, issuances, sales and settlements In (Out) Ending Balance Total gains (losses) included in earnings 1 Assets Fixed maturity securities AFS securities Corporate $ 681 $ (8 ) $ (5 ) $ 290 $ 28 $ (24 ) $ 962 $ — CLO 167 — — 211 32 (129 ) 281 — ABS 1,294 3 (9 ) 273 — (110 ) 1,451 — CMBS 63 — 1 152 — (19 ) 197 — RMBS 38 — — — — (31 ) 7 — Trading securities U.S. state, municipal and political subdivisions 17 — — — — — 17 — Corporate — — — 4 — — 4 — CLO 1 — — — 26 (1 ) 26 — ABS — — — — 89 — 89 — RMBS 321 (17 ) — — — — 304 3 Equity securities — 1 — 1 — — 2 1 Mortgage loans 41 — — (3 ) — — 38 — Investment funds 25 6 — — — — 31 6 Funds withheld at interest – embedded derivative 207 (57 ) — — — — 150 — Investments in related parties Fixed maturity securities AFS securities CLO 62 — — 38 — (61 ) 39 — ABS — — — 46 — — 46 — Trading securities CLO 91 (1 ) — — 24 — 114 1 ABS 171 (7 ) — — — — 164 (7 ) Equity securities — — — — — — — — Investment funds 111 (6 ) — — — — 105 (6 ) Funds withheld at interest – embedded derivative — 162 — — — — 162 — Short-term investments — — — 10 — — 10 — Reinsurance recoverable 1,713 4 — — — — 1,717 — Total Level 3 assets $ 5,003 $ 80 $ (13 ) $ 1,022 $ 199 $ (375 ) $ 5,916 $ (2 ) Liabilities Interest sensitive contract liabilities Embedded derivative $ (7,254 ) $ (54 ) $ — $ (757 ) $ — $ — $ (8,065 ) $ — Universal life benefits (934 ) (9 ) — — — — (943 ) — Future policy benefits AmerUs Closed Block (1,541 ) 51 — — — — (1,490 ) — ILICO Closed Block and life benefits (764 ) 5 — — — — (759 ) — Derivative liabilities (5 ) — — — — — (5 ) — Total Level 3 liabilities $ (10,498 ) $ (7 ) $ — $ (757 ) $ — $ — $ (11,262 ) $ — 1 Related to instruments held at end of period. Three months ended June 30, 2017 Total realized and unrealized gains (losses) Transfers (In millions) Beginning Balance Included in income Included in OCI Net purchases, issuances, sales and settlements In (Out) Ending Balance Total gains (losses) included in earnings 1 Assets Fixed maturity securities AFS Securities Foreign governments $ 13 $ 1 $ — $ — $ — $ — $ 14 $ — Corporate 490 3 4 28 — (73 ) 452 — CLO 100 — 4 17 11 (51 ) 81 — ABS 1,222 5 3 11 — (148 ) 1,093 — CMBS 147 1 — 13 48 (87 ) 122 — RMBS 60 1 2 6 243 — 312 — Trading Securities U.S. state, municipal and political subdivisions 17 — — — — — 17 — CLO 27 — — — — (5 ) 22 1 RMBS 82 (4 ) — 22 — — 100 — Equity securities 5 — — 1 — — 6 — Mortgage loans 44 — — (1 ) — — 43 — Funds withheld at interest – embedded derivative 212 67 — — — — 279 — Investments in related parties Fixed maturity securities Trading securities, CLO 131 5 — (12 ) 31 (32 ) 123 5 Short-term investments 20 — — 8 — — 28 — Reinsurance recoverable 1,738 44 — — — — 1,782 — Total Level 3 assets $ 4,308 $ 123 $ 13 $ 93 $ 333 $ (396 ) $ 4,474 $ 6 Liabilities Interest sensitive contract liabilities Embedded derivative $ (5,793 ) $ (302 ) $ — $ (112 ) $ — $ — $ (6,207 ) $ — Universal life benefits (910 ) (44 ) — — — — (954 ) — Future policy benefits AmerUs Closed Block (1,602 ) (19 ) — — — — (1,621 ) — ILICO Closed Block and life benefits (813 ) 1 — — — — (812 ) — Derivative liabilities (7 ) 1 — — — — (6 ) — Total Level 3 liabilities $ (9,125 ) $ (363 ) $ — $ (112 ) $ — $ — $ (9,600 ) $ — 1 Related to instruments held at end of period. Six months ended June 30, 2018 Total realized and unrealized gains (losses) Transfers (In millions) Beginning Balance Included in income Included in OCI Net purchases, issuances, sales and settlements In (Out) Ending Balance Total gains (losses) included in earnings 1 Assets Fixed maturity securities AFS securities Corporate $ 578 $ (3 ) $ (9 ) $ 340 $ 64 $ (8 ) $ 962 $ — CLO 64 — 2 226 17 (28 ) 281 — ABS 1,461 5 (17 ) 157 — (155 ) 1,451 — CMBS 137 1 (3 ) 152 — (90 ) 197 — RMBS 301 3 (8 ) (19 ) 7 (277 ) 7 — Trading securities U.S. state, municipal and political subdivisions 17 — — — — — 17 — Corporate — — — 4 — — 4 — CLO 17 (1 ) — — 10 — 26 — ABS 77 (4 ) — — 16 — 89 (3 ) RMBS 342 (38 ) — — — — 304 2 Equity securities 8 1 — (7) — — 2 — Mortgage loans 41 — — (3 ) — — 38 — Investment funds 41 (3 ) — (7 ) — — 31 (3 ) Funds withheld at interest – embedded derivative 312 (162 ) — — — — 150 — Investments in related parties Fixed maturity securities AFS securities CLO — — — 39 — — 39 — ABS — — — 46 — — 46 — Trading securities CLO 105 (2 ) — (18 ) 29 — 114 1 ABS — — — — 164 — 164 — Investment funds — (3 ) — 108 — — 105 (3 ) Funds withheld at interest – embedded derivative — 162 — — — — 162 — Short-term investments — — — 10 — — 10 — Reinsurance recoverable 1,824 (107 ) — — — — 1,717 — Total Level 3 assets $ 5,325 $ (151 ) $ (35 ) $ 1,028 $ 307 $ (558 ) $ 5,916 $ (6 ) Liabilities Interest sensitive contract liabilities Embedded derivative $ (7,436 ) $ 184 $ — $ (813 ) $ — $ — $ (8,065 ) $ — Universal life benefits (1,005 ) 62 — — — — (943 ) — Future policy benefits AmerUs Closed Block (1,625 ) 135 — — — — (1,490 ) — ILICO Closed Block and life benefits (803 ) 44 — — — — (759 ) — Derivative liabilities (5 ) — — — — — (5 ) — Total Level 3 liabilities $ (10,874 ) $ 425 $ — $ (813 ) $ — $ — $ (11,262 ) $ — 1 Related to instruments held at end of period. Six months ended June 30, 2017 Total realized and unrealized gains (losses) Transfers (In millions) Beginning balance Included in income Included in OCI Net purchases, issuances, sales and settlements In Out Ending balance Total gains (losses) included in earnings 1 Assets Fixed maturity securities AFS Securities U.S. state, municipal and political subdivisions $ 5 $ 16 $ (1 ) $ (20 ) $ — $ — $ — $ — Foreign governments 14 1 — (1 ) — — 14 — Corporate 370 4 10 105 — (37 ) 452 — CLO 158 — 9 7 11 (104 ) 81 — ABS 1,160 9 17 42 — (135 ) 1,093 — CMBS 152 1 (3 ) 13 17 (58 ) 122 — RMBS 17 1 — 6 296 (8 ) 312 — Trading securities U.S. state, municipal and political subdivisions 17 — — — — — 17 — CLO 43 (1 ) — (15 ) — (5 ) 22 2 RMBS 96 (9 ) — 24 — (11 ) 100 (1 ) Equity Securities 5 — — 1 — — 6 — Mortgage loans 44 — — (1 ) — — 43 — Funds withheld at interest – embedded derivative 140 139 — — — — 279 — Investments in related parties Fixed maturity securities AFS Securities ABS 56 — 1 (4 ) — (53 ) — — Trading securities CLO 195 (3 ) — (26 ) — (43 ) 123 (1 ) Short-term investments — — — 28 — — 28 — Reinsurance recoverable 1,692 90 — — — — 1,782 — Total Level 3 assets $ 4,164 $ 248 $ 33 $ 159 $ 324 $ (454 ) $ 4,474 $ — Liabilities Interest sensitive contract liabilities Embedded derivative $ (5,283 ) $ (733 ) $ — $ (191 ) $ — $ — $ (6,207 ) $ — Universal life benefits (883 ) (71 ) — — — — (954 ) — Future policy benefits AmerUs Closed Block (1,606 ) (15 ) — — — — (1,621 ) — ILICO Closed Block and life benefits (794 ) (18 ) — — — — (812 ) — Derivative liabilities (7 ) 1 — — — — (6 ) 1 Total Level 3 liabilities $ (8,573 ) $ (836 ) $ — $ (191 ) $ — $ — $ (9,600 ) $ 1 1 Related to instruments held at end of period. The following represents the gross components of purchases, issuances, sales and settlements, net, shown above: Three months ended June 30, 2018 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets Fixed maturity securities AFS securities Corporate $ 300 $ — $ (2 ) $ (8 ) $ 290 CLO 211 — — — 211 ABS 347 — — (74 ) 273 CMBS 152 — — — 152 Trading securities Corporate 4 — — — 4 Equity securities 1 — — — 1 Mortgage loans — — — (3 ) (3 ) Investments in related parties Fixed maturity securities AFS securities CLO 38 — — — 38 ABS 46 — — — 46 Trading securities, CLO 30 — (30 ) — — Short-term investments 10 — — — 10 Total Level 3 assets $ 1,139 $ — $ (32 ) $ (85 ) $ 1,022 Liabilities Interest sensitive contract liabilities Embedded derivative $ — $ (858 ) $ — $ 101 $ (757 ) Total Level 3 liabilities $ — $ (858 ) $ — $ 101 $ (757 ) Three months ended June 30, 2017 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets Fixed maturity securities AFS securities Corporate $ 30 $ — $ (1 ) $ (1 ) $ 28 CLO 24 — (5 ) (2 ) 17 ABS 99 — — (88 ) 11 CMBS 13 — — — 13 RMBS 7 — — (1 ) 6 Trading securities RMBS 22 — — — 22 Equity securities 1 — — — 1 Mortgage loans — — — (1 ) (1 ) Investments in related parties Fixed maturity securities Trading securities, CLO — — (12 ) — (12 ) Short-term investments 8 — — — 8 Total Level 3 assets $ 204 $ — $ (18 ) $ (93 ) $ 93 Liabilities Interest sensitive contract liabilities Embedded derivative $ — $ (160 ) $ — $ 48 $ (112 ) Total Level 3 liabilities $ — $ (160 ) $ — $ 48 $ (112 ) Six months ended June 30, 2018 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets Fixed maturity securities AFS securities Corporate $ 358 $ — $ (5 ) $ (13 ) $ 340 CLO 231 — (5 ) — 226 ABS 356 — (21 ) (178 ) 157 CMBS 153 — — (1 ) 152 RMBS — — — (19 ) (19 ) Trading securities Corporate 4 — — — 4 CLO 7 — (7 ) — — Equity securities 1 — (8) — (7 ) Mortgage loans — — — (3 ) (3 ) Investment funds — — — (7 ) (7 ) Investments in related parties Fixed maturity securities AFS securities CLO 39 — — — 39 ABS 46 — — — 46 Trading securities, CLO 30 — (48 ) — (18 ) Investment funds 108 — — — 108 Short-term investments 10 — — — 10 Total Level 3 assets $ 1,343 $ — $ (94 ) $ (221 ) $ 1,028 Liabilities Interest sensitive contract liabilities Embedded derivative $ — $ (984 ) $ — $ 171 $ (813 ) Total Level 3 liabilities $ — $ (984 ) $ — $ 171 $ (813 ) Six months ended June 30, 2017 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets Fixed maturity securities AFS securities U.S. state, municipal and political subdivisions $ — $ — $ — $ (20 ) $ (20 ) Foreign governments — — — (1 ) (1 ) Corporate 110 — (2 ) (3 ) 105 CLO 24 — (2 ) (15 ) 7 ABS 182 — — (140 ) 42 CMBS 13 — — — 13 RMBS 7 — — (1 ) 6 Trading securities CLO — — (15 ) — (15 ) RMBS 24 — — — 24 Equity securities 1 — — — 1 Mortgage loans — — — (1 ) (1 ) Investments in related parties Fixed maturity securities AFS securities, ABS 5 — — (9 ) (4 ) Trading securities, CLO — — (26 ) — (26 ) Short-term investments 28 — — — 28 Total Level 3 assets $ 394 $ — $ (45 ) $ (190 ) $ 159 Liabilities Interest sensitive contract liabilities Embedded derivative $ — $ (270 ) $ — $ 79 $ (191 ) Total Level 3 liabilities $ — $ (270 ) $ — $ 79 $ (191 ) Significant Unobservable Inputs — Significant unobservable inputs occur when we could not obtain or corroborate the quantitative detail of the inputs. This applies to fixed maturity securities, equity securities, mortgage loans and certain derivatives, as well as embedded derivatives in liabilities. Additional significant unobservable inputs are described below. Fixed maturity securities – For certain fixed maturity securities, internal models are used to calculate the fair value. We use a discounted cash flow approach. The discount rate is the significant unobservable input due to the determined credit spread being internally developed, illiquid, or as a result of other adjustments made to the base rate. The base rate represents a market comparable rate for securities with similar characteristics. As of June 30, 2018 , discounts ranged from 6% to 9% , and as of December 31, 2017 , discounts ranged from 2% to 6% . This excludes assets for which significant unobservable inputs are not developed internally, primarily consisting of broker quotes. Interest sensitive contract liabilities – embedded derivative – Significant unobservable inputs we use in the fixed indexed annuities embedded derivative of the interest sensitive contract liabilities valuation include: 1. Non-performance risk – For contracts we issue, we use the credit spread, relative to the U.S. treasury curve, based on our public credit rating as of the valuation date. This represents our credit risk for use in the estimate of the fair value of embedded derivatives. 2. Option budget – We assume future hedge costs in the derivative’s fair value estimate. The level of option budgets determines the future costs of the options and impacts future policyholder account value growth. 3. Policyholder behavior – We regularly review the lapse and withdrawal assumptions (surrender rate). These are based on our initial pricing assumptions updated for actual experience. Actual experience may be limited for recently issued products. The following summarizes the unobservable inputs for the embedded derivatives of fixed indexed annuities: June 30, 2018 (In millions, except for percentages) Fair value Valuation technique Unobservable inputs Input/range of Impact of an increase in the input on fair value Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives $ 8,065 Option budget method Non-performance risk 0.4 % – 1.4% Decrease Option budget 0.8 % – 3.7% Increase Surrender rate 4.7 % – 11.0% Decrease December 31, 2017 (In millions, except for percentages) Fair value Valuation technique Unobservable inputs Input/range of Impact of an increase in the input on fair value Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives $ 7,436 Option budget method Non-performance risk 0.2 % – 1.2% Decrease Option budget 0.7 % – 3.7% Increase Surrender rate 1.5 % – 19.4% Decrease Fair Value of Financial Instruments Not Carried at Fair Value — The following represents our financial instruments not carried at fair value on the condensed consolidated balance sheets: June 30, 2018 (In millions) Carrying Value Fair Value NAV 1 Level 1 Level 2 Level 3 Financial Assets Mortgage loans $ 7,571 $ 7,713 $ — $ — $ — $ 7,713 Investment funds 507 507 507 — — — Policy loans 504 504 — — 504 — Funds withheld at interest 7,550 7,550 — — — 7,550 Other investments 73 73 — — — 73 Investments in related parties Investment funds 1,638 1,638 1,638 — — — Funds withheld at interest 14,059 14,059 — — — 14,059 Other investments 388 371 — — — 371 Total financial assets not carried at fair value $ 32,290 $ 32,415 $ 2,145 $ — $ 504 $ 29,766 Financial Liabilities Interest sensitive contract liabilities $ 46,586 $ 43,972 $ — $ — $ — $ 43,972 Short-term debt 183 183 — — 183 — Long-term debt 991 924 — — 924 — Funds withheld liability 385 385 — — 385 — Total financial liabilities not carried at fair value $ 48,145 $ 45,464 $ — $ — $ 1,492 $ 43,972 1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. December 31, 2017 (In millions) Carrying Value Fair Value NAV 1 Level 1 Level 2 Level 3 Financial Assets Mortgage loans $ 6,192 $ 6,342 $ — $ — $ — $ 6,342 Investment funds 554 554 554 — — — Policy loans 530 530 — — 530 — Funds withheld at interest 6,773 6,773 — — — 6,773 Other investments 133 133 — — 58 75 Investments in related parties Investment funds 1,280 1,280 1,280 — — — Other investments 238 259 — — — 259 Total financial assets not carried at fair value $ 15,700 $ 15,871 $ 1,834 $ — $ 588 $ 13,449 Financial Liabilities Interest sensitive contract liabilities $ 31,586 $ 31,656 $ — $ — $ — $ 31,656 Funds withheld liability 385 385 — — 385 — Total financial liabilities not carried at fair value $ 31,971 $ 32,041 $ — $ — $ 385 $ 31,656 1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. We estimate the fair value for financial instruments not carried at fair value using the same methods and assumptions as those we carry at fair value. The financial instruments presented above are reported at carrying value on the condensed consolidated balance sheets; however, in the case of policy loans, funds withheld at interest and liability, other investments and short-term debt, the carrying amount approximates fair value. Investment in related parties – Other investments – The fair value of related party other investments is determined using a discounted cash flow model using discount rates for similar investments. Interest sensitive contract liabilities – The carrying and fair value of interest sensitive contract liabilities above includes fixed indexed and traditional fixed annuities without mortality or morbidity risks, funding agreements and payout annuities without life contingencies. The embedded derivatives within fixed indexed annuities without mortality or morbidity risks are excluded, as they are carried at fair val |
Deferred Acquisition Costs, Def
Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Deferred Acquisition Costs, Deferred Sales Inducements, and Value of Business Acquired | 6. Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired The following represents a rollforward of deferred acquisition costs (DAC), deferred sales inducements (DSI) and value of business acquired (VOBA): (In millions) DAC DSI VOBA Total Balance at December 31, 2017 $ 1,354 $ 520 $ 1,056 $ 2,930 Additions 1,607 120 — 1,727 Amortization (81 ) (43 ) (100 ) (224 ) Impact of unrealized investment (gains) losses 100 42 140 282 Balance at June 30, 2018 $ 2,980 $ 639 $ 1,096 $ 4,715 (In millions) DAC DSI VOBA Total Balance at December 31, 2016 $ 1,142 $ 462 $ 1,336 $ 2,940 Additions 248 80 — 328 Amortization (98 ) (29 ) (73 ) (200 ) Impact of unrealized investment (gains) losses (65 ) (28 ) (89 ) (182 ) Balance at June 30, 2017 $ 1,227 $ 485 $ 1,174 $ 2,886 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt Senior Notes —In the first quarter of 2018, AHL issued $1 billion of unsecured senior notes due in January 2028. The senior notes have a 4.125% coupon rate, payable semi-annually. The senior notes are callable at any time prior to October 12, 2027 by AHL, at a price equal to the greater of (1) 100% of the principal and any accrued and unpaid interest and (2) an amount equal to the sum of the present values of remaining scheduled payments, discounted from the scheduled payment date to the redemption date at the Treasury Rate (as defined in the prospectus supplement relating to the senior notes, dated January 9, 2018) plus 25 basis points, and any accrued and unpaid interest. Interest expense on long-term debt was $11 million and $20 million for the three months ended June 30, 2018 and six months ended June 30, 2018 , respectively. Short-term Debt —In the second quarter of 2018, we borrowed $183 million from the Federal Home Loan Bank (FHLB) of Des Moines through their variable rate short-term federal funds program. The borrowing matures on August 24, 2018 and carries an interest rate of 2.16% , with interest due at maturity. In connection with such borrowing, the FHLB requires the borrower to purchase member stock and post sufficient collateral to secure the borrowing. To satisfy these requirements, we purchased an additional $7 million of FHLB stock; however, we were not required to post additional collateral. See Note 13 – Commitments and Contingencies for further discussion regarding existing collateral posting with the FHLB. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Reinsurance | 7. Reinsurance Reinsurance transactions —On June 1, 2018, we entered into coinsurance and modco agreements with Voya Insurance and Annuity Company (VIAC) to reinsure a block of fixed and fixed indexed annuities. VIAC is a related party pursuant to GAAP due to our minority equity investment in its holding company’s parent, VA Capital Company LLC (VA Capital), as discussed further in Note 12 – Related Parties . Additionally, we entered into modco agreements with ReliaStar Life Insurance Company (RLI), a subsidiary of Voya Financial, Inc. (Voya), to reinsure a block of fixed and fixed indexed annuities. The following summarizes these reinsurance transactions (collectively, Voya reinsurance transactions): VIAC RLI (In millions) Coinsurance Modco Modco Total Liabilities assumed $ 3,667 $ 14,911 $ 457 $ 19,035 Less: Assets received 3,478 14,332 445 18,255 Ceding commission (paid) received (86 ) (320 ) 12 (394 ) Net cost of reinsurance $ 275 $ 899 $ — $ 1,174 DAC $ 293 $ 999 $ 4 $ 1,296 Unearned revenue reserve 1 (8 ) (57 ) (4 ) (69 ) Deferred profit liability 2 (10 ) (43 ) — (53 ) Net cost of reinsurance $ 275 $ 899 $ — $ 1,174 1 Included within interest sensitive contract liabilities on the condensed consolidated balance sheets. 2 Included within future policy benefits on the condensed consolidated balance sheets. DAC and unearned revenue reserve balances are amortized over the life of the reinsurance agreements on a basis consistent with our DAC amortization policy. The deferred profit liability balance is amortized over the life of the reinsurance agreement on a constant relationship to the benefit reserves. The following summarizes the effect of reinsurance on premiums and future policy and other policy benefits on the consolidated statements of income: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Premiums Direct $ 114 $ 423 $ 432 $ 528 Reinsurance assumed 651 7 656 12 Reinsurance ceded (39 ) (51 ) (84 ) (109 ) Total premiums $ 726 $ 379 $ 1,004 $ 431 Future policy and other policy benefits Direct $ 284 $ 658 $ 736 $ 999 Reinsurance assumed 655 15 664 23 Reinsurance ceded (82 ) (95 ) (142 ) (230 ) Total future policy and other policy benefits $ 857 $ 578 $ 1,258 $ 792 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 9. Earnings Per Share The following represents our basic and diluted earnings per share (EPS) calculations: Three months ended June 30, 2018 (In millions, except share and per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic and diluted $ 220 $ 34 $ 5 $ 1 $ 1 $ 3 Basic weighted average shares outstanding 164,458,153 25,483,236 3,388,890 844,449 1,003,528 2,121,647 Dilutive effect of stock compensation plans 369,955 — — 6,307 — 594,331 Diluted weighted average shares outstanding 164,828,108 25,483,236 3,388,890 850,756 1,003,528 2,715,978 Earnings per share 1 Basic $ 1.34 $ 1.34 $ 1.34 $ 1.34 $ 1.34 $ 1.34 Diluted $ 1.33 $ 1.34 $ 1.34 $ 1.33 $ 1.34 $ 1.04 1 Calculated using whole figures. Three months ended June 30, 2017 (In millions, except share and per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic $ 177 $ 138 $ 6 $ 2 $ 1 $ 2 Effect of stock compensation plans on allocated net income 4 — — — — — Net income – diluted $ 181 $ 138 $ 6 $ 2 $ 1 $ 2 Basic weighted average shares outstanding 106,299,230 82,927,000 3,409,515 905,105 740,883 1,438,871 Dilutive effect of stock compensation plans 2,706,762 — — 15,000 491,292 1,718,314 Diluted weighted average shares outstanding 109,005,992 82,927,000 3,409,515 920,105 1,232,175 3,157,185 Earnings per share 1 Basic $ 1.66 $ 1.66 $ 1.66 $ 1.66 $ 1.66 $ 1.66 Diluted $ 1.65 $ 1.66 $ 1.66 $ 1.64 $ 1.00 $ 0.76 1 Calculated using whole figures. Six months ended June 30, 2018 (In millions, except share and per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic and diluted $ 422 $ 90 $ 9 $ 2 $ 3 $ 6 Basic weighted average shares outstanding 156,619,575 33,246,955 3,388,890 842,739 1,026,216 2,093,581 Dilutive effect of stock compensation plans 381,446 — — 7,642 10,286 761,780 Diluted weighted average shares outstanding 157,001,021 33,246,955 3,388,890 850,381 1,036,502 2,855,361 Earnings per share 1 Basic $ 2.70 $ 2.70 $ 2.70 $ 2.70 $ 2.70 $ 2.70 Diluted $ 2.69 $ 2.70 $ 2.70 $ 2.67 $ 2.67 $ 1.98 1 Calculated using whole figures. Six months ended June 30, 2017 (In millions, except share and per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic $ 337 $ 354 $ 13 $ 2 $ 1 $ 3 Effect of stock compensation plans on allocated net income 6 — — — — — Net income – diluted $ 343 $ 354 $ 13 $ 2 $ 1 $ 3 Basic weighted average shares outstanding 92,350,216 96,772,641 3,430,840 476,070 372,488 723,410 Dilutive effect of stock compensation plans 3,242,336 — — 493,213 884,760 1,971,060 Diluted weighted average shares outstanding 95,592,552 96,772,641 3,430,840 969,283 1,257,248 2,694,470 Earnings per share 1 Basic $ 3.66 $ 3.66 $ 3.66 $ 3.66 $ 3.66 $ 3.66 Diluted $ 3.59 $ 3.66 $ 3.66 $ 1.80 $ 1.08 $ 0.98 1 Calculated using whole figures. We use the two-class method for allocating net income to each class of our common stock. Our Class M shares did not become eligible to participate in dividends until a return of investment (ROI) condition had been met for each class. Once eligible, each class of our common stock has equal dividend rights. The ROI condition was met for Class M-2 on March 28, 2017, and for Class M-3 and Class M-4 on April 20, 2017. For purposes of calculating basic weighted average shares outstanding and the allocation of basic income, shares are deemed to be participating in earnings for only the portion of the period after the condition is met. For purposes of calculating diluted weighted average shares outstanding, shares are deemed dilutive as of the beginning of the period. Dilutive shares are calculated using the treasury stock method. For Class A shares, this method takes into account shares that can be settled into Class A shares, net of a conversion price. The diluted EPS calculations for Class A shares excluded the following shares, restricted stock units (RSUs) and options: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Antidilutive shares, RSUs and options excluded from diluted EPS calculation 35,078,635 74,650,807 35,078,635 73,792,976 Shares, RSUs and options excluded from diluted EPS calculation as a performance condition had not been met 280,030 1,448,998 280,030 1,448,998 Total shares, RSUs and options excluded from diluted EPS calculation 35,358,665 76,099,805 35,358,665 75,241,974 Note: Shares, RSUs and options are as of period end. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 10. Accumulated Other Comprehensive Income The following is a detail of AOCI and changes in AOCI. Prior period balances include equity securities that were classified as AFS securities prior to the adoption of ASU 2016-01. (In millions) June 30, 2018 December 31, 2017 AFS securities $ 328 $ 2,577 DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustments on AFS securities (116 ) (744 ) Noncredit component of OTTI losses on AFS securities (13 ) (13 ) Hedging instruments (50 ) (95 ) Pension adjustments (2 ) (5 ) Foreign currency translation adjustments (2 ) 8 Accumulated other comprehensive income, before taxes 145 1,728 Deferred income taxes (19 ) (313 ) Accumulated other comprehensive income $ 126 $ 1,415 Changes in AOCI are presented below: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Unrealized investment gains (losses) on AFS securities Unrealized investment gains (losses) on AFS securities $ (889 ) $ 735 $ (2,171 ) $ 1,251 Change in DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustment 233 (141 ) 624 (223 ) Less: Reclassification adjustment for gains (losses) realized in net income 1 11 12 30 27 Less: Income tax expense (benefit) (138 ) 179 (301 ) 292 Net unrealized investment gains (losses) on AFS securities (529 ) 403 (1,276 ) 709 Noncredit component of OTTI losses on AFS securities Noncredit component of OTTI losses on AFS securities 1 1 — 2 Less: Reclassification adjustment for losses realized in net income 1 1 2 — 2 Net noncredit component of OTTI losses on AFS securities — (1 ) — — Unrealized gains (losses) on hedging instruments Unrealized gains (losses) on hedging instruments 101 (33 ) 45 (38 ) Less: Income tax expense (benefit) 29 (11 ) 9 (13 ) Net unrealized gains (losses) on hedging instruments 72 (22 ) 36 (25 ) Pension adjustments — (1 ) 3 (1 ) Foreign currency translation adjustments (2 ) 8 (10 ) 10 Change in AOCI from other comprehensive income (loss) (459 ) 387 (1,247 ) 693 Adoption of ASU 2016-01 — — (42 ) — Change in AOCI $ (459 ) $ 387 $ (1,289 ) $ 693 1 Recognized in investment related gains (losses) on the condensed consolidated statements of income. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes Our effective tax rates were 20% and 3% for the three months ended June 30, 2018 and 2017 , respectively, and 19% and 4% for the six months ended June 30, 2018 and 2017 , respectively. Our effective tax rates may vary period to period depending upon the relationship of income and loss subject to tax compared to consolidated income and loss before income taxes. With the enactment of Public Law no. 115-97, an Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 (Tax Act), the U.S. statutory tax rate declined to 21% from 35%; however, the Base Erosion and Anti-Abuse Tax (BEAT) was established, which may subject payments to our non-U.S. reinsurance subsidiaries to a tax of 5%, which would increase to 10% in 2019. The income tax expense for the three and six months ended June 30, 2018 assumes that we have taken steps so that the BEAT is not applicable to such payments and thereby assumes that more income is subject to U.S. income tax. The Internal Revenue Service is currently auditing the 2013 consolidated tax return filed by Athene USA, and is also conducting a limited scope audit of the 2015 consolidated tax return filed by Athene Annuity & Life Assurance Company (AADE). No material proposed adjustments have been issued with respect to either exam. See discussion of ongoing tax examinations relating to Aviva USA Corporation (Aviva USA) in Note 13 – Commitments and Contingencies . Under current Bermuda law, we are not required to pay any taxes in Bermuda on either income or capital gains. We have received an undertaking from the Bermuda Minister of Finance that, in the event of any such taxes being imposed, we will be exempted from taxation until the year 2035. |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | 12. Related Parties Athene Asset Management Investment related expenses – Substantially all of our investments are managed by Athene Asset Management LLC (AAM), a subsidiary of AGM. AAM provides direct investment management, asset allocation, mergers and acquisition asset diligence and certain operational support services for our investment portfolio, including investment compliance, tax, legal and risk management support. As of June 30, 2018 , AAM directly managed $81,750 million of our investment portfolio assets, of which 86% are designated one or two (the two highest designations) by the National Association of Insurance Commissioners (NAIC). For the services it renders, AAM earns a fee on all assets managed in accounts owned by or related to us, including sub-advised assets, subject to certain limited exceptions. Additionally, AAM recharges the sub-advisory fees it incurs with respect to our sub-advised assets to us. Historically, AAM generally earned an annual fee of 0.40% of assets under management. In the second quarter of 2017, following shareholder approval of an amendment to our bye-laws, we entered into the Fifth Amended and Restated Fee Agreement (Revised Fee Agreement), retroactive to January 1, 2017. The Revised Fee Agreement amended certain fee arrangements we previously had in place with AAM to provide for, among other things, an annual fee of 0.30% (reduced from 0.40% ) on all assets that Apollo manages in accounts owned by us in the U.S. and Bermuda or in accounts supporting reinsurance ceded to our U.S. and Bermuda subsidiaries by third-party insurers (North American Accounts) in excess of $65,846 million (the level of assets in the North American Accounts as of December 31, 2016). The fee to be paid by us to AAM on the first $65,846 million of assets in the North American Accounts remains 0.40% per year, subject to certain discounts and exceptions. For certain assets which require specialized sourcing and underwriting capabilities, AAM has chosen to mandate sub-advisors rather than building out in-house capabilities. AAM has entered into Master Sub-Advisory Agreements (MSAAs) with certain Apollo affiliates to sub-advise AAM with respect to a portion of our assets, with the fees recharged to us, in addition to the gross fee paid to AAM as described above. The MSAAs cover services rendered by Apollo-affiliated sub-advisors relating to the following investments: (In millions, except for percentages) June 30, 2018 December 31, 2017 Fixed maturity securities AFS securities Foreign governments $ 151 $ 152 Corporate 3,226 2,934 CLO 5,630 5,166 ABS 613 681 CMBS 878 872 Trading securities 115 121 Mortgage loans 2,701 2,232 Investment funds 27 26 Funds withheld at interest 1,831 1,737 Other investments 73 75 Total assets sub-advised by Apollo affiliates $ 15,245 $ 13,996 Percent of assets sub-advised by Apollo affiliates to total AAM-managed assets 16 % 18 % During the second quarter of 2017, AAM and certain other Apollo affiliates entered into addendums to the MSAAs currently in effect, pursuant to which, with limited exceptions, Apollo will earn 0.40% per year on all assets in the North American Accounts explicitly sub-advised by Apollo up to $10,000 million , 0.35% per year on all assets in such accounts explicitly sub-advised by Apollo in excess of $10,000 million up to $12,441 million (the level of fee-paying sub-advised assets in the North American Accounts at December 31, 2016), 0.40% per year on all assets in such accounts explicitly sub-advised by Apollo in excess of $12,441 million up to $16,000 million , and 0.35% per year on all assets in such accounts explicitly sub-advised by Apollo in excess of $16,000 million . The addendums were retroactive to January 1, 2017. The following summarizes the asset management fees and sub-advisory fees we have incurred related to AAM and other Apollo affiliates: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Asset management fees $ 72 $ 64 $ 142 $ 126 Sub-advisory fees 14 12 27 28 The management and sub-advisory fees are included within net investment income on the condensed consolidated statements of income. As of June 30, 2018 and December 31, 2017 , the management fees payable was $33 million and $28 million , respectively, and the sub-advisory fees payable was $15 million and $13 million , respectively. Both the management and sub-advisory fees payables are included in other liabilities on the condensed consolidated balance sheets. The investment management agreements with AAM have no stated term and any party can terminate upon notice. However, our bye-laws provide that we will not exercise our termination rights under the agreements until October 31, 2018 or any annual anniversary thereafter (each such date, an IMA (Investment Management Agreement) Termination Election Date) and any termination thereon requires the approval of two-thirds of our Independent Directors (as defined in the bye-laws) and prior written notice thereof to Apollo of at least 30 days. If the Independent Directors make such election and such notice is timely delivered, the termination will be effective on the second anniversary of the applicable IMA Termination Election Date (an IMA Termination Effective Date). Notwithstanding the foregoing, (1) the Independent Directors may only elect to terminate an investment management agreement or advisory agreement on an IMA Termination Election Date if two-thirds of the Independent Directors determine in their sole discretion acting in good faith that either (i) there has been unsatisfactory long-term performance materially detrimental to us by Apollo or (ii) the fees being charged by Apollo are unfair and excessive compared to a comparable asset manager (provided, that in either case such Independent Directors must deliver notice of any such determination to Apollo and Apollo shall have until the applicable IMA Termination Effective Date to address such concerns, and provided, further, that in the case of such a determination that the fees being charged by Apollo are unfair and excessive, Apollo has the right to lower its fees to match the fees of such comparable asset manager) and (2) upon the determination by two-thirds of the Independent Directors, we may also terminate an investment management agreement or advisory agreement with Apollo as a result of either (i) a material violation of law relating to Apollo’s advisory business, or (ii) Apollo’s gross negligence, willful misconduct or reckless disregard of its obligations under the relevant agreement, and in either case (i) or (ii), the delivery at least 30 days’ prior written notice to Apollo of such termination and such termination will be effective at the end of such 30-day period. We have a management investment committee, which includes members of our senior management and reports to the risk committee of our board of directors. The committee focuses on strategic decisions involving our investment portfolio, such as approving investment limits, new asset classes and our allocation strategy, reviewing large asset transactions, as well as monitoring our credit risk, and the management of our assets and liabilities. A significant voting interest in the Company is held by shareholders who are members of the Apollo Group, as defined in our bye-laws. Also, James Belardi, our Chief Executive Officer, is also an employee of AAM, receives substantial remuneration from acting as Chief Executive Officer of AAM, and owns a 5% profits interest in AAM. Additionally, five of the thirteen members of our board of directors are employees of or consultants to Apollo (including Mr. Belardi). In order to protect against potential conflicts of interest resulting from transactions into which we have entered and will continue to enter into with the Apollo Group, our bye-laws require us to maintain a conflicts committee comprised solely of three of our directors who are not officers or employees of any member of the Apollo Group. The conflicts committee reviews and approves material transactions between us and the Apollo Group, subject to certain exceptions. Other related party transactions A-A Mortgage – We have an equity method investment in A-A Mortgage, which has an investment in AmeriHome Mortgage Company, LLC (AmeriHome). We have a loan purchase agreement with AmeriHome. The agreement allows us to purchase residential mortgage loans which they have purchased from correspondent sellers and pooled for sale in the secondary market. AmeriHome retains the servicing rights to the sold loans. We purchased $167 million and $0 million of residential mortgage loans under this agreement during the three months ended June 30, 2018 and 2017 , respectively. We purchased $211 million and $1 million of residential mortgage loans under this agreement during the six months ended June 30, 2018 and 2017 , respectively. Additionally, we have made loans to A-A Mortgage affiliates in the principal amount of $172 million and $52 million as of June 30, 2018 and December 31, 2017 , respectively, and these are included in related party short-term investments on the condensed consolidated balance sheets. Athora – On January 1, 2018, in order to align our interests with those of Athora, in connection with the Closing, we entered into a cooperation agreement with Athora, pursuant to which, among other things, (1) we will have the right to reinsure approximately 20% of the spread business written or reinsured by any insurance or reinsurance company owned or acquired by Athora, (2) Athora’s insurance subsidiaries will be required to purchase certain funding agreements and/or other spread instruments issued by our insurance subsidiaries, (3) we will provide Athora with a right of first refusal to pursue acquisition and reinsurance transactions in Europe (other than the United Kingdom) and (4) Athora will provide us and our subsidiaries with a right of first refusal to pursue acquisition and reinsurance transactions in North America and the United Kingdom. Additionally, as of June 30, 2018 , we had $170 million of funding agreements outstanding to Athora, which were issued to Athora prior to Closing . VA Capital and Venerable Holdings, Inc. (Venerable) – In connection with the Voya reinsurance transactions, we made a $75 million minority equity investment in VA Capital, which is included in investments in related parties – investment funds on the condensed consolidated balance sheets and accounted for as an equity method investment. VA Capital is owned by a consortium of investors, led by affiliates of AGM, Crestview Partners and Reverence Capital Partners, and is the holding company of Venerable. Additionally, we provided Venerable with a $150 million , 15-year term loan, which is held at amortized cost and included in investment in related parties – other investments on the condensed consolidated balance sheets. It has a stated interest rate 6.257% , which represents a below-market interest rate and management considered it as part of its evaluation and pricing of the Voya reinsurance transactions. Venerable is the holding company of VIAC. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Contingent Commitments —We had commitments to make investments, primarily capital contributions to investment funds, of $3,036 million a nd $2,358 million as of June 30, 2018 and December 31, 2017 , respectively. We expect most of our current commitments will be invested over the next five years; however, these commitments could become due any time upon counterparty request. Funding Agreements —We are a member of the FHLB and, through membership, we have issued funding agreements to the FHLB in exchange for cash advances. As of June 30, 2018 and December 31, 2017 , we had $701 million and $573 million , respectively, of funding agreements outstanding with the FHLB. We are required to provide collateral in excess of the funding agreement amounts outstanding, considering any discounts to the securities posted and prepayment penalties. We have a funding agreement backed notes (FABN) program, which allows Athene Global Funding, a special-purpose, unaffiliated statutory trust to offer up to $10 billion of its senior secured medium-term notes. Athene Global Funding uses the net proceeds from each sale to purchase one or more funding agreements from us. Funding agreements outstanding under this program had a carrying value of $2,996 million as of June 30, 2018 and December 31, 2017 . Pledged Assets and Funds in Trust (Restricted Assets)— The total restricted assets included on the condensed consolidated balance sheets are as follows: (In millions) June 30, 2018 December 31, 2017 Fixed maturity securities AFS securities $ 4,452 $ 1,572 Trading securities 52 — Equity securities 3 36 Mortgage loans 943 914 Investment funds 29 20 Short-term investments 73 10 Other investments 45 — Restricted cash 178 105 Total restricted assets $ 5,775 $ 2,657 The restricted assets are primarily related to reinsurance trusts established in accordance with coinsurance agreements, and the FHLB funding agreements described above. Litigation, Claims and Assessments Griffiths Matter – On July 27, 2015, John Griffiths, on behalf of himself and others similarly situated, filed a putative class action complaint against us in the United States District Court for the District of Massachusetts. An amended complaint was filed on December 18, 2015. The complaint asserts claims against AHL, Athene Annuity and Life Company (AAIA), and Athene London Assignment Corporation (Athene London), in addition to an Aviva defendant. AHL is a named defendant due to its purchase of Aviva USA, and AAIA and Athene London are named as successors to Aviva Life Insurance Company and Aviva London Assignment Corporation, respectively. The complaint alleges a putative class of all persons who are the beneficial owners of assets which were used to purchase structured settlement annuities that Aviva Life Insurance Company, Aviva London Assignment Corporation, and Aviva International Insurance Limited (collectively, the Aviva Entities) or their predecessors, as applicable, delivered to purchasers on or after April 1, 2003 that were backed by a capital maintenance agreement issued by Aviva International Insurance Limited or its predecessor (the CMA). The complaint alleges that the Aviva Entities sold structured settlement annuities to the public on the basis that such products were backed by the CMA, which was alleged to be a source of great financial strength. The complaint further alleges that the Aviva Entities used the CMA to enhance the sales volume and raise the price of the annuities. The complaint claims that, as a result of Aviva USA’s sale to AHL, the CMA terminated. According to the complaint, no notice of this termination was provided to the owners of the structured settlement annuities. The complaint alleges that the termination of the CMA gave rise to claims for breach of contract, breach of fiduciary duty, promissory estoppel, and unjust enrichment. AHL and plaintiff recently agreed to a term sheet settlement on a class wide basis. Terms of the settlement, which have been preliminarily approved by the court, include: (1) AHL entering into a capital maintenance agreement with Athene London requiring AHL to provide capital to Athene London upon a missed structured settlement payment that is not timely cured and (2) AHL paying a monetary amount that is immaterial to us. The preliminary approval hearing is set for October 13, 2018. Internal Revenue Service (IRS) Matters – The IRS completed its examinations of the 2006 through 2010 Aviva USA tax years with Aviva USA agreeing to all proposed adjustments with two exceptions: (1) AAIA’s treatment of call options used to hedge fixed indexed annuity (FIA) liabilities for the tax years 2008–2010 and (2) the disallowance of offsetting tax deductions taken by AAIA and taxable income reported by the non-life subgroup with respect to unpaid independent marketing organization commissions. The first adjustment to which Aviva USA did not agree would disallow deductions of $191 million , $154 million and $76 million for 2008, 2009 and 2010, respectively. The second adjustment to which Aviva USA did not agree would increase non-life net operating losses and decrease AAIA net operating losses by $16 million in each of 2009 and 2010. Taxes, penalties and interest with respect to these two issues for the years under audit are subject to indemnification by Aviva plc under the Stock Purchase Agreement (SPA) between Aviva plc and AHL, dated December 21, 2012 assuming the SPA requirements are satisfied. Athene USA was unable to negotiate a favorable settlement of this issue with the IRS, and is contesting the adjustment in federal court. If the IRS position is upheld in federal court, Athene USA expects that it would owe tax of $120 million , plus interest, for tax years ending on or before October 2, 2013, which are subject to indemnification by Aviva plc as described above. The IRS also recently completed its examination of the 2011 through 2012 Aviva USA tax years, proposing adjustments that would increase taxable income by approximately $16 million in the aggregate for these two tax years. Athene USA agreed to all adjustments that were proposed with respect to those tax years except for adjustments relating to the same two issues that were not agreed to during the prior examination as discussed above. The first adjustment to which Athene USA did not agree would disallow deductions of $16 million in 2011 and increase deductions by $12 million in 2012. The second adjustment to which Athene USA did not agree would increase non-life net operating losses and decrease AAIA net operating losses by $15 million in 2011 and $12 million in 2012. Taxes, penalties and interest with respect to these two tax years are subject to indemnification by Aviva plc under the SPA, assuming the SPA requirements are satisfied. The treatment of FIA hedges is a recurring issue as to the timing of the related deductions and could affect the current income tax incurred in periods after October 2, 2013, which are not subject to indemnification by Aviva plc. Given that the disallowance of a deduction in one period results in an increased deduction in a future period, we do not expect that there will be any material impact to our financial condition resulting from this issue. Corporate-owned Life Insurance (COLI) Matter – In 2000 and 2001, two insurance companies which were subsequently merged into AAIA purchased from American General Life Insurance Company (American General) broad based variable COLI policies that, as of June 30, 2018 , had an asset value of $359 million , and is included in other assets on the condensed consolidated balance sheets. In January 2012, the COLI policy administrator delivered to AAIA a supplement to the existing COLI policies and advised that American General and ZC Resource Investment Trust (ZC Trust) had unilaterally implemented changes set forth in the supplement that if effective, would: (1) potentially negatively impact the crediting rate for the policies and (2) change the exit and surrender protocols set forth in the policies. In March 2013, AAIA filed suit against American General, ZC Trust, and ZC Resource LLC in Chancery Court in Delaware, seeking, among other relief, a declaration that the changes set forth in the supplement were ineffectual and in breach of the parties’ agreement. The parties filed cross motions for judgment as a matter of law, and the court granted defendants’ motion and dismissed without prejudice on ripeness grounds. The issue that negatively impacts the crediting rate for one of the COLI policies has subsequently been triggered and on April 3, 2018, we filed suit against the same defendants in Chancery Court in Delaware seeking substantially similar relief, which the defendants have moved to dismiss. If the supplement is ultimately deemed to be effective, the purported changes to the policies could impair AAIA’s ability to access the value of guarantees associated with the policies. The value of the guarantees included within the asset value reflected above is $174 million as of June 30, 2018 . Holzer Matter – On September 12, 2016, Jack Holzer and Mary Bruesh-Holzer filed suit in Jackson County, Missouri against several defendants, including AADE, as successor-in-interest to Business Men’s Assurance Company of America. Mr. Holzer allegedly sustained injuries due to asbestos exposure from 1966–1973 while working in an office building in Kansas City, Missouri, then owned by Business Men’s Assurance Company of America. Plaintiffs asserted strict liability and negligence claims against AADE. On February 26, 2018, an agreement was reached that resulted in the settlement of this matter. The settlement had no impact on our financial condition, results of operations or cash flows. Regulatory Matter – Our U.S. insurance subsidiaries have experienced increased service and administration complaints related to the conversion and administration of the block of life insurance business acquired in connection with our acquisition of Aviva USA and reinsured to affiliates of Global Atlantic. The life insurance policies included in this block have been and are currently being administered by AllianceOne Inc. (AllianceOne), a subsidiary of DXC Technology Company, which was retained by such Global Atlantic affiliates to provide services on such policies. AllianceOne also administers certain annuity policies that were on Aviva USA’s legacy policy administration systems that were also converted in connection with the acquisition of Aviva USA and have experienced similar service and administration issues. As a result of the difficulties experienced with respect to the administration of such policies, we have received notifications from several state regulators, including but not limited to the New York State Department of Financial Services (NYSDFS), the California Department of Insurance (CDI) and the Texas Department of Insurance, indicating, in each case, that the respective regulator planned to undertake a market conduct examination or enforcement proceeding of the applicable U.S. insurance subsidiary relating to the treatment of policyholders subject to our reinsurance agreements with affiliates of Global Atlantic and the conversion of such annuity policies, including the administration of such blocks by AllianceOne. On June 28, 2018 we entered into a consent order with the NYSDFS resolving that matter in a manner that, when considering the indemnification received from affiliates of Global Atlantic, did not have a material impact on our financial condition, results of operations or cash flows. In addition to the foregoing, we have received inquiries, and expect to continue to receive inquiries, from other regulatory authorities regarding the conversion matter. In addition to the examinations and proceedings initiated to date, it is possible that other regulators may pursue similar formal examinations, inquiries or enforcement proceedings and that any examinations, inquiries and/or enforcement proceedings may result in fines, administrative penalties and payments to policyholders. While we do not expect the amount of any such fines, penalties or payments arising from these matters to be material to our financial condition, results of operations or cash flows, it is possible that such amounts could be material. Pursuant to the terms of the reinsurance agreements between us and the relevant affiliates of Global Atlantic, the applicable affiliates of Global Atlantic have financial responsibility for the ceded life block and are subject to significant administrative service requirements, including compliance with applicable law. The agreements also provide for indemnification to us, including for administration issues. Caldera Matters – On May 3, 2018, AHL filed a writ commencing litigation in the Supreme Court of Bermuda against a former officer of AHL, a former director of AHL (who is also considered a former officer pursuant to Bermuda law), and Caldera Holdings, Ltd. (Caldera). AHL alleges in the writ, among other things, that the defendants breached various duties owed to AHL under Bermuda law by using AHL’s confidential information in their attempted acquisition of a company referred to in the litigation as Company A. AHL is seeking injunctive relief and damages. On May 3, 2018, following AHL’s filing of the writ in Bermuda described above, Caldera, Caldera Life Reinsurance Company, and Caldera Shareholder, L.P., commenced an action in the Supreme Court of the State of New York, County of New York, by filing a Summons with Notice against AHL, Apollo, certain affiliates of Apollo and Leon Black, a founder of Apollo. On July 12, 2018, plaintiffs filed a complaint alleging claims for tortious interference with prospective business relations, defamation, and unfair competition related to plaintiffs’ attempt to purchase Company A and seeking alleged damages of “no less than $1.5 billion .” AHL intends to, among other things, move to dismiss the complaint against it. We believe we have meritorious defenses to the claims and intend to vigorously defend the litigation. In light of the inherent uncertainties involved in this matter, reasonably possible losses, if any, cannot be estimated at this time. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 14. Segment Information We operate our core business strategies out of one reportable segment, Retirement Services . In addition to Retirement Services , we report certain other operations in Corporate and Other. Retirement Services — Retirement Services is comprised of our United States and Bermuda operations, which issue and reinsure retirement savings products and institutional products. Retirement Services has retail operations, which provide annuity retirement solutions to our policyholders. Retirement Services also has reinsurance operations, which reinsure multi-year guaranteed annuities, fixed indexed annuities, traditional one-year guarantee fixed deferred annuities, immediate annuities and institutional products from our reinsurance partners. In addition, our institutional operations, including funding agreements and pension risk transfer (PRT) obligations, are included in our Retirement Services segment. Corporate and Other — Corporate and Other includes certain other operations related to our corporate activities, including corporate allocated expenses, merger and acquisition costs, debt costs, certain integration and restructuring costs, certain stock-based compensation and intersegment eliminations. In Corporate and Other, we also hold capital in excess of the level of capital we hold in Retirement Services to support our operating strategy. Prior to the deconsolidation of Athora on January 1, 2018, Corporate and Other included our German operations, which were primarily comprised of participating long-duration savings products. See Note 1 – Business, Basis of Presentation and Significant Accounting Policies for discussion on the deconsolidation of our German operations in 2018. Financial Measures —Segment adjusted operating income is an internal measure used by the chief operating decision maker to evaluate and assess the results of our segments. Adjusted operating revenue is a component of adjusted operating income and excludes market volatility and adjustments for other non-operating activity. Our operating revenue equals our total revenue, adjusted to eliminate the impact of the following non-operating adjustments: • Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets; • Investment gains (losses), net of offsets; • VIE expenses and noncontrolling interest; and • Other adjustments to revenues. The table below reconciles segment adjusted operating revenues to total revenues presented on the condensed consolidated statements of income: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Retirement Services $ 1,868 $ 1,254 $ 3,125 $ 2,142 Corporate and Other 26 103 53 171 Non-operating adjustments Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets 97 266 (61 ) 802 Investment gains (losses), net of offsets (149 ) 138 (255 ) 263 VIE expenses and noncontrolling interest 2 — 2 — Other adjustments to revenues (47 ) 2 (56 ) 4 Total revenues $ 1,797 $ 1,763 $ 2,808 $ 3,382 Adjusted operating income is an internal measure used to evaluate our financial performance excluding market volatility and expenses related to integration, restructuring, stock compensation and certain other expenses. Our adjusted operating income equals net income adjusted to eliminate the impact of the following non-operating adjustments: • Investment gains (losses), net of offsets; • Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets; • Integration, restructuring and other non-operating expenses; • Stock-based compensation, excluding the long-term incentive plan (LTIP); and • Income tax (expense) benefit – non-operating. The table below reconciles segment adjusted operating income to net income on the condensed consolidated statements of income: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Retirement Services $ 289 $ 267 $ 524 $ 542 Corporate and Other 1 13 3 4 Non-operating adjustments Investment gains (losses), net of offsets (74 ) 58 (107 ) 115 Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets 75 15 170 109 Integration, restructuring and other non-operating expenses (8 ) (11 ) (16 ) (20 ) Stock-based compensation, excluding LTIP (2 ) (13 ) (5 ) (23 ) Income tax (expense) benefit – non-operating (17 ) (3 ) (37 ) (17 ) Net income $ 264 $ 326 $ 532 $ 710 The following represents total assets by segment: (In millions) June 30, 2018 December 31, 2017 Total assets by segment Retirement Services $ 111,512 $ 91,335 Corporate and Other 3,243 8,412 Total assets $ 114,755 $ 99,747 |
Business, Basis of Presentati24
Business, Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation —We have prepared the accompanying condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the United States Securities and Exchange Commission’s rules and regulations for Form 10-Q and Article 10 of Regulation S-X. The accompanying condensed consolidated financial statements are unaudited and reflect all adjustments, consisting only of normal recurring items, considered necessary for fair statement of the periods presented. All significant intercompany accounts and transactions have been eliminated. Interim operating results are not necessarily indicative of the results expected for the entire year. The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited financial statements, but does not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017. |
Use of Estimates | The preparation of financial statements requires the use of management estimates. Actual results may differ from estimates used in preparing the condensed consolidated financial statements. |
Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Adopted Accounting Pronouncements Revenue Recognition (ASU 2017-13, ASU 2016-20, ASU 2016-12, ASU 2016-11, ASU 2016-10, ASU 2016-08, ASU 2015-14 and ASU 2014-09) These updates are based on the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. These updates replace all general and most industry-specific revenue recognition guidance, excluding insurance contracts, leases, financial instruments and guarantees, which have been scoped out of these updates. Since the guidance does not apply to revenue on contracts accounted for under the financial instruments or insurance contracts standards, only a portion of our revenues are impacted by this guidance. We adopted these updates on a modified retrospective basis effective January 1, 2018. The adoptions did not have a material effect on our consolidated financial statements. Derivatives and Hedging – Targeted Improvements (ASU 2017-12) The amendments in this update contain improvements to the financial reporting of hedging relationships that more closely reflect the economic results of an entity’s risk management activities in its financial statements. Additionally, the amendments in this update make certain targeted improvements to simplify the application of hedge accounting. We early adopted this update effective January 1, 2018, and the adoption did not have a material effect on our consolidated financial statements. Gains and Losses from the Derecognition of Nonfinancial Assets (ASU 2017-05) The amendments in this update clarify the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets. We adopted this update on a modified retrospective basis effective January 1, 2018. The adoption did not have a material effect on our consolidated financial statements. Statement of Cash Flows – Restricted Cash (ASU 2016-18) This update requires amounts generally described as restricted cash or restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the consolidated statements of cash flows. We adopted this update effective January 1, 2018, and have changed the presentation on the consolidated statements of cash flows as required by this update. Income Taxes – Intra-Entity Transfers (ASU 2016-16) This update requires the immediate recognition of current and deferred income tax effects of intra-entity transfers of assets, other than inventory. Prior to adoption, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. We adopted this update effective January 1, 2018. Upon adoption, we recognized a cumulative-effect decrease to beginning retained earnings of $3 million . Statement of Cash Flows (ASU 2016-15) This update provides specific guidance to clarify how entities should classify certain cash receipts and cash payments on the statement of cash flows. The update also clarifies the application of the predominance principle when cash receipts and cash payments have aspects of more than one class of cash flows. We adopted this update effective January 1, 2018, and the adoption did not have a material effect on our consolidated financial statements. Financial Instruments – Recognition and Measurement (ASU 2016-01) This update changes the accounting for certain equity investments, the presentation of changes in the fair value of liabilities measured under the fair value option due to instrument-specific credit risk, and certain disclosures. For liabilities measured under the fair value option, changes in fair value attributable to instrument-specific credit risk will no longer affect net income, but will be recognized separately in other comprehensive income (OCI). Additionally, this update requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. Prior to the effective date of this update, changes in fair value related to available-for-sale (AFS) equity securities were recognized in OCI. We adopted this update effective January 1, 2018. Upon adoption, we recognized a cumulative-effect increase to beginning retained earnings of $42 million and a corresponding decrease to accumulated other comprehensive income (AOCI). Additionally, we combined the presentation of AFS and trading equity securities on the consolidated balance sheets for all periods presented. Recently Issued Accounting Pronouncements Stock Compensation – Nonemployee Share-Based Payments (ASU 2018-07) The amendments in this update simplify the accounting for share-based payments to nonemployees by aligning with the accounting for share-based payments to employees, with certain exceptions. We will be required to adopt this update on a modified retrospective basis effective January 1, 2019. Early adoption is permitted. We do not expect the adoption of this update will have a material effect on our consolidated financial statements. Leases (ASU 2018-11, ASU 2018-10, ASU 2018-01, ASU 2017-13 and ASU 2016-02) These updates are intended to increase transparency and comparability for lease transactions. ASU 2016-02, among other things, requires a lessee to recognize an asset and a liability for all lease arrangements longer than 12 months. Lessor accounting is largely unchanged. ASU 2016-02 required the adoption of this standard on a modified retrospective basis. However, with the issuance of ASU 2018-11, we are allowed the option to recognize the cumulative effect of applying the new standard as an adjustment to the opening balance of retained earnings in the year of adoption, while continuing to present all prior periods under the previous lease guidance. The standard is effective January 1, 2019 and early adoption is permitted. We have reviewed our existing lease contracts and our implementation efforts are primarily focused on assessing the financial impact of these updates on our consolidated financial statements. Intangibles – Simplifying the Test for Goodwill Impairment (ASU 2017-04) The amendments in this update simplify the subsequent measurement of goodwill by eliminating the comparison of the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill to determine the goodwill impairment loss. With the adoption of this guidance, a goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of the goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. We will be required to adopt this update prospectively effective January 1, 2020. Early adoption is permitted. We do not expect the adoption of this update will have a material effect on our consolidated financial statements. Financial Instruments – Credit Losses (ASU 2016-13) This update is designed to reduce complexity by limiting the number of credit impairment models used for different assets. The model will result in accelerated credit loss recognition on assets held at amortized cost, which includes our commercial and residential mortgage investments. The identification of credit-deteriorated securities will include all assets that have experienced a more-than-insignificant deterioration in credit since origination. Additionally, any changes in the expected cash flows of credit-deteriorated securities will be recognized immediately in the income statement. AFS fixed maturity securities are not in scope of the new credit loss model, but will undergo targeted improvements to the current reporting model including the establishment of a valuation allowance for credit losses versus the current direct write down approach. We will be required to adopt this update effective January 1, 2020. Early adoption is permitted effective January 1, 2019. We are currently evaluating the impact of this guidance on our consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments Schedule [Abstract] | |
Available-for-sale Securities | The following table represents the amortized cost, gross unrealized gains and losses, fair value and other-than-temporary impairments (OTTI) in AOCI of our AFS investments by asset type. Our AFS investment portfolio includes direct investments in affiliates of Apollo Global Management, LLC (AGM and, together with its subsidiaries, Apollo) where Apollo can exercise significant influence over the affiliates. These investments are presented as investments in related parties on the condensed consolidated balance sheets, and are separately disclosed below. June 30, 2018 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI Available-for-sale securities U.S. government and agencies $ 143 $ — $ (1 ) $ 142 $ — U.S. state, municipal and political subdivisions 1,152 124 (5 ) 1,271 — Foreign governments 203 1 (5 ) 199 — Corporate 37,258 481 (885 ) 36,854 1 CLO 5,355 21 (24 ) 5,352 — ABS 4,727 32 (43 ) 4,716 1 CMBS 2,343 28 (47 ) 2,324 1 RMBS 8,264 648 (8 ) 8,904 10 Total AFS securities 59,445 1,335 (1,018 ) 59,762 13 Available-for-sale securities – related party CLO 473 2 (3 ) 472 — ABS 485 2 (3 ) 484 — Total AFS securities – related party 958 4 (6 ) 956 — Total AFS securities, including related party $ 60,403 $ 1,339 $ (1,024 ) $ 60,718 $ 13 December 31, 2017 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI Fixed maturity securities U.S. government and agencies $ 63 $ 1 $ (2 ) $ 62 $ — U.S. state, municipal and political subdivisions 996 171 (2 ) 1,165 — Foreign governments 2,575 116 (8 ) 2,683 — Corporate 35,173 1,658 (171 ) 36,660 — CLO 5,039 53 (8 ) 5,084 — ABS 3,945 53 (27 ) 3,971 1 CMBS 1,994 48 (21 ) 2,021 1 RMBS 8,721 652 (7 ) 9,366 11 Total fixed maturity securities 58,506 2,752 (246 ) 61,012 13 Equity securities 1 271 7 (1 ) 277 — Total AFS securities 58,777 2,759 (247 ) 61,289 13 Available-for-sale securities – related party CLO 353 7 — 360 — ABS 46 — — 46 — Total AFS securities – related party 399 7 — 406 — Total AFS securities, including related party $ 59,176 $ 2,766 $ (247 ) $ 61,695 $ 13 1 Included in equity securities on the condensed consolidated balance sheets. |
Available-for-sale Securities by Contractual Maturity | The amortized cost and fair value of fixed maturity AFS securities, including related party, are shown by contractual maturity below: June 30, 2018 (In millions) Amortized Cost Fair Value Due in one year or less $ 1,146 $ 1,145 Due after one year through five years 8,521 8,517 Due after five years through ten years 11,461 11,261 Due after ten years 17,628 17,543 CLO, ABS, CMBS and RMBS 20,689 21,296 Total AFS fixed maturity securities 59,445 59,762 Fixed maturity securities – related party, CLO and ABS 958 956 Total AFS fixed maturity securities, including related party $ 60,403 $ 60,718 |
Fair Values and Unrealized Losses on Available-for-sale Securities | The following summarizes the fair value and gross unrealized losses for AFS securities, including related party, aggregated by class of security and length of time the fair value has remained below amortized cost: June 30, 2018 Less than 12 months 12 months or more Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Fair Value Gross Available-for-sale securities U.S. government and agencies $ 139 $ (1 ) $ 1 $ — $ 140 $ (1 ) U.S. state, municipal and political subdivisions 125 (1 ) 77 (4 ) 202 (5 ) Foreign governments 103 (2 ) 45 (3 ) 148 (5 ) Corporate 17,178 (526 ) 5,105 (359 ) 22,283 (885 ) CLO 2,270 (21 ) 267 (3 ) 2,537 (24 ) ABS 1,689 (22 ) 678 (21 ) 2,367 (43 ) CMBS 880 (20 ) 382 (27 ) 1,262 (47 ) RMBS 380 (4 ) 248 (4 ) 628 (8 ) Total AFS securities 22,764 (597 ) 6,803 (421 ) 29,567 (1,018 ) Available-for-sale securities – related party CLO 214 (3 ) — — 214 (3 ) ABS 127 — 86 (3 ) 213 (3 ) Total AFS securities – related party 341 (3 ) 86 (3 ) 427 (6 ) Total AFS securities, including related party $ 23,105 $ (600 ) $ 6,889 $ (424 ) $ 29,994 $ (1,024 ) December 31, 2017 Less than 12 months 12 months or more Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturity securities U.S. government and agencies $ 34 $ (1 ) $ 9 $ (1 ) $ 43 $ (2 ) U.S. state, municipal and political subdivisions 50 (1 ) 39 (1 ) 89 (2 ) Foreign governments 435 (6 ) 76 (2 ) 511 (8 ) Corporate 3,992 (49 ) 2,457 (122 ) 6,449 (171 ) CLO 414 (2 ) 340 (6 ) 754 (8 ) ABS 515 (5 ) 549 (22 ) 1,064 (27 ) CMBS 460 (8 ) 179 (13 ) 639 (21 ) RMBS 506 (3 ) 210 (4 ) 716 (7 ) Total fixed maturity securities 6,406 (75 ) 3,859 (171 ) 10,265 (246 ) Equity securities 1 134 (1 ) — — 134 (1 ) Total AFS securities 6,540 (76 ) 3,859 (171 ) 10,399 (247 ) Available-for-sale securities – related party CLO 29 — — — 29 — ABS 42 — — — 42 — Total AFS securities – related party 71 — — — 71 — Total AFS securities, including related party $ 6,611 $ (76 ) $ 3,859 $ (171 ) $ 10,470 $ (247 ) 1 Included in equity securities on the condensed consolidated balance sheets. |
Other-than-temporary Impairments on Available-for-sale Securities | The following table represents a rollforward of the cumulative amounts recognized on the condensed consolidated statements of income for OTTI related to pre-tax credit loss impairments on AFS fixed maturity securities, for which a portion of the securities’ total OTTI was recognized in AOCI: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Beginning balance $ 7 $ 16 $ 7 $ 16 Initial impairments – credit loss OTTI recognized on securities not previously impaired — 6 1 6 Reduction in impairments from securities sold, matured or repaid — (6 ) (1 ) (6 ) Ending balance $ 7 $ 16 $ 7 $ 16 |
Net Investment Income | Net Investment Income —Net investment income by asset class consists of the following: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Fixed maturity securities AFS securities $ 719 $ 635 $ 1,387 $ 1,255 Trading securities 54 53 98 103 Equity securities 2 2 4 5 Mortgage loans 104 90 195 175 Investment funds 58 65 123 120 Funds withheld at interest 86 34 132 70 Other 23 21 46 38 Investment revenue 1,046 900 1,985 1,766 Investment expenses (88 ) (79 ) (172 ) (159 ) Net investment income $ 958 $ 821 $ 1,813 $ 1,607 |
Investment Related Gains (Losses) | Investment Related Gains (Losses) —Investment related gains (losses) by asset class consists of the following: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 AFS securities Gross realized gains on investment activity $ 51 $ 35 $ 72 $ 63 Gross realized losses on investment activity (37 ) (13 ) (43 ) (21 ) Net realized investment gains on AFS securities 14 22 29 42 Net realized investment gains (losses) on trading securities (76 ) 42 (165 ) 28 Net realized investment gains on equity securities 3 2 4 20 Derivative gains (losses) 46 406 (138 ) 1,060 Other gains (losses) 11 (12 ) 32 (8 ) Investment related gains (losses) $ (2 ) $ 460 $ (238 ) $ 1,142 |
Purchased Credit Impaired (PCI) Investments | Purchased Credit Impaired (PCI) Investments —The following table summarizes our PCI investments: June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 (In millions) Fixed maturity securities Mortgage loans Contractually required payments receivable $ 8,695 $ 9,690 $ 1,198 $ 1,140 Less: Cash flows expected to be collected 1 (7,689 ) (8,188 ) (1,164 ) (1,090 ) Non-accretable difference $ 1,006 $ 1,502 $ 34 $ 50 Cash flows expected to be collected 1 $ 7,689 $ 8,188 $ 1,164 $ 1,090 Less: Amortized cost (5,905 ) (6,168 ) (860 ) (817 ) Accretable difference $ 1,784 $ 2,020 $ 304 $ 273 Fair value $ 6,426 $ 6,703 $ 909 $ 844 Outstanding balance 7,250 8,026 992 946 1 Represents the undiscounted principal and interest cash flows expected. During the period, we acquired PCI investments with the following amounts at the time of purchase: June 30, 2018 (In millions) Fixed maturity securities Mortgage loans Contractually required payments receivable $ 405 $ 89 Cash flows expected to be collected 381 87 Fair value 310 68 The following table summarizes the activity for the accretable yield on PCI investments: Three months ended June 30, 2018 Six months ended June 30, 2018 (In millions) Fixed maturity securities Mortgage loans Fixed maturity securities Mortgage loans Beginning balance $ 1,912 $ 291 $ 2,020 $ 273 Purchases of PCI investments, net of sales 28 16 44 14 Accretion (105 ) (11 ) (205 ) (21 ) Net reclassification from (to) non-accretable difference (51 ) 8 (75 ) 38 Ending balance $ 1,784 $ 304 $ 1,784 $ 304 |
Mortgage Loans, Net | Mortgage Loans —Mortgage loans, net of allowances, consists of the following: (In millions) June 30, 2018 December 31, 2017 Commercial mortgage loans $ 6,197 $ 5,223 Commercial mortgage loans under development 37 24 Total commercial mortgage loans 6,234 5,247 Residential mortgage loans 1,375 986 Mortgage loans, net of allowances $ 7,609 $ 6,233 The distribution of commercial mortgage loans, including those under development, net of valuation allowances, by property type and geographic region, is as follows: June 30, 2018 December 31, 2017 (In millions, except for percentages) Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total Property type Office building $ 1,769 28.4 % $ 1,187 22.6 % Retail 1,710 27.4 % 1,223 23.3 % Hotels 895 14.4 % 928 17.7 % Industrial 858 13.8 % 944 18.0 % Apartment 545 8.7 % 525 10.0 % Other commercial 457 7.3 % 440 8.4 % Total commercial mortgage loans $ 6,234 100.0 % $ 5,247 100.0 % U.S. Region East North Central $ 921 14.8 % $ 643 12.3 % East South Central 160 2.6 % 144 2.7 % Middle Atlantic 1,025 16.4 % 909 17.3 % Mountain 512 8.2 % 492 9.4 % New England 144 2.3 % 162 3.1 % Pacific 1,362 21.9 % 991 18.9 % South Atlantic 1,362 21.8 % 873 16.6 % West North Central 189 3.0 % 233 4.4 % West South Central 559 9.0 % 655 12.5 % Total U.S. Region 6,234 100.0 % 5,102 97.2 % International Region — — % 145 2.8 % Total commercial mortgage loans $ 6,234 100.0 % $ 5,247 100.0 % |
Credit Quality Indicators of the Commercial Mortgage Portfolio | The loan-to-value ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A loan-to-value ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The following represents the loan-to-value ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances: (In millions) June 30, 2018 December 31, 2017 Less than 50% $ 1,952 $ 1,841 50% to 60% 1,607 1,390 61% to 70% 1,989 1,691 71% to 100% 649 301 Commercial mortgage loans $ 6,197 $ 5,223 The debt service coverage ratio, based upon the most recent financial statements, is expressed as a percentage of a property’s net operating income to its debt service payments. A debt service ratio of less than 1.0 indicates a property’s operations do not generate enough income to cover debt payments. The following represents the debt service coverage ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances: (In millions) June 30, 2018 December 31, 2017 Greater than 1.20x $ 5,776 $ 4,742 1.00x – 1.20x 302 297 Less than 1.00x 119 184 Commercial mortgage loans $ 6,197 $ 5,223 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amount and Fair Value of Derivative Instruments | The following table presents the notional amount and fair value of derivative instruments: June 30, 2018 December 31, 2017 Notional Amount Fair Value Notional Amount Fair Value (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedges Foreign currency swaps 1,713 $ 28 $ 102 928 $ 1 $ 99 Interest rate swaps — — — 302 — — Total derivatives designated as hedges 28 102 1 99 Derivatives not designated as hedges Equity options 34,189 1,875 13 31,460 2,500 19 Futures 4 3 — 1,134 7 — Total return swaps 61 1 — 114 5 — Foreign currency swaps 42 3 4 41 21 3 Interest rate swaps 480 — 1 385 — 2 Credit default swaps 10 — 5 10 — 5 Foreign currency forwards 595 19 12 1,139 17 6 Embedded derivatives Funds withheld — 312 4 — 312 22 Interest sensitive contract liabilities — — 8,065 — — 7,436 Total derivatives not designated as hedges 2,213 8,104 2,862 7,493 Total derivatives $ 2,241 $ 8,206 $ 2,863 $ 7,592 |
Gains (Losses) Related to Derivatives Not Designated as Hedges | The following is a summary of the gains (losses) related to derivatives not designated as hedges: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Equity options $ 89 $ 259 $ (53 ) $ 787 Futures 1 (4 ) (4 ) (14 ) Swaps (9 ) 9 (7 ) 14 Foreign currency forwards 14 19 7 20 Embedded derivatives on funds withheld (49 ) 123 (81 ) 253 Amounts recognized in investment related gains (losses) 46 406 (138 ) 1,060 Embedded derivatives in indexed annuity products 1 (54 ) (302 ) 184 (733 ) Total gains (losses) on derivatives not designated as hedges $ (8 ) $ 104 $ 46 $ 327 1 Included in interest sensitive contract benefits. |
Estimated Fair Value of Net Derivative and Other Financial Assets | The estimated fair value of our net derivative and other financial assets and liabilities after the application of master netting agreements and collateral were as follows: Gross amounts not offset on the condensed consolidated balance sheets (In millions) Gross amount recognized 1 Financial instruments 2 Collateral received/pledged Net amount Off-balance sheet securities collateral 3 Net amount after securities collateral June 30, 2018 Derivative assets $ 1,929 $ (59 ) $ (1,746 ) $ 124 $ (111 ) $ 13 Derivative liabilities (137 ) 59 56 (22 ) — (22 ) December 31, 2017 Derivative assets $ 2,551 $ (59 ) $ (2,323 ) $ 169 $ (221 ) $ (52 ) Derivative liabilities (134 ) 59 63 (12 ) — (12 ) 1 T he gross amounts of recognized derivative assets and derivative liabilities are reported on the c ondensed c onsolidated balance sheets. As of June 30, 2018 and December 31, 2017, amounts not subject to master netting or similar agreements were immaterial. 2 Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the condensed consolidated balance sheets. 3 For non-cash collateral received, we do not recognize the collateral on our balance sheet unless the obligor (transferor) has defaulted under the terms of the secured contract and is no longer entitled to redeem the pledged asset. Amounts do not include any excess of collateral pledged or received. |
Estimated Fair Value of Net Derivative and Other Financial Liabilities | The estimated fair value of our net derivative and other financial assets and liabilities after the application of master netting agreements and collateral were as follows: Gross amounts not offset on the condensed consolidated balance sheets (In millions) Gross amount recognized 1 Financial instruments 2 Collateral received/pledged Net amount Off-balance sheet securities collateral 3 Net amount after securities collateral June 30, 2018 Derivative assets $ 1,929 $ (59 ) $ (1,746 ) $ 124 $ (111 ) $ 13 Derivative liabilities (137 ) 59 56 (22 ) — (22 ) December 31, 2017 Derivative assets $ 2,551 $ (59 ) $ (2,323 ) $ 169 $ (221 ) $ (52 ) Derivative liabilities (134 ) 59 63 (12 ) — (12 ) 1 T he gross amounts of recognized derivative assets and derivative liabilities are reported on the c ondensed c onsolidated balance sheets. As of June 30, 2018 and December 31, 2017, amounts not subject to master netting or similar agreements were immaterial. 2 Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the condensed consolidated balance sheets. 3 For non-cash collateral received, we do not recognize the collateral on our balance sheet unless the obligor (transferor) has defaulted under the terms of the secured contract and is no longer entitled to redeem the pledged asset. Amounts do not include any excess of collateral pledged or received. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of VIE | The following summarizes the carrying value and maximum loss exposure of these non-consolidated investments: June 30, 2018 December 31, 2017 (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment funds $ 633 $ 1,242 $ 699 $ 1,036 Investment in related parties – investment funds 1,836 3,644 1,310 2,598 Assets of consolidated variable interest entities – investment funds 593 594 571 594 Investment in fixed maturity securities 21,879 21,272 21,022 20,278 Investment in related parties – fixed maturity securities 1,234 1,321 713 792 Total non-consolidated investments $ 26,175 $ 28,073 $ 24,315 $ 25,298 The following table presents the carrying value by ownership percentage of investment funds where we elected the fair value option, including related party investment funds and investment funds owned by consolidated VIEs: (In millions) June 30, 2018 December 31, 2017 Ownership Percentage 50% – 99% $ — $ — 3% – 49% 678 590 Less than 3% 133 134 Fair value option investment funds $ 811 $ 724 The following table presents the carrying value by ownership percentage of equity method investment funds, including related party investment funds and investment funds owned by consolidated VIEs: (In millions) June 30, 2018 December 31, 2017 Ownership Percentage 100% $ 15 $ 35 50% – 99% 837 520 3% – 49% 1,399 1,301 Equity method investment funds $ 2,251 $ 1,856 The following summarizes our investment funds, including related party investment funds and investment funds owned by consolidated VIEs: June 30, 2018 December 31, 2017 (In millions, except for percentages and years) Carrying value Percent of total Remaining life in years Carrying value Percent of total Remaining life in years Investment funds Private equity $ 237 37.4 % 0 – 6 $ 271 38.8 % 0 – 7 Real estate and other real assets 179 28.3 % 0 – 7 161 23.0 % 1 – 7 Natural resources 4 0.6 % 0 – 0 4 0.6 % 1 – 1 Hedge funds 53 8.4 % 0 – 2 61 8.7 % 0 – 3 Credit funds 160 25.3 % 0 – 4 202 28.9 % 0 – 5 Total investment funds 633 100.0 % 699 100.0 % Investment funds – related parties Private equity – A-A Mortgage 1 432 23.5 % 4 – 4 403 30.8 % 5 – 5 Private equity – other 441 24.0 % 0 – 6 180 13.7 % 0 – 10 Real estate and other real assets 499 27.2 % 0 – 10 297 22.7 % 0 – 7 Natural resources 91 5.0 % 3 – 4 74 5.6 % 4 – 6 Hedge funds 98 5.3 % 0 – 11 93 7.1 % 9 – 9 Credit funds 275 15.0 % 0 – 3 263 20.1 % 2 – 4 Total investment funds – related parties 1,836 100.0 % 1,310 100.0 % Investment funds owned by consolidated VIEs Private equity – MidCap 2 541 91.2 % N/A 528 92.5 % N/A Credit funds 1 0.2 % 0 – 2 21 3.7 % 0 – 3 Real estate and other real assets 51 8.6 % 0 – 4 22 3.8 % 2 – 3 Total investment funds owned by consolidated VIEs 593 100.0 % 571 100.0 % Total investment funds including related parties and funds owned by consolidated VIEs $ 3,062 $ 2,580 1 A-A Mortgage Opportunities, L.P. (A-A Mortgage) is a platform to originate residential mortgage loans and mortgage servicing rights. Our total investment in A-A Mortgage, including amounts loaned to A-A Mortgage affiliates, was $604 million and $455 million as of June 30, 2018 and December 31, 2017, respectively. 2 Our total investment in MidCap, including amounts advanced under credit facilities, was $779 million and $766 million as of June 30, 2018 and December 31, 2017, respectively. The following table summarizes the change in unrealized gains (losses) on trading and equity securities of our consolidated variable interest entities still held as of the respective period end: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Trading securities – related party $ 1 $ 1 $ 1 $ 1 Equity securities – related party (14 ) 9 (39 ) 5 The following represents the hierarchy for assets and liabilities of our consolidated VIEs measured at fair value on a recurring basis: June 30, 2018 (In millions) Total NAV 1 Level 1 Level 2 Level 3 Assets of consolidated variable interest entities Investments Fixed maturity securities, trading $ 48 $ — $ — $ — $ 48 Equity securities 163 — 137 — 26 Investment funds 542 541 — — 1 Cash and cash equivalents 2 — 2 — — Total assets of consolidated VIEs measured at fair value $ 755 $ 541 $ 139 $ — $ 75 1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. December 31, 2017 (In millions) Total NAV 1 Level 1 Level 2 Level 3 Assets of consolidated variable interest entities Investments Fixed maturity securities, trading $ 48 $ — $ — $ — $ 48 Equity securities 240 — 212 — 28 Investment funds 549 528 — — 21 Cash and cash equivalents 4 — 4 — — Total assets of consolidated VIEs measured at fair value $ 841 $ 528 $ 216 $ — $ 97 1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. The following represents the gains (losses) recorded for instruments within the consolidated VIEs for which we have elected the fair value option: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Trading securities $ 1 $ 1 $ 1 $ 1 Investment funds 3 — 9 5 Total gains (losses) $ 4 $ 1 $ 10 $ 6 The following is a reconciliation for all VIE Level 3 assets and liabilities measured at fair value on a recurring basis: Three months ended June 30, 2018 (In millions) Beginning Balance Total realized and unrealized gains (losses) included in income Purchases Sales Transfers in (out) Ending Balance Total gains (losses) included in earnings 1 Assets of consolidated variable interest entities Fixed maturity securities Trading securities $ 47 $ 1 $ — $ — $ — $ 48 $ 1 Equity securities 28 (2 ) — — — 26 (2 ) Investment funds 20 (3 ) — (16 ) — 1 (3 ) Total Level 3 assets of consolidated VIEs $ 95 $ (4 ) $ — $ (16 ) $ — $ 75 $ (4 ) 1 Related to instruments held at end of period. Three months ended June 30, 2017 (In millions) Beginning Balance Total realized and unrealized gains (losses) included in income Purchases Sales Transfers in (out) Ending Balance Total gains (losses) included in earnings 1 Assets of consolidated variable interest entities Fixed maturity securities Trading securities $ 50 $ 1 $ — $ — $ — $ 51 $ — Equity securities 32 (2 ) — — — 30 (2 ) Investment funds 38 — 1 (7 ) — 32 — Total Level 3 assets of consolidated VIEs $ 120 $ (1 ) $ 1 $ (7 ) $ — $ 113 $ (2 ) 1 Related to instruments held at end of period. Six months ended June 30, 2018 (In millions) Beginning Balance Total realized and unrealized gains (losses) included in income Purchases Sales Transfers in (out) Ending Balance Total gains (losses) included in earnings 1 Assets of consolidated variable interest entities Fixed maturity securities Trading securities $ 48 $ 1 $ — $ (1 ) $ — $ 48 $ 1 Equity securities 28 (2 ) — — — 26 (2 ) Investment funds 21 (3 ) — (17 ) — 1 (3 ) Total Level 3 assets of consolidated VIEs $ 97 $ (4 ) $ — $ (18 ) $ — $ 75 $ (4 ) 1 Related to instruments held at end of period. Six months ended June 30, 2017 (In millions) Beginning Balance Total realized and unrealized gains (losses) included in income Purchases Sales Transfers in (out) Ending Balance Total gains (losses) included in earnings 1 Assets of consolidated variable interest entities Fixed maturity securities Trading securities $ 50 $ 1 $ — $ — $ — $ 51 $ 1 Equity securities 43 (13 ) — — — 30 (13 ) Investment funds 38 — 1 (7 ) — 32 — Total Level 3 assets of consolidated VIEs $ 131 $ (12 ) $ 1 $ (7 ) $ — $ 113 $ (12 ) 1 Related to instruments held at end of period. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following represents the hierarchy for our assets and liabilities measured at fair value on a recurring basis: June 30, 2018 (In millions) Total NAV 1 Level 1 Level 2 Level 3 Assets Fixed maturity securities AFS securities U.S. government and agencies $ 142 $ — $ 140 $ 2 $ — U.S. state, municipal and political subdivisions 1,271 — — 1,271 — Foreign governments 199 — — 199 — Corporate 36,854 — — 35,892 962 CLO 5,352 — — 5,071 281 ABS 4,716 — — 3,265 1,451 CMBS 2,324 — — 2,127 197 RMBS 8,904 — — 8,897 7 Total AFS securities 59,762 — 140 56,724 2,898 Trading securities U.S. government and agencies 5 — 3 2 — U.S. state, municipal and political subdivisions 127 — — 110 17 Corporate 1,338 — — 1,334 4 CLO 26 — — — 26 ABS 89 — — — 89 CMBS 49 — — 49 — RMBS 419 — — 115 304 Total trading securities 2,053 — 3 1,610 440 Equity securities 216 — 20 194 2 Mortgage loans 38 — — — 38 Investment funds 126 95 — — 31 Funds withheld at interest – embedded derivative 150 — — — 150 Derivative assets 1,929 — 3 1,926 — Short-term investments 289 — 58 231 — Other investments 50 — — 50 — Cash and cash equivalents 3,608 — 3,608 — — Restricted cash 178 — 178 — — Investments in related parties Fixed maturity securities AFS securities CLO 472 — — 433 39 ABS 484 — — 438 46 Total AFS securities – related party 956 — — 871 85 Trading securities CLO 114 — — — 114 ABS 164 — — — 164 Total trading securities – related party 278 — — — 278 Investment funds 198 93 — — 105 Funds withheld at interest – embedded derivative 162 — — — 162 Short-term investments 172 — — 162 10 Reinsurance recoverable 1,717 — — — 1,717 Total assets measured at fair value $ 71,882 $ 188 $ 4,010 $ 61,768 $ 5,916 (Continued) June 30, 2018 (In millions) Total NAV 1 Level 1 Level 2 Level 3 Liabilities Interest sensitive contract liabilities Embedded derivative $ 8,065 $ — $ — $ — $ 8,065 Universal life benefits 943 — — — 943 Future policy benefits AmerUs Closed Block 1,490 — — — 1,490 ILICO Closed Block and life benefits 759 — — — 759 Derivative liabilities 137 — — 132 5 Funds withheld liability – embedded derivative 4 — — 4 — Total liabilities measured at fair value $ 11,398 $ — $ — $ 136 $ 11,262 1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. (Concluded) December 31, 2017 (In millions) Total NAV 1 Level 1 Level 2 Level 3 Assets Fixed maturity securities AFS securities U.S. government and agencies $ 62 $ — $ 26 $ 36 $ — U.S. state, municipal and political subdivisions 1,165 — — 1,165 — Foreign governments 2,683 — — 2,683 — Corporate 36,660 — — 36,082 578 CLO 5,084 — — 5,020 64 ABS 3,971 — — 2,510 1,461 CMBS 2,021 — — 1,884 137 RMBS 9,366 — — 9,065 301 Total AFS securities 61,012 — 26 58,445 2,541 Trading securities U.S. government and agencies 3 — 3 — — U.S. state, municipal and political subdivisions 138 — — 121 17 Corporate 1,475 — — 1,475 — CLO 27 — — 10 17 ABS 94 — — 17 77 CMBS 51 — — 51 — RMBS 408 — — 66 342 Total trading securities 2,196 — 3 1,740 453 (Continued) December 31, 2017 (In millions) Total NAV 1 Level 1 Level 2 Level 3 Equity securities 790 — 18 764 8 Mortgage loans 41 — — — 41 Investment funds 145 104 — — 41 Funds withheld at interest – embedded derivative 312 — — — 312 Derivative assets 2,551 — 7 2,544 — Short-term investments 201 — 40 161 — Cash and cash equivalents 4,888 — 4,888 — — Restricted cash 105 — 105 — — Investments in related parties Fixed maturity securities AFS securities CLO 360 — — 360 — ABS 46 — — 46 — Total AFS securities – related party 406 — — 406 — Trading securities CLO 132 — — 27 105 ABS 175 — — 175 — Total trading securities – related party 307 — — 202 105 Investment funds 30 30 — — — Short-term investments 52 — — 52 — Reinsurance recoverable 1,824 — — — 1,824 Total assets measured at fair value $ 74,860 $ 134 $ 5,087 $ 64,314 $ 5,325 Liabilities Interest sensitive contract liabilities Embedded derivative $ 7,436 $ — $ — $ — $ 7,436 Universal life benefits 1,005 — — — 1,005 Unit-linked contracts 488 — — 488 — Future policy benefits AmerUs Closed Block 1,625 — — — 1,625 ILICO Closed Block and life benefits 803 — — — 803 Derivative liabilities 134 — — 129 5 Funds withheld liability – embedded derivative 22 — — 22 — Total liabilities measured at fair value $ 11,513 $ — $ — $ 639 $ 10,874 1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. (Concluded) |
Summary of Fair Value Option | The following summarizes information for fair value option mortgage loans: (In millions) June 30, 2018 December 31, 2017 Unpaid principal balance $ 37 $ 40 Mark to fair value 1 1 Fair value $ 38 $ 41 The following represents the gains (losses) recorded for instruments for which we have elected the fair value option: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Trading securities $ (76 ) $ 41 $ (165 ) $ 27 Investment funds, including related party investment funds 10 7 6 14 Future policy benefits 51 (19 ) 135 (15 ) Total gains (losses) $ (15 ) $ 29 $ (24 ) $ 26 |
Reconciliation of Level 3 Assets Measured on a Recurring Basis | The following is a reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis: Three months ended June 30, 2018 Total realized and unrealized gains (losses) Transfers (In millions) Beginning Balance Included in income Included in OCI Net purchases, issuances, sales and settlements In (Out) Ending Balance Total gains (losses) included in earnings 1 Assets Fixed maturity securities AFS securities Corporate $ 681 $ (8 ) $ (5 ) $ 290 $ 28 $ (24 ) $ 962 $ — CLO 167 — — 211 32 (129 ) 281 — ABS 1,294 3 (9 ) 273 — (110 ) 1,451 — CMBS 63 — 1 152 — (19 ) 197 — RMBS 38 — — — — (31 ) 7 — Trading securities U.S. state, municipal and political subdivisions 17 — — — — — 17 — Corporate — — — 4 — — 4 — CLO 1 — — — 26 (1 ) 26 — ABS — — — — 89 — 89 — RMBS 321 (17 ) — — — — 304 3 Equity securities — 1 — 1 — — 2 1 Mortgage loans 41 — — (3 ) — — 38 — Investment funds 25 6 — — — — 31 6 Funds withheld at interest – embedded derivative 207 (57 ) — — — — 150 — Investments in related parties Fixed maturity securities AFS securities CLO 62 — — 38 — (61 ) 39 — ABS — — — 46 — — 46 — Trading securities CLO 91 (1 ) — — 24 — 114 1 ABS 171 (7 ) — — — — 164 (7 ) Equity securities — — — — — — — — Investment funds 111 (6 ) — — — — 105 (6 ) Funds withheld at interest – embedded derivative — 162 — — — — 162 — Short-term investments — — — 10 — — 10 — Reinsurance recoverable 1,713 4 — — — — 1,717 — Total Level 3 assets $ 5,003 $ 80 $ (13 ) $ 1,022 $ 199 $ (375 ) $ 5,916 $ (2 ) Liabilities Interest sensitive contract liabilities Embedded derivative $ (7,254 ) $ (54 ) $ — $ (757 ) $ — $ — $ (8,065 ) $ — Universal life benefits (934 ) (9 ) — — — — (943 ) — Future policy benefits AmerUs Closed Block (1,541 ) 51 — — — — (1,490 ) — ILICO Closed Block and life benefits (764 ) 5 — — — — (759 ) — Derivative liabilities (5 ) — — — — — (5 ) — Total Level 3 liabilities $ (10,498 ) $ (7 ) $ — $ (757 ) $ — $ — $ (11,262 ) $ — 1 Related to instruments held at end of period. Three months ended June 30, 2017 Total realized and unrealized gains (losses) Transfers (In millions) Beginning Balance Included in income Included in OCI Net purchases, issuances, sales and settlements In (Out) Ending Balance Total gains (losses) included in earnings 1 Assets Fixed maturity securities AFS Securities Foreign governments $ 13 $ 1 $ — $ — $ — $ — $ 14 $ — Corporate 490 3 4 28 — (73 ) 452 — CLO 100 — 4 17 11 (51 ) 81 — ABS 1,222 5 3 11 — (148 ) 1,093 — CMBS 147 1 — 13 48 (87 ) 122 — RMBS 60 1 2 6 243 — 312 — Trading Securities U.S. state, municipal and political subdivisions 17 — — — — — 17 — CLO 27 — — — — (5 ) 22 1 RMBS 82 (4 ) — 22 — — 100 — Equity securities 5 — — 1 — — 6 — Mortgage loans 44 — — (1 ) — — 43 — Funds withheld at interest – embedded derivative 212 67 — — — — 279 — Investments in related parties Fixed maturity securities Trading securities, CLO 131 5 — (12 ) 31 (32 ) 123 5 Short-term investments 20 — — 8 — — 28 — Reinsurance recoverable 1,738 44 — — — — 1,782 — Total Level 3 assets $ 4,308 $ 123 $ 13 $ 93 $ 333 $ (396 ) $ 4,474 $ 6 Liabilities Interest sensitive contract liabilities Embedded derivative $ (5,793 ) $ (302 ) $ — $ (112 ) $ — $ — $ (6,207 ) $ — Universal life benefits (910 ) (44 ) — — — — (954 ) — Future policy benefits AmerUs Closed Block (1,602 ) (19 ) — — — — (1,621 ) — ILICO Closed Block and life benefits (813 ) 1 — — — — (812 ) — Derivative liabilities (7 ) 1 — — — — (6 ) — Total Level 3 liabilities $ (9,125 ) $ (363 ) $ — $ (112 ) $ — $ — $ (9,600 ) $ — 1 Related to instruments held at end of period. Six months ended June 30, 2018 Total realized and unrealized gains (losses) Transfers (In millions) Beginning Balance Included in income Included in OCI Net purchases, issuances, sales and settlements In (Out) Ending Balance Total gains (losses) included in earnings 1 Assets Fixed maturity securities AFS securities Corporate $ 578 $ (3 ) $ (9 ) $ 340 $ 64 $ (8 ) $ 962 $ — CLO 64 — 2 226 17 (28 ) 281 — ABS 1,461 5 (17 ) 157 — (155 ) 1,451 — CMBS 137 1 (3 ) 152 — (90 ) 197 — RMBS 301 3 (8 ) (19 ) 7 (277 ) 7 — Trading securities U.S. state, municipal and political subdivisions 17 — — — — — 17 — Corporate — — — 4 — — 4 — CLO 17 (1 ) — — 10 — 26 — ABS 77 (4 ) — — 16 — 89 (3 ) RMBS 342 (38 ) — — — — 304 2 Equity securities 8 1 — (7) — — 2 — Mortgage loans 41 — — (3 ) — — 38 — Investment funds 41 (3 ) — (7 ) — — 31 (3 ) Funds withheld at interest – embedded derivative 312 (162 ) — — — — 150 — Investments in related parties Fixed maturity securities AFS securities CLO — — — 39 — — 39 — ABS — — — 46 — — 46 — Trading securities CLO 105 (2 ) — (18 ) 29 — 114 1 ABS — — — — 164 — 164 — Investment funds — (3 ) — 108 — — 105 (3 ) Funds withheld at interest – embedded derivative — 162 — — — — 162 — Short-term investments — — — 10 — — 10 — Reinsurance recoverable 1,824 (107 ) — — — — 1,717 — Total Level 3 assets $ 5,325 $ (151 ) $ (35 ) $ 1,028 $ 307 $ (558 ) $ 5,916 $ (6 ) Liabilities Interest sensitive contract liabilities Embedded derivative $ (7,436 ) $ 184 $ — $ (813 ) $ — $ — $ (8,065 ) $ — Universal life benefits (1,005 ) 62 — — — — (943 ) — Future policy benefits AmerUs Closed Block (1,625 ) 135 — — — — (1,490 ) — ILICO Closed Block and life benefits (803 ) 44 — — — — (759 ) — Derivative liabilities (5 ) — — — — — (5 ) — Total Level 3 liabilities $ (10,874 ) $ 425 $ — $ (813 ) $ — $ — $ (11,262 ) $ — 1 Related to instruments held at end of period. Six months ended June 30, 2017 Total realized and unrealized gains (losses) Transfers (In millions) Beginning balance Included in income Included in OCI Net purchases, issuances, sales and settlements In Out Ending balance Total gains (losses) included in earnings 1 Assets Fixed maturity securities AFS Securities U.S. state, municipal and political subdivisions $ 5 $ 16 $ (1 ) $ (20 ) $ — $ — $ — $ — Foreign governments 14 1 — (1 ) — — 14 — Corporate 370 4 10 105 — (37 ) 452 — CLO 158 — 9 7 11 (104 ) 81 — ABS 1,160 9 17 42 — (135 ) 1,093 — CMBS 152 1 (3 ) 13 17 (58 ) 122 — RMBS 17 1 — 6 296 (8 ) 312 — Trading securities U.S. state, municipal and political subdivisions 17 — — — — — 17 — CLO 43 (1 ) — (15 ) — (5 ) 22 2 RMBS 96 (9 ) — 24 — (11 ) 100 (1 ) Equity Securities 5 — — 1 — — 6 — Mortgage loans 44 — — (1 ) — — 43 — Funds withheld at interest – embedded derivative 140 139 — — — — 279 — Investments in related parties Fixed maturity securities AFS Securities ABS 56 — 1 (4 ) — (53 ) — — Trading securities CLO 195 (3 ) — (26 ) — (43 ) 123 (1 ) Short-term investments — — — 28 — — 28 — Reinsurance recoverable 1,692 90 — — — — 1,782 — Total Level 3 assets $ 4,164 $ 248 $ 33 $ 159 $ 324 $ (454 ) $ 4,474 $ — Liabilities Interest sensitive contract liabilities Embedded derivative $ (5,283 ) $ (733 ) $ — $ (191 ) $ — $ — $ (6,207 ) $ — Universal life benefits (883 ) (71 ) — — — — (954 ) — Future policy benefits AmerUs Closed Block (1,606 ) (15 ) — — — — (1,621 ) — ILICO Closed Block and life benefits (794 ) (18 ) — — — — (812 ) — Derivative liabilities (7 ) 1 — — — — (6 ) 1 Total Level 3 liabilities $ (8,573 ) $ (836 ) $ — $ (191 ) $ — $ — $ (9,600 ) $ 1 1 Related to instruments held at end of period. |
Gross Components of Purchases, Sales, Issuances and Settlements, net | The following represents the gross components of purchases, issuances, sales and settlements, net, shown above: Three months ended June 30, 2018 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets Fixed maturity securities AFS securities Corporate $ 300 $ — $ (2 ) $ (8 ) $ 290 CLO 211 — — — 211 ABS 347 — — (74 ) 273 CMBS 152 — — — 152 Trading securities Corporate 4 — — — 4 Equity securities 1 — — — 1 Mortgage loans — — — (3 ) (3 ) Investments in related parties Fixed maturity securities AFS securities CLO 38 — — — 38 ABS 46 — — — 46 Trading securities, CLO 30 — (30 ) — — Short-term investments 10 — — — 10 Total Level 3 assets $ 1,139 $ — $ (32 ) $ (85 ) $ 1,022 Liabilities Interest sensitive contract liabilities Embedded derivative $ — $ (858 ) $ — $ 101 $ (757 ) Total Level 3 liabilities $ — $ (858 ) $ — $ 101 $ (757 ) Three months ended June 30, 2017 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets Fixed maturity securities AFS securities Corporate $ 30 $ — $ (1 ) $ (1 ) $ 28 CLO 24 — (5 ) (2 ) 17 ABS 99 — — (88 ) 11 CMBS 13 — — — 13 RMBS 7 — — (1 ) 6 Trading securities RMBS 22 — — — 22 Equity securities 1 — — — 1 Mortgage loans — — — (1 ) (1 ) Investments in related parties Fixed maturity securities Trading securities, CLO — — (12 ) — (12 ) Short-term investments 8 — — — 8 Total Level 3 assets $ 204 $ — $ (18 ) $ (93 ) $ 93 Liabilities Interest sensitive contract liabilities Embedded derivative $ — $ (160 ) $ — $ 48 $ (112 ) Total Level 3 liabilities $ — $ (160 ) $ — $ 48 $ (112 ) Six months ended June 30, 2018 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets Fixed maturity securities AFS securities Corporate $ 358 $ — $ (5 ) $ (13 ) $ 340 CLO 231 — (5 ) — 226 ABS 356 — (21 ) (178 ) 157 CMBS 153 — — (1 ) 152 RMBS — — — (19 ) (19 ) Trading securities Corporate 4 — — — 4 CLO 7 — (7 ) — — Equity securities 1 — (8) — (7 ) Mortgage loans — — — (3 ) (3 ) Investment funds — — — (7 ) (7 ) Investments in related parties Fixed maturity securities AFS securities CLO 39 — — — 39 ABS 46 — — — 46 Trading securities, CLO 30 — (48 ) — (18 ) Investment funds 108 — — — 108 Short-term investments 10 — — — 10 Total Level 3 assets $ 1,343 $ — $ (94 ) $ (221 ) $ 1,028 Liabilities Interest sensitive contract liabilities Embedded derivative $ — $ (984 ) $ — $ 171 $ (813 ) Total Level 3 liabilities $ — $ (984 ) $ — $ 171 $ (813 ) Six months ended June 30, 2017 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets Fixed maturity securities AFS securities U.S. state, municipal and political subdivisions $ — $ — $ — $ (20 ) $ (20 ) Foreign governments — — — (1 ) (1 ) Corporate 110 — (2 ) (3 ) 105 CLO 24 — (2 ) (15 ) 7 ABS 182 — — (140 ) 42 CMBS 13 — — — 13 RMBS 7 — — (1 ) 6 Trading securities CLO — — (15 ) — (15 ) RMBS 24 — — — 24 Equity securities 1 — — — 1 Mortgage loans — — — (1 ) (1 ) Investments in related parties Fixed maturity securities AFS securities, ABS 5 — — (9 ) (4 ) Trading securities, CLO — — (26 ) — (26 ) Short-term investments 28 — — — 28 Total Level 3 assets $ 394 $ — $ (45 ) $ (190 ) $ 159 Liabilities Interest sensitive contract liabilities Embedded derivative $ — $ (270 ) $ — $ 79 $ (191 ) Total Level 3 liabilities $ — $ (270 ) $ — $ 79 $ (191 ) |
Summary of the Unobservable Inputs for the Embedded Derivative of Fixed Indexed Annuities | The following summarizes the unobservable inputs for the embedded derivatives of fixed indexed annuities: June 30, 2018 (In millions, except for percentages) Fair value Valuation technique Unobservable inputs Input/range of Impact of an increase in the input on fair value Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives $ 8,065 Option budget method Non-performance risk 0.4 % – 1.4% Decrease Option budget 0.8 % – 3.7% Increase Surrender rate 4.7 % – 11.0% Decrease December 31, 2017 (In millions, except for percentages) Fair value Valuation technique Unobservable inputs Input/range of Impact of an increase in the input on fair value Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives $ 7,436 Option budget method Non-performance risk 0.2 % – 1.2% Decrease Option budget 0.7 % – 3.7% Increase Surrender rate 1.5 % – 19.4% Decrease |
Summary of Financial Instruments Not Carried at Fair Value on the Balance Sheet | The following represents our financial instruments not carried at fair value on the condensed consolidated balance sheets: June 30, 2018 (In millions) Carrying Value Fair Value NAV 1 Level 1 Level 2 Level 3 Financial Assets Mortgage loans $ 7,571 $ 7,713 $ — $ — $ — $ 7,713 Investment funds 507 507 507 — — — Policy loans 504 504 — — 504 — Funds withheld at interest 7,550 7,550 — — — 7,550 Other investments 73 73 — — — 73 Investments in related parties Investment funds 1,638 1,638 1,638 — — — Funds withheld at interest 14,059 14,059 — — — 14,059 Other investments 388 371 — — — 371 Total financial assets not carried at fair value $ 32,290 $ 32,415 $ 2,145 $ — $ 504 $ 29,766 Financial Liabilities Interest sensitive contract liabilities $ 46,586 $ 43,972 $ — $ — $ — $ 43,972 Short-term debt 183 183 — — 183 — Long-term debt 991 924 — — 924 — Funds withheld liability 385 385 — — 385 — Total financial liabilities not carried at fair value $ 48,145 $ 45,464 $ — $ — $ 1,492 $ 43,972 1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. December 31, 2017 (In millions) Carrying Value Fair Value NAV 1 Level 1 Level 2 Level 3 Financial Assets Mortgage loans $ 6,192 $ 6,342 $ — $ — $ — $ 6,342 Investment funds 554 554 554 — — — Policy loans 530 530 — — 530 — Funds withheld at interest 6,773 6,773 — — — 6,773 Other investments 133 133 — — 58 75 Investments in related parties Investment funds 1,280 1,280 1,280 — — — Other investments 238 259 — — — 259 Total financial assets not carried at fair value $ 15,700 $ 15,871 $ 1,834 $ — $ 588 $ 13,449 Financial Liabilities Interest sensitive contract liabilities $ 31,586 $ 31,656 $ — $ — $ — $ 31,656 Funds withheld liability 385 385 — — 385 — Total financial liabilities not carried at fair value $ 31,971 $ 32,041 $ — $ — $ 385 $ 31,656 1 Investments measured at NAV as a practical expedient in determining fair value have not been classified in the fair value hierarchy. |
Deferred Acquisition Costs, D29
Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Deferred Acquisition Costs | The following represents a rollforward of deferred acquisition costs (DAC), deferred sales inducements (DSI) and value of business acquired (VOBA): (In millions) DAC DSI VOBA Total Balance at December 31, 2017 $ 1,354 $ 520 $ 1,056 $ 2,930 Additions 1,607 120 — 1,727 Amortization (81 ) (43 ) (100 ) (224 ) Impact of unrealized investment (gains) losses 100 42 140 282 Balance at June 30, 2018 $ 2,980 $ 639 $ 1,096 $ 4,715 (In millions) DAC DSI VOBA Total Balance at December 31, 2016 $ 1,142 $ 462 $ 1,336 $ 2,940 Additions 248 80 — 328 Amortization (98 ) (29 ) (73 ) (200 ) Impact of unrealized investment (gains) losses (65 ) (28 ) (89 ) (182 ) Balance at June 30, 2017 $ 1,227 $ 485 $ 1,174 $ 2,886 |
Deferred Sales Inducements | The following represents a rollforward of deferred acquisition costs (DAC), deferred sales inducements (DSI) and value of business acquired (VOBA): (In millions) DAC DSI VOBA Total Balance at December 31, 2017 $ 1,354 $ 520 $ 1,056 $ 2,930 Additions 1,607 120 — 1,727 Amortization (81 ) (43 ) (100 ) (224 ) Impact of unrealized investment (gains) losses 100 42 140 282 Balance at June 30, 2018 $ 2,980 $ 639 $ 1,096 $ 4,715 (In millions) DAC DSI VOBA Total Balance at December 31, 2016 $ 1,142 $ 462 $ 1,336 $ 2,940 Additions 248 80 — 328 Amortization (98 ) (29 ) (73 ) (200 ) Impact of unrealized investment (gains) losses (65 ) (28 ) (89 ) (182 ) Balance at June 30, 2017 $ 1,227 $ 485 $ 1,174 $ 2,886 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Effects of Reinsurance | The following summarizes these reinsurance transactions (collectively, Voya reinsurance transactions): VIAC RLI (In millions) Coinsurance Modco Modco Total Liabilities assumed $ 3,667 $ 14,911 $ 457 $ 19,035 Less: Assets received 3,478 14,332 445 18,255 Ceding commission (paid) received (86 ) (320 ) 12 (394 ) Net cost of reinsurance $ 275 $ 899 $ — $ 1,174 DAC $ 293 $ 999 $ 4 $ 1,296 Unearned revenue reserve 1 (8 ) (57 ) (4 ) (69 ) Deferred profit liability 2 (10 ) (43 ) — (53 ) Net cost of reinsurance $ 275 $ 899 $ — $ 1,174 1 Included within interest sensitive contract liabilities on the condensed consolidated balance sheets. 2 Included within future policy benefits on the condensed consolidated balance sheets. The following summarizes the effect of reinsurance on premiums and future policy and other policy benefits on the consolidated statements of income: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Premiums Direct $ 114 $ 423 $ 432 $ 528 Reinsurance assumed 651 7 656 12 Reinsurance ceded (39 ) (51 ) (84 ) (109 ) Total premiums $ 726 $ 379 $ 1,004 $ 431 Future policy and other policy benefits Direct $ 284 $ 658 $ 736 $ 999 Reinsurance assumed 655 15 664 23 Reinsurance ceded (82 ) (95 ) (142 ) (230 ) Total future policy and other policy benefits $ 857 $ 578 $ 1,258 $ 792 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following represents our basic and diluted earnings per share (EPS) calculations: Three months ended June 30, 2018 (In millions, except share and per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic and diluted $ 220 $ 34 $ 5 $ 1 $ 1 $ 3 Basic weighted average shares outstanding 164,458,153 25,483,236 3,388,890 844,449 1,003,528 2,121,647 Dilutive effect of stock compensation plans 369,955 — — 6,307 — 594,331 Diluted weighted average shares outstanding 164,828,108 25,483,236 3,388,890 850,756 1,003,528 2,715,978 Earnings per share 1 Basic $ 1.34 $ 1.34 $ 1.34 $ 1.34 $ 1.34 $ 1.34 Diluted $ 1.33 $ 1.34 $ 1.34 $ 1.33 $ 1.34 $ 1.04 1 Calculated using whole figures. Three months ended June 30, 2017 (In millions, except share and per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic $ 177 $ 138 $ 6 $ 2 $ 1 $ 2 Effect of stock compensation plans on allocated net income 4 — — — — — Net income – diluted $ 181 $ 138 $ 6 $ 2 $ 1 $ 2 Basic weighted average shares outstanding 106,299,230 82,927,000 3,409,515 905,105 740,883 1,438,871 Dilutive effect of stock compensation plans 2,706,762 — — 15,000 491,292 1,718,314 Diluted weighted average shares outstanding 109,005,992 82,927,000 3,409,515 920,105 1,232,175 3,157,185 Earnings per share 1 Basic $ 1.66 $ 1.66 $ 1.66 $ 1.66 $ 1.66 $ 1.66 Diluted $ 1.65 $ 1.66 $ 1.66 $ 1.64 $ 1.00 $ 0.76 1 Calculated using whole figures. Six months ended June 30, 2018 (In millions, except share and per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic and diluted $ 422 $ 90 $ 9 $ 2 $ 3 $ 6 Basic weighted average shares outstanding 156,619,575 33,246,955 3,388,890 842,739 1,026,216 2,093,581 Dilutive effect of stock compensation plans 381,446 — — 7,642 10,286 761,780 Diluted weighted average shares outstanding 157,001,021 33,246,955 3,388,890 850,381 1,036,502 2,855,361 Earnings per share 1 Basic $ 2.70 $ 2.70 $ 2.70 $ 2.70 $ 2.70 $ 2.70 Diluted $ 2.69 $ 2.70 $ 2.70 $ 2.67 $ 2.67 $ 1.98 1 Calculated using whole figures. Six months ended June 30, 2017 (In millions, except share and per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic $ 337 $ 354 $ 13 $ 2 $ 1 $ 3 Effect of stock compensation plans on allocated net income 6 — — — — — Net income – diluted $ 343 $ 354 $ 13 $ 2 $ 1 $ 3 Basic weighted average shares outstanding 92,350,216 96,772,641 3,430,840 476,070 372,488 723,410 Dilutive effect of stock compensation plans 3,242,336 — — 493,213 884,760 1,971,060 Diluted weighted average shares outstanding 95,592,552 96,772,641 3,430,840 969,283 1,257,248 2,694,470 Earnings per share 1 Basic $ 3.66 $ 3.66 $ 3.66 $ 3.66 $ 3.66 $ 3.66 Diluted $ 3.59 $ 3.66 $ 3.66 $ 1.80 $ 1.08 $ 0.98 1 Calculated using whole figures. |
Shares Excluded from Dilutive Earnings Per Share | The diluted EPS calculations for Class A shares excluded the following shares, restricted stock units (RSUs) and options: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Antidilutive shares, RSUs and options excluded from diluted EPS calculation 35,078,635 74,650,807 35,078,635 73,792,976 Shares, RSUs and options excluded from diluted EPS calculation as a performance condition had not been met 280,030 1,448,998 280,030 1,448,998 Total shares, RSUs and options excluded from diluted EPS calculation 35,358,665 76,099,805 35,358,665 75,241,974 Note: Shares, RSUs and options are as of period end. |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | The following is a detail of AOCI and changes in AOCI. Prior period balances include equity securities that were classified as AFS securities prior to the adoption of ASU 2016-01. (In millions) June 30, 2018 December 31, 2017 AFS securities $ 328 $ 2,577 DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustments on AFS securities (116 ) (744 ) Noncredit component of OTTI losses on AFS securities (13 ) (13 ) Hedging instruments (50 ) (95 ) Pension adjustments (2 ) (5 ) Foreign currency translation adjustments (2 ) 8 Accumulated other comprehensive income, before taxes 145 1,728 Deferred income taxes (19 ) (313 ) Accumulated other comprehensive income $ 126 $ 1,415 Changes in AOCI are presented below: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Unrealized investment gains (losses) on AFS securities Unrealized investment gains (losses) on AFS securities $ (889 ) $ 735 $ (2,171 ) $ 1,251 Change in DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustment 233 (141 ) 624 (223 ) Less: Reclassification adjustment for gains (losses) realized in net income 1 11 12 30 27 Less: Income tax expense (benefit) (138 ) 179 (301 ) 292 Net unrealized investment gains (losses) on AFS securities (529 ) 403 (1,276 ) 709 Noncredit component of OTTI losses on AFS securities Noncredit component of OTTI losses on AFS securities 1 1 — 2 Less: Reclassification adjustment for losses realized in net income 1 1 2 — 2 Net noncredit component of OTTI losses on AFS securities — (1 ) — — Unrealized gains (losses) on hedging instruments Unrealized gains (losses) on hedging instruments 101 (33 ) 45 (38 ) Less: Income tax expense (benefit) 29 (11 ) 9 (13 ) Net unrealized gains (losses) on hedging instruments 72 (22 ) 36 (25 ) Pension adjustments — (1 ) 3 (1 ) Foreign currency translation adjustments (2 ) 8 (10 ) 10 Change in AOCI from other comprehensive income (loss) (459 ) 387 (1,247 ) 693 Adoption of ASU 2016-01 — — (42 ) — Change in AOCI $ (459 ) $ 387 $ (1,289 ) $ 693 1 Recognized in investment related gains (losses) on the condensed consolidated statements of income. |
Related Parties (Tables)
Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | For certain assets which require specialized sourcing and underwriting capabilities, AAM has chosen to mandate sub-advisors rather than building out in-house capabilities. AAM has entered into Master Sub-Advisory Agreements (MSAAs) with certain Apollo affiliates to sub-advise AAM with respect to a portion of our assets, with the fees recharged to us, in addition to the gross fee paid to AAM as described above. The MSAAs cover services rendered by Apollo-affiliated sub-advisors relating to the following investments: (In millions, except for percentages) June 30, 2018 December 31, 2017 Fixed maturity securities AFS securities Foreign governments $ 151 $ 152 Corporate 3,226 2,934 CLO 5,630 5,166 ABS 613 681 CMBS 878 872 Trading securities 115 121 Mortgage loans 2,701 2,232 Investment funds 27 26 Funds withheld at interest 1,831 1,737 Other investments 73 75 Total assets sub-advised by Apollo affiliates $ 15,245 $ 13,996 Percent of assets sub-advised by Apollo affiliates to total AAM-managed assets 16 % 18 % The following summarizes the asset management fees and sub-advisory fees we have incurred related to AAM and other Apollo affiliates: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Asset management fees $ 72 $ 64 $ 142 $ 126 Sub-advisory fees 14 12 27 28 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Restricted Pledged Assets and Funds in Trust | The total restricted assets included on the condensed consolidated balance sheets are as follows: (In millions) June 30, 2018 December 31, 2017 Fixed maturity securities AFS securities $ 4,452 $ 1,572 Trading securities 52 — Equity securities 3 36 Mortgage loans 943 914 Investment funds 29 20 Short-term investments 73 10 Other investments 45 — Restricted cash 178 105 Total restricted assets $ 5,775 $ 2,657 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Operating Revenues to Consolidation | The table below reconciles segment adjusted operating revenues to total revenues presented on the condensed consolidated statements of income: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Retirement Services $ 1,868 $ 1,254 $ 3,125 $ 2,142 Corporate and Other 26 103 53 171 Non-operating adjustments Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets 97 266 (61 ) 802 Investment gains (losses), net of offsets (149 ) 138 (255 ) 263 VIE expenses and noncontrolling interest 2 — 2 — Other adjustments to revenues (47 ) 2 (56 ) 4 Total revenues $ 1,797 $ 1,763 $ 2,808 $ 3,382 |
Reconciliation of Segment Operating Income to Consolidation | The table below reconciles segment adjusted operating income to net income on the condensed consolidated statements of income: Three months ended June 30, Six months ended June 30, (In millions) 2018 2017 2018 2017 Retirement Services $ 289 $ 267 $ 524 $ 542 Corporate and Other 1 13 3 4 Non-operating adjustments Investment gains (losses), net of offsets (74 ) 58 (107 ) 115 Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets 75 15 170 109 Integration, restructuring and other non-operating expenses (8 ) (11 ) (16 ) (20 ) Stock-based compensation, excluding LTIP (2 ) (13 ) (5 ) (23 ) Income tax (expense) benefit – non-operating (17 ) (3 ) (37 ) (17 ) Net income $ 264 $ 326 $ 532 $ 710 |
Total Assets by Segment | The following represents total assets by segment: (In millions) June 30, 2018 December 31, 2017 Total assets by segment Retirement Services $ 111,512 $ 91,335 Corporate and Other 3,243 8,412 Total assets $ 114,755 $ 99,747 |
Business, Basis of Presentati36
Business, Basis of Presentation and Significant Accounting Policies - Narrative (Details) $ in Millions | Jan. 01, 2018USD ($) | |
Narrative [Line Items] | ||
Adoption of accounting standards | $ (3) | |
Retained earnings | ||
Narrative [Line Items] | ||
Adoption of accounting standards | 39 | [1] |
Accounting Standards Update 2016-01 [Member] | Retained earnings | ||
Narrative [Line Items] | ||
Adoption of accounting standards | 42 | |
Accounting Standards Update 2016-16 [Member] | Retained earnings | ||
Narrative [Line Items] | ||
Adoption of accounting standards | (3) | |
Other Assets [Member] | Accounting Standards Update 2016-16 [Member] | ||
Narrative [Line Items] | ||
Adoption of accounting standards | $ 3 | |
[1] | See discussion of adoptions in Note 1 – Business, Basis of Presentation and Significant Accounting Policies. |
Investments - Schedule of AFS S
Investments - Schedule of AFS Securities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | $ 145 | $ 1,728 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Costs | 58,777 | |
Gross Unrealized Gains | 2,759 | |
Gross Unrealized Losses | (247) | |
Available-for-sale Securities | 61,289 | |
Amortized Cost | 59,445 | 58,506 |
Gross Unrealized Gains | 1,335 | 2,752 |
Gross Unrealized Losses | (1,018) | (246) |
Fair Value | 59,762 | 61,012 |
Equity securities | ||
Cost | 271 | |
Gross Unrealized Gains | 7 | |
Gross Unrealized Losses | (1) | |
Fair Value | 277 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. government and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 143 | 63 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (1) | (2) |
Fair Value | 142 | 62 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. state, municipal and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,152 | 996 |
Gross Unrealized Gains | 124 | 171 |
Gross Unrealized Losses | (5) | (2) |
Fair Value | 1,271 | 1,165 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 203 | 2,575 |
Gross Unrealized Gains | 1 | 116 |
Gross Unrealized Losses | (5) | (8) |
Fair Value | 199 | 2,683 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 37,258 | 35,173 |
Gross Unrealized Gains | 481 | 1,658 |
Gross Unrealized Losses | (885) | (171) |
Fair Value | 36,854 | 36,660 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CLO | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,355 | 5,039 |
Gross Unrealized Gains | 21 | 53 |
Gross Unrealized Losses | (24) | (8) |
Fair Value | 5,352 | 5,084 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,727 | 3,945 |
Gross Unrealized Gains | 32 | 53 |
Gross Unrealized Losses | (43) | (27) |
Fair Value | 4,716 | 3,971 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,343 | 1,994 |
Gross Unrealized Gains | 28 | 48 |
Gross Unrealized Losses | (47) | (21) |
Fair Value | 2,324 | 2,021 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,264 | 8,721 |
Gross Unrealized Gains | 648 | 652 |
Gross Unrealized Losses | (8) | (7) |
Fair Value | 8,904 | 9,366 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Costs | 59,176 | |
Gross Unrealized Gains | 2,766 | |
Gross Unrealized Losses | (247) | |
Available-for-sale Securities | 61,695 | |
Amortized Cost | 60,403 | |
Gross Unrealized Gains | 1,339 | |
Gross Unrealized Losses | (1,024) | |
Fair Value | 60,718 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Costs | 399 | |
Gross Unrealized Gains | 7 | |
Gross Unrealized Losses | 0 | |
Available-for-sale Securities | 406 | |
Amortized Cost | 958 | 399 |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (6) | |
Fair Value | 956 | 406 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | CLO | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 473 | 353 |
Gross Unrealized Gains | 2 | 7 |
Gross Unrealized Losses | (3) | 0 |
Fair Value | 472 | 360 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 485 | 46 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | (3) | 0 |
Fair Value | 484 | 46 |
OTTI | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | (13) | (13) |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 13 | 13 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. government and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. state, municipal and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 1 | 0 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CLO | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 1 | 1 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 1 | 1 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 10 | 11 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 13 | 13 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | CLO | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | $ 0 | $ 0 |
Investments - Maturities of AFS
Investments - Maturities of AFS Securities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Amortized Cost | ||
Due in one year or less | $ 1,146 | |
Due after one year through five years | 8,521 | |
Due after five years through ten years | 11,461 | |
Due after ten years | 17,628 | |
CLO, ABS, CMBS and RMBS | 20,689 | |
Amortized Cost | 59,445 | $ 58,506 |
Fair Value | ||
Due in one year or less | 1,145 | |
Due after one year through five years | 8,517 | |
Due after five years through ten years | 11,261 | |
Due after ten years | 17,543 | |
CLO, ABS, CMBS and RMBS | 21,296 | |
Total AFS fixed maturity securities | 59,762 | 61,012 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Amortized Cost | ||
Amortized Cost | 60,403 | |
Fair Value | ||
Total AFS fixed maturity securities | 60,718 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Amortized Cost | ||
CLO, ABS, CMBS and RMBS | 958 | |
Amortized Cost | 958 | 399 |
Fair Value | ||
CLO, ABS, CMBS and RMBS | 956 | |
Total AFS fixed maturity securities | $ 956 | $ 406 |
Investments - Unrealized Losses
Investments - Unrealized Losses on AFS Securities (Details) $ in Millions | Jun. 30, 2018USD ($)security | Dec. 31, 2017USD ($) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 3,517 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 808 | |
Fair Value | ||
Less than 12 months | $ 22,764 | $ 6,540 |
12 months or greater | (421) | (171) |
Total | 29,567 | 10,399 |
Gross Unrealized Losses | ||
Less than 12 months | (597) | (76) |
Total | (1,018) | (247) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 6,803 | 3,859 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. government and agencies | ||
Fair Value | ||
Less than 12 months | 139 | 34 |
12 months or greater | 0 | (1) |
Total | 140 | 43 |
Gross Unrealized Losses | ||
Less than 12 months | (1) | (1) |
Total | (1) | (2) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 1 | 9 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. state, municipal and political subdivisions | ||
Fair Value | ||
Less than 12 months | 125 | 50 |
12 months or greater | (4) | (1) |
Total | 202 | 89 |
Gross Unrealized Losses | ||
Less than 12 months | (1) | (1) |
Total | (5) | (2) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 77 | 39 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Foreign governments | ||
Fair Value | ||
Less than 12 months | 103 | 435 |
12 months or greater | (3) | (2) |
Total | 148 | 511 |
Gross Unrealized Losses | ||
Less than 12 months | (2) | (6) |
Total | (5) | (8) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 45 | 76 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Corporate | ||
Fair Value | ||
Less than 12 months | 17,178 | 3,992 |
12 months or greater | (359) | (122) |
Total | 22,283 | 6,449 |
Gross Unrealized Losses | ||
Less than 12 months | (526) | (49) |
Total | (885) | (171) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 5,105 | 2,457 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CLO | ||
Fair Value | ||
Less than 12 months | 2,270 | 414 |
12 months or greater | (3) | (6) |
Total | 2,537 | 754 |
Gross Unrealized Losses | ||
Less than 12 months | (21) | (2) |
Total | (24) | (8) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 267 | 340 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ABS | ||
Fair Value | ||
Less than 12 months | 1,689 | 515 |
12 months or greater | (21) | (22) |
Total | 2,367 | 1,064 |
Gross Unrealized Losses | ||
Less than 12 months | (22) | (5) |
Total | (43) | (27) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 678 | 549 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CMBS | ||
Fair Value | ||
Less than 12 months | 880 | 460 |
12 months or greater | (27) | (13) |
Total | 1,262 | 639 |
Gross Unrealized Losses | ||
Less than 12 months | (20) | (8) |
Total | (47) | (21) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 382 | 179 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | RMBS | ||
Fair Value | ||
Less than 12 months | 380 | 506 |
12 months or greater | (4) | (4) |
Total | 628 | 716 |
Gross Unrealized Losses | ||
Less than 12 months | (4) | (3) |
Total | (8) | (7) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 248 | 210 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Fixed maturity securities | ||
Fair Value | ||
Less than 12 months | 6,406 | |
12 months or greater | (171) | |
Total | 10,265 | |
Gross Unrealized Losses | ||
Less than 12 months | (75) | |
Total | (246) | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 3,859 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Equity securities | ||
Fair Value | ||
Less than 12 months | 134 | |
12 months or greater | 0 | |
Total | 134 | |
Gross Unrealized Losses | ||
Less than 12 months | (1) | |
Total | (1) | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value | ||
Less than 12 months | 23,105 | 6,611 |
12 months or greater | (424) | (171) |
Total | 29,994 | 10,470 |
Gross Unrealized Losses | ||
Less than 12 months | (600) | (76) |
Total | (1,024) | (247) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 6,889 | 3,859 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 17 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 4 | |
Fair Value | ||
Less than 12 months | $ 341 | 71 |
12 months or greater | (3) | 0 |
Total | 427 | 71 |
Gross Unrealized Losses | ||
Less than 12 months | (3) | 0 |
Total | (6) | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 86 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | CLO | ||
Fair Value | ||
Less than 12 months | 214 | 29 |
12 months or greater | 0 | 0 |
Total | 214 | 29 |
Gross Unrealized Losses | ||
Less than 12 months | (3) | 0 |
Total | (3) | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ABS | ||
Fair Value | ||
Less than 12 months | 127 | 42 |
12 months or greater | (3) | 0 |
Total | 213 | 42 |
Gross Unrealized Losses | ||
Less than 12 months | 0 | 0 |
Total | (3) | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 86 | $ 0 |
Investments - OTTI AFS Securiti
Investments - OTTI AFS Securities (Details) - Consolidated Entity Excluding Variable Interest Entities (VIE) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net other-than-temporary impairment losses | $ 3 | |||
Net other-than-temporary-impairment, Portion Recognized in Earnings, Net Intent to Sell | 2 | |||
Other-than-Temporary-Impairment, Investments, Portion Recognized in Earnings, Net Credit Related | 1 | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Beginning balance | $ 7 | $ 16 | 7 | $ 16 |
Initial impairments – credit loss OTTI recognized on securities not previously impaired | 0 | 6 | 1 | 6 |
Reduction in impairments from securities sold, matured or repaid | 0 | (6) | (1) | (6) |
Ending balance | $ 7 | $ 16 | $ 7 | $ 16 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - Consolidated Entity Excluding Variable Interest Entities (VIE) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Investment Income [Line Items] | ||||
Investment revenue | $ 1,046 | $ 900 | $ 1,985 | $ 1,766 |
Investment expenses | (88) | (79) | (172) | (159) |
Net investment income | 958 | 821 | 1,813 | 1,607 |
AFS securities | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 719 | 635 | 1,387 | 1,255 |
Trading securities | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 54 | 53 | 98 | 103 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 2 | 2 | 4 | 5 |
Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 104 | 90 | 195 | 175 |
Investment funds | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 58 | 65 | 123 | 120 |
Funds withheld at interest | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 86 | 34 | 132 | 70 |
Other | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | $ 23 | $ 21 | $ 46 | $ 38 |
Investments - Investment Relate
Investments - Investment Related Gains (Losses) (Details) - Consolidated Entity Excluding Variable Interest Entities (VIE) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Gain (Loss) on Securities [Line Items] | ||||
Proceeds from Sale of Debt Securities, Available-for-sale | $ 2,365 | $ 1,235 | $ 4,002 | $ 2,766 |
Debt Securities, Available-for-sale, Realized Gain | 51 | 35 | 72 | 63 |
AFS fixed maturity securities | ||||
Gross realized losses on investment activity | (37) | (13) | (43) | (21) |
Net realized investment gains on AFS securities | 14 | 22 | 29 | 42 |
Debt Securities, Trading, Realized Gain (Loss) | (76) | 42 | (165) | 28 |
Net realized investment gains on equity securities | 3 | 2 | 4 | 20 |
Derivative gains (losses) | 46 | 406 | (138) | 1,060 |
Other gains (losses) | 11 | (12) | 32 | (8) |
Investment related gains (losses) | $ (2) | $ 460 | $ (238) | $ 1,142 |
Investments - Unrealized gains
Investments - Unrealized gains (losses) recognized in income (Details) - Consolidated Entity Excluding Variable Interest Entities (VIE) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Gain (Loss) on Securities [Line Items] | ||||
Debt Securities, Trading, Unrealized Gain (Loss) | $ 30 | $ 48 | $ (39) | $ 59 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 4 | (2) | 4 | 13 |
Related Party | ||||
Gain (Loss) on Securities [Line Items] | ||||
Debt Securities, Trading, Unrealized Gain (Loss) | $ (4) | $ 12 | $ (6) | $ 0 |
Investments - Purchase Credit I
Investments - Purchase Credit Impaired (PCI) Investments (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Fixed maturity securities | |||
Certain Loans Acquired in Transfer Accounted for as Available-for-sale Debt Securities, Contractually Required Payments Receivable | $ 8,695 | $ 9,690 | |
Contractually required payments | 7,250 | 8,026 | |
Less: Cash flows expected to be collected | (7,689) | (8,188) | |
Cash flows expected to be collected2 | 7,689 | 8,188 | |
Less: Amortized cost | (5,905) | (6,168) | |
Accretable difference | 1,784 | $ 1,912 | 2,020 |
Fair value | 6,426 | 6,703 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Fair Value | 909 | 844 | |
Mortgage loans | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Contractually Required Payments Receivable | 1,198 | 1,140 | |
Contractually required payments | 992 | 946 | |
Less: Cash flows expected to be collected | 1,164 | 1,090 | |
Cash flows expected to be collected | 1,164 | 1,090 | |
Accretable difference | 304 | $ 291 | 273 |
Fair value | (860) | (817) | |
Mortgage loans | |||
Fixed maturity securities | |||
Certain Loans Acquired in Transfer, Nonaccretable Difference | 34 | 50 | |
Fixed maturity securities | |||
Fixed maturity securities | |||
Certain Loans Acquired in Transfer, Nonaccretable Difference | $ 1,006 | $ 1,502 |
Investments - PCI Securities Ac
Investments - PCI Securities Acquired During the Period (Details) $ in Millions | Jun. 30, 2018USD ($) |
Fixed maturity securities | |
Contractually required principal and interest | $ 405 |
Expected cash flows | 381 |
Estimated fair value | 310 |
Mortgage loans | |
Contractually required principal and interest | 89 |
Expected cash flows | 87 |
Estimated fair value | $ 68 |
Investments - PCI Securities 46
Investments - PCI Securities Accretable Yield (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Fixed Maturity Securities Accretable Yield Activity | ||
Beginning balance | $ 1,912 | $ 2,020 |
Purchases of PCI investments, net of sales | 28 | 44 |
Accretion | (105) | (205) |
Ending balance | 1,784 | 1,784 |
Mortgage Loans Accretable Yield Activity | ||
Beginning balance | 291 | 273 |
Purchases of PCI investments, net of sales | 16 | 14 |
Accretion | (11) | (21) |
Ending balance | 304 | 304 |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference | (51) | (75) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications (to) from Nonaccretable Difference | $ 8 | $ 38 |
Investments - Mortgage Loans, N
Investments - Mortgage Loans, Net (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 7,609 | $ 6,233 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 6,234 | 5,247 |
Commercial mortgage loans | Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 6,197 | 5,223 |
Commercial mortgage loans | Commercial mortgage loans under development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 37 | 24 |
Residential mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,375 | $ 986 |
Investments - Mortgage Loans,48
Investments - Mortgage Loans, Net by Property Type and Geographic Region (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 7,609 | $ 6,233 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 6,234 | $ 5,247 |
Commercial mortgage loans | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 100.00% | 100.00% |
Commercial mortgage loans | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 100.00% | 100.00% |
Commercial mortgage loans | Total U.S. Region | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 6,234 | $ 5,102 |
Commercial mortgage loans | Total U.S. Region | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 100.00% | 97.20% |
Commercial mortgage loans | East North Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 921 | $ 643 |
Commercial mortgage loans | East North Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 14.80% | 12.30% |
Commercial mortgage loans | East South Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 160 | $ 144 |
Commercial mortgage loans | East South Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 2.60% | 2.70% |
Commercial mortgage loans | Middle Atlantic | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,025 | $ 909 |
Commercial mortgage loans | Middle Atlantic | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 16.40% | 17.30% |
Commercial mortgage loans | Mountain | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 512 | $ 492 |
Commercial mortgage loans | Mountain | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 8.20% | 9.40% |
Commercial mortgage loans | New England | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 144 | $ 162 |
Commercial mortgage loans | New England | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 2.30% | 3.10% |
Commercial mortgage loans | Pacific | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,362 | $ 991 |
Commercial mortgage loans | Pacific | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 21.90% | 18.90% |
Commercial mortgage loans | South Atlantic | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,362 | $ 873 |
Commercial mortgage loans | South Atlantic | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 21.80% | 16.60% |
Commercial mortgage loans | West North Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 189 | $ 233 |
Commercial mortgage loans | West North Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 3.00% | 4.40% |
Commercial mortgage loans | West South Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 559 | $ 655 |
Commercial mortgage loans | West South Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 9.00% | 12.50% |
Commercial mortgage loans | International Region | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 0 | $ 145 |
Commercial mortgage loans | International Region | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 0.00% | 2.80% |
Commercial mortgage loans | Hotels | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 895 | $ 928 |
Commercial mortgage loans | Hotels | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 14.40% | 17.70% |
Commercial mortgage loans | Retail | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,710 | $ 1,223 |
Commercial mortgage loans | Retail | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 27.40% | 23.30% |
Commercial mortgage loans | Office building | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,769 | $ 1,187 |
Commercial mortgage loans | Office building | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 28.40% | 22.60% |
Commercial mortgage loans | Industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 858 | $ 944 |
Commercial mortgage loans | Industrial | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 13.80% | 18.00% |
Commercial mortgage loans | Apartment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 545 | $ 525 |
Commercial mortgage loans | Apartment | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 8.70% | 10.00% |
Commercial mortgage loans | Other commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 457 | $ 440 |
Commercial mortgage loans | Other commercial | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 7.30% | 8.40% |
Residential mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,375 | $ 986 |
Residential mortgage loans | California | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 33.30% | 34.30% |
Residential mortgage loans | Florida | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 16.70% | 15.60% |
Residential mortgage loans | New York | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 6.00% | |
Residential mortgage loans | Other U.S. States | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of Total | 50.00% | 44.10% |
Investments - Mortgage Loans,49
Investments - Mortgage Loans, Net Past Due (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Investments Schedule [Abstract] | ||
Mortgage loan valuation allowance | $ 1 | $ 2 |
Non-performing mortgage loans | 35 | 28 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Mortgage loans, net of allowances | 7,609 | 6,233 |
Commercial mortgage loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current (less than 30 days past due) | 6,234 | 5,247 |
Mortgage loans, net of allowances | $ 6,234 | $ 5,247 |
Investments - Mortgage Loans, L
Investments - Mortgage Loans, Loan to Value Ratio (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | $ 7,609 | $ 6,233 |
Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 6,234 | 5,247 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 6,197 | 5,223 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Less than 50% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 1,952 | 1,841 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 50% to 60% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 1,607 | 1,390 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 61% to 70% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 1,989 | 1,691 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 71% to 100% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | $ 649 | $ 301 |
Investments - Mortgage Loans, D
Investments - Mortgage Loans, Debt Service Coverage Ratio (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 7,609 | $ 6,233 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 6,234 | 5,247 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 6,197 | 5,223 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Greater than 1.20x | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 5,776 | 4,742 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 1.00x – 1.20x | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 302 | 297 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Less than 1.00x | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 119 | $ 184 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Notional and Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Total derivative assets | $ 2,241 | $ 2,863 |
Total derivative liabilities | 8,206 | 7,592 |
Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Derivative assets, fair value | 28 | 1 |
Derivative liabilities, fair value | 102 | 99 |
Derivatives designated as hedges | Foreign currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 1,713 | 928 |
Derivative assets, fair value | 28 | 1 |
Derivative liabilities, fair value | 102 | 99 |
Derivatives designated as hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 302 |
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 0 | 0 |
Derivatives not designated as hedges | ||
Derivative [Line Items] | ||
Total derivative assets | 2,213 | 2,862 |
Total derivative liabilities | 8,104 | 7,493 |
Derivatives not designated as hedges | Foreign currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 42 | 41 |
Derivative assets, fair value | 3 | 21 |
Derivative liabilities, fair value | 4 | 3 |
Derivatives not designated as hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 480 | 385 |
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 1 | 2 |
Derivatives not designated as hedges | Equity options | ||
Derivative [Line Items] | ||
Notional Amount | 34,189 | 31,460 |
Derivative assets, fair value | 1,875 | 2,500 |
Derivative liabilities, fair value | 13 | 19 |
Derivatives not designated as hedges | Futures | ||
Derivative [Line Items] | ||
Notional Amount | 4 | 1,134 |
Derivative assets, fair value | 3 | 7 |
Derivative liabilities, fair value | 0 | 0 |
Derivatives not designated as hedges | Total return swaps | ||
Derivative [Line Items] | ||
Notional Amount | 61 | 114 |
Derivative assets, fair value | 1 | 5 |
Derivative liabilities, fair value | 0 | 0 |
Derivatives not designated as hedges | Credit default swaps | ||
Derivative [Line Items] | ||
Notional Amount | 10 | 10 |
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 5 | 5 |
Derivatives not designated as hedges | Foreign currency forwards | ||
Derivative [Line Items] | ||
Notional Amount | 595 | 1,139 |
Derivative assets, fair value | 19 | 17 |
Derivative liabilities, fair value | 12 | 6 |
Derivatives not designated as hedges | Embedded derivatives | Funds withheld | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 0 |
Embedded derivative assets, fair value | 312 | |
Embedded derivative liabilities, fair value | 22 | |
Derivatives not designated as hedges | Embedded derivatives | Interest sensitive contract liabilities | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 0 |
Embedded derivative assets, fair value | 0 | 0 |
Embedded derivative liabilities, fair value | 8,065 | 7,436 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Derivative [Line Items] | ||
Funds withheld liability | 389 | 407 |
Derivative liabilities, fair value | 137 | 134 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Derivatives not designated as hedges | Embedded derivatives | Funds withheld | ||
Derivative [Line Items] | ||
Funds withheld at interest | 312 | |
Funds withheld liability | 4 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 3 | Recurring | ||
Derivative [Line Items] | ||
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 5 | 5 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 3 | Recurring | Embedded derivatives | ||
Derivative [Line Items] | ||
Funds withheld at interest | 150 | 312 |
Funds withheld liability | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 2 | Recurring | ||
Derivative [Line Items] | ||
Derivative assets, fair value | 1,926 | 2,544 |
Derivative liabilities, fair value | 132 | 129 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 2 | Recurring | Embedded derivatives | ||
Derivative [Line Items] | ||
Funds withheld at interest | 0 | 0 |
Funds withheld liability | $ 4 | $ 22 |
Derivative Instruments - Gains
Derivative Instruments - Gains (Losses) on Derivatives Not Designated as Hedging (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | $ (8,000,000) | $ 104,000,000 | $ 46,000,000 | $ 327,000,000 |
Investment related gains (losses) | ||||
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | 46,000,000 | 406,000,000 | (138,000,000) | 1,060,000,000 |
Investment related gains (losses) | Equity options | ||||
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | 89,000,000 | 259,000,000 | (53,000,000) | 787,000,000 |
Investment related gains (losses) | Futures | ||||
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | 1,000,000 | (4,000,000) | (4,000,000) | (14,000,000) |
Investment related gains (losses) | Swap [Member] | ||||
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | (9,000,000) | 9,000,000 | (7,000,000) | 14,000,000 |
Investment related gains (losses) | Foreign currency forwards | ||||
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | 14,000,000 | 19,000,000 | 7,000,000 | 20,000,000 |
Investment related gains (losses) | Embedded derivatives | ||||
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | (49,000,000) | 123,000,000 | (81,000,000) | 253,000,000 |
Interest sensitive contract benefits | Embedded derivatives | ||||
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | $ (54,000,000) | $ (302,000,000) | 184,000,000 | (733,000,000) |
Cash flow hedges | Derivatives designated as hedges | Foreign currency swaps | ||||
Derivative [Line Items] | ||||
Foreign currency swap gain (loss) reclassified to income | $ 0 | $ 0 |
Derivative Instruments - Offset
Derivative Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Offsetting Derivative Assets | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 1,929 | $ 2,551 |
Gross amounts not offset on the consolidated balance sheets, financial instruments | (59) | (59) |
Gross amounts not offset on the consolidated balance sheets, collateral received/pledged | (1,746) | (2,323) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 124 | 169 |
Off-balance sheet securities collateral | (111) | (221) |
Net amount after securities collateral | 13 | (52) |
Offsetting Derivative Liabilities | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (137) | (134) |
Gross amounts not offset on the consolidated balance sheets, financial instruments | 59 | 59 |
Gross amounts not offset on the consolidated balance sheets, collateral received/pledged | 56 | 63 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | (22) | (12) |
Off-balance sheet securities collateral | 0 | 0 |
Net amount after securities collateral | $ (22) | $ (12) |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - Cash flow hedges - Derivatives designated as hedges - Foreign currency swaps - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Foreign currency swap gains (losses) | $ 101,000,000 | $ (33,000,000) | $ 45,000,000 | $ (38,000,000) |
Foreign currency swap gain (loss) reclassified to income | 0 | $ 0 | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 0 |
Variable Interest Entities Vari
Variable Interest Entities Variable Interest Entities - Change in unrealized holding gains (losses) (Details) - Related Party - Variable Interest Entities - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Variable Interest Entity [Line Items] | ||||
Debt Securities, Trading, Unrealized Gain (Loss) | $ 1 | $ 1 | $ 1 | $ 1 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ (14) | $ 9 | $ (39) | $ 5 |
Variable Interest Entities - Fa
Variable Interest Entities - Fair Value Hierarchy of Consolidated VIEs (Details) - Recurring - Variable Interest Entities - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Level 1 | ||
Investments | ||
Trading securities | $ 0 | $ 0 |
Equity securities | 137 | 212 |
Investment funds | 0 | 0 |
Cash and cash equivalents | 2 | 4 |
Total assets measured at fair value | 139 | 216 |
Level 2 | ||
Investments | ||
Trading securities | 0 | 0 |
Equity securities | 0 | 0 |
Investment funds | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Level 3 | ||
Investments | ||
Trading securities | 48 | 48 |
Equity securities | 26 | 28 |
Investment funds | 1 | 21 |
Cash and cash equivalents | 0 | 0 |
Total assets measured at fair value | 75 | 97 |
NAV | ||
Investments | ||
Investment funds | 541 | 528 |
Total assets measured at fair value | 541 | 528 |
Fair Value | ||
Investments | ||
Trading securities | 48 | 48 |
Equity securities | 163 | 240 |
Investment funds | 542 | 549 |
Cash and cash equivalents | 2 | 4 |
Total assets measured at fair value | $ 755 | $ 841 |
Variable Interest Entities - As
Variable Interest Entities - Assets for Which Fair Value Option Was Elected (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Variable Interest Entity [Line Items] | ||||
Total gains (losses) | $ (15) | $ 29 | $ (24) | $ 26 |
Variable Interest Entities | ||||
Variable Interest Entity [Line Items] | ||||
Total gains (losses) | 4 | 1 | 10 | 6 |
Variable Interest Entities | Trading securities | ||||
Variable Interest Entity [Line Items] | ||||
Total gains (losses) | 1 | 1 | 1 | 1 |
Variable Interest Entities | Investment funds | ||||
Variable Interest Entity [Line Items] | ||||
Total gains (losses) | $ 3 | $ 0 | $ 9 | $ 5 |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Value and Exposure of Non-Consolidated VIEs (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Carrying Value | $ 26,175 | $ 24,315 |
Maximum Loss Exposure | 28,073 | 25,298 |
Investment funds | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 593 | 571 |
Maximum Loss Exposure | 594 | 594 |
Investment funds | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 1,836 | 1,310 |
Maximum Loss Exposure | 3,644 | 2,598 |
Investment funds | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 633 | 699 |
Maximum Loss Exposure | 1,242 | 1,036 |
Debt Securities [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 1,234 | 713 |
Maximum Loss Exposure | 1,321 | 792 |
Debt Securities [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 21,879 | 21,022 |
Maximum Loss Exposure | $ 21,272 | $ 20,278 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Investment Funds (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Investment funds | $ 3,062 | $ 2,580 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 633 | $ 699 |
Percent of total | 100.00% | 100.00% |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Private equity | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 237 | $ 271 |
Percent of total | 37.40% | 38.80% |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Real estate and other real assets | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 179 | $ 161 |
Percent of total | 28.30% | 23.00% |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Natural resources | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 4 | $ 4 |
Percent of total | 0.60% | 0.60% |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Hedge funds | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 53 | $ 61 |
Percent of total | 8.40% | 8.70% |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Credit funds | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 160 | $ 202 |
Percent of total | 25.30% | 28.90% |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 1,836 | $ 1,310 |
Percent of total | 100.00% | 100.00% |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Private equity – other | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 441 | $ 180 |
Percent of total | 24.00% | 13.70% |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Real estate and other real assets | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 499 | $ 297 |
Percent of total | 27.20% | 22.70% |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Natural resources | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 91 | $ 74 |
Percent of total | 5.00% | 5.60% |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Hedge funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 98 | $ 93 |
Percent of total | 5.30% | 7.10% |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Credit funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 275 | $ 263 |
Percent of total | 15.00% | 20.10% |
Variable Interest Entities | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 593 | $ 571 |
Percent of total | 100.00% | 100.00% |
Variable Interest Entities | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 542 | $ 571 |
Variable Interest Entities | Real estate and other real assets | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 51 | $ 22 |
Percent of total | 8.60% | 3.80% |
Variable Interest Entities | Credit funds | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 1 | $ 21 |
Percent of total | 0.20% | 3.70% |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Private equity | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 0 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Real estate and other real assets | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 1 year |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Natural resources | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 1 year |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Hedge funds | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 0 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Credit funds | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 0 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Private equity – other | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 0 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Real estate and other real assets | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 0 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Natural resources | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 3 years | 4 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Hedge funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 9 years |
Minimum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Credit funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 2 years |
Minimum | Variable Interest Entities | Real estate and other real assets | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 2 years |
Minimum | Variable Interest Entities | Credit funds | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 0 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Private equity | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 6 years | 7 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Real estate and other real assets | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 7 years | 7 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Natural resources | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 0 years | 1 year |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Hedge funds | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 2 years | 3 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Credit funds | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 4 years | 5 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Private equity – other | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 6 years | 10 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Real estate and other real assets | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 10 years | 7 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Natural resources | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 4 years | 6 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Hedge funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 11 years | 9 years |
Maximum | Consolidated Entity Excluding Variable Interest Entities (VIE) | Credit funds | Related Party | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 3 years | 4 years |
Maximum | Variable Interest Entities | Real estate and other real assets | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 4 years | 3 years |
Maximum | Variable Interest Entities | Credit funds | ||
Variable Interest Entity [Line Items] | ||
Life of underlying funds | 2 years | 3 years |
A-A Mortgage Opportunities, LP | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment including loans | $ 604 | $ 455 |
A-A Mortgage Opportunities, LP | Consolidated Entity Excluding Variable Interest Entities (VIE) | Private equity | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 432 | $ 403 |
Percent of total | 23.50% | 30.80% |
Life of underlying funds | 4 years | 5 years |
MidCap Holdings | Related Party | ||
Variable Interest Entity [Line Items] | ||
Investment including loans | $ 779 | $ 766 |
MidCap Holdings | Variable Interest Entities | Private equity | ||
Variable Interest Entity [Line Items] | ||
Investment funds | $ 541 | $ 528 |
Percent of total | 91.20% | 92.50% |
Variable Interest Entities - In
Variable Interest Entities - Investments by Ownership Percentage (Details) - Investment funds - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Equity method investment funds | $ 2,251 | $ 1,856 |
100% | ||
Variable Interest Entity [Line Items] | ||
Equity method investment funds | 15 | 35 |
50% – 99% | ||
Variable Interest Entity [Line Items] | ||
Equity method investment funds | 837 | 520 |
Greater than 3% – 49% | ||
Variable Interest Entity [Line Items] | ||
Equity method investment funds | $ 1,399 | $ 1,301 |
Variable Interest Entities - 62
Variable Interest Entities - Investments by Ownership Percentage with Fair Value Election (Details) - Investment funds - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Fair value option investment funds | $ 811 | $ 724 |
50% – 99% | ||
Variable Interest Entity [Line Items] | ||
Fair value option investment funds | 0 | 0 |
Greater than 3% – 49% | ||
Variable Interest Entity [Line Items] | ||
Fair value option investment funds | 678 | 590 |
3% or less | ||
Variable Interest Entity [Line Items] | ||
Fair value option investment funds | $ 133 | $ 134 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Variable Interest Entity [Line Items] | |||
Assets, Level 1 to Level 2 transfers | $ 0 | $ 0 | |
Assets, Level 2 to Level 1 transfers | 0 | 0 | |
Liabilities, Level 2 to Level 1 transfers | 0 | 0 | |
Liabilities, Level 1 to Level 2 transfers | 0 | 0 | |
Variable Interest Entities | |||
Variable Interest Entity [Line Items] | |||
Assets, Level 1 to Level 2 transfers | 0 | 0 | |
Assets, Level 2 to Level 1 transfers | 0 | 0 | |
Liabilities, Level 2 to Level 1 transfers | 0 | 0 | |
Liabilities, Level 1 to Level 2 transfers | 0 | $ 0 | |
Investment funds | Variable Interest Entities | |||
Variable Interest Entity [Line Items] | |||
Investment funds | $ 22,000,000 | ||
Related Party | Variable Interest Entities | |||
Variable Interest Entity [Line Items] | |||
Equity securities | 163,000,000 | 240,000,000 | |
Related Party | MidCap Holdings | |||
Variable Interest Entity [Line Items] | |||
Participation interest liability | 14,000,000 | 14,000,000 | |
Investment Owned, Balance, Principal Amount | $ 245,000,000 | $ 245,000,000 |
Variable Interest Entities Va64
Variable Interest Entities Variable Interest Entities - Rollforward of Level 3 Fair Value (Details) - Variable Interest Entities - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Variable Interest Entity [Line Items] | ||||
Beginning balance | $ 95 | $ 120 | $ 97 | $ 131 |
Total realized and unrealized gains (losses) included in income | (4) | (1) | (4) | (12) |
Purchases | 0 | 1 | 0 | 1 |
Sales | (16) | (7) | (18) | (7) |
Transfers in (out) | 0 | 0 | 0 | 0 |
Ending balance | 75 | 113 | 75 | 113 |
Total gains (losses) included in earnings | (4) | (2) | (4) | (12) |
Investment funds | ||||
Variable Interest Entity [Line Items] | ||||
Beginning balance | 20 | 38 | 21 | 38 |
Total realized and unrealized gains (losses) included in income | (3) | 0 | (3) | 0 |
Purchases | 0 | 1 | 0 | 1 |
Sales | (16) | (7) | (17) | (7) |
Transfers in (out) | 0 | 0 | 0 | 0 |
Ending balance | 1 | 32 | 1 | 32 |
Total gains (losses) included in earnings | (3) | 0 | (3) | 0 |
Trading securities | ||||
Variable Interest Entity [Line Items] | ||||
Beginning balance | 47 | 50 | 48 | 50 |
Total realized and unrealized gains (losses) included in income | 1 | 1 | 1 | 1 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | (1) | 0 |
Transfers in (out) | 0 | 0 | 0 | 0 |
Ending balance | 48 | 51 | 48 | 51 |
Total gains (losses) included in earnings | 1 | 0 | 1 | 1 |
Equity securities | ||||
Variable Interest Entity [Line Items] | ||||
Beginning balance | 28 | 32 | 28 | 43 |
Total realized and unrealized gains (losses) included in income | (2) | (2) | (2) | (13) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Transfers in (out) | 0 | 0 | 0 | 0 |
Ending balance | 26 | 30 | 26 | 30 |
Total gains (losses) included in earnings | $ (2) | $ (2) | $ (2) | $ (13) |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Mortgage loans | $ 7,609 | $ 6,233 |
Restricted cash | 178 | 105 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Assets | ||
Available-for-sale securities | 60,718 | |
Restricted cash | 178 | |
Reinsurance recoverable | 4,847 | 4,972 |
Liabilities | ||
Interest sensitive contract liabilities | 87,052 | 67,708 |
Future policy benefits | 13,970 | 17,507 |
Derivative liabilities | 137 | 134 |
Funds withheld liability | 389 | 407 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Assets | ||
Available-for-sale securities | 956 | 406 |
Trading securities | 278 | 307 |
Funds withheld at interest | 14,221 | 0 |
Short-term investments | 172 | 52 |
Other investments | 388 | 238 |
Reinsurance recoverable | 4 | 0 |
Liabilities | ||
Interest sensitive contract liabilities | 17,742 | 0 |
Future policy benefits | 928 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 472 | 360 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 484 | 46 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ||
Assets | ||
Investment funds | 134 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | ||
Assets | ||
Available-for-sale securities | 140 | 26 |
Trading securities | 3 | 3 |
Equity securities | 20 | 18 |
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Derivative assets | 3 | 7 |
Short-term investments | 58 | 40 |
Other investments | 0 | |
Cash and cash equivalents | 3,608 | 4,888 |
Restricted cash | 178 | 105 |
Reinsurance recoverable | 0 | 0 |
Total assets measured at fair value | 4,010 | 5,087 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Related Party | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Investment funds | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Unit-linked contracts | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 0 | 0 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | U.S. government and agencies | ||
Assets | ||
Available-for-sale securities | 140 | 26 |
Trading securities | 3 | 3 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | U.S. state, municipal and political subdivisions | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Foreign governments | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Corporate | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | CLO | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | ABS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | CMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | RMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | ||
Assets | ||
Available-for-sale securities | 56,724 | 58,445 |
Trading securities | 1,610 | 1,740 |
Equity securities | 194 | 764 |
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Derivative assets | 1,926 | 2,544 |
Short-term investments | 231 | 161 |
Other investments | 50 | |
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Reinsurance recoverable | 0 | 0 |
Total assets measured at fair value | 61,768 | 64,314 |
Liabilities | ||
Derivative liabilities | 132 | 129 |
Total liabilities measured at fair value | 136 | 639 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Related Party | ||
Assets | ||
Available-for-sale securities | 871 | 406 |
Trading securities | 0 | 202 |
Investment funds | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Unit-linked contracts | ||
Liabilities | ||
Interest sensitive contract liabilities | 488 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 0 | 0 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 4 | 22 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | U.S. government and agencies | ||
Assets | ||
Available-for-sale securities | 2 | 36 |
Trading securities | 2 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | U.S. state, municipal and political subdivisions | ||
Assets | ||
Available-for-sale securities | 1,271 | 1,165 |
Trading securities | 110 | 121 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Foreign governments | ||
Assets | ||
Available-for-sale securities | 199 | 2,683 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Corporate | ||
Assets | ||
Available-for-sale securities | 35,892 | 36,082 |
Trading securities | 1,334 | 1,475 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | CLO | ||
Assets | ||
Available-for-sale securities | 5,071 | 5,020 |
Trading securities | 0 | 10 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 433 | 360 |
Trading securities | 0 | 27 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | ABS | ||
Assets | ||
Available-for-sale securities | 3,265 | 2,510 |
Trading securities | 0 | 17 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 438 | 46 |
Trading securities | 0 | 175 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | CMBS | ||
Assets | ||
Available-for-sale securities | 2,127 | 1,884 |
Trading securities | 49 | 51 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | RMBS | ||
Assets | ||
Available-for-sale securities | 8,897 | 9,065 |
Trading securities | 115 | 66 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ||
Assets | ||
Available-for-sale securities | 2,898 | 2,541 |
Trading securities | 440 | 453 |
Equity securities | 2 | 8 |
Mortgage loans | 38 | 41 |
Investment funds | 31 | 41 |
Derivative assets | 0 | 0 |
Short-term investments | 0 | 0 |
Other investments | 0 | |
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Reinsurance recoverable | 1,717 | 1,824 |
Total assets measured at fair value | 5,916 | 5,325 |
Liabilities | ||
Derivative liabilities | 5 | 5 |
Total liabilities measured at fair value | 11,262 | 10,874 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Related Party | ||
Assets | ||
Available-for-sale securities | 85 | 0 |
Trading securities | 278 | 105 |
Investment funds | 105 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 943 | 1,005 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Unit-linked contracts | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 1,490 | 1,625 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 759 | 803 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 150 | 312 |
Liabilities | ||
Interest sensitive contract liabilities | 8,065 | 7,436 |
Funds withheld liability | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | 162 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | U.S. government and agencies | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | U.S. state, municipal and political subdivisions | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 17 | 17 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Foreign governments | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Corporate | ||
Assets | ||
Available-for-sale securities | 962 | 578 |
Trading securities | 4 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | CLO | ||
Assets | ||
Available-for-sale securities | 281 | 64 |
Trading securities | 26 | 17 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 39 | 0 |
Trading securities | 114 | 105 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ABS | ||
Assets | ||
Available-for-sale securities | 1,451 | 1,461 |
Trading securities | 89 | 77 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 46 | 0 |
Trading securities | 164 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | CMBS | ||
Assets | ||
Available-for-sale securities | 197 | 137 |
Trading securities | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | RMBS | ||
Assets | ||
Available-for-sale securities | 7 | 301 |
Trading securities | 304 | 342 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | NAV | ||
Assets | ||
Investment funds | 95 | 104 |
Total assets measured at fair value | 188 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | NAV | Related Party | ||
Assets | ||
Investment funds | 93 | 30 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Assets | ||
Mortgage loans | 7,713 | 6,342 |
Investment funds | 507 | 554 |
Funds withheld at interest | 7,550 | 6,773 |
Other investments | 73 | 133 |
Total assets measured at fair value | 32,415 | 15,871 |
Liabilities | ||
Interest sensitive contract liabilities | 43,972 | 31,656 |
Funds withheld liability | 385 | 385 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Assets | ||
Investment funds | 1,638 | 1,280 |
Funds withheld at interest | 14,059 | |
Other investments | 371 | 259 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | 0 |
Other investments | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 0 | 0 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 1 | Related Party | ||
Assets | ||
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | |
Other investments | 0 | 0 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | 0 |
Other investments | 0 | 58 |
Total assets measured at fair value | 504 | 588 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 385 | 385 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 2 | Related Party | ||
Assets | ||
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | |
Other investments | 0 | 0 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 3 | ||
Assets | ||
Mortgage loans | 7,713 | 6,342 |
Investment funds | 0 | 0 |
Funds withheld at interest | 7,550 | 6,773 |
Other investments | 73 | 75 |
Total assets measured at fair value | 29,766 | 13,449 |
Liabilities | ||
Interest sensitive contract liabilities | 43,972 | 31,656 |
Funds withheld liability | 0 | 0 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 3 | Related Party | ||
Assets | ||
Investment funds | 0 | 0 |
Funds withheld at interest | 14,059 | |
Other investments | 371 | 259 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | NAV | ||
Assets | ||
Investment funds | 2,145 | 1,834 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | NAV | Related Party | ||
Assets | ||
Investment funds | 1,638 | 1,280 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ||
Assets | ||
Available-for-sale securities | 59,762 | 61,012 |
Trading securities | 2,053 | 2,196 |
Equity securities | 216 | 790 |
Mortgage loans | 38 | 41 |
Investment funds | 126 | 145 |
Derivative assets | 1,929 | 2,551 |
Short-term investments | 289 | 201 |
Other investments | 50 | |
Cash and cash equivalents | 3,608 | 4,888 |
Restricted cash | 178 | 105 |
Reinsurance recoverable | 1,717 | 1,824 |
Total assets measured at fair value | 71,882 | 74,860 |
Liabilities | ||
Interest sensitive contract liabilities | 9,008 | 8,929 |
Future policy benefits | 2,249 | 2,428 |
Derivative liabilities | 137 | 134 |
Funds withheld liability | 4 | 22 |
Total liabilities measured at fair value | 11,398 | 11,513 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Related Party | ||
Assets | ||
Available-for-sale securities | 956 | 406 |
Trading securities | 278 | 307 |
Investment funds | 198 | 30 |
Funds withheld at interest | 162 | 0 |
Short-term investments | 172 | 52 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 943 | 1,005 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Unit-linked contracts | ||
Liabilities | ||
Interest sensitive contract liabilities | 488 | |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 1,490 | 1,625 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 759 | 803 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 150 | 312 |
Liabilities | ||
Interest sensitive contract liabilities | 8,065 | 7,436 |
Funds withheld liability | 4 | 22 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | 162 | |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | U.S. government and agencies | ||
Assets | ||
Available-for-sale securities | 142 | 62 |
Trading securities | 5 | 3 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | U.S. state, municipal and political subdivisions | ||
Assets | ||
Available-for-sale securities | 1,271 | 1,165 |
Trading securities | 127 | 138 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Foreign governments | ||
Assets | ||
Available-for-sale securities | 199 | 2,683 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Corporate | ||
Assets | ||
Available-for-sale securities | 36,854 | 36,660 |
Trading securities | 1,338 | 1,475 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | CLO | ||
Assets | ||
Available-for-sale securities | 5,352 | 5,084 |
Trading securities | 26 | 27 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 472 | 360 |
Trading securities | 114 | 132 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ABS | ||
Assets | ||
Available-for-sale securities | 4,716 | 3,971 |
Trading securities | 89 | 94 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 484 | 46 |
Trading securities | 164 | 175 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | CMBS | ||
Assets | ||
Available-for-sale securities | 2,324 | 2,021 |
Trading securities | 49 | 51 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | RMBS | ||
Assets | ||
Available-for-sale securities | 8,904 | 9,366 |
Trading securities | 419 | 408 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Related Party | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Related Party | ||
Assets | ||
Short-term investments | 162 | 52 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Related Party | ||
Assets | ||
Short-term investments | 10 | $ 0 |
Derivatives not designated as hedges | Funds withheld at interest | Consolidated Entity Excluding Variable Interest Entities (VIE) | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 312 | |
Liabilities | ||
Funds withheld liability | $ 4 |
Fair Value - Fair Value Option
Fair Value - Fair Value Option (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Total gains (losses) | $ (15,000,000) | $ 29,000,000 | $ (24,000,000) | $ 26,000,000 | |
Assets, Level 1 to Level 2 transfers | 0 | 0 | 0 | 0 | |
Mortgage loans | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value option, loans, 90 days or more past due | 0 | 0 | $ 0 | ||
Unpaid principal balance | 37,000,000 | 37,000,000 | 40,000,000 | ||
Mark to fair value | 1,000,000 | 1,000,000 | 1,000,000 | ||
Fair value | 38,000,000 | 38,000,000 | $ 41,000,000 | ||
Investment related gains (losses) | Trading securities | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Total gains (losses) | (76,000,000) | 41,000,000 | (165,000,000) | 27,000,000 | |
Net investment income | Investment funds | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Total gains (losses) | 10,000,000 | 7,000,000 | 6,000,000 | 14,000,000 | |
Future policy and other policy benefits | Future policy benefits | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Total gains (losses) | $ 51,000,000 | $ (19,000,000) | $ 135,000,000 | $ (15,000,000) |
Fair Value Fair Value - Reconci
Fair Value Fair Value - Reconciliation of Level 3 Financial Instruments (Details) - Consolidated Entity Excluding Variable Interest Entities (VIE) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | $ 5,003 | $ 4,308 | $ 5,325 | $ 4,164 |
Total realized and unrealized gains (losses) included in income | 80 | 123 | (151) | 248 |
Total realized and unrealized gains (losses) included in OCI | (13) | 13 | (35) | 33 |
Purchases, issuances, sales and settlements, net | 1,022 | 93 | 1,028 | 159 |
Transfers in | 199 | 333 | 307 | 324 |
Transfers (out) | (375) | (396) | (558) | (454) |
Ending balance | 5,916 | 4,474 | 5,916 | 4,474 |
Total gains (losses) included in earnings | (2) | 6 | (6) | 0 |
Beginning balance | (10,498) | (9,125) | (10,874) | (8,573) |
Total realized and unrealized gains (losses) included in income | (7) | (363) | 425 | (836) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | (757) | (112) | (813) | (191) |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | (11,262) | (9,600) | (11,262) | (9,600) |
Total gains (losses) included in earnings | 0 | 0 | 0 | 1 |
Reinsurance Recoverable Including Reinsurance Premium Paid [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 1,713 | 1,738 | 1,824 | 1,692 |
Total realized and unrealized gains (losses) included in income | 4 | 44 | (107) | 90 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | 1,717 | 1,782 | 1,717 | 1,782 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Mortgage loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 41 | 44 | 41 | 44 |
Total realized and unrealized gains (losses) included in income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | (3) | (1) | (3) | (1) |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | 38 | 43 | 38 | 43 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Investment funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 25 | 41 | ||
Total realized and unrealized gains (losses) included in income | 6 | (3) | ||
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | ||
Purchases, issuances, sales and settlements, net | 0 | (7) | ||
Transfers in | 0 | 0 | ||
Transfers (out) | 0 | 0 | ||
Ending balance | 31 | 31 | ||
Total gains (losses) included in earnings | 6 | (3) | ||
Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 0 | 5 | 8 | 5 |
Total realized and unrealized gains (losses) included in income | 1 | 0 | 1 | 0 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 1 | 1 | (7) | 1 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | 2 | 6 | 2 | 6 |
Total gains (losses) included in earnings | 1 | 0 | 0 | 0 |
Equity securities | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Purchases, issuances, sales and settlements, net | 1 | |||
Embedded derivatives | Funds withheld at interest | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 207 | 212 | 312 | 140 |
Total realized and unrealized gains (losses) included in income | (57) | 67 | (162) | 139 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | 150 | 279 | 150 | 279 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Related Party | Short-term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 0 | 20 | 0 | 0 |
Total realized and unrealized gains (losses) included in income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 10 | 8 | 10 | 28 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | 10 | 28 | 10 | 28 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Related Party | Investment funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 111 | 0 | ||
Total realized and unrealized gains (losses) included in income | (6) | (3) | ||
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | ||
Purchases, issuances, sales and settlements, net | 0 | 108 | ||
Transfers in | 0 | 0 | ||
Transfers (out) | 0 | 0 | ||
Ending balance | 105 | 105 | ||
Total gains (losses) included in earnings | (6) | (3) | ||
Related Party | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 0 | |||
Total realized and unrealized gains (losses) included in income | 0 | |||
Total realized and unrealized gains (losses) included in OCI | 0 | |||
Purchases, issuances, sales and settlements, net | 0 | |||
Transfers in | 0 | |||
Transfers (out) | 0 | |||
Ending balance | 0 | 0 | ||
Total gains (losses) included in earnings | 0 | |||
Related Party | Embedded derivatives | Funds withheld at interest | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 0 | 0 | ||
Total realized and unrealized gains (losses) included in income | 162 | 162 | ||
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | ||
Purchases, issuances, sales and settlements, net | 0 | 0 | ||
Transfers in | 0 | 0 | ||
Transfers (out) | 0 | 0 | ||
Ending balance | 162 | 162 | ||
Total gains (losses) included in earnings | 0 | 0 | ||
RMBS | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 38 | 60 | 301 | 17 |
Total realized and unrealized gains (losses) included in income | 0 | 1 | 3 | 1 |
Total realized and unrealized gains (losses) included in OCI | 0 | 2 | (8) | 0 |
Purchases, issuances, sales and settlements, net | 0 | 6 | (19) | 6 |
Transfers in | 0 | 243 | 7 | 296 |
Transfers (out) | (31) | 0 | (277) | (8) |
Ending balance | 7 | 312 | 7 | 312 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
RMBS | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 321 | 342 | 96 | |
Total realized and unrealized gains (losses) included in income | (17) | (38) | (9) | |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | |
Purchases, issuances, sales and settlements, net | 0 | 22 | 0 | 24 |
Transfers in | 0 | 0 | 0 | |
Transfers (out) | 0 | 0 | (11) | |
Ending balance | 304 | 100 | 304 | 100 |
Total gains (losses) included in earnings | 3 | 2 | (1) | |
ABS | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 1,294 | 1,222 | 1,461 | 1,160 |
Total realized and unrealized gains (losses) included in income | 3 | 5 | 5 | 9 |
Total realized and unrealized gains (losses) included in OCI | (9) | 3 | (17) | 17 |
Purchases, issuances, sales and settlements, net | 273 | 11 | 157 | 42 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | (110) | (148) | (155) | (135) |
Ending balance | 1,451 | 1,093 | 1,451 | 1,093 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
ABS | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 0 | 82 | 77 | |
Total realized and unrealized gains (losses) included in income | 0 | (4) | (4) | |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | |
Purchases, issuances, sales and settlements, net | 0 | 22 | 0 | |
Transfers in | 89 | 0 | 16 | |
Transfers (out) | 0 | 0 | 0 | |
Ending balance | 89 | 100 | 89 | 100 |
Total gains (losses) included in earnings | 0 | 0 | (3) | |
ABS | Related Party | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 0 | 0 | 56 | |
Total realized and unrealized gains (losses) included in income | 0 | 0 | 0 | |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 1 | |
Purchases, issuances, sales and settlements, net | 46 | 46 | (4) | |
Transfers in | 0 | 0 | 0 | |
Transfers (out) | 0 | 0 | (53) | |
Ending balance | 46 | 0 | 46 | 0 |
Total gains (losses) included in earnings | 0 | 0 | 0 | |
ABS | Related Party | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 171 | 0 | ||
Total realized and unrealized gains (losses) included in income | (7) | 0 | ||
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | ||
Purchases, issuances, sales and settlements, net | 0 | 0 | ||
Transfers in | 0 | 164 | ||
Transfers (out) | 0 | 0 | ||
Ending balance | 164 | 164 | ||
Total gains (losses) included in earnings | (7) | 0 | ||
CLO | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 167 | 100 | 64 | 158 |
Total realized and unrealized gains (losses) included in income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) included in OCI | 0 | 4 | 2 | 9 |
Purchases, issuances, sales and settlements, net | 211 | 17 | 226 | 7 |
Transfers in | 32 | 11 | 17 | 11 |
Transfers (out) | (129) | (51) | (28) | (104) |
Ending balance | 281 | 81 | 281 | 81 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
CLO | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 1 | 17 | 43 | |
Total realized and unrealized gains (losses) included in income | 0 | (1) | (1) | |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | |
Purchases, issuances, sales and settlements, net | 0 | 0 | (15) | |
Transfers in | 26 | 10 | 0 | |
Transfers (out) | (1) | 0 | (5) | |
Ending balance | 26 | 22 | 26 | 22 |
Total gains (losses) included in earnings | 0 | 0 | 2 | |
CLO | Related Party | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 62 | 0 | ||
Total realized and unrealized gains (losses) included in income | 0 | 0 | ||
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | ||
Purchases, issuances, sales and settlements, net | 38 | 39 | ||
Transfers in | 0 | 0 | ||
Transfers (out) | (61) | 0 | ||
Ending balance | 39 | 39 | ||
Total gains (losses) included in earnings | 0 | 0 | ||
CLO | Related Party | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 91 | 131 | 105 | 195 |
Total realized and unrealized gains (losses) included in income | (1) | 5 | (2) | (3) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | (12) | (18) | (26) |
Transfers in | 24 | 31 | 29 | 0 |
Transfers (out) | 0 | (32) | 0 | (43) |
Ending balance | 114 | 123 | 114 | 123 |
Total gains (losses) included in earnings | 1 | 5 | 1 | (1) |
Corporate | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 681 | 490 | 578 | 370 |
Total realized and unrealized gains (losses) included in income | (8) | 3 | (3) | 4 |
Total realized and unrealized gains (losses) included in OCI | (5) | 4 | (9) | 10 |
Purchases, issuances, sales and settlements, net | 290 | 28 | 340 | 105 |
Transfers in | 28 | 0 | 64 | 0 |
Transfers (out) | (24) | (73) | (8) | (37) |
Ending balance | 962 | 452 | 962 | 452 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Corporate | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 0 | 27 | 0 | |
Total realized and unrealized gains (losses) included in income | 0 | 0 | 0 | |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | |
Purchases, issuances, sales and settlements, net | 4 | 0 | 4 | |
Transfers in | 0 | 0 | 0 | |
Transfers (out) | 0 | (5) | 0 | |
Ending balance | 4 | 22 | 4 | 22 |
Total gains (losses) included in earnings | 0 | 1 | 0 | |
CMBS | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 63 | 147 | 137 | 152 |
Total realized and unrealized gains (losses) included in income | 0 | 1 | 1 | 1 |
Total realized and unrealized gains (losses) included in OCI | 1 | 0 | (3) | (3) |
Purchases, issuances, sales and settlements, net | 152 | 13 | 152 | 13 |
Transfers in | 0 | 48 | 0 | 17 |
Transfers (out) | (19) | (87) | (90) | (58) |
Ending balance | 197 | 122 | 197 | 122 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Foreign governments | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 13 | 14 | ||
Total realized and unrealized gains (losses) included in income | 1 | 1 | ||
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | ||
Purchases, issuances, sales and settlements, net | 0 | (1) | ||
Transfers in | 0 | 0 | ||
Transfers (out) | 0 | 0 | ||
Ending balance | 14 | 14 | ||
Total gains (losses) included in earnings | 0 | 0 | ||
U.S. state, municipal and political subdivisions | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 5 | |||
Total realized and unrealized gains (losses) included in income | 16 | |||
Total realized and unrealized gains (losses) included in OCI | (1) | |||
Purchases, issuances, sales and settlements, net | (20) | |||
Transfers in | 0 | |||
Transfers (out) | 0 | |||
Ending balance | 0 | 0 | ||
Total gains (losses) included in earnings | 0 | |||
U.S. state, municipal and political subdivisions | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 17 | 17 | 17 | 17 |
Total realized and unrealized gains (losses) included in income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | 17 | 17 | 17 | 17 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Derivative Financial Instruments, Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | (5) | (7) | (5) | (7) |
Total realized and unrealized gains (losses) included in income | 0 | 1 | 0 | 1 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | (5) | (6) | (5) | (6) |
Total gains (losses) included in earnings | 0 | 0 | 0 | 1 |
Interest sensitive contract liabilities | Embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | (7,254) | (5,793) | (7,436) | (5,283) |
Total realized and unrealized gains (losses) included in income | (54) | (302) | 184 | (733) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | (757) | (112) | (813) | (191) |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | (8,065) | (6,207) | (8,065) | (6,207) |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Universal life | Interest sensitive contract liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | (934) | (910) | (1,005) | (883) |
Total realized and unrealized gains (losses) included in income | (9) | (44) | 62 | (71) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | (943) | (954) | (943) | (954) |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
AmerUs Closed Block | Future policy benefits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | (1,541) | (1,602) | (1,625) | (1,606) |
Total realized and unrealized gains (losses) included in income | 51 | (19) | 135 | (15) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | (1,490) | (1,621) | (1,490) | (1,621) |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
ILICO Closed Block and life benefits | Future policy benefits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | (764) | (813) | (803) | (794) |
Total realized and unrealized gains (losses) included in income | 5 | 1 | 44 | (18) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | (759) | (812) | (759) | (812) |
Total gains (losses) included in earnings | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value - Gross Components o
Fair Value - Gross Components of Purchases, Sales, Issuances and Settlements, net (Details) - Consolidated Entity Excluding Variable Interest Entities (VIE) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | $ 1,139 | $ 204 | $ 1,343 | $ 394 |
Issuances | 0 | 0 | 0 | |
Sales | (32) | (18) | (94) | (45) |
Settlements | (85) | (93) | (221) | (190) |
Purchases, (Sales), Issuances, (Settlements) | 1,022 | 93 | 1,028 | 159 |
Purchases | 0 | 0 | 0 | 0 |
Issuances | (858) | (160) | (984) | (270) |
Sales | 0 | 0 | 0 | 0 |
Settlements | 101 | 48 | 171 | 79 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | (757) | (112) | (813) | (191) |
Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 1 | 1 | 1 | |
Sales | 0 | 0 | (8) | |
Purchases, (Sales), Issuances, (Settlements) | 1 | 1 | (7) | 1 |
Equity securities | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases, (Sales), Issuances, (Settlements) | 0 | |||
Investment funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Settlements | (7) | |||
Purchases, (Sales), Issuances, (Settlements) | (7) | |||
Investment funds | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 108 | |||
Purchases, (Sales), Issuances, (Settlements) | 108 | |||
U.S. state, municipal and political subdivisions | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 0 | |||
Sales | 0 | |||
Settlements | (20) | |||
Purchases, (Sales), Issuances, (Settlements) | (20) | |||
U.S. state, municipal and political subdivisions | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 | 0 | 0 |
Foreign governments | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 0 | |||
Sales | 0 | |||
Settlements | (1) | |||
Purchases, (Sales), Issuances, (Settlements) | 0 | (1) | ||
Corporate | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 300 | 30 | 358 | 110 |
Sales | (2) | (1) | (5) | (2) |
Settlements | (8) | (1) | (13) | (3) |
Purchases, (Sales), Issuances, (Settlements) | 290 | 28 | 340 | 105 |
Corporate | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 4 | 4 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Purchases, (Sales), Issuances, (Settlements) | 4 | 0 | 4 | |
CLO | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 211 | 24 | 231 | 24 |
Sales | 0 | (5) | (5) | (2) |
Settlements | 0 | (2) | 0 | (15) |
Purchases, (Sales), Issuances, (Settlements) | 211 | 17 | 226 | 7 |
CLO | AFS securities | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 38 | 39 | ||
Purchases, (Sales), Issuances, (Settlements) | 38 | 39 | ||
CLO | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 7 | 0 | ||
Sales | (7) | (15) | ||
Settlements | 0 | 0 | ||
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 | (15) | |
CLO | Trading securities | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 30 | 0 | 30 | 0 |
Sales | (30) | (12) | (48) | (26) |
Settlements | 0 | 0 | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 0 | (12) | (18) | (26) |
ABS | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 347 | 99 | 356 | 182 |
Sales | 0 | 0 | (21) | 0 |
Settlements | (74) | (88) | (178) | (140) |
Purchases, (Sales), Issuances, (Settlements) | 273 | 11 | 157 | 42 |
ABS | AFS securities | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 46 | 46 | 5 | |
Sales | 0 | 0 | 0 | |
Settlements | 0 | 0 | (9) | |
Purchases, (Sales), Issuances, (Settlements) | 46 | 46 | (4) | |
ABS | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases, (Sales), Issuances, (Settlements) | 0 | 22 | 0 | |
ABS | Trading securities | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 | ||
RMBS | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 7 | 0 | 7 | |
Settlements | (1) | (19) | (1) | |
Purchases, (Sales), Issuances, (Settlements) | 0 | 6 | (19) | 6 |
RMBS | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 22 | 24 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Purchases, (Sales), Issuances, (Settlements) | 0 | 22 | 0 | 24 |
CMBS | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 152 | 13 | 153 | 13 |
Settlements | 0 | 0 | (1) | 0 |
Purchases, (Sales), Issuances, (Settlements) | 152 | 13 | 152 | 13 |
AFS securities | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 1 | |||
Sales | 0 | |||
Purchases, (Sales), Issuances, (Settlements) | 1 | |||
Short-term Investments | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 10 | 8 | 10 | 28 |
Issuances | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 10 | 8 | 10 | 28 |
Mortgage loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Settlements | (3) | (1) | (3) | (1) |
Purchases, (Sales), Issuances, (Settlements) | (3) | (1) | (3) | (1) |
Interest sensitive contract liabilities | Embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 0 | 0 | 0 | 0 |
Issuances | (858) | (160) | (984) | (270) |
Sales | 0 | 0 | 0 | 0 |
Settlements | 101 | 48 | 171 | 79 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | $ (757) | $ (112) | $ (813) | $ (191) |
Fair Value - Summary of Unobser
Fair Value - Summary of Unobservable Inputs for the Embedded Derivatives of Interest Sensitive Contract Liabilities (Details) $ in Millions | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Non-performance risk | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.004 | 0.002 |
Non-performance risk | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.014 | 0.012 |
Option budget | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.008 | 0.007 |
Option budget | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.037 | 0.037 |
Surrender rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.047 | 0.015 |
Surrender rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.110 | 0.194 |
Embedded derivatives | Interest sensitive contract liabilities | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total liabilities measured at fair value | $ 8,065 | $ 7,436 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Mortgage loans | $ 7,609 | $ 6,233 |
Investment funds | 3,062 | 2,580 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Liabilities | ||
Interest sensitive contract liabilities | 87,052 | 67,708 |
Short-term debt | 183 | 0 |
Long-term debt | 991 | 0 |
Funds withheld liability | 389 | 407 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Carrying Value | ||
Assets | ||
Mortgage loans | 7,571 | 6,192 |
Investment funds | 507 | 554 |
Policy loans | 504 | 530 |
Funds withheld at interest | 7,550 | 6,773 |
Other investments | 73 | 133 |
Total assets measured at fair value | 32,290 | 15,700 |
Liabilities | ||
Interest sensitive contract liabilities | 46,586 | 31,586 |
Short-term debt | 183 | |
Long-term debt | 991 | |
Funds withheld liability | 385 | 385 |
Total liabilities not carried at fair value | 48,145 | 31,971 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Fair Value | ||
Assets | ||
Mortgage loans | 7,713 | 6,342 |
Investment funds | 507 | 554 |
Policy loans | 504 | 530 |
Funds withheld at interest | 7,550 | 6,773 |
Other investments | 73 | 133 |
Total assets measured at fair value | 32,415 | 15,871 |
Liabilities | ||
Interest sensitive contract liabilities | 43,972 | 31,656 |
Short-term Debt, Fair Value | 183 | |
Long-term debt | 924 | |
Funds withheld liability | 385 | 385 |
Total liabilities not carried at fair value | 45,464 | 32,041 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 1 | Fair Value | ||
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Policy loans | 0 | 0 |
Funds withheld at interest | 0 | 0 |
Other investments | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Long-term debt | 0 | |
Funds withheld liability | 0 | 0 |
Total liabilities not carried at fair value | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 3 | Fair Value | ||
Assets | ||
Mortgage loans | 7,713 | 6,342 |
Investment funds | 0 | 0 |
Policy loans | 0 | 0 |
Funds withheld at interest | 7,550 | 6,773 |
Other investments | 73 | 75 |
Total assets measured at fair value | 29,766 | 13,449 |
Liabilities | ||
Interest sensitive contract liabilities | 43,972 | 31,656 |
Long-term debt | 0 | |
Funds withheld liability | 0 | 0 |
Total liabilities not carried at fair value | 43,972 | 31,656 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | NAV | Fair Value | ||
Assets | ||
Investment funds | 2,145 | 1,834 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 2 | Fair Value | ||
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Policy loans | 504 | 530 |
Funds withheld at interest | 0 | 0 |
Other investments | 0 | 58 |
Total assets measured at fair value | 504 | 588 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Short-term Debt, Fair Value | 183 | |
Long-term debt | 924 | |
Funds withheld liability | 385 | 385 |
Total liabilities not carried at fair value | 1,492 | 385 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Assets | ||
Investment funds | 1,836 | 1,310 |
Funds withheld at interest | 14,221 | 0 |
Other investments | 388 | 238 |
Short-term investments | 172 | 52 |
Liabilities | ||
Interest sensitive contract liabilities | 17,742 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Carrying Value | ||
Assets | ||
Investment funds | 1,638 | 1,280 |
Funds withheld at interest | 14,059 | |
Other investments | 388 | 238 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Fair Value | ||
Assets | ||
Investment funds | 1,638 | 1,280 |
Funds withheld at interest | 14,059 | |
Other investments | 371 | 259 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Level 1 | Fair Value | ||
Assets | ||
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | |
Other investments | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Level 3 | Fair Value | ||
Assets | ||
Investment funds | 0 | 0 |
Funds withheld at interest | 14,059 | |
Other investments | 371 | 259 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | NAV | Fair Value | ||
Assets | ||
Investment funds | 1,638 | 1,280 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Level 2 | Fair Value | ||
Assets | ||
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | |
Other investments | 0 | 0 |
Investment funds | Consolidated Entity Excluding Variable Interest Entities (VIE) | NAV | Fair Value | ||
Assets | ||
Investment funds | $ 507 | $ 554 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Level 1 to Level 2 transfers | $ 0 | $ 0 | |
Assets, Level 2 to Level 1 transfers | 0 | 0 | |
Liabilities, Level 1 to Level 2 transfers | 0 | 0 | |
Liabilities, Level 2 to Level 1 transfers | 0 | $ 0 | |
Mortgage loans | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value option, loans, 90 days or more past due | $ 0 | $ 0 | |
Discount rate | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt Securities, Available-for-sale, Measurement Input | 0.06 | 0.02 | |
Discount rate | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt Securities, Available-for-sale, Measurement Input | 0.09 | 0.06 |
Deferred Acquisition Costs, D72
Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired - Roll Forward of DAC, DSI, and VOBA (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
DAC | ||
Beginning balance | $ 1,354 | $ 1,142 |
Additions | 1,607 | 248 |
Amortization | (81) | (98) |
Impact of unrealized investment (gains) losses | 100 | (65) |
Ending balance | 2,980 | 1,227 |
DSI | ||
Beginning balance | 520 | 462 |
Additions | 120 | 80 |
Amortization | (43) | (29) |
Impact of unrealized investment (gains) losses | 42 | (28) |
Ending balance | 639 | 485 |
VOBA | ||
Beginning balance | 1,056 | 1,336 |
Additions | 0 | 0 |
Amortization | (100) | (73) |
Impact of unrealized investment (gains) losses | 140 | (89) |
Ending balance | 1,096 | 1,174 |
Total | ||
Beginning balance | 2,930 | 2,940 |
Additions | 1,727 | 328 |
Amortization | (224) | (200) |
Impact of unrealized investment (gains) losses | 282 | (182) |
Ending balance | $ 4,715 | $ 2,886 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Apr. 25, 2018 | Jan. 09, 2018 | |
Debt Instrument [Line Items] | ||||
Interest Expense, Long-term Debt | $ 11 | $ 20 | ||
Federal Home Loan Bank of Des Moines | ||||
Debt Instrument [Line Items] | ||||
Other investments | $ 7 | |||
Senior notes | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | |||
Senior notes | Senior notes, price option 1 | Treasury Rate | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 25.00% | |||
Short-term debt | Federal Home Loan Bank Advances | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 183 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.16% |
Reinsurance - Transactions (Det
Reinsurance - Transactions (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 01, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Effects of Reinsurance [Line Items] | |||||
Liabilities | $ 106,250 | $ 90,539 | |||
Assets | 114,755 | 99,747 | |||
Deferred Policy Acquisition Costs | 2,980 | $ 1,354 | $ 1,227 | $ 1,142 | |
Coinsurance | VIAC | Related Party | |||||
Effects of Reinsurance [Line Items] | |||||
Liabilities | $ 3,667 | ||||
Assets | 3,478 | ||||
Coinsurance Agreement Payments | (86) | ||||
Net Cost of Reinsurance | 275 | ||||
Deferred Policy Acquisition Costs | 293 | ||||
Interest sensitive contract liabilities | (8) | ||||
Future policy benefits (related party: 2018 – $928; portion at fair value: 2018 – $2,249 and 2017 – $2,428) | (10) | ||||
Modco | VIAC | Related Party | |||||
Effects of Reinsurance [Line Items] | |||||
Liabilities | 14,911 | ||||
Assets | 14,332 | ||||
Coinsurance Agreement Payments | (320) | ||||
Net Cost of Reinsurance | 899 | ||||
Deferred Policy Acquisition Costs | 999 | ||||
Interest sensitive contract liabilities | (57) | ||||
Future policy benefits (related party: 2018 – $928; portion at fair value: 2018 – $2,249 and 2017 – $2,428) | (43) | ||||
Modco | RLI | |||||
Effects of Reinsurance [Line Items] | |||||
Liabilities | 457 | ||||
Assets | 445 | ||||
Coinsurance Agreement Payments | 12 | ||||
Net Cost of Reinsurance | 0 | ||||
Deferred Policy Acquisition Costs | 4 | ||||
Interest sensitive contract liabilities | (4) | ||||
Future policy benefits (related party: 2018 – $928; portion at fair value: 2018 – $2,249 and 2017 – $2,428) | 0 | ||||
Reinsurance Agreement [Member] | |||||
Effects of Reinsurance [Line Items] | |||||
Liabilities | 19,035 | ||||
Assets | 18,255 | ||||
Coinsurance Agreement Payments | $ (394) | ||||
Net Cost of Reinsurance | 1,174 | ||||
Deferred Policy Acquisition Costs | 1,296 | ||||
Interest sensitive contract liabilities | (69) | ||||
Future policy benefits (related party: 2018 – $928; portion at fair value: 2018 – $2,249 and 2017 – $2,428) | $ (53) |
Reinsurance - Premiums and futu
Reinsurance - Premiums and future policy benefits (Details) - Consolidated Entity Excluding Variable Interest Entities (VIE) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Effects of Reinsurance [Line Items] | ||||
Direct Premiums Earned | $ 114 | $ 423 | $ 432 | $ 528 |
Assumed Premiums Earned | 651 | 7 | 656 | 12 |
Ceded Premiums Earned | (39) | (51) | (84) | (109) |
Premiums Earned, Net | 726 | 379 | 1,004 | 431 |
Policyholder Benefits and Claims Incurred, Direct | 284 | 658 | 736 | 999 |
Policyholder Benefits and Claims Incurred, Assumed | 655 | 15 | 664 | 23 |
Policyholder Benefits and Claims Incurred, Ceded | (82) | (95) | (142) | (230) |
Policyholder Benefits and Claims Incurred, Net | $ 857 | $ 578 | $ 1,258 | $ 792 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of EPS (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Common Class A | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 220 | $ 177 | $ 422 | $ 337 |
Dilutive Securities, Effect on Basic Earnings Per Share | 4 | 6 | ||
Net income available to AHL shareholders – diluted | $ 220 | $ 181 | $ 422 | $ 343 |
Basic weighted average shares outstanding (in shares) | 164,458,153 | 106,299,230 | 156,619,575 | 92,350,216 |
Dilutive effect of stock compensation plans (in shares) | 369,955 | 2,706,762 | 381,446 | 3,242,336 |
Diluted weighted average shares outstanding (in shares) | 164,828,108 | 109,005,992 | 157,001,021 | 95,592,552 |
Earnings per share | ||||
Basic (in USD per share) | $ 1.34 | $ 1.66 | $ 2.70 | $ 3.66 |
Diluted (in USD per share) | $ 1.33 | $ 1.65 | $ 2.69 | $ 3.59 |
Common Class B | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 34 | $ 138 | $ 90 | $ 354 |
Dilutive Securities, Effect on Basic Earnings Per Share | 0 | 0 | ||
Net income available to AHL shareholders – diluted | $ 34 | $ 138 | $ 90 | $ 354 |
Basic weighted average shares outstanding (in shares) | 25,483,236 | 82,927,000 | 33,246,955 | 96,772,641 |
Dilutive effect of stock compensation plans (in shares) | 0 | 0 | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 25,483,236 | 82,927,000 | 33,246,955 | 96,772,641 |
Earnings per share | ||||
Basic (in USD per share) | $ 1.34 | $ 1.66 | $ 2.70 | $ 3.66 |
Diluted (in USD per share) | $ 1.34 | $ 1.66 | $ 2.70 | $ 3.66 |
Common Class M-1 | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 5 | $ 6 | $ 9 | $ 13 |
Dilutive Securities, Effect on Basic Earnings Per Share | 0 | 0 | ||
Net income available to AHL shareholders – diluted | $ 5 | $ 6 | $ 9 | $ 13 |
Basic weighted average shares outstanding (in shares) | 3,388,890 | 3,409,515 | 3,388,890 | 3,430,840 |
Dilutive effect of stock compensation plans (in shares) | 0 | 0 | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 3,388,890 | 3,409,515 | 3,388,890 | 3,430,840 |
Earnings per share | ||||
Basic (in USD per share) | $ 1.34 | $ 1.66 | $ 2.70 | $ 3.66 |
Diluted (in USD per share) | $ 1.34 | $ 1.66 | $ 2.70 | $ 3.66 |
Common Class M-2 | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 1 | $ 2 | $ 2 | $ 2 |
Dilutive Securities, Effect on Basic Earnings Per Share | 0 | |||
Net income available to AHL shareholders – diluted | $ 1 | $ 2 | $ 2 | $ 2 |
Basic weighted average shares outstanding (in shares) | 844,449 | 905,105 | 842,739 | 476,070 |
Dilutive effect of stock compensation plans (in shares) | 6,307 | 15,000 | 7,642 | 493,213 |
Diluted weighted average shares outstanding (in shares) | 850,756 | 920,105 | 850,381 | 969,283 |
Earnings per share | ||||
Basic (in USD per share) | $ 1.34 | $ 1.66 | $ 2.70 | $ 3.66 |
Diluted (in USD per share) | $ 1.33 | $ 1.64 | $ 2.67 | $ 1.80 |
Common Class M-3 | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 1 | $ 1 | $ 3 | $ 1 |
Dilutive Securities, Effect on Basic Earnings Per Share | 0 | |||
Net income available to AHL shareholders – diluted | $ 1 | $ 1 | $ 3 | $ 1 |
Basic weighted average shares outstanding (in shares) | 1,003,528 | 740,883 | 1,026,216 | 372,488 |
Dilutive effect of stock compensation plans (in shares) | 0 | 491,292 | 10,286 | 884,760 |
Diluted weighted average shares outstanding (in shares) | 1,003,528 | 1,232,175 | 1,036,502 | 1,257,248 |
Earnings per share | ||||
Basic (in USD per share) | $ 1.34 | $ 1.66 | $ 2.70 | $ 3.66 |
Diluted (in USD per share) | $ 1.34 | $ 1 | $ 2.67 | $ 1.08 |
Common Class M-4 | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 3 | $ 2 | $ 6 | $ 3 |
Dilutive Securities, Effect on Basic Earnings Per Share | 0 | |||
Net income available to AHL shareholders – diluted | $ 3 | $ 2 | $ 6 | $ 3 |
Basic weighted average shares outstanding (in shares) | 2,121,647 | 1,438,871 | 2,093,581 | 723,410 |
Dilutive effect of stock compensation plans (in shares) | 594,331 | 1,718,314 | 761,780 | 1,971,060 |
Diluted weighted average shares outstanding (in shares) | 2,715,978 | 3,157,185 | 2,855,361 | 2,694,470 |
Earnings per share | ||||
Basic (in USD per share) | $ 1.34 | $ 1.66 | $ 2.70 | $ 3.66 |
Diluted (in USD per share) | $ 1.04 | $ 0.76 | $ 1.98 | $ 0.98 |
Earnings Per Share - Shares Exc
Earnings Per Share - Shares Excluded from Dilutive Calculation (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from dilutive shares outstanding (in shares) | 35,358,665 | 76,099,805 | 35,358,665 | 75,241,974 |
Common Class A | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares (in shares) | 35,078,635 | 74,650,807 | 35,078,635 | 73,792,976 |
Shares excluded from dilutive shares outstanding due to performance conditions (in shares) | 280,030 | 1,448,998 | 280,030 | 1,448,998 |
Accumulated Other Comprehensi78
Accumulated Other Comprehensive Income - Detail of AOCI (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | $ 145 | $ 1,728 |
Deferred income taxes | (19) | (313) |
Accumulated other comprehensive income | 126 | 1,415 |
AFS securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | 328 | 2,577 |
DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustments on AFS securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | (116) | (744) |
Noncredit component of OTTI losses on AFS securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | (13) | (13) |
Hedging instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | (50) | (95) |
Pension adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | (2) | (5) |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | $ (2) | $ 8 |
Accumulated Other Comprehensi79
Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Income tax expense (benefit) | $ 109 | $ (168) | $ 292 | $ (279) | |
Other comprehensive income (loss), after tax | (459) | 387 | (1,247) | 693 | |
Adoption of ASU 2016-01 | $ (3) | ||||
Change in Accumulated Other Comprehensive Income | (459) | 387 | (1,289) | 693 | |
Unrealized investment gains (losses) on AFS securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before reclassifications, before tax | (889) | 735 | (2,171) | 1,251 | |
DAC, DSI, VOBA, and future policy benefit adjustment on AFS securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before reclassifications, before tax | 233 | (141) | 624 | (223) | |
Unrealized gains (losses) on AFS securities, including DAC, DSI, VOBA, and future policy benefits | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification adjustment for gains (losses) realized in net income | 11 | 12 | 30 | 27 | |
Income tax expense (benefit) | (138) | 179 | (301) | 292 | |
Other comprehensive income (loss), after tax | (529) | 403 | (1,276) | 709 | |
Noncredit component of OTTI losses on AFS securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before reclassifications, before tax | 1 | 1 | 0 | 2 | |
Reclassification adjustment for gains (losses) realized in net income | 1 | 2 | 0 | 2 | |
Other comprehensive income (loss), after tax | 0 | (1) | 0 | 0 | |
Unrealized gains (losses) on hedging instruments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before reclassifications, before tax | 101 | (33) | 45 | (38) | |
Income tax expense (benefit) | 29 | (11) | 9 | (13) | |
Other comprehensive income (loss), after tax | 72 | (22) | 36 | (25) | |
Pension adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before reclassifications, before tax | 0 | (1) | 3 | (1) | |
Foreign currency translation adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), after tax | (2) | 8 | (10) | 10 | |
Accounting Standards Update 2016-01 [Member] | AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of ASU 2016-01 | $ 0 | $ 0 | $ 0 | $ 0 | $ (42) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 20.00% | 3.00% | 19.00% | 4.00% |
Related Parties - Summary of As
Related Parties - Summary of Assets Sub-Advised by Affiliates (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Mortgage loans | $ 7,609 | $ 6,233 |
Investment funds | 3,062 | 2,580 |
Total assets | 114,755 | 99,747 |
Apollo affiliates | Related party | Assets sub-advised | ||
Related Party Transaction [Line Items] | ||
Mortgage loans | 2,701 | 2,232 |
Investment funds | 27 | 26 |
Trading securities | 115 | 121 |
Funds withheld at interest | 1,831 | 1,737 |
Other investments | 73 | 75 |
Total assets | $ 15,245 | $ 13,996 |
Percent of assets sub-advised by Apollo affiliates to total AAM-managed assets | 16.00% | 18.00% |
Apollo affiliates | Foreign governments | Related party | Assets sub-advised | ||
Related Party Transaction [Line Items] | ||
Available-for-sale securities | $ 151 | $ 152 |
Apollo affiliates | Corporate | Related party | Assets sub-advised | ||
Related Party Transaction [Line Items] | ||
Available-for-sale securities | 3,226 | 2,934 |
Apollo affiliates | CLO | Related party | Assets sub-advised | ||
Related Party Transaction [Line Items] | ||
Available-for-sale securities | 5,630 | 5,166 |
Apollo affiliates | ABS | Related party | Assets sub-advised | ||
Related Party Transaction [Line Items] | ||
Available-for-sale securities | 613 | 681 |
Apollo affiliates | CMBS | Related party | Assets sub-advised | ||
Related Party Transaction [Line Items] | ||
Available-for-sale securities | $ 878 | $ 872 |
Related Parties - Management Fe
Related Parties - Management Fees Incurred (Details) - Related party - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Asset management fees | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related parties | $ 72 | $ 64 | $ 142 | $ 126 |
Sub-advisory fees | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related parties | $ 14 | $ 12 | $ 27 | $ 28 |
Related Parties - Narrative (De
Related Parties - Narrative (Details) - Related Party - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Management fees associated with investment funds | |||||||
Related Party Transaction [Line Items] | |||||||
Due to related parties | $ 33 | $ 33 | $ 28 | ||||
Sub-advisory fees associated with investment funds management | |||||||
Related Party Transaction [Line Items] | |||||||
Due to related parties | 15 | 15 | 13 | ||||
A-A Mortgage Opportunities, LP | |||||||
Related Party Transaction [Line Items] | |||||||
Investment Owned, Balance, Principal Amount | 172 | 172 | $ 52 | ||||
Athene Asset Management | Portfolio Management Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Investment portfolio assets managed by affiliates | $ 81,750 | $ 81,750 | |||||
Investment portfolio assets, percentage rated at one or two by the NAIC | 86.00% | 86.00% | |||||
Management fee payable, percentage | 0.40% | ||||||
Amended Management Fee, Percentage, Assets up to $65,846 million | 0.40% | 0.40% | |||||
Amended Management Fee, Percentage, Assets in Excess of $65,846 million | 0.30% | 0.30% | |||||
Amended Management Fee, Threshold | $ 65,846 | $ 65,846 | |||||
Apollo affiliates | Sub-advisory fees associated with investment funds management | |||||||
Related Party Transaction [Line Items] | |||||||
Amended Sub-Advisory Fee, Percentage, Assets up to $10,000 million | 0.40% | 0.40% | |||||
Amended Sub-Advisory Fee, Percentage, Assets in excess of $10,000 million up to $12,441 million | 0.35% | 0.35% | |||||
Amended Sub-Advisory Fee, Percentage, Assets in excess of $12,441 million up to $16,000 million | 0.40% | 0.40% | |||||
Amended Sub-Advisory Fee, Percentage, Assets in excess of $16,000 million | 0.35% | 0.35% | |||||
Amended Sub-Advisory Fee, Threshold One | $ 10,000 | $ 10,000 | |||||
Amended Sub-Advisory Fee, Threshold Two | 12,441 | 12,441 | |||||
Amended Sub-Advisory Fee, Threshold Three | 16,000 | 16,000 | |||||
AmeriHome | Purchase of residential mortgage loans under agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Related party purchases | $ 167 | $ 0 | 211 | $ 1 | |||
VA Capital Company LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Minority equity investment | $ 75 | ||||||
Venerable | |||||||
Related Party Transaction [Line Items] | |||||||
Investment Owned, Balance, Principal Amount | $ 150 | ||||||
Stated interest rate | 6.257% | ||||||
Funding Agreements | Athora Holding Ltd. | |||||||
Related Party Transaction [Line Items] | |||||||
Interest sensitive contract liabilities | $ 170 | $ 170 |
Commitments and Contingencies -
Commitments and Contingencies - Pledged Assets and Funds in Trust (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
AFS securities | $ 4,452 | $ 1,572 |
Debt Securities, Trading, Restricted | 52 | 0 |
Equity securities | 3 | 36 |
Investment funds | 29 | 20 |
Mortgage loans | 943 | 914 |
Short-term investments | 73 | 10 |
Other investments | 45 | 0 |
Restricted cash | 178 | 105 |
Total restricted assets | 5,775 | $ 2,657 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | $ 178 |
Commitments and Contingencies85
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Other Commitments [Line Items] | ||
Advances from FHLB | $ 701 | $ 573 |
COLI asset value | 359 | |
Value of guarantees on COLI | 174 | |
Investments | ||
Other Commitments [Line Items] | ||
Investment commitment | 3,036 | 2,358 |
Athene Global Funding | Senior notes | ||
Other Commitments [Line Items] | ||
Maximum borrowing capacity | 10,000 | |
Athene Global Funding | Funding Agreements | ||
Other Commitments [Line Items] | ||
Interest sensitive contract liabilities | 2,996 | $ 2,996 |
Internal Revenue Service (IRS) | ||
Other Commitments [Line Items] | ||
Income tax examination, estimate of possible loss | 120 | |
Tax Year 2008 | Internal Revenue Service (IRS) | ||
Other Commitments [Line Items] | ||
Proposed disallowance of income tax deduction | 191 | |
Tax Year 2009 | Internal Revenue Service (IRS) | ||
Other Commitments [Line Items] | ||
Proposed disallowance of income tax deduction | 154 | |
Proposed decrease in net operating loss | 16 | |
Tax Year 2010 | Internal Revenue Service (IRS) | ||
Other Commitments [Line Items] | ||
Proposed disallowance of income tax deduction | 76 | |
Proposed decrease in net operating loss | 16 | |
Tax Year 2011 | Internal Revenue Service (IRS) | ||
Other Commitments [Line Items] | ||
Proposed disallowance of income tax deduction | 16 | |
Proposed decrease in net operating loss | 15 | |
Tax Year 2012 | Internal Revenue Service (IRS) | ||
Other Commitments [Line Items] | ||
Proposed increase in income tax deductions | 12 | |
Proposed decrease in net operating loss | 12 | |
Tax Year 2011 and 2012 | Internal Revenue Service (IRS) | ||
Other Commitments [Line Items] | ||
Proposed Increase to Taxable Income | 16 | |
Caldera [Member] | Pending Litigation [Member] | ||
Other Commitments [Line Items] | ||
Loss Contingency, Damages Sought, Value | $ 1,500 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Operating Revenues to Consolidation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 1,797 | $ 1,763 | $ 2,808 | $ 3,382 |
Operating Segments | Retirement Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,868 | 1,254 | 3,125 | 2,142 |
Operating Segments | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 26 | 103 | 53 | 171 |
Non-operating adjustments | ||||
Segment Reporting Information [Line Items] | ||||
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | 97 | 266 | (61) | 802 |
Investment gains (losses), net of offsets | (149) | 138 | (255) | 263 |
Variable Interest Entity Expense and Noncontrolling Interest | 2 | 0 | 2 | 0 |
Other Nonoperating Income | $ (47) | $ 2 | $ (56) | $ 4 |
Segment Information - Reconci87
Segment Information - Reconciliation of Segment Operating Income to Consolidation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income tax (expense) benefit – non-operating | $ (66) | $ (11) | $ (125) | $ (33) |
Net income available to Athene Holding Ltd. shareholders | 264 | 326 | 532 | 710 |
Operating Segments | Retirement Services | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net income available to Athene Holding Ltd. shareholders | 289 | 267 | 524 | 542 |
Operating Segments | Corporate and Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net income available to Athene Holding Ltd. shareholders | 1 | 13 | 3 | 4 |
Non-operating adjustments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Investment gains (losses), net of offsets | (74) | 58 | (107) | 115 |
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | 75 | 15 | 170 | 109 |
Integration, restructuring and other non-operating expenses | (8) | (11) | (16) | (20) |
Stock-based compensation, excluding LTIP | (2) | (13) | (5) | (23) |
Income tax (expense) benefit – non-operating | $ (17) | $ (3) | $ (37) | $ (17) |
Segment Information - Assets by
Segment Information - Assets by Segment (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 114,755 | $ 99,747 |
Retirement Services | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 111,512 | 91,335 |
Corporate and Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 3,243 | $ 8,412 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Uncategorized Items - ahl-20180
Label | Element | Value | |
AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (42,000,000) | [1] |
Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (3,000,000) | |
[1] | See discussion of adoptions in Note 1 – Business, Basis of Presentation and Significant Accounting Policies. |