Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 05, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | Athene Holding Ltd | |
Entity Central Index Key | 0001527469 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 161,698,498 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 25,433,465 | |
Common Class M-1 | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,339,890 | |
Common Class M-2 | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 841,011 | |
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 | 4,074,026 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fixed maturity securities, at fair value | ||
Mortgage loans, net of allowances (portion at fair value: 2019 – $32 and 2018 – $32) | $ 11,333 | $ 10,631 |
Investment funds | 3,592 | 3,559 |
Restricted cash | 497 | 492 |
Deferred acquisition costs, deferred sales inducements and value of business acquired | 5,619 | 5,907 |
Total assets | 132,857 | 125,505 |
Liabilities | ||
Total liabilities | 122,740 | 117,229 |
Equity | ||
Additional paid-in capital | 3,448 | 3,462 |
Retained earnings | 5,963 | 5,286 |
Accumulated other comprehensive income (loss) (related party: 2019 – $(12) and 2018 – $(25)) | 706 | (472) |
Total equity | 10,117 | 8,276 |
Total liabilities and equity | 132,857 | 125,505 |
Related Party | ||
Equity | ||
Accumulated other comprehensive income (loss) (related party: 2019 – $(12) and 2018 – $(25)) | (12) | (25) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Fixed maturity securities, at fair value | ||
Available-for-sale securities | 64,655 | 59,265 |
Trading securities, at fair value | 2,256 | 1,949 |
Equity securities | 252 | 216 |
Mortgage loans, net of allowances (portion at fair value: 2019 – $32 and 2018 – $32) | 11,042 | 10,340 |
Investment funds | 683 | 703 |
Policy loans | 487 | 488 |
Funds withheld at interest (portion at fair value: 2019 – $446 and 2018 – $57) | 15,241 | 15,023 |
Derivative assets | 1,920 | 1,043 |
Short-term investments, at fair value | 155 | 191 |
Other investments | 121 | 122 |
Total investments | 96,812 | 89,340 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fixed maturity securities, at fair value | ||
Available-for-sale securities | 66,339 | |
Cash and cash equivalents | 3,021 | 2,911 |
Accrued investment income (related party: 2019 – $22 and 2018 – $25) | 751 | 682 |
Reinsurance recoverable (related party: 2019 – $334 and 2018 – $344; portion at fair value: 2019 – $1,737 and 2018 – $1,676) | 5,647 | 5,534 |
Deferred acquisition costs, deferred sales inducements and value of business acquired | 5,619 | 5,907 |
Other assets | 962 | 1,635 |
Liabilities | ||
Interest sensitive contract liabilities (related party: 2019 – $16,533 and 2018 – $16,850; portion at fair value: 2019 – $10,085 and 2018 – $8,901) | 98,452 | 96,610 |
Future policy benefits (related party: 2019 – $1,347 and 2018 – $1,259; portion at fair value: 2019 – $2,226 and 2018 – $2,173) | 19,016 | 16,704 |
Other policy claims and benefits | 162 | 142 |
Dividends payable to policyholders | 118 | 118 |
Long-term debt | 991 | 991 |
Derivative liabilities | 85 | 85 |
Payables for collateral on derivatives | 1,781 | 969 |
Funds withheld liability (related party: 2019 – $327 and 2018 – $337; portion at fair value: 2019 – $12 and 2018 – $(1)) | 724 | 721 |
Other liabilities | 1,410 | 888 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Fixed maturity securities, at fair value | ||
Available-for-sale securities | 1,684 | 1,437 |
Trading securities, at fair value | 239 | 249 |
Equity securities | 301 | 120 |
Mortgage loans, net of allowances (portion at fair value: 2019 – $32 and 2018 – $32) | 291 | 291 |
Investment funds | 2,290 | 2,232 |
Funds withheld at interest (portion at fair value: 2019 – $446 and 2018 – $57) | 13,683 | 13,577 |
Other investments | 387 | 386 |
Accrued investment income (related party: 2019 – $22 and 2018 – $25) | 22 | 25 |
Reinsurance recoverable (related party: 2019 – $334 and 2018 – $344; portion at fair value: 2019 – $1,737 and 2018 – $1,676) | 334 | 344 |
Other assets | 4 | 357 |
Liabilities | ||
Interest sensitive contract liabilities (related party: 2019 – $16,533 and 2018 – $16,850; portion at fair value: 2019 – $10,085 and 2018 – $8,901) | 16,533 | 16,850 |
Future policy benefits (related party: 2019 – $1,347 and 2018 – $1,259; portion at fair value: 2019 – $2,226 and 2018 – $2,173) | 1,347 | 1,259 |
Other policy claims and benefits | 15 | 10 |
Funds withheld liability (related party: 2019 – $327 and 2018 – $337; portion at fair value: 2019 – $12 and 2018 – $(1)) | 327 | 337 |
Other liabilities | 51 | 59 |
Variable Interest Entities | ||
Fixed maturity securities, at fair value | ||
Investment funds | 619 | 624 |
Cash and cash equivalents | 2 | 2 |
Other assets | 12 | 1 |
Liabilities | ||
Other liabilities | 1 | 1 |
Variable Interest Entities | Related Party | ||
Fixed maturity securities, at fair value | ||
Trading securities, at fair value | 34 | 35 |
Equity securities | 6 | 50 |
Investment funds | 580 | 583 |
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 Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Available-for-sale securities | ||
Mortgage loans | $ 11,333 | $ 10,631 |
Investment funds | 3,592 | 3,559 |
Deferred acquisition costs, deferred sales inducements and value of business acquired | 5,619 | 5,907 |
Accumulated other comprehensive income | 706 | (472) |
Related Party | ||
Available-for-sale securities | ||
Accumulated other comprehensive income | (12) | (25) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Available-for-sale securities | ||
Available-for-sale securities | 63,440 | 60,025 |
Mortgage loans | 11,042 | 10,340 |
Investment funds | 683 | 703 |
Funds withheld at interest | 15,241 | 15,023 |
Short-term investments | 155 | 191 |
Other investments | 121 | 122 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Available-for-sale securities | ||
Available-for-sale securities | 65,136 | |
Accrued investment income | 751 | 682 |
Reinsurance recoverable | 5,647 | 5,534 |
Other assets | 962 | 1,635 |
Deferred acquisition costs, deferred sales inducements and value of business acquired | 5,619 | 5,907 |
Interest sensitive contract liabilities | 98,452 | 96,610 |
Future policy benefits | 19,016 | 16,704 |
Other policy claims and benefits | 162 | 142 |
Funds withheld liability | 724 | 721 |
Other liabilities | 1,410 | 888 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Available-for-sale securities | ||
Available-for-sale securities | 1,696 | 1,462 |
Mortgage loans | 291 | 291 |
Investment funds | 2,290 | 2,232 |
Funds withheld at interest | 13,683 | 13,577 |
Other investments | 387 | 386 |
Accrued investment income | 22 | 25 |
Reinsurance recoverable | 334 | 344 |
Other assets | 4 | 357 |
Interest sensitive contract liabilities | 16,533 | 16,850 |
Future policy benefits | 1,347 | 1,259 |
Other policy claims and benefits | 15 | 10 |
Funds withheld liability | 327 | 337 |
Other liabilities | 51 | 59 |
Variable Interest Entities | ||
Available-for-sale securities | ||
Investment funds | 619 | 624 |
Other assets | 12 | 1 |
Other liabilities | 1 | 1 |
Variable Interest Entities | Related Party | ||
Available-for-sale securities | ||
Investment funds | 580 | 583 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Available-for-sale securities | ||
Mortgage loans | 11,190 | 10,424 |
Funds withheld at interest | 14,795 | 14,966 |
Other investments | 69 | 70 |
Interest sensitive contract liabilities | 53,504 | 51,655 |
Funds withheld liability | 712 | 722 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Available-for-sale securities | ||
Mortgage loans | 286 | 290 |
Funds withheld at interest | 13,469 | 13,687 |
Other investments | $ 389 | $ 361 |
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) | 161,500,000 | 162,400,000 |
Common stock outstanding (in shares) | 161,500,000 | 162,400,000 |
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) | 25,400,000 | 25,400,000 |
Common stock outstanding (in shares) | 25,400,000 | 25,400,000 |
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) | 7,100,000 | 7,100,000 |
Common stock issued (in shares) | 3,400,000 | 3,400,000 |
Common stock outstanding (in shares) | 3,400,000 | 3,400,000 |
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) | 800,000 | 800,000 |
Common stock outstanding (in shares) | 800,000 | 800,000 |
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) | 1,000,000 | 1,000,000 |
Common stock outstanding (in shares) | 1,000,000 | 1,000,000 |
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) | 4,100,000 | 4,100,000 |
Common stock outstanding (in shares) | 4,100,000 | 4,100,000 |
Recurring | Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Available-for-sale securities | ||
Mortgage loans | $ 32 | $ 32 |
Investment funds | 159 | 182 |
Funds withheld at interest | 446 | 57 |
Other investments | 52 | 52 |
Recurring | Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Available-for-sale securities | ||
Mortgage loans | 32 | 32 |
Short-term investments | 155 | 191 |
Other investments | 52 | 52 |
Reinsurance recoverable | 1,737 | 1,676 |
Interest sensitive contract liabilities | 10,085 | 8,901 |
Future policy benefits | 2,226 | 2,173 |
Funds withheld liability | 12 | (1) |
Recurring | Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Available-for-sale securities | ||
Investment funds | 232 | 201 |
Funds withheld at interest | 214 | (110) |
Recurring | Fair Value | Variable Interest Entities | ||
Available-for-sale securities | ||
Investment funds | $ 564 | $ 567 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other-than-temporary impairment investment losses | ||
Other-than-temporary impairment losses recognized in other comprehensive income | $ 1 | $ 0 |
Total revenues | 4,961 | 1,011 |
Benefits and Expenses | ||
Amortization of deferred sales inducements | 5 | 20 |
Total benefits and expenses | 4,221 | 689 |
Income before income taxes | 740 | 322 |
Income tax expense (benefit) | 32 | 45 |
Net income | 708 | 277 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Revenues | ||
Premiums | 1,966 | 278 |
Product charges | 125 | 96 |
Net investment income | 1,066 | 855 |
Investment related gains (losses) | 1,772 | (236) |
Other-than-temporary impairment investment losses | ||
Other-than-temporary impairment losses | (2) | (3) |
Other-than-temporary impairment losses recognized in other comprehensive income | 1 | 0 |
Net other-than-temporary impairment losses | (1) | (3) |
Other revenues | 12 | 6 |
Benefits and Expenses | ||
Interest sensitive contract benefits | 1,516 | 31 |
Amortization of deferred sales inducements | 5 | 20 |
Future policy and other policy benefits | 2,295 | 401 |
Amortization of deferred acquisition costs and value of business acquired | 231 | 82 |
Dividends to policyholders | 9 | 13 |
Policy and other operating expenses (related party: 2019 – $8 and 2018 – $2) | 165 | 142 |
Variable Interest Entities | ||
Revenues | ||
Net investment income | 16 | 10 |
Investment related gains (losses) | $ 5 | $ 5 |
Common Class A | ||
Earnings per share | ||
Basic (in USD per share) | $ 3.65 | $ 1.40 |
Diluted (in USD per share) | 3.64 | 1.40 |
Common Class B | ||
Earnings per share | ||
Basic (in USD per share) | 3.65 | 1.40 |
Diluted (in USD per share) | 3.65 | 1.40 |
Common Class M-1 | ||
Earnings per share | ||
Basic (in USD per share) | 3.65 | 1.40 |
Diluted (in USD per share) | 3.65 | 1.40 |
Common Class M-2 | ||
Earnings per share | ||
Basic (in USD per share) | 3.65 | 1.40 |
Diluted (in USD per share) | 3.65 | 1.39 |
Common Class M-3 | ||
Earnings per share | ||
Basic (in USD per share) | 3.65 | 1.40 |
Diluted (in USD per share) | 3.65 | 1.38 |
Common Class M-4 | ||
Earnings per share | ||
Basic (in USD per share) | 3.65 | 1.40 |
Diluted (in USD per share) | $ 3.15 | $ 0.97 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Premiums | $ 1,966 | $ 278 |
Product charges | 125 | 96 |
Investment income | 1,161 | 939 |
Investment expense | 95 | 84 |
Investment related gains (losses) | 1,772 | (236) |
Interest sensitive contract benefits | 1,516 | 31 |
Future policy and other policy benefits | 2,295 | 401 |
Amortization of deferred acquisition costs and value of business acquired | 231 | 82 |
Net investment income | 1,066 | 855 |
Policy and other operating expenses | 165 | 142 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Premiums | 66 | 0 |
Product charges | 14 | 0 |
Investment income | 183 | 76 |
Investment expense | 92 | 83 |
Investment related gains (losses) | 317 | 17 |
Interest sensitive contract benefits | 183 | 0 |
Future policy and other policy benefits | 106 | 0 |
Policy and other operating expenses | 8 | 2 |
Variable Interest Entities | ||
Investment related gains (losses) | 5 | 5 |
Net investment income | 16 | 10 |
Variable Interest Entities | Related Party | ||
Investment related gains (losses) | 4 | 5 |
Net investment income | $ 16 | $ 10 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 708 | $ 277 |
Other comprehensive income (loss), before tax | ||
Unrealized investment gains (losses) on available-for-sale securities | 1,478 | (891) |
Noncredit component of other-than-temporary impairment losses on available-for-sale securities | (1) | 0 |
Unrealized gains (losses) on hedging instruments | (8) | (56) |
Pension adjustments | (1) | 3 |
Foreign currency translation adjustments | 1 | (8) |
Other comprehensive income (loss), before tax | 1,469 | (952) |
Income tax expense (benefit) related to other comprehensive income (loss) | 291 | (179) |
Other comprehensive income (loss) | 1,178 | (773) |
Comprehensive income (loss) | $ 1,886 | $ (496) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) |
Beginning Balance at Dec. 31, 2017 | $ 9,176 | $ 0 | $ 3,472 | $ 4,255 | $ 1,449 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 277 | 277 | |||
Other comprehensive income | (773) | (773) | |||
Issuance of shares, net of expenses | 1 | 1 | |||
Stock-based compensation | 12 | 12 | |||
Retirement or repurchase of shares | (3) | 0 | (3) | ||
Ending Balance at Mar. 31, 2018 | 8,687 | 0 | 3,485 | 4,568 | 634 |
Beginning Balance at Dec. 31, 2018 | 8,276 | 0 | 3,462 | 5,286 | (472) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 708 | 708 | |||
Other comprehensive income | 1,178 | 1,178 | |||
Issuance of shares, net of expenses | 1 | 1 | |||
Stock-based compensation | 5 | 5 | |||
Retirement or repurchase of shares | (51) | (20) | (31) | ||
Ending Balance at Mar. 31, 2019 | $ 10,117 | $ 0 | $ 3,448 | $ 5,963 | $ 706 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Cash flows from operating activities | |||
Net income | $ 708 | $ 277 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of deferred sales inducements | 5 | 20 | |
Policy acquisition costs deferred | (173) | (122) | |
Changes in operating assets and liabilities: | |||
Net cash provided by operating activities | 1,009 | 573 | |
Purchases of: | |||
Deconsolidation of Athora Holding Ltd. | 0 | (296) | |
Net cash used in investing activities | (2,776) | (2,884) | |
Cash flows from financing activities | |||
Proceeds from long-term debt | 0 | 998 | |
Net cash provided by financing activities | 1,882 | 139 | |
Net increase (decrease) in cash and cash equivalents | 115 | (2,172) | |
Cash and cash equivalents at beginning of year | [1] | 3,405 | 4,997 |
Cash and cash equivalents at end of period | [1] | 3,520 | 2,825 |
Non-cash transactions | |||
Deposits on investment-type policies and contracts through reinsurance agreements | 208 | 108 | |
Withdrawals on investment-type policies and contracts through reinsurance agreements | 888 | 91 | |
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 | 231 | 82 | |
Amortization of deferred sales inducements | 5 | 20 | |
Accretion of net investment premiums, discounts and other | (33) | (45) | |
Net investment (income) loss (related party: 2019 – $18 and 2018 – $(43)) | 25 | (29) | |
Gain (Loss) on Investments and Derivatives | 944 | (209) | |
Policy acquisition costs deferred | (173) | (122) | |
Changes in operating assets and liabilities: | |||
Accrued investment income | (69) | (27) | |
Interest sensitive contract liabilities | 1,403 | (189) | |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 653 | 333 | |
Funds withheld assets and liabilities | (1,011) | (7) | |
Other assets and liabilities | 220 | 77 | |
Sales, maturities and repayments of: | |||
Available-for-sale securities (related party: 2019 – $50 and 2018 – $57) | 2,231 | 3,017 | |
Trading securities (related party: 2019 – $0 and 2018 – $1) | 31 | 24 | |
Mortgage loans | 354 | 396 | |
Investment funds (related party: 2019 – $87 and 2018 – $52) | 131 | 83 | |
Derivative instruments and other invested assets | 256 | 551 | |
Short-term investments | 104 | 103 | |
Purchases of: | |||
Available-for-sale securities (related party: 2019 – $(280) and 2018 – $(158)) | (4,470) | (5,907) | |
Trading securities (related party: 2019 – $(3) and 2018 – $0) | (284) | (25) | |
Mortgage loans | (1,049) | (463) | |
Investment funds (related party: 2019 – $(152) and 2018 – $(182)) | (185) | (213) | |
Derivative instruments and other invested assets | (287) | (224) | |
Short-term investments (related party: 2019 – $0 and 2018 – $(72)) | (67) | (209) | |
Other investing activities, net | 601 | 227 | |
Cash flows from financing activities | |||
Deposits on investment-type policies and contracts | 2,793 | 1,774 | |
Withdrawals on investment-type policies and contracts | (1,638) | (1,474) | |
Payments for coinsurance agreements on investment-type contracts, net | (25) | (10) | |
Net change in cash collateral posted for derivative transactions | 812 | (1,178) | |
Repurchase of common stock | (51) | (3) | |
Other financing activities, net | (9) | 32 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity securities | |||
Sales, maturities and repayments of: | |||
Equity securities | 10 | 2 | |
Purchases of: | |||
Equity securities | (205) | (9) | |
Variable Interest Entities | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain (Loss) on Investments and Derivatives | 6 | 6 | |
Purchases of: | |||
Sales, maturities and repayments of investments (related party: 2019 – $51 and 2018 – $59) | 53 | 59 | |
Reinsurance Settlements [Member] | |||
Non-cash transactions | |||
Transfer to Investments | 12 | 0 | |
Pension Risk Transfer Premiums [Member] | |||
Non-cash transactions | |||
Transfer to Investments | 1,363 | 0 | |
Investment funds | Exchange of Stock for Stock [Member] | |||
Purchases of: | |||
Investment funds (related party: 2019 – $(152) and 2018 – $(182)) | 0 | (108) | |
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net investment (income) loss (related party: 2019 – $18 and 2018 – $(43)) | 18 | (43) | |
Gain (Loss) on Investments and Derivatives | 0 | 24 | |
Changes in operating assets and liabilities: | |||
Accrued investment income | 3 | 0 | |
Interest sensitive contract liabilities | 167 | 0 | |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 95 | 0 | |
Funds withheld assets and liabilities | (500) | 0 | |
Sales, maturities and repayments of: | |||
Available-for-sale securities (related party: 2019 – $50 and 2018 – $57) | 50 | 57 | |
Trading securities (related party: 2019 – $0 and 2018 – $1) | 0 | 1 | |
Investment funds (related party: 2019 – $87 and 2018 – $52) | 87 | 52 | |
Purchases of: | |||
Available-for-sale securities (related party: 2019 – $(280) and 2018 – $(158)) | (280) | (158) | |
Trading securities (related party: 2019 – $(3) and 2018 – $0) | (3) | ||
Investment funds (related party: 2019 – $(152) and 2018 – $(182)) | (152) | (182) | |
Short-term investments (related party: 2019 – $0 and 2018 – $(72)) | 0 | (72) | |
Cash flows from financing activities | |||
Deposits on investment-type policies and contracts | 101 | 0 | |
Withdrawals on investment-type policies and contracts | (106) | 0 | |
Non-cash transactions | |||
Deposits on investment-type policies and contracts through reinsurance agreements | 45 | 0 | |
Withdrawals on investment-type policies and contracts through reinsurance agreements | 429 | 0 | |
Related Party | Variable Interest Entities | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain (Loss) on Investments and Derivatives | 5 | 6 | |
Purchases of: | |||
Sales, maturities and repayments of investments (related party: 2019 – $51 and 2018 – $59) | $ 51 | $ 59 | |
[1] | Includes cash and cash equivalents, restricted cash, and cash and cash equivalents of consolidated variable interest entities. |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Policy acquisition costs deferred | $ (173) | $ (122) |
Purchases of: | ||
Deposits on investment-type policies and contracts through reinsurance agreements | 208 | 108 |
Withdrawals on investment-type policies and contracts through reinsurance agreements | 888 | 91 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Amortization of deferred acquisition costs and value of business acquired | 231 | 82 |
Net investments (income) loss | 25 | (29) |
Net recognized (gains) losses on investments and derivatives (related party: 2018 – $0 and 2017 – $10) | (944) | 209 |
Accrued investment income | (69) | (27) |
Policy acquisition costs deferred | (173) | (122) |
Interest sensitive contract liabilities | 1,403 | (189) |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 653 | 333 |
Funds withheld assets and liabilities | (1,011) | (7) |
Sales, maturities and repayments of: | ||
Available-for-sale securities (related party: 2019 – $50 and 2018 – $57) | 2,231 | 3,017 |
Trading securities | 31 | 24 |
Investment funds | 131 | 83 |
Derivative instruments and other invested assets | 256 | 551 |
Short-term investments | 104 | 103 |
Purchases of: | ||
Available-for-sale securities (related party: 2019 – $(280) and 2018 – $(158)) | (4,470) | (5,907) |
Mortgage loans | (1,049) | (463) |
Trading securities | (284) | (25) |
Investment funds | (185) | (213) |
Derivative instruments and other invested assets | (287) | (224) |
Short-term investments | (67) | (209) |
Deposits on investment-type policies and contracts | 2,793 | 1,774 |
Repayments of Annuities and Investment Certificates | (1,638) | (1,474) |
Payments for coinsurance agreements on investment-type contracts, net | (25) | (10) |
Variable Interest Entities | ||
Net recognized (gains) losses on investments and derivatives (related party: 2018 – $0 and 2017 – $10) | (6) | (6) |
Purchases of: | ||
Sales, maturities, and repayments of investments | 53 | 59 |
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Net investments (income) loss | 18 | (43) |
Net recognized (gains) losses on investments and derivatives (related party: 2018 – $0 and 2017 – $10) | 0 | (24) |
Accrued investment income | 3 | 0 |
Interest sensitive contract liabilities | 167 | 0 |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 95 | 0 |
Funds withheld assets and liabilities | (500) | 0 |
Sales, maturities and repayments of: | ||
Available-for-sale securities (related party: 2019 – $50 and 2018 – $57) | 50 | 57 |
Trading securities | 0 | 1 |
Investment funds | 87 | 52 |
Purchases of: | ||
Available-for-sale securities (related party: 2019 – $(280) and 2018 – $(158)) | (280) | (158) |
Trading securities | (3) | |
Investment funds | (152) | (182) |
Short-term investments | 0 | (72) |
Deposits on investment-type policies and contracts | 101 | 0 |
Repayments of Annuities and Investment Certificates | (106) | 0 |
Deposits on investment-type policies and contracts through reinsurance agreements | 45 | 0 |
Withdrawals on investment-type policies and contracts through reinsurance agreements | 429 | 0 |
Related Party | Variable Interest Entities | ||
Net recognized (gains) losses on investments and derivatives (related party: 2018 – $0 and 2017 – $10) | (5) | (6) |
Purchases of: | ||
Sales, maturities, and repayments of investments | 51 | 59 |
Equity securities | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Sales, maturities and repayments of: | ||
Equity securities | 10 | 2 |
Purchases of: | ||
Equity securities | (205) | (9) |
Reinsurance Settlements [Member] | ||
Purchases of: | ||
Transfer to Investments | $ 12 | $ 0 |
Business, Basis of Presentation
Business, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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 United States (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 (together with its subsidiaries, Athene USA). In addition, we consolidate certain variable interest entities (VIEs), for which we determined we are the primary beneficiary. 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 results for the interim 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, 2018 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, 2018. 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 Leases (ASU 2019-01, ASU 2018-20, ASU 2018-11, ASU 2018-10, ASU 2018-01, ASU 2017-13 and ASU 2016-02) These updates increase transparency and comparability for lease transactions. ASU 2016-02 requires a lessee to recognize a right-of-use asset and lease liability on the balance sheet for all leases with an original term longer than twelve months and disclose key information about leasing arrangements. Lessor accounting is largely unchanged. ASU 2016-02 requires the adoption on a modified retrospective basis. However, ASU 2018-11 provides the option to recognize the cumulative effect 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. These updates also provide optional practical expedients in transition. We adopted these updates effective January 1, 2019 by recording a lease liability and right-of-use asset related to office space, copiers, reserved areas and equipment at data centers, and other agreements. We will continue to present all prior periods under the previous lease guidance. We elected the “package of practical expedients,” which permits us to maintain our prior conclusions about lease identification, classification and initial direct costs. We also elected the short-term lease exception, which allows us to exclude contracts with a lease term of 12 months or less, including any reasonably certain renewal options, from consideration under the new guidance. This update did not have a material effect on our consolidated financial statements. Derivatives and Hedging (ASU 2018-16) The amendments in this update allow entities to use the Overnight Index Swap rate based on the Secured Overnight Financing Rate as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the previously acceptable rates. We adopted this update prospectively for qualifying new or redesignated hedging relationships entered into on or after January 1, 2019. This update did not have an effect on our consolidated financial statements. 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 adopted this update on a modified retrospective basis effective January 1, 2019. This update did not have a material effect on our consolidated financial statements. Recently Issued Accounting Pronouncements Financial Instruments – Credit Losses (ASU 2019-04, ASU 2018-19 and 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. Available-for-sale (AFS) 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. We are currently evaluating the impact of this guidance on our consolidated financial statements. Collaborative Arrangements (ASU 2018-18) The amendments in this update provide guidance on whether certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606, providing comparability in the presentation of revenue for certain transactions. The update is effective January 1, 2020. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Consolidation (ASU 2018-17) The amendments in this update expand certain discussions in the VIE guidance, including considerations necessary for determining when a decision-making fee is a variable interest. We will be required to adopt this update retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The update is effective January 1, 2020. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Cloud Computing Arrangements (ASU 2018-15) The amendments in this update align the requirements for capitalizing implementation costs incurred in a cloud computing service arrangement with the requirements for capitalizing implementation costs incurred for internal-use software. We will be required to adopt this update on January 1, 2020, and we can elect to adopt this update either prospectively or retrospectively. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Fair Value Measurement – Disclosure Requirements (ASU 2018-13) The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. We will be required to adopt this update on January 1, 2020, and depending on the specific amendment will be required to adopt prospectively or retrospectively. We early adopted the removal and modification of certain disclosures as permitted. We are currently evaluating the impact of the remaining guidance on our consolidated financial statements. Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts (ASU 2018-12) This update amends four key areas pertaining to the accounting and disclosures for long-duration insurance and investment contracts. • The update requires cash flow assumptions used to measure the liability for future policy benefits to be updated at least annually and no longer allows a provision for adverse deviation. The remeasurement of the liability associated with the update of assumptions is required to be recognized in net income. Loss recognition testing is eliminated for traditional and limited-payment contracts. The update also requires the discount rate utilized in measuring the liability to be an upper-medium grade fixed-income instrument yield, which is to be updated at each reporting date. The change in liability due to changes in the discount rate is to be recognized in other comprehensive income. • The update simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs are required to be written off for unexpected contract terminations but are not subject to impairment testing. • The update requires certain contract features meeting the definition of market risk benefits to be measured at fair value. Among the features included in this definition are the guaranteed lifetime withdrawal benefits (GLWB) and guaranteed minimum death benefit (GMDB) riders attached to the Company’s annuity products. The change in fair value of the market risk benefits is to be recognized in net income, excluding the portion attributable to changes in instrument-specific credit risk which is recognized in other comprehensive income. • The update also introduces disclosure requirements around the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs. This includes disaggregated rollforwards of these balances and information about significant inputs, judgments, assumptions and methods used in their measurement. We will be required to adopt this update effective January 1, 2021. Certain provisions of the update are required to be adopted on a fully retrospective basis, while others may be adopted on a modified retrospective basis. Early adoption is permitted. We are currently evaluating the impact of this guidance 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. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments Schedule [Abstract] | |
Investments | 2. Investments AFS Securities — Our AFS investment portfolio includes bonds, collateralized loan obligations (CLO), asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS) and redeemable preferred stock. Our AFS investment portfolio includes related party investments that are primarily a result of investments over which Apollo Global Management, LLC (AGM and, together with its subsidiaries, Apollo) can exercise significant influence. These investments are presented as investments in related parties on the condensed consolidated balance sheets, and are separately disclosed below. The following table represents the amortized cost, gross unrealized gains and losses, fair value and other than temporary impairments (OTTI) in accumulated other comprehensive income (AOCI) of our AFS investments by asset type: March 31, 2019 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI AFS securities U.S. government and agencies $ 48 $ 2 $ — $ 50 $ — U.S. state, municipal and political subdivisions 1,209 161 (5 ) 1,365 — Foreign governments 262 9 — 271 — Corporate 40,727 1,218 (534 ) 41,411 — CLO 6,320 6 (184 ) 6,142 — ABS 5,023 85 (33 ) 5,075 1 CMBS 2,394 50 (20 ) 2,424 7 RMBS 7,457 480 (20 ) 7,917 12 Total AFS securities 63,440 2,011 (796 ) 64,655 20 AFS securities – related party Corporate 3 — — 3 — CLO 654 — (16 ) 638 — ABS 1,039 11 (7 ) 1,043 — Total AFS securities – related party 1,696 11 (23 ) 1,684 — Total AFS securities including related party $ 65,136 $ 2,022 $ (819 ) $ 66,339 $ 20 December 31, 2018 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI AFS securities U.S. government and agencies $ 57 $ — $ — $ 57 $ — U.S. state, municipal and political subdivisions 1,183 117 (7 ) 1,293 — Foreign governments 162 2 (3 ) 161 — Corporate 38,018 394 (1,315 ) 37,097 1 CLO 5,658 2 (299 ) 5,361 — ABS 4,915 53 (48 ) 4,920 — CMBS 2,390 27 (60 ) 2,357 7 RMBS 7,642 413 (36 ) 8,019 11 Total AFS securities 60,025 1,008 (1,768 ) 59,265 19 AFS securities – related party CLO 587 — (25 ) 562 — ABS 875 4 (4 ) 875 — Total AFS securities – related party 1,462 4 (29 ) 1,437 — Total AFS securities including related party $ 61,487 $ 1,012 $ (1,797 ) $ 60,702 $ 19 The amortized cost and fair value of AFS securities, including related party, are shown by contractual maturity below: March 31, 2019 (In millions) Amortized Cost Fair Value AFS securities Due in one year or less $ 1,081 $ 1,082 Due after one year through five years 8,855 8,988 Due after five years through ten years 11,209 11,339 Due after ten years 21,101 21,688 CLO, ABS, CMBS and RMBS 21,194 21,558 Total AFS securities 63,440 64,655 AFS securities – related party Due after five years through ten years 3 3 CLO and ABS 1,693 1,681 Total AFS securities – related party 1,696 1,684 Total AFS securities including related party $ 65,136 $ 66,339 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: March 31, 2019 Less than 12 months 12 months or more Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Fair Value Gross AFS securities U.S. government and agencies $ 2 $ — $ 7 $ — $ 9 $ — U.S. state, municipal and political subdivisions 19 — 75 (5 ) 94 (5 ) Foreign governments 8 — 19 — 27 — Corporate 4,840 (141 ) 8,191 (393 ) 13,031 (534 ) CLO 4,782 (179 ) 161 (5 ) 4,943 (184 ) ABS 719 (10 ) 562 (23 ) 1,281 (33 ) CMBS 439 (8 ) 463 (12 ) 902 (20 ) RMBS 942 (16 ) 138 (4 ) 1,080 (20 ) Total AFS securities 11,751 (354 ) 9,616 (442 ) 21,367 (796 ) AFS securities – related party Corporate — — 3 — 3 — CLO 553 (16 ) — — 553 (16 ) ABS 324 (6 ) 72 (1 ) 396 (7 ) Total AFS securities – related party 877 (22 ) 75 (1 ) 952 (23 ) Total AFS securities including related party $ 12,628 $ (376 ) $ 9,691 $ (443 ) $ 22,319 $ (819 ) December 31, 2018 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 AFS securities U.S. government and agencies $ 32 $ — $ 2 $ — $ 34 $ — U.S. state, municipal and political subdivisions 139 (2 ) 82 (5 ) 221 (7 ) Foreign governments 97 (2 ) 15 (1 ) 112 (3 ) Corporate 20,213 (942 ) 4,118 (373 ) 24,331 (1,315 ) CLO 5,054 (297 ) 90 (2 ) 5,144 (299 ) ABS 1,336 (23 ) 506 (25 ) 1,842 (48 ) CMBS 932 (27 ) 497 (33 ) 1,429 (60 ) RMBS 1,417 (31 ) 140 (5 ) 1,557 (36 ) Total AFS securities 29,220 (1,324 ) 5,450 (444 ) 34,670 (1,768 ) AFS securities – related party CLO 534 (25 ) — — 534 (25 ) ABS 306 (2 ) 116 (2 ) 422 (4 ) Total AFS securities – related party 840 (27 ) 116 (2 ) 956 (29 ) Total AFS securities including related party $ 30,060 $ (1,351 ) $ 5,566 $ (446 ) $ 35,626 $ (1,797 ) As of March 31, 2019 , we held 2,638 AFS securities that were in an unrealized loss position. Of this total, 1,377 were in an unrealized loss position 12 months or more. As of March 31, 2019 , we held 38 related party AFS securities that were in an unrealized loss position. Of this total, six 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 three months ended March 31, 2019 , we incurred $1 million of net OTTI, none of which related to intent-to-sell impairments. The 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 securities, for which a portion of the securities’ total OTTI was recognized in AOCI: Three months ended March 31, (In millions) 2019 2018 Beginning balance $ 10 $ 14 Initial impairments – credit loss OTTI recognized on securities not previously impaired — 1 Additional impairments – credit loss OTTI recognized on securities previously impaired 1 — Reduction in impairments from securities sold, matured or repaid — (8 ) Ending balance $ 11 $ 7 Net Investment Income —Net investment income by asset class consists of the following: Three months ended March 31, (In millions) 2019 2018 AFS securities $ 753 $ 668 Trading securities 42 44 Equity securities 3 2 Mortgage loans 151 91 Investment funds 10 65 Funds withheld at interest 163 46 Other 39 23 Investment revenue 1,161 939 Investment expenses (95 ) (84 ) Net investment income $ 1,066 $ 855 Investment Related Gains (Losses) —Investment related gains (losses) by asset class consists of the following: Three months ended March 31, (In millions) 2019 2018 AFS securities Gross realized gains on investment activity $ 17 $ 21 Gross realized losses on investment activity (13 ) (6 ) Net realized investment gains on AFS securities 4 15 Net recognized investment gains (losses) on trading securities 49 (89 ) Net recognized investment gains on equity securities 18 1 Derivative gains (losses) 1,692 (184 ) Other gains 9 21 Investment related gains (losses) $ 1,772 $ (236 ) Proceeds from sales of AFS securities were $1,253 million and $1,547 million for the three months ended March 31, 2019 and 2018 , respectively. Proceeds from sales of AFS securities for the three months ended March 31, 2018 have been revised for immaterial misstatements to be comparable to current year balances. The following table summarizes the change in unrealized gains (losses) on trading and equity securities, including related party and consolidated VIEs, we still held as of the respective period end: Three months ended March 31, (In millions) 2019 2018 Trading securities $ 71 $ (69 ) Trading securities – related party (3 ) (2 ) VIE trading securities – related party 1 — Equity securities 18 — Equity securities – related party 3 — VIE equity securities – related party — 25 Purchased Credit Impaired (PCI) Investments —The following table summarizes our PCI investments: Fixed maturity securities Mortgage loans (In millions) March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Contractually required payments receivable $ 7,931 $ 8,179 $ 2,870 $ 2,675 Less: Cash flows expected to be collected 1 (6,968 ) (7,195 ) (2,829 ) (2,628 ) Non-accretable difference $ 963 $ 984 $ 41 $ 47 Cash flows expected to be collected 1 $ 6,968 $ 7,195 $ 2,829 $ 2,628 Less: Amortized cost (5,392 ) (5,518 ) (2,117 ) (1,931 ) Accretable difference $ 1,576 $ 1,677 $ 712 $ 697 Fair value $ 5,774 $ 5,828 $ 2,138 $ 1,933 Outstanding balance 6,619 6,773 2,395 2,210 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: March 31, 2019 (In millions) Fixed maturity securities Mortgage loans Contractually required payments receivable $ 66 $ 382 Cash flows expected to be collected 51 382 Fair value 44 292 The following table summarizes the activity for the accretable yield on PCI investments: Three months ended March 31, 2019 (In millions) Fixed maturity securities Mortgage loans Beginning balance at January 1 $ 1,677 $ 697 Purchases of PCI investments, net of sales 8 40 Accretion (91 ) (32 ) Net reclassification from (to) non-accretable difference (18 ) 7 Ending balance at March 31 $ 1,576 $ 712 Mortgage Loans, including related party —Mortgage loans, net of allowances, consists of the following: (In millions) March 31, 2019 December 31, 2018 Commercial mortgage loans $ 7,693 $ 7,217 Commercial mortgage loans under development 86 80 Total commercial mortgage loans 7,779 7,297 Residential mortgage loans 3,554 3,334 Mortgage loans, net of allowances $ 11,333 $ 10,631 We primarily invest in commercial mortgage loans on income producing properties including office and retail buildings, hotels, industrial properties and apartments. 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: March 31, 2019 December 31, 2018 (In millions, except for percentages) Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total Property type Office building $ 2,527 32.4 % $ 2,221 30.5 % Retail 1,797 23.1 % 1,660 22.7 % Hotels 1,040 13.4 % 1,040 14.3 % Industrial 1,232 15.8 % 1,196 16.4 % Apartment 899 11.6 % 791 10.8 % Other commercial 284 3.7 % 389 5.3 % Total commercial mortgage loans $ 7,779 100.0 % $ 7,297 100.0 % U.S. Region East North Central $ 846 10.9 % $ 855 11.7 % East South Central 200 2.6 % 295 4.0 % Middle Atlantic 1,434 18.4 % 1,131 15.5 % Mountain 603 7.8 % 616 8.4 % New England 373 4.8 % 374 5.1 % Pacific 1,791 23.0 % 1,540 21.1 % South Atlantic 1,518 19.5 % 1,468 20.2 % West North Central 158 2.0 % 173 2.4 % West South Central 856 11.0 % 845 11.6 % Total U.S. Region 7,779 100.0 % 7,297 100.0 % Total commercial mortgage loans $ 7,779 100.0 % $ 7,297 100.0 % Our residential mortgage loan portfolio includes first lien residential mortgage loans collateralized by properties located in the U.S. and is summarized in the following table: March 31, 2019 December 31, 2018 California 33.7 % 30.3 % Florida 15.7 % 16.3 % New York 7.2 % 7.7 % Texas 6.4 % 3.3 % Other 1 37.0 % 42.4 % Total residential mortgage loan percentage 100.0 % 100.0 % 1 Represents 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 $2 million as of March 31, 2019 and December 31, 2018 . We did not record any material activity in the valuation allowance during the three months ended March 31, 2019 or 2018 . 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 March 31, 2019 and December 31, 2018 , $56 million and $48 million , respectively, of our residential mortgage loans were nonperforming. Commercial mortgage loans – As of March 31, 2019 and December 31, 2018 , none of our commercial 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) March 31, 2019 December 31, 2018 Less than 50% $ 2,060 $ 1,883 50% to 60% 1,986 1,988 61% to 70% 2,856 2,394 71% to 80% 702 898 81% to 100% 89 54 Commercial mortgage loans $ 7,693 $ 7,217 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) March 31, 2019 December 31, 2018 Greater than 1.20x $ 7,057 $ 6,576 1.00x – 1.20x 360 474 Less than 1.00x 276 167 Commercial mortgage loans $ 7,693 $ 7,217 Investment Funds —Our investment fund portfolio consists of funds that employ various strategies and include investments in real estate and other real assets, credit , equity, natural resources and hedge funds. Investment funds can meet the definition of VIEs. Our investment funds do not specify timing of distributions on the funds’ underlying assets. The following summarizes our investment funds, including related party and those owned by consolidated VIEs: March 31, 2019 December 31, 2018 1 (In millions, except for percentages and years) Carrying value Percent of total Carrying value Percent of total Investment funds Real estate $ 224 32.8 % $ 215 30.6 % Credit funds 155 22.7 % 172 24.5 % Private equity 239 35.0 % 253 36.0 % Real assets 64 9.4 % 56 7.9 % Natural resources 1 0.1 % 4 0.6 % Other — — % 3 0.4 % Total investment funds 683 100.0 % 703 100.0 % Investment funds – related parties Differentiated investments AmeriHome Mortgage Company, LLC (AmeriHome) 2 436 19.0 % 463 20.7 % Catalina Holdings Ltd. (Catalina) 232 10.1 % 233 10.4 % Athora Holding Ltd. (Athora) 2 124 5.4 % 105 4.7 % Venerable Holdings, Inc. (Venerable) 2 87 3.8 % 92 4.1 % Other 171 7.5 % 162 7.3 % Total differentiated investments 1,050 45.8 % 1,055 47.2 % Real estate 498 21.8 % 506 22.7 % Credit funds 340 14.8 % 341 15.3 % Private equity 52 2.3 % 18 0.8 % Real assets 144 6.3 % 145 6.5 % Natural resources 123 5.4 % 104 4.7 % Public equities 83 3.6 % 63 2.8 % Total investment funds – related parties 2,290 100.0 % 2,232 100.0 % Investment funds owned by consolidated VIEs MidCap FinCo Limited (MidCap) 2 550 88.8 % 552 88.4 % Credit funds 1 0.2 % 1 0.2 % Real estate 29 4.7 % 30 4.8 % Real assets 39 6.3 % 41 6.6 % Total investment funds owned by consolidated VIEs 619 100.0 % 624 100.0 % Total investment funds including related parties and funds owned by consolidated VIEs $ 3,592 $ 3,559 1 Certain reclassifications have been made to conform with current year presentation. 2 See further discussions on AmeriHome, Athora, Venerable and MidCap in Note 8 – Related Parties. 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) March 31, 2019 December 31, 2018 Ownership Percentage 100% $ 15 $ 17 50% – 99% 1,017 1,044 3% – 49% 1,684 1,617 Equity method investment funds $ 2,716 $ 2,678 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) March 31, 2019 December 31, 2018 Ownership Percentage 3% – 49% $ 699 $ 687 Less than 3% 177 194 Fair value option investment funds $ 876 $ 881 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. 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. Equity securities – We invest in preferred equity securities issued by entities deemed to be VIEs due to insufficient equity within the structure. Our risk of loss associated with our non-consolidated investments depends on the investment. Investment funds, equity securities and trading securities are limited to the carrying value plus unfunded commitments. AFS securities are limited to amortized cost plus unfunded commitments. The following summarizes the carrying value and maximum loss exposure of these non-consolidated investments: March 31, 2019 December 31, 2018 (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment funds $ 683 $ 1,271 $ 703 $ 1,329 Investment in related parties – investment funds 2,290 4,301 2,232 4,331 Assets of consolidated VIEs – investment funds 619 722 624 727 Investment in fixed maturity securities 22,107 21,748 21,188 21,139 Investment in related parties – fixed maturity securities 1,920 2,010 1,686 1,788 Investment in related parties – equity securities 301 301 120 120 Total non-consolidated investments $ 27,920 $ 30,353 $ 26,553 $ 29,434 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
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 4 – Fair Value for information about the fair value hierarchy for derivatives. The following table presents the notional amount and fair value of derivative instruments: March 31, 2019 December 31, 2018 Notional Amount Fair Value Notional Amount Fair Value (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedges Foreign currency swaps 2,275 $ 68 $ 49 2,041 $ 83 $ 55 Foreign currency forwards 154 2 — 85 — 1 Total derivatives designated as hedges 70 49 83 56 Derivatives not designated as hedges Equity options 49,566 1,824 22 49,821 942 11 Futures 6 8 1 4 9 3 Total return swaps 60 4 — 62 — 3 Foreign currency swaps 38 3 1 38 3 2 Interest rate swaps 310 — 1 326 — 1 Credit default swaps 10 — 4 10 — 4 Foreign currency forwards 795 11 7 646 6 5 Embedded derivatives Funds withheld including related party — 660 12 — (53 ) (1 ) Interest sensitive contract liabilities — — 9,106 — — 7,969 Total derivatives not designated as hedges 2,510 9,154 907 7,997 Total derivatives $ 2,580 $ 9,203 $ 990 $ 8,053 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 July 2049 . During the three months ended March 31, 2019 and 2018 , we had foreign currency swap losses of $8 million and $56 million , respectively, recorded in AOCI. There were no amounts reclassified to income and no amounts deemed ineffective for the three months ended March 31, 2019 and 2018 . As of March 31, 2019 , no amounts are expected to be reclassified to income within the next 12 months. 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. Certain of these forwards entered into during the fourth quarter of 2018 are designated and accounted for as fair value hedges. As of March 31, 2019 and December 31, 2018 , the carrying amount of the hedged AFS securities – CLOs was $154 million and $88 million , respectively, and the cumulative amount of fair value hedging adjustments included in the hedged AFS securities – CLOs included gains of $2 million and $1 million , respectively. The gains and losses on derivatives and the related hedged items in fair value hedge relationships are recorded in investment related gains (losses) on the condensed consolidated statements of income. The derivatives had gains of $3 million during the three months ended March 31, 2019 , and the related hedged items had losses of $3 million during the three months ended March 31, 2019 . 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. 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. 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. 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. 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 March 31, (In millions) 2019 2018 Equity options $ 849 $ (142 ) Futures (11 ) (5 ) Swaps 18 2 Foreign currency forwards 6 (7 ) Embedded derivatives on funds withheld 830 (32 ) Amounts recognized in investment related gains (losses) 1,692 (184 ) Embedded derivatives in indexed annuity products 1 (1,017 ) 247 Total gains (losses) on derivatives not designated as hedges $ 675 $ 63 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 March 31, 2019 Derivative assets $ 1,920 $ (65 ) $ (1,781 ) $ 74 $ (3 ) $ 71 Derivative liabilities (85 ) 65 14 (6 ) — (6 ) December 31, 2018 Derivative assets $ 1,043 $ (52 ) $ (969 ) $ 22 $ (4 ) $ 18 Derivative liabilities (85 ) 52 24 (9 ) — (9 ) 1 T he gross amounts of recognized derivative assets and derivative liabilities are reported on the c ondensed c onsolidated balance sheets. As of March 31, 2019 and December 31, 2018, 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. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 4. 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. NAV – Investment funds are typically measured using NAV as a practical expedient in determining fair value and are not classified in the fair value hierarchy. The underlying investments of the investment funds may have significant unobservable inputs, which may include but are not limited to, comparable multiples and weighted average cost of capital rates applied in valuation models or a discounted cash flow model. 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: March 31, 2019 (In millions) Total NAV Level 1 Level 2 Level 3 Assets AFS securities U.S. government and agencies $ 50 $ — $ 49 $ 1 $ — U.S. state, municipal and political subdivisions 1,365 — — 1,365 — Foreign governments 271 — — 271 — Corporate 41,411 — — 40,376 1,035 CLO 6,142 — — 6,032 110 ABS 5,075 — — 3,461 1,614 CMBS 2,424 — — 2,250 174 RMBS 7,917 — — 7,860 57 Total AFS securities 64,655 — 49 61,616 2,990 Trading securities U.S. government and agencies 5 — 3 2 — U.S. state, municipal and political subdivisions 130 — — 130 — Foreign governments 17 — — 17 — Corporate 1,555 — — 1,545 10 CLO 20 — — 12 8 ABS 100 — — 94 6 CMBS 50 — — 50 — RMBS 379 — — 293 86 Total trading securities 2,256 — 3 2,143 110 Equity securities 252 — 47 202 3 Mortgage loans 32 — — — 32 Investment funds 159 134 — — 25 Funds withheld at interest – embedded derivative 446 — — — 446 Derivative assets 1,920 — 8 1,912 — Short-term investments 155 — 50 105 — Other investments 52 — — 52 — Cash and cash equivalents 3,021 — 3,021 — — Restricted cash 497 — 497 — — Investments in related parties AFS securities Corporate 3 — — 3 — CLO 638 — — 638 — ABS 1,043 — — 546 497 Total AFS securities – related party 1,684 — — 1,187 497 Trading securities CLO 101 — — 46 55 ABS 138 — — — 138 Total trading securities – related party 239 — — 46 193 Equity securities 301 — — — 301 Investment funds 232 108 — — 124 Funds withheld at interest – embedded derivative 214 — — — 214 Reinsurance recoverable 1,737 — — — 1,737 Assets of consolidated VIEs Trading securities 34 — — — 34 Equity securities 6 — — — 6 Investment funds 564 550 — — 14 Cash and cash equivalents 2 — 2 — — Total assets measured at fair value $ 78,458 $ 792 $ 3,677 $ 67,263 $ 6,726 (Continued) March 31, 2019 (In millions) Total NAV Level 1 Level 2 Level 3 Liabilities Interest sensitive contract liabilities Embedded derivative $ 9,106 $ — $ — $ — $ 9,106 Universal life benefits 979 — — — 979 Future policy benefits AmerUs Life Insurance Company (AmerUs) Closed Block 1,483 — — — 1,483 Indianapolis Life Insurance Company (ILICO) Closed Block and life benefits 743 — — — 743 Derivative liabilities 85 — 1 80 4 Funds withheld liability – embedded derivative 12 — — 12 — Total liabilities measured at fair value $ 12,408 $ — $ 1 $ 92 $ 12,315 (Concluded) December 31, 2018 (In millions) Total NAV Level 1 Level 2 Level 3 Assets AFS securities U.S. government and agencies $ 57 $ — $ 54 $ 3 $ — U.S. state, municipal and political subdivisions 1,293 — — 1,293 — Foreign governments 161 — — 161 — Corporate 37,097 — — 36,199 898 CLO 5,361 — — 5,254 107 ABS 4,920 — — 3,305 1,615 CMBS 2,357 — — 2,170 187 RMBS 8,019 — — 7,963 56 Total AFS securities 59,265 — 54 56,348 2,863 Trading securities U.S. government and agencies 5 — 3 2 — U.S. state, municipal and political subdivisions 126 — — 126 — Corporate 1,287 — — 1,287 — CLO 9 — — 8 1 ABS 87 — — 87 — CMBS 49 — — 49 — RMBS 386 — — 252 134 Total trading securities 1,949 — 3 1,811 135 Equity securities 216 — 40 173 3 Mortgage loans 32 — — — 32 Investment funds 182 153 — — 29 Funds withheld at interest – embedded derivative 57 — — — 57 Derivative assets 1,043 — 9 1,034 — Short-term investments 191 — 66 125 — Other investments 52 — — 52 — Cash and cash equivalents 2,911 — 2,911 — — Restricted cash 492 — 492 — — (Continued) December 31, 2018 (In millions) Total NAV Level 1 Level 2 Level 3 Investments in related parties AFS securities CLO 562 — — 562 — ABS 875 — — 547 328 Total AFS securities – related party 1,437 — — 1,109 328 Trading securities CLO 100 — — 22 78 ABS 149 — — — 149 Total trading securities – related party 249 — — 22 227 Equity securities 120 — — — 120 Investment funds 201 96 — — 105 Funds withheld at interest - embedded derivative (110 ) — — — (110 ) Reinsurance recoverable 1,676 — — — 1,676 Assets of consolidated VIEs Trading securities 35 — — — 35 Equity securities 50 — 37 — 13 Investment funds 567 552 — — 15 Cash and cash equivalents 2 — 2 — — Total assets measured at fair value $ 70,617 $ 801 $ 3,614 $ 60,674 $ 5,528 Liabilities Interest sensitive contract liabilities Embedded derivative $ 7,969 $ — $ — $ — $ 7,969 Universal life benefits 932 — — — 932 Future policy benefits AmerUs Closed Block 1,443 — — — 1,443 ILICO Closed Block and life benefits 730 — — — 730 Derivative liabilities 85 — 3 78 4 Funds withheld liability – embedded derivative (1 ) — — (1 ) — Total liabilities measured at fair value $ 11,158 $ — $ 3 $ 77 $ 11,078 (Concluded) Fair Value Valuation Methods —We used the following valuation methods and assumptions to estimate fair value: 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 also have fixed maturity securities priced based on indicative broker quotes or by employing market accepted valuation models. For certain fixed maturity securities, the valuation model uses significant unobservable inputs and are included in Level 3 in our fair value hierarchy. Significant unobservable inputs used include: issue specific credit adjustments, material non-public financial information, estimation of future earnings and cash flows, default rate assumptions, liquidity assumptions and indicative quotes from market makers. These inputs are usually considered unobservable, as not all market participants have access to this data. 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. Investment funds – Certain investment funds for which we elected the fair value option are included in Level 3 and are priced based on market accepted valuation models. The valuation models use significant unobservable inputs, which include material non-public financial information, estimation of future distributable earnings and demographic assumptions. These inputs are usually considered unobservable, as not all market participants have access to this data. 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 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. 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 nonperformance 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. 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, including related parties and consolidated VIEs: Three months ended March 31, (In millions) 2019 2018 Trading securities $ 50 $ (89 ) Investment funds (4 ) 2 Future policy benefits (40 ) 84 Total gains (losses) $ 6 $ (3 ) Gains and losses on trading securities are recorded in investment related gains (losses) on the condensed consolidated statements of income. 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) March 31, 2019 December 31, 2018 Unpaid principal balance $ 30 $ 30 Mark to fair value 2 2 Fair value $ 32 $ 32 There were no fair value option mortgage loans 90 days or more past due as of March 31, 2019 and December 31, 2018 . 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 March 31, 2019 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 AFS securities Corporate $ 898 $ (2 ) $ 5 $ 165 $ — $ (31 ) $ 1,035 $ — CLO 107 — 2 30 — (29 ) 110 — ABS 1,615 3 16 57 19 (96 ) 1,614 — CMBS 187 — 2 (6 ) 8 (17 ) 174 — RMBS 56 — 1 — — — 57 — Trading securities Corporate — — — — 10 — 10 — CLO 1 — — — 7 — 8 1 ABS — — — 6 — — 6 — RMBS 134 (3 ) — — 38 (83 ) 86 2 Equity securities 3 — — — — — 3 — Mortgage loans 32 — — — — — 32 — Investment funds 29 (3 ) — (1 ) — — 25 (3 ) Funds withheld at interest – embedded derivative 57 389 — — — — 446 — Investments in related parties AFS securities, ABS 328 — — 169 — — 497 — Trading securities CLO 78 (1 ) — — — (22 ) 55 4 ABS 149 (11 ) — — — — 138 (11 ) Equity securities 120 4 — 177 — — 301 4 Investment funds 105 — — 19 — — 124 — Funds withheld at interest – embedded derivative (110 ) 324 — — — — 214 — Reinsurance recoverable 1,676 61 — — — — 1,737 — Investments of consolidated VIEs Trading securities 35 — — (1 ) — — 34 — Equity securities 13 (3 ) — (4 ) — — 6 — Investment funds 15 (1) — — — — 14 — Total Level 3 assets $ 5,528 $ 757 $ 26 $ 611 $ 82 $ (278 ) $ 6,726 $ (3 ) Liabilities Interest sensitive contract liabilities Embedded derivative $ (7,969 ) $ (1,017 ) $ — $ (120 ) $ — $ — $ (9,106 ) $ — Universal life benefits (932 ) (47 ) — — — — (979 ) — Future policy benefits AmerUs Closed Block (1,443 ) (40 ) — — — — (1,483 ) — ILICO Closed Block and life benefits (730 ) (13 ) — — — — (743 ) — Derivative liabilities (4 ) — — — — — (4 ) — Total Level 3 liabilities $ (11,078 ) $ (1,117 ) $ — $ (120 ) $ — $ — $ (12,315 ) $ — 1 Related to instruments held at end of period. Three months ended March 31, 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 AFS Securities Corporate 578 4 (4 ) 58 53 (8 ) 681 — CLO 64 — 2 131 — (30 ) 167 — ABS 1,457 2 (7 ) (104 ) — (58 ) 1,290 — CMBS 137 — (1 ) — — (73 ) 63 — RMBS 301 1 (5 ) 23 7 (289 ) 38 — Trading securities U.S. state, municipal and political subdivisions 17 — — — — — 17 — CLO 17 — — 1 — (17 ) 1 — ABS 77 — — — — (77 ) — (3 ) RMBS 342 (21 ) — — — — 321 — Equity Securities 8 — — (8 ) — — — — Mortgage loans 41 — — — — — 41 — Investment funds 41 (9 ) — (7 ) — — 25 — Funds withheld at interest – embedded derivative 312 (105 ) — — — — 207 — Investments in related parties AFS Securities CLO — — — 62 — — 62 — ABS 4 — — — — — 4 — Trading securities CLO 105 1 — (1 ) 18 (32 ) 91 (1 ) ABS — — — — 171 — 171 — Investment funds — 3 — 108 — — 111 3 Reinsurance recoverable 1,824 (111 ) — — — — 1,713 — Investments of consolidated VIEs Trading securities 48 — — (1 ) — — 47 — Equity securities 28 — — — — — 28 — Investment funds 21 1 — (2 ) — — 20 1 Total Level 3 assets $ 5,422 $ (234 ) $ (15 ) $ 260 $ 249 $ (584 ) $ 5,098 $ — Liabilities Interest sensitive contract liabilities Embedded derivative $ (7,411 ) $ 247 $ — $ (56 ) $ — $ — $ (7,220 ) $ — Universal life benefits (1,005 ) 71 — — — — (934 ) — Future policy benefits AmerUs Closed Block (1,625 ) 84 — — — — (1,541 ) — ILICO Closed Block and life benefits (803 ) 39 — — — — (764 ) — Derivative liabilities (5 ) — — — — — (5 ) — Total Level 3 liabilities $ (10,849 ) $ 441 $ — $ (56 ) $ — $ — $ (10,464 ) $ — 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 March 31, 2019 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets AFS securities Corporate $ 238 $ — $ (1 ) $ (72 ) $ 165 CLO 30 — — — 30 ABS 189 — (33 ) (99 ) 57 CMBS — — — (6 ) (6 ) Trading securities, ABS 6 — — — 6 Investment funds — — — (1 ) (1 ) Investments in related parties AFS securities, ABS 170 — — (1 ) 169 Equity securities 177 — — — 177 Investment funds 19 — — — 19 Investments of consolidated VIEs Trading securities — — (1 ) — (1 ) Equity securities — — (4 ) — (4 ) Total Level 3 assets $ 829 $ — $ (39 ) $ (179 ) $ 611 Liabilities Interest sensitive contract liabilities Embedded derivative $ — $ (233 ) $ — $ 113 $ (120 ) Total Level 3 liabilities $ — $ (233 ) $ — $ 113 $ (120 ) Three months ended March 31, 2018 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets AFS securities Corporate $ 68 $ — $ (5 ) $ (5 ) $ 58 CLO 131 — — — 131 ABS 40 — (20 ) (124 ) (104 ) RMBS 31 — — (8 ) 23 Trading securities, CLO 13 — — (12 ) 1 Equity securities — — (8 ) — (8 ) Investment funds — — — (7 ) (7 ) Investments in related parties AFS securities, CLO 62 — — — 62 Trading securities, CLO — — (1 ) — (1 ) Investment funds 108 — — — 108 Investments of consolidated VIEs Trading securities — — (1 ) — (1 ) Investment funds — — (2 ) — (2 ) Total Level 3 assets $ 453 $ — $ (37 ) $ (156 ) $ 260 Liabilities Interest sensitive contract liabilities Embedded derivative $ — $ (126 ) $ — $ 70 $ (56 ) Total Level 3 liabilities $ — $ (126 ) $ — $ 70 $ (56 ) 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. AFS and trading 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 March 31, 2019 , discounts ranged from 4% to 7% , and as of December 31, 2018 , discounts ranged from 5% to 9% . 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. Nonperformance risk – For contracts we issue, we use the credit spread, relative to the U.S. Department of the Treasury (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: March 31, 2019 (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 $ 9,106 Option budget method Nonperformance risk 0.1 % – 1.3% Decrease Option budget 0.7 % – 3.7% Increase Surrender rate 3.6 % – 7.5% Decrease December 31, 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 $ 7,969 Option budget method Nonperformance risk 0.3 % – 1.5% Decrease Option budget 0.7 % – 3.7% Increase Surrender rate 3.6 % – 7.3% 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: March 31, 2019 (In millions) Carrying Value Fair Value NAV Level 1 Level 2 Level 3 Financial assets Mortgage loans $ 11,010 $ 11,190 $ — $ — $ — $ 11,190 Investment funds 524 524 524 — — — Policy loans 487 487 — — 487 — Funds withheld at interest 14,795 14,795 — — — 14,795 Other investments 69 69 — — — 69 Investments in related parties Mortgage loans 291 286 — — — 286 Investment funds 2,058 2,058 2,058 — — — Funds withheld at interest 13,469 13,469 — — — 13,469 Other investments 387 389 — — — 389 Assets of consolidated VIEs Investment funds 55 55 55 — — — Total financial assets not carried at fair value $ 43,145 $ 43,322 $ 2,637 $ — $ 487 $ 40,198 Financial liabilities Interest sensitive contract liabilities $ 55,220 $ 53,504 $ — $ — $ — $ 53,504 Long-term debt 991 962 — — 962 — Funds withheld liability 712 712 — — 712 — Total financial liabilities not carried at fair value $ 56,923 $ 55,178 $ — $ — $ 1,674 $ 53,504 December 31, 2018 (In millions) Carrying Value Fair Value NAV Level 1 Level 2 Level 3 Financial assets Mortgage loans $ 10,308 $ 10,424 $ — $ — $ — $ 10,424 Investment funds 521 521 521 — — — Policy loans 488 488 — — 488 — Funds withheld at interest 14,966 14,966 — — — 14,966 Other investments 70 70 — — — 70 Investments in related parties Mortgage loans 291 290 — — — 290 Investment funds 2,031 2,031 2,031 — — — Funds withheld at interest 13,687 13,687 — — — 13,687 Other investments 386 361 — — — 361 Assets of consolidated VIEs Investment funds 57 57 57 — — — Total financial assets not carried at fair value $ 42,805 $ 42,895 $ 2,609 $ — $ 488 $ 39,798 Financial liabilities Interest sensitive contract liabilities $ 54,655 $ 51,655 $ — $ — $ — $ 51,655 Long-term debt 991 910 — — 910 — Funds withheld liability 722 722 — — 722 — Total financial liabilities not carried at fair value $ 56,368 $ 53,287 $ — $ — $ 1,632 $ 51,655 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 and funds withheld at interest and liability, 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 value. The valuation of these investment contracts is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using current market risk-free interest rates, adding a spread to reflect our nonperformance risk and subtracting a risk margin to reflect uncertainty inherent in the projected cash flows. Long-term debt – We obtain the fair value of long-term debt from commercial pricing services. These are classified as Level 2. 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. |
Deferred Acquisition Costs, Def
Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired | 3 Months Ended |
Mar. 31, 2019 | |
Insurance [Abstract] | |
Deferred Acquisition Costs, Deferred Sales Inducements, and Value of Business Acquired | 5. 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, 2018 $ 3,921 $ 799 $ 1,187 $ 5,907 Additions 173 60 — 233 Amortization (226 ) (5 ) (5 ) (236 ) Impact of unrealized investment (gains) losses (149 ) (49 ) (87 ) (285 ) Balance at March 31, 2019 $ 3,719 $ 805 $ 1,095 $ 5,619 (In millions) DAC DSI VOBA Total Balance at December 31, 2017 $ 1,375 $ 520 $ 1,077 $ 2,972 Additions 122 46 — 168 Amortization (33 ) (20 ) (49 ) (102 ) Impact of unrealized investment (gains) losses 67 22 79 168 Balance at March 31, 2018 $ 1,531 $ 568 $ 1,107 $ 3,206 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 6. Earnings Per Share The following represents our basic and diluted earnings per share (EPS) calculations: Three months ended March 31, 2019 (In millions, except per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic and diluted $ 589 $ 93 $ 12 $ 3 $ 3 $ 8 Basic weighted average shares outstanding 161.3 25.4 3.4 0.8 1.0 2.1 Dilutive effect of stock compensation plans 0.4 — — — — 0.3 Diluted weighted average shares outstanding 161.7 25.4 3.4 0.8 1.0 2.4 Earnings per share 1 Basic $ 3.65 $ 3.65 $ 3.65 $ 3.65 $ 3.65 $ 3.65 Diluted $ 3.64 $ 3.65 $ 3.65 $ 3.65 $ 3.65 $ 3.15 1 Calculated using whole figures. Three months ended March 31, 2018 (In millions, except per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic and diluted $ 209 $ 58 $ 5 $ 1 $ 1 $ 3 Basic weighted average shares outstanding 148.7 41.1 3.4 0.8 1.0 2.1 Dilutive effect of stock compensation plans 0.3 — — — — 0.9 Diluted weighted average shares outstanding 149.0 41.1 3.4 0.8 1.0 3.0 Earnings per share 1 Basic $ 1.40 $ 1.40 $ 1.40 $ 1.40 $ 1.40 $ 1.40 Diluted $ 1.40 $ 1.40 $ 1.40 $ 1.39 $ 1.38 $ 0.97 1 Calculated using whole figures. We use the two-class method for allocating net income to each class of our common stock. 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 March 31, (In millions) 2019 2018 Antidilutive shares, RSUs and options excluded from diluted EPS calculation 34.7 35.2 Shares, RSUs and options excluded from diluted EPS calculation as a performance condition had not been met 0.1 0.3 Total shares, RSUs and options excluded from diluted EPS calculation 34.8 35.5 Note: Shares, RSUs and options are as of period end. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 7. Equity Share Repurchase Authorization — In December 2018, our board of directors approved an authorization for the repurchase of our Class A shares under our repurchase program. In the first quarter of 2019, our board of directors approved an additional authorization, which was conditioned upon the further approval by a committee of our board of directors. Such further approval was granted during the second quarter of 2019. We may repurchase shares in open market transactions, in privately negotiated transactions or otherwise. The size and timing of repurchases will depend on legal requirements, market and economic conditions and other factors, and are solely at our discretion. The program has no expiration date, but may be modified, suspended or terminated by the board at any time. The following summarizes the activity on our share repurchase authorization: (In millions) Initial authorization $ 250 Repurchases (100 ) Remaining authorization at December 31, 2018 150 Repurchases (47 ) Remaining authorization at March 31, 2019 103 Additional authorization 247 Remaining authorization at May 7, 2019 $ 350 Acc umulated Other Comprehensive Income (Loss)— The following provides the details of AOCI and changes in AOCI: (In millions) March 31, 2019 December 31, 2018 AFS securities $ 1,223 $ (766 ) DAC, DSI, VOBA and future policy benefits adjustments on AFS securities (357 ) 154 Noncredit component of OTTI losses on AFS securities (20 ) (19 ) Hedging instruments 43 51 Pension adjustments (3 ) (2 ) Foreign currency translation adjustments (2 ) (3 ) Accumulated other comprehensive income (loss), before taxes 884 (585 ) Deferred income taxes (178 ) 113 Accumulated other comprehensive income (loss) $ 706 $ (472 ) Changes in AOCI are presented below: Three months ended March 31, (In millions) 2019 2018 Unrealized investment gains (losses) on AFS securities Unrealized investment gains (losses) on AFS securities $ 1,982 $ (1,282 ) Change in DAC, DSI, VOBA and future policy benefits adjustment (511 ) 410 Less: Reclassification adjustment for gains (losses) realized in net income 1 (7 ) 19 Less: Income tax expense (benefit) 293 (159 ) Net unrealized investment gains (losses) on AFS securities 1,185 (732 ) Noncredit component of OTTI losses on AFS securities Noncredit component of OTTI losses on AFS securities (1 ) (1 ) Less: Reclassification adjustment for losses realized in net income 1 — (1 ) Net noncredit component of OTTI losses on AFS securities (1 ) — Unrealized gains (losses) on hedging instruments Unrealized gains (losses) on hedging instruments (8 ) (56 ) Less: Income tax benefit (2 ) (20 ) Net unrealized gains (losses) on hedging instruments (6 ) (36 ) Pension adjustments (1 ) 3 Foreign currency translation adjustments 1 (8 ) Change in AOCI from other comprehensive income (loss) 1,178 (773 ) Adoption of accounting standards — (42 ) Change in AOCI $ 1,178 $ (815 ) 1 Recognized in investment related gains (losses) on the condensed consolidated statements of income. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Parties | 8. 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 March 31, 2019 , AAM directly managed $90,287 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. We currently pay AAM an annual fee of 0.40% , subject to certain discounts and exceptions, on all assets that AAM 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) up to $65,846 million and 0.30% per year on assets managed in excess of such amount. 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) March 31, 2019 December 31, 2018 AFS securities Foreign governments $ 240 $ 153 Corporate 3,680 3,398 CLO 6,487 5,703 ABS 654 663 CMBS 1,011 880 Trading securities 88 87 Equity securities 2 2 Mortgage loans 3,856 3,507 Investment funds 309 157 Funds withheld at interest 4,935 4,126 Other investments 69 70 Total assets sub-advised by Apollo affiliates $ 21,331 $ 18,746 Percent of assets sub-advised by Apollo affiliates to total AAM-managed assets 19 % 18 % AAM pays Apollo 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 , 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 , subject to certain exceptions. Asset management and sub-advisory fees —The following summarizes the asset management fees and sub-advisory fees we have incurred related to AAM and other Apollo affiliates: Three months ended March 31, (In millions) 2019 2018 Asset management fees $ 75 $ 70 Sub-advisory fees 17 13 The management and sub-advisory fees are included within net investment income on the condensed consolidated statements of income. As of March 31, 2019 and December 31, 2018 , the management fees payable was $35 million and $34 million , respectively, and the sub-advisory fees payable was $16 million and $20 million , respectively. Both the management and sub-advisory fees payables are included in other liabilities on the condensed consolidated balance sheets. Our bye-laws currently provide that we may not, and will cause our subsidiaries not to, terminate any investment management agreement (IMA) among us or any of our subsidiaries, on the one hand, and AAM, on the other hand, before any annual anniversary of October 31 (each such date, an IMA Termination Election Date) and any termination on an IMA Termination Election Date requires (i) the approval of two-thirds of our Independent Directors (as defined in the bye-laws) and (ii) prior written notice to AAM of such termination at least 30 days’ prior to an IMA Termination Election Date. If our Independent Directors make such election to terminate and notice of such termination is delivered, the termination will be effective on the second anniversary of the applicable IMA Termination Election Date (IMA Termination Effective Date). Notwithstanding the foregoing, (A) except as set forth in (B) below, our Independent Directors may only elect to terminate an IMA on an IMA Termination Election Date if two-thirds of our Independent Directors determine, in their sole discretion and acting in good faith, that either (i) there has been unsatisfactory long-term performance materially detrimental to us by AAM or (ii) the fees being charged by AAM 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 AAM and AAM will 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 (B) upon the determination by two-thirds of our Independent Directors, we or our subsidiaries may also terminate an IMA with AAM as a result of either (i) a material violation of law relating to AAM’s advisory business, or (ii) AAM’s gross negligence, willful misconduct or reckless disregard of its obligations under the relevant agreement, and in either case, the delivery of written notice at least 30 days’ prior to such termination and such termination will be effective at the end of such 30-day period (the events described in the foregoing clauses (A) and (B) are referred to in more detail in our bye-laws as “AHL Cause”). 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 remuneration from acting as Chief Executive Officer of AAM, and owns a profits interest in AAM. Additionally, six of the fifteen 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 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 Opportunities, L.P. ( A-A Mortgage) – We have an equity method investment of $436 million and $463 million as of March 31, 2019 and December 31, 2018 , respectively, in A-A Mortgage, which has an investment in AmeriHome. We have a loan purchase agreement with AmeriHome. The agreement allows us to purchase residential mortgage loans which AmeriHome has purchased from correspondent sellers and pooled for sale in the secondary market. AmeriHome retains the servicing rights to the sold loans. We purchased $0 million and $44 million of residential mortgage loans under this agreement during the three months ended March 31, 2019 and 2018 , respectively. We also have commitments to make additional equity investments in A-A Mortgage of $169 million as of March 31, 2019 . MidCap – AAA Investment (Co Invest VII), L.P. (CoInvest VII) holds a significant investment in MidCap, which is included in investment funds of consolidated VIEs on the condensed consolidated balance sheets. We have also advanced amounts under a subordinated debt facility to Midcap and, as of March 31, 2019 and December 31, 2018 , the principal balance was $245 million , which is included in other related party investments on the condensed consolidated balance sheets. Our total investment in MidCap, including amounts advanced under credit facilities, was $789 million and $791 million as of March 31, 2019 and December 31, 2018 , respectively. Additionally, we purchased ABS and CLO securities issued by MidCap affiliates during the three months ended March 31, 2019 and 2018 of $2 million and $62 million , respectively, which are included in related party AFS securities on the condensed consolidated balance sheets. Athora – We have a cooperation agreement with Athora, pursuant to which, among other things, (1) we 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 are required to purchase certain funding agreements and/or other spread instruments issued by our insurance subsidiaries, (3) we provide Athora with a right of first refusal to pursue acquisition and reinsurance transactions in Europe (other than the United Kingdom) and (4) Athora provides us and our subsidiaries with a right of first refusal to pursue acquisition and reinsurance transactions in North America and the United Kingdom. Our investment in Athora, which is included in related party investment funds on the condensed consolidated balance sheets, was $124 million and $105 million as of March 31, 2019 and December 31, 2018 , respectively. Additionally, as of March 31, 2019 and December 31, 2018 , we had $163 million and $166 million of funding agreements outstanding to Athora . We also have commitments to make additional equity investments in Athora of $300 million as of March 31, 2019 . Venerable – In connection with our coinsurance and modco agreements with Voya Insurance and Annuity Company (VIAC) , we have an $87 million minority equity investment in VA Capital Company LLC (VA Capital), which is included in related party 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 have a $148 million , 15-year term loan receivable from Venerable, which is held at amortized cost and included in related party other investments on the condensed consolidated balance sheets. While management views the overall transactions with VIAC and Venerable as favorable to us, the stated interest rate of 6.257% on the term loan to Venerable represents a below-market interest rate, and management considered such rate as part of its evaluation and pricing of the Voya reinsurance transactions. Venerable is the holding company of VIAC. Strategic Partnership – On October 24, 2018, we entered into an agreement pursuant to which we may invest up to $2.5 billion over three years in funds managed by Apollo entities (Strategic Partnership). This arrangement is intended to permit us to invest across the Apollo alternatives platform into credit-oriented, strategic and other alternative investments in a manner and size that is consistent with our existing investment strategy. Fees for such investments payable by us to Apollo would be more favorable to us than market rates, and consistent with our existing alternative investments, investments made under the Strategic Partnership require approval of AAM and remain subject to our existing governance processes, including approval by our conflicts committee where applicable. As of March 31, 2019 and December 31, 2018 , we had $16 million of investments under the Strategic Partnership and these investments are classified as investment funds of consolidated VIEs. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Contingent Commitments —We had commitments to make investments, primarily capital contributions to investment funds, inclusive of related party commitments discussed previously, of $2,938 million a nd $3,036 million as of March 31, 2019 and December 31, 2018 , 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 Federal Home Loan Bank (FHLB) and, through membership, we have issued funding agreements to the FHLB in exchange for cash advances. As of March 31, 2019 and December 31, 2018 , we had $926 million of FHLB funding agreements outstanding. 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. As of March 31, 2019 and December 31, 2018 , we had $2,700 million of FABN f unding agreements outstanding . Pledged Assets and Funds in Trust (Restricted Assets)— The total restricted assets included on the condensed consolidated balance sheets are as follows: (In millions) March 31, 2019 December 31, 2018 AFS securities $ 6,543 $ 5,439 Trading securities 277 68 Equity securities 2 2 Mortgage loans 1,967 1,830 Investment funds 56 53 Derivative assets 68 24 Short-term investments 56 77 Other investments 47 47 Restricted cash 497 492 Total restricted assets $ 9,513 $ 8,032 The restricted assets are primarily related to reinsurance trusts established in accordance with coinsurance agreements, and the FHLB funding agreements described above. Letter of Credit— We have an unused letter of credit for $219 million as of March 31, 2019 . This letter of credit was issued for our reinsurance program and expires by December 31, 2020 . Litigation, Claims and Assessments Corporate-owned Life Insurance (COLI) Matter – In 2000 and 2001, two insurance companies, which were subsequently merged into Athene Annuity and Life Company (AAIA), purchased from American General Life Insurance Company (American General) broad based variable COLI policies that, as of March 31, 2019 , had an asset value of $373 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. The Court heard oral arguments on February 13, 2019 and has taken the matter under advisement. 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 $185 million as of March 31, 2019 . Regulatory Matters – 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 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. On January 23, 2019, we received a letter from the NYSDFS, with respect to a recent pension risk transfer (PRT) transaction, which expressed concerns with our interpretation and reliance upon certain exemptions from licensing in New York in connection with certain activities performed by employees in our PRT channel, including specific activities performed within New York. We are currently in discussions with the NYSDFS to identify approaches to resolve its concerns. Reasonably possible losses, if any, cannot be estimated at this time. 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 has moved to dismiss the complaint. On January 21, 2019, plaintiffs filed an amended complaint, which revised certain allegations about jurisdiction, venue and the merits of the plaintiffs’ claims. We have renewed our motion to dismiss and the matter is fully briefed. 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 | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 10. 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 U.S. 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 group annuities, are included in our Retirement Services segment. Corporate and Other — Corporate and Other includes certain other operations related to our corporate activities. Included in Corporate and Other are corporate allocated expenses, merger and acquisition costs, debt costs, certain integration and restructuring costs, certain stock-based compensation and intersegment eliminations. In addition, we also hold capital in excess of the level of capital we hold in Retirement Services to support our operating strategy . 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 adjusted 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 March 31, (In millions) 2019 2018 Retirement Services $ 3,306 $ 1,257 Corporate and Other 32 27 Non-operating adjustments Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets 940 (158 ) Investment gains (losses), net of offsets 713 (106 ) Other adjustments to revenues (30 ) (9 ) Total revenues $ 4,961 $ 1,011 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 presented on the condensed consolidated statements of income: Three months ended March 31, (In millions) 2019 2018 Retirement Services $ 286 $ 239 Corporate and Other 1 2 Non-operating adjustments Investment gains (losses), net of offsets 458 (33 ) Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets (27 ) 86 Integration, restructuring and other non-operating expenses (1 ) (8 ) Stock-based compensation, excluding LTIP (3 ) (3 ) Income tax (expense) benefit – non-operating (6 ) (6 ) Net income $ 708 $ 277 The following represents total assets by segment: (In millions) March 31, 2019 December 31, 2018 Retirement Services $ 130,965 $ 123,498 Corporate and Other 1,892 2,007 Total assets $ 132,857 $ 125,505 |
Business, Basis of Presentati_2
Business, Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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 results for the interim 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, 2018 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, 2018. |
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 Leases (ASU 2019-01, ASU 2018-20, ASU 2018-11, ASU 2018-10, ASU 2018-01, ASU 2017-13 and ASU 2016-02) These updates increase transparency and comparability for lease transactions. ASU 2016-02 requires a lessee to recognize a right-of-use asset and lease liability on the balance sheet for all leases with an original term longer than twelve months and disclose key information about leasing arrangements. Lessor accounting is largely unchanged. ASU 2016-02 requires the adoption on a modified retrospective basis. However, ASU 2018-11 provides the option to recognize the cumulative effect 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. These updates also provide optional practical expedients in transition. We adopted these updates effective January 1, 2019 by recording a lease liability and right-of-use asset related to office space, copiers, reserved areas and equipment at data centers, and other agreements. We will continue to present all prior periods under the previous lease guidance. We elected the “package of practical expedients,” which permits us to maintain our prior conclusions about lease identification, classification and initial direct costs. We also elected the short-term lease exception, which allows us to exclude contracts with a lease term of 12 months or less, including any reasonably certain renewal options, from consideration under the new guidance. This update did not have a material effect on our consolidated financial statements. Derivatives and Hedging (ASU 2018-16) The amendments in this update allow entities to use the Overnight Index Swap rate based on the Secured Overnight Financing Rate as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the previously acceptable rates. We adopted this update prospectively for qualifying new or redesignated hedging relationships entered into on or after January 1, 2019. This update did not have an effect on our consolidated financial statements. 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 adopted this update on a modified retrospective basis effective January 1, 2019. This update did not have a material effect on our consolidated financial statements. Recently Issued Accounting Pronouncements Financial Instruments – Credit Losses (ASU 2019-04, ASU 2018-19 and 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. Available-for-sale (AFS) 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. We are currently evaluating the impact of this guidance on our consolidated financial statements. Collaborative Arrangements (ASU 2018-18) The amendments in this update provide guidance on whether certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606, providing comparability in the presentation of revenue for certain transactions. The update is effective January 1, 2020. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Consolidation (ASU 2018-17) The amendments in this update expand certain discussions in the VIE guidance, including considerations necessary for determining when a decision-making fee is a variable interest. We will be required to adopt this update retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The update is effective January 1, 2020. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Cloud Computing Arrangements (ASU 2018-15) The amendments in this update align the requirements for capitalizing implementation costs incurred in a cloud computing service arrangement with the requirements for capitalizing implementation costs incurred for internal-use software. We will be required to adopt this update on January 1, 2020, and we can elect to adopt this update either prospectively or retrospectively. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Fair Value Measurement – Disclosure Requirements (ASU 2018-13) The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. We will be required to adopt this update on January 1, 2020, and depending on the specific amendment will be required to adopt prospectively or retrospectively. We early adopted the removal and modification of certain disclosures as permitted. We are currently evaluating the impact of the remaining guidance on our consolidated financial statements. Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts (ASU 2018-12) This update amends four key areas pertaining to the accounting and disclosures for long-duration insurance and investment contracts. • The update requires cash flow assumptions used to measure the liability for future policy benefits to be updated at least annually and no longer allows a provision for adverse deviation. The remeasurement of the liability associated with the update of assumptions is required to be recognized in net income. Loss recognition testing is eliminated for traditional and limited-payment contracts. The update also requires the discount rate utilized in measuring the liability to be an upper-medium grade fixed-income instrument yield, which is to be updated at each reporting date. The change in liability due to changes in the discount rate is to be recognized in other comprehensive income. • The update simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs are required to be written off for unexpected contract terminations but are not subject to impairment testing. • The update requires certain contract features meeting the definition of market risk benefits to be measured at fair value. Among the features included in this definition are the guaranteed lifetime withdrawal benefits (GLWB) and guaranteed minimum death benefit (GMDB) riders attached to the Company’s annuity products. The change in fair value of the market risk benefits is to be recognized in net income, excluding the portion attributable to changes in instrument-specific credit risk which is recognized in other comprehensive income. • The update also introduces disclosure requirements around the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs. This includes disaggregated rollforwards of these balances and information about significant inputs, judgments, assumptions and methods used in their measurement. We will be required to adopt this update effective January 1, 2021. Certain provisions of the update are required to be adopted on a fully retrospective basis, while others may be adopted on a modified retrospective basis. Early adoption is permitted. We are currently evaluating the impact of this guidance 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. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments Schedule [Abstract] | |
Available-for-sale Securities | March 31, 2019 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI AFS securities U.S. government and agencies $ 48 $ 2 $ — $ 50 $ — U.S. state, municipal and political subdivisions 1,209 161 (5 ) 1,365 — Foreign governments 262 9 — 271 — Corporate 40,727 1,218 (534 ) 41,411 — CLO 6,320 6 (184 ) 6,142 — ABS 5,023 85 (33 ) 5,075 1 CMBS 2,394 50 (20 ) 2,424 7 RMBS 7,457 480 (20 ) 7,917 12 Total AFS securities 63,440 2,011 (796 ) 64,655 20 AFS securities – related party Corporate 3 — — 3 — CLO 654 — (16 ) 638 — ABS 1,039 11 (7 ) 1,043 — Total AFS securities – related party 1,696 11 (23 ) 1,684 — Total AFS securities including related party $ 65,136 $ 2,022 $ (819 ) $ 66,339 $ 20 December 31, 2018 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI AFS securities U.S. government and agencies $ 57 $ — $ — $ 57 $ — U.S. state, municipal and political subdivisions 1,183 117 (7 ) 1,293 — Foreign governments 162 2 (3 ) 161 — Corporate 38,018 394 (1,315 ) 37,097 1 CLO 5,658 2 (299 ) 5,361 — ABS 4,915 53 (48 ) 4,920 — CMBS 2,390 27 (60 ) 2,357 7 RMBS 7,642 413 (36 ) 8,019 11 Total AFS securities 60,025 1,008 (1,768 ) 59,265 19 AFS securities – related party CLO 587 — (25 ) 562 — ABS 875 4 (4 ) 875 — Total AFS securities – related party 1,462 4 (29 ) 1,437 — Total AFS securities including related party $ 61,487 $ 1,012 $ (1,797 ) $ 60,702 $ 19 |
Available-for-sale Securities by Contractual Maturity | The amortized cost and fair value of AFS securities, including related party, are shown by contractual maturity below: March 31, 2019 (In millions) Amortized Cost Fair Value AFS securities Due in one year or less $ 1,081 $ 1,082 Due after one year through five years 8,855 8,988 Due after five years through ten years 11,209 11,339 Due after ten years 21,101 21,688 CLO, ABS, CMBS and RMBS 21,194 21,558 Total AFS securities 63,440 64,655 AFS securities – related party Due after five years through ten years 3 3 CLO and ABS 1,693 1,681 Total AFS securities – related party 1,696 1,684 Total AFS securities including related party $ 65,136 $ 66,339 |
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: March 31, 2019 Less than 12 months 12 months or more Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Fair Value Gross AFS securities U.S. government and agencies $ 2 $ — $ 7 $ — $ 9 $ — U.S. state, municipal and political subdivisions 19 — 75 (5 ) 94 (5 ) Foreign governments 8 — 19 — 27 — Corporate 4,840 (141 ) 8,191 (393 ) 13,031 (534 ) CLO 4,782 (179 ) 161 (5 ) 4,943 (184 ) ABS 719 (10 ) 562 (23 ) 1,281 (33 ) CMBS 439 (8 ) 463 (12 ) 902 (20 ) RMBS 942 (16 ) 138 (4 ) 1,080 (20 ) Total AFS securities 11,751 (354 ) 9,616 (442 ) 21,367 (796 ) AFS securities – related party Corporate — — 3 — 3 — CLO 553 (16 ) — — 553 (16 ) ABS 324 (6 ) 72 (1 ) 396 (7 ) Total AFS securities – related party 877 (22 ) 75 (1 ) 952 (23 ) Total AFS securities including related party $ 12,628 $ (376 ) $ 9,691 $ (443 ) $ 22,319 $ (819 ) December 31, 2018 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 AFS securities U.S. government and agencies $ 32 $ — $ 2 $ — $ 34 $ — U.S. state, municipal and political subdivisions 139 (2 ) 82 (5 ) 221 (7 ) Foreign governments 97 (2 ) 15 (1 ) 112 (3 ) Corporate 20,213 (942 ) 4,118 (373 ) 24,331 (1,315 ) CLO 5,054 (297 ) 90 (2 ) 5,144 (299 ) ABS 1,336 (23 ) 506 (25 ) 1,842 (48 ) CMBS 932 (27 ) 497 (33 ) 1,429 (60 ) RMBS 1,417 (31 ) 140 (5 ) 1,557 (36 ) Total AFS securities 29,220 (1,324 ) 5,450 (444 ) 34,670 (1,768 ) AFS securities – related party CLO 534 (25 ) — — 534 (25 ) ABS 306 (2 ) 116 (2 ) 422 (4 ) Total AFS securities – related party 840 (27 ) 116 (2 ) 956 (29 ) Total AFS securities including related party $ 30,060 $ (1,351 ) $ 5,566 $ (446 ) $ 35,626 $ (1,797 ) |
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 securities, for which a portion of the securities’ total OTTI was recognized in AOCI: Three months ended March 31, (In millions) 2019 2018 Beginning balance $ 10 $ 14 Initial impairments – credit loss OTTI recognized on securities not previously impaired — 1 Additional impairments – credit loss OTTI recognized on securities previously impaired 1 — Reduction in impairments from securities sold, matured or repaid — (8 ) Ending balance $ 11 $ 7 |
Net Investment Income | Net Investment Income —Net investment income by asset class consists of the following: Three months ended March 31, (In millions) 2019 2018 AFS securities $ 753 $ 668 Trading securities 42 44 Equity securities 3 2 Mortgage loans 151 91 Investment funds 10 65 Funds withheld at interest 163 46 Other 39 23 Investment revenue 1,161 939 Investment expenses (95 ) (84 ) Net investment income $ 1,066 $ 855 |
Investment Related Gains (Losses) | The following table summarizes the change in unrealized gains (losses) on trading and equity securities, including related party and consolidated VIEs, we still held as of the respective period end: Three months ended March 31, (In millions) 2019 2018 Trading securities $ 71 $ (69 ) Trading securities – related party (3 ) (2 ) VIE trading securities – related party 1 — Equity securities 18 — Equity securities – related party 3 — VIE equity securities – related party — 25 Investment Related Gains (Losses) —Investment related gains (losses) by asset class consists of the following: Three months ended March 31, (In millions) 2019 2018 AFS securities Gross realized gains on investment activity $ 17 $ 21 Gross realized losses on investment activity (13 ) (6 ) Net realized investment gains on AFS securities 4 15 Net recognized investment gains (losses) on trading securities 49 (89 ) Net recognized investment gains on equity securities 18 1 Derivative gains (losses) 1,692 (184 ) Other gains 9 21 Investment related gains (losses) $ 1,772 $ (236 ) |
Purchased Credit Impaired (PCI) Investments | Purchased Credit Impaired (PCI) Investments —The following table summarizes our PCI investments: Fixed maturity securities Mortgage loans (In millions) March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Contractually required payments receivable $ 7,931 $ 8,179 $ 2,870 $ 2,675 Less: Cash flows expected to be collected 1 (6,968 ) (7,195 ) (2,829 ) (2,628 ) Non-accretable difference $ 963 $ 984 $ 41 $ 47 Cash flows expected to be collected 1 $ 6,968 $ 7,195 $ 2,829 $ 2,628 Less: Amortized cost (5,392 ) (5,518 ) (2,117 ) (1,931 ) Accretable difference $ 1,576 $ 1,677 $ 712 $ 697 Fair value $ 5,774 $ 5,828 $ 2,138 $ 1,933 Outstanding balance 6,619 6,773 2,395 2,210 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: March 31, 2019 (In millions) Fixed maturity securities Mortgage loans Contractually required payments receivable $ 66 $ 382 Cash flows expected to be collected 51 382 Fair value 44 292 The following table summarizes the activity for the accretable yield on PCI investments: Three months ended March 31, 2019 (In millions) Fixed maturity securities Mortgage loans Beginning balance at January 1 $ 1,677 $ 697 Purchases of PCI investments, net of sales 8 40 Accretion (91 ) (32 ) Net reclassification from (to) non-accretable difference (18 ) 7 Ending balance at March 31 $ 1,576 $ 712 |
Mortgage Loans, Net | The distribution of commercial mortgage loans, including those under development, net of valuation allowances, by property type and geographic region, is as follows: March 31, 2019 December 31, 2018 (In millions, except for percentages) Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total Property type Office building $ 2,527 32.4 % $ 2,221 30.5 % Retail 1,797 23.1 % 1,660 22.7 % Hotels 1,040 13.4 % 1,040 14.3 % Industrial 1,232 15.8 % 1,196 16.4 % Apartment 899 11.6 % 791 10.8 % Other commercial 284 3.7 % 389 5.3 % Total commercial mortgage loans $ 7,779 100.0 % $ 7,297 100.0 % U.S. Region East North Central $ 846 10.9 % $ 855 11.7 % East South Central 200 2.6 % 295 4.0 % Middle Atlantic 1,434 18.4 % 1,131 15.5 % Mountain 603 7.8 % 616 8.4 % New England 373 4.8 % 374 5.1 % Pacific 1,791 23.0 % 1,540 21.1 % South Atlantic 1,518 19.5 % 1,468 20.2 % West North Central 158 2.0 % 173 2.4 % West South Central 856 11.0 % 845 11.6 % Total U.S. Region 7,779 100.0 % 7,297 100.0 % Total commercial mortgage loans $ 7,779 100.0 % $ 7,297 100.0 % Our residential mortgage loan portfolio includes first lien residential mortgage loans collateralized by properties located in the U.S. and is summarized in the following table: March 31, 2019 December 31, 2018 California 33.7 % 30.3 % Florida 15.7 % 16.3 % New York 7.2 % 7.7 % Texas 6.4 % 3.3 % Other 1 37.0 % 42.4 % Total residential mortgage loan percentage 100.0 % 100.0 % 1 Represents all other states, with each individual state comprising less than 5% of the portfolio. Mortgage Loans, including related party —Mortgage loans, net of allowances, consists of the following: (In millions) March 31, 2019 December 31, 2018 Commercial mortgage loans $ 7,693 $ 7,217 Commercial mortgage loans under development 86 80 Total commercial mortgage loans 7,779 7,297 Residential mortgage loans 3,554 3,334 Mortgage loans, net of allowances $ 11,333 $ 10,631 |
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) March 31, 2019 December 31, 2018 Less than 50% $ 2,060 $ 1,883 50% to 60% 1,986 1,988 61% to 70% 2,856 2,394 71% to 80% 702 898 81% to 100% 89 54 Commercial mortgage loans $ 7,693 $ 7,217 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) March 31, 2019 December 31, 2018 Greater than 1.20x $ 7,057 $ 6,576 1.00x – 1.20x 360 474 Less than 1.00x 276 167 Commercial mortgage loans $ 7,693 $ 7,217 |
Investment Funds | 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) March 31, 2019 December 31, 2018 Ownership Percentage 3% – 49% $ 699 $ 687 Less than 3% 177 194 Fair value option investment funds $ 876 $ 881 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) March 31, 2019 December 31, 2018 Ownership Percentage 3% – 49% $ 699 $ 687 Less than 3% 177 194 Fair value option investment funds $ 876 $ 881 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) March 31, 2019 December 31, 2018 Ownership Percentage 100% $ 15 $ 17 50% – 99% 1,017 1,044 3% – 49% 1,684 1,617 Equity method investment funds $ 2,716 $ 2,678 The following summarizes our investment funds, including related party and those owned by consolidated VIEs: March 31, 2019 December 31, 2018 1 (In millions, except for percentages and years) Carrying value Percent of total Carrying value Percent of total Investment funds Real estate $ 224 32.8 % $ 215 30.6 % Credit funds 155 22.7 % 172 24.5 % Private equity 239 35.0 % 253 36.0 % Real assets 64 9.4 % 56 7.9 % Natural resources 1 0.1 % 4 0.6 % Other — — % 3 0.4 % Total investment funds 683 100.0 % 703 100.0 % Investment funds – related parties Differentiated investments AmeriHome Mortgage Company, LLC (AmeriHome) 2 436 19.0 % 463 20.7 % Catalina Holdings Ltd. (Catalina) 232 10.1 % 233 10.4 % Athora Holding Ltd. (Athora) 2 124 5.4 % 105 4.7 % Venerable Holdings, Inc. (Venerable) 2 87 3.8 % 92 4.1 % Other 171 7.5 % 162 7.3 % Total differentiated investments 1,050 45.8 % 1,055 47.2 % Real estate 498 21.8 % 506 22.7 % Credit funds 340 14.8 % 341 15.3 % Private equity 52 2.3 % 18 0.8 % Real assets 144 6.3 % 145 6.5 % Natural resources 123 5.4 % 104 4.7 % Public equities 83 3.6 % 63 2.8 % Total investment funds – related parties 2,290 100.0 % 2,232 100.0 % Investment funds owned by consolidated VIEs MidCap FinCo Limited (MidCap) 2 550 88.8 % 552 88.4 % Credit funds 1 0.2 % 1 0.2 % Real estate 29 4.7 % 30 4.8 % Real assets 39 6.3 % 41 6.6 % Total investment funds owned by consolidated VIEs 619 100.0 % 624 100.0 % Total investment funds including related parties and funds owned by consolidated VIEs $ 3,592 $ 3,559 1 Certain reclassifications have been made to conform with current year presentation. 2 See further discussions on AmeriHome, Athora, Venerable and MidCap in Note 8 – Related Parties. |
Schedule of Variable Interest Entities | The following summarizes the carrying value and maximum loss exposure of these non-consolidated investments: March 31, 2019 December 31, 2018 (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment funds $ 683 $ 1,271 $ 703 $ 1,329 Investment in related parties – investment funds 2,290 4,301 2,232 4,331 Assets of consolidated VIEs – investment funds 619 722 624 727 Investment in fixed maturity securities 22,107 21,748 21,188 21,139 Investment in related parties – fixed maturity securities 1,920 2,010 1,686 1,788 Investment in related parties – equity securities 301 301 120 120 Total non-consolidated investments $ 27,920 $ 30,353 $ 26,553 $ 29,434 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: March 31, 2019 December 31, 2018 Notional Amount Fair Value Notional Amount Fair Value (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedges Foreign currency swaps 2,275 $ 68 $ 49 2,041 $ 83 $ 55 Foreign currency forwards 154 2 — 85 — 1 Total derivatives designated as hedges 70 49 83 56 Derivatives not designated as hedges Equity options 49,566 1,824 22 49,821 942 11 Futures 6 8 1 4 9 3 Total return swaps 60 4 — 62 — 3 Foreign currency swaps 38 3 1 38 3 2 Interest rate swaps 310 — 1 326 — 1 Credit default swaps 10 — 4 10 — 4 Foreign currency forwards 795 11 7 646 6 5 Embedded derivatives Funds withheld including related party — 660 12 — (53 ) (1 ) Interest sensitive contract liabilities — — 9,106 — — 7,969 Total derivatives not designated as hedges 2,510 9,154 907 7,997 Total derivatives $ 2,580 $ 9,203 $ 990 $ 8,053 |
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 March 31, (In millions) 2019 2018 Equity options $ 849 $ (142 ) Futures (11 ) (5 ) Swaps 18 2 Foreign currency forwards 6 (7 ) Embedded derivatives on funds withheld 830 (32 ) Amounts recognized in investment related gains (losses) 1,692 (184 ) Embedded derivatives in indexed annuity products 1 (1,017 ) 247 Total gains (losses) on derivatives not designated as hedges $ 675 $ 63 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 March 31, 2019 Derivative assets $ 1,920 $ (65 ) $ (1,781 ) $ 74 $ (3 ) $ 71 Derivative liabilities (85 ) 65 14 (6 ) — (6 ) December 31, 2018 Derivative assets $ 1,043 $ (52 ) $ (969 ) $ 22 $ (4 ) $ 18 Derivative liabilities (85 ) 52 24 (9 ) — (9 ) 1 T he gross amounts of recognized derivative assets and derivative liabilities are reported on the c ondensed c onsolidated balance sheets. As of March 31, 2019 and December 31, 2018, 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 March 31, 2019 Derivative assets $ 1,920 $ (65 ) $ (1,781 ) $ 74 $ (3 ) $ 71 Derivative liabilities (85 ) 65 14 (6 ) — (6 ) December 31, 2018 Derivative assets $ 1,043 $ (52 ) $ (969 ) $ 22 $ (4 ) $ 18 Derivative liabilities (85 ) 52 24 (9 ) — (9 ) 1 T he gross amounts of recognized derivative assets and derivative liabilities are reported on the c ondensed c onsolidated balance sheets. As of March 31, 2019 and December 31, 2018, 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. |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: March 31, 2019 (In millions) Total NAV Level 1 Level 2 Level 3 Assets AFS securities U.S. government and agencies $ 50 $ — $ 49 $ 1 $ — U.S. state, municipal and political subdivisions 1,365 — — 1,365 — Foreign governments 271 — — 271 — Corporate 41,411 — — 40,376 1,035 CLO 6,142 — — 6,032 110 ABS 5,075 — — 3,461 1,614 CMBS 2,424 — — 2,250 174 RMBS 7,917 — — 7,860 57 Total AFS securities 64,655 — 49 61,616 2,990 Trading securities U.S. government and agencies 5 — 3 2 — U.S. state, municipal and political subdivisions 130 — — 130 — Foreign governments 17 — — 17 — Corporate 1,555 — — 1,545 10 CLO 20 — — 12 8 ABS 100 — — 94 6 CMBS 50 — — 50 — RMBS 379 — — 293 86 Total trading securities 2,256 — 3 2,143 110 Equity securities 252 — 47 202 3 Mortgage loans 32 — — — 32 Investment funds 159 134 — — 25 Funds withheld at interest – embedded derivative 446 — — — 446 Derivative assets 1,920 — 8 1,912 — Short-term investments 155 — 50 105 — Other investments 52 — — 52 — Cash and cash equivalents 3,021 — 3,021 — — Restricted cash 497 — 497 — — Investments in related parties AFS securities Corporate 3 — — 3 — CLO 638 — — 638 — ABS 1,043 — — 546 497 Total AFS securities – related party 1,684 — — 1,187 497 Trading securities CLO 101 — — 46 55 ABS 138 — — — 138 Total trading securities – related party 239 — — 46 193 Equity securities 301 — — — 301 Investment funds 232 108 — — 124 Funds withheld at interest – embedded derivative 214 — — — 214 Reinsurance recoverable 1,737 — — — 1,737 Assets of consolidated VIEs Trading securities 34 — — — 34 Equity securities 6 — — — 6 Investment funds 564 550 — — 14 Cash and cash equivalents 2 — 2 — — Total assets measured at fair value $ 78,458 $ 792 $ 3,677 $ 67,263 $ 6,726 (Continued) March 31, 2019 (In millions) Total NAV Level 1 Level 2 Level 3 Liabilities Interest sensitive contract liabilities Embedded derivative $ 9,106 $ — $ — $ — $ 9,106 Universal life benefits 979 — — — 979 Future policy benefits AmerUs Life Insurance Company (AmerUs) Closed Block 1,483 — — — 1,483 Indianapolis Life Insurance Company (ILICO) Closed Block and life benefits 743 — — — 743 Derivative liabilities 85 — 1 80 4 Funds withheld liability – embedded derivative 12 — — 12 — Total liabilities measured at fair value $ 12,408 $ — $ 1 $ 92 $ 12,315 (Concluded) December 31, 2018 (In millions) Total NAV Level 1 Level 2 Level 3 Assets AFS securities U.S. government and agencies $ 57 $ — $ 54 $ 3 $ — U.S. state, municipal and political subdivisions 1,293 — — 1,293 — Foreign governments 161 — — 161 — Corporate 37,097 — — 36,199 898 CLO 5,361 — — 5,254 107 ABS 4,920 — — 3,305 1,615 CMBS 2,357 — — 2,170 187 RMBS 8,019 — — 7,963 56 Total AFS securities 59,265 — 54 56,348 2,863 Trading securities U.S. government and agencies 5 — 3 2 — U.S. state, municipal and political subdivisions 126 — — 126 — Corporate 1,287 — — 1,287 — CLO 9 — — 8 1 ABS 87 — — 87 — CMBS 49 — — 49 — RMBS 386 — — 252 134 Total trading securities 1,949 — 3 1,811 135 Equity securities 216 — 40 173 3 Mortgage loans 32 — — — 32 Investment funds 182 153 — — 29 Funds withheld at interest – embedded derivative 57 — — — 57 Derivative assets 1,043 — 9 1,034 — Short-term investments 191 — 66 125 — Other investments 52 — — 52 — Cash and cash equivalents 2,911 — 2,911 — — Restricted cash 492 — 492 — — (Continued) December 31, 2018 (In millions) Total NAV Level 1 Level 2 Level 3 Investments in related parties AFS securities CLO 562 — — 562 — ABS 875 — — 547 328 Total AFS securities – related party 1,437 — — 1,109 328 Trading securities CLO 100 — — 22 78 ABS 149 — — — 149 Total trading securities – related party 249 — — 22 227 Equity securities 120 — — — 120 Investment funds 201 96 — — 105 Funds withheld at interest - embedded derivative (110 ) — — — (110 ) Reinsurance recoverable 1,676 — — — 1,676 Assets of consolidated VIEs Trading securities 35 — — — 35 Equity securities 50 — 37 — 13 Investment funds 567 552 — — 15 Cash and cash equivalents 2 — 2 — — Total assets measured at fair value $ 70,617 $ 801 $ 3,614 $ 60,674 $ 5,528 Liabilities Interest sensitive contract liabilities Embedded derivative $ 7,969 $ — $ — $ — $ 7,969 Universal life benefits 932 — — — 932 Future policy benefits AmerUs Closed Block 1,443 — — — 1,443 ILICO Closed Block and life benefits 730 — — — 730 Derivative liabilities 85 — 3 78 4 Funds withheld liability – embedded derivative (1 ) — — (1 ) — Total liabilities measured at fair value $ 11,158 $ — $ 3 $ 77 $ 11,078 (Concluded) |
Summary of Fair Value Option | The following summarizes information for fair value option mortgage loans: (In millions) March 31, 2019 December 31, 2018 Unpaid principal balance $ 30 $ 30 Mark to fair value 2 2 Fair value $ 32 $ 32 The following represents the gains (losses) recorded for instruments for which we have elected the fair value option, including related parties and consolidated VIEs: Three months ended March 31, (In millions) 2019 2018 Trading securities $ 50 $ (89 ) Investment funds (4 ) 2 Future policy benefits (40 ) 84 Total gains (losses) $ 6 $ (3 ) |
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 March 31, 2019 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 AFS securities Corporate $ 898 $ (2 ) $ 5 $ 165 $ — $ (31 ) $ 1,035 $ — CLO 107 — 2 30 — (29 ) 110 — ABS 1,615 3 16 57 19 (96 ) 1,614 — CMBS 187 — 2 (6 ) 8 (17 ) 174 — RMBS 56 — 1 — — — 57 — Trading securities Corporate — — — — 10 — 10 — CLO 1 — — — 7 — 8 1 ABS — — — 6 — — 6 — RMBS 134 (3 ) — — 38 (83 ) 86 2 Equity securities 3 — — — — — 3 — Mortgage loans 32 — — — — — 32 — Investment funds 29 (3 ) — (1 ) — — 25 (3 ) Funds withheld at interest – embedded derivative 57 389 — — — — 446 — Investments in related parties AFS securities, ABS 328 — — 169 — — 497 — Trading securities CLO 78 (1 ) — — — (22 ) 55 4 ABS 149 (11 ) — — — — 138 (11 ) Equity securities 120 4 — 177 — — 301 4 Investment funds 105 — — 19 — — 124 — Funds withheld at interest – embedded derivative (110 ) 324 — — — — 214 — Reinsurance recoverable 1,676 61 — — — — 1,737 — Investments of consolidated VIEs Trading securities 35 — — (1 ) — — 34 — Equity securities 13 (3 ) — (4 ) — — 6 — Investment funds 15 (1) — — — — 14 — Total Level 3 assets $ 5,528 $ 757 $ 26 $ 611 $ 82 $ (278 ) $ 6,726 $ (3 ) Liabilities Interest sensitive contract liabilities Embedded derivative $ (7,969 ) $ (1,017 ) $ — $ (120 ) $ — $ — $ (9,106 ) $ — Universal life benefits (932 ) (47 ) — — — — (979 ) — Future policy benefits AmerUs Closed Block (1,443 ) (40 ) — — — — (1,483 ) — ILICO Closed Block and life benefits (730 ) (13 ) — — — — (743 ) — Derivative liabilities (4 ) — — — — — (4 ) — Total Level 3 liabilities $ (11,078 ) $ (1,117 ) $ — $ (120 ) $ — $ — $ (12,315 ) $ — 1 Related to instruments held at end of period. Three months ended March 31, 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 AFS Securities Corporate 578 4 (4 ) 58 53 (8 ) 681 — CLO 64 — 2 131 — (30 ) 167 — ABS 1,457 2 (7 ) (104 ) — (58 ) 1,290 — CMBS 137 — (1 ) — — (73 ) 63 — RMBS 301 1 (5 ) 23 7 (289 ) 38 — Trading securities U.S. state, municipal and political subdivisions 17 — — — — — 17 — CLO 17 — — 1 — (17 ) 1 — ABS 77 — — — — (77 ) — (3 ) RMBS 342 (21 ) — — — — 321 — Equity Securities 8 — — (8 ) — — — — Mortgage loans 41 — — — — — 41 — Investment funds 41 (9 ) — (7 ) — — 25 — Funds withheld at interest – embedded derivative 312 (105 ) — — — — 207 — Investments in related parties AFS Securities CLO — — — 62 — — 62 — ABS 4 — — — — — 4 — Trading securities CLO 105 1 — (1 ) 18 (32 ) 91 (1 ) ABS — — — — 171 — 171 — Investment funds — 3 — 108 — — 111 3 Reinsurance recoverable 1,824 (111 ) — — — — 1,713 — Investments of consolidated VIEs Trading securities 48 — — (1 ) — — 47 — Equity securities 28 — — — — — 28 — Investment funds 21 1 — (2 ) — — 20 1 Total Level 3 assets $ 5,422 $ (234 ) $ (15 ) $ 260 $ 249 $ (584 ) $ 5,098 $ — Liabilities Interest sensitive contract liabilities Embedded derivative $ (7,411 ) $ 247 $ — $ (56 ) $ — $ — $ (7,220 ) $ — Universal life benefits (1,005 ) 71 — — — — (934 ) — Future policy benefits AmerUs Closed Block (1,625 ) 84 — — — — (1,541 ) — ILICO Closed Block and life benefits (803 ) 39 — — — — (764 ) — Derivative liabilities (5 ) — — — — — (5 ) — Total Level 3 liabilities $ (10,849 ) $ 441 $ — $ (56 ) $ — $ — $ (10,464 ) $ — 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 March 31, 2019 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets AFS securities Corporate $ 238 $ — $ (1 ) $ (72 ) $ 165 CLO 30 — — — 30 ABS 189 — (33 ) (99 ) 57 CMBS — — — (6 ) (6 ) Trading securities, ABS 6 — — — 6 Investment funds — — — (1 ) (1 ) Investments in related parties AFS securities, ABS 170 — — (1 ) 169 Equity securities 177 — — — 177 Investment funds 19 — — — 19 Investments of consolidated VIEs Trading securities — — (1 ) — (1 ) Equity securities — — (4 ) — (4 ) Total Level 3 assets $ 829 $ — $ (39 ) $ (179 ) $ 611 Liabilities Interest sensitive contract liabilities Embedded derivative $ — $ (233 ) $ — $ 113 $ (120 ) Total Level 3 liabilities $ — $ (233 ) $ — $ 113 $ (120 ) Three months ended March 31, 2018 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Assets AFS securities Corporate $ 68 $ — $ (5 ) $ (5 ) $ 58 CLO 131 — — — 131 ABS 40 — (20 ) (124 ) (104 ) RMBS 31 — — (8 ) 23 Trading securities, CLO 13 — — (12 ) 1 Equity securities — — (8 ) — (8 ) Investment funds — — — (7 ) (7 ) Investments in related parties AFS securities, CLO 62 — — — 62 Trading securities, CLO — — (1 ) — (1 ) Investment funds 108 — — — 108 Investments of consolidated VIEs Trading securities — — (1 ) — (1 ) Investment funds — — (2 ) — (2 ) Total Level 3 assets $ 453 $ — $ (37 ) $ (156 ) $ 260 Liabilities Interest sensitive contract liabilities Embedded derivative $ — $ (126 ) $ — $ 70 $ (56 ) Total Level 3 liabilities $ — $ (126 ) $ — $ 70 $ (56 ) |
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: March 31, 2019 (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 $ 9,106 Option budget method Nonperformance risk 0.1 % – 1.3% Decrease Option budget 0.7 % – 3.7% Increase Surrender rate 3.6 % – 7.5% Decrease December 31, 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 $ 7,969 Option budget method Nonperformance risk 0.3 % – 1.5% Decrease Option budget 0.7 % – 3.7% Increase Surrender rate 3.6 % – 7.3% 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: March 31, 2019 (In millions) Carrying Value Fair Value NAV Level 1 Level 2 Level 3 Financial assets Mortgage loans $ 11,010 $ 11,190 $ — $ — $ — $ 11,190 Investment funds 524 524 524 — — — Policy loans 487 487 — — 487 — Funds withheld at interest 14,795 14,795 — — — 14,795 Other investments 69 69 — — — 69 Investments in related parties Mortgage loans 291 286 — — — 286 Investment funds 2,058 2,058 2,058 — — — Funds withheld at interest 13,469 13,469 — — — 13,469 Other investments 387 389 — — — 389 Assets of consolidated VIEs Investment funds 55 55 55 — — — Total financial assets not carried at fair value $ 43,145 $ 43,322 $ 2,637 $ — $ 487 $ 40,198 Financial liabilities Interest sensitive contract liabilities $ 55,220 $ 53,504 $ — $ — $ — $ 53,504 Long-term debt 991 962 — — 962 — Funds withheld liability 712 712 — — 712 — Total financial liabilities not carried at fair value $ 56,923 $ 55,178 $ — $ — $ 1,674 $ 53,504 December 31, 2018 (In millions) Carrying Value Fair Value NAV Level 1 Level 2 Level 3 Financial assets Mortgage loans $ 10,308 $ 10,424 $ — $ — $ — $ 10,424 Investment funds 521 521 521 — — — Policy loans 488 488 — — 488 — Funds withheld at interest 14,966 14,966 — — — 14,966 Other investments 70 70 — — — 70 Investments in related parties Mortgage loans 291 290 — — — 290 Investment funds 2,031 2,031 2,031 — — — Funds withheld at interest 13,687 13,687 — — — 13,687 Other investments 386 361 — — — 361 Assets of consolidated VIEs Investment funds 57 57 57 — — — Total financial assets not carried at fair value $ 42,805 $ 42,895 $ 2,609 $ — $ 488 $ 39,798 Financial liabilities Interest sensitive contract liabilities $ 54,655 $ 51,655 $ — $ — $ — $ 51,655 Long-term debt 991 910 — — 910 — Funds withheld liability 722 722 — — 722 — Total financial liabilities not carried at fair value $ 56,368 $ 53,287 $ — $ — $ 1,632 $ 51,655 |
Deferred Acquisition Costs, D_2
Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 $ 3,921 $ 799 $ 1,187 $ 5,907 Additions 173 60 — 233 Amortization (226 ) (5 ) (5 ) (236 ) Impact of unrealized investment (gains) losses (149 ) (49 ) (87 ) (285 ) Balance at March 31, 2019 $ 3,719 $ 805 $ 1,095 $ 5,619 (In millions) DAC DSI VOBA Total Balance at December 31, 2017 $ 1,375 $ 520 $ 1,077 $ 2,972 Additions 122 46 — 168 Amortization (33 ) (20 ) (49 ) (102 ) Impact of unrealized investment (gains) losses 67 22 79 168 Balance at March 31, 2018 $ 1,531 $ 568 $ 1,107 $ 3,206 |
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, 2018 $ 3,921 $ 799 $ 1,187 $ 5,907 Additions 173 60 — 233 Amortization (226 ) (5 ) (5 ) (236 ) Impact of unrealized investment (gains) losses (149 ) (49 ) (87 ) (285 ) Balance at March 31, 2019 $ 3,719 $ 805 $ 1,095 $ 5,619 (In millions) DAC DSI VOBA Total Balance at December 31, 2017 $ 1,375 $ 520 $ 1,077 $ 2,972 Additions 122 46 — 168 Amortization (33 ) (20 ) (49 ) (102 ) Impact of unrealized investment (gains) losses 67 22 79 168 Balance at March 31, 2018 $ 1,531 $ 568 $ 1,107 $ 3,206 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 (In millions, except per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic and diluted $ 589 $ 93 $ 12 $ 3 $ 3 $ 8 Basic weighted average shares outstanding 161.3 25.4 3.4 0.8 1.0 2.1 Dilutive effect of stock compensation plans 0.4 — — — — 0.3 Diluted weighted average shares outstanding 161.7 25.4 3.4 0.8 1.0 2.4 Earnings per share 1 Basic $ 3.65 $ 3.65 $ 3.65 $ 3.65 $ 3.65 $ 3.65 Diluted $ 3.64 $ 3.65 $ 3.65 $ 3.65 $ 3.65 $ 3.15 1 Calculated using whole figures. Three months ended March 31, 2018 (In millions, except per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income – basic and diluted $ 209 $ 58 $ 5 $ 1 $ 1 $ 3 Basic weighted average shares outstanding 148.7 41.1 3.4 0.8 1.0 2.1 Dilutive effect of stock compensation plans 0.3 — — — — 0.9 Diluted weighted average shares outstanding 149.0 41.1 3.4 0.8 1.0 3.0 Earnings per share 1 Basic $ 1.40 $ 1.40 $ 1.40 $ 1.40 $ 1.40 $ 1.40 Diluted $ 1.40 $ 1.40 $ 1.40 $ 1.39 $ 1.38 $ 0.97 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 March 31, (In millions) 2019 2018 Antidilutive shares, RSUs and options excluded from diluted EPS calculation 34.7 35.2 Shares, RSUs and options excluded from diluted EPS calculation as a performance condition had not been met 0.1 0.3 Total shares, RSUs and options excluded from diluted EPS calculation 34.8 35.5 Note: Shares, RSUs and options are as of period end. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Share Repurchase Authorization | The following summarizes the activity on our share repurchase authorization: (In millions) Initial authorization $ 250 Repurchases (100 ) Remaining authorization at December 31, 2018 150 Repurchases (47 ) Remaining authorization at March 31, 2019 103 Additional authorization 247 Remaining authorization at May 7, 2019 $ 350 |
Accumulated Other Comprehensive Income | The following provides the details of AOCI and changes in AOCI: (In millions) March 31, 2019 December 31, 2018 AFS securities $ 1,223 $ (766 ) DAC, DSI, VOBA and future policy benefits adjustments on AFS securities (357 ) 154 Noncredit component of OTTI losses on AFS securities (20 ) (19 ) Hedging instruments 43 51 Pension adjustments (3 ) (2 ) Foreign currency translation adjustments (2 ) (3 ) Accumulated other comprehensive income (loss), before taxes 884 (585 ) Deferred income taxes (178 ) 113 Accumulated other comprehensive income (loss) $ 706 $ (472 ) Changes in AOCI are presented below: Three months ended March 31, (In millions) 2019 2018 Unrealized investment gains (losses) on AFS securities Unrealized investment gains (losses) on AFS securities $ 1,982 $ (1,282 ) Change in DAC, DSI, VOBA and future policy benefits adjustment (511 ) 410 Less: Reclassification adjustment for gains (losses) realized in net income 1 (7 ) 19 Less: Income tax expense (benefit) 293 (159 ) Net unrealized investment gains (losses) on AFS securities 1,185 (732 ) Noncredit component of OTTI losses on AFS securities Noncredit component of OTTI losses on AFS securities (1 ) (1 ) Less: Reclassification adjustment for losses realized in net income 1 — (1 ) Net noncredit component of OTTI losses on AFS securities (1 ) — Unrealized gains (losses) on hedging instruments Unrealized gains (losses) on hedging instruments (8 ) (56 ) Less: Income tax benefit (2 ) (20 ) Net unrealized gains (losses) on hedging instruments (6 ) (36 ) Pension adjustments (1 ) 3 Foreign currency translation adjustments 1 (8 ) Change in AOCI from other comprehensive income (loss) 1,178 (773 ) Adoption of accounting standards — (42 ) Change in AOCI $ 1,178 $ (815 ) 1 Recognized in investment related gains (losses) on the condensed consolidated statements of income. |
Related Parties (Tables)
Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following summarizes the asset management fees and sub-advisory fees we have incurred related to AAM and other Apollo affiliates: Three months ended March 31, (In millions) 2019 2018 Asset management fees $ 75 $ 70 Sub-advisory fees 17 13 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) March 31, 2019 December 31, 2018 AFS securities Foreign governments $ 240 $ 153 Corporate 3,680 3,398 CLO 6,487 5,703 ABS 654 663 CMBS 1,011 880 Trading securities 88 87 Equity securities 2 2 Mortgage loans 3,856 3,507 Investment funds 309 157 Funds withheld at interest 4,935 4,126 Other investments 69 70 Total assets sub-advised by Apollo affiliates $ 21,331 $ 18,746 Percent of assets sub-advised by Apollo affiliates to total AAM-managed assets 19 % 18 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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) March 31, 2019 December 31, 2018 AFS securities $ 6,543 $ 5,439 Trading securities 277 68 Equity securities 2 2 Mortgage loans 1,967 1,830 Investment funds 56 53 Derivative assets 68 24 Short-term investments 56 77 Other investments 47 47 Restricted cash 497 492 Total restricted assets $ 9,513 $ 8,032 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, (In millions) 2019 2018 Retirement Services $ 3,306 $ 1,257 Corporate and Other 32 27 Non-operating adjustments Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets 940 (158 ) Investment gains (losses), net of offsets 713 (106 ) Other adjustments to revenues (30 ) (9 ) Total revenues $ 4,961 $ 1,011 |
Reconciliation of Segment Operating Income to Consolidation | The table below reconciles segment adjusted operating income to net income presented on the condensed consolidated statements of income: Three months ended March 31, (In millions) 2019 2018 Retirement Services $ 286 $ 239 Corporate and Other 1 2 Non-operating adjustments Investment gains (losses), net of offsets 458 (33 ) Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets (27 ) 86 Integration, restructuring and other non-operating expenses (1 ) (8 ) Stock-based compensation, excluding LTIP (3 ) (3 ) Income tax (expense) benefit – non-operating (6 ) (6 ) Net income $ 708 $ 277 |
Total Assets by Segment | The following represents total assets by segment: (In millions) March 31, 2019 December 31, 2018 Retirement Services $ 130,965 $ 123,498 Corporate and Other 1,892 2,007 Total assets $ 132,857 $ 125,505 |
Investments - Schedule of AFS S
Investments - Schedule of AFS Securities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | $ 884 | $ (585) |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Costs | 60,025 | |
Gross Unrealized Gains | 1,008 | |
Gross Unrealized Losses | (1,768) | |
Available-for-sale Securities | 59,265 | |
Amortized Cost | 63,440 | 60,025 |
Gross Unrealized Gains | 2,011 | |
Gross Unrealized Losses | (796) | |
Fair Value | 64,655 | 59,265 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. government and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 48 | 57 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 50 | 57 |
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 | 1,209 | 1,183 |
Gross Unrealized Gains | 161 | 117 |
Gross Unrealized Losses | (5) | (7) |
Fair Value | 1,365 | 1,293 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 262 | 162 |
Gross Unrealized Gains | 9 | 2 |
Gross Unrealized Losses | 0 | (3) |
Fair Value | 271 | 161 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 40,727 | 38,018 |
Gross Unrealized Gains | 1,218 | 394 |
Gross Unrealized Losses | (534) | (1,315) |
Fair Value | 41,411 | 37,097 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CLO | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,320 | 5,658 |
Gross Unrealized Gains | 6 | 2 |
Gross Unrealized Losses | (184) | (299) |
Fair Value | 6,142 | 5,361 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,023 | 4,915 |
Gross Unrealized Gains | 85 | 53 |
Gross Unrealized Losses | (33) | (48) |
Fair Value | 5,075 | 4,920 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,394 | 2,390 |
Gross Unrealized Gains | 50 | 27 |
Gross Unrealized Losses | (20) | (60) |
Fair Value | 2,424 | 2,357 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,457 | 7,642 |
Gross Unrealized Gains | 480 | 413 |
Gross Unrealized Losses | (20) | (36) |
Fair Value | 7,917 | 8,019 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Costs | 61,487 | |
Gross Unrealized Gains | 1,012 | |
Gross Unrealized Losses | (1,797) | |
Available-for-sale Securities | 60,702 | |
Amortized Cost | 65,136 | |
Gross Unrealized Gains | 2,022 | |
Gross Unrealized Losses | (819) | |
Fair Value | 66,339 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Costs | 1,462 | |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (29) | |
Available-for-sale Securities | 1,437 | |
Amortized Cost | 1,696 | 1,462 |
Gross Unrealized Gains | 11 | |
Gross Unrealized Losses | (23) | |
Fair Value | 1,684 | 1,437 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | CLO | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 654 | 587 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (16) | (25) |
Fair Value | 638 | 562 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,039 | 875 |
Gross Unrealized Gains | 11 | 4 |
Gross Unrealized Losses | (7) | (4) |
Fair Value | 1,043 | 875 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 3 | |
OTTI | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | (20) | (19) |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 20 | 19 |
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 | 0 | 1 |
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 | 0 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 7 | 7 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 12 | 11 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 20 | 19 |
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 |
OTTI | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | $ 0 |
Investments - Maturities of AFS
Investments - Maturities of AFS Securities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Amortized Cost | ||
Due in one year or less | $ 1,081 | |
Due after one year through five years | 8,855 | |
Due after five years through ten years | 11,209 | |
Due after ten years | 21,101 | |
CLO, ABS, CMBS and RMBS | 21,194 | |
Amortized Cost | 63,440 | $ 60,025 |
Fair Value | ||
Due in one year or less | 1,082 | |
Due after one year through five years | 8,988 | |
Due after five years through ten years | 11,339 | |
Due after ten years | 21,688 | |
CLO, ABS, CMBS and RMBS | 21,558 | |
Total AFS fixed maturity securities | 64,655 | 59,265 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Amortized Cost | ||
Amortized Cost | 65,136 | |
Fair Value | ||
Total AFS fixed maturity securities | 66,339 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Amortized Cost | ||
Due after five years through ten years | 3 | |
CLO, ABS, CMBS and RMBS | 1,693 | |
Amortized Cost | 1,696 | 1,462 |
Fair Value | ||
Due after five years through ten years | 3 | |
CLO, ABS, CMBS and RMBS | 1,681 | |
Total AFS fixed maturity securities | $ 1,684 | $ 1,437 |
Investments - Unrealized Losses
Investments - Unrealized Losses on AFS Securities (Details) $ in Millions | Mar. 31, 2019USD ($)security | Dec. 31, 2018USD ($) |
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 | 2,638 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 1,377 | |
Fair Value | ||
Less than 12 months | $ 11,751 | $ 29,220 |
12 months or greater | (442) | (444) |
Total | 21,367 | 34,670 |
Gross Unrealized Losses | ||
Less than 12 months | (354) | (1,324) |
Total | (796) | (1,768) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 9,616 | 5,450 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. government and agencies | ||
Fair Value | ||
Less than 12 months | 2 | 32 |
12 months or greater | 0 | 0 |
Total | 9 | 34 |
Gross Unrealized Losses | ||
Less than 12 months | 0 | 0 |
Total | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 7 | 2 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | U.S. state, municipal and political subdivisions | ||
Fair Value | ||
Less than 12 months | 19 | 139 |
12 months or greater | (5) | (5) |
Total | 94 | 221 |
Gross Unrealized Losses | ||
Less than 12 months | 0 | (2) |
Total | (5) | (7) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 75 | 82 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Foreign governments | ||
Fair Value | ||
Less than 12 months | 8 | 97 |
12 months or greater | 0 | (1) |
Total | 27 | 112 |
Gross Unrealized Losses | ||
Less than 12 months | 0 | (2) |
Total | 0 | (3) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 19 | 15 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Corporate | ||
Fair Value | ||
Less than 12 months | 4,840 | 20,213 |
12 months or greater | (393) | (373) |
Total | 13,031 | 24,331 |
Gross Unrealized Losses | ||
Less than 12 months | (141) | (942) |
Total | (534) | (1,315) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 8,191 | 4,118 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CLO | ||
Fair Value | ||
Less than 12 months | 4,782 | 5,054 |
12 months or greater | (5) | (2) |
Total | 4,943 | 5,144 |
Gross Unrealized Losses | ||
Less than 12 months | (179) | (297) |
Total | (184) | (299) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 161 | 90 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ABS | ||
Fair Value | ||
Less than 12 months | 719 | 1,336 |
12 months or greater | (23) | (25) |
Total | 1,281 | 1,842 |
Gross Unrealized Losses | ||
Less than 12 months | (10) | (23) |
Total | (33) | (48) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 562 | 506 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | CMBS | ||
Fair Value | ||
Less than 12 months | 439 | 932 |
12 months or greater | (12) | (33) |
Total | 902 | 1,429 |
Gross Unrealized Losses | ||
Less than 12 months | (8) | (27) |
Total | (20) | (60) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 463 | 497 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | RMBS | ||
Fair Value | ||
Less than 12 months | 942 | 1,417 |
12 months or greater | (4) | (5) |
Total | 1,080 | 1,557 |
Gross Unrealized Losses | ||
Less than 12 months | (16) | (31) |
Total | (20) | (36) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 138 | 140 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Related Party | Corporate | ||
Fair Value | ||
Less than 12 months | 0 | |
12 months or greater | 0 | |
Total | 3 | |
Gross Unrealized Losses | ||
Less than 12 months | 0 | |
Total | 0 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 3 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value | ||
Less than 12 months | 12,628 | 30,060 |
12 months or greater | (443) | (446) |
Total | 22,319 | 35,626 |
Gross Unrealized Losses | ||
Less than 12 months | (376) | (1,351) |
Total | (819) | (1,797) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 9,691 | 5,566 |
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 | 38 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 6 | |
Fair Value | ||
Less than 12 months | $ 877 | 840 |
12 months or greater | (1) | (2) |
Total | 952 | 956 |
Gross Unrealized Losses | ||
Less than 12 months | (22) | (27) |
Total | (23) | (29) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 75 | 116 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | CLO | ||
Fair Value | ||
Less than 12 months | 553 | 534 |
12 months or greater | 0 | 0 |
Total | 553 | 534 |
Gross Unrealized Losses | ||
Less than 12 months | (16) | (25) |
Total | (16) | (25) |
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 | 324 | 306 |
12 months or greater | (1) | (2) |
Total | 396 | 422 |
Gross Unrealized Losses | ||
Less than 12 months | (6) | (2) |
Total | (7) | (4) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 72 | $ 116 |
Investments - OTTI AFS Securiti
Investments - OTTI AFS Securities (Details) - Consolidated Entity Excluding Variable Interest Entities (VIE) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Net other-than-temporary impairment losses | $ 1 | |
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 | 10 | $ 14 |
Initial impairments – credit loss OTTI recognized on securities not previously impaired | 0 | 1 |
Additional impairments – credit loss OTTI recognized on securities previously impaired | 1 | 0 |
Reduction in impairments from securities sold, matured or repaid | 0 | (8) |
Ending balance | $ 11 | $ 7 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - Consolidated Entity Excluding Variable Interest Entities (VIE) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Investment Income [Line Items] | ||
Investment revenue | $ 1,161 | $ 939 |
Investment expenses | (95) | (84) |
Net investment income | 1,066 | 855 |
AFS securities | ||
Net Investment Income [Line Items] | ||
Investment revenue | 753 | 668 |
Trading securities | ||
Net Investment Income [Line Items] | ||
Investment revenue | 42 | 44 |
Equity securities | ||
Net Investment Income [Line Items] | ||
Investment revenue | 3 | 2 |
Mortgage loans | ||
Net Investment Income [Line Items] | ||
Investment revenue | 151 | 91 |
Investment funds | ||
Net Investment Income [Line Items] | ||
Investment revenue | 10 | 65 |
Funds withheld at interest | ||
Net Investment Income [Line Items] | ||
Investment revenue | 163 | 46 |
Other | ||
Net Investment Income [Line Items] | ||
Investment revenue | $ 39 | $ 23 |
Investments - Investment Relate
Investments - Investment Related Gains (Losses) (Details) - Consolidated Entity Excluding Variable Interest Entities (VIE) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Gain (Loss) on Securities [Line Items] | ||
Proceeds from Sale of Debt Securities, Available-for-sale | $ 1,253 | $ 1,547 |
Debt Securities, Available-for-sale, Realized Gain | 17 | 21 |
AFS fixed maturity securities | ||
Gross realized losses on investment activity | (13) | (6) |
Net realized investment gains on AFS securities | 4 | 15 |
Debt Securities, Trading, Realized Gain (Loss) | 49 | (89) |
Net recognized investment gains on equity securities | 18 | 1 |
Derivative gains (losses) | 1,692 | (184) |
Other gains | 9 | 21 |
Investment related gains (losses) | $ 1,772 | $ (236) |
Investments - Unrealized gains
Investments - Unrealized gains (losses) recognized in income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Gain (Loss) on Securities [Line Items] | ||
Debt Securities, Trading, Unrealized Gain (Loss) | $ 71 | $ (69) |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 18 | 0 |
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Gain (Loss) on Securities [Line Items] | ||
Debt Securities, Trading, Unrealized Gain (Loss) | (3) | (2) |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 3 | 0 |
Variable Interest Entities | Related Party | ||
Gain (Loss) on Securities [Line Items] | ||
Debt Securities, Trading, Unrealized Gain (Loss) | 1 | 0 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 0 | $ 25 |
Investments - Purchase Credit I
Investments - Purchase Credit Impaired (PCI) Investments (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fixed maturity securities | ||
Certain Loans Acquired in Transfer Accounted for as Available-for-sale Debt Securities, Contractually Required Payments Receivable | $ 7,931 | $ 8,179 |
Contractually required payments | 6,619 | 6,773 |
Less: Cash flows expected to be collected | (6,968) | (7,195) |
Cash flows expected to be collected2 | 6,968 | 7,195 |
Less: Amortized cost | (5,392) | (5,518) |
Accretable difference | 1,576 | 1,677 |
Fair value | 5,774 | 5,828 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Fair Value | 2,138 | 1,933 |
Mortgage loans | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Contractually Required Payments Receivable | 2,870 | 2,675 |
Contractually required payments | 2,395 | 2,210 |
Less: Cash flows expected to be collected | 2,829 | 2,628 |
Cash flows expected to be collected | 2,829 | 2,628 |
Accretable difference | 712 | 697 |
Fair value | (2,117) | (1,931) |
Mortgage loans | ||
Fixed maturity securities | ||
Certain Loans Acquired in Transfer, Nonaccretable Difference | 41 | 47 |
Fixed maturity securities | ||
Fixed maturity securities | ||
Certain Loans Acquired in Transfer, Nonaccretable Difference | $ 963 | $ 984 |
Investments - PCI Securities Ac
Investments - PCI Securities Acquired During the Period (Details) $ in Millions | Mar. 31, 2019USD ($) |
Fixed maturity securities | |
Contractually required principal and interest | $ 66 |
Expected cash flows | 51 |
Estimated fair value | 44 |
Mortgage loans | |
Contractually required principal and interest | 382 |
Expected cash flows | 382 |
Estimated fair value | $ 292 |
Investments - PCI Securities _2
Investments - PCI Securities Accretable Yield (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Fixed Maturity Securities Accretable Yield Activity | |
Beginning balance | $ 1,677 |
Purchases of PCI investments, net of sales | 8 |
Accretion | (91) |
Net reclassification to non-accretable difference | (18) |
Ending balance | 1,576 |
Mortgage Loans Accretable Yield Activity | |
Beginning balance | 697 |
Purchases of PCI investments, net of sales | 40 |
Accretion | (32) |
Net reclassification from (to) non-accretable difference | 7 |
Ending balance | $ 712 |
Investments - Mortgage Loans, N
Investments - Mortgage Loans, Net (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 11,333 | $ 10,631 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 7,779 | 7,297 |
Commercial mortgage loans | Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 7,693 | 7,217 |
Commercial mortgage loans | Commercial mortgage loans under development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 86 | 80 |
Residential mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 3,554 | $ 3,334 |
Investments - Mortgage Loans,_2
Investments - Mortgage Loans, Net by Property Type and Geographic Region (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 11,333 | $ 10,631 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 7,779 | $ 7,297 |
Commercial mortgage loans | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 100.00% | 100.00% |
Commercial mortgage loans | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 100.00% | 100.00% |
Commercial mortgage loans | Total U.S. Region | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 7,779 | $ 7,297 |
Commercial mortgage loans | Total U.S. Region | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 100.00% | 100.00% |
Commercial mortgage loans | East North Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 846 | $ 855 |
Commercial mortgage loans | East North Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 10.90% | 11.70% |
Commercial mortgage loans | East South Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 200 | $ 295 |
Commercial mortgage loans | East South Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 2.60% | 4.00% |
Commercial mortgage loans | Middle Atlantic | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,434 | $ 1,131 |
Commercial mortgage loans | Middle Atlantic | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 18.40% | 15.50% |
Commercial mortgage loans | Mountain | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 603 | $ 616 |
Commercial mortgage loans | Mountain | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 7.80% | 8.40% |
Commercial mortgage loans | New England | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 373 | $ 374 |
Commercial mortgage loans | New England | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 4.80% | 5.10% |
Commercial mortgage loans | Pacific | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,791 | $ 1,540 |
Commercial mortgage loans | Pacific | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 23.00% | 21.10% |
Commercial mortgage loans | South Atlantic | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,518 | $ 1,468 |
Commercial mortgage loans | South Atlantic | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 19.50% | 20.20% |
Commercial mortgage loans | West North Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 158 | $ 173 |
Commercial mortgage loans | West North Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 2.00% | 2.40% |
Commercial mortgage loans | West South Central | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 856 | $ 845 |
Commercial mortgage loans | West South Central | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 11.00% | 11.60% |
Commercial mortgage loans | Hotels | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,040 | $ 1,040 |
Commercial mortgage loans | Hotels | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 13.40% | 14.30% |
Commercial mortgage loans | Retail | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,797 | $ 1,660 |
Commercial mortgage loans | Retail | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 23.10% | 22.70% |
Commercial mortgage loans | Office building | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 2,527 | $ 2,221 |
Commercial mortgage loans | Office building | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 32.40% | 30.50% |
Commercial mortgage loans | Industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 1,232 | $ 1,196 |
Commercial mortgage loans | Industrial | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 15.80% | 16.40% |
Commercial mortgage loans | Apartment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 899 | $ 791 |
Commercial mortgage loans | Apartment | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 11.60% | 10.80% |
Commercial mortgage loans | Other commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 284 | $ 389 |
Commercial mortgage loans | Other commercial | Property Type Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 3.70% | 5.30% |
Residential mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 3,554 | $ 3,334 |
Residential mortgage loans | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 100.00% | 100.00% |
Residential mortgage loans | California | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 33.70% | 30.30% |
Residential mortgage loans | Florida | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 15.70% | 16.30% |
Residential mortgage loans | New York | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 7.20% | 7.70% |
Residential mortgage loans | Other U.S. States | Geographic Concentration Risk | Mortgage Loans, Net | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 37.00% | 42.40% |
Investments - Mortgage Loans, R
Investments - Mortgage Loans, Residential by State (Details) - Geographic Concentration Risk - Residential mortgage loans - Mortgage Loans, Net | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 100.00% | 100.00% |
California | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 33.70% | 30.30% |
Florida | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 15.70% | 16.30% |
TEXAS | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 6.40% | 3.30% |
New York | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 7.20% | 7.70% |
Other U.S. States | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 37.00% | 42.40% |
Investments - Mortgage Loans,_3
Investments - Mortgage Loans, Net Past Due (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Investments Schedule [Abstract] | ||
Mortgage loan valuation allowance | $ 2 | |
Non-performing mortgage loans | 56 | $ 48 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Mortgage loans, net of allowances | 11,333 | 10,631 |
Commercial mortgage loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Mortgage loans, net of allowances | $ 7,779 | $ 7,297 |
Investments - Mortgage Loans, L
Investments - Mortgage Loans, Loan to Value Ratio (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | $ 11,333 | $ 10,631 |
Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 7,779 | 7,297 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 7,693 | 7,217 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Less than 50% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 2,060 | 1,883 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 50% to 60% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 1,986 | 1,988 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 61% to 70% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 2,856 | 2,394 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 71% to 80% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | 702 | 898 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 81% to 100% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Mortgage loans, net of allowances | $ 89 | $ 54 |
Investments - Mortgage Loans, D
Investments - Mortgage Loans, Debt Service Coverage Ratio (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 11,333 | $ 10,631 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 7,779 | 7,297 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | 7,693 | 7,217 |
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 | 7,057 | 6,576 |
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 | 360 | 474 |
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 | $ 276 | $ 167 |
Investments - Investment Funds
Investments - Investment Funds (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 3,592 | $ 3,559 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 683 | $ 703 |
Carrying Amount, Assets, Percent of Total | 100.00% | 100.00% |
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 2,290 | $ 2,232 |
Carrying Amount, Assets, Percent of Total | 100.00% | 100.00% |
Variable Interest Entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 619 | $ 624 |
Carrying Amount, Assets, Percent of Total | 100.00% | 100.00% |
Variable Interest Entities | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 580 | $ 583 |
Private equity | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 239 | $ 253 |
Carrying Amount, Assets, Percent of Total | 35.00% | 36.00% |
Private equity | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 52 | $ 18 |
Carrying Amount, Assets, Percent of Total | 2.30% | 0.80% |
Real assets | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 64 | $ 56 |
Carrying Amount, Assets, Percent of Total | 9.40% | 7.90% |
Real assets | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 144 | $ 145 |
Carrying Amount, Assets, Percent of Total | 6.30% | 6.50% |
Real assets | Variable Interest Entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 39 | $ 41 |
Carrying Amount, Assets, Percent of Total | 6.30% | 6.60% |
Real estate | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 224 | $ 215 |
Carrying Amount, Assets, Percent of Total | 32.80% | 30.60% |
Real estate | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 498 | $ 506 |
Carrying Amount, Assets, Percent of Total | 21.80% | 22.70% |
Real estate | Variable Interest Entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 29 | $ 30 |
Carrying Amount, Assets, Percent of Total | 4.70% | 4.80% |
Natural resources | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 1 | $ 4 |
Carrying Amount, Assets, Percent of Total | 0.10% | 0.60% |
Natural resources | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 123 | $ 104 |
Carrying Amount, Assets, Percent of Total | 5.40% | 4.70% |
Other fund | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 0 | $ 3 |
Carrying Amount, Assets, Percent of Total | 0.00% | 0.40% |
Other fund | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 171 | $ 162 |
Carrying Amount, Assets, Percent of Total | 7.50% | 7.30% |
Differentiated investments | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 1,050 | $ 1,055 |
Carrying Amount, Assets, Percent of Total | 45.80% | 47.20% |
Credit funds | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 155 | $ 172 |
Carrying Amount, Assets, Percent of Total | 22.70% | 24.50% |
Credit funds | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 340 | $ 341 |
Carrying Amount, Assets, Percent of Total | 14.80% | 15.30% |
Credit funds | Variable Interest Entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 550 | $ 552 |
Carrying Amount, Assets, Percent of Total | 88.80% | 88.40% |
Public equities | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 83 | $ 63 |
Carrying Amount, Assets, Percent of Total | 3.60% | 2.80% |
AmeriHome | Private equity | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 436 | $ 463 |
Carrying Amount, Assets, Percent of Total | 19.00% | 20.70% |
Catalina Holdings (Bermuda) Ltd [Member] | Private equity | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 232 | $ 233 |
Carrying Amount, Assets, Percent of Total | 10.10% | 10.40% |
Athora Holding Ltd. | Private equity | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 124 | $ 105 |
Carrying Amount, Assets, Percent of Total | 5.40% | 4.70% |
Venerable | Private equity | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 87 | $ 92 |
Carrying Amount, Assets, Percent of Total | 3.80% | 4.10% |
MidCap | Private equity | Variable Interest Entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 1 | $ 1 |
Carrying Amount, Assets, Percent of Total | 0.20% | 0.20% |
Investments - Investment Fund_2
Investments - Investment Funds Ownership (Details) - Investment funds - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||
Fair Value, Option, Fair Value Carrying Amount, Assets | $ 876 | $ 881 |
Equity Method Investments | 2,716 | 2,678 |
Ownership Percentage, One Hundred Percent [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 15 | 17 |
Ownership Percentage, Greater than or Equal to Fifty Percentage and Less than or Equal to Ninety Nine Percent [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 1,017 | 1,044 |
Ownership Percentage, Greater than Three Percent and Less than or Equal to Forty Nine Percent [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Fair Value, Option, Fair Value Carrying Amount, Assets | 699 | 687 |
Equity Method Investments | 1,684 | 1,617 |
Ownership Percentage, Less than Three Percent [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Fair Value, Option, Fair Value Carrying Amount, Assets | $ 177 | $ 194 |
Investments - Summary of Maximu
Investments - Summary of Maximum Loss Exposure (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | $ 27,920 | $ 26,553 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 30,353 | 29,434 |
Investment funds | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 619 | 624 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 722 | 727 |
Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | Investment funds | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 683 | 703 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 1,271 | 1,329 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Investment funds | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 2,290 | 2,232 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 4,301 | 4,331 |
Debt Securities [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) and Related Party | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 22,107 | 21,188 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 21,748 | 21,139 |
Debt Securities [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 1,920 | 1,686 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 2,010 | 1,788 |
Equity securities | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 301 | 120 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 301 | $ 120 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Notional and Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Total derivative assets | $ 2,580 | $ 990 |
Total derivative liabilities | 9,203 | 8,053 |
Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Derivative assets, fair value | 70 | 83 |
Derivative liabilities, fair value | 49 | 56 |
Derivatives designated as hedges | Foreign currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 2,275 | 2,041 |
Derivative assets, fair value | 68 | 83 |
Derivative liabilities, fair value | 49 | 55 |
Derivatives designated as hedges | Foreign currency forwards | ||
Derivative [Line Items] | ||
Notional Amount | 154 | 85 |
Derivative assets, fair value | 2 | 0 |
Derivative liabilities, fair value | 0 | 1 |
Derivatives not designated as hedges | ||
Derivative [Line Items] | ||
Total derivative assets | 2,510 | 907 |
Total derivative liabilities | 9,154 | 7,997 |
Derivatives not designated as hedges | Foreign currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 38 | 38 |
Derivative assets, fair value | 3 | 3 |
Derivative liabilities, fair value | 1 | 2 |
Derivatives not designated as hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 310 | 326 |
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 1 | 1 |
Derivatives not designated as hedges | Equity options | ||
Derivative [Line Items] | ||
Notional Amount | 49,566 | 49,821 |
Derivative assets, fair value | 1,824 | 942 |
Derivative liabilities, fair value | 22 | 11 |
Derivatives not designated as hedges | Futures | ||
Derivative [Line Items] | ||
Notional Amount | 6 | 4 |
Derivative assets, fair value | 8 | 9 |
Derivative liabilities, fair value | 1 | 3 |
Derivatives not designated as hedges | Total return swaps | ||
Derivative [Line Items] | ||
Notional Amount | 60 | 62 |
Derivative assets, fair value | 4 | 0 |
Derivative liabilities, fair value | 0 | 3 |
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 | 4 | 4 |
Derivatives not designated as hedges | Foreign currency forwards | ||
Derivative [Line Items] | ||
Notional Amount | 795 | 646 |
Derivative assets, fair value | 11 | 6 |
Derivative liabilities, fair value | 7 | 5 |
Derivatives not designated as hedges | Embedded derivatives | Funds withheld | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 0 |
Embedded derivative assets, fair value | (53) | |
Embedded derivative liabilities, fair value | (1) | |
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 | 9,106 | 7,969 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Derivative [Line Items] | ||
Funds withheld liability | 724 | 721 |
Derivative liabilities, fair value | 85 | 85 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Derivatives not designated as hedges | Embedded derivatives | Funds withheld | ||
Derivative [Line Items] | ||
Funds withheld at interest | 660 | |
Funds withheld liability | 12 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 3 | Recurring | ||
Derivative [Line Items] | ||
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 0 | 4 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 3 | Recurring | Embedded derivatives | ||
Derivative [Line Items] | ||
Funds withheld at interest | 446 | 57 |
Funds withheld liability | 4 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 2 | Recurring | ||
Derivative [Line Items] | ||
Derivative assets, fair value | 1,912 | 1,034 |
Derivative liabilities, fair value | 12 | 78 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 2 | Recurring | Embedded derivatives | ||
Derivative [Line Items] | ||
Funds withheld at interest | 0 | 0 |
Funds withheld liability | $ 80 | $ (1) |
Derivative Instruments - Gains
Derivative Instruments - Gains (Losses) on Derivatives Not Designated as Hedging (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Total gains (losses) for derivatives not designated as hedges | $ 675,000,000 | $ 63,000,000 |
Investment related gains (losses) | ||
Derivative [Line Items] | ||
Total gains (losses) for derivatives not designated as hedges | 1,692,000,000 | (184,000,000) |
Investment related gains (losses) | Equity options | ||
Derivative [Line Items] | ||
Total gains (losses) for derivatives not designated as hedges | 849,000,000 | (142,000,000) |
Investment related gains (losses) | Futures | ||
Derivative [Line Items] | ||
Total gains (losses) for derivatives not designated as hedges | (11,000,000) | (5,000,000) |
Investment related gains (losses) | Swap [Member] | ||
Derivative [Line Items] | ||
Total gains (losses) for derivatives not designated as hedges | 18,000,000 | 2,000,000 |
Investment related gains (losses) | Foreign currency forwards | ||
Derivative [Line Items] | ||
Total gains (losses) for derivatives not designated as hedges | 6,000,000 | (7,000,000) |
Investment related gains (losses) | Embedded derivatives | ||
Derivative [Line Items] | ||
Total gains (losses) for derivatives not designated as hedges | 830,000,000 | (32,000,000) |
Interest sensitive contract benefits | Embedded derivatives | ||
Derivative [Line Items] | ||
Total gains (losses) for derivatives not designated as hedges | (1,017,000,000) | 247,000,000 |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Offsetting Derivative Assets | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 1,920 | $ 1,043 |
Gross amounts not offset on the consolidated balance sheets, financial instruments | (65) | (52) |
Gross amounts not offset on the consolidated balance sheets, collateral received/pledged | (1,781) | (969) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 74 | 22 |
Off-balance sheet securities collateral | (3) | (4) |
Net amount after securities collateral | 71 | 18 |
Offsetting Derivative Liabilities | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (85) | (85) |
Gross amounts not offset on the consolidated balance sheets, financial instruments | 65 | 52 |
Gross amounts not offset on the consolidated balance sheets, collateral received/pledged | 14 | 24 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | (6) | (9) |
Off-balance sheet securities collateral | 0 | 0 |
Net amount after securities collateral | $ (6) | $ (9) |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - Derivatives designated as hedges - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Cash flow hedges | Foreign currency swaps | |||
Derivative [Line Items] | |||
Foreign currency swap gains (losses) | $ (8,000,000) | $ (56,000,000) | |
Foreign currency swap gain (loss) reclassified to income | 0 | $ 0 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 0 | ||
Fair Value Hedging [Member] | Foreign currency forwards | |||
Derivative [Line Items] | |||
Derivative, Amount of Hedged Item | 154,000,000 | $ 88,000,000 | |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | 2,000,000 | $ 1,000,000 | |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 3,000,000 | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | $ (3,000,000) |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Mortgage loans | $ 11,333 | $ 10,631 |
Restricted cash | 497 | 492 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Assets | ||
Available-for-sale securities | 66,339 | |
Reinsurance recoverable | 5,647 | 5,534 |
Liabilities | ||
Interest sensitive contract liabilities | 98,452 | 96,610 |
Future policy benefits | 19,016 | 16,704 |
Derivative liabilities | 85 | 85 |
Funds withheld liability | 724 | 721 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Assets | ||
Available-for-sale securities | 1,684 | 1,437 |
Trading securities, at fair value | 239 | 249 |
Equity securities | 301 | 120 |
Mortgage loans | 291 | 291 |
Funds withheld at interest | 13,683 | 13,577 |
Other investments | 387 | 386 |
Reinsurance recoverable | 334 | 344 |
Liabilities | ||
Interest sensitive contract liabilities | 16,533 | 16,850 |
Future policy benefits | 1,347 | 1,259 |
Funds withheld liability | 327 | 337 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 638 | 562 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 1,043 | 875 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ||
Assets | ||
Investment funds | 801 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | ||
Assets | ||
Available-for-sale securities | 49 | 54 |
Trading securities, at fair value | 3 | 3 |
Equity securities | 47 | 40 |
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Derivative assets | 8 | 9 |
Short-term investments | 50 | 66 |
Other investments | 0 | 0 |
Cash and cash equivalents | 3,021 | 2,911 |
Restricted cash | 497 | 492 |
Reinsurance recoverable | 0 | 0 |
Total assets measured at fair value | 3,677 | 3,614 |
Liabilities | ||
Derivative liabilities | 0 | 3 |
Total liabilities measured at fair value | 1 | 3 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Related Party | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Equity 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 | 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 | 1 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | U.S. government and agencies | ||
Assets | ||
Available-for-sale securities | 49 | 54 |
Trading securities, at fair value | 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, at fair value | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Foreign governments | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities, at fair value | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Corporate | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | Corporate | Related Party | ||
Assets | ||
Available-for-sale securities | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | CLO | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | ABS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | CMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 1 | RMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | ||
Assets | ||
Available-for-sale securities | 61,616 | 56,348 |
Trading securities, at fair value | 2,143 | 1,811 |
Equity securities | 202 | 173 |
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Derivative assets | 1,912 | 1,034 |
Short-term investments | 105 | 125 |
Other investments | 52 | 52 |
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Reinsurance recoverable | 0 | 0 |
Total assets measured at fair value | 67,263 | 60,674 |
Liabilities | ||
Derivative liabilities | 12 | 78 |
Total liabilities measured at fair value | 92 | 77 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Related Party | ||
Assets | ||
Available-for-sale securities | 1,187 | 1,109 |
Trading securities, at fair value | 46 | 22 |
Equity securities | 0 | 0 |
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 | 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 | 80 | (1) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | U.S. government and agencies | ||
Assets | ||
Available-for-sale securities | 1 | 3 |
Trading securities, at fair value | 2 | 2 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | U.S. state, municipal and political subdivisions | ||
Assets | ||
Available-for-sale securities | 1,365 | 1,293 |
Trading securities, at fair value | 130 | 126 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Foreign governments | ||
Assets | ||
Available-for-sale securities | 271 | 161 |
Trading securities, at fair value | 17 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Corporate | ||
Assets | ||
Available-for-sale securities | 40,376 | 36,199 |
Trading securities, at fair value | 1,545 | 1,287 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | Corporate | Related Party | ||
Assets | ||
Available-for-sale securities | 3 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | CLO | ||
Assets | ||
Available-for-sale securities | 6,032 | 5,254 |
Trading securities, at fair value | 12 | 8 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 638 | 562 |
Trading securities, at fair value | 46 | 22 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | ABS | ||
Assets | ||
Available-for-sale securities | 3,461 | 3,305 |
Trading securities, at fair value | 94 | 87 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 546 | 547 |
Trading securities, at fair value | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | CMBS | ||
Assets | ||
Available-for-sale securities | 2,250 | 2,170 |
Trading securities, at fair value | 50 | 49 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 2 | RMBS | ||
Assets | ||
Available-for-sale securities | 7,860 | 7,963 |
Trading securities, at fair value | 293 | 252 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ||
Assets | ||
Available-for-sale securities | 2,990 | 2,863 |
Trading securities, at fair value | 110 | 135 |
Equity securities | 3 | 3 |
Mortgage loans | 32 | 32 |
Investment funds | 25 | 29 |
Derivative assets | 0 | 0 |
Short-term investments | 0 | 0 |
Other investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Reinsurance recoverable | 1,737 | 1,676 |
Total assets measured at fair value | 6,726 | 5,528 |
Liabilities | ||
Derivative liabilities | 0 | 4 |
Total liabilities measured at fair value | 12,315 | 11,078 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Related Party | ||
Assets | ||
Available-for-sale securities | 497 | 328 |
Trading securities, at fair value | 193 | 227 |
Equity securities | 301 | 120 |
Investment funds | 124 | 105 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 979 | 932 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 1,483 | 1,443 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 743 | 730 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 446 | 57 |
Liabilities | ||
Interest sensitive contract liabilities | 9,106 | 7,969 |
Funds withheld liability | 4 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | 214 | (110) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | U.S. government and agencies | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities, at fair value | 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, at fair value | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Foreign governments | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities, at fair value | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Corporate | ||
Assets | ||
Available-for-sale securities | 1,035 | 898 |
Trading securities, at fair value | 10 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | Corporate | Related Party | ||
Assets | ||
Available-for-sale securities | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | CLO | ||
Assets | ||
Available-for-sale securities | 110 | 107 |
Trading securities, at fair value | 8 | 1 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities, at fair value | 55 | 78 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ABS | ||
Assets | ||
Available-for-sale securities | 1,614 | 1,615 |
Trading securities, at fair value | 6 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 497 | 328 |
Trading securities, at fair value | 138 | 149 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | CMBS | ||
Assets | ||
Available-for-sale securities | 174 | 187 |
Trading securities, at fair value | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Level 3 | RMBS | ||
Assets | ||
Available-for-sale securities | 57 | 56 |
Trading securities, at fair value | 86 | 134 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | NAV | ||
Assets | ||
Investment funds | 134 | 153 |
Total assets measured at fair value | 792 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | NAV | Related Party | ||
Assets | ||
Investment funds | 108 | 96 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Assets | ||
Mortgage loans | 11,190 | 10,424 |
Investment funds | 524 | 521 |
Funds withheld at interest | 14,795 | 14,966 |
Other investments | 69 | 70 |
Total assets measured at fair value | 43,322 | 42,895 |
Liabilities | ||
Interest sensitive contract liabilities | 53,504 | 51,655 |
Funds withheld liability | 712 | 722 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Assets | ||
Mortgage loans | 286 | 290 |
Investment funds | 2,058 | 2,031 |
Funds withheld at interest | 13,469 | 13,687 |
Other investments | 389 | 361 |
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 | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | 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 | 0 |
Total assets measured at fair value | 487 | 488 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 712 | 722 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 2 | Related Party | ||
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | 0 |
Other investments | 0 | 0 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 3 | ||
Assets | ||
Mortgage loans | 11,190 | 10,424 |
Investment funds | 0 | 0 |
Funds withheld at interest | 14,795 | 14,966 |
Other investments | 69 | 70 |
Total assets measured at fair value | 40,198 | 39,798 |
Liabilities | ||
Interest sensitive contract liabilities | 53,504 | 51,655 |
Funds withheld liability | 0 | 0 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 3 | Related Party | ||
Assets | ||
Mortgage loans | 286 | 290 |
Investment funds | 0 | 0 |
Funds withheld at interest | 13,469 | 13,687 |
Other investments | 389 | 361 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | NAV | ||
Assets | ||
Investment funds | 524 | 521 |
Total assets measured at fair value | 2,637 | 2,609 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | NAV | Related Party | ||
Assets | ||
Investment funds | 2,058 | 2,031 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ||
Assets | ||
Available-for-sale securities | 64,655 | 59,265 |
Trading securities, at fair value | 2,256 | 1,949 |
Equity securities | 252 | 216 |
Mortgage loans | 32 | 32 |
Investment funds | 159 | 182 |
Derivative assets | 1,920 | 1,043 |
Short-term investments | 155 | 191 |
Other investments | 52 | 52 |
Cash and cash equivalents | 3,021 | 2,911 |
Restricted cash | 497 | 492 |
Reinsurance recoverable | 1,737 | 1,676 |
Total assets measured at fair value | 78,458 | 70,617 |
Liabilities | ||
Interest sensitive contract liabilities | 10,085 | 8,901 |
Future policy benefits | 2,226 | 2,173 |
Derivative liabilities | 85 | 85 |
Funds withheld liability | 12 | (1) |
Total liabilities measured at fair value | 12,408 | 11,158 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Related Party | ||
Assets | ||
Available-for-sale securities | 1,684 | 1,437 |
Trading securities, at fair value | 239 | 249 |
Equity securities | 301 | 120 |
Investment funds | 232 | 201 |
Funds withheld at interest | 214 | (110) |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 979 | 932 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 1,483 | 1,443 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 743 | 730 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 446 | 57 |
Liabilities | ||
Interest sensitive contract liabilities | 9,106 | 7,969 |
Funds withheld liability | 12 | (1) |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | 214 | (110) |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | U.S. government and agencies | ||
Assets | ||
Available-for-sale securities | 50 | 57 |
Trading securities, at fair value | 5 | 5 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | U.S. state, municipal and political subdivisions | ||
Assets | ||
Available-for-sale securities | 1,365 | 1,293 |
Trading securities, at fair value | 130 | 126 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Foreign governments | ||
Assets | ||
Available-for-sale securities | 271 | 161 |
Trading securities, at fair value | 17 | |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Corporate | ||
Assets | ||
Available-for-sale securities | 41,411 | 37,097 |
Trading securities, at fair value | 1,555 | 1,287 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | Corporate | Related Party | ||
Assets | ||
Available-for-sale securities | 3 | |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | CLO | ||
Assets | ||
Available-for-sale securities | 6,142 | 5,361 |
Trading securities, at fair value | 20 | 9 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 638 | 562 |
Trading securities, at fair value | 101 | 100 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ABS | ||
Assets | ||
Available-for-sale securities | 5,075 | 4,920 |
Trading securities, at fair value | 100 | 87 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 1,043 | 875 |
Trading securities, at fair value | 138 | 149 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | CMBS | ||
Assets | ||
Available-for-sale securities | 2,424 | 2,357 |
Trading securities, at fair value | 50 | 49 |
Fair Value | Consolidated Entity Excluding Variable Interest Entities (VIE) | Recurring | RMBS | ||
Assets | ||
Available-for-sale securities | 7,917 | 8,019 |
Trading securities, at fair value | 379 | 386 |
Derivatives not designated as hedges | Funds withheld at interest | Consolidated Entity Excluding Variable Interest Entities (VIE) | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 660 | |
Liabilities | ||
Funds withheld liability | 12 | |
Variable Interest Entities | Related Party | ||
Assets | ||
Trading securities, at fair value | 34 | 35 |
Equity securities | 6 | 50 |
Variable Interest Entities | Recurring | Level 1 | ||
Assets | ||
Trading securities, at fair value | 0 | |
Equity securities | 37 | |
Investment funds | 0 | 0 |
Cash and cash equivalents | 2 | 2 |
Variable Interest Entities | Recurring | Level 1 | Related Party | ||
Assets | ||
Trading securities, at fair value | 0 | |
Equity securities | 0 | |
Variable Interest Entities | Recurring | Level 2 | ||
Assets | ||
Trading securities, at fair value | 0 | |
Equity securities | 0 | |
Investment funds | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Variable Interest Entities | Recurring | Level 2 | Related Party | ||
Assets | ||
Trading securities, at fair value | 0 | |
Equity securities | 0 | |
Variable Interest Entities | Recurring | Level 3 | ||
Assets | ||
Trading securities, at fair value | 34 | 35 |
Equity securities | 13 | |
Investment funds | 14 | 15 |
Cash and cash equivalents | 0 | 0 |
Variable Interest Entities | Recurring | Level 3 | Related Party | ||
Assets | ||
Equity securities | 6 | |
Variable Interest Entities | Recurring | NAV | ||
Assets | ||
Investment funds | 552 | |
Variable Interest Entities | Recurring | NAV | Related Party | ||
Assets | ||
Investment funds | 550 | |
Variable Interest Entities | Fair Value | Related Party | ||
Assets | ||
Investment funds | 55 | 57 |
Variable Interest Entities | Fair Value | Level 1 | Related Party | ||
Assets | ||
Investment funds | 0 | 0 |
Variable Interest Entities | Fair Value | Level 2 | Related Party | ||
Assets | ||
Investment funds | 0 | 0 |
Variable Interest Entities | Fair Value | Level 3 | Related Party | ||
Assets | ||
Investment funds | 0 | 0 |
Variable Interest Entities | Fair Value | NAV | Related Party | ||
Assets | ||
Investment funds | 55 | 57 |
Variable Interest Entities | Fair Value | Recurring | ||
Assets | ||
Cash and cash equivalents | 2 | 2 |
Variable Interest Entities | Fair Value | Recurring | Related Party | ||
Assets | ||
Trading securities, at fair value | 34 | 35 |
Equity securities | 6 | 50 |
Investment funds | $ 564 | $ 567 |
Fair Value - Fair Value Option
Fair Value - Fair Value Option (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Total gains (losses) | $ 6,000,000 | $ (3,000,000) | |
Mortgage loans | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option, loans, 90 days or more past due | 0 | $ 0 | |
Unpaid principal balance | 30,000,000 | 30,000,000 | |
Mark to fair value | 2,000,000 | 2,000,000 | |
Fair value | 32,000,000 | $ 32,000,000 | |
Investment related gains (losses) | Trading securities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Total gains (losses) | 50,000,000 | (89,000,000) | |
Net investment income | Investment funds | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Total gains (losses) | (4,000,000) | 2,000,000 | |
Future policy and other policy benefits | Future policy benefits | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Total gains (losses) | $ (40,000,000) | $ 84,000,000 |
Fair Value Fair Value - Reconci
Fair Value Fair Value - Reconciliation of Level 3 Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | $ 5,528 | $ 5,422 |
Total realized and unrealized gains (losses) included in income | 757 | (234) |
Total realized and unrealized gains (losses) included in OCI | 26 | (15) |
Purchases, issuances, sales and settlements, net | 611 | 260 |
Transfers in | 82 | 249 |
Transfers (out) | (278) | (584) |
Ending balance | 6,726 | 5,098 |
Total gains (losses) included in earnings | (3) | 0 |
Beginning balance | (11,078) | (10,849) |
Total realized and unrealized gains (losses) included in income | (1,117) | 441 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 |
Purchases, issuances, sales and settlements, net | (120) | (56) |
Transfers in | 0 | 0 |
Transfers (out) | 0 | 0 |
Ending balance | (12,315) | (10,464) |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Reinsurance Recoverable Including Reinsurance Premium Paid [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 1,676 | 1,824 |
Total realized and unrealized gains (losses) included in income | 61 | (111) |
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 | 1,737 | 1,713 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 32 | 41 |
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 | 0 | 0 |
Transfers in | 0 | 0 |
Transfers (out) | 0 | 0 |
Ending balance | 32 | 41 |
Total gains (losses) included in earnings | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Investment funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 29 | 41 |
Total realized and unrealized gains (losses) included in income | (3) | (9) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 |
Purchases, issuances, sales and settlements, net | (1) | (7) |
Transfers in | 0 | 0 |
Transfers (out) | 0 | 0 |
Ending balance | 25 | 25 |
Total gains (losses) included in earnings | (3) | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 3 | 8 |
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 | 0 | (8) |
Transfers in | 0 | 0 |
Transfers (out) | 0 | 0 |
Ending balance | 3 | 0 |
Total gains (losses) included in earnings | 0 | 0 |
Embedded derivatives | Consolidated Entity Excluding Variable Interest Entities (VIE) | Funds withheld at interest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 57 | 312 |
Total realized and unrealized gains (losses) included in income | 389 | (105) |
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 | 446 | 207 |
Total gains (losses) included in earnings | 0 | 0 |
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | Investment funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 105 | 0 |
Total realized and unrealized gains (losses) included in income | 0 | 3 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 |
Purchases, issuances, sales and settlements, net | 19 | 108 |
Transfers in | 0 | 0 |
Transfers (out) | 0 | 0 |
Ending balance | 124 | 111 |
Total gains (losses) included in earnings | 0 | 3 |
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 120 | |
Total realized and unrealized gains (losses) included in income | 4 | |
Total realized and unrealized gains (losses) included in OCI | 0 | |
Purchases, issuances, sales and settlements, net | 177 | |
Transfers in | 0 | |
Transfers (out) | 0 | |
Ending balance | 301 | |
Total gains (losses) included in earnings | 4 | |
Related Party | Embedded derivatives | Consolidated Entity Excluding Variable Interest Entities (VIE) | Funds withheld at interest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | (110) | |
Total realized and unrealized gains (losses) included in income | 324 | |
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 | 214 | |
Total gains (losses) included in earnings | 0 | |
RMBS | Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 56 | 301 |
Total realized and unrealized gains (losses) included in income | 0 | 1 |
Total realized and unrealized gains (losses) included in OCI | 1 | (5) |
Purchases, issuances, sales and settlements, net | 0 | 23 |
Transfers in | 0 | 7 |
Transfers (out) | 0 | (289) |
Ending balance | 57 | 38 |
Total gains (losses) included in earnings | 0 | 0 |
RMBS | Consolidated Entity Excluding Variable Interest Entities (VIE) | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 134 | 342 |
Total realized and unrealized gains (losses) included in income | (3) | (21) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 |
Transfers in | 38 | 0 |
Transfers (out) | (83) | 0 |
Ending balance | 86 | 321 |
Total gains (losses) included in earnings | 2 | 0 |
ABS | Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 1,615 | 1,457 |
Total realized and unrealized gains (losses) included in income | 3 | 2 |
Total realized and unrealized gains (losses) included in OCI | 16 | (7) |
Purchases, issuances, sales and settlements, net | 57 | (104) |
Transfers in | 19 | 0 |
Transfers (out) | (96) | (58) |
Ending balance | 1,614 | 1,290 |
Total gains (losses) included in earnings | 0 | 0 |
ABS | Consolidated Entity Excluding Variable Interest Entities (VIE) | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 0 | 77 |
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 | 6 | 0 |
Transfers in | 0 | 0 |
Transfers (out) | 0 | (77) |
Ending balance | 6 | 0 |
Total gains (losses) included in earnings | 0 | (3) |
ABS | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 328 | 4 |
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 | 169 | 0 |
Transfers in | 0 | 0 |
Transfers (out) | 0 | 0 |
Ending balance | 497 | 4 |
Total gains (losses) included in earnings | 0 | 0 |
ABS | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 149 | 0 |
Total realized and unrealized gains (losses) included in income | (11) | 0 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 |
Transfers in | 0 | 171 |
Transfers (out) | 0 | 0 |
Ending balance | 138 | 171 |
Total gains (losses) included in earnings | (11) | 0 |
CLO | Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 107 | 64 |
Total realized and unrealized gains (losses) included in income | 0 | 0 |
Total realized and unrealized gains (losses) included in OCI | 2 | 2 |
Purchases, issuances, sales and settlements, net | 30 | 131 |
Transfers in | 0 | 0 |
Transfers (out) | (29) | (30) |
Ending balance | 110 | 167 |
Total gains (losses) included in earnings | 0 | 0 |
CLO | Consolidated Entity Excluding Variable Interest Entities (VIE) | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 1 | 17 |
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 | 0 | 1 |
Transfers in | 7 | 0 |
Transfers (out) | 0 | (17) |
Ending balance | 8 | 1 |
Total gains (losses) included in earnings | 1 | 0 |
CLO | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS 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 | 62 | |
Transfers in | 0 | |
Transfers (out) | 0 | |
Ending balance | 62 | |
Total gains (losses) included in earnings | 0 | |
CLO | Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 78 | 105 |
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 | 18 |
Transfers (out) | (22) | (32) |
Ending balance | 55 | 91 |
Total gains (losses) included in earnings | 4 | (1) |
Corporate | Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 898 | 578 |
Total realized and unrealized gains (losses) included in income | (2) | 4 |
Total realized and unrealized gains (losses) included in OCI | 5 | (4) |
Purchases, issuances, sales and settlements, net | 165 | 58 |
Transfers in | 0 | 53 |
Transfers (out) | (31) | (8) |
Ending balance | 1,035 | 681 |
Total gains (losses) included in earnings | 0 | 0 |
Corporate | Consolidated Entity Excluding Variable Interest Entities (VIE) | Trading 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 | 10 | |
Transfers (out) | 0 | |
Ending balance | 10 | |
Total gains (losses) included in earnings | 0 | |
CMBS | Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 187 | 137 |
Total realized and unrealized gains (losses) included in income | 0 | 0 |
Total realized and unrealized gains (losses) included in OCI | 2 | (1) |
Purchases, issuances, sales and settlements, net | (6) | 0 |
Transfers in | 8 | 0 |
Transfers (out) | (17) | (73) |
Ending balance | 174 | 63 |
Total gains (losses) included in earnings | 0 | 0 |
U.S. state, municipal and political subdivisions | Consolidated Entity Excluding Variable Interest Entities (VIE) | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 17 | |
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 | 17 | |
Total gains (losses) included in earnings | 0 | |
Derivative Financial Instruments, Liabilities [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | (4) | (5) |
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 | 0 | 0 |
Transfers in | 0 | 0 |
Transfers (out) | 0 | 0 |
Ending balance | (4) | (5) |
Total gains (losses) included in earnings | 0 | 0 |
Interest sensitive contract liabilities | Embedded derivatives | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | (7,969) | (7,411) |
Total realized and unrealized gains (losses) included in income | (1,017) | 247 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 |
Purchases, issuances, sales and settlements, net | (120) | (56) |
Transfers in | 0 | 0 |
Transfers (out) | 0 | 0 |
Ending balance | (9,106) | (7,220) |
Total gains (losses) included in earnings | 0 | 0 |
Universal life | Interest sensitive contract liabilities | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | (932) | (1,005) |
Total realized and unrealized gains (losses) included in income | (47) | 71 |
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 | (979) | (934) |
Total gains (losses) included in earnings | 0 | 0 |
AmerUs Closed Block | Future policy benefits | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | (1,443) | (1,625) |
Total realized and unrealized gains (losses) included in income | (40) | 84 |
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 | (1,483) | (1,541) |
Total gains (losses) included in earnings | 0 | 0 |
ILICO Closed Block and life benefits | Future policy benefits | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | (730) | (803) |
Total realized and unrealized gains (losses) included in income | (13) | 39 |
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 | (743) | (764) |
Total gains (losses) included in earnings | 0 | 0 |
Variable Interest Entities | Investment funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 15 | 21 |
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 | (2) |
Transfers in | 0 | 0 |
Transfers (out) | 0 | 0 |
Ending balance | 14 | 20 |
Total gains (losses) included in earnings | 0 | 1 |
Variable Interest Entities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 13 | 28 |
Total realized and unrealized gains (losses) included in income | (3) | 0 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 |
Purchases, issuances, sales and settlements, net | (4) | 0 |
Transfers in | 0 | 0 |
Transfers (out) | 0 | 0 |
Ending balance | 6 | 28 |
Total gains (losses) included in earnings | 0 | 0 |
Variable Interest Entities | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | 35 | 48 |
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 | (1) | (1) |
Transfers in | 0 | 0 |
Transfers (out) | 0 | 0 |
Ending balance | 34 | 47 |
Total gains (losses) included in earnings | $ 0 | $ 0 |
Fair Value - Gross Components o
Fair Value - Gross Components of Purchases, Sales, Issuances and Settlements, net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | $ 829 | $ 453 |
Issuances | 0 | |
Sales | (39) | (37) |
Settlements | (179) | (156) |
Purchases, (Sales), Issuances, (Settlements) | 611 | 260 |
Purchases | 0 | 0 |
Issuances | (233) | (126) |
Sales | 0 | 0 |
Settlements | 113 | 70 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | (120) | (56) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | |
Sales | (8) | |
Purchases, (Sales), Issuances, (Settlements) | 0 | (8) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity securities | Related Party | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 177 | |
Purchases, (Sales), Issuances, (Settlements) | 177 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Investment funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Settlements | (1) | (7) |
Purchases, (Sales), Issuances, (Settlements) | (1) | (7) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Investment funds | Related Party | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 19 | 108 |
Purchases, (Sales), Issuances, (Settlements) | 19 | 108 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | 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 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Corporate | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 238 | 68 |
Sales | (1) | (5) |
Settlements | (72) | (5) |
Purchases, (Sales), Issuances, (Settlements) | 165 | 58 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Corporate | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases, (Sales), Issuances, (Settlements) | 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CLO | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 30 | 131 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 30 | 131 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CLO | AFS securities | Related Party | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 62 | |
Sales | 0 | |
Settlements | 0 | |
Purchases, (Sales), Issuances, (Settlements) | 62 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CLO | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 13 | |
Sales | 0 | |
Settlements | (12) | |
Purchases, (Sales), Issuances, (Settlements) | 0 | 1 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CLO | Trading securities | Related Party | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | |
Sales | (1) | |
Settlements | 0 | |
Purchases, (Sales), Issuances, (Settlements) | 0 | (1) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | RMBS | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 31 | |
Settlements | (8) | |
Purchases, (Sales), Issuances, (Settlements) | 0 | 23 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | RMBS | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 189 | 40 |
Sales | (33) | (20) |
Settlements | (99) | (124) |
Purchases, (Sales), Issuances, (Settlements) | 57 | (104) |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | AFS securities | Related Party | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 170 | |
Sales | 0 | |
Settlements | (1) | |
Purchases, (Sales), Issuances, (Settlements) | 169 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ABS | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 6 | |
Sales | 0 | |
Settlements | 0 | |
Purchases, (Sales), Issuances, (Settlements) | 6 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | 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 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | CMBS | AFS securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | |
Sales | 0 | |
Settlements | (6) | |
Purchases, (Sales), Issuances, (Settlements) | (6) | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 |
Interest sensitive contract liabilities | Consolidated Entity Excluding Variable Interest Entities (VIE) | Embedded derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | 0 |
Issuances | (233) | (126) |
Sales | 0 | 0 |
Settlements | 113 | 70 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | (120) | (56) |
Variable Interest Entities | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | 0 |
Sales | (1) | (1) |
Settlements | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | (1) | (1) |
Variable Interest Entities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | |
Sales | (4) | |
Settlements | 0 | |
Purchases, (Sales), Issuances, (Settlements) | $ (4) | 0 |
Variable Interest Entities | Investment funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | 0 | |
Sales | (2) | |
Settlements | 0 | |
Purchases, (Sales), Issuances, (Settlements) | $ (2) |
Fair Value - Summary of Unobser
Fair Value - Summary of Unobservable Inputs for the Embedded Derivatives of Interest Sensitive Contract Liabilities (Details) $ in Millions | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Nonperformance risk | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.001 | 0.003 |
Nonperformance risk | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.013 | 0.015 |
Option budget | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.007 | 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 | 0.036 | 0.036 |
Surrender rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.075 | 0.073 |
Embedded derivatives | Interest sensitive contract liabilities | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total liabilities measured at fair value | $ 9,106 | $ 7,969 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Mortgage loans | $ 11,333 | $ 10,631 |
Investment funds | 3,592 | 3,559 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Liabilities | ||
Interest sensitive contract liabilities | 98,452 | 96,610 |
Long-term debt | 991 | 991 |
Funds withheld liability | 724 | 721 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Carrying Value | ||
Assets | ||
Mortgage loans | 11,010 | 10,308 |
Investment funds | 524 | 521 |
Policy loans | 487 | 488 |
Funds withheld at interest | 14,795 | 14,966 |
Other investments | 69 | 70 |
Total assets measured at fair value | 43,145 | 42,805 |
Liabilities | ||
Interest sensitive contract liabilities | 55,220 | 54,655 |
Long-term debt | 991 | 991 |
Funds withheld liability | 712 | 722 |
Total liabilities not carried at fair value | 56,923 | 56,368 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Fair Value | ||
Assets | ||
Mortgage loans | 11,190 | 10,424 |
Investment funds | 524 | 521 |
Policy loans | 487 | 488 |
Funds withheld at interest | 14,795 | 14,966 |
Other investments | 69 | 70 |
Total assets measured at fair value | 43,322 | 42,895 |
Liabilities | ||
Interest sensitive contract liabilities | 53,504 | 51,655 |
Long-term debt | 962 | 910 |
Funds withheld liability | 712 | 722 |
Total liabilities not carried at fair value | 55,178 | 53,287 |
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 | 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 | 11,190 | 10,424 |
Investment funds | 0 | 0 |
Policy loans | 0 | 0 |
Funds withheld at interest | 14,795 | 14,966 |
Other investments | 69 | 70 |
Total assets measured at fair value | 40,198 | 39,798 |
Liabilities | ||
Interest sensitive contract liabilities | 53,504 | 51,655 |
Long-term debt | 0 | 0 |
Funds withheld liability | 0 | 0 |
Total liabilities not carried at fair value | 53,504 | 51,655 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | NAV | Fair Value | ||
Assets | ||
Investment funds | 524 | 521 |
Total assets measured at fair value | 2,637 | 2,609 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Level 2 | Fair Value | ||
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Policy loans | 487 | 488 |
Funds withheld at interest | 0 | 0 |
Other investments | 0 | 0 |
Total assets measured at fair value | 487 | 488 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Long-term debt | 962 | 910 |
Funds withheld liability | 712 | 722 |
Total liabilities not carried at fair value | 1,674 | 1,632 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||
Assets | ||
Mortgage loans | 291 | 291 |
Investment funds | 2,290 | 2,232 |
Funds withheld at interest | 13,683 | 13,577 |
Other investments | 387 | 386 |
Liabilities | ||
Interest sensitive contract liabilities | 16,533 | 16,850 |
Funds withheld liability | 327 | 337 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Carrying Value | ||
Assets | ||
Mortgage loans | 291 | 291 |
Investment funds | 2,058 | 2,031 |
Funds withheld at interest | 13,469 | 13,687 |
Other investments | 387 | 386 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Fair Value | ||
Assets | ||
Mortgage loans | 286 | 290 |
Investment funds | 2,058 | 2,031 |
Funds withheld at interest | 13,469 | 13,687 |
Other investments | 389 | 361 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Level 1 | Fair Value | ||
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | 0 |
Other investments | 0 | 0 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Level 3 | Fair Value | ||
Assets | ||
Mortgage loans | 286 | 290 |
Investment funds | 0 | 0 |
Funds withheld at interest | 13,469 | 13,687 |
Other investments | 389 | 361 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | NAV | Fair Value | ||
Assets | ||
Investment funds | 2,058 | 2,031 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | Level 2 | Fair Value | ||
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | 0 |
Other investments | 0 | 0 |
Variable Interest Entities | ||
Assets | ||
Investment funds | 619 | 624 |
Variable Interest Entities | Related Party | ||
Assets | ||
Investment funds | 580 | 583 |
Variable Interest Entities | Related Party | Carrying Value | ||
Assets | ||
Investment funds | 55 | 57 |
Variable Interest Entities | Related Party | Fair Value | ||
Assets | ||
Investment funds | 55 | 57 |
Variable Interest Entities | Related Party | Level 1 | Fair Value | ||
Assets | ||
Investment funds | 0 | 0 |
Variable Interest Entities | Related Party | Level 3 | Fair Value | ||
Assets | ||
Investment funds | 0 | 0 |
Variable Interest Entities | Related Party | NAV | Fair Value | ||
Assets | ||
Investment funds | 55 | 57 |
Variable Interest Entities | Related Party | Level 2 | Fair Value | ||
Assets | ||
Investment funds | $ 0 | $ 0 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
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 | 0.04 | 0.05 |
Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.07 | 0.09 |
Deferred Acquisition Costs, D_3
Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired - Roll Forward of DAC, DSI, and VOBA (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
DAC | ||
Beginning balance | $ 3,921 | $ 1,375 |
Additions | 173 | 122 |
Amortization | (226) | (33) |
Impact of unrealized investment (gains) losses | (149) | 67 |
Ending balance | 3,719 | 1,531 |
DSI | ||
Beginning balance | 799 | 520 |
Additions | 60 | 46 |
Amortization | (5) | (20) |
Impact of unrealized investment (gains) losses | (49) | 22 |
Ending balance | 805 | 568 |
VOBA | ||
Beginning balance | 1,187 | 1,077 |
Additions | 0 | 0 |
Amortization | (5) | (49) |
Impact of unrealized investment (gains) losses | (87) | 79 |
Ending balance | 1,095 | 1,107 |
Total | ||
Beginning balance | 5,907 | 2,972 |
Additions | 233 | 168 |
Amortization | (236) | (102) |
Impact of unrealized investment (gains) losses | (285) | 168 |
Ending balance | $ 5,619 | $ 3,206 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Common Class A | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net Income (Loss) Available to Common Stockholders, Basic | $ 589 | $ 209 |
Net income available to AHL shareholders – diluted | $ 589 | $ 209 |
Basic weighted average shares outstanding (in shares) | 161.3 | 148.7 |
Dilutive effect of stock compensation plans (in shares) | 0.4 | 0.3 |
Diluted weighted average shares outstanding (in shares) | 161.7 | 149 |
Earnings per share | ||
Basic (in USD per share) | $ 3.65 | $ 1.40 |
Diluted (in USD per share) | $ 3.64 | $ 1.40 |
Common Class B | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net Income (Loss) Available to Common Stockholders, Basic | $ 93 | $ 58 |
Net income available to AHL shareholders – diluted | $ 93 | $ 58 |
Basic weighted average shares outstanding (in shares) | 25.4 | 41.1 |
Dilutive effect of stock compensation plans (in shares) | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 25.4 | 41.1 |
Earnings per share | ||
Basic (in USD per share) | $ 3.65 | $ 1.40 |
Diluted (in USD per share) | $ 3.65 | $ 1.40 |
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 | $ 12 | $ 5 |
Net income available to AHL shareholders – diluted | $ 12 | $ 5 |
Basic weighted average shares outstanding (in shares) | 3.4 | 3.4 |
Dilutive effect of stock compensation plans (in shares) | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 3.4 | 3.4 |
Earnings per share | ||
Basic (in USD per share) | $ 3.65 | $ 1.40 |
Diluted (in USD per share) | $ 3.65 | $ 1.40 |
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 | $ 3 | $ 1 |
Net income available to AHL shareholders – diluted | $ 3 | $ 1 |
Basic weighted average shares outstanding (in shares) | 0.8 | 0.8 |
Dilutive effect of stock compensation plans (in shares) | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 0.8 | 0.8 |
Earnings per share | ||
Basic (in USD per share) | $ 3.65 | $ 1.40 |
Diluted (in USD per share) | $ 3.65 | $ 1.39 |
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 | $ 3 | $ 1 |
Net income available to AHL shareholders – diluted | $ 3 | $ 1 |
Basic weighted average shares outstanding (in shares) | 1 | 1 |
Dilutive effect of stock compensation plans (in shares) | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 1 | 1 |
Earnings per share | ||
Basic (in USD per share) | $ 3.65 | $ 1.40 |
Diluted (in USD per share) | $ 3.65 | $ 1.38 |
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 | $ 8 | $ 3 |
Net income available to AHL shareholders – diluted | $ 8 | $ 3 |
Basic weighted average shares outstanding (in shares) | 2.1 | 2.1 |
Dilutive effect of stock compensation plans (in shares) | 0.3 | 0.9 |
Diluted weighted average shares outstanding (in shares) | 2.4 | 3 |
Earnings per share | ||
Basic (in USD per share) | $ 3.65 | $ 1.40 |
Diluted (in USD per share) | $ 3.15 | $ 0.97 |
Earnings Per Share - Shares Exc
Earnings Per Share - Shares Excluded from Dilutive Calculation (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from dilutive shares outstanding (in shares) | 34.8 | 35.5 |
Common Class A | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares (in shares) | 34.7 | 35.2 |
Shares excluded from dilutive shares outstanding due to performance conditions (in shares) | 0.1 | 0.3 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income - Detail of AOCI (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | $ 884 | $ (585) |
Deferred income taxes | (178) | 113 |
Accumulated other comprehensive income (loss) | 706 | (472) |
AFS securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | 1,223 | (766) |
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 | (357) | 154 |
Noncredit component of OTTI losses on AFS securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | (20) | (19) |
Hedging instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | 43 | 51 |
Pension adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | (3) | (2) |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before taxes | $ (2) | $ (3) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Income tax expense (benefit) | $ (291) | $ 179 | |
Other comprehensive income (loss), after tax | 1,178 | (773) | |
Adoption of ASU 2016-01 | $ (3) | ||
Change in Accumulated Other Comprehensive Income | 1,178 | (815) | |
Unrealized investment gains (losses) on AFS securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before reclassifications, before tax | 1,982 | (1,282) | |
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 | (511) | 410 | |
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 | (7) | 19 | |
Income tax expense (benefit) | 293 | (159) | |
Other comprehensive income (loss), after tax | 1,185 | (732) | |
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) | |
Reclassification adjustment for gains (losses) realized in net income | 0 | (1) | |
Other comprehensive income (loss), after tax | (1) | 0 | |
Unrealized gains (losses) on hedging instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before reclassifications, before tax | (8) | (56) | |
Income tax expense (benefit) | (2) | (20) | |
Other comprehensive income (loss), after tax | (6) | (36) | |
Pension adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before reclassifications, before tax | (1) | 3 | |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), after tax | 1 | $ (8) | |
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 | $ (42) |
Equity - Narrative (Details)
Equity - Narrative (Details) - Repurchase Authorization 2018 [Member] - Common Class A - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | May 07, 2019 | Dec. 05, 2018 | |
Class of Stock [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 250 | |||
Stock Repurchased During Period, Value | $ (47) | $ (100) | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 103 | $ 150 | ||
Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 247 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 350 |
Related Parties - Summary of As
Related Parties - Summary of Assets Sub-Advised by Affiliates (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Mortgage loans | $ 11,333 | $ 10,631 |
Investment funds | 3,592 | 3,559 |
Total assets | 132,857 | 125,505 |
Apollo affiliates | Related party | Assets sub-advised | ||
Related Party Transaction [Line Items] | ||
Mortgage loans | 3,856 | 3,507 |
Investment funds | 309 | 157 |
Trading securities, at fair value | 88 | 87 |
Equity securities | 2 | 2 |
Funds withheld at interest | 4,935 | 4,126 |
Other investments | 69 | 70 |
Total assets | $ 21,331 | $ 18,746 |
Percent of assets sub-advised by Apollo affiliates to total AAM-managed assets | 19.00% | 18.00% |
Apollo affiliates | Foreign governments | Related party | Assets sub-advised | ||
Related Party Transaction [Line Items] | ||
Available-for-sale securities | $ 240 | $ 153 |
Apollo affiliates | Corporate | Related party | Assets sub-advised | ||
Related Party Transaction [Line Items] | ||
Available-for-sale securities | 3,680 | 3,398 |
Apollo affiliates | CLO | Related party | Assets sub-advised | ||
Related Party Transaction [Line Items] | ||
Available-for-sale securities | 6,487 | 5,703 |
Apollo affiliates | ABS | Related party | Assets sub-advised | ||
Related Party Transaction [Line Items] | ||
Available-for-sale securities | 654 | 663 |
Apollo affiliates | CMBS | Related party | Assets sub-advised | ||
Related Party Transaction [Line Items] | ||
Available-for-sale securities | $ 1,011 | $ 880 |
Related Parties - Management Fe
Related Parties - Management Fees Incurred (Details) - Related party - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Asset management fees | ||
Related Party Transaction [Line Items] | ||
Expenses from transactions with related parties | $ 75 | $ 70 |
Sub-advisory fees | ||
Related Party Transaction [Line Items] | ||
Expenses from transactions with related parties | $ 17 | $ 13 |
Related Parties - Narrative (De
Related Parties - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Oct. 24, 2018 | Jun. 01, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||||||
Investment funds | $ 3,592 | $ 3,559 | ||||
Related Party | Management fees associated with investment funds | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related parties | 35 | 34 | ||||
Related Party | Sub-advisory fees associated with investment funds management | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related parties | 16 | 20 | ||||
Related Party | MidCap | ||||||
Related Party Transaction [Line Items] | ||||||
Related party purchases | 2 | $ 62 | ||||
MidCap | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment Owned, Balance, Principal Amount | 245 | |||||
Equity Method Investments, Including Credit Facility Advances | 789 | 791 | ||||
Athene Asset Management | Related Party | Portfolio Management Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Investment portfolio assets managed by affiliates | $ 90,287 | |||||
Investment portfolio assets, percentage rated at one or two by the NAIC | 86.00% | |||||
Management fee payable, percentage | 0.40% | |||||
Amended Management Fee, Percentage, Assets in Excess of $65,846 million | 0.30% | |||||
Amended Management Fee, Threshold | $ 65,846 | |||||
Apollo affiliates | Related Party | 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% | |||||
Amended Sub-Advisory Fee, Percentage, Assets in excess of $10,000 million up to $12,441 million | 0.35% | |||||
Amended Sub-Advisory Fee, Percentage, Assets in excess of $12,441 million up to $16,000 million | 0.40% | |||||
Amended Sub-Advisory Fee, Percentage, Assets in excess of $16,000 million | 0.35% | |||||
Amended Sub-Advisory Fee, Threshold One | $ 10,000 | |||||
Amended Sub-Advisory Fee, Threshold Two | 12,441 | |||||
Amended Sub-Advisory Fee, Threshold Three | 16,000 | |||||
AmeriHome | Related Party | Purchase of residential mortgage loans under agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Related party purchases | $ 0 | $ 44 | ||||
Venerable | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment Owned, Balance, Principal Amount | $ 148 | |||||
Stated interest rate | 6.257% | |||||
Apollo Athene Strategic Partnership Advisors, LLC [Member] | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Strategic Partnership Capacity | $ 2,500 | |||||
Funding Agreements | Athora Holding Ltd. | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Interest sensitive contract liabilities | $ 163 | 166 | ||||
Investments | ||||||
Related Party Transaction [Line Items] | ||||||
Investment commitment | 2,938 | 3,036 | ||||
Investments | A-A Mortgage | ||||||
Related Party Transaction [Line Items] | ||||||
Investment commitment | 169 | |||||
Investments | Athora Holding Ltd. | ||||||
Related Party Transaction [Line Items] | ||||||
Investment commitment | 300 | |||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||||
Related Party Transaction [Line Items] | ||||||
Interest sensitive contract liabilities | 98,452 | 96,610 | ||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment funds | 2,290 | 2,232 | ||||
Interest sensitive contract liabilities | 16,533 | 16,850 | ||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Private equity | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment funds | 52 | 18 | ||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Private equity | AmeriHome | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment funds | 436 | 463 | ||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Private equity | Athora Holding Ltd. | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment funds | 124 | 105 | ||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Private equity | Venerable | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment funds | 87 | $ 92 | ||||
Variable Interest Entities | Apollo Athene Strategic Partnership Advisors, LLC [Member] | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Investment funds | $ 16 |
Commitments and Contingencies -
Commitments and Contingencies - Pledged Assets and Funds in Trust (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
AFS securities | $ 6,543 | $ 5,439 |
Debt Securities, Trading, Restricted | 277 | 68 |
Equity securities | 2 | 2 |
Investment funds | 56 | 53 |
Derivative assets pledged as collateral | 68 | 24 |
Mortgage loans | 1,967 | 1,830 |
Short-term investments | 56 | 77 |
Other investments | 47 | 47 |
Restricted cash | 497 | 492 |
Total restricted assets | $ 9,513 | $ 8,032 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Other Commitments [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 219,000,000 | |
Advances from FHLB | 926,000,000 | $ 926,000,000 |
COLI asset value | 373,000,000 | |
Value of guarantees on COLI | 185,000,000 | |
Investments | ||
Other Commitments [Line Items] | ||
Investment commitment | 2,938,000,000 | 3,036,000,000 |
Athene Global Funding | Senior notes | ||
Other Commitments [Line Items] | ||
Maximum borrowing capacity | 10,000,000,000 | |
Athene Global Funding | Funding Agreements | ||
Other Commitments [Line Items] | ||
Interest sensitive contract liabilities | 2,700,000,000 | $ 2,700,000,000 |
Caldera [Member] | Pending Litigation [Member] | ||
Other Commitments [Line Items] | ||
Loss Contingency, Damages Sought, Value | $ 1,500,000,000 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Operating Revenues to Consolidation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 4,961 | $ 1,011 |
Operating Segments | Retirement Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 3,306 | 1,257 |
Operating Segments | Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 32 | 27 |
Non-operating adjustments | ||
Segment Reporting Information [Line Items] | ||
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | 940 | (158) |
Investment gains (losses), net of offsets | 713 | (106) |
Other Nonoperating Income | $ (30) | $ (9) |
Segment Information - Reconci_2
Segment Information - Reconciliation of Segment Operating Income to Consolidation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income tax (expense) benefit – non-operating | $ (32) | $ (45) |
Net income available to Athene Holding Ltd. shareholders | 708 | 277 |
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 | 286 | 239 |
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 | 2 |
Non-operating adjustments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Investment gains (losses), net of offsets | 458 | (33) |
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | (27) | 86 |
Integration, restructuring and other non-operating expenses | (1) | (8) |
Stock-based compensation, excluding LTIP | (3) | (3) |
Income tax (expense) benefit – non-operating | $ (6) | $ (6) |
Segment Information - Assets by
Segment Information - Assets by Segment (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 132,857 | $ 125,505 |
Retirement Services | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 130,965 | 123,498 |
Corporate and Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 1,892 | $ 2,007 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Uncategorized Items - ahl-20190
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (42,000,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 39,000,000 |