Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Document Information [Line Items] | ||
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-0630022 | |
Entity Registrant Name | ATHENE HOLDING LTD | |
Entity Address, Address Line One | 96 Pitts Bay Road | |
Entity Address, City or Town | Pembroke | |
Entity Address, Postal Zip Code | HM 08 | |
Entity Address, Country | BM | |
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 Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2020 | |
Entity File Number | 001-37963 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 191,463,918 | |
City Area Code | 441 | |
Local Phone Number | 279-8400 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Common Class A | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A common shares, par value $0.001 per share | |
Trading Symbol | ATH | |
Security Exchange Name | NYSE | |
Preference Share, Series A | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 6.35% Fixed-to-Floating Rate Perpetual Non-Cumulative Preference Share, Series A | |
Trading Symbol | ATHPrA | |
Security Exchange Name | NYSE | |
Preference Share, Series B | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 5.625% Fixed Rate Perpetual Non-Cumulative Preference Share, Series B | |
Trading Symbol | ATHPrB | |
Security Exchange Name | NYSE | |
Preference Share, Series C | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 6.375% Fixed-Rate Reset Perpetual Non-Cumulative Preference Share, Series C | |
Trading Symbol | ATHPrC | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Investments | ||
Available-for-sale securities | $ 73,988 | $ 71,374 |
Trading securities | 2,069 | 2,070 |
Equity securities | 697 | 247 |
Mortgage loans | 14,591 | 14,306 |
Investment funds | 723 | 750 |
Policy loans | 387 | 417 |
Funds withheld at interest | 48,593 | 15,181 |
Derivative assets | 2,771 | 2,888 |
Short-term Investments | 165 | 596 |
Other investments | 949 | 158 |
Total investments | 144,933 | 107,987 |
Cash and cash equivalents | 7,548 | 4,240 |
Restricted cash | 1,226 | 402 |
Accrued investment income | 796 | 807 |
Reinsurance recoverable | 5,104 | 4,863 |
Deferred acquisition costs, deferred sales inducements and value of business acquired | 5,165 | 5,008 |
Other assets | 1,044 | 1,005 |
Total assets | 191,088 | 146,875 |
Liabilities | ||
Policyholder Contract Deposit | 141,207 | 102,745 |
Liability for Future Policy Benefit, before Reinsurance | 24,823 | 23,330 |
Other policy claims and benefits | 118 | 138 |
Dividends payable to policyholders | 110 | 113 |
Short-term Debt | 0 | 475 |
Long-term debt | 1,487 | 992 |
Derivative liabilities | 147 | 97 |
Payables for collateral on derivatives and securities to repurchase | 3,742 | 3,255 |
Funds withheld liability | 440 | 408 |
Other liabilities | 1,897 | 1,181 |
Total liabilities | 173,971 | 132,734 |
Equity | ||
Additional paid-in capital | 6,045 | 4,171 |
Retained earnings | 7,010 | 6,939 |
Adoption of accounting standards | 2,888 | 2,281 |
Stockholders' Equity Attributable to Parent | 15,943 | 13,391 |
Stockholders' Equity Attributable to Noncontrolling Interest | 1,174 | 750 |
Total equity | 17,117 | 14,141 |
Total liabilities and equity | 191,088 | 146,875 |
Preference Share, Series A | ||
Equity | ||
Preferred stock | 0 | 0 |
Preference Share, Series B | ||
Equity | ||
Preferred stock | 0 | 0 |
Preference Share, Series C | ||
Equity | ||
Preferred stock | 0 | 0 |
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 |
Related Party | ||
Investments | ||
Available-for-sale securities | 4,857 | 3,804 |
Trading securities | 1,397 | 785 |
Equity securities | 50 | 64 |
Mortgage loans | 640 | 653 |
Investment funds | 4,808 | 3,550 |
Funds withheld at interest | 13,053 | 13,220 |
Other investments | 467 | 487 |
Accrued investment income | 38 | 27 |
Liabilities | ||
Policyholder Contract Deposit | 14,352 | 15,285 |
Liability for Future Policy Benefit, before Reinsurance | 1,527 | 1,302 |
Other policy claims and benefits | 2 | 13 |
Other liabilities | 92 | 79 |
Equity | ||
Adoption of accounting standards | $ (19) | $ 17 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Available-for-sale securities | ||
Available-for-sale securities | $ 69,160 | $ 67,479 |
AFS securities allowance for credit losses | 140 | |
Mortgage loans allowance for credit losses | 313 | 11 |
Mortgage loans | 14,591 | 14,306 |
Investment funds | 156 | 154 |
Investment funds | 723 | 750 |
Funds withheld at interest | 48,593 | 15,181 |
Short-term Investments | 165 | 596 |
Other Investments allowance for credit losses | 8 | |
Other investments | 949 | 158 |
Cash and cash equivalents | 7,548 | 4,240 |
Accrued investment income | 796 | 807 |
Reinsurance recoverable | 5,104 | 4,863 |
Other assets | 1,044 | 1,005 |
Trading securities | 2,069 | 2,070 |
Deferred acquisition costs, deferred sales inducements and value of business acquired | 5,165 | 5,008 |
Interest sensitive contract liabilities | 141,207 | 102,745 |
Future policy benefits | 24,823 | 23,330 |
Other policy claims and benefits | 118 | 138 |
Funds withheld liability | 440 | 408 |
Other liabilities | 1,897 | 1,181 |
Accumulated other comprehensive income | 2,888 | 2,281 |
Related Party | ||
Available-for-sale securities | ||
Available-for-sale securities | 4,861 | 3,783 |
AFS securities allowance for credit losses | 2 | 0 |
Equity securities | 50 | 64 |
Mortgage loans allowance for credit losses | 0 | |
Mortgage loans | 640 | 653 |
Investment funds | 1,850 | 819 |
Investment funds | 4,808 | 3,550 |
Funds withheld at interest | 13,053 | 13,220 |
Other Investments allowance for credit losses | 5 | |
Other investments | 467 | 487 |
Accrued investment income | 38 | 27 |
Trading securities | 1,397 | 785 |
Interest sensitive contract liabilities | 14,352 | 15,285 |
Future policy benefits | 1,527 | 1,302 |
Other policy claims and benefits | 2 | 13 |
Other liabilities | 92 | 79 |
Accumulated other comprehensive income | (19) | 17 |
Variable Interest Entities | ||
Available-for-sale securities | ||
Mortgage loans | 1,879 | 0 |
Investment funds | 0 | 19 |
Cash and cash equivalents | 0 | 3 |
Other assets | 1 | 20 |
Trading securities | 0 | 16 |
Other liabilities | 134 | 0 |
Variable Interest Entities | Related Party | ||
Available-for-sale securities | ||
Equity securities | 0 | 6 |
Investment funds | 0 | 664 |
Fair Value | ||
Available-for-sale securities | ||
Mortgage loans | 15,114 | 14,719 |
Investment funds | 567 | 596 |
Funds withheld at interest | 47,334 | 14,380 |
Short-term Investments | 190 | |
Other investments | 852 | 65 |
Interest sensitive contract liabilities | 96,125 | 58,027 |
Funds withheld liability | 390 | 377 |
Fair Value | Related Party | ||
Available-for-sale securities | ||
Mortgage loans | 628 | 641 |
Investment funds | 2,958 | 2,731 |
Funds withheld at interest | 12,332 | 12,626 |
Other investments | $ 489 | $ 537 |
Preference Share, Series A | ||
Available-for-sale securities | ||
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Preferred Stock, Liquidation Preference, Value | $ 863 | $ 863 |
Preferred Stock, Shares Authorized | 34,500 | 0 |
Preferred Stock, Shares Issued | 34,500 | 0 |
Preferred Stock, Shares Outstanding | 34,500 | 0 |
Preference Share, Series B | ||
Available-for-sale securities | ||
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Preferred Stock, Liquidation Preference, Value | $ 345 | $ 345 |
Preferred Stock, Shares Authorized | 13,800 | 0 |
Preferred Stock, Shares Issued | 13,800 | 0 |
Preferred Stock, Shares Outstanding | 13,800 | 0 |
Preference Share, Series C | ||
Available-for-sale securities | ||
Preferred Stock, Par or Stated Value Per Share | $ 1 | |
Preferred Stock, Liquidation Preference, Value | $ 600 | |
Preferred Stock, Shares Authorized | 24,000 | |
Preferred Stock, Shares Issued | 24,000 | |
Preferred Stock, Shares Outstanding | 24,000 | |
Common Class A | ||
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) | 191,500,000 | 143,200,000 |
Common stock outstanding (in shares) | 191,500,000 | 143,200,000 |
Common Class B | ||
Available-for-sale securities | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 0 | 325,000,000 |
Common stock issued (in shares) | 0 | 25,400,000 |
Common stock outstanding (in shares) | 0 | 25,400,000 |
Common Class M-1 | ||
Available-for-sale securities | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 0 | 7,100,000 |
Common stock issued (in shares) | 0 | 3,300,000 |
Common stock outstanding (in shares) | 0 | 3,300,000 |
Common Class M-2 | ||
Available-for-sale securities | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 0 | 5,000,000 |
Common stock issued (in shares) | 0 | 800,000 |
Common stock outstanding (in shares) | 0 | 800,000 |
Common Class M-3 | ||
Available-for-sale securities | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 0 | 7,500,000 |
Common stock issued (in shares) | 0 | 1,000,000 |
Common stock outstanding (in shares) | 0 | 1,000,000 |
Common Class M-4 | ||
Available-for-sale securities | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 0 | 7,500,000 |
Common stock issued (in shares) | 0 | 4,000,000 |
Common stock outstanding (in shares) | 0 | 4,000,000 |
Recurring | ||
Available-for-sale securities | ||
Investment funds | $ 819 | |
Recurring | Fair Value | ||
Available-for-sale securities | ||
Equity securities | $ 265 | 247 |
Mortgage loans | 19 | 27 |
Investment funds | 156 | 154 |
Funds withheld at interest | 1,259 | 801 |
Short-term Investments | 165 | 406 |
Other investments | 109 | 93 |
Reinsurance recoverable | 2,155 | 1,821 |
Trading securities | 2,069 | 2,070 |
Interest sensitive contract liabilities | 13,104 | 11,992 |
Future policy benefits | 2,354 | 2,301 |
Funds withheld liability | 50 | 31 |
Recurring | Fair Value | Related Party | ||
Available-for-sale securities | ||
Equity securities | 50 | 64 |
Investment funds | 1,850 | 819 |
Funds withheld at interest | 721 | 594 |
Trading securities | $ 1,397 | $ 785 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | ||||
Premiums | $ 112 | $ 2,688 | $ 1,607 | $ 5,475 |
Product charges | 144 | 135 | 425 | 392 |
Investment revenue | 3,660 | 3,673 | ||
Investment expense | 370 | 319 | ||
Net investment income | 1,209 | 1,090 | 3,290 | 3,354 |
Investment related gains (losses) | 1,797 | 665 | 773 | 3,754 |
Other revenues | 13 | 6 | 29 | 27 |
Total revenues | 3,275 | 4,584 | 6,124 | 13,002 |
Benefits and Expenses | ||||
Interest sensitive contract benefits | 1,225 | 801 | 1,982 | 3,411 |
Amortization of deferred sales inducements | 48 | 20 | 37 | 38 |
Future policy and other policy benefits | 439 | 2,955 | 2,469 | 6,395 |
Amortization of deferred acquisition costs and value of business acquired | 299 | 323 | 247 | 815 |
Dividends to policyholders | 9 | 12 | 29 | 30 |
Other Cost and Expense, Operating | 231 | 194 | 637 | 544 |
Total benefits and expenses | 2,251 | 4,305 | 5,401 | 11,233 |
Income before income taxes | 1,024 | 279 | 723 | 1,769 |
Income tax expense (benefit) | 140 | (14) | 124 | 48 |
Net income | 884 | 293 | 599 | 1,721 |
Less: Net income attributable to noncontrolling interests | 232 | 0 | 151 | 0 |
Net income attributable to Athene Holding Ltd. shareholders | 652 | 293 | 448 | 1,721 |
Less: Preferred stock dividends | 30 | 17 | 67 | 17 |
Net income available to Athene Holding Ltd. common shareholders | 622 | 276 | 381 | 1,704 |
Related Party | ||||
Revenues | ||||
Premiums | 71 | 51 | 234 | 173 |
Product charges | 13 | 14 | 41 | 42 |
Investment revenue | 239 | 175 | 515 | 528 |
Investment expense | 111 | 127 | 362 | 313 |
Investment related gains (losses) | 299 | 273 | 429 | 1,025 |
Benefits and Expenses | ||||
Interest sensitive contract benefits | 43 | 97 | 143 | 394 |
Future policy and other policy benefits | 106 | 70 | 298 | 267 |
Other Cost and Expense, Operating | 14 | 10 | 41 | 30 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||
Revenues | ||||
Investment revenue | 1,323 | 1,219 | ||
Investment expense | 114 | 129 | ||
Net investment income | 1,209 | 1,090 | ||
Variable Interest Entities | ||||
Revenues | ||||
Net investment income | 18 | 20 | 34 | 57 |
Investment related gains (losses) | 26 | 2 | 20 | 10 |
Common Class A | ||||
Benefits and Expenses | ||||
Net income available to Athene Holding Ltd. common shareholders | $ 622 | $ 227 | $ 508 | $ 1,411 |
Earnings per share | ||||
Basic (in USD per share) | $ 3.22 | $ 1.50 | $ 2.78 | $ 8.97 |
Diluted (in USD per share) | $ 3.16 | $ 1.50 | $ 2.73 | $ 8.95 |
Common Class B | ||||
Benefits and Expenses | ||||
Net income available to Athene Holding Ltd. common shareholders | $ 38 | $ (98) | $ 228 | |
Earnings per share | ||||
Basic (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Diluted (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Common Class M-1 | ||||
Benefits and Expenses | ||||
Net income available to Athene Holding Ltd. common shareholders | $ 5 | $ (13) | $ 30 | |
Earnings per share | ||||
Basic (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Diluted (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Common Class M-2 | ||||
Benefits and Expenses | ||||
Net income available to Athene Holding Ltd. common shareholders | $ 1 | $ (3) | $ 7 | |
Earnings per share | ||||
Basic (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Diluted (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Common Class M-3 | ||||
Benefits and Expenses | ||||
Net income available to Athene Holding Ltd. common shareholders | $ 2 | $ (4) | $ 9 | |
Earnings per share | ||||
Basic (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Diluted (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Common Class M-4 | ||||
Benefits and Expenses | ||||
Net income available to Athene Holding Ltd. common shareholders | $ 3 | $ (9) | $ 19 | |
Earnings per share | ||||
Basic (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Diluted (in USD per share) | $ 1.29 | $ (3.87) | $ 7.77 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Premiums | $ 112 | $ 2,688 | $ 1,607 | $ 5,475 |
Product charges | 144 | 135 | 425 | 392 |
Investment income | 3,660 | 3,673 | ||
Investment expense | 370 | 319 | ||
Investment related gains (losses) | 1,797 | 665 | 773 | 3,754 |
Interest sensitive contract benefits | 1,225 | 801 | 1,982 | 3,411 |
Future policy and other policy benefits | 439 | 2,955 | 2,469 | 6,395 |
Amortization of deferred acquisition costs and value of business acquired | 299 | 323 | 247 | 815 |
Net investment income | 1,209 | 1,090 | 3,290 | 3,354 |
Policy and other operating expenses | 231 | 194 | 637 | 544 |
Related Party | ||||
Premiums | 71 | 51 | 234 | 173 |
Product charges | 13 | 14 | 41 | 42 |
Investment income | 239 | 175 | 515 | 528 |
Investment expense | 111 | 127 | 362 | 313 |
Investment related gains (losses) | 299 | 273 | 429 | 1,025 |
Interest sensitive contract benefits | 43 | 97 | 143 | 394 |
Future policy and other policy benefits | 106 | 70 | 298 | 267 |
Policy and other operating expenses | 14 | $ 10 | $ 41 | $ 30 |
Common Class B | ||||
Basic (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Common Class M-1 | ||||
Basic (in USD per share) | 1.50 | (3.87) | 8.97 | |
Common Class M-2 | ||||
Basic (in USD per share) | 1.50 | (3.87) | 8.97 | |
Common Class M-3 | ||||
Basic (in USD per share) | 1.50 | (3.87) | 8.97 | |
Common Class M-4 | ||||
Basic (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Variable Interest Entities | ||||
Investment related gains (losses) | 26 | $ 2 | $ 20 | $ 10 |
Net investment income | $ 18 | $ 20 | $ 34 | $ 57 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 884 | $ 293 | $ 599 | $ 1,721 |
Other comprehensive income (loss), before tax | ||||
Unrealized investment gains (losses) on available-for-sale securities, net of offsets | 1,043 | 735 | 710 | 3,473 |
Unrealized gains (losses) on hedging instruments | (178) | 124 | 140 | 171 |
Foreign currency translation and other adjustments | 10 | (1) | 9 | (2) |
Other Comprehensive Income (Loss), before Tax, Total | 875 | 858 | 859 | 3,642 |
Income tax expense (benefit) | 157 | 176 | 165 | 728 |
Other Comprehensive Income (Loss), Net of Tax, Total | 718 | 682 | 694 | 2,914 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | 1,602 | 975 | 1,293 | 4,635 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 246 | 0 | 232 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 1,356 | $ 975 | $ 1,061 | $ 4,635 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Preferred Stock | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Parent | Noncontrolling interest | Preferred Stock | Preferred StockAdditional paid-in capital | Preferred StockParent | Common stock | Common stockAdditional paid-in capital | Common stockParent | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, AdjustmentRetained earnings | Cumulative Effect, Period of Adoption, AdjustmentAccumulated other comprehensive income (loss) | Cumulative Effect, Period of Adoption, AdjustmentParent | Cumulative Effect, Period of Adoption, AdjustmentNoncontrolling interest |
Beginning Balance at Dec. 31, 2018 | $ 8,276 | $ 0 | $ 0 | $ 3,462 | $ 5,286 | $ (472) | $ 8,276 | $ 0 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net income | 1,721 | 1,721 | 1,721 | 0 | |||||||||||||||
Other comprehensive income (loss) | 2,914 | 2,914 | 2,914 | ||||||||||||||||
Issuance of shares, net of expenses | $ 1,172 | $ 1,172 | $ 1,172 | $ 4 | $ 4 | $ 4 | |||||||||||||
Stock-based compensation | 23 | 23 | 23 | ||||||||||||||||
Retirement or repurchase of shares | (548) | (226) | (322) | (548) | |||||||||||||||
Dividends, Preferred Stock | (17) | (17) | (17) | ||||||||||||||||
Ending Balance at Sep. 30, 2019 | 13,545 | 0 | 0 | 4,435 | 6,668 | 2,442 | 13,545 | 0 | |||||||||||
Beginning Balance at Jun. 30, 2019 | 12,365 | 0 | 0 | 4,144 | 6,461 | 1,760 | 12,365 | 0 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net income | 293 | 293 | 293 | 0 | |||||||||||||||
Other comprehensive income (loss) | 682 | 682 | 682 | 0 | |||||||||||||||
Issuance of shares, net of expenses | 333 | 333 | 333 | 2 | 2 | 2 | |||||||||||||
Stock-based compensation | 8 | 8 | 8 | ||||||||||||||||
Retirement or repurchase of shares | (121) | (52) | (69) | (121) | |||||||||||||||
Dividends, Preferred Stock | (17) | (17) | (17) | ||||||||||||||||
Ending Balance at Sep. 30, 2019 | 13,545 | 0 | 0 | 4,435 | 6,668 | 2,442 | 13,545 | 0 | |||||||||||
Beginning Balance at Dec. 31, 2019 | 14,141 | 0 | 0 | 4,171 | 6,939 | 2,281 | 13,391 | 750 | $ (125) | $ (117) | $ (6) | $ (123) | $ (2) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net income | 599 | 448 | 448 | 151 | |||||||||||||||
Other comprehensive income (loss) | 694 | 613 | 613 | 81 | |||||||||||||||
Issuance of shares, net of expenses | $ 583 | $ 583 | $ 583 | $ 1,509 | $ 1,509 | $ 1,509 | |||||||||||||
Stock-based compensation | 14 | 14 | 14 | ||||||||||||||||
Retirement or repurchase of shares | (425) | (232) | (193) | (425) | |||||||||||||||
Dividends, Preferred Stock | (67) | (67) | (67) | ||||||||||||||||
Contributions from noncontrolling interests | 240 | $ 240 | |||||||||||||||||
Distributions to noncontrolling interests | (46) | (46) | |||||||||||||||||
Ending Balance at Sep. 30, 2020 | 17,117 | 0 | 0 | 6,045 | 7,010 | 2,888 | 15,943 | 1,174 | |||||||||||
Beginning Balance at Jun. 30, 2020 | 15,639 | 0 | 0 | 6,090 | 6,437 | 2,184 | 14,711 | 928 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net income | 884 | 652 | 652 | 232 | |||||||||||||||
Other comprehensive income (loss) | 718 | 704 | 704 | 14 | |||||||||||||||
Stock-based compensation | 3 | 3 | 3 | ||||||||||||||||
Retirement or repurchase of shares | (97) | (48) | (49) | (97) | |||||||||||||||
Dividends, Preferred Stock | (30) | (30) | (30) | ||||||||||||||||
Ending Balance at Sep. 30, 2020 | $ 17,117 | $ 0 | $ 0 | $ 6,045 | $ 7,010 | $ 2,888 | $ 15,943 | $ 1,174 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Cash flows from operating activities | |||
Net income | $ 599 | $ 1,721 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of deferred acquisition costs and value of business acquired | 247 | 815 | |
Amortization of deferred sales inducements | 37 | 38 | |
Accretion of net investment premiums, discounts and other | (139) | (60) | |
Payment at recapture of reinsurance agreement | (723) | 0 | |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | (90) | (94) | |
Gain (Loss) on Investments and Derivatives | (462) | 1,682 | |
Policy acquisition costs deferred | (470) | (521) | |
Changes in operating assets and liabilities: | |||
Accrued investment income | (27) | (99) | |
Interest sensitive contract liabilities | 1,691 | 3,086 | |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 338 | 973 | |
Funds withheld assets and liabilities | (856) | (2,488) | |
Other assets and liabilities | (144) | 296 | |
Net cash provided by operating activities | 925 | 1,985 | |
Sales, maturities and repayments of: | |||
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale | 8,850 | 8,344 | |
Proceeds from Sale and Maturity of Debt and Equity Securities, FV-NI, Held-for-investment | 133 | 195 | |
Proceeds from sale of equity securities | 6 | 120 | |
Mortgage loans | 1,593 | 1,513 | |
Proceeds from Investment Funds | 465 | 309 | |
Derivative instruments and other invested assets | 1,331 | 1,008 | |
Proceeds from Sale, Maturity and Collection of Short-term Investments | 766 | 274 | |
Purchases of: | |||
Payments to Acquire Debt Securities, Available-for-sale | (14,071) | (11,413) | |
Payments to Acquire Trading Securities Held-for-investment | (188) | (425) | |
Equity securities | (481) | (421) | |
Mortgage loans | (2,971) | (5,013) | |
Payments to Acquire Investment Funds | (970) | (765) | |
Derivative instruments and other invested assets | (1,451) | (853) | |
Payments to Acquire Short-term Investments | (449) | (653) | |
Cash Divested from Deconsolidation | 3 | 0 | |
Other investing activities, net | 341 | 521 | |
Net cash used in investing activities | (7,099) | (7,259) | |
Cash flows from financing activities | |||
Issuance of common stock | 350 | 0 | |
Repayment of short-term debt | 75 | 0 | |
Proceeds from long-term debt | 499 | 0 | |
Deposits on investment-type policies and contracts | 13,994 | 8,879 | |
Withdrawals on investment-type policies and contracts | (5,320) | (4,846) | |
Payments for coinsurance agreements on investment-type contracts, net | (17) | (39) | |
Capital contributions from noncontrolling interests | 240 | 0 | |
Capital distributions to noncontrolling interests | (46) | 0 | |
Net change in cash collateral posted for derivative transactions and securities to repurchase | (487) | (1,354) | |
Issuance of preferred stock, net of expenses | 583 | 1,172 | |
Preferred stock dividends | 67 | 17 | |
Repurchase of common stock | (425) | (548) | |
Other financing activities, net | 131 | (51) | |
Net cash provided by financing activities | 10,334 | 5,904 | |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (28) | 0 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 4,132 | 630 | |
Cash and cash equivalents at beginning of year | [1] | 4,642 | 3,405 |
Cash and cash equivalents at end of period | [1] | 8,774 | 4,035 |
Non-cash transactions | |||
Deposits on investment-type policies and contracts through reinsurance agreements | 29,876 | 619 | |
Withdrawals on investment-type policies and contracts through reinsurance agreements | 3,313 | 2,764 | |
Reinsurance Settlements [Member] | |||
Non-cash transactions | |||
Transfer to Investments | 53 | 56 | |
Transfer from Investments | 4,298 | 0 | |
Pension Risk Transfer Premiums [Member] | |||
Non-cash transactions | |||
Transfer to Investments | 829 | 4,506 | |
Related Party | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | (72) | (95) | |
Gain (Loss) on Investments and Derivatives | (15) | 26 | |
Changes in operating assets and liabilities: | |||
Accrued investment income | (18) | (3) | |
Interest sensitive contract liabilities | 135 | 338 | |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 209 | 223 | |
Funds withheld assets and liabilities | (644) | (1,261) | |
Sales, maturities and repayments of: | |||
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale | 238 | 101 | |
Proceeds from Sale and Maturity of Debt and Equity Securities, FV-NI, Held-for-investment | 31 | 65 | |
Mortgage loans | 0 | 4 | |
Proceeds from Investment Funds | 408 | 196 | |
Proceeds from Sale, Maturity and Collection of Short-term Investments | 28 | 0 | |
Purchases of: | |||
Payments to Acquire Debt Securities, Available-for-sale | (1,526) | (1,065) | |
Payments to Acquire Trading Securities Held-for-investment | (150) | (6) | |
Mortgage loans | (17) | (366) | |
Payments to Acquire Investment Funds | (914) | (637) | |
Payments to Acquire Short-term Investments | (28) | 0 | |
Cash flows from financing activities | |||
Deposits on investment-type policies and contracts | 63 | 130 | |
Withdrawals on investment-type policies and contracts | (292) | (332) | |
Non-cash transactions | |||
Deposits on investment-type policies and contracts through reinsurance agreements | 252 | 159 | |
Withdrawals on investment-type policies and contracts through reinsurance agreements | 1,063 | 1,351 | |
Related Party | Reinsurance Settlements [Member] | |||
Non-cash transactions | |||
Transfer to Investments | 0 | 97 | |
Related Party | Investment funds | |||
Non-cash transactions | |||
Transfer to Investments | 1,147 | 0 | |
Related Party | Trading securities | |||
Non-cash transactions | |||
Transfer to Investments | $ 516 | $ 0 | |
[1] | 1 Includes cash and cash equivalents and restricted cash. |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Amortization of deferred acquisition costs and value of business acquired | $ 247 | $ 815 |
Net investments (income) loss | (90) | (94) |
Net recognized (gains) losses on investments and derivatives | 462 | (1,682) |
Accrued investment income | (27) | (99) |
Policy acquisition costs deferred | (470) | (521) |
Interest sensitive contract liabilities | 1,691 | 3,086 |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 338 | 973 |
Funds withheld assets and liabilities | (856) | (2,488) |
Sales, maturities and repayments of: | ||
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale | 8,850 | 8,344 |
Trading securities | 133 | 195 |
Mortgage loans | 1,593 | 1,513 |
Investment funds | 465 | 309 |
Derivative instruments and other invested assets | 1,331 | 1,008 |
Short-term investments | 766 | 274 |
Purchases of: | ||
Payments to Acquire Debt Securities, Available-for-sale | (14,071) | (11,413) |
Mortgage loans | (2,971) | (5,013) |
Trading securities | (188) | (425) |
Investment funds | (970) | (765) |
Derivative instruments and other invested assets | (1,451) | (853) |
Short-term investments | (449) | (653) |
Deposits on investment-type policies and contracts | 13,994 | 8,879 |
Repayments of Annuities and Investment Certificates | (5,320) | (4,846) |
Payments for coinsurance agreements on investment-type contracts, net | (17) | (39) |
Deposits on investment-type policies and contracts through reinsurance agreements | 29,876 | 619 |
Withdrawals on investment-type policies and contracts through reinsurance agreements | 3,313 | 2,764 |
Variable Interest Entities | ||
Net investments (income) loss | (24) | 0 |
Net recognized (gains) losses on investments and derivatives | 6 | (10) |
Sales, maturities and repayments of: | ||
Trading securities | 10 | 33 |
Equity securities (related party: 2020 – $3 and 2019 – $51; consolidated variable interest entities: 2020 – $0 and 2019 – $51) | 0 | 51 |
Investment funds | 20 | 8 |
Purchases of: | ||
Investment funds | 0 | (27) |
Related Party | ||
Net investments (income) loss | (72) | (95) |
Net recognized (gains) losses on investments and derivatives | 15 | (26) |
Accrued investment income | (18) | (3) |
Interest sensitive contract liabilities | 135 | 338 |
Future policy benefits, other policy claims and benefits, dividends payable to policyholders and reinsurance recoverable | 209 | 223 |
Funds withheld assets and liabilities | (644) | (1,261) |
Sales, maturities and repayments of: | ||
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale | 238 | 101 |
Trading securities | 31 | 65 |
Mortgage loans | 0 | 4 |
Investment funds | 408 | 196 |
Short-term investments | 28 | 0 |
Purchases of: | ||
Payments to Acquire Debt Securities, Available-for-sale | (1,526) | (1,065) |
Mortgage loans | (17) | (366) |
Trading securities | (150) | (6) |
Investment funds | (914) | (637) |
Short-term investments | (28) | 0 |
Deposits on investment-type policies and contracts | 63 | 130 |
Repayments of Annuities and Investment Certificates | (292) | (332) |
Deposits on investment-type policies and contracts through reinsurance agreements | 252 | 159 |
Withdrawals on investment-type policies and contracts through reinsurance agreements | 1,063 | 1,351 |
Equity securities | Related Party | ||
Sales, maturities and repayments of: | ||
Equity securities (related party: 2020 – $3 and 2019 – $51; consolidated variable interest entities: 2020 – $0 and 2019 – $51) | 4 | 51 |
Purchases of: | ||
Equity securities | (3) | (243) |
Reinsurance Settlements [Member] | ||
Purchases of: | ||
Transfer to Investments | 53 | 56 |
Reinsurance Settlements [Member] | Related Party | ||
Purchases of: | ||
Transfer to Investments | $ 0 | $ 97 |
Business, Basis of Presentation
Business, Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
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 the United States (US) and internationally. We conduct business primarily through the following consolidated subsidiaries: • Our non-US 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 Life Re International Ltd. (ALReI); 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 have determined we are the primary beneficiary. See Note 4 – Variable Interest Entities for further information on VIEs. Consolidation and 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 intercompany accounts and transactions have been eliminated. Interim operating results are not necessarily indicative of the results expected for the entire year, particularly in light of the material risks and uncertainties surrounding the spread of the Coronavirus Disease of 2019 (COVID-19), which has resulted in significant volatility in the financial markets. For entities that are consolidated, but not 100% owned, we allocate a portion of the income or loss and corresponding equity to the owners other than us. We include the aggregate of the income or loss and corresponding equity that is not owned by us in noncontrolling interests in the consolidated financial statements. The condensed consolidated balance sheet as of December 31, 2019 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, 2019. The preparation of financial statements requires the use of management estimates. Our estimates may vary as more information about the extent to which COVID-19 and the resulting impact on economic conditions and the financial markets become known. Actual results may differ from estimates used in preparing the condensed consolidated financial statements. Summary of Significant Accounting Policies The following accounting policies have been updated for the adoption of Accounting Standards Update (ASU) 2016-13 and related ASUs, and apply for reporting periods beginning January 1, 2020. Investments Purchased Credit Deteriorated (PCD) Investments – We purchase certain structured securities, primarily residential mortgage backed securities (RMBS), and re-performing mortgage loans having experienced a more-than-insignificant deterioration in credit quality since their origination which upon our assessment have been determined to meet the definition of PCD investments. Additionally, structured securities classified as beneficial interests follow the initial measurement guidance for PCD investments if there is a significant difference between contractual cash flows adjusted for expected prepayments and expected cash flows at the date of recognition. The initial allowance for credit losses for PCD investments is recorded through a gross-up adjustment to the initial amortized cost. For mortgage loans, the initial allowance is determined using the methodology described in the Credit Losses – Assets Held at Amortized Cost and Off-Balance Sheet Credit Exposures section. For structured securities classified as beneficial interests, the initial allowance is calculated as the present value of the difference between contractual cash flows adjusted for expected prepayments and expected cash flows at the date of recognition. The non-credit purchase discount or premium is amortized into investment income using the effective interest method. The credit discount, represented by the allowance for expected credit losses, is remeasured each period following the policies for measuring credit losses described in the Credit Losses – Assets Held at Amortized Cost and Off-Balance Sheet Credit Exposures and Credit Losses – Available-for-Sale Securities sections below. Credit Losses – Assets Held at Amortized Cost and Off-Balance Sheet Credit Exposures – We establish an allowance for expected credit losses at the time of purchase for assets held at amortized cost, which primarily includes our residential and commercial mortgage loan portfolios, but also includes certain other loans and reinsurance assets. The allowance for expected credit losses represents the portion of the asset's amortized cost basis that we do not expect to collect due to credit losses over the asset's contractual life, considering past events, current conditions, and reasonable and supportable forecasts of future economic conditions or macroeconomic forecasts. We use a quantitative probability of default and loss given default methodology to develop our estimate of expected credit loss. We develop the estimate on a collective basis factoring in the risk characteristics of the assets in the portfolio. If an asset does not share similar risk characteristics with other assets, the asset is individually assessed. Allowance estimates are highly dependent on expectations of future economic conditions and macroeconomic forecasts, which involve significant judgment and subjectivity. We use quantitative modeling to develop the allowance for expected credit losses. Key inputs into the model include data pertaining to the characteristics of the assets, historical losses and current market conditions. Additionally, the model incorporates management’s expectations around future economic conditions and macroeconomic forecasts over a reasonable and supportable forecast period, after which the model reverts to historical averages. These inputs, the reasonable and supportable forecast period, and reversion to historical average technique are subject to a formal governance and review process by management. Additionally, management considers qualitative adjustments to the model output to the extent that any relevant information regarding the collectability of the asset is available and not already considered in the quantitative model. If we determine that a financial asset has become collateral dependent, which we determine to be when foreclosure is probable, the allowance is measured as the difference between amortized cost and the fair value of the collateral, less any expected costs to sell. The initial allowance for invested assets held at amortized cost other than for PCD investments, and subsequent changes in the allowance including PCD investments, are recorded through a charge to credit loss expense within investment related gains (losses) on the condensed consolidated statements of income. Credit loss expense for reinsurance assets held at amortized cost is recorded through policy and other operating expenses on the condensed consolidated statements of income. We limit accrued interest income on loans to 90 days of interest. Once a loan becomes 90 days past due, the loan is put on non-accrual status and any accrued interest is written off. Once a loan is on non-accrual status, we first apply any payments received to the principal of the loan, and once the principal is repaid, we include amounts received in net investment income. We have elected to present accrued interest receivable separately in accrued investment income on the condensed consolidated balance sheets. We have also elected the practical expedient to exclude the accrued interest receivable from the amortized cost balance used to calculate the allowance given our policy to write off such balances in a timely manner. Any write-off of accrued interest is recorded through a reversal of net investment income on the condensed consolidated statements of income. Upon determining that all or a portion of the amortized cost of an asset is uncollectible, which is generally when all efforts for collection are exhausted, the amortized cost is written off against the existing allowance. Any write off in excess of the existing allowance is recorded through credit loss expense within investment related gains (losses) on the condensed consolidated statements of income. We also have certain off-balance sheet credit exposures for which we establish a liability for expected future credit losses. These exposures primarily relate to commitments to fund commercial or residential mortgage loans that are not unconditionally cancelable. The methodology for estimating the liability for these credit exposures is consistent with that described above, with the additional consideration pertaining to the probability of funding. At the time the commitment expires or is funded, the liability is reversed and an allowance for expected credit losses is established, as applicable. The liability for off-balance sheet credit exposures is included in other liabilities on the condensed consolidated balance sheets. The establishment of the initial liability and all subsequent changes are recorded through credit loss expense within investment related gains (losses) on the condensed consolidated statements of income. Credit Losses – Available-for-Sale Securities – We evaluate available-for-sale (AFS) securities with a fair value that has declined below amortized cost to determine how the decline in fair value should be recognized. If we determine, based on the facts and circumstances related to the specific security, that we intend to sell a security or it is more likely than not that we would be required to sell a security before the recovery of its amortized cost, any existing allowance for credit losses is reversed and the amortized cost of the security is written down to fair value. If neither of these conditions exist, we evaluate whether the decline in fair value has resulted from a credit loss or other factors. For non-structured AFS securities, we qualitatively consider relevant facts and circumstances in evaluating whether a decline below fair value is credit-related. Relevant facts and circumstances include but are not limited to: (1) the extent to which the fair value is less than amortized cost; (2) changes in agency credit ratings, (3) adverse conditions related to the security’s industry or geographical area, (4) failure to make scheduled payments, and (5) other known changes in the financial condition of the issuer or quality of any underlying collateral or credit enhancements. For structured AFS securities meeting the definition of beneficial interests, the qualitative assessment is bypassed, and any securities having experienced a decline in fair value below amortized cost move directly to a quantitative analysis. If upon completion of this analysis it is determined that a potential credit loss exists, an allowance for expected credit losses is established equal to the amount by which the present value of expected cash flows is less than amortized cost, limited by the amount by which fair value is less than amortized cost. A non-structured security’s cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or the disposition of assets using security-specific facts and circumstances including timing, security interests and loss severity. A structured security’s cash flow estimates are based on security-specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity, prepayments and structural support, including subordination and guarantees. The expected cash flows are discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete a structured security. For securities with a contractual interest rate that varies based on changes in an independent factor, such as an index or rate, the effective interest rate is calculated based on the factor as it changes over the life of the security. Inherently under the discounted cash flow model, both the timing and amount of cash flows affect the measurement of the allowance for expected credit losses. The allowance for expected credit losses is remeasured each period for the passage of time, any change in expected cash flows, and changes in the fair value of the security. All impairments, whether intent or requirement to sell or credit-related, are recorded through a charge to credit loss expense within investment related gains (losses) on the condensed consolidated statements of income. All changes in the allowance for expected credit losses are recorded through credit loss expense within investment related gains (losses) on the condensed consolidated statements of income. We have elected to present accrued interest receivable separately in accrued investment income on the condensed consolidated balance sheets. We have also elected the practical expedient to exclude the accrued interest receivable from the amortized cost balance used to calculate the allowance for expected credit losses, as we have a policy to write off such balances in a timely manner, when they become 90 days past due. Any write-off of accrued interest is recorded through a reversal of net investment income on the condensed consolidated statements of income. Upon determining that all or a portion of the amortized cost of an asset is uncollectible, which is generally when all efforts for collection are exhausted, the amortized cost is written off against the existing allowance. Any write off in excess of the existing allowance is recorded through credit loss expense within investment related gains (losses) on the condensed consolidated statements of income. Adopted Accounting Pronouncements Financial Instruments – Credit Losses (ASU 2019-05, ASU 2019-04, ASU 2018-19 and ASU 2016-13 This update limits the number of credit impairment models used for different assets and results in accelerated credit loss recognition on assets held at amortized cost, which primarily includes our commercial and residential mortgage loans, but also includes certain other loans and reinsurance assets. The identification of PCD financial assets includes all assets that have experienced a more-than-insignificant deterioration in credit since origination. Additionally, changes in the expected cash flows of purchased credit-deteriorated financial assets are recognized immediately in the income statement. AFS securities are not in scope of the new credit loss model, but were subject to targeted improvements including the establishment of a valuation allowance for credit losses versus the previous direct write down approach. We adopted this update effective January 1, 2020 with a cumulative-effect adjustment that decreased retained earnings by $117 million net of tax and offsetting impacts to DAC, DSI, VOBA and the SOP 03-1 reserve. The adjustment to retained earnings primarily relates to the establishment of an allowance on our commercial mortgage loan portfolio, which represented 1.59% of the amortized cost of the portfolio, but also includes immaterial impacts relating to other assets in scope, including residential mortgage loans, funds withheld at interest, and reinsurance recoverable. Additionally, the update requires investments previously considered purchased credit impaired (PCI), which includes certain of our residential mortgage loans and RMBS to become subject to a modified PCD framework at the transition date. Any required allowance at transition for these assets is to be recorded through a gross-up of the amortized cost, rather than a charge to retained earnings. Additionally, under the AFS impairment model, the recording of an allowance is prohibited in instances where fair value exceeds amortized cost as such securities are not considered impaired under the AFS impairment model. Therefore, no allowance was recorded at transition for PCI RMBS that were in an unrealized gain position. The transition increase of amortized cost and corresponding valuation allowance for residential mortgage loans and RMBS was $36 million and $17 million, respectively. 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. We adopted this update effective January 1, 2020. This update did not have a material effect 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 adopted this update effective January 1, 2020. The adoption of this update did not have a material effect 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 adopted this update on a prospective basis effective January 1, 2020. This update did not have a material effect 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. On October 1, 2018, we early adopted the removal and modification of certain disclosures as permitted. The additional disclosures in the update were adopted effective January 1, 2020. The adoption of this update did not have a material effect 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 is 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 continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. We do not have material goodwill and adopted this update on a prospective basis effective January 1, 2020. The adoption of this update did not have a material effect on our consolidated financial statements. Recently Issued Accounting Pronouncements Codification Improvements to Subtopic 310-20, Receivables–Nonrefundable Fees and Other Costs (ASU 2020-08) The amendments in this update clarify that callable debt securities should be reevaluated each reporting period to determine if the amortized cost exceeds the amount repayable by the issuer at the next earliest call date and, if so, the excess should be amortized to the next call date. We will be required to adopt this update January 1, 2021 and apply it on a prospective basis for existing or newly purchased callable debt securities. Early adoption is not permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts (ASU 2019-09, ASU 2018-12) These updates amend 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 used 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 our 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. While we are currently required to adopt these updates on January 1, 2022, the Financial Accounting Standards Board has proposed a deferral to the adoption date, which, if codified, would require adoption on January 1, 2023. 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. Income Taxes – Simplifying the Accounting for Income Taxes (ASU 2019-12) The amendments in this update simplify the accounting for income taxes by eliminating certain exceptions to the tax accounting guidance related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities related to foreign investment ownership changes. It also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill and allocating consolidated income taxes to separate financial statements of entities not subject to income tax. We will be required to adopt this update January 1, 2021 and apply certain aspects of the update retrospectively while other aspects will be applied on a modified retrospective basis. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2020security | |
Schedule of Investments [Abstract] | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 1,748 |
Investments | 2. Investments AFS Securities — Our AFS investment portfolio includes bonds, collateralized loan obligations (CLO), asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), RMBS and redeemable preferred stock. Our AFS investment portfolio includes related party investments that are primarily comprised of investments over which 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, allowance for credit losses, gross unrealized gains and losses and fair value of our AFS investments by asset type: September 30, 2020 (In millions) Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS securities US government and agencies $ 71 $ — $ 2 $ — $ 73 US state, municipal and political subdivisions 765 — 163 (1) 927 Foreign governments 311 — 29 — 340 Corporate 46,424 (30) 5,094 (359) 51,129 CLO 8,621 (1) 68 (318) 8,370 ABS 4,255 (3) 136 (188) 4,200 CMBS 2,279 (19) 68 (89) 2,239 RMBS 6,434 (87) 397 (34) 6,710 Total AFS securities 69,160 (140) 5,957 (989) 73,988 AFS securities – related party Corporate 780 — 4 — 784 CLO 1,365 (2) 11 (30) 1,344 ABS 2,716 — 62 (49) 2,729 Total AFS securities – related party 4,861 (2) 77 (79) 4,857 Total AFS securities including related party $ 74,021 $ (142) $ 6,034 $ (1,068) $ 78,845 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: December 31, 2019 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI AFS securities US government and agencies $ 35 $ 1 $ — $ 36 $ — US state, municipal and political subdivisions 1,322 220 (1) 1,541 — Foreign governments 298 29 — 327 — Corporate 44,106 3,332 (210) 47,228 1 CLO 7,524 21 (196) 7,349 — ABS 5,018 124 (24) 5,118 4 CMBS 2,304 104 (8) 2,400 1 RMBS 6,872 513 (10) 7,375 19 Total AFS securities 67,479 4,344 (449) 71,374 25 AFS securities – related party Corporate 18 1 — 19 — CLO 951 3 (18) 936 — ABS 2,814 37 (2) 2,849 — Total AFS securities – related party 3,783 41 (20) 3,804 — Total AFS securities including related party $ 71,262 $ 4,385 $ (469) $ 75,178 $ 25 The amortized cost and fair value of AFS securities, including related party, are shown by contractual maturity below: September 30, 2020 (In millions) Amortized Cost Fair Value AFS securities Due in one year or less $ 876 $ 885 Due after one year through five years 7,209 7,636 Due after five years through ten years 11,799 12,771 Due after ten years 27,687 31,177 CLO, ABS, CMBS and RMBS 21,589 21,519 Total AFS securities 69,160 73,988 AFS securities – related party Due after one year through five years 34 36 Due after ten years 746 748 CLO and ABS 4,081 4,073 Total AFS securities – related party 4,861 4,857 Total AFS securities including related party $ 74,021 $ 78,845 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, for which an allowance for credit losses has not been recorded, aggregated by asset type and length of time the fair value has remained below amortized cost: September 30, 2020 Less than 12 months 12 months or more Total (In millions) Fair Value Gross Fair Value Gross Fair Value Gross AFS securities US government and agencies $ 9 $ — $ — $ — $ 9 $ — US state, municipal and political subdivisions 50 — 8 (1) 58 (1) Foreign governments 4 — — — 4 — Corporate 5,899 (248) 414 (57) 6,313 (305) CLO 2,475 (73) 3,118 (232) 5,593 (305) ABS 1,238 (130) 82 (26) 1,320 (156) CMBS 685 (60) 23 (20) 708 (80) RMBS 540 (16) 25 (1) 565 (17) Total AFS securities 10,900 (527) 3,670 (337) 14,570 (864) AFS securities – related party CLO 766 (15) 232 (15) 998 (30) ABS 1,534 (49) — — 1,534 (49) Total AFS securities – related party 2,300 (64) 232 (15) 2,532 (79) Total AFS securities including related party $ 13,200 $ (591) $ 3,902 $ (352) $ 17,102 $ (943) The following summarizes the fair value and gross unrealized losses for AFS securities, including related party, aggregated by asset type and length of time the fair value has remained below amortized cost: December 31, 2019 Less than 12 months 12 months or more Total (In millions) Fair Value Gross Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS securities US government and agencies $ 3 $ — $ — $ — $ 3 $ — US state, municipal and political subdivisions 78 (1) 10 — 88 (1) Corporate 2,898 (140) 902 (70) 3,800 (210) CLO 1,959 (38) 3,241 (158) 5,200 (196) ABS 642 (6) 255 (18) 897 (24) CMBS 220 (4) 41 (4) 261 (8) RMBS 445 (6) 163 (4) 608 (10) Total AFS securities 6,245 (195) 4,612 (254) 10,857 (449) AFS securities – related party CLO 362 (7) 242 (11) 604 (18) ABS 357 (2) — — 357 (2) Total AFS securities – related party 719 (9) 242 (11) 961 (20) Total AFS securities including related party $ 6,964 $ (204) $ 4,854 $ (265) $ 11,818 $ (469) As of September 30, 2020, we held 1,748 AFS securities that were in an unrealized loss position. Of this total, 353 were in an unrealized loss position 12 months or more. As of September 30, 2020, we held 60 related party AFS securities that were in an unrealized loss position. Of this total, nine 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. Allowance for Credit Losses — The following table summarizes the activity in the allowance for credit losses for AFS securities by asset type: Three months ended September 30, 2020 Additions Reductions (In millions) Beginning balance Initial credit losses Initial credit losses on PCD securities Securities sold during the period Additions (reductions) to previously impaired securities Ending Balance AFS securities Corporate $ 31 $ 1 $ — $ (2) $ — $ 30 CLO 1 — — — — 1 ABS 2 — — — 1 3 CMBS 10 12 — (1) (2) 19 RMBS 129 2 — (12) (32) 87 Total AFS securities 173 15 — (15) (33) 140 AFS securities – related party CLO 2 1 — (1) — 2 Total AFS securities – related party 2 1 — (1) — 2 Total AFS securities including related party $ 175 $ 16 $ — $ (16) $ (33) $ 142 Nine months ended September 30, 2020 Additions Reductions (In millions) Beginning balance Initial credit losses Initial credit losses on PCD securities Securities sold during the period Additions (reductions) to previously impaired securities Ending Balance AFS securities Corporate $ — $ 32 $ — $ (2) $ — $ 30 CLO — 1 — — — 1 ABS — 5 — — (2) 3 CMBS — 21 — (1) (1) 19 RMBS 17 50 61 (14) (27) 87 Total AFS securities 17 109 61 (17) (30) 140 AFS securities – related party CLO — 2 — (1) 1 2 Total AFS securities – related party — 2 — (1) 1 2 Total AFS securities including related party $ 17 $ 111 $ 61 $ (18) $ (29) $ 142 Net Investment Income —Net investment income by asset class consists of the following: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 AFS securities $ 776 $ 760 $ 2,403 $ 2,276 Trading securities 47 48 137 139 Equity securities 4 4 10 11 Mortgage loans 184 173 545 483 Investment funds 148 96 242 245 Funds withheld at interest 81 106 165 403 Other 83 32 158 116 Investment revenue 1,323 1,219 3,660 3,673 Investment expenses (114) (129) (370) (319) Net investment income $ 1,209 $ 1,090 $ 3,290 $ 3,354 Investment Related Gains (Losses) —Investment related gains (losses) by asset class consists of the following: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 AFS securities Gross realized gains on investment activity $ 192 $ 47 $ 424 $ 120 Gross realized losses on investment activity (178) (21) (378) (38) Net realized investment gains on AFS securities 14 26 46 82 Net recognized investment gains (losses) on trading securities 24 48 (8) 183 Net recognized investment gains (losses) on equity securities 12 (4) (8) 15 Derivative gains 1,648 620 959 3,493 Provision for credit losses 84 — (205) — Other gains (losses) 15 (25) (11) (19) Investment related gains (losses) $ 1,797 $ 665 $ 773 $ 3,754 Proceeds from sales of AFS securities were $3,940 million and $852 million for the three months ended September 30, 2020 and 2019, respectively, and $7,525 million and $4,063 million for the nine months ended September 30, 2020 and 2019, respectively. The following table summarizes the change in unrealized gains (losses) on trading and equity securities we held as of the respective period end: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Trading securities $ 19 $ 46 $ 81 $ 215 Trading securities – related party 1 4 (42) (11) Equity securities 11 — (9) 20 Equity securities – related party — — — (2) Purchased Financial Assets with Credit Deterioration —The following table summarizes our PCD investment purchases with the following amounts at the time of purchase: Three months ended September 30, 2020 Nine months ended September 30, 2020 (In millions) Fixed maturity securities Mortgage loans Fixed maturity securities Mortgage loans Purchase price $ — $ 142 $ 239 $ 142 Allowance for credit losses at acquisition — 3 61 3 Discount (premiums) attributable to other factors — — 34 — Par value $ — $ 145 $ 334 $ 145 Repurchase Agreements— The following table summarizes the maturities of our repurchase agreements: September 30, 2020 Remaining Contractual Maturity (In millions) Overnight and continuous Less than 30 days 30-90 days 91 days – 1 year Greater than 1 year Total Payables for repurchase agreements 1 $ — $ 500 $ — $ — $ 598 $ 1,098 1 Included in payables for collateral on derivatives and securities to repurchase on the condensed consolidated balance sheets. December 31, 2019 Remaining Contractual Maturity (In millions) Overnight and continuous Less than 30 days 30-90 days 91 days – 1 year Greater than 1 year Total Payables for repurchase agreements 1 $ — $ 102 $ 200 $ 210 $ — $ 512 1 Included in payables for collateral on derivatives and securities to repurchase on the condensed consolidated balance sheets. The following table summarizes the securities pledged as collateral for repurchase agreements: September 30, 2020 December 31, 2019 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value AFS securities – Corporate $ 1,085 $ 1,249 $ 498 $ 534 Reverse Repurchase Agreements — Reverse repurchase agreements represent the purchase of investments from a seller with the agreement that the investments will be repurchased by the seller at a specified price and date or within a specified period of time. The investments purchased, which represent collateral on a secured lending arrangement, are not reflected in our condensed consolidated balance sheets; however, the secured lending arrangement is recorded as a short-term investment for the principal amount loaned under the agreement. As of September 30, 2020 and December 31, 2019, amounts loaned under reverse repurchase agreements were $0 million and $190 million, respectively, and collateral backing the agreement was $0 million and $630 million, respectively. Other Investments — Other investments includes, but is not limited to, term loans collateralized by mortgages on residential and commercial real estate. Mortgage collateralized term loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, and net of allowance for credit losses. Interest income is accrued on the principal amount of the loan based on its contractual interest rate. We record amortization of premiums and discounts using the effective interest method and contractual cash flows on the underlying loan. We accrue interest on loans until it is probable we will not receive interest or the loan is 90 day past due. Interest income, amortization of premiums and discounts, and prepayment and other fees are reported in net investment income on the consolidated statements of income. Mortgage Loans, including related party —Mortgage loans, net of allowances, consists of the following: (In millions) September 30, 2020 December 31, 2019 Commercial mortgage loans $ 11,194 $ 10,422 Commercial mortgage loans under development 196 93 Total commercial mortgage loans 11,390 10,515 Allowance for credit losses on commercial mortgage loans (232) (10) Commercial mortgage loans, net of allowances 11,158 10,505 Residential mortgage loans 4,169 4,455 Allowance for credit losses on residential mortgage loans (96) (1) Residential mortgage loans, net of allowances 4,073 4,454 Mortgage loans, net of allowances $ 15,231 $ 14,959 We primarily invest in commercial mortgage loans on income producing properties including office and retail buildings, apartments, hotels and industrial properties. 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 allowances, by property type and geographic region, is as follows: September 30, 2020 December 31, 2019 (In millions, except for percentages) Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total Property type Office building $ 3,526 31.6 % $ 2,899 27.6 % Retail 2,029 18.2 % 2,182 20.8 % Apartment 2,335 20.9 % 2,142 20.4 % Hotels 1,182 10.6 % 1,104 10.5 % Industrial 1,407 12.6 % 1,448 13.8 % Other commercial 679 6.1 % 730 6.9 % Total commercial mortgage loans $ 11,158 100.0 % $ 10,505 100.0 % US Region East North Central $ 1,176 10.5 % $ 1,036 9.9 % East South Central 404 3.6 % 428 4.1 % Middle Atlantic 3,058 27.4 % 2,580 24.6 % Mountain 482 4.3 % 528 5.0 % New England 330 3.0 % 340 3.2 % Pacific 2,577 23.1 % 2,502 23.8 % South Atlantic 1,848 16.6 % 1,920 18.3 % West North Central 147 1.3 % 146 1.4 % West South Central 642 5.8 % 791 7.5 % Total US Region 10,664 95.6 % 10,271 97.8 % International Region 494 4.4 % 234 2.2 % Total commercial mortgage loans $ 11,158 100.0 % $ 10,505 100.0 % Our residential mortgage loan portfolio includes first lien residential mortgage loans collateralized by properties in various geographic locations and is summarized by proportion of the portfolio in the following table: September 30, 2020 December 31, 2019 US States California 25.8 % 27.0 % Florida 13.2 % 12.7 % Texas 4.8 % 6.2 % New York 5.2 % 3.3 % Other 1 36.5 % 38.4 % Total US residential mortgage loan percentage 85.5 % 87.6 % International – Ireland 13.9 % 12.4 % International – Other 2 0.6 % — % 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. 2 Represents all other countries, with each individual country comprising less than 5% of the portfolio. Loan Valuation Allowance — The allowances for our mortgage loan portfolio and other loans is summarized as follows: Three months ended September 30, 2020 Nine months ended September 30, 2020 (In millions) Commercial Mortgage Residential Mortgage Other Investments Total Commercial Mortgage Residential Mortgage Other Investments Total Beginning balance $ 294 $ 85 $ 20 $ 399 $ 10 $ 1 $ — $ 11 Adoption of accounting standard — — — — 167 43 11 221 Provision (reversal) for expected credit losses (62) 8 (7) (61) 55 50 2 107 Initial credit losses on PCD loans — 3 — 3 — 3 — 3 Loans charged-off — — — — — (1) — (1) Ending balance $ 232 $ 96 $ 13 $ 341 $ 232 $ 96 $ 13 $ 341 Residential mortgage loans – Our allowance model for residential mortgage loans is based on the characteristics of the loans in our portfolio, historical economic data and loss information, and current and forecasted economic conditions. Key loan characteristics affecting the estimate include, among others: time to maturity, delinquency status, original credit scores and loan-to-value ratios. Key macroeconomic variables include unemployment rates and the housing price index. Management reviews and approves forecasted macroeconomic variables, along with the reasonable and supportable forecast period and mean reversion technique. Management also evaluates assumptions from independent third parties and these assumptions have a high degree of subjectivity. The mean reversion technique varies by macroeconomic variable and may vary by geographic location. As of September 30, 2020, our reasonable and supportable forecast period was one year, after which, we revert to the 30-year or greater historical average over a period of up to one year and then continue at those averages through the contractual life of the loan. Commercial mortgage loans – Our allowance model for commercial mortgage loans is based on the characteristics of the loans in our portfolio, historical economic data and loss information, and current and forecasted economic conditions. Key loan characteristics affecting the estimate include, among others: time to maturity, delinquency status, loan-to-value ratios, debt service coverage ratios, etc. Key macroeconomic variables include unemployment rates, rent growth, capitalization rates, and the housing price index. Management reviews and approves forecasted macroeconomic variables, along with the reasonable and supportable forecast period and mean reversion technique. Management also evaluates assumptions from independent third parties and these assumptions have a high degree of subjectivity. The mean reversion technique varies by macroeconomic variable and may vary by geographic location. As of September 30, 2020, our reasonable and supportable forecast period ranged from one year to two years, after which, we revert to the 30-year or greater historical average over a period of up to eight years. Other investments – The allowance model for the loans included in other investments and related party other investments derives an estimate based on historical loss data available for similarly rated unsecured corporate debt obligations, while also incorporating management’s expectations around prepayment. See Note 11 – Related Parties for further information on the related party loans. Credit Quality Indicators Residential mortgage loans – The underwriting process for our residential mortgage loans includes an evaluation of relevant credit information including past loan performance, credit scores, loan-to-value and other relevant information. Subsequent to purchase or origination, we closely monitor economic conditions and loan performance to manage and evaluate our exposure to credit risk in our residential mortgage loan portfolio. The primary credit quality indicator monitored for residential mortgage loans is loan performance. Nonperforming residential mortgage loans are 90 days or more past due and/or are in non-accrual status. The following represents our residential loan portfolio by origination year and performance status: September 30, 2020 (In millions) 2020 2019 2018 2017 2016 Prior Total Current (less than 30 days past due) $ 384 $ 1,016 $ 1,852 $ 507 $ 144 $ 7 $ 3,910 30 to 59 days past due 23 20 35 39 8 — 125 60 to 89 days past due 6 11 21 9 6 — 53 Over 90 days past due 1 12 21 32 13 2 81 Total residential mortgages $ 414 $ 1,059 $ 1,929 $ 587 $ 171 $ 9 $ 4,169 As of December 31, 2019, $67 million of our residential mortgage loans were nonperforming. The following represents our residential loan portfolio in non-accrual status: (In millions) September 30, 2020 Beginning amortized cost of residential mortgage loans in non-accrual status $ 67 Ending amortized cost of residential mortgage loans in non-accrual status 81 Amortized cost of residential mortgage loans in non-accrual status without a related allowance for credit losses 8 During the three months and nine months ended September 30, 2020, we recognized $2 million and $3 million, respectively, of interest income on residential mortgage loans in non-accrual status. Commercial mortgage loans – The following represents our commercial mortgage loan portfolio by origination year and loan performance status: September 30, 2020 (In millions) 2020 2019 2018 2017 2016 Prior Total Current (less than 30 days past due) $ 1,398 $ 4,399 $ 2,750 $ 1,047 $ 131 $ 1,546 $ 11,271 30 to 59 days past due 98 — — — — — 98 60 to 89 days past due — — — — — 21 21 Total commercial mortgages $ 1,496 $ 4,399 $ 2,750 $ 1,047 $ 131 $ 1,567 $ 11,390 As of December 31, 2019, none of our commercial loans were 30 days or more past due. The following represents our commercial mortgage loan portfolio in non-accrual status: (In millions) September 30, 2020 Beginning amortized cost of commercial mortgage loans in non-accrual status $ — Ending amortized cost of commercial mortgage loans in non-accrual status 39 Amortized cost of commercial mortgage loans in non-accrual status without a related allowance for credit losses — During the three months and nine months ended September 30, 2020, no interest income was recognized on commercial mortgage loans in non-accrual status. 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 value of the underlying collateral. Loan-to-value information is updated annually as part of the re-underwriting process supporting the NAIC risk based capital rating criteria. The following represents the loan-to-value ratio of the commercial mortgage loan portfolio, excluding those under development, by origination year: September 30, 2020 (In millions) 2020 2019 2018 2017 2016 Prior Total Less than 50% $ 282 $ 611 $ 207 $ 200 $ 45 $ 1,250 $ 2,595 50% to 60% 249 1,215 733 277 40 162 2,676 61% to 70% 539 1,978 1,430 475 46 71 4,539 71% to 80% 331 574 287 95 — 45 1,332 81% to 100% 13 — — — — — 13 Greater than 100% — — — — — 39 39 Commercial mortgage loans $ 1,414 $ 4,378 $ 2,657 $ 1,047 $ 131 $ 1,567 $ 11,194 The following represents the loan-to-value ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances: (In millions) December 31, 2019 Less than 50% $ 2,640 50% to 60% 2,486 61% to 70% 4,093 71% to 80% 1,162 81% to 100% 31 Commercial mortgage loans $ 10,412 The debt service coverage ratio 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. Debt service coverage ratios are updated as more recent financial statements become available, at least annually or as frequently as quarterly in some cases. The following represents the debt service coverage ratio of the commercial mortgage loan portfolio, excluding those under development, by origination year: September 30, 2020 (In millions) 2020 2019 2018 2017 2016 Prior Total Greater than 1.20x $ 1,039 $ 3,413 $ 2,657 $ 993 $ 130 $ 1,494 $ 9,726 1.00x – 1.20x 375 965 — 31 1 66 1,438 Less than 1.00x — — — 23 — 7 30 Commercial mortgage loans $ 1,414 $ 4,378 $ 2,657 $ 1,047 $ 131 $ 1,567 $ 11,194 The following represents the debt service coverage ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances: (In millions) December 31, 2019 Greater than 1.20x $ 9,212 1.00x – 1.20x 1,166 Less than 1.00x 34 Commercial mortgage loans $ 10,412 Investment Funds —Our investment fund portfolio consists of funds that employ various strategies and include investments in real estate, real assets, credit , equity and natural resources. 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: September 30, 2020 December 31, 2019 (In millions, except for percentages) Carrying value Percent of total Carrying value Percent of total Investment funds Real estate $ 290 40.2 % $ 277 36.9 % Credit funds 110 15.2 % 153 20.4 % Private equity 257 35.5 % 236 31.5 % Real assets 66 9.1 % 83 11.1 % Natural resources — — % 1 0.1 % Total investment funds 723 100.0 % 750 100.0 % Investment funds – related parties Differentiated investments MidCap FinCo Designated Activity Company (MidCap) 1 — — % 547 15.4 % AmeriHome Mortgage Company, LLC (AmeriHome) 2 666 13.9 % 487 13.7 % Catalina Holdings Ltd. (Catalina) 317 6.6 % 271 7.6 % Athora Holding Ltd. (Athora) 1 572 11.9 % 132 3.7 % Venerable Holdings, Inc. (Venerable) 1 108 2.2 % 99 2.8 % Other 272 5.7 % 222 6.3 % Total differentiated investments 1,935 40.3 % 1,758 49.5 % Real estate 686 14.3 % 853 24.0 % Credit funds 373 7.7 % 370 10.4 % Private equity 257 5.3 % 105 3.0 % Real assets 196 4.1 % 182 5.1 % Natural resources 101 2.1 % 163 4.6 % Public equities 62 1.3 % 119 3.4 % Investment in Apollo 1 1,198 24.9 % — — % Total investment funds – related parties 4,808 100.0 % 3,550 100.0 % Total investment funds including related party $ 5,531 $ 4,300 1 See further discussion on MidCap, Athora, Venerable and our investment in Apollo in Note 11 – Related Parties. 2 Our AmeriHome investment is held indirectly through A-A Mortgage Opportunities, L.P. (A-A Mortgage). See further discussion on A-A Mortgage and AmeriHome in Note 11 – Related Parties. Summarized Ownership of A-A Mortgage —The following is the summarized income statement information of our equity method investee, A-A Mortgage: Nine months ended September 30, (In millions) 2020 2019 Net income $ 334 $ 88 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: September 30, 2020 December 31, 2019 (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment funds $ 723 $ 1,183 $ 750 $ 1,265 Investment in related parties – investment funds 4,808 7,256 3,550 5,955 Investment in fixed maturity securities 21,930 22,000 22,694 22,170 Investment in related parties – fixed maturity securities 6,218 6,586 4,570 4,878 Investment in related parties – equity securities 50 50 58 58 Total non-consolidated investments $ 33,729 $ 37,075 $ 31,622 $ 34,326 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 3. Derivative Instruments We use a variety of derivative instruments to manage risks, primarily equity, interest rate, credit, foreign currency and market volatility. See Note 5 – Fair Value for information about the fair value hierarchy for derivatives. The following table presents the notional amount and fair value of derivative instruments: September 30, 2020 December 31, 2019 Notional Amount Fair Value Notional Amount Fair Value (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedges Foreign currency swaps 3,268 $ 243 $ 45 3,158 $ 113 $ 56 Foreign currency forwards 1,736 15 1 717 1 9 Foreign currency forwards on net investments 136 — 1 139 — 2 Total derivatives designated as hedges 258 47 114 67 Derivatives not designated as hedges Equity options 53,997 2,401 26 49,549 2,746 5 Futures 16 48 4 8 10 1 Total return swaps 72 1 — 106 6 — Foreign currency swaps 1,510 25 8 35 2 1 Interest rate swaps 911 11 41 776 3 4 Credit default swaps 10 — 5 10 — 3 Foreign currency forwards 2,963 27 16 1,924 7 16 Embedded derivatives Funds withheld including related party 1,980 50 1,395 31 Interest sensitive contract liabilities — 11,741 — 10,942 Total derivatives not designated as hedges 4,493 11,891 4,169 11,003 Total derivatives $ 4,751 $ 11,938 $ 4,283 $ 11,070 Derivatives Designated as Hedges Foreign currency swaps – We use foreign currency swaps to convert foreign currency denominated cash flows of an investment to US dollars to reduce cash flow fluctuations due to changes in currency exchange rates. Certain of these swaps are designated and accounted for as cash flow hedges, which will expire by December 2050. During the three months ended September 30, 2020 and 2019, we had foreign currency swap losses of $178 million and gains of $124 million , respectively, recorded in AOCI. During the nine months ended September 30, 2020 and 2019 , we had foreign currency swap gains of $140 million and $171 million, respectively, recorded in AOCI. There were no amounts reclassified to income and no amounts deemed ineffective during the nine months ended September 30, 2020 and 2019 . As of September 30, 2020, 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 are designated and accounted for as fair value hedges. As of September 30, 2020 and December 31, 2019, the carrying amount of the hedged AFS securities was $1,739 million and $456 million, respectively, and the cumulative amount of fair value hedging adjustments included in the hedged AFS securities included gains of $60 million and $1 million, respectively. The following is a summary of the gains (losses) related to the derivatives and related hedged items in fair value hedge relationships, which are included in investment related gains (losses) on the condensed consolidated statements of income: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Derivatives $ (52) $ 13 $ (60) $ 13 Related AFS securities 50 (11) 59 (12) Total gains (losses) on derivatives and related hedged items $ (2) $ 2 $ (1) $ 1 Foreign currency forwards on net investments – We have foreign currency forwards designated as net investment hedges. These forwards hedge the foreign currency exchange rate risk of our investments in subsidiaries that have a reporting currency other than the US dollar. We assess hedge effectiveness based on the changes in forward rates. During the three months and nine months ended September 30, 2020 , these derivatives had gains of $3 million and $5 million, respectively, which are included in foreign currency translation and other adjustments on the condensed consolidated statements of comprehensive income. As of September 30, 2020 and December 31, 2019, the cumulative foreign currency translation recorded in AOCI related to these net investment hedges were gains of $3 million and losses of $2 million, respectively. During the three and nine months ended September 30, 2020 , there were no amounts deemed ineffective. 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. 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 September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Equity options $ 606 $ 77 $ (303) $ 1,365 Futures 50 (3) 63 (17) Swaps 29 8 9 37 Foreign currency forwards (114) 42 (70) 47 Embedded derivatives on funds withheld 1,077 496 1,260 2,061 Amounts recognized in investment related gains (losses) 1,648 620 959 3,493 Embedded derivatives in indexed annuity products 1 (553) (265) (910) (1,920) Total gains (losses) on derivatives not designated as hedges $ 1,095 $ 355 $ 49 $ 1,573 1 Included in interest sensitive contract benefits on the condensed consolidated statements of income. 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 September 30, 2020 Derivative assets $ 2,771 $ (61) $ (2,564) $ 146 $ (41) $ 105 Derivative liabilities (147) 61 77 (9) — (9) December 31, 2019 Derivative assets $ 2,888 $ (67) $ (2,743) $ 78 $ (145) $ (67) Derivative liabilities (97) 67 31 1 — 1 1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the condensed consolidated balance sheets. As of September 30, 2020 and December 31, 2019, amounts not subject to master netting or similar agreements were immaterial. 2 Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the condensed consolidated balance sheets. 3 For non-cash collateral received, we do not recognize the collateral on our balance sheet unless the obligor (transferor) has defaulted under the terms of the secured contract and is no longer entitled to redeem the pledged asset. Amounts do not include any excess of collateral pledged or received. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 4. Variable Interest Entities VIE Deconsolidation —During the first quarter 2020, as a result of the Apollo Global Management, Inc. (AGM and, together with its subsidiaries, Apollo) share transaction discussed further in Note 11 – Related Parties , we reassessed the consolidation conclusions for the following VIEs, which are managed by Apollo affiliates: • AAA Investments (Co-Invest VI), L.P. (CoInvest VI); • AAA Investments (Co-Invest VII), L.P. (CoInvest VII); • AAA Investments (Other), L.P. (CoInvest Other); • Entities included under our agreement to purchase funds managed by Apollo entities (Strategic Partnership). Following the share transaction, we determined that we are no longer the primary beneficiary of these entities, as a result of Apollo receiving significant economics of these entities through their increased economic ownership in us. We did not recognize a gain or loss upon deconsolidation, as the deconsolidated VIEs accounted for their assets and liabilities at fair value. The investments remaining from the deconsolidated VIEs are included at net asset value (NAV) in related party investment funds on the condensed consolidated balance sheets after March 31, 2020. Commercial Mortgage Loan Securitization Trust —During the second quarter of 2020, we formed Hamlet Securitization Trust 2020-CRE1 (Hamlet) to securitize a portion of our commercial mortgage loan portfolio as CMBS securities, which are held by AHL subsidiaries and third-party cedant portfolios. Securitization of these commercial mortgage loans allows us to retain the full economics of these assets while being able to pledge these assets as collateral to the Federal Home Loan Bank (FHLB) under the funding agreement program. As substantially all of the activities and economics of Hamlet are conducted on our behalf, we are the primary beneficiary and consolidate Hamlet and the assets are included in mortgage loans on the condensed consolidated balance sheets. Additionally, as Hamlet is in the form of a trust, the commercial mortgage loan assets are included in the pledged assets and funds in trust table in Note 12 – Commitments and Contingencies . ALR Aircraft Investment Ireland Limited (ALR) —ALR was formed to invest in a joint venture that provides airplane lease financing to a major commercial airline. We were the only investor in the profit participating notes and, as substantially all of the activities of ALR were conducted on our behalf, we were the primary beneficiary and consolidated ALR. During the second quarter of 2020, we received final payment on the profit participating notes and no longer consolidate ALR. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 5. Fair Value Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. We determine fair value based on the following fair value hierarchy: Level 1 – Unadjusted quoted prices for identical assets or liabilities in an active market. Level 2 – Quoted prices for inactive markets or valuation techniques that require observable direct or indirect inputs for substantially the full term of the asset or liability. Level 2 inputs include the following: • Quoted prices for similar assets or liabilities in active markets, • Observable inputs other than quoted market prices, and • Observable inputs derived principally from market data through correlation or other means. Level 3 – Prices or valuation techniques with unobservable inputs significant to the overall fair value estimate. These valuations use critical assumptions not readily available to market participants. Level 3 valuations are based on market standard valuation methodologies, including discounted cash flows, matrix pricing or other similar techniques. 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: September 30, 2020 (In millions) Total NAV Level 1 Level 2 Level 3 Assets AFS securities US government and agencies $ 73 $ — $ 73 $ — $ — US state, municipal and political subdivisions 927 — — 893 34 Foreign governments 340 — — 339 1 Corporate 51,129 — — 50,229 900 CLO 8,370 — — 8,179 191 ABS 4,200 — — 3,221 979 CMBS 2,239 — — 2,169 70 RMBS 6,710 — — 6,710 — Total AFS securities 73,988 — 73 71,740 2,175 Trading securities US government and agencies 11 — 8 3 — US state, municipal and political subdivisions 115 — — 115 — Corporate 1,532 — — 1,526 6 CLO 3 — — — 3 ABS 119 — — 84 35 CMBS 52 — — 52 — RMBS 237 — — 178 59 Total trading securities 2,069 — 8 1,958 103 Equity securities 265 — 29 220 16 Mortgage loans 19 — — — 19 Investment funds 156 139 — — 17 Funds withheld at interest – embedded derivative 1,259 — — — 1,259 Derivative assets 2,771 — 48 2,723 — Short-term investments 165 — 45 110 10 Other investments 109 — — 109 — Cash and cash equivalents 7,548 — 7,548 — — Restricted cash 1,226 — 1,226 — — Investments in related parties AFS securities Corporate 784 — — 20 764 CLO 1,344 — — 1,333 11 ABS 2,729 — — 666 2,063 Total AFS securities – related party 4,857 — — 2,019 2,838 Trading securities CLO 52 — — 24 28 ABS 1,345 — — — 1,345 Total trading securities – related party 1,397 — — 24 1,373 Equity securities 50 — — — 50 Investment funds 1,850 80 — — 1,770 Funds withheld at interest – embedded derivative 721 — — — 721 Reinsurance recoverable 2,155 — — — 2,155 Total assets measured at fair value $ 100,605 $ 219 $ 8,977 $ 78,903 $ 12,506 (Continued) September 30, 2020 (In millions) Total NAV Level 1 Level 2 Level 3 Liabilities Interest sensitive contract liabilities Embedded derivative $ 11,741 $ — $ — $ — $ 11,741 Universal life benefits 1,363 — — — 1,363 Future policy benefits AmerUs Life Insurance Company (AmerUs) Closed Block 1,577 — — — 1,577 Indianapolis Life Insurance Company (ILICO) Closed Block and life benefits 777 — — — 777 Derivative liabilities 147 — 5 137 5 Funds withheld liability – embedded derivative 50 — — 50 — Total liabilities measured at fair value $ 15,655 $ — $ 5 $ 187 $ 15,463 (Concluded) December 31, 2019 (In millions) Total NAV Level 1 Level 2 Level 3 Assets AFS securities US government and agencies $ 36 $ — $ 36 $ — $ — US state, municipal and political subdivisions 1,541 — — 1,501 40 Foreign governments 327 — — 327 — Corporate 47,228 — — 46,503 725 CLO 7,349 — — 7,228 121 ABS 5,118 — — 3,744 1,374 CMBS 2,400 — — 2,354 46 RMBS 7,375 — — 7,375 — Total AFS securities 71,374 — 36 69,032 2,306 Trading securities US government and agencies 11 — 8 3 — US state, municipal and political subdivisions 135 — — 135 — Corporate 1,456 — — 1,456 — CLO 6 — — — 6 ABS 108 — — 92 16 CMBS 51 — — 51 — RMBS 303 — — 251 52 Total trading securities 2,070 — 8 1,988 74 Equity securities 247 — 43 201 3 Mortgage loans 27 — — — 27 Investment funds 154 132 — — 22 Funds withheld at interest – embedded derivative 801 — — — 801 Derivative assets 2,888 — 10 2,878 — Short-term investments 406 — 46 319 41 Other investments 93 — — 93 — Cash and cash equivalents 4,240 — 4,240 — — Restricted cash 402 — 402 — — (Continued) December 31, 2019 (In millions) Total NAV Level 1 Level 2 Level 3 Investments in related parties AFS securities Corporate 19 — — 19 — CLO 936 — — 936 — ABS 2,849 — — 525 2,324 Total AFS securities – related party 3,804 — — 1,480 2,324 Trading securities CLO 74 — — 36 38 ABS 711 — — — 711 Total trading securities – related party 785 — — 36 749 Equity securities 64 — — — 64 Investment funds 819 687 — — 132 Funds withheld at interest – embedded derivative 594 — — — 594 Reinsurance recoverable 1,821 — — — 1,821 Total assets measured at fair value $ 90,589 $ 819 $ 4,785 $ 76,027 $ 8,958 Liabilities Interest sensitive contract liabilities Embedded derivative $ 10,942 $ — $ — $ — $ 10,942 Universal life benefits 1,050 — — — 1,050 Future policy benefits AmerUs Closed Block 1,546 — — — 1,546 ILICO Closed Block and life benefits 755 — — — 755 Derivative liabilities 97 — 1 93 3 Funds withheld liability – embedded derivative 31 — — 31 — Total liabilities measured at fair value $ 14,421 $ — $ 1 $ 124 $ 14,296 (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 US and non-US corporate bonds, US 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 at interest 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 modco and 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: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Trading securities $ 24 $ 48 $ (8) $ 183 Mortgage loans — — — 1 Investment funds (57) 3 109 3 Future policy benefits (4) (37) (31) (129) Total gains (losses) $ (37) $ 14 $ 70 $ 58 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) September 30, 2020 December 31, 2019 Unpaid principal balance $ 17 $ 25 Mark to fair value 2 2 Fair value $ 19 $ 27 There were no fair value option mortgage loans 90 days or more past due as of September 30, 2020 and December 31, 2019. Level 3 Financial Instruments — The following tables are reconciliations for all Level 3 assets and liabilities measured at fair value on a recurring basis. All transfers in and out of Level 3 are based on changes in the availability of pricing sources, as described in the valuation methods above. Three months ended September 30, 2020 Total realized and unrealized gains (losses) (In millions) Beginning balance Included in income Included in OCI Net purchases, issuances, sales and settlements Net transfers in (out) Ending balance Total gains (losses) included in earnings 1 Total gains (losses) included in OCI 1 Assets AFS securities US state, municipal and political subdivisions $ 40 $ — $ (1) $ (5) $ — $ 34 $ — $ (1) Foreign governments — — — 1 — 1 — — Corporate 874 (26) 62 39 (49) 900 — 75 CLO 160 — 2 (7) 36 191 — 2 ABS 868 (4) 12 (44) 147 979 — 13 CMBS 49 — 5 — 16 70 — 5 RMBS 16 — 2 (2) (16) — — — Trading securities Corporate 6 — — — — 6 — — CLO 3 — — — — 3 — — ABS — — — 35 — 35 — — RMBS 55 (3) — — 7 59 — — Equity securities 6 — — 10 — 16 2 — Mortgage loans 25 — — (6) — 19 — — Investment funds 17 — — — — 17 — — Funds withheld at interest – embedded derivative 763 496 — — — 1,259 — — Short-term investments 114 — — (16) (88) 10 — — Investments in related parties AFS securities Corporate — 1 2 761 — 764 — 2 CLO — — — 11 — 11 — — ABS 2,061 8 25 (31) — 2,063 — 25 Trading securities CLO 45 3 — — (20) 28 3 — ABS 824 14 — 507 — 1,345 13 — Equity securities 52 — — (2) — 50 1 — Investment funds 1,810 (56) — 16 — 1,770 — — Funds withheld at interest – embedded derivative 560 161 — — — 721 — — Reinsurance recoverable 2,099 56 — — — 2,155 — — Total Level 3 assets $ 10,447 $ 650 $ 109 $ 1,267 $ 33 $ 12,506 $ 19 $ 121 Liabilities Interest sensitive contract liabilities Embedded derivative $ (11,140) $ (553) $ — $ (48) $ — $ (11,741) $ — $ — Universal life benefits (1,323) (40) — — — (1,363) — — Future policy benefits AmerUs Closed Block (1,573) (4) — — — (1,577) — — ILICO Closed Block and life benefits (761) (16) — — — (777) — — Derivative liabilities (5) — — — — (5) — — Total Level 3 liabilities $ (14,802) $ (613) $ — $ (48) $ — $ (15,463) $ — $ — 1 Related to instruments held at end of period. Three months ended September 30, 2019 Total realized and unrealized gains (losses) (In millions) Beginning balance Included in income Included in OCI Net purchases, issuances, sales and settlements Net transfers in (out) Ending balance Total gains (losses) included in earnings 1 Assets AFS securities US state, municipal and political subdivisions $ 40 $ — $ — $ — $ — $ 40 $ — Corporate 821 (3) 10 189 (70) 947 — CLO 200 — 1 34 (104) 131 — ABS 1,396 1 12 16 (137) 1,288 — CMBS 206 — 3 195 (73) 331 — Trading securities Corporate 6 — — — (6) — — CLO 7 (1) — — — 6 — ABS 6 — — (1) 78 83 — RMBS 46 (5) — 15 35 91 (2) Equity securities 3 — — — (2) 1 — Mortgage loans 32 — — (4) — 28 — Investment funds 25 (1) — (2) — 22 (1) Funds withheld at interest – embedded derivative 704 100 — — — 804 — Short-term investments 45 — — 181 — 226 — Investments in related parties AFS securities CLO 37 — — — (37) — — ABS 399 — 8 587 — 994 — Trading securities CLO 95 (5) — (7) (23) 60 — ABS 218 4 — 2 — 224 5 Equity securities 350 6 — 31 — 387 — Investment funds 141 (1) — — — 140 1 Funds withheld at interest – embedded derivative 501 154 — — — 655 — Reinsurance recoverable 1,834 120 — — — 1,954 — Total Level 3 assets $ 7,112 $ 369 $ 34 $ 1,236 $ (339) $ 8,412 $ 3 Liabilities Interest sensitive contract liabilities Embedded derivative $ (9,905) $ (265) $ — $ (103) $ — $ (10,273) $ — Universal life benefits (1,051) (91) — — — (1,142) — Future policy benefits AmerUs Closed Block (1,535) (37) — — — (1,572) — ILICO Closed Block and life benefits (769) (28) — — — (797) — Derivative liabilities (4) — — — — (4) — Total Level 3 liabilities $ (13,264) $ (421) $ — $ (103) $ — $ (13,788) $ — 1 Related to instruments held at end of period. Nine months ended September 30, 2020 Total realized and unrealized gains (losses) (In millions) Beginning balance Included in income Included in OCI Net purchases, issuances, sales and settlements Net transfers in (out) Ending balance Total gains (losses) included in income 1 Total gains (losses) included in OCI 1 Assets AFS securities US state, municipal and political subdivisions $ 40 $ — $ — $ (6) $ — $ 34 $ — $ — Foreign governments — — — 1 — 1 — — Corporate 725 1 (1) 118 57 900 — (1) CLO 121 — — 56 14 191 — — ABS 1,374 19 (71) (301) (42) 979 — (69) CMBS 46 (5) (5) (5) 39 70 — (5) Trading securities Corporate — — — — 6 6 — — CLO 6 (3) — — — 3 (1) — ABS 16 — — 19 — 35 — — RMBS 52 (4) — — 11 59 5 — Equity securities 3 3 — 10 — 16 3 — Mortgage loans 27 — — (8) — 19 — — Investment funds 22 (5) — — — 17 (4) — Funds withheld at interest – embedded derivative 801 458 — — — 1,259 — — Short-term investments 41 — — (31) — 10 — — Investments in related parties AFS securities Corporate — 1 2 761 — 764 — 2 CLO — — — 11 — 11 — — ABS 2,324 9 (20) (85) (165) 2,063 — (20) Trading securities CLO 38 (11) — 1 — 28 (11) — ABS 711 (13) — 647 — 1,345 (14) — Equity securities 64 (5) — (3) (6) 50 (5) — Investment funds 132 113 — 1,525 — 1,770 113 — Funds withheld at interest – embedded derivative 594 127 — — — 721 — — Reinsurance recoverable 1,821 334 — — — 2,155 — — Total Level 3 assets $ 8,958 $ 1,019 $ (95) $ 2,710 $ (86) $ 12,506 $ 86 $ (93) Liabilities Interest sensitive contract liabilities Embedded derivative $ (10,942) $ (910) $ — $ 111 $ — $ (11,741) $ — $ — Universal life benefits (1,050) (313) — — — (1,363) — — Future policy benefits AmerUs Closed Block (1,546) (31) — — — (1,577) — — ILICO Closed Block and life benefits (755) (22) — — — (777) — — Derivative liabilities (3) (2) — — — (5) (2) — Total Level 3 liabilities $ (14,296) $ (1,278) $ — $ 111 $ — $ (15,463) $ (2) $ — 1 Related to instruments held at end of period. Nine months ended September 30, 2019 Total realized and unrealized gains (losses) (In millions) Beginning balance Included in income Included in OCI Net purchases, issuances, sales and settlements Net transfers in (out) Ending balance Total gains (losses) included in earnings 1 Assets AFS securities US state, municipal and political subdivisions $ — $ — $ — $ 40 $ — $ 40 $ — Corporate 898 (2) 20 164 (133) 947 — CLO 107 — 3 60 (39) 131 — ABS 1,615 6 43 43 (419) 1,288 — CMBS 187 1 7 154 (18) 331 — RMBS 56 — 4 2 (62) — — Trading securities CLO 1 (1) — — 6 6 6 ABS — — — 5 78 83 — RMBS 134 (13) — 15 (45) 91 3 Equity securities 3 — — — (2) 1 — Mortgage loans 32 1 — (5) — 28 1 Investment funds 29 (2) — (5) — 22 (2) Funds withheld at interest – embedded derivative 57 747 — — — 804 — Short-term investments — — — 226 — 226 — Investments in related parties AFS securities, ABS 328 — 21 748 (103) 994 — Trading securities CLO 113 (7) — (54) 8 60 2 ABS 149 (13) — (15) 103 224 (13) Equity securities 133 15 — 239 — 387 (2) Investment funds 120 1 — 19 — 140 3 Funds withheld at interest – embedded derivative (110) 765 — — — 655 — Reinsurance recoverable 1,676 278 — — — 1,954 — Total Level 3 assets $ 5,528 $ 1,776 $ 98 $ 1,636 $ (626) $ 8,412 $ (2) Liabilities Interest sensitive contract liabilities Embedded derivative $ (7,969) $ (1,920) $ — $ (384) $ — $ (10,273) $ — Universal life benefits (932) (210) — — — (1,142) — Future policy benefits AmerUs Closed Block (1,443) (129) — — — (1,572) — ILICO Closed Block and life benefits (730) (67) — — — (797) — Derivative liabilities (4) — — — — (4) — Total Level 3 liabilities $ (11,078) $ (2,326) $ — $ (384) $ — $ (13,788) $ — 1 Related to instruments held at end of period. The following represents the gross components of purchases, issuances, sales and settlements, net, and net transfers in (out) shown above: Three months ended September 30, 2020 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Transfers in Transfers out Net transfers in (out) Assets AFS securities US state, municipal and political subdivisions $ — $ — $ (5) $ — $ (5) $ — $ — $ — Foreign governments 1 — — — 1 — — — Corporate 58 — — (19) 39 157 (206) (49) CLO 12 — (18) (1) (7) 36 — 36 ABS 47 — (43) (48) (44) 218 (71) 147 CMBS — — — — — 39 (23) 16 RMBS — — (1) (1) (2) — (16) (16) Trading securities ABS 35 — — — 35 — — — RMBS — — — — — 8 (1) 7 Equity securities 10 — — — 10 — — — Mortgage loans — — — (6) (6) — — — Short-term investments 1 — (7) (10) (16) — (88) (88) Investments in related parties AFS securities Corporate 761 — — — 761 — — — CLO 11 — — — 11 — — — ABS 2 — (10) (23) (31) — — — Trading securities CLO — — — — — 4 (24) (20) ABS 517 — (10) — 507 — — — Equity securities 2 — (1) (3) (2) — — — Investment funds 16 — — — 16 — — — Total Level 3 assets $ 1,473 $ — $ (95) $ (111) $ 1,267 $ 462 $ (429) $ 33 Liabilities Interest sensitive contract liabilities – embedded derivative $ — $ (202) $ — $ 154 $ (48) $ — $ — $ — Total Level 3 liabilities $ — $ (202) $ — $ 154 $ (48) $ — $ — $ — Three months ended September 30, 2019 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Transfers in Transfers out Net transfers in (out) Assets AFS securities Corporate $ 199 $ — $ — $ (10) $ 189 $ 1 $ (71) $ (70) CLO 37 — — (3) 34 — (104) (104) ABS 64 — (21) (27) 16 — (137) (137) CMBS 251 — (4) (52) 195 — (73) (73) Trading securities Corporate — — — — — — (6) (6) ABS — — — (1) (1) 78 — 78 RMBS 15 — — — 15 35 — 35 Equity securities — — — — — — (2) (2) Mortgage loans — — — (4) (4) — — — Investment funds — — (2) — (2) — — — Short-term investments 200 — — (19) 181 — — — Investments in related parties AFS securities CLO — — — — — — (37) (37) ABS 587 — — — 587 — — — Trading securities CLO — — (7) — (7) — (23) (23) ABS 2 — — — 2 — — — Equity securities 31 — — — 31 — — — Total Level 3 assets $ 1,386 $ — $ (34) $ (116) $ 1,236 $ 114 $ (453) $ (339) Liabilities Interest sensitive contract liabilities – embedded derivative $ — $ (222) $ — $ 119 $ (103) $ — $ — $ — Total Level 3 liabilities $ — $ (222) $ — $ 119 $ (103) $ — $ — $ — Nine months ended September 30, 2020 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Transfers in Transfers out Net transfers in (out) Assets AFS securities US state, municipal and political subdivisions $ — $ — $ (5) $ (1) $ (6) $ — $ — $ — Foreign governments 1 — — — 1 — — — Corporate 245 — — (127) 118 97 (40) 57 CLO 90 — (25) (9) 56 36 (22) 14 ABS 95 — (6) (390) (301) 64 (106) (42) CMBS — — (4) (1) (5) 39 — 39 Trading securities Corporate — — — — — 6 — 6 ABS 35 — (16) — 19 — — — RMBS — — — — — 12 (1) 11 Equity securities 10 — — — 10 — — — Mortgage loans — — — (8) (8) — — — Short-term investments 1 — (7) (25) (31) — — — Investments in related parties AFS securities Corporate 761 — — — 761 — — — CLO 11 — — — 11 — — — ABS 7 — (15) (77) (85) — (165) (165) Trading securities CLO 13 — (12) — 1 — — — ABS 671 — (10) (14) 647 — — — Equity securities 3 — (2) (4) (3) — (6) (6) Investment funds 1,525 — — — 1,525 — — — Total Level 3 assets $ 3,468 $ — $ (102) $ (656) $ 2,710 $ 254 $ (340) $ (86) Liabilities Interest sensitive contract liabilities – embedded derivative $ — $ (964) $ — $ 1,075 $ 111 $ — $ — $ — Total Level 3 liabilities $ — $ (964) $ — $ 1,075 $ 111 $ — $ — $ — Nine months ended September 30, 2019 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Transfers in Transfers out Net transfers in (out) Assets AFS securities US state, municipal and political subdivisions $ 40 $ — $ — $ — $ 40 $ — $ — $ — Corporate 277 — (2) (111) 164 1 (134) (133) CLO 64 — — (4) 60 — (39) (39) ABS 260 — (41) (176) 43 — (419) (419) CMBS 252 — (4) (94) 154 — (18) (18) RMBS 2 — — — 2 — (62) (62) Trading securities CLO — — — — — 6 — 6 ABS 6 — — (1) 5 78 — 78 RMBS 15 — — — 15 34 (79) (45) Equity securities — — — — — — (2) (2) Mortgage loans — — — (5) (5) — — — Investment funds — — (5) — (5) — — — Short-term investments 248 — — (22) 226 — — — Investments in related parties AFS securities, ABS 757 — — (9) 748 — (103) (103) Trading securities CLO — — (54) — (54) 43 (35) 8 ABS — — — (15) (15) 103 — 103 Equity securities 243 — (4) — 239 — — — Investment funds 19 — — — 19 — — — Total Level 3 assets $ 2,183 $ — $ (110) $ (437) $ 1,636 $ 265 $ (891) $ (626) Liabilities Interest sensitive contract liabilities – embedded derivative $ — $ (756) $ — $ 372 $ (384) $ — $ — $ — Total Level 3 liabilities $ — $ (756) $ — $ 372 $ (384) $ — $ — $ — 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. 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 US 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 AFS and trading securities and the embedded derivatives of fixed indexed annuities: September 30, 2020 (In millions, except for percentages) Fair value Valuation technique Unobservable inputs Minimum Maximum Weighted average Impact of an increase in the input on fair value AFS and trading securities $ 5,468 Discounted cash flow Discount 2.0 % 35.0 % 5.7 % 1 Decrease Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives $ 11,741 Option budget method Nonperformance risk 0.1 % 1.5 % 0.8 % 2 Decrease Option budget 0.6 % 3.6 % 1.9 % 3 Increase Surrender rate 5.3 % 9.7 % 7.1 % 4 Decrease December 31, 2019 Fair value Valuation technique Unobservable inputs Minimum Maximum Weighted average Impact of an increase in the input on fair value AFS and trading securities $ 1,289 Discounted cash flow Discount 3.0 % 9.0 % 6.6 % 1 Decrease Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives $ 10,942 Option budget method Nonperformance risk 0.2 % 1.1 % 0.6 % 2 Decrease Option budget 0.7 % 3.7 % 1.9 % 3 Increase Surrender rate 3.5 % 8.1 % 7.1 % 4 Decrease 1 The discount weighted average is calculated based on the relative fair values of the securities. 2 The nonperformance risk weighted average is based on the projected excess benefits of reserves used in the calculation of the embedded derivative. 3 The option budget weighted average is calculated based on the indexed account values. 4 The surrender rate weighted average is calculated based on projected account values. Financial Instruments Without Readily Determinable Fair Values —We have elected the measurement alternative for certain equity securities that do not have a readily determinable fair value. The equity securities are held at cost less any impairment. The carrying amount of the equity securities was $433 million with no recorded impairment as of September 30, 2020. 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: September 30, 2020 (In millions) Carrying Value Fair Value NAV Level 1 Level 2 Level 3 Financial assets Mortgage loans $ 14,572 $ 15,114 $ — $ — $ — $ 15,114 Investment funds 567 567 567 — — — Policy loans 387 387 — — 387 — Funds withheld at interest 47,334 47,334 — — — 47,334 Other investments 840 852 — — — 852 Investments in related parties Mortgage loans 640 628 — — — 628 Investment funds 2,958 2,958 2,958 — — — Funds withheld at i |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Reinsurance | 6. Reinsurance Reinsurance transactions —On June 18, 2020, we entered into a funds withheld coinsurance agreement effective June 1, 2020 with Jackson National Life Insurance Company (Jackson) to reinsure a block of fixed and fixed indexed annuities. Additionally, as part of the transaction, we made a $500 million equity investment in an indirect parent of Jackson, which closed on July 17, 2020. The following summarizes the transaction: (In millions) Funds Withheld Liabilities assumed $ 27,439 Less: Net consideration received 28,805 Unearned revenue reserve 1 $ (1,366) 1 Included within interest sensitive contract liabilities on the condensed consolidated balance sheets. Unearned revenue reserve balances are amortized over the life of the reinsurance agreements on a basis consistent with our DAC amortization policy. Effective July 1, 2020, we restructured our reinsurance agreement with Mass Mutual Life Insurance Company (MassMutual). MassMutual recaptured the existing coinsurance agreement and we immediately entered into a new funds withheld coinsurance agreement with our ALRe subsidiary. As a result, we recorded a $5,021 million increase in funds withheld at interest and a corresponding decrease in assets, primarily consisting of investments and cash. The following summarizes the effect of reinsurance on premiums and future policy and other policy benefits on the condensed consolidated statements of income: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Premiums Direct $ 42 $ 2,661 $ 1,424 $ 5,405 Reinsurance assumed 101 57 284 193 Reinsurance ceded (31) (30) (101) (123) Total premiums $ 112 $ 2,688 $ 1,607 $ 5,475 Future policy and other policy benefits Direct $ 385 $ 3,025 $ 2,404 $ 6,481 Reinsurance assumed 161 77 370 313 Reinsurance ceded (107) (147) (305) (399) Total future policy and other policy benefits $ 439 $ 2,955 $ 2,469 $ 6,395 |
Deferred Acquisition Costs, Def
Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Deferred Acquisition Costs, Deferred Sales Inducements, and Value of Business Acquired | 7. 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, 2019 $ 3,274 $ 820 $ 914 $ 5,008 Adoption of accounting standard 12 5 5 22 Additions 470 124 — 594 Unlocking (36) (13) (11) (60) Amortization (175) (24) (25) (224) Impact of unrealized investment (gains) losses (116) (45) (14) (175) Balance at September 30, 2020 $ 3,429 $ 867 $ 869 $ 5,165 (In millions) DAC DSI VOBA Total Balance at December 31, 2018 $ 3,921 $ 799 $ 1,187 $ 5,907 Additions 521 187 — 708 Unlocking (117) (9) (24) (150) Amortization (637) (29) (37) (703) Impact of unrealized investment (gains) losses (458) (141) (203) (802) Balance at September 30, 2019 $ 3,230 $ 807 $ 923 $ 4,960 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt Short-term Borrowing —During the second quarter of 2020, we converted $400 million of short-term debt outstanding with the FHLB to funding agreements . See Note 12 – Commitments and Contingencies for further discussion regarding FHLB funding agreements. Senior Notes —During the second quarter of 2020, we issued $500 million of senior unsecured notes due April 3, 2030. The senior notes have a 6.150% coupon rate, payable semi-annually. We can call the senior notes, in whole or in part, at any time prior to January 3, 2030, at a price equal to the greater of (1) 100% of the principal and any accrued and unpaid interest and (2) an amount equal to the sum of the present values of remaining scheduled payments, discounted from the scheduled payment date to the redemption date at the Treasury Rate (as defined in the second supplemental indenture, dated April 3, 2020) plus 50 basis points, and any accrued and unpaid interest. Thereafter, we can call the notes, in whole or in part, at a price equal to 100% of the principal and any accrued and unpaid interest. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 9. Earnings Per Share The following represents our basic and diluted earnings per share (EPS) calculations, which are calculated using unrounded amounts: Three months ended September 30, 2020 (In millions, except per share data) Class A Net income available to Athene Holding Ltd. common shareholders – basic and diluted $ 622 Basic weighted average shares outstanding 193.1 Dilutive effect of stock compensation plans 4.0 Diluted weighted average shares outstanding 197.1 Earnings per share Basic $ 3.22 Diluted $ 3.16 Three months ended September 30, 2019 (In millions, except share and per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income available to Athene Holding Ltd. common shareholders – basic and diluted $ 227 $ 38 $ 5 $ 1 $ 2 $ 3 Basic weighted average shares outstanding 151.6 25.4 3.3 0.8 1.0 2.2 Dilutive effect of stock compensation plans 0.4 — — — — 0.3 Diluted weighted average shares outstanding 152.0 25.4 3.3 0.8 1.0 2.5 Earnings per share Basic $ 1.50 $ 1.50 $ 1.50 $ 1.50 $ 1.50 $ 1.50 Diluted $ 1.50 $ 1.50 $ 1.50 $ 1.50 $ 1.50 $ 1.29 Nine months ended September 30, 2020 (In millions, except share and per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income (loss) available to Athene Holding Ltd. common shareholders – basic and diluted $ 508 $ (98) $ (13) $ (3) $ (4) $ (9) Basic weighted average shares outstanding 182.8 25.4 3.3 0.8 1.0 2.4 Dilutive effect of stock compensation plans 3.1 — — — — — Diluted weighted average shares outstanding 185.9 25.4 3.3 0.8 1.0 2.4 Earnings (loss) per share Basic $ 2.78 $ (3.87) $ (3.87) $ (3.87) $ (3.87) $ (3.87) Diluted $ 2.73 $ (3.87) $ (3.87) $ (3.87) $ (3.87) $ (3.87) Nine months ended September 30, 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 available to Athene Holding Ltd. common shareholders – basic and diluted $ 1,411 $ 228 $ 30 $ 7 $ 9 $ 19 Basic weighted average shares outstanding 157.2 25.4 3.3 0.8 1.0 2.2 Dilutive effect of stock compensation plans 0.4 — — — — 0.3 Diluted weighted average shares outstanding 157.6 25.4 3.3 0.8 1.0 2.5 Earnings per share Basic $ 8.97 $ 8.97 $ 8.97 $ 8.97 $ 8.97 $ 8.97 Diluted $ 8.95 $ 8.97 $ 8.97 $ 8.97 $ 8.97 $ 7.77 During the first quarter of 2020, as a result of the closing of the share transaction discussed further in Note 11 – Related Parties , we converted outstanding Class B shares to Class A shares and Class M shares were converted to Class A shares and warrants. As a result, the EPS calculation for the nine months ended September 30, 2020 allocates all net income for the second and third quarters to Class A shares. For the first quarter, the EPS calculation used only the weighted average shares for the first quarter to allocate first quarter net income for Class B and Class M shares; however, for Class B and Class M shares, the weighted average shares outstanding represent only that period of time that the shares were outstanding. The warrants issued as part of the conversion of the Class M shares are evaluated for dilution within the dilutive effect of stock compensation plans. We use the two-class method for allocating net income available to Athene Holding Ltd. common shareholders 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 2.8 million and 32.0 million shares, restricted stock units, options and warrants as of September 30, 2020 and 2019, respectively. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 10. Equity Preferred Stock— We have three series of preferred stock: 6.35% Fixed-to-Floating Rate Perpetual Non-Cumulative Preference Shares, Series A (Series A); 5.625% Fixed Rate Perpetual Non-Cumulative Preference Shares, Series B (Series B); and 6.375% Fixed-Rate Reset Perpetual Non-Cumulative Preference Shares, Series C (Series C) as summarized below: Series A Series B Series C Authorized, issued and outstanding 34,500 13,800 24,000 Liquidation preference per share $ 25,000 $ 25,000 $ 25,000 The following summarizes dividends declared and paid per preferred stock share by series: Three months ended September 30, Nine months ended September 30, (Per share) 2020 2019 2020 2019 Series A $ 396.87 $ 485.07 $ 1,190.63 $ 485.07 Series B 351.57 — 1,054.69 — Series C 482.55 — 482.55 — The following summarizes dividends declared and paid in the aggregate on the preferred stock by series: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Series A $ 14 $ 17 $ 41 $ 17 Series B 4 — 14 — Series C 12 — 12 — Total dividends declared and paid $ 30 $ 17 $ 67 $ 17 Preferred stock dividends are payable on a non-cumulative basis only when, as and if declared, quarterly in arrears on the 30 th day of March, June, September and December of each year. Preferred stock ranks senior to our common stock with respect to dividends, to the extent declared, and in liquidation, to the extent of the liquidation preference. Common Stock— During the first quarter of 2020, shareholders approved amendments to our bye-laws which eliminated our multi-class share structure at the closing of the share transaction with Apollo. See Note 11 – Related Parties for further information on this transaction. On February 28, 2020, all Class B shares were converted to Class A shares on a one-to-one basis. Class M shares were converted to Class A shares representing 5% of the Class M value and warrants representing 95% of the Class M value. The warrants were issued with substantially the same terms, including the same economic terms, as the Class M shares. Our bye-laws place certain restrictions on Class A shares such that a holder of Class A shares, except for shareholders permitted by our board of directors, which include members of the Apollo Group, as defined in our bye-laws, cannot control greater than 9.9% of the total outstanding vote and if a holder of Class A shares were to control greater than 9.9%, then such holder’s voting power is automatically reduced to 9.9% and the other holders of Class A shares would vote the remainder on a prorated basis. Share Repurchase Authorization Our board of directors has approved authorizations of $1,567 million for the repurchase of our Class A shares under our repurchase program. 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: Nine months ended September 30, (In millions) 2020 2019 Beginning balance $ 640 $ 150 Additional authorization — 717 Repurchases (416) (544) Ending balance $ 224 $ 323 The table below shows the changes in each class of shares issued and outstanding: (In millions) Nine months ended September 30, 2020 Class A Beginning balance 143.2 Issued shares 35.9 Forfeited shares (0.1) Repurchased shares (13.2) Converted from Class B shares 25.4 Converted from Class M shares 0.3 Ending balance 191.5 Class B Beginning balance 25.4 Converted to Class A shares (25.4) Ending balance — Class M-1 Beginning balance 3.3 Converted to Class A shares (0.2) Converted to warrants (3.1) Ending balance — Class M-2 Beginning balance 0.8 Converted to Class A shares 0.0 Converted to warrants (0.8) Ending balance — Class M-3 Beginning balance 1.0 Converted to Class A shares 0.0 Converted to warrants (1.0) Ending balance — Class M-4 Beginning balance 4.0 Converted to Class A shares (0.1) Converted to warrants (3.6) Repurchased shares (0.3) Ending balance — Acc umulated Other Comprehensive Income (Loss)— The following provides the details of AOCI and changes in AOCI: (In millions) Unrealized investment gains (losses) on AFS securities without a credit allowance Unrealized investment gains (losses) on AFS securities with a credit allowance DAC, DSI, VOBA and future policy benefits adjustments on AFS securities Unrealized gains (losses) on hedging instruments Foreign currency translation and other adjustments Accumulated other comprehensive income (loss) Balance at June 30, 2020 $ 3,444 $ (702) $ (873) $ 320 $ (5) $ 2,184 Other comprehensive income (loss) before reclassifications 646 768 (306) (178) 10 940 Less: Reclassification adjustments for gains (losses) realized in net income (loss) 1 85 — (20) — — 65 Less: Income tax expense (benefit) 107 153 (61) (42) — 157 Less: Other comprehensive income (loss) attributable to NCI (10) 14 — 8 2 14 Balance at September 30, 2020 $ 3,908 $ (101) $ (1,098) $ 176 $ 3 $ 2,888 1 Recognized in investment related gains (losses) on the condensed consolidated statements of income. (In millions) Unrealized investment gains (losses) on AFS securities DAC, DSI, VOBA and future policy benefits adjustments on AFS securities Unrealized gains (losses) on hedging instruments Foreign currency translation and other adjustments Accumulated other comprehensive income (loss) Balance at June 30, 2019 $ 2,349 $ (661) $ 77 $ (5) $ 1,760 Other comprehensive income (loss) before reclassifications 1,132 (392) 124 (1) 863 Less: Reclassification adjustments for gains (losses) realized in net income (loss) 1 7 (2) — — 5 Less: Income tax expense (benefit) 232 (82) 26 — 176 Balance at September 30, 2019 $ 3,242 $ (969) $ 175 $ (6) $ 2,442 1 Recognized in investment related gains (losses) on the condensed consolidated statements of income. (In millions) Unrealized investment gains (losses) on AFS securities without a credit allowance Unrealized investment gains (losses) on AFS securities with a credit allowance DAC, DSI, VOBA and future policy benefits adjustments on AFS securities Unrealized gains (losses) on hedging instruments Foreign currency translation and other adjustments Accumulated other comprehensive income (loss) Balance at December 31, 2019 $ 3,102 $ — $ (879) $ 61 $ (3) $ 2,281 Adoption of accounting standards 4 (4) (6) — — (6) Other comprehensive income (loss) before reclassifications 1,403 (116) (358) 140 9 1,078 Less: Reclassification adjustments for gains (losses) realized in net income (loss) 1 306 — (87) — — 219 Less: Income tax expense (benefit) 213 (23) (58) 33 — 165 Less: Other comprehensive income (loss) attributable to NCI 82 4 — (8) 3 81 Balance at September 30, 2020 $ 3,908 $ (101) $ (1,098) $ 176 $ 3 $ 2,888 1 Recognized in investment related gains (losses) on the condensed consolidated statements of income. (In millions) Unrealized investment gains (losses) on AFS securities DAC, DSI, VOBA and future policy benefits adjustments on AFS securities Unrealized gains (losses) on hedging instruments Foreign currency translation and other adjustments Accumulated other comprehensive income (loss) Balance at December 31, 2018 $ (628) $ 121 $ 39 $ (4) $ (472) Other comprehensive income (loss) before reclassifications 4,889 (1,391) 171 (2) 3,667 Less: Reclassification adjustments for gains (losses) realized in net income (loss) 1 35 (10) — — 25 Less: Income tax expense (benefit) 984 (291) 35 — 728 Balance at September 30, 2019 $ 3,242 $ (969) $ 175 $ (6) $ 2,442 1 Recognized in investment related gains (losses) on the condensed consolidated statements of income. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Parties | 11. Related Parties Apollo Current fee structure – Substantially all of our investments are managed by Apollo, which 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. During the second quarter of 2019, we entered into the Seventh Amended and Restated Fee Agreement, dated as of June 10, 2019, between us and AGM’s subsidiary, Apollo Insurance Solutions Group LP (ISG) (Fee Agreement). Under the Fee Agreement, effective retroactive to January 1, 2019, we pay Apollo: (1) a base management fee equal to the sum of (i) 0.225% per year of the lesser of (A) the aggregate market value of substantially all of the assets in substantially all of the investment accounts of or relating to us (collectively, the Accounts) on December 31, 2018 of $103.4 billion (Backbook Value) and (B) the aggregate market value of substantially all of the assets in the Accounts at the end of the respective month, plus (ii) 0.15% per year of the amount, if any (Incremental Value), by which the aggregate market value of substantially all of the assets in the Accounts at the end of the respective month exceeds the Backbook Value; plus (2) with respect to each asset in an Account, subject to certain exceptions, that is managed by Apollo and that belongs to a specified asset class tier (Core, Core Plus, Yield, and High Alpha), a sub-allocation fee as follows, which will, in the case of assets acquired after January 1, 2019, be subject to a cap of 10% of the applicable asset’s gross book yield: (i) 0.065% of the market value of Core assets, which include public investment grade corporate bonds, municipal securities, agency RMBS or CMBS, and obligations of governmental agencies or government sponsored entities that are not expressly backed by the US government; (ii) 0.13% of the market value of Core Plus assets, which include private investment grade corporate bonds, fixed rate first lien commercial mortgage loans (CML), and certain obligations issued or assumed by financial institutions and determined by Apollo to be “Tier 2 Capital” under Basel III, a set of recommendations for international banking regulations developed by the Bank for International Settlements; (iii) 0.375% of the market value of Yield assets, which include non-agency RMBS, investment grade CLO, CMBS and other ABS (other than RMBS and CLO), emerging market investments, below investment grade corporate bonds, subordinated debt obligations, hybrid securities or surplus notes issued or assumed by a financial institution, rated preferred equity, residential mortgage loans (RML), bank loans, investment grade infrastructure debt, and floating rate CMLs on slightly transitional or stabilized traditional real estate; (iv) 0.70% of the market value of High Alpha assets, which include subordinated CML, below investment grade CLO, unrated preferred equity, debt obligations originated by MidCap, CMLs for redevelopment or construction loans or secured by non-traditional real estate, below investment grade infrastructure debt, certain loans originated directly by Apollo (other than MidCap loans), and agency mortgage derivatives; and (v) 0.00% of the market value of cash and cash equivalents, US treasuries, non-preferred equities and alternatives. The following represents assets based on the above sub-allocation structure: (In millions, except percentages) September 30, 2020 Percent of Total December 31, 2019 Percent of Total Core $ 48,409 28.7 % $ 32,474 25.5 % Core Plus 39,543 23.4 % 30,155 23.6 % Yield 58,791 34.8 % 48,557 38.0 % High Alpha 6,776 4.0 % 5,062 4.0 % Other 15,289 9.1 % 11,302 8.9 % Total sub-allocation assets $ 168,808 100.0 % $ 127,550 100.0 % Additionally, the Fee Agreement provides for a possible payment by Apollo to us, or a possible payment by us to Apollo, equal to 0.025% of the Incremental Value as of the end of each year, beginning on December 31, 2019, depending upon the percentage of our investments that consist of Core and Core Plus assets. If more than 60% of our invested assets that are subject to the sub-allocation fees are invested in Core and Core Plus assets, we will receive a 0.025% fee reduction on the Incremental Value. If less than 50% of our invested assets that are subject to the sub-allocation fee are invested in Core and Core Plus assets, we will pay an additional fee of 0.025% on Incremental Value. During the three months ended September 30, 2020 and 2019, we incurred management fees, inclusive of the base and sub-allocation fees, of $111 million and $127 million, respectively. During the nine months ended September 30, 2020 and 2019, we incurred management fees, inclusive of the base and sub-allocation fees, of $362 million and $313 million, respectively. Management fees are included within net investment income on the condensed consolidated statements of income. As of September 30, 2020 and December 31, 2019, management fees payable were $31 million and $42 million, respectively, and are included in other liabilities on the condensed consolidated balance sheets. In addition to the assets on our condensed consolidated balance sheets managed by Apollo, Apollo manages the assets underlying our funds withheld receivable. For these assets, the third-party cedants pay Apollo fees based upon the same fee construct we have with Apollo. Such fees directly reduce the settlement payments that we receive from the third-party cedant and, as such, we indirectly pay those fees. Finally, Apollo charges management fees and carried interest on Apollo-managed funds and other entities in which we invest. Neither the fees paid by such third-party cedants nor the fees or carried interest paid by such Apollo-managed funds or other entities are included in the investment management fee amounts cited above. Investment management agreement (IMA) termination – Our bye-laws currently provide that we may not, and will cause our subsidiaries not to, terminate any IMA among us or any of our subsidiaries, on the one hand, and a member of the Apollo Group (as defined in our bye-laws), on the other hand, other than on June 4, 2023 or any two year anniversary of such date (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 the applicable Apollo subsidiary of such termination at least 30 days, but not more than 90 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 no earlier than the second anniversary of the applicable IMA Termination Election Date (IMA Termination Effective Date). Notwithstanding the foregoing, (A) except as set forth in clause (B) below, our board of 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 the applicable Apollo subsidiary or (ii) the fees being charged by the applicable Apollo subsidiary 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 the applicable Apollo subsidiary and the applicable Apollo subsidiary 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 the applicable Apollo subsidiary are unfair and excessive, the applicable Apollo subsidiary 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 the applicable Apollo subsidiary, on a date other than an IMA Termination Effective Date, as a result of either (i) a material violation of law relating to the applicable Apollo subsidiary’s advisory business, or (ii) the applicable Apollo subsidiary’s gross negligence, willful misconduct or reckless disregard of its obligations under the relevant agreement, in each case of this clause (B), that is materially detrimental to us, and in either case of this clause (B), subject to the delivery of written notice at least 30 days prior to such termination; provided, that in connection with an event described in clause (B)(i) or (B)(ii), the applicable Apollo subsidiary shall have the right to dispute such determination of the Independent Directors within 30 days after receiving notice from us of such determination, in which case the matter will be submitted to binding arbitration and such IMA shall continue to remain in effect during the period of the arbitration (the events described in the foregoing clauses (A) and (B) are referred to in more detail in our bye-laws as “AHL Cause”). Governance – 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. Also, James Belardi, our Chief Executive Officer, is an employee of ISG and receives remuneration from acting as Chief Executive Officer of ISG. Mr. Belardi also owns a 5% profit interest in ISG (Interest). It is expected that the Interest will be revised such that Mr. Belardi will receive a lesser interest in the equity of ISG and also receive a specified percentage of other fee streams earned by Apollo, potentially comprised of or including the sub-allocation fees. Additionally, six of the sixteen 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 – We have an equity method investment of $666 million and $487 million as of September 30, 2020 and December 31, 2019, 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 $254 million of residential mortgage loans under this agreement during the three months ended September 30, 2020 and 2019, respectively. We purchased $169 million and $254 million of residential mortgage loans under this agreement during the nine months ended September 30, 2020 and 2019, respectively. Additionally, we hold ABS securities issued by AmeriHome affiliates of $165 million and $170 million as of September 30, 2020 and December 31, 2019, respectively, which are included in related party AFS securities on the condensed consolidated balances sheets. We also have commitments to make additional equity investments in A-A Mortgage of $125 million as of September 30, 2020. Additionally, o n October 26, 2020, we invested in $195 million of unsecured notes issued by AmeriHome. MidCap – During the third quarter of 2020, AAA Investment (Co Invest VII), L.P. (CoInvest VII) was dissolved. CoInvest VII held a significant investment in MidCap. CoInvest VII was included in related party investment funds on the condensed consolidated balance sheets and was reflected as a consolidated VIE prior to the first quarter of 2020. Subsequent to the dissolution of CoInvest VII, we now hold MidCap directly as profit participating notes, which are included in related party trading ABS securities on the condensed consolidated balance sheets. We have also advanced amounts under a subordinated debt facility to MidCap. During the second quarter of 2020, we invested $67 million in MidCap redeemable preferred stock. The subordinated debt facility and redeemable preferred stock are included in related party other investments and related party trading securities, respectively, on the condensed consolidated balance sheets. The following summarizes these investments in MidCap: (In millions) September 30, 2020 December 31, 2019 Investment fund $ — $ 547 Profit participating notes 532 — Subordinated debt facility 322 339 Redeemable preferred stock 77 — Total investment in MidCap $ 931 $ 886 Additionally, we hold ABS and CLO securities issued by MidCap affiliates of $537 million and $624 million as of September 30, 2020 and December 31, 2019, 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) for a period of 30 days from the receipt of notice of a cession, we have the right of first refusal to reinsure (i) up to 50% of the liabilities ceded from Athora’s reinsurance subsidiaries to Athora Life Re Ltd. and (ii) up to 20% of the liabilities ceded from a third party to any of Athora’s insurance subsidiaries, subject to a limitation in the aggregate of 20% of Athora’s liabilities, (2) Athora agreed to cause its insurance subsidiaries to consider the purchase of certain funding agreements and/or other spread instruments issued by our insurance subsidiaries, subject to a limitation that the fair market value of such funding agreements purchased by any of Athora’s insurance subsidiaries may generally not exceed 3% of the fair market value of such subsidiary’s total assets, (3) we provide Athora with a right of first refusal to pursue acquisition and reinsurance transactions in Europe (other than the United Kingdom (UK)) 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 UK. Notwithstanding the foregoing, pursuant to the cooperation agreement, Athora is only required to use its reasonable best efforts to cause its subsidiaries to adhere to the provisions set forth in the cooperation agreement and therefore Athora’s ability to cause its subsidiaries to act pursuant to the cooperation agreement may be limited by, among other things, legal prohibitions or the inability to obtain the approval of the board of directors or other applicable governing body of the applicable subsidiary, which approval is solely at the discretion of such governing body. As of September 30, 2020 , we have not exercised our right of first refusal to reinsure liabilities ceded to Athora’s insurance or reinsurance subsidiaries. Our investment in Athora, which is included in related party investment funds on the condensed consolidated balance sheets, was $572 million and $132 million as of September 30, 2020 and December 31, 2019, respectively. During the second quarter of 2020, we contributed capital of $361 million to Athora. Additionally, as of September 30, 2020 and December 31, 2019, we had $117 million and $146 million, respectively, of funding agreements outstanding to Athora . We also have commitments to make additional equity investments in Athora of $370 million as of September 30, 2020. Venerable – We have coinsurance and modco agreements with Venerable Insurance and Annuity Company (VIAC, formerly Voya Insurance and Annuity Company). VIAC is a related party due to our minority equity investment in its holding company’s parent, VA Capital Company LLC (VA Capital) , which was $108 million and $99 million as of September 30, 2020 and December 31, 2019, respectively. The minority equity investment in VA Capital 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 parent of Venerable, which is the parent of VIAC. Additionally, we have a 15-year term loan receivable from Venerable due in 2033, which is included in related party other investments on the condensed consolidated balance sheets. The loan is held at the principal balance less allowances and was $145 million and $148 million as of September 30, 2020 and December 31, 2019, respectively. While management views the overall transactions with 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 reinsurance transactions. Strategic Partnership – We have 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 ISG and remain subject to our existing governance processes, including approval by our conflicts committee where applicable. As of September 30, 2020 and December 31, 2019, we had $137 million and $97 million, respectively, of investments under the Strategic Partnership and these investments are included in related party investment funds on the condensed consolidated balance sheets and were reflected as consolidated VIEs in prior periods. PK AirFinance – During the fourth quarter of 2019, we and Apollo purchased PK AirFinance (PK), an aviation lending business, including PK’s in force loan portfolio (Aviation Loans), from the Aviation Services Unit of GE Capital (GE). The Aviation Loans are generally fully secured by aircraft leases and aircraft. In connection with such transaction, Apollo acquired the PK loan origination platform, including personnel and systems and, pursuant to certain agreements entered into between us, Apollo, and certain entities managed by Apollo (collectively, PK Transaction Agreements), the existing Aviation Loans were acquired and securitized by a newly formed SPV for which Apollo acts as ABS manager (ABS-SPV). The ABS-SPV issued tranches of senior notes and subordinated notes, which are secured by the Aviation Loans. In connection with the acquisition of the existing Aviation Loans by the ABS-SPV (i) a tranche of senior notes was acquired by third-party investors and (ii) we purchased mezzanine tranches of the senior notes and the subordinated notes. As of September 30, 2020 and December 31, 2019, our investment in securitizations of loans originated by PK was $1,244 million and $1,282 million, respectively, and are included in related party AFS or trading securities on the condensed consolidated balance sheets. We also have commitments to make additional investment in securitizations of loans originated by PK of $215 million as of September 30, 2020. In addition to the investment in the senior notes and subordinated notes, we also have a right to acquire, whether directly, through the ABS-SPV or through a similar vehicle, all Aviation Loans originated by PK (Forward Flow Loans). All servicing and administrative costs and expenses of Apollo (determined at cost, without mark-up) that are incurred in connection with the sourcing, origination, servicing and maintaining the Forward Flow Loans, net of any service fees and servicing and administrative cost and expense reimbursement amounts received directly from the ABS-SPV or other entities investing in the Forward Flow Loans are allocated to, and reimbursed by the ABS-SPV or us, as applicable, subject to an agreed-upon annual cap. In addition to the payment of the expenses described in the preceding paragraph and the base management fee paid to Apollo on all assets managed by Apollo, we have paid or expect to pay the following fees to Apollo or certain service providers that are affiliates of, or are companies managed by, Apollo in connection with the PK Transaction Agreements: (A) To Apollo, sub-allocation fees on the senior notes based on the rates applicable to Yield assets and sub-allocation fees on the subordinated notes based on the rates applicable to High Alpha assets. (B) To Redding Ridge Asset Management LLC, a company in which certain funds managed by Apollo have an interest, as consideration for assistance with the structuring, monitoring, support and maintenance of the securitization transactions, a one-time structuring fee, as well as ongoing support fees equal to 1.5 bps on the total capitalization amount and certain other fees, which may become due upon the occurrence of certain events; and (C) To Merx Aviation Servicing Limited, a company externally managed by Apollo Investment Management, L.P., with respect to certain diligence, technical support and enforcement, remarketing and restructuring services with respect to the existing Aviation Loans and the Forward Flow Loans, a one-time servicing fee, as well as certain special situations fees, which may become due upon the occurrence of certain events. Apollo/Athene Dedicated Investment Program (ADIP) – Our subsidiary, Athene Co-Invest Reinsurance Affiliate 1A Ltd. (together with its subsidiaries, ACRA) is partially owned by ADIP, which is managed by AGM. As of March 31, 2020, ADIP owned 67% of the equity interests, while we retained 100% of the voting power and 33% of the equity interests in ACRA. On April 1, 2020, ALRe purchased 14,000 newly issued ACRA shares for $66 million, which resulted in ALRe holding 36.55% of the economic interests in ACRA. The remaining 63.45% of the economic interests in ACRA are held by ADIP. During the nine months ended September 30, 2020, we received a capital contribution of $240 million from ADIP and paid a dividend of $46 million to ADIP. Apollo Share Exchange and Related Transactions – On February 28, 2020, we closed a strategic transaction with AGM and certain affiliates of AGM which collectively comprise the Apollo Operating Group (AOG), pursuant to which we sold 27,959,184 newly issued Class A common shares to the AOG for an investment in Apollo of 29,154,519 newly issued AOG units valued at $1.1 billion and we sold 7,575,758 newly issued Class A common shares to the AOG for $350 million. Pursuant to the underlying transaction agreements, among other things (1) AGM has the right to purchase additional Class A common shares until August 26, 2020 to the extent AOG and certain affiliates, employees and consultants of AGM do not beneficially own at least 35% of the issued and outstanding Class A common shares (inclusive of Class A common shares over which any such persons have a valid proxy), on a fully diluted basis, in a number to achieve such 35% ownership level at a price based upon a weighted average price during the 30 days prior to the exercise of the purchase right and (2) Apollo Management Holdings, L.P. (AMH) has the right to purchase up to that number of Class A common shares that would increase by 5 percentage points the percentage of the issued and outstanding Class A common shares beneficially owned by the AOG and certain affiliates, employees and consultants of AGM (inclusive of Class A common shares over which any such persons have a valid proxy), calculated on a fully diluted basis. In connection with the closing of the transaction, we made certain amendments to our bye-laws which, among other things, eliminated our multi-class share structure. Concurrent with our entry into the transaction agreements, AMH, James Belardi, our Chief Executive Officer, and William Wheeler, our President (each an “Other Shareholder”), entered into a voting agreement, pursuant to which each Other Shareholder irrevocably appointed AMH as its proxy and attorney-in-fact (Proxy) to vote all of such Other Shareholder’s Class A common shares at any meeting of our shareholders occurring following the closing date and in connection with any written consent of our shareholders following the closing date. The Proxy will be of no force and effect if Apollo and certain affiliates thereof cease to hold some minimum level of ownership not to exceed 7.5% of our Class A common shares. AA Infrastructure Fund 1 LLC (AA Infrastructure) – We have an investment in preferred shares of AA Infrastructure, which is a fund managed by ISG. As of September 30, 2020 and December 31, 2019, we held $50 million and $58 million, respectively, of preferred shares, which are included in related party equity securities on the condensed consolidated balance sheets, and also held AA Infrastructure ABS securities of $293 million and $267 million, respectively, which are included in related party trading securities on the condensed consolidated balance sheets. We also have commitments to make additional investments in AA Infrastructure of $51 million as of September 30, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. 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 $5,848 million a nd $4,793 million as of September 30, 2020 and December 31, 2019, respectively. We expect most of our current commitments will be invested over the next five years; however, these commitments could become due any time upon counterparty request. Funding Agreements —We are a member of the FHLB and, through membership, we have issued funding agreements to the FHLB in exchange for cash advances. As of September 30, 2020 and December 31, 2019, we had $2,101 million and $1,226 million, respectively, 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 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 September 30, 2020 and December 31, 2019, we had $6,523 million and $3,700 million, respectively, of FABN f unding agreements outstanding . We had $2,392 million of FABN capacity remaining as of September 30, 2020. During the third quarter of 2020, we established a secured funding agreement backed repurchase agreement (FABR) program, in which a special-purpose, unaffiliated entity entered into repurchase agreements with a bank and the proceeds of the repurchase agreements were used by the special purpose entity to purchase funding agreements from us. As of September 30, 2020, we had $1,000 million of FABR funding 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) September 30, 2020 December 31, 2019 AFS securities $ 9,928 $ 9,369 Trading securities 54 45 Equity securities 24 22 Mortgage loans 4,715 2,535 Investment funds 55 84 Derivative assets 95 105 Short-term investments 5 92 Other investments 104 88 Restricted cash 1,226 402 Total restricted assets $ 16,206 $ 12,742 The restricted assets are primarily related to reinsurance trusts established in accordance with coinsurance agreements and the FHLB and FABR funding agreements described above. Letters of Credit— We have undrawn letters of credit totaling $1,413 million as of September 30, 2020. These letters of credit were issued for our reinsurance program and expire between December 10, 2020 and June 19, 2023. 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 broad based variable COLI policies from American General Life Insurance Company (American General) that, as of September 30, 2020, had an asset value of $401 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. Defendants moved to dismiss and the court heard oral arguments on February 13, 2019. The court issued an opinion on July 31, 2019 that did not address the merits, but found that the Chancery Court did not have jurisdiction over our claims and directed us to either amend our complaint or transfer the matter to Delaware Superior Court. The matter has been transferred to the Delaware Superior Court. Defendants renewed their motion to dismiss and the Superior Court heard oral arguments on December 18, 2019. The Superior Court issued an opinion on May 18, 2020 in which it granted in part and denied in part defendants’ motion. The Superior Court denied defendants’ motion with respect to the issue that negatively impacts the crediting rate for one of the COLI policies, which issue will proceed to discovery. The Superior Court granted defendants’ motion and dismissed without prejudice on ripeness grounds claims related to the exit and surrender protocols set forth in the policies, and dismissed defendant ZC Resource LLC. 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 parties have served initial document requests and interrogatories and are currently in early stage discovery. An initial scheduling conference is set for November 10, 2020. The value of the guarantees included within the asset value reflected above is $196 million as of September 30, 2020 . Regulatory Matters – Beginning in 2015, our US insurance subsidiaries have experienced increased 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 third party administration services on such policies. AllianceOne also administers a small block of 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 some similar service and administration issues, but to a lesser degree. 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 New York State Department of Financial Services (NYSDFS), the California Department of Insurance (CDI) and the Texas Department of Insurance, indicating, in each case, that the respective regulator planned to undertake a market conduct examination or enforcement proceeding of the applicable US insurance subsidiary relating to the treatment of policyholders subject to our reinsurance agreements with affiliates of Global Atlantic and the conversion of the life and annuity policies, including the administration of such blocks by AllianceOne. We have entered into consent orders with several states, including the NYSDFS and the CDI, to resolve underlying matters in those states. All fines and costs, including those associated with remediation plans, paid in connection with the consent orders are subject to indemnification by Global Atlantic or affiliates of Global Atlantic. 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 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. On April 13, 2020, we entered into a consent order with the NYSDFS to resolve this matter. Pursuant to the consent order, the NYSDFS imposed a fine of $45 million, which was accrued in other liabilities on the consolidated balance sheets as of December 31, 2019, and paid during the second quarter of 2020. 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. Athene amended its writ on October 16, 2018. The trial court denied two separate motions to dismiss made by defendant Caldera on June 28, 2018 and by the former officer and former director defendants on January 14, 2019. On September 20, 2019, the Bermuda Court of Appeal affirmed both trial court rulings and dismissed the defendants’ appeal. Defendants have not further pursued an appeal of this decision to the Judicial Committee of the Privy Council, the court of final appeal for matters litigated in Bermuda. On March 17, 2020, we filed an application for leave to amend the complaint to more broadly assert defendants’ breaches of duties and that motion was approved by Order dated September 20, 2020. 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, on December 20, 2019, the court granted our motion to dismiss. Plaintiffs have filed an appeal, but failed to timely effectuate the appeal. Unless plaintiffs belatedly try to perfect their appeal, or to extend their time to do so, and are successful in such efforts, we believe that this litigation is concluded. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 13. 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 US 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 such as corporate allocated expenses, merger and acquisition costs, debt costs, preferred stock dividends, 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 available to common shareholders 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 available to common shareholders 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; and • VIE expenses, noncontrolling interests 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 September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Retirement Services $ 1,711 $ 4,096 $ 5,769 $ 9,650 Corporate and Other (15) 28 101 84 Non-operating adjustments Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets 637 84 (280) 1,490 Investment gains (losses), net of offsets 468 373 29 1,768 VIE expenses, noncontrolling interests and other adjustments to revenues 474 3 505 10 Total revenues $ 3,275 $ 4,584 $ 6,124 $ 13,002 Adjusted operating income available to common shareholders 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 available to common shareholders equals net income available to Athene Holding Ltd. common shareholders 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 available to common shareholders to net income available to Athene Holding Ltd. common shareholders presented on the condensed consolidated statements of income: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Retirement Services $ 361 $ 256 $ 773 $ 918 Corporate and Other (59) (13) (89) (18) Non-operating adjustments Investment gains (losses), net of offsets 346 166 (18) 1,041 Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets 72 (117) (268) (201) Integration, restructuring and other non-operating expenses — (34) (13) (46) Stock-based compensation, excluding LTIP (1) (3) (11) (9) Income tax (expense) benefit – non-operating (97) 21 7 19 Net income available to Athene Holding Ltd. common shareholders $ 622 $ 276 $ 381 $ 1,704 The following represents total assets by segment: (In millions) September 30, 2020 December 31, 2019 Retirement Services $ 186,400 $ 143,881 Corporate and Other 4,688 2,994 Total assets $ 191,088 $ 146,875 |
Business, Basis of Presentati_2
Business, Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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 intercompany accounts and transactions have been eliminated. Interim operating results are not necessarily indicative of the results expected for the entire year, particularly in light of the material risks and uncertainties surrounding the spread of the Coronavirus Disease of 2019 (COVID-19), which has resulted in significant volatility in the financial markets.For entities that are consolidated, but not 100% owned, we allocate a portion of the income or loss and corresponding equity to the owners other than us. We include the aggregate of the income or loss and corresponding equity that is not owned by us in noncontrolling interests in the consolidated financial statements.The condensed consolidated balance sheet as of December 31, 2019 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, 2019. |
Consolidation | 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 intercompany accounts and transactions have been eliminated. Interim operating results are not necessarily indicative of the results expected for the entire year, particularly in light of the material risks and uncertainties surrounding the spread of the Coronavirus Disease of 2019 (COVID-19), which has resulted in significant volatility in the financial markets.For entities that are consolidated, but not 100% owned, we allocate a portion of the income or loss and corresponding equity to the owners other than us. We include the aggregate of the income or loss and corresponding equity that is not owned by us in noncontrolling interests in the consolidated financial statements.The condensed consolidated balance sheet as of December 31, 2019 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. |
Use of Estimates | The preparation of financial statements requires the use of management estimates. Our estimates may vary as more information about the extent to which COVID-19 and the resulting impact on economic conditions and the financial markets become known. 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 Financial Instruments – Credit Losses (ASU 2019-05, ASU 2019-04, ASU 2018-19 and ASU 2016-13 This update limits the number of credit impairment models used for different assets and results in accelerated credit loss recognition on assets held at amortized cost, which primarily includes our commercial and residential mortgage loans, but also includes certain other loans and reinsurance assets. The identification of PCD financial assets includes all assets that have experienced a more-than-insignificant deterioration in credit since origination. Additionally, changes in the expected cash flows of purchased credit-deteriorated financial assets are recognized immediately in the income statement. AFS securities are not in scope of the new credit loss model, but were subject to targeted improvements including the establishment of a valuation allowance for credit losses versus the previous direct write down approach. We adopted this update effective January 1, 2020 with a cumulative-effect adjustment that decreased retained earnings by $117 million net of tax and offsetting impacts to DAC, DSI, VOBA and the SOP 03-1 reserve. The adjustment to retained earnings primarily relates to the establishment of an allowance on our commercial mortgage loan portfolio, which represented 1.59% of the amortized cost of the portfolio, but also includes immaterial impacts relating to other assets in scope, including residential mortgage loans, funds withheld at interest, and reinsurance recoverable. Additionally, the update requires investments previously considered purchased credit impaired (PCI), which includes certain of our residential mortgage loans and RMBS to become subject to a modified PCD framework at the transition date. Any required allowance at transition for these assets is to be recorded through a gross-up of the amortized cost, rather than a charge to retained earnings. Additionally, under the AFS impairment model, the recording of an allowance is prohibited in instances where fair value exceeds amortized cost as such securities are not considered impaired under the AFS impairment model. Therefore, no allowance was recorded at transition for PCI RMBS that were in an unrealized gain position. The transition increase of amortized cost and corresponding valuation allowance for residential mortgage loans and RMBS was $36 million and $17 million, respectively. 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. We adopted this update effective January 1, 2020. This update did not have a material effect 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 adopted this update effective January 1, 2020. The adoption of this update did not have a material effect 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 adopted this update on a prospective basis effective January 1, 2020. This update did not have a material effect 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. On October 1, 2018, we early adopted the removal and modification of certain disclosures as permitted. The additional disclosures in the update were adopted effective January 1, 2020. The adoption of this update did not have a material effect 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 is 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 continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. We do not have material goodwill and adopted this update on a prospective basis effective January 1, 2020. The adoption of this update did not have a material effect on our consolidated financial statements. Recently Issued Accounting Pronouncements Codification Improvements to Subtopic 310-20, Receivables–Nonrefundable Fees and Other Costs (ASU 2020-08) The amendments in this update clarify that callable debt securities should be reevaluated each reporting period to determine if the amortized cost exceeds the amount repayable by the issuer at the next earliest call date and, if so, the excess should be amortized to the next call date. We will be required to adopt this update January 1, 2021 and apply it on a prospective basis for existing or newly purchased callable debt securities. Early adoption is not permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts (ASU 2019-09, ASU 2018-12) These updates amend 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 used 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 our 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. While we are currently required to adopt these updates on January 1, 2022, the Financial Accounting Standards Board has proposed a deferral to the adoption date, which, if codified, would require adoption on January 1, 2023. 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. Income Taxes – Simplifying the Accounting for Income Taxes (ASU 2019-12) The amendments in this update simplify the accounting for income taxes by eliminating certain exceptions to the tax accounting guidance related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities related to foreign investment ownership changes. It also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill and allocating consolidated income taxes to separate financial statements of entities not subject to income tax. We will be required to adopt this update January 1, 2021 and apply certain aspects of the update retrospectively while other aspects will be applied on a modified retrospective basis. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Schedule of Investments [Abstract] | |
Financing Receivable, Nonaccrual [Table Text Block] | The following represents our residential loan portfolio in non-accrual status: (In millions) September 30, 2020 Beginning amortized cost of residential mortgage loans in non-accrual status $ 67 Ending amortized cost of residential mortgage loans in non-accrual status 81 Amortized cost of residential mortgage loans in non-accrual status without a related allowance for credit losses 8 The following represents our commercial mortgage loan portfolio in non-accrual status: (In millions) September 30, 2020 Beginning amortized cost of commercial mortgage loans in non-accrual status $ — Ending amortized cost of commercial mortgage loans in non-accrual status 39 Amortized cost of commercial mortgage loans in non-accrual status without a related allowance for credit losses — |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Table Text Block] | Allowance for Credit Losses — The following table summarizes the activity in the allowance for credit losses for AFS securities by asset type: Three months ended September 30, 2020 Additions Reductions (In millions) Beginning balance Initial credit losses Initial credit losses on PCD securities Securities sold during the period Additions (reductions) to previously impaired securities Ending Balance AFS securities Corporate $ 31 $ 1 $ — $ (2) $ — $ 30 CLO 1 — — — — 1 ABS 2 — — — 1 3 CMBS 10 12 — (1) (2) 19 RMBS 129 2 — (12) (32) 87 Total AFS securities 173 15 — (15) (33) 140 AFS securities – related party CLO 2 1 — (1) — 2 Total AFS securities – related party 2 1 — (1) — 2 Total AFS securities including related party $ 175 $ 16 $ — $ (16) $ (33) $ 142 Nine months ended September 30, 2020 Additions Reductions (In millions) Beginning balance Initial credit losses Initial credit losses on PCD securities Securities sold during the period Additions (reductions) to previously impaired securities Ending Balance AFS securities Corporate $ — $ 32 $ — $ (2) $ — $ 30 CLO — 1 — — — 1 ABS — 5 — — (2) 3 CMBS — 21 — (1) (1) 19 RMBS 17 50 61 (14) (27) 87 Total AFS securities 17 109 61 (17) (30) 140 AFS securities – related party CLO — 2 — (1) 1 2 Total AFS securities – related party — 2 — (1) 1 2 Total AFS securities including related party $ 17 $ 111 $ 61 $ (18) $ (29) $ 142 |
Available-for-sale Securities | September 30, 2020 (In millions) Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS securities US government and agencies $ 71 $ — $ 2 $ — $ 73 US state, municipal and political subdivisions 765 — 163 (1) 927 Foreign governments 311 — 29 — 340 Corporate 46,424 (30) 5,094 (359) 51,129 CLO 8,621 (1) 68 (318) 8,370 ABS 4,255 (3) 136 (188) 4,200 CMBS 2,279 (19) 68 (89) 2,239 RMBS 6,434 (87) 397 (34) 6,710 Total AFS securities 69,160 (140) 5,957 (989) 73,988 AFS securities – related party Corporate 780 — 4 — 784 CLO 1,365 (2) 11 (30) 1,344 ABS 2,716 — 62 (49) 2,729 Total AFS securities – related party 4,861 (2) 77 (79) 4,857 Total AFS securities including related party $ 74,021 $ (142) $ 6,034 $ (1,068) $ 78,845 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: December 31, 2019 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI AFS securities US government and agencies $ 35 $ 1 $ — $ 36 $ — US state, municipal and political subdivisions 1,322 220 (1) 1,541 — Foreign governments 298 29 — 327 — Corporate 44,106 3,332 (210) 47,228 1 CLO 7,524 21 (196) 7,349 — ABS 5,018 124 (24) 5,118 4 CMBS 2,304 104 (8) 2,400 1 RMBS 6,872 513 (10) 7,375 19 Total AFS securities 67,479 4,344 (449) 71,374 25 AFS securities – related party Corporate 18 1 — 19 — CLO 951 3 (18) 936 — ABS 2,814 37 (2) 2,849 — Total AFS securities – related party 3,783 41 (20) 3,804 — Total AFS securities including related party $ 71,262 $ 4,385 $ (469) $ 75,178 $ 25 |
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: September 30, 2020 (In millions) Amortized Cost Fair Value AFS securities Due in one year or less $ 876 $ 885 Due after one year through five years 7,209 7,636 Due after five years through ten years 11,799 12,771 Due after ten years 27,687 31,177 CLO, ABS, CMBS and RMBS 21,589 21,519 Total AFS securities 69,160 73,988 AFS securities – related party Due after one year through five years 34 36 Due after ten years 746 748 CLO and ABS 4,081 4,073 Total AFS securities – related party 4,861 4,857 Total AFS securities including related party $ 74,021 $ 78,845 |
Schedule of Unrealized Loss on Investments [Table Text Block] | The following summarizes the fair value and gross unrealized losses for AFS securities, including related party, aggregated by asset type and length of time the fair value has remained below amortized cost: December 31, 2019 Less than 12 months 12 months or more Total (In millions) Fair Value Gross Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS securities US government and agencies $ 3 $ — $ — $ — $ 3 $ — US state, municipal and political subdivisions 78 (1) 10 — 88 (1) Corporate 2,898 (140) 902 (70) 3,800 (210) CLO 1,959 (38) 3,241 (158) 5,200 (196) ABS 642 (6) 255 (18) 897 (24) CMBS 220 (4) 41 (4) 261 (8) RMBS 445 (6) 163 (4) 608 (10) Total AFS securities 6,245 (195) 4,612 (254) 10,857 (449) AFS securities – related party CLO 362 (7) 242 (11) 604 (18) ABS 357 (2) — — 357 (2) Total AFS securities – related party 719 (9) 242 (11) 961 (20) Total AFS securities including related party $ 6,964 $ (204) $ 4,854 $ (265) $ 11,818 $ (469) |
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, for which an allowance for credit losses has not been recorded, aggregated by asset type and length of time the fair value has remained below amortized cost: September 30, 2020 Less than 12 months 12 months or more Total (In millions) Fair Value Gross Fair Value Gross Fair Value Gross AFS securities US government and agencies $ 9 $ — $ — $ — $ 9 $ — US state, municipal and political subdivisions 50 — 8 (1) 58 (1) Foreign governments 4 — — — 4 — Corporate 5,899 (248) 414 (57) 6,313 (305) CLO 2,475 (73) 3,118 (232) 5,593 (305) ABS 1,238 (130) 82 (26) 1,320 (156) CMBS 685 (60) 23 (20) 708 (80) RMBS 540 (16) 25 (1) 565 (17) Total AFS securities 10,900 (527) 3,670 (337) 14,570 (864) AFS securities – related party CLO 766 (15) 232 (15) 998 (30) ABS 1,534 (49) — — 1,534 (49) Total AFS securities – related party 2,300 (64) 232 (15) 2,532 (79) Total AFS securities including related party $ 13,200 $ (591) $ 3,902 $ (352) $ 17,102 $ (943) |
Net Investment Income | Net Investment Income —Net investment income by asset class consists of the following: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 AFS securities $ 776 $ 760 $ 2,403 $ 2,276 Trading securities 47 48 137 139 Equity securities 4 4 10 11 Mortgage loans 184 173 545 483 Investment funds 148 96 242 245 Funds withheld at interest 81 106 165 403 Other 83 32 158 116 Investment revenue 1,323 1,219 3,660 3,673 Investment expenses (114) (129) (370) (319) Net investment income $ 1,209 $ 1,090 $ 3,290 $ 3,354 |
Investment Related Gains (Losses) | Investment Related Gains (Losses) —Investment related gains (losses) by asset class consists of the following: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 AFS securities Gross realized gains on investment activity $ 192 $ 47 $ 424 $ 120 Gross realized losses on investment activity (178) (21) (378) (38) Net realized investment gains on AFS securities 14 26 46 82 Net recognized investment gains (losses) on trading securities 24 48 (8) 183 Net recognized investment gains (losses) on equity securities 12 (4) (8) 15 Derivative gains 1,648 620 959 3,493 Provision for credit losses 84 — (205) — Other gains (losses) 15 (25) (11) (19) Investment related gains (losses) $ 1,797 $ 665 $ 773 $ 3,754 The following table summarizes the change in unrealized gains (losses) on trading and equity securities we held as of the respective period end: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Trading securities $ 19 $ 46 $ 81 $ 215 Trading securities – related party 1 4 (42) (11) Equity securities 11 — (9) 20 Equity securities – related party — — — (2) |
Purchased Credit Impaired (PCI) Investments | Purchased Financial Assets with Credit Deterioration —The following table summarizes our PCD investment purchases with the following amounts at the time of purchase: Three months ended September 30, 2020 Nine months ended September 30, 2020 (In millions) Fixed maturity securities Mortgage loans Fixed maturity securities Mortgage loans Purchase price $ — $ 142 $ 239 $ 142 Allowance for credit losses at acquisition — 3 61 3 Discount (premiums) attributable to other factors — — 34 — Par value $ — $ 145 $ 334 $ 145 |
Mortgage Loans, Net | Mortgage Loans, including related party —Mortgage loans, net of allowances, consists of the following: (In millions) September 30, 2020 December 31, 2019 Commercial mortgage loans $ 11,194 $ 10,422 Commercial mortgage loans under development 196 93 Total commercial mortgage loans 11,390 10,515 Allowance for credit losses on commercial mortgage loans (232) (10) Commercial mortgage loans, net of allowances 11,158 10,505 Residential mortgage loans 4,169 4,455 Allowance for credit losses on residential mortgage loans (96) (1) Residential mortgage loans, net of allowances 4,073 4,454 Mortgage loans, net of allowances $ 15,231 $ 14,959 The distribution of commercial mortgage loans, including those under development, net of allowances, by property type and geographic region, is as follows: September 30, 2020 December 31, 2019 (In millions, except for percentages) Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total Property type Office building $ 3,526 31.6 % $ 2,899 27.6 % Retail 2,029 18.2 % 2,182 20.8 % Apartment 2,335 20.9 % 2,142 20.4 % Hotels 1,182 10.6 % 1,104 10.5 % Industrial 1,407 12.6 % 1,448 13.8 % Other commercial 679 6.1 % 730 6.9 % Total commercial mortgage loans $ 11,158 100.0 % $ 10,505 100.0 % US Region East North Central $ 1,176 10.5 % $ 1,036 9.9 % East South Central 404 3.6 % 428 4.1 % Middle Atlantic 3,058 27.4 % 2,580 24.6 % Mountain 482 4.3 % 528 5.0 % New England 330 3.0 % 340 3.2 % Pacific 2,577 23.1 % 2,502 23.8 % South Atlantic 1,848 16.6 % 1,920 18.3 % West North Central 147 1.3 % 146 1.4 % West South Central 642 5.8 % 791 7.5 % Total US Region 10,664 95.6 % 10,271 97.8 % International Region 494 4.4 % 234 2.2 % Total commercial mortgage loans $ 11,158 100.0 % $ 10,505 100.0 % Our residential mortgage loan portfolio includes first lien residential mortgage loans collateralized by properties in various geographic locations and is summarized by proportion of the portfolio in the following table: September 30, 2020 December 31, 2019 US States California 25.8 % 27.0 % Florida 13.2 % 12.7 % Texas 4.8 % 6.2 % New York 5.2 % 3.3 % Other 1 36.5 % 38.4 % Total US residential mortgage loan percentage 85.5 % 87.6 % International – Ireland 13.9 % 12.4 % International – Other 2 0.6 % — % 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. 2 Represents all other countries, with each individual country comprising less than 5% of the portfolio. |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Loan Valuation Allowance — The allowances for our mortgage loan portfolio and other loans is summarized as follows: Three months ended September 30, 2020 Nine months ended September 30, 2020 (In millions) Commercial Mortgage Residential Mortgage Other Investments Total Commercial Mortgage Residential Mortgage Other Investments Total Beginning balance $ 294 $ 85 $ 20 $ 399 $ 10 $ 1 $ — $ 11 Adoption of accounting standard — — — — 167 43 11 221 Provision (reversal) for expected credit losses (62) 8 (7) (61) 55 50 2 107 Initial credit losses on PCD loans — 3 — 3 — 3 — 3 Loans charged-off — — — — — (1) — (1) Ending balance $ 232 $ 96 $ 13 $ 341 $ 232 $ 96 $ 13 $ 341 |
Credit Quality Indicators of the Commercial Mortgage Portfolio | The following represents the loan-to-value ratio of the commercial mortgage loan portfolio, excluding those under development, by origination year: September 30, 2020 (In millions) 2020 2019 2018 2017 2016 Prior Total Less than 50% $ 282 $ 611 $ 207 $ 200 $ 45 $ 1,250 $ 2,595 50% to 60% 249 1,215 733 277 40 162 2,676 61% to 70% 539 1,978 1,430 475 46 71 4,539 71% to 80% 331 574 287 95 — 45 1,332 81% to 100% 13 — — — — — 13 Greater than 100% — — — — — 39 39 Commercial mortgage loans $ 1,414 $ 4,378 $ 2,657 $ 1,047 $ 131 $ 1,567 $ 11,194 The following represents the loan-to-value ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances: (In millions) December 31, 2019 Less than 50% $ 2,640 50% to 60% 2,486 61% to 70% 4,093 71% to 80% 1,162 81% to 100% 31 Commercial mortgage loans $ 10,412 The debt service coverage ratio 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. Debt service coverage ratios are updated as more recent financial statements become available, at least annually or as frequently as quarterly in some cases. The following represents the debt service coverage ratio of the commercial mortgage loan portfolio, excluding those under development, by origination year: September 30, 2020 (In millions) 2020 2019 2018 2017 2016 Prior Total Greater than 1.20x $ 1,039 $ 3,413 $ 2,657 $ 993 $ 130 $ 1,494 $ 9,726 1.00x – 1.20x 375 965 — 31 1 66 1,438 Less than 1.00x — — — 23 — 7 30 Commercial mortgage loans $ 1,414 $ 4,378 $ 2,657 $ 1,047 $ 131 $ 1,567 $ 11,194 The following represents the debt service coverage ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances: (In millions) December 31, 2019 Greater than 1.20x $ 9,212 1.00x – 1.20x 1,166 Less than 1.00x 34 Commercial mortgage loans $ 10,412 |
Investment Funds | The following summarizes our investment funds, including related party: September 30, 2020 December 31, 2019 (In millions, except for percentages) Carrying value Percent of total Carrying value Percent of total Investment funds Real estate $ 290 40.2 % $ 277 36.9 % Credit funds 110 15.2 % 153 20.4 % Private equity 257 35.5 % 236 31.5 % Real assets 66 9.1 % 83 11.1 % Natural resources — — % 1 0.1 % Total investment funds 723 100.0 % 750 100.0 % Investment funds – related parties Differentiated investments MidCap FinCo Designated Activity Company (MidCap) 1 — — % 547 15.4 % AmeriHome Mortgage Company, LLC (AmeriHome) 2 666 13.9 % 487 13.7 % Catalina Holdings Ltd. (Catalina) 317 6.6 % 271 7.6 % Athora Holding Ltd. (Athora) 1 572 11.9 % 132 3.7 % Venerable Holdings, Inc. (Venerable) 1 108 2.2 % 99 2.8 % Other 272 5.7 % 222 6.3 % Total differentiated investments 1,935 40.3 % 1,758 49.5 % Real estate 686 14.3 % 853 24.0 % Credit funds 373 7.7 % 370 10.4 % Private equity 257 5.3 % 105 3.0 % Real assets 196 4.1 % 182 5.1 % Natural resources 101 2.1 % 163 4.6 % Public equities 62 1.3 % 119 3.4 % Investment in Apollo 1 1,198 24.9 % — — % Total investment funds – related parties 4,808 100.0 % 3,550 100.0 % Total investment funds including related party $ 5,531 $ 4,300 1 See further discussion on MidCap, Athora, Venerable and our investment in Apollo in Note 11 – Related Parties. 2 Our AmeriHome investment is held indirectly through A-A Mortgage Opportunities, L.P. (A-A Mortgage). See further discussion on A-A Mortgage and AmeriHome in Note 11 – Related Parties. Nine months ended September 30, (In millions) 2020 2019 Net income $ 334 $ 88 |
Schedule of Variable Interest Entities | The following summarizes the carrying value and maximum loss exposure of these non-consolidated investments: September 30, 2020 December 31, 2019 (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment funds $ 723 $ 1,183 $ 750 $ 1,265 Investment in related parties – investment funds 4,808 7,256 3,550 5,955 Investment in fixed maturity securities 21,930 22,000 22,694 22,170 Investment in related parties – fixed maturity securities 6,218 6,586 4,570 4,878 Investment in related parties – equity securities 50 50 58 58 Total non-consolidated investments $ 33,729 $ 37,075 $ 31,622 $ 34,326 |
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block] | The following table summarizes the maturities of our repurchase agreements: September 30, 2020 Remaining Contractual Maturity (In millions) Overnight and continuous Less than 30 days 30-90 days 91 days – 1 year Greater than 1 year Total Payables for repurchase agreements 1 $ — $ 500 $ — $ — $ 598 $ 1,098 1 Included in payables for collateral on derivatives and securities to repurchase on the condensed consolidated balance sheets. December 31, 2019 Remaining Contractual Maturity (In millions) Overnight and continuous Less than 30 days 30-90 days 91 days – 1 year Greater than 1 year Total Payables for repurchase agreements 1 $ — $ 102 $ 200 $ 210 $ — $ 512 1 Included in payables for collateral on derivatives and securities to repurchase on the condensed consolidated balance sheets. The following table summarizes the securities pledged as collateral for repurchase agreements: September 30, 2020 December 31, 2019 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value AFS securities – Corporate $ 1,085 $ 1,249 $ 498 $ 534 |
Financing Receivable, Past Due [Table Text Block] | The following represents our residential loan portfolio by origination year and performance status: September 30, 2020 (In millions) 2020 2019 2018 2017 2016 Prior Total Current (less than 30 days past due) $ 384 $ 1,016 $ 1,852 $ 507 $ 144 $ 7 $ 3,910 30 to 59 days past due 23 20 35 39 8 — 125 60 to 89 days past due 6 11 21 9 6 — 53 Over 90 days past due 1 12 21 32 13 2 81 Total residential mortgages $ 414 $ 1,059 $ 1,929 $ 587 $ 171 $ 9 $ 4,169 Commercial mortgage loans – The following represents our commercial mortgage loan portfolio by origination year and loan performance status: September 30, 2020 (In millions) 2020 2019 2018 2017 2016 Prior Total Current (less than 30 days past due) $ 1,398 $ 4,399 $ 2,750 $ 1,047 $ 131 $ 1,546 $ 11,271 30 to 59 days past due 98 — — — — — 98 60 to 89 days past due — — — — — 21 21 Total commercial mortgages $ 1,496 $ 4,399 $ 2,750 $ 1,047 $ 131 $ 1,567 $ 11,390 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative [Line Items] | |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following is a summary of the gains (losses) related to the derivatives and related hedged items in fair value hedge relationships, which are included in investment related gains (losses) on the condensed consolidated statements of income: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Derivatives $ (52) $ 13 $ (60) $ 13 Related AFS securities 50 (11) 59 (12) Total gains (losses) on derivatives and related hedged items $ (2) $ 2 $ (1) $ 1 |
Notional Amount and Fair Value of Derivative Instruments | The following table presents the notional amount and fair value of derivative instruments: September 30, 2020 December 31, 2019 Notional Amount Fair Value Notional Amount Fair Value (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedges Foreign currency swaps 3,268 $ 243 $ 45 3,158 $ 113 $ 56 Foreign currency forwards 1,736 15 1 717 1 9 Foreign currency forwards on net investments 136 — 1 139 — 2 Total derivatives designated as hedges 258 47 114 67 Derivatives not designated as hedges Equity options 53,997 2,401 26 49,549 2,746 5 Futures 16 48 4 8 10 1 Total return swaps 72 1 — 106 6 — Foreign currency swaps 1,510 25 8 35 2 1 Interest rate swaps 911 11 41 776 3 4 Credit default swaps 10 — 5 10 — 3 Foreign currency forwards 2,963 27 16 1,924 7 16 Embedded derivatives Funds withheld including related party 1,980 50 1,395 31 Interest sensitive contract liabilities — 11,741 — 10,942 Total derivatives not designated as hedges 4,493 11,891 4,169 11,003 Total derivatives $ 4,751 $ 11,938 $ 4,283 $ 11,070 |
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 September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Equity options $ 606 $ 77 $ (303) $ 1,365 Futures 50 (3) 63 (17) Swaps 29 8 9 37 Foreign currency forwards (114) 42 (70) 47 Embedded derivatives on funds withheld 1,077 496 1,260 2,061 Amounts recognized in investment related gains (losses) 1,648 620 959 3,493 Embedded derivatives in indexed annuity products 1 (553) (265) (910) (1,920) Total gains (losses) on derivatives not designated as hedges $ 1,095 $ 355 $ 49 $ 1,573 1 Included in interest sensitive contract benefits on the condensed consolidated statements of income. |
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 September 30, 2020 Derivative assets $ 2,771 $ (61) $ (2,564) $ 146 $ (41) $ 105 Derivative liabilities (147) 61 77 (9) — (9) December 31, 2019 Derivative assets $ 2,888 $ (67) $ (2,743) $ 78 $ (145) $ (67) Derivative liabilities (97) 67 31 1 — 1 1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the condensed consolidated balance sheets. As of September 30, 2020 and December 31, 2019, 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 September 30, 2020 Derivative assets $ 2,771 $ (61) $ (2,564) $ 146 $ (41) $ 105 Derivative liabilities (147) 61 77 (9) — (9) December 31, 2019 Derivative assets $ 2,888 $ (67) $ (2,743) $ 78 $ (145) $ (67) Derivative liabilities (97) 67 31 1 — 1 1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the condensed consolidated balance sheets. As of September 30, 2020 and December 31, 2019, amounts not subject to master netting or similar agreements were immaterial. 2 Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the condensed consolidated balance sheets. 3 For non-cash collateral received, we do not recognize the collateral on our balance sheet unless the obligor (transferor) has defaulted under the terms of the secured contract and is no longer entitled to redeem the pledged asset. Amounts do not include any excess of collateral pledged or received. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following summarizes the carrying value and maximum loss exposure of these non-consolidated investments: September 30, 2020 December 31, 2019 (In millions) Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment funds $ 723 $ 1,183 $ 750 $ 1,265 Investment in related parties – investment funds 4,808 7,256 3,550 5,955 Investment in fixed maturity securities 21,930 22,000 22,694 22,170 Investment in related parties – fixed maturity securities 6,218 6,586 4,570 4,878 Investment in related parties – equity securities 50 50 58 58 Total non-consolidated investments $ 33,729 $ 37,075 $ 31,622 $ 34,326 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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: September 30, 2020 (In millions) Total NAV Level 1 Level 2 Level 3 Assets AFS securities US government and agencies $ 73 $ — $ 73 $ — $ — US state, municipal and political subdivisions 927 — — 893 34 Foreign governments 340 — — 339 1 Corporate 51,129 — — 50,229 900 CLO 8,370 — — 8,179 191 ABS 4,200 — — 3,221 979 CMBS 2,239 — — 2,169 70 RMBS 6,710 — — 6,710 — Total AFS securities 73,988 — 73 71,740 2,175 Trading securities US government and agencies 11 — 8 3 — US state, municipal and political subdivisions 115 — — 115 — Corporate 1,532 — — 1,526 6 CLO 3 — — — 3 ABS 119 — — 84 35 CMBS 52 — — 52 — RMBS 237 — — 178 59 Total trading securities 2,069 — 8 1,958 103 Equity securities 265 — 29 220 16 Mortgage loans 19 — — — 19 Investment funds 156 139 — — 17 Funds withheld at interest – embedded derivative 1,259 — — — 1,259 Derivative assets 2,771 — 48 2,723 — Short-term investments 165 — 45 110 10 Other investments 109 — — 109 — Cash and cash equivalents 7,548 — 7,548 — — Restricted cash 1,226 — 1,226 — — Investments in related parties AFS securities Corporate 784 — — 20 764 CLO 1,344 — — 1,333 11 ABS 2,729 — — 666 2,063 Total AFS securities – related party 4,857 — — 2,019 2,838 Trading securities CLO 52 — — 24 28 ABS 1,345 — — — 1,345 Total trading securities – related party 1,397 — — 24 1,373 Equity securities 50 — — — 50 Investment funds 1,850 80 — — 1,770 Funds withheld at interest – embedded derivative 721 — — — 721 Reinsurance recoverable 2,155 — — — 2,155 Total assets measured at fair value $ 100,605 $ 219 $ 8,977 $ 78,903 $ 12,506 (Continued) September 30, 2020 (In millions) Total NAV Level 1 Level 2 Level 3 Liabilities Interest sensitive contract liabilities Embedded derivative $ 11,741 $ — $ — $ — $ 11,741 Universal life benefits 1,363 — — — 1,363 Future policy benefits AmerUs Life Insurance Company (AmerUs) Closed Block 1,577 — — — 1,577 Indianapolis Life Insurance Company (ILICO) Closed Block and life benefits 777 — — — 777 Derivative liabilities 147 — 5 137 5 Funds withheld liability – embedded derivative 50 — — 50 — Total liabilities measured at fair value $ 15,655 $ — $ 5 $ 187 $ 15,463 (Concluded) December 31, 2019 (In millions) Total NAV Level 1 Level 2 Level 3 Assets AFS securities US government and agencies $ 36 $ — $ 36 $ — $ — US state, municipal and political subdivisions 1,541 — — 1,501 40 Foreign governments 327 — — 327 — Corporate 47,228 — — 46,503 725 CLO 7,349 — — 7,228 121 ABS 5,118 — — 3,744 1,374 CMBS 2,400 — — 2,354 46 RMBS 7,375 — — 7,375 — Total AFS securities 71,374 — 36 69,032 2,306 Trading securities US government and agencies 11 — 8 3 — US state, municipal and political subdivisions 135 — — 135 — Corporate 1,456 — — 1,456 — CLO 6 — — — 6 ABS 108 — — 92 16 CMBS 51 — — 51 — RMBS 303 — — 251 52 Total trading securities 2,070 — 8 1,988 74 Equity securities 247 — 43 201 3 Mortgage loans 27 — — — 27 Investment funds 154 132 — — 22 Funds withheld at interest – embedded derivative 801 — — — 801 Derivative assets 2,888 — 10 2,878 — Short-term investments 406 — 46 319 41 Other investments 93 — — 93 — Cash and cash equivalents 4,240 — 4,240 — — Restricted cash 402 — 402 — — (Continued) December 31, 2019 (In millions) Total NAV Level 1 Level 2 Level 3 Investments in related parties AFS securities Corporate 19 — — 19 — CLO 936 — — 936 — ABS 2,849 — — 525 2,324 Total AFS securities – related party 3,804 — — 1,480 2,324 Trading securities CLO 74 — — 36 38 ABS 711 — — — 711 Total trading securities – related party 785 — — 36 749 Equity securities 64 — — — 64 Investment funds 819 687 — — 132 Funds withheld at interest – embedded derivative 594 — — — 594 Reinsurance recoverable 1,821 — — — 1,821 Total assets measured at fair value $ 90,589 $ 819 $ 4,785 $ 76,027 $ 8,958 Liabilities Interest sensitive contract liabilities Embedded derivative $ 10,942 $ — $ — $ — $ 10,942 Universal life benefits 1,050 — — — 1,050 Future policy benefits AmerUs Closed Block 1,546 — — — 1,546 ILICO Closed Block and life benefits 755 — — — 755 Derivative liabilities 97 — 1 93 3 Funds withheld liability – embedded derivative 31 — — 31 — Total liabilities measured at fair value $ 14,421 $ — $ 1 $ 124 $ 14,296 (Concluded) |
Summary of Fair Value Option | The following represents the gains (losses) recorded for instruments for which we have elected the fair value option, including related parties: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Trading securities $ 24 $ 48 $ (8) $ 183 Mortgage loans — — — 1 Investment funds (57) 3 109 3 Future policy benefits (4) (37) (31) (129) Total gains (losses) $ (37) $ 14 $ 70 $ 58 The following summarizes information for fair value option mortgage loans: (In millions) September 30, 2020 December 31, 2019 Unpaid principal balance $ 17 $ 25 Mark to fair value 2 2 Fair value $ 19 $ 27 |
Reconciliation of Level 3 Assets Measured on a Recurring Basis | The following tables are reconciliations for all Level 3 assets and liabilities measured at fair value on a recurring basis. All transfers in and out of Level 3 are based on changes in the availability of pricing sources, as described in the valuation methods above. Three months ended September 30, 2020 Total realized and unrealized gains (losses) (In millions) Beginning balance Included in income Included in OCI Net purchases, issuances, sales and settlements Net transfers in (out) Ending balance Total gains (losses) included in earnings 1 Total gains (losses) included in OCI 1 Assets AFS securities US state, municipal and political subdivisions $ 40 $ — $ (1) $ (5) $ — $ 34 $ — $ (1) Foreign governments — — — 1 — 1 — — Corporate 874 (26) 62 39 (49) 900 — 75 CLO 160 — 2 (7) 36 191 — 2 ABS 868 (4) 12 (44) 147 979 — 13 CMBS 49 — 5 — 16 70 — 5 RMBS 16 — 2 (2) (16) — — — Trading securities Corporate 6 — — — — 6 — — CLO 3 — — — — 3 — — ABS — — — 35 — 35 — — RMBS 55 (3) — — 7 59 — — Equity securities 6 — — 10 — 16 2 — Mortgage loans 25 — — (6) — 19 — — Investment funds 17 — — — — 17 — — Funds withheld at interest – embedded derivative 763 496 — — — 1,259 — — Short-term investments 114 — — (16) (88) 10 — — Investments in related parties AFS securities Corporate — 1 2 761 — 764 — 2 CLO — — — 11 — 11 — — ABS 2,061 8 25 (31) — 2,063 — 25 Trading securities CLO 45 3 — — (20) 28 3 — ABS 824 14 — 507 — 1,345 13 — Equity securities 52 — — (2) — 50 1 — Investment funds 1,810 (56) — 16 — 1,770 — — Funds withheld at interest – embedded derivative 560 161 — — — 721 — — Reinsurance recoverable 2,099 56 — — — 2,155 — — Total Level 3 assets $ 10,447 $ 650 $ 109 $ 1,267 $ 33 $ 12,506 $ 19 $ 121 Liabilities Interest sensitive contract liabilities Embedded derivative $ (11,140) $ (553) $ — $ (48) $ — $ (11,741) $ — $ — Universal life benefits (1,323) (40) — — — (1,363) — — Future policy benefits AmerUs Closed Block (1,573) (4) — — — (1,577) — — ILICO Closed Block and life benefits (761) (16) — — — (777) — — Derivative liabilities (5) — — — — (5) — — Total Level 3 liabilities $ (14,802) $ (613) $ — $ (48) $ — $ (15,463) $ — $ — 1 Related to instruments held at end of period. Three months ended September 30, 2019 Total realized and unrealized gains (losses) (In millions) Beginning balance Included in income Included in OCI Net purchases, issuances, sales and settlements Net transfers in (out) Ending balance Total gains (losses) included in earnings 1 Assets AFS securities US state, municipal and political subdivisions $ 40 $ — $ — $ — $ — $ 40 $ — Corporate 821 (3) 10 189 (70) 947 — CLO 200 — 1 34 (104) 131 — ABS 1,396 1 12 16 (137) 1,288 — CMBS 206 — 3 195 (73) 331 — Trading securities Corporate 6 — — — (6) — — CLO 7 (1) — — — 6 — ABS 6 — — (1) 78 83 — RMBS 46 (5) — 15 35 91 (2) Equity securities 3 — — — (2) 1 — Mortgage loans 32 — — (4) — 28 — Investment funds 25 (1) — (2) — 22 (1) Funds withheld at interest – embedded derivative 704 100 — — — 804 — Short-term investments 45 — — 181 — 226 — Investments in related parties AFS securities CLO 37 — — — (37) — — ABS 399 — 8 587 — 994 — Trading securities CLO 95 (5) — (7) (23) 60 — ABS 218 4 — 2 — 224 5 Equity securities 350 6 — 31 — 387 — Investment funds 141 (1) — — — 140 1 Funds withheld at interest – embedded derivative 501 154 — — — 655 — Reinsurance recoverable 1,834 120 — — — 1,954 — Total Level 3 assets $ 7,112 $ 369 $ 34 $ 1,236 $ (339) $ 8,412 $ 3 Liabilities Interest sensitive contract liabilities Embedded derivative $ (9,905) $ (265) $ — $ (103) $ — $ (10,273) $ — Universal life benefits (1,051) (91) — — — (1,142) — Future policy benefits AmerUs Closed Block (1,535) (37) — — — (1,572) — ILICO Closed Block and life benefits (769) (28) — — — (797) — Derivative liabilities (4) — — — — (4) — Total Level 3 liabilities $ (13,264) $ (421) $ — $ (103) $ — $ (13,788) $ — 1 Related to instruments held at end of period. Nine months ended September 30, 2020 Total realized and unrealized gains (losses) (In millions) Beginning balance Included in income Included in OCI Net purchases, issuances, sales and settlements Net transfers in (out) Ending balance Total gains (losses) included in income 1 Total gains (losses) included in OCI 1 Assets AFS securities US state, municipal and political subdivisions $ 40 $ — $ — $ (6) $ — $ 34 $ — $ — Foreign governments — — — 1 — 1 — — Corporate 725 1 (1) 118 57 900 — (1) CLO 121 — — 56 14 191 — — ABS 1,374 19 (71) (301) (42) 979 — (69) CMBS 46 (5) (5) (5) 39 70 — (5) Trading securities Corporate — — — — 6 6 — — CLO 6 (3) — — — 3 (1) — ABS 16 — — 19 — 35 — — RMBS 52 (4) — — 11 59 5 — Equity securities 3 3 — 10 — 16 3 — Mortgage loans 27 — — (8) — 19 — — Investment funds 22 (5) — — — 17 (4) — Funds withheld at interest – embedded derivative 801 458 — — — 1,259 — — Short-term investments 41 — — (31) — 10 — — Investments in related parties AFS securities Corporate — 1 2 761 — 764 — 2 CLO — — — 11 — 11 — — ABS 2,324 9 (20) (85) (165) 2,063 — (20) Trading securities CLO 38 (11) — 1 — 28 (11) — ABS 711 (13) — 647 — 1,345 (14) — Equity securities 64 (5) — (3) (6) 50 (5) — Investment funds 132 113 — 1,525 — 1,770 113 — Funds withheld at interest – embedded derivative 594 127 — — — 721 — — Reinsurance recoverable 1,821 334 — — — 2,155 — — Total Level 3 assets $ 8,958 $ 1,019 $ (95) $ 2,710 $ (86) $ 12,506 $ 86 $ (93) Liabilities Interest sensitive contract liabilities Embedded derivative $ (10,942) $ (910) $ — $ 111 $ — $ (11,741) $ — $ — Universal life benefits (1,050) (313) — — — (1,363) — — Future policy benefits AmerUs Closed Block (1,546) (31) — — — (1,577) — — ILICO Closed Block and life benefits (755) (22) — — — (777) — — Derivative liabilities (3) (2) — — — (5) (2) — Total Level 3 liabilities $ (14,296) $ (1,278) $ — $ 111 $ — $ (15,463) $ (2) $ — 1 Related to instruments held at end of period. Nine months ended September 30, 2019 Total realized and unrealized gains (losses) (In millions) Beginning balance Included in income Included in OCI Net purchases, issuances, sales and settlements Net transfers in (out) Ending balance Total gains (losses) included in earnings 1 Assets AFS securities US state, municipal and political subdivisions $ — $ — $ — $ 40 $ — $ 40 $ — Corporate 898 (2) 20 164 (133) 947 — CLO 107 — 3 60 (39) 131 — ABS 1,615 6 43 43 (419) 1,288 — CMBS 187 1 7 154 (18) 331 — RMBS 56 — 4 2 (62) — — Trading securities CLO 1 (1) — — 6 6 6 ABS — — — 5 78 83 — RMBS 134 (13) — 15 (45) 91 3 Equity securities 3 — — — (2) 1 — Mortgage loans 32 1 — (5) — 28 1 Investment funds 29 (2) — (5) — 22 (2) Funds withheld at interest – embedded derivative 57 747 — — — 804 — Short-term investments — — — 226 — 226 — Investments in related parties AFS securities, ABS 328 — 21 748 (103) 994 — Trading securities CLO 113 (7) — (54) 8 60 2 ABS 149 (13) — (15) 103 224 (13) Equity securities 133 15 — 239 — 387 (2) Investment funds 120 1 — 19 — 140 3 Funds withheld at interest – embedded derivative (110) 765 — — — 655 — Reinsurance recoverable 1,676 278 — — — 1,954 — Total Level 3 assets $ 5,528 $ 1,776 $ 98 $ 1,636 $ (626) $ 8,412 $ (2) Liabilities Interest sensitive contract liabilities Embedded derivative $ (7,969) $ (1,920) $ — $ (384) $ — $ (10,273) $ — Universal life benefits (932) (210) — — — (1,142) — Future policy benefits AmerUs Closed Block (1,443) (129) — — — (1,572) — ILICO Closed Block and life benefits (730) (67) — — — (797) — Derivative liabilities (4) — — — — (4) — Total Level 3 liabilities $ (11,078) $ (2,326) $ — $ (384) $ — $ (13,788) $ — 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, and net transfers in (out) shown above: Three months ended September 30, 2020 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Transfers in Transfers out Net transfers in (out) Assets AFS securities US state, municipal and political subdivisions $ — $ — $ (5) $ — $ (5) $ — $ — $ — Foreign governments 1 — — — 1 — — — Corporate 58 — — (19) 39 157 (206) (49) CLO 12 — (18) (1) (7) 36 — 36 ABS 47 — (43) (48) (44) 218 (71) 147 CMBS — — — — — 39 (23) 16 RMBS — — (1) (1) (2) — (16) (16) Trading securities ABS 35 — — — 35 — — — RMBS — — — — — 8 (1) 7 Equity securities 10 — — — 10 — — — Mortgage loans — — — (6) (6) — — — Short-term investments 1 — (7) (10) (16) — (88) (88) Investments in related parties AFS securities Corporate 761 — — — 761 — — — CLO 11 — — — 11 — — — ABS 2 — (10) (23) (31) — — — Trading securities CLO — — — — — 4 (24) (20) ABS 517 — (10) — 507 — — — Equity securities 2 — (1) (3) (2) — — — Investment funds 16 — — — 16 — — — Total Level 3 assets $ 1,473 $ — $ (95) $ (111) $ 1,267 $ 462 $ (429) $ 33 Liabilities Interest sensitive contract liabilities – embedded derivative $ — $ (202) $ — $ 154 $ (48) $ — $ — $ — Total Level 3 liabilities $ — $ (202) $ — $ 154 $ (48) $ — $ — $ — Three months ended September 30, 2019 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Transfers in Transfers out Net transfers in (out) Assets AFS securities Corporate $ 199 $ — $ — $ (10) $ 189 $ 1 $ (71) $ (70) CLO 37 — — (3) 34 — (104) (104) ABS 64 — (21) (27) 16 — (137) (137) CMBS 251 — (4) (52) 195 — (73) (73) Trading securities Corporate — — — — — — (6) (6) ABS — — — (1) (1) 78 — 78 RMBS 15 — — — 15 35 — 35 Equity securities — — — — — — (2) (2) Mortgage loans — — — (4) (4) — — — Investment funds — — (2) — (2) — — — Short-term investments 200 — — (19) 181 — — — Investments in related parties AFS securities CLO — — — — — — (37) (37) ABS 587 — — — 587 — — — Trading securities CLO — — (7) — (7) — (23) (23) ABS 2 — — — 2 — — — Equity securities 31 — — — 31 — — — Total Level 3 assets $ 1,386 $ — $ (34) $ (116) $ 1,236 $ 114 $ (453) $ (339) Liabilities Interest sensitive contract liabilities – embedded derivative $ — $ (222) $ — $ 119 $ (103) $ — $ — $ — Total Level 3 liabilities $ — $ (222) $ — $ 119 $ (103) $ — $ — $ — Nine months ended September 30, 2020 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Transfers in Transfers out Net transfers in (out) Assets AFS securities US state, municipal and political subdivisions $ — $ — $ (5) $ (1) $ (6) $ — $ — $ — Foreign governments 1 — — — 1 — — — Corporate 245 — — (127) 118 97 (40) 57 CLO 90 — (25) (9) 56 36 (22) 14 ABS 95 — (6) (390) (301) 64 (106) (42) CMBS — — (4) (1) (5) 39 — 39 Trading securities Corporate — — — — — 6 — 6 ABS 35 — (16) — 19 — — — RMBS — — — — — 12 (1) 11 Equity securities 10 — — — 10 — — — Mortgage loans — — — (8) (8) — — — Short-term investments 1 — (7) (25) (31) — — — Investments in related parties AFS securities Corporate 761 — — — 761 — — — CLO 11 — — — 11 — — — ABS 7 — (15) (77) (85) — (165) (165) Trading securities CLO 13 — (12) — 1 — — — ABS 671 — (10) (14) 647 — — — Equity securities 3 — (2) (4) (3) — (6) (6) Investment funds 1,525 — — — 1,525 — — — Total Level 3 assets $ 3,468 $ — $ (102) $ (656) $ 2,710 $ 254 $ (340) $ (86) Liabilities Interest sensitive contract liabilities – embedded derivative $ — $ (964) $ — $ 1,075 $ 111 $ — $ — $ — Total Level 3 liabilities $ — $ (964) $ — $ 1,075 $ 111 $ — $ — $ — Nine months ended September 30, 2019 (In millions) Purchases Issuances Sales Settlements Net purchases, issuances, sales and settlements Transfers in Transfers out Net transfers in (out) Assets AFS securities US state, municipal and political subdivisions $ 40 $ — $ — $ — $ 40 $ — $ — $ — Corporate 277 — (2) (111) 164 1 (134) (133) CLO 64 — — (4) 60 — (39) (39) ABS 260 — (41) (176) 43 — (419) (419) CMBS 252 — (4) (94) 154 — (18) (18) RMBS 2 — — — 2 — (62) (62) Trading securities CLO — — — — — 6 — 6 ABS 6 — — (1) 5 78 — 78 RMBS 15 — — — 15 34 (79) (45) Equity securities — — — — — — (2) (2) Mortgage loans — — — (5) (5) — — — Investment funds — — (5) — (5) — — — Short-term investments 248 — — (22) 226 — — — Investments in related parties AFS securities, ABS 757 — — (9) 748 — (103) (103) Trading securities CLO — — (54) — (54) 43 (35) 8 ABS — — — (15) (15) 103 — 103 Equity securities 243 — (4) — 239 — — — Investment funds 19 — — — 19 — — — Total Level 3 assets $ 2,183 $ — $ (110) $ (437) $ 1,636 $ 265 $ (891) $ (626) Liabilities Interest sensitive contract liabilities – embedded derivative $ — $ (756) $ — $ 372 $ (384) $ — $ — $ — Total Level 3 liabilities $ — $ (756) $ — $ 372 $ (384) $ — $ — $ — |
Summary of the Unobservable Inputs for the Embedded Derivative of Fixed Indexed Annuities | The following summarizes the unobservable inputs for AFS and trading securities and the embedded derivatives of fixed indexed annuities: September 30, 2020 (In millions, except for percentages) Fair value Valuation technique Unobservable inputs Minimum Maximum Weighted average Impact of an increase in the input on fair value AFS and trading securities $ 5,468 Discounted cash flow Discount 2.0 % 35.0 % 5.7 % 1 Decrease Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives $ 11,741 Option budget method Nonperformance risk 0.1 % 1.5 % 0.8 % 2 Decrease Option budget 0.6 % 3.6 % 1.9 % 3 Increase Surrender rate 5.3 % 9.7 % 7.1 % 4 Decrease December 31, 2019 Fair value Valuation technique Unobservable inputs Minimum Maximum Weighted average Impact of an increase in the input on fair value AFS and trading securities $ 1,289 Discounted cash flow Discount 3.0 % 9.0 % 6.6 % 1 Decrease Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives $ 10,942 Option budget method Nonperformance risk 0.2 % 1.1 % 0.6 % 2 Decrease Option budget 0.7 % 3.7 % 1.9 % 3 Increase Surrender rate 3.5 % 8.1 % 7.1 % 4 Decrease 1 The discount weighted average is calculated based on the relative fair values of the securities. 2 The nonperformance risk weighted average is based on the projected excess benefits of reserves used in the calculation of the embedded derivative. 3 The option budget weighted average is calculated based on the indexed account values. 4 The surrender rate weighted average is calculated based on projected account values. |
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: September 30, 2020 (In millions) Carrying Value Fair Value NAV Level 1 Level 2 Level 3 Financial assets Mortgage loans $ 14,572 $ 15,114 $ — $ — $ — $ 15,114 Investment funds 567 567 567 — — — Policy loans 387 387 — — 387 — Funds withheld at interest 47,334 47,334 — — — 47,334 Other investments 840 852 — — — 852 Investments in related parties Mortgage loans 640 628 — — — 628 Investment funds 2,958 2,958 2,958 — — — Funds withheld at interest 12,332 12,332 — — — 12,332 Other investments 467 489 — — — 489 Total financial assets not carried at fair value $ 80,097 $ 80,661 $ 3,525 $ — $ 387 $ 76,749 Financial liabilities Interest sensitive contract liabilities $ 92,088 $ 96,125 $ — $ — $ — $ 96,125 Long-term debt 1,487 1,099 — — 1,099 — Securities to repurchase 1,098 1,098 — — 1,098 — Funds withheld liability 390 390 — — 390 — Total financial liabilities not carried at fair value $ 95,063 $ 98,712 $ — $ — $ 2,587 $ 96,125 December 31, 2019 (In millions) Carrying Value Fair Value NAV Level 1 Level 2 Level 3 Financial assets Mortgage loans $ 14,279 $ 14,719 $ — $ — $ — $ 14,719 Investment funds 596 596 596 — — — Policy loans 417 417 — — 417 — Funds withheld at interest 14,380 14,380 — — — 14,380 Short-term investments 190 190 — — — 190 Other investments 65 65 — — — 65 Investments in related parties Mortgage loans 653 641 — — — 641 Investment funds 2,731 2,731 2,731 — — — Funds withheld at interest 12,626 12,626 — — — 12,626 Other investments 487 537 — — — 537 Total financial assets not carried at fair value $ 46,424 $ 46,902 $ 3,327 $ — $ 417 $ 43,158 Financial liabilities Interest sensitive contract liabilities $ 57,272 $ 58,027 $ — $ — $ — $ 58,027 Short-term debt 475 475 — — 475 — Long-term debt 992 1,036 — — 1,036 — Securities to repurchase 512 512 — — 512 — Funds withheld liability 377 377 — — 377 — Total financial liabilities not carried at fair value $ 59,628 $ 60,427 $ — $ — $ 2,400 $ 58,027 |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Effects of Reinsurance | The following summarizes the transaction: (In millions) Funds Withheld Liabilities assumed $ 27,439 Less: Net consideration received 28,805 Unearned revenue reserve 1 $ (1,366) 1 Included within interest sensitive contract liabilities on the condensed consolidated balance sheets. The following summarizes the effect of reinsurance on premiums and future policy and other policy benefits on the condensed consolidated statements of income: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Premiums Direct $ 42 $ 2,661 $ 1,424 $ 5,405 Reinsurance assumed 101 57 284 193 Reinsurance ceded (31) (30) (101) (123) Total premiums $ 112 $ 2,688 $ 1,607 $ 5,475 Future policy and other policy benefits Direct $ 385 $ 3,025 $ 2,404 $ 6,481 Reinsurance assumed 161 77 370 313 Reinsurance ceded (107) (147) (305) (399) Total future policy and other policy benefits $ 439 $ 2,955 $ 2,469 $ 6,395 |
Deferred Acquisition Costs, D_2
Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019 $ 3,274 $ 820 $ 914 $ 5,008 Adoption of accounting standard 12 5 5 22 Additions 470 124 — 594 Unlocking (36) (13) (11) (60) Amortization (175) (24) (25) (224) Impact of unrealized investment (gains) losses (116) (45) (14) (175) Balance at September 30, 2020 $ 3,429 $ 867 $ 869 $ 5,165 (In millions) DAC DSI VOBA Total Balance at December 31, 2018 $ 3,921 $ 799 $ 1,187 $ 5,907 Additions 521 187 — 708 Unlocking (117) (9) (24) (150) Amortization (637) (29) (37) (703) Impact of unrealized investment (gains) losses (458) (141) (203) (802) Balance at September 30, 2019 $ 3,230 $ 807 $ 923 $ 4,960 |
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, 2019 $ 3,274 $ 820 $ 914 $ 5,008 Adoption of accounting standard 12 5 5 22 Additions 470 124 — 594 Unlocking (36) (13) (11) (60) Amortization (175) (24) (25) (224) Impact of unrealized investment (gains) losses (116) (45) (14) (175) Balance at September 30, 2020 $ 3,429 $ 867 $ 869 $ 5,165 (In millions) DAC DSI VOBA Total Balance at December 31, 2018 $ 3,921 $ 799 $ 1,187 $ 5,907 Additions 521 187 — 708 Unlocking (117) (9) (24) (150) Amortization (637) (29) (37) (703) Impact of unrealized investment (gains) losses (458) (141) (203) (802) Balance at September 30, 2019 $ 3,230 $ 807 $ 923 $ 4,960 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Short-term Debt [Line Items] | |
Schedule of Short-term Debt [Table Text Block] | Short-term Borrowing —During the second quarter of 2020, we converted $400 million of short-term debt outstanding with the FHLB to funding agreements . See Note 12 – Commitments and Contingencies for further discussion regarding FHLB funding agreements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following represents our basic and diluted earnings per share (EPS) calculations, which are calculated using unrounded amounts: Three months ended September 30, 2020 (In millions, except per share data) Class A Net income available to Athene Holding Ltd. common shareholders – basic and diluted $ 622 Basic weighted average shares outstanding 193.1 Dilutive effect of stock compensation plans 4.0 Diluted weighted average shares outstanding 197.1 Earnings per share Basic $ 3.22 Diluted $ 3.16 Three months ended September 30, 2019 (In millions, except share and per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income available to Athene Holding Ltd. common shareholders – basic and diluted $ 227 $ 38 $ 5 $ 1 $ 2 $ 3 Basic weighted average shares outstanding 151.6 25.4 3.3 0.8 1.0 2.2 Dilutive effect of stock compensation plans 0.4 — — — — 0.3 Diluted weighted average shares outstanding 152.0 25.4 3.3 0.8 1.0 2.5 Earnings per share Basic $ 1.50 $ 1.50 $ 1.50 $ 1.50 $ 1.50 $ 1.50 Diluted $ 1.50 $ 1.50 $ 1.50 $ 1.50 $ 1.50 $ 1.29 Nine months ended September 30, 2020 (In millions, except share and per share data) Class A Class B Class M-1 Class M-2 Class M-3 Class M-4 Net income (loss) available to Athene Holding Ltd. common shareholders – basic and diluted $ 508 $ (98) $ (13) $ (3) $ (4) $ (9) Basic weighted average shares outstanding 182.8 25.4 3.3 0.8 1.0 2.4 Dilutive effect of stock compensation plans 3.1 — — — — — Diluted weighted average shares outstanding 185.9 25.4 3.3 0.8 1.0 2.4 Earnings (loss) per share Basic $ 2.78 $ (3.87) $ (3.87) $ (3.87) $ (3.87) $ (3.87) Diluted $ 2.73 $ (3.87) $ (3.87) $ (3.87) $ (3.87) $ (3.87) Nine months ended September 30, 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 available to Athene Holding Ltd. common shareholders – basic and diluted $ 1,411 $ 228 $ 30 $ 7 $ 9 $ 19 Basic weighted average shares outstanding 157.2 25.4 3.3 0.8 1.0 2.2 Dilutive effect of stock compensation plans 0.4 — — — — 0.3 Diluted weighted average shares outstanding 157.6 25.4 3.3 0.8 1.0 2.5 Earnings per share Basic $ 8.97 $ 8.97 $ 8.97 $ 8.97 $ 8.97 $ 8.97 Diluted $ 8.95 $ 8.97 $ 8.97 $ 8.97 $ 8.97 $ 7.77 |
Shares Excluded from Dilutive Earnings Per Share | The diluted EPS calculations for Class A shares excluded 2.8 million and 32.0 million shares, restricted stock units, options and warrants as of September 30, 2020 and 2019, respectively. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Class of Stock [Line Items] | |
Preferred Stock [Text Block] | We have three series of preferred stock: 6.35% Fixed-to-Floating Rate Perpetual Non-Cumulative Preference Shares, Series A (Series A); 5.625% Fixed Rate Perpetual Non-Cumulative Preference Shares, Series B (Series B); and 6.375% Fixed-Rate Reset Perpetual Non-Cumulative Preference Shares, Series C (Series C) as summarized below: Series A Series B Series C Authorized, issued and outstanding 34,500 13,800 24,000 Liquidation preference per share $ 25,000 $ 25,000 $ 25,000 |
Share Repurchase Authorization | We have three series of preferred stock: 6.35% Fixed-to-Floating Rate Perpetual Non-Cumulative Preference Shares, Series A (Series A); 5.625% Fixed Rate Perpetual Non-Cumulative Preference Shares, Series B (Series B); and 6.375% Fixed-Rate Reset Perpetual Non-Cumulative Preference Shares, Series C (Series C) as summarized below: Series A Series B Series C Authorized, issued and outstanding 34,500 13,800 24,000 Liquidation preference per share $ 25,000 $ 25,000 $ 25,000 The following summarizes the activity on our share repurchase authorization: Nine months ended September 30, (In millions) 2020 2019 Beginning balance $ 640 $ 150 Additional authorization — 717 Repurchases (416) (544) Ending balance $ 224 $ 323 (In millions) Nine months ended September 30, 2020 Class A Beginning balance 143.2 Issued shares 35.9 Forfeited shares (0.1) Repurchased shares (13.2) Converted from Class B shares 25.4 Converted from Class M shares 0.3 Ending balance 191.5 Class B Beginning balance 25.4 Converted to Class A shares (25.4) Ending balance — Class M-1 Beginning balance 3.3 Converted to Class A shares (0.2) Converted to warrants (3.1) Ending balance — Class M-2 Beginning balance 0.8 Converted to Class A shares 0.0 Converted to warrants (0.8) Ending balance — Class M-3 Beginning balance 1.0 Converted to Class A shares 0.0 Converted to warrants (1.0) Ending balance — Class M-4 Beginning balance 4.0 Converted to Class A shares (0.1) Converted to warrants (3.6) Repurchased shares (0.3) Ending balance — |
Accumulated Other Comprehensive Income | The following provides the details of AOCI and changes in AOCI: (In millions) Unrealized investment gains (losses) on AFS securities without a credit allowance Unrealized investment gains (losses) on AFS securities with a credit allowance DAC, DSI, VOBA and future policy benefits adjustments on AFS securities Unrealized gains (losses) on hedging instruments Foreign currency translation and other adjustments Accumulated other comprehensive income (loss) Balance at June 30, 2020 $ 3,444 $ (702) $ (873) $ 320 $ (5) $ 2,184 Other comprehensive income (loss) before reclassifications 646 768 (306) (178) 10 940 Less: Reclassification adjustments for gains (losses) realized in net income (loss) 1 85 — (20) — — 65 Less: Income tax expense (benefit) 107 153 (61) (42) — 157 Less: Other comprehensive income (loss) attributable to NCI (10) 14 — 8 2 14 Balance at September 30, 2020 $ 3,908 $ (101) $ (1,098) $ 176 $ 3 $ 2,888 1 Recognized in investment related gains (losses) on the condensed consolidated statements of income. (In millions) Unrealized investment gains (losses) on AFS securities DAC, DSI, VOBA and future policy benefits adjustments on AFS securities Unrealized gains (losses) on hedging instruments Foreign currency translation and other adjustments Accumulated other comprehensive income (loss) Balance at June 30, 2019 $ 2,349 $ (661) $ 77 $ (5) $ 1,760 Other comprehensive income (loss) before reclassifications 1,132 (392) 124 (1) 863 Less: Reclassification adjustments for gains (losses) realized in net income (loss) 1 7 (2) — — 5 Less: Income tax expense (benefit) 232 (82) 26 — 176 Balance at September 30, 2019 $ 3,242 $ (969) $ 175 $ (6) $ 2,442 1 Recognized in investment related gains (losses) on the condensed consolidated statements of income. (In millions) Unrealized investment gains (losses) on AFS securities without a credit allowance Unrealized investment gains (losses) on AFS securities with a credit allowance DAC, DSI, VOBA and future policy benefits adjustments on AFS securities Unrealized gains (losses) on hedging instruments Foreign currency translation and other adjustments Accumulated other comprehensive income (loss) Balance at December 31, 2019 $ 3,102 $ — $ (879) $ 61 $ (3) $ 2,281 Adoption of accounting standards 4 (4) (6) — — (6) Other comprehensive income (loss) before reclassifications 1,403 (116) (358) 140 9 1,078 Less: Reclassification adjustments for gains (losses) realized in net income (loss) 1 306 — (87) — — 219 Less: Income tax expense (benefit) 213 (23) (58) 33 — 165 Less: Other comprehensive income (loss) attributable to NCI 82 4 — (8) 3 81 Balance at September 30, 2020 $ 3,908 $ (101) $ (1,098) $ 176 $ 3 $ 2,888 1 Recognized in investment related gains (losses) on the condensed consolidated statements of income. (In millions) Unrealized investment gains (losses) on AFS securities DAC, DSI, VOBA and future policy benefits adjustments on AFS securities Unrealized gains (losses) on hedging instruments Foreign currency translation and other adjustments Accumulated other comprehensive income (loss) Balance at December 31, 2018 $ (628) $ 121 $ 39 $ (4) $ (472) Other comprehensive income (loss) before reclassifications 4,889 (1,391) 171 (2) 3,667 Less: Reclassification adjustments for gains (losses) realized in net income (loss) 1 35 (10) — — 25 Less: Income tax expense (benefit) 984 (291) 35 — 728 Balance at September 30, 2019 $ 3,242 $ (969) $ 175 $ (6) $ 2,442 1 Recognized in investment related gains (losses) on the condensed consolidated statements of income. |
Dividends Declared | The following summarizes dividends declared and paid per preferred stock share by series: Three months ended September 30, Nine months ended September 30, (Per share) 2020 2019 2020 2019 Series A $ 396.87 $ 485.07 $ 1,190.63 $ 485.07 Series B 351.57 — 1,054.69 — Series C 482.55 — 482.55 — The following summarizes dividends declared and paid in the aggregate on the preferred stock by series: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Series A $ 14 $ 17 $ 41 $ 17 Series B 4 — 14 — Series C 12 — 12 — Total dividends declared and paid $ 30 $ 17 $ 67 $ 17 |
Related Parties (Tables)
Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions | The following represents assets based on the above sub-allocation structure: (In millions, except percentages) September 30, 2020 Percent of Total December 31, 2019 Percent of Total Core $ 48,409 28.7 % $ 32,474 25.5 % Core Plus 39,543 23.4 % 30,155 23.6 % Yield 58,791 34.8 % 48,557 38.0 % High Alpha 6,776 4.0 % 5,062 4.0 % Other 15,289 9.1 % 11,302 8.9 % Total sub-allocation assets $ 168,808 100.0 % $ 127,550 100.0 % (In millions) September 30, 2020 December 31, 2019 Investment fund $ — $ 547 Profit participating notes 532 — Subordinated debt facility 322 339 Redeemable preferred stock 77 — Total investment in MidCap $ 931 $ 886 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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) September 30, 2020 December 31, 2019 AFS securities $ 9,928 $ 9,369 Trading securities 54 45 Equity securities 24 22 Mortgage loans 4,715 2,535 Investment funds 55 84 Derivative assets 95 105 Short-term investments 5 92 Other investments 104 88 Restricted cash 1,226 402 Total restricted assets $ 16,206 $ 12,742 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Retirement Services $ 1,711 $ 4,096 $ 5,769 $ 9,650 Corporate and Other (15) 28 101 84 Non-operating adjustments Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets 637 84 (280) 1,490 Investment gains (losses), net of offsets 468 373 29 1,768 VIE expenses, noncontrolling interests and other adjustments to revenues 474 3 505 10 Total revenues $ 3,275 $ 4,584 $ 6,124 $ 13,002 |
Reconciliation of Segment Operating Income to Consolidation | The table below reconciles segment adjusted operating income available to common shareholders to net income available to Athene Holding Ltd. common shareholders presented on the condensed consolidated statements of income: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Retirement Services $ 361 $ 256 $ 773 $ 918 Corporate and Other (59) (13) (89) (18) Non-operating adjustments Investment gains (losses), net of offsets 346 166 (18) 1,041 Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets 72 (117) (268) (201) Integration, restructuring and other non-operating expenses — (34) (13) (46) Stock-based compensation, excluding LTIP (1) (3) (11) (9) Income tax (expense) benefit – non-operating (97) 21 7 19 Net income available to Athene Holding Ltd. common shareholders $ 622 $ 276 $ 381 $ 1,704 |
Total Assets by Segment | The following represents total assets by segment: (In millions) September 30, 2020 December 31, 2019 Retirement Services $ 186,400 $ 143,881 Corporate and Other 4,688 2,994 Total assets $ 191,088 $ 146,875 |
Business, Basis of Presentati_3
Business, Basis of Presentation and Significant Accounting Policies Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Cumulative-effect adjustment that decreased retained earnings | $ 17,117 | $ 15,639 | $ 14,141 | $ 13,545 | $ 12,365 | $ 8,276 | |
Available-for-sale securities | 69,160 | 67,479 | |||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative-effect adjustment that decreased retained earnings | (125) | ||||||
RMBS | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Available-for-sale securities | 6,434 | 6,872 | |||||
RMBS | Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Available-for-sale securities | $ 17 | ||||||
Commercial mortgage loans | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Mortgage loans, before allowance for credit losses | 11,390 | 10,515 | |||||
Commercial mortgage loans | Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Mortgage loans, before allowance for credit losses | $ 36 | ||||||
Retained earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative-effect adjustment that decreased retained earnings | $ 7,010 | $ 6,437 | 6,939 | $ 6,668 | $ 6,461 | $ 5,286 | |
Retained earnings | Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative-effect adjustment that decreased retained earnings | $ (117) | ||||||
New accounting pronouncement effect, percentage | 1.59% |
Investments - Schedule of AFS S
Investments - Schedule of AFS Securities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||||
Gross Unrealized Gains | $ 4,344 | |||
Gross Unrealized Losses | (449) | |||
Available-for-sale Securities | 71,374 | |||
Amortized Cost | $ 69,160 | 67,479 | ||
AFS securities allowance for credit losses | (140) | $ (173) | $ (17) | |
Gross Unrealized Gains | 5,957 | |||
Gross Unrealized Losses | (989) | |||
Fair Value | 73,988 | 71,374 | ||
U.S. government and agencies | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 71 | 35 | ||
AFS securities allowance for credit losses | 0 | |||
Gross Unrealized Gains | 2 | 1 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 73 | 36 | ||
U.S. state, municipal and political subdivisions | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 765 | 1,322 | ||
AFS securities allowance for credit losses | 0 | |||
Gross Unrealized Gains | 163 | 220 | ||
Gross Unrealized Losses | (1) | (1) | ||
Fair Value | 927 | 1,541 | ||
Foreign governments | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 311 | 298 | ||
AFS securities allowance for credit losses | 0 | |||
Gross Unrealized Gains | 29 | 29 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 340 | 327 | ||
Corporate | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 46,424 | 44,106 | ||
AFS securities allowance for credit losses | (30) | (31) | 0 | |
Gross Unrealized Gains | 5,094 | 3,332 | ||
Gross Unrealized Losses | (359) | (210) | ||
Fair Value | 51,129 | 47,228 | ||
CLO | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 8,621 | 7,524 | ||
AFS securities allowance for credit losses | (1) | (1) | 0 | |
Gross Unrealized Gains | 68 | 21 | ||
Gross Unrealized Losses | (318) | (196) | ||
Fair Value | 8,370 | 7,349 | ||
ABS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 4,255 | 5,018 | ||
AFS securities allowance for credit losses | (3) | (2) | 0 | |
Gross Unrealized Gains | 136 | 124 | ||
Gross Unrealized Losses | (188) | (24) | ||
Fair Value | 4,200 | 5,118 | ||
CMBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 2,279 | 2,304 | ||
AFS securities allowance for credit losses | (19) | (10) | 0 | |
Gross Unrealized Gains | 68 | 104 | ||
Gross Unrealized Losses | (89) | (8) | ||
Fair Value | 2,239 | 2,400 | ||
RMBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 6,434 | 6,872 | ||
AFS securities allowance for credit losses | (87) | (129) | (17) | |
Gross Unrealized Gains | 397 | 513 | ||
Gross Unrealized Losses | (34) | (10) | ||
Fair Value | 6,710 | 7,375 | ||
Related Party | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Gross Unrealized Gains | 41 | |||
Gross Unrealized Losses | (20) | |||
Available-for-sale Securities | 3,804 | |||
Amortized Cost | 4,861 | 3,783 | ||
AFS securities allowance for credit losses | (2) | (2) | 0 | |
Gross Unrealized Gains | 77 | |||
Gross Unrealized Losses | (79) | |||
Fair Value | 4,857 | 3,804 | ||
Related Party | Corporate | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 780 | 18 | ||
AFS securities allowance for credit losses | 0 | |||
Gross Unrealized Gains | 4 | 1 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 784 | 19 | ||
OTTI in AOCI | 0 | |||
Related Party | CLO | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 1,365 | 951 | ||
AFS securities allowance for credit losses | (2) | (2) | 0 | |
Gross Unrealized Gains | 11 | 3 | ||
Gross Unrealized Losses | (30) | (18) | ||
Fair Value | 1,344 | 936 | ||
Related Party | ABS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 2,716 | 2,814 | ||
AFS securities allowance for credit losses | 0 | |||
Gross Unrealized Gains | 62 | 37 | ||
Gross Unrealized Losses | (49) | (2) | ||
Fair Value | 2,729 | 2,849 | ||
OTTI | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI in AOCI | 25 | |||
OTTI | U.S. government and agencies | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI in AOCI | 0 | |||
OTTI | U.S. state, municipal and political subdivisions | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI in AOCI | 0 | |||
OTTI | Foreign governments | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI in AOCI | 0 | |||
OTTI | Corporate | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI in AOCI | 1 | |||
OTTI | CLO | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI in AOCI | 0 | |||
OTTI | ABS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI in AOCI | 4 | |||
OTTI | CMBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI in AOCI | 1 | |||
OTTI | RMBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI in AOCI | 19 | |||
OTTI | Related Party | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI in AOCI | 0 | |||
OTTI | Related Party | CLO | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI in AOCI | 0 | |||
OTTI | Related Party | ABS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI in AOCI | 0 | |||
Investments including related party | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Gross Unrealized Gains | 4,385 | |||
Gross Unrealized Losses | (469) | |||
Available-for-sale Securities | 75,178 | |||
Amortized Cost | 74,021 | 71,262 | ||
AFS securities allowance for credit losses | (142) | $ (175) | $ (17) | |
Gross Unrealized Gains | 6,034 | |||
Gross Unrealized Losses | (1,068) | |||
Fair Value | $ 78,845 | |||
Investments including related party | OTTI | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
OTTI in AOCI | $ 25 |
Investments - Maturities of AFS
Investments - Maturities of AFS Securities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due in one year or less | $ 876 | |
Due after one year through five years | 7,209 | |
Due after five years through ten years | 11,799 | |
Due after ten years | 27,687 | |
CLO, ABS, CMBS and RMBS | 21,589 | |
Amortized Cost | 69,160 | $ 67,479 |
Fair Value | ||
Due in one year or less | 885 | |
Due after one year through five years | 7,636 | |
Due after five years through ten years | 12,771 | |
Due after ten years | 31,177 | |
CLO, ABS, CMBS and RMBS | 21,519 | |
Total AFS fixed maturity securities | 73,988 | 71,374 |
Related Party | ||
Amortized Cost | ||
Due after one year through five years | 34 | |
Due after ten years | 746 | |
CLO, ABS, CMBS and RMBS | 4,081 | |
Amortized Cost | 4,861 | 3,783 |
Fair Value | ||
Due after one year through five years | 36 | |
Due after ten years | 748 | |
CLO, ABS, CMBS and RMBS | 4,073 | |
Total AFS fixed maturity securities | 4,857 | 3,804 |
Investments including related party | ||
Amortized Cost | ||
Amortized Cost | 74,021 | $ 71,262 |
Fair Value | ||
Total AFS fixed maturity securities | $ 78,845 |
Investments - Unrealized Losses
Investments - Unrealized Losses on AFS Securities (Details) $ in Millions | Sep. 30, 2020USD ($)security | Dec. 31, 2019USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 10,900 | $ 6,245 |
Fair Value, 12 months or greater | 3,670 | 4,612 |
Total | 14,570 | 10,857 |
Gross Unrealized Losses | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 527 | 195 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 337 | 254 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 864 | 449 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 353 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 1,748 | |
Investments including related party | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 13,200 | 6,964 |
Fair Value, 12 months or greater | 3,902 | 4,854 |
Total | 17,102 | 11,818 |
Gross Unrealized Losses | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 591 | 204 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 352 | 265 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 943 | 469 |
Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 2,300 | 719 |
Fair Value, 12 months or greater | 232 | 242 |
Total | 2,532 | 961 |
Gross Unrealized Losses | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 64 | 9 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 15 | 11 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 79 | 20 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 9 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 60 | |
U.S. government and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 9 | 3 |
Fair Value, 12 months or greater | 0 | 0 |
Total | 9 | 3 |
Gross Unrealized Losses | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 0 | 0 |
U.S. state, municipal and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 50 | 78 |
Fair Value, 12 months or greater | 8 | 10 |
Total | 58 | 88 |
Gross Unrealized Losses | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 1 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 1 | 1 |
Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 4 | |
Fair Value, 12 months or greater | 0 | |
Total | 4 | |
Gross Unrealized Losses | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 0 | |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 5,899 | 2,898 |
Fair Value, 12 months or greater | 414 | 902 |
Total | 6,313 | 3,800 |
Gross Unrealized Losses | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 248 | 140 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 57 | 70 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 305 | 210 |
CLO | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 2,475 | 1,959 |
Fair Value, 12 months or greater | 3,118 | 3,241 |
Total | 5,593 | 5,200 |
Gross Unrealized Losses | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 73 | 38 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 232 | 158 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 305 | 196 |
CLO | Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 766 | 362 |
Fair Value, 12 months or greater | 232 | 242 |
Total | 998 | 604 |
Gross Unrealized Losses | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 15 | 7 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 15 | 11 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 30 | 18 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 1,238 | 642 |
Fair Value, 12 months or greater | 82 | 255 |
Total | 1,320 | 897 |
Gross Unrealized Losses | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 130 | 6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 26 | 18 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 156 | 24 |
ABS | Related Party | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 1,534 | 357 |
Fair Value, 12 months or greater | 0 | 0 |
Total | 1,534 | 357 |
Gross Unrealized Losses | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 49 | 2 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 49 | 2 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 685 | 220 |
Fair Value, 12 months or greater | 23 | 41 |
Total | 708 | 261 |
Gross Unrealized Losses | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 60 | 4 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 20 | 4 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 80 | 8 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 540 | 445 |
Fair Value, 12 months or greater | 25 | 163 |
Total | 565 | 608 |
Gross Unrealized Losses | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 16 | 6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1 | 4 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 17 | $ 10 |
Investments Investments - Allow
Investments Investments - Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | $ 173 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not Previously Recorded | 15 | $ 109 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | 0 | 61 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Securities Sold | (15) | (17) |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not to Sell before Recovery, Credit Loss, Previously Recorded, Expense (Reversal) | (33) | (30) |
Corporate | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 31 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not Previously Recorded | 1 | 32 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | 0 | 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Securities Sold | (2) | (2) |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not to Sell before Recovery, Credit Loss, Previously Recorded, Expense (Reversal) | 0 | 0 |
CLO | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 1 | 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not Previously Recorded | 0 | 1 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | 0 | 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Securities Sold | 0 | 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not to Sell before Recovery, Credit Loss, Previously Recorded, Expense (Reversal) | 0 | 0 |
ABS | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 2 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not Previously Recorded | 0 | 5 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | 0 | 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Securities Sold | 0 | 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not to Sell before Recovery, Credit Loss, Previously Recorded, Expense (Reversal) | 1 | (2) |
CMBS | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 10 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not Previously Recorded | 12 | 21 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | 0 | 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Securities Sold | (1) | (1) |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not to Sell before Recovery, Credit Loss, Previously Recorded, Expense (Reversal) | (2) | (1) |
RMBS | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 129 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not Previously Recorded | 2 | 50 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | 0 | 61 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Securities Sold | (12) | (14) |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not to Sell before Recovery, Credit Loss, Previously Recorded, Expense (Reversal) | (32) | (27) |
Related Party | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 2 | 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not Previously Recorded | 1 | 2 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | 0 | 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Securities Sold | (1) | (1) |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not to Sell before Recovery, Credit Loss, Previously Recorded, Expense (Reversal) | 0 | 1 |
Related Party | CLO | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 2 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not Previously Recorded | 1 | 2 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | 0 | 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Securities Sold | (1) | (1) |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not to Sell before Recovery, Credit Loss, Previously Recorded, Expense (Reversal) | 0 | 1 |
Investments including related party | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 175 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not Previously Recorded | 16 | 111 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | 0 | 61 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Securities Sold | (16) | (18) |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not to Sell before Recovery, Credit Loss, Previously Recorded, Expense (Reversal) | $ (33) | $ (29) |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Investment Income [Line Items] | ||||
Investment revenue | $ 3,660 | $ 3,673 | ||
Investment expenses | (370) | (319) | ||
Net investment income | $ 1,209 | $ 1,090 | 3,290 | 3,354 |
AFS securities | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 2,403 | 2,276 | ||
Trading securities | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 137 | 139 | ||
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 10 | 11 | ||
Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 545 | 483 | ||
Investment funds | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 242 | 245 | ||
Funds withheld at interest | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 165 | 403 | ||
Other | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | $ 158 | $ 116 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 1,323 | 1,219 | ||
Investment expenses | (114) | (129) | ||
Net investment income | 1,209 | 1,090 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | AFS securities | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 776 | 760 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Trading securities | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 47 | 48 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Equity securities | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 4 | 4 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 184 | 173 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Investment funds | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 148 | 96 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Funds withheld at interest | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | 81 | 106 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Other | ||||
Net Investment Income [Line Items] | ||||
Investment revenue | $ 83 | $ 32 |
Investments - Investment Relate
Investments - Investment Related Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
AFS fixed maturity securities | ||||
Gross realized gains on investment activity | $ 192 | $ 47 | $ 424 | $ 120 |
Gross realized losses on investment activity | (178) | (21) | (378) | (38) |
Net realized investment gains on AFS securities | 14 | 26 | 46 | 82 |
Net recognized investment gains (losses) on trading securities | 24 | 48 | (8) | 183 |
Net recognized investment gains (losses) on equity securities | 12 | (4) | (8) | 15 |
Derivative gains | 1,648 | 620 | 959 | 3,493 |
Provision for Loan, Lease, and Other Losses | 84 | 0 | (205) | 0 |
Other gains (losses) | 15 | (25) | (11) | (19) |
Investment related gains (losses) | 1,797 | 665 | 773 | 3,754 |
Proceeds from Sale of Debt Securities, Available-for-sale | $ 3,940 | $ 852 | $ 7,525 | $ 4,063 |
Investments - Unrealized gains
Investments - Unrealized gains (losses) recognized in income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Gain (Loss) on Securities [Line Items] | ||||
Debt Securities, Trading, Unrealized Gain (Loss) | $ 81 | $ 215 | ||
Equity Securities, FV-NI, Unrealized Gain (Loss) | (9) | 20 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||
Gain (Loss) on Securities [Line Items] | ||||
Debt Securities, Trading, Unrealized Gain (Loss) | $ 19 | $ 46 | ||
Equity Securities, FV-NI, Unrealized Gain (Loss) | 11 | 0 | ||
Related Party | ||||
Gain (Loss) on Securities [Line Items] | ||||
Debt Securities, Trading, Unrealized Gain (Loss) | (42) | (11) | ||
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 0 | $ (2) | ||
Related Party | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||||
Gain (Loss) on Securities [Line Items] | ||||
Debt Securities, Trading, Unrealized Gain (Loss) | 1 | 4 | ||
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 0 | $ 0 |
Investments - Mortgage Loans, N
Investments - Mortgage Loans, Net (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 14,591 | $ 14,306 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, before allowance for credit losses | 11,390 | 10,515 |
Mortgage loan valuation allowance | (232) | (10) |
Mortgage loans, net of allowances | 11,158 | 10,505 |
Commercial mortgage loans | Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, before allowance for credit losses | 11,194 | 10,422 |
Mortgage loans, net of allowances | 10,412 | |
Commercial mortgage loans | Commercial mortgage loans under development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, before allowance for credit losses | 196 | 93 |
Residential mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, before allowance for credit losses | 4,169 | 4,455 |
Mortgage loan valuation allowance | (96) | (1) |
Mortgage loans, net of allowances | 4,073 | 4,454 |
Investments including related party | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 15,231 | $ 14,959 |
Investments - Mortgage Loans,_2
Investments - Mortgage Loans, Net by Property Type and Geographic Region (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 14,306 | $ 14,591 | |
Commercial mortgage loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 10,505 | 11,158 | |
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 | $ 10,271 | 10,664 | |
Commercial mortgage loans | Total U.S. Region | Geographic Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 95.60% | 97.80% | |
Commercial mortgage loans | East North Central | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 1,036 | 1,176 | |
Commercial mortgage loans | East North Central | Geographic Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 10.50% | 9.90% | |
Commercial mortgage loans | East South Central | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 428 | 404 | |
Commercial mortgage loans | East South Central | Geographic Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 3.60% | 4.10% | |
Commercial mortgage loans | Middle Atlantic | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 2,580 | 3,058 | |
Commercial mortgage loans | Middle Atlantic | Geographic Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 27.40% | 24.60% | |
Commercial mortgage loans | Mountain | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 528 | 482 | |
Commercial mortgage loans | Mountain | Geographic Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 4.30% | 5.00% | |
Commercial mortgage loans | New England | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 340 | 330 | |
Commercial mortgage loans | New England | Geographic Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 3.00% | 3.20% | |
Commercial mortgage loans | Pacific | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 2,502 | 2,577 | |
Commercial mortgage loans | Pacific | Geographic Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 23.10% | 23.80% | |
Commercial mortgage loans | South Atlantic | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 1,920 | 1,848 | |
Commercial mortgage loans | South Atlantic | Geographic Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 16.60% | 18.30% | |
Commercial mortgage loans | West North Central | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 146 | 147 | |
Commercial mortgage loans | West North Central | Geographic Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 1.30% | 1.40% | |
Commercial mortgage loans | West South Central | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 791 | 642 | |
Commercial mortgage loans | West South Central | Geographic Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 5.80% | 7.50% | |
Commercial mortgage loans | Non-US [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 234 | 494 | |
Commercial mortgage loans | Non-US [Member] | Geographic Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 4.40% | 2.20% | |
Commercial mortgage loans | Hotels | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 1,104 | 1,182 | |
Commercial mortgage loans | Hotels | Property Type Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 10.60% | 10.50% | |
Commercial mortgage loans | Retail | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 2,182 | 2,029 | |
Commercial mortgage loans | Retail | Property Type Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 18.20% | 20.80% | |
Commercial mortgage loans | Office building | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 2,899 | 3,526 | |
Commercial mortgage loans | Office building | Property Type Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 31.60% | 27.60% | |
Commercial mortgage loans | Industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 1,448 | 1,407 | |
Commercial mortgage loans | Industrial | Property Type Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 12.60% | 13.80% | |
Commercial mortgage loans | Apartment | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 2,142 | 2,335 | |
Commercial mortgage loans | Apartment | Property Type Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 20.90% | 20.40% | |
Commercial mortgage loans | Other commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans, net of allowances | $ 730 | $ 679 | |
Commercial mortgage loans | Other commercial | Property Type Concentration Risk | Mortgage Loans, Net | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage concentration risk | 6.10% | 6.90% |
Investments - Mortgage Loans, R
Investments - Mortgage Loans, Residential by State (Details) - Geographic Concentration Risk - Residential mortgage loans - Mortgage Loans, Net | Jun. 30, 2020 | Dec. 31, 2019 |
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 | 25.80% | 27.00% |
Florida | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 13.20% | 12.70% |
TEXAS | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 4.80% | 6.20% |
Other U.S. States | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 36.50% | 38.40% |
Total U.S. Region | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 85.50% | 87.60% |
IRELAND | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 13.90% | 12.40% |
International Other [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 0.60% | 0.00% |
NEW YORK | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage concentration risk | 5.20% | 3.30% |
Investments - Mortgage Loans,_3
Investments - Mortgage Loans, Net Past Due (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 67,000,000 | |
Residential mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | $ 414,000,000 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 9,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 171,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 587,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,929,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,059,000,000 | |
Mortgage loan valuation allowance | 96,000,000 | 1,000,000 |
Mortgage loans, before allowance for credit losses | 4,169,000,000 | 4,455,000,000 |
Commercial mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,496,000,000 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,567,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 131,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,047,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 2,750,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 4,399,000,000 | |
Mortgage loan valuation allowance | 232,000,000 | 10,000,000 |
Financing Receivable, Past Due | 0 | |
Mortgage loans, before allowance for credit losses | 11,390,000,000 | 10,515,000,000 |
Commercial mortgage loans, excluding loans under development | Commercial mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,414,000,000 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,567,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 131,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,047,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 2,657,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 4,378,000,000 | |
Mortgage loans, before allowance for credit losses | 11,194,000,000 | $ 10,422,000,000 |
Financial Asset, 1 to 29 Days Past Due [Member] | Residential mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 384,000,000 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 7,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 144,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 507,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,852,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,016,000,000 | |
Financing Receivable, Not Past Due | 3,910,000,000 | |
Financial Asset, 1 to 29 Days Past Due [Member] | Commercial mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,398,000,000 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,546,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 131,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,047,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 2,750,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 4,399,000,000 | |
Financing Receivable, Not Past Due | 11,271,000,000 | |
Financial Asset, 30 to 59 Days Past Due [Member] | Residential mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 23,000,000 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 8,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 39,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 35,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 20,000,000 | |
Financing Receivable, Past Due | 125,000,000 | |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 98,000,000 | |
Mortgage loans, before allowance for credit losses | 98,000,000 | |
Financial Asset, 60 to 89 Days Past Due [Member] | Residential mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 6,000,000 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 6,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 9,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 21,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 11,000,000 | |
Financing Receivable, Past Due | 53,000,000 | |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 21,000,000 | |
Mortgage loans, before allowance for credit losses | 21,000,000 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Residential mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,000,000 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 2,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 13,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 32,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 21,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 12,000,000 | |
Financing Receivable, Past Due | $ 81,000,000 |
Investments Financing Receivabl
Investments Financing Receivables in Non-Accrual Status (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Residential mortgage loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Financing Receivable, Nonaccrual | $ 81 | $ 81 | $ 67 |
Financing Receivable, Not Past Due | 2 | 3 | |
Financing Receivable, Nonaccrual, No Allowance | 8 | 8 | |
Commercial mortgage loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Financing Receivable, Nonaccrual | 39 | 39 | $ 0 |
Financing Receivable, Not Past Due | 0 | 0 | |
Financing Receivable, Nonaccrual, No Allowance | $ 0 | $ 0 |
Investments - Mortgage Loans, L
Investments - Mortgage Loans, Loan to Value Ratio (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage loans, net of allowances | $ 14,591 | $ 14,306 |
Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,496 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,567 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 131 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,047 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 2,750 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 4,399 | |
Mortgage loans, net of allowances | 11,158 | 10,505 |
Mortgage loans, before allowance for credit losses | 11,390 | 10,515 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,414 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,567 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 131 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,047 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 2,657 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 4,378 | |
Mortgage loans, net of allowances | 10,412 | |
Mortgage loans, before allowance for credit losses | 11,194 | 10,422 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Less than 50% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 282 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,250 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 45 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 200 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 207 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 611 | |
Mortgage loans, net of allowances | 2,640 | |
Mortgage loans, before allowance for credit losses | 2,595 | |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 50% to 60% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 249 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 162 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 40 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 277 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 733 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,215 | |
Mortgage loans, net of allowances | 2,486 | |
Mortgage loans, before allowance for credit losses | 2,676 | |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 61% to 70% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 539 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 71 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 46 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 475 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,430 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,978 | |
Mortgage loans, net of allowances | 4,093 | |
Mortgage loans, before allowance for credit losses | 4,539 | |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 71% to 80% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 331 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 45 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 95 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 287 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 574 | |
Mortgage loans, net of allowances | 1,162 | |
Mortgage loans, before allowance for credit losses | 1,332 | |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 81% to 100% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 13 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |
Mortgage loans, net of allowances | $ 31 | |
Mortgage loans, before allowance for credit losses | 13 | |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Greater than 100% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 39 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |
Mortgage loans, before allowance for credit losses | $ 39 |
Investments - Mortgage Loans, D
Investments - Mortgage Loans, Debt Service Coverage Ratio (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans, net of allowances | $ 14,591 | $ 14,306 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,496 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,567 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 131 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,047 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 2,750 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 4,399 | |
Mortgage loans, net of allowances | 11,158 | 10,505 |
Mortgage loans, before allowance for credit losses | 11,390 | 10,515 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,414 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,567 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 131 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,047 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 2,657 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 4,378 | |
Mortgage loans, net of allowances | 10,412 | |
Mortgage loans, before allowance for credit losses | 11,194 | 10,422 |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Greater than 1.20x | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,039 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,494 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 130 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 993 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 2,657 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 3,413 | |
Mortgage loans, net of allowances | 9,212 | |
Mortgage loans, before allowance for credit losses | 9,726 | |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | 1.00x – 1.20x | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 375 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 66 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 31 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 965 | |
Mortgage loans, net of allowances | 1,166 | |
Mortgage loans, before allowance for credit losses | 1,438 | |
Commercial mortgage loans | Commercial mortgage loans, excluding loans under development | Less than 1.00x | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 7 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 23 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | |
Mortgage loans, net of allowances | $ 34 | |
Mortgage loans, before allowance for credit losses | $ 30 |
Investments - Investment Funds
Investments - Investment Funds (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 723 | $ 750 |
Carrying Amount, Assets, Percent of Total | 100.00% | 100.00% |
Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 4,808 | $ 3,550 |
Carrying Amount, Assets, Percent of Total | 100.00% | 100.00% |
Private equity | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 257 | $ 236 |
Carrying Amount, Assets, Percent of Total | 35.50% | 31.50% |
Private equity | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 257 | $ 105 |
Carrying Amount, Assets, Percent of Total | 5.30% | 3.00% |
Real assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 66 | $ 83 |
Carrying Amount, Assets, Percent of Total | 9.10% | 11.10% |
Real assets | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 196 | $ 182 |
Carrying Amount, Assets, Percent of Total | 4.10% | 5.10% |
Real estate | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 290 | $ 277 |
Carrying Amount, Assets, Percent of Total | 40.20% | 36.90% |
Real estate | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 686 | $ 853 |
Carrying Amount, Assets, Percent of Total | 14.30% | 24.00% |
Natural resources | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 0 | $ 1 |
Carrying Amount, Assets, Percent of Total | 0.00% | 0.10% |
Natural resources | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 101 | $ 163 |
Carrying Amount, Assets, Percent of Total | 2.10% | 4.60% |
Other fund | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 272 | $ 222 |
Carrying Amount, Assets, Percent of Total | 5.70% | 6.30% |
Differentiated investments | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 1,935 | $ 1,758 |
Carrying Amount, Assets, Percent of Total | 40.30% | 49.50% |
Credit funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 110 | $ 153 |
Carrying Amount, Assets, Percent of Total | 15.20% | 20.40% |
Credit funds | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 373 | $ 370 |
Carrying Amount, Assets, Percent of Total | 7.70% | 10.40% |
Public equities | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 62 | $ 119 |
Carrying Amount, Assets, Percent of Total | 1.30% | 3.40% |
Investments including related party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 5,531 | $ 4,300 |
MidCap | Credit funds | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 0 | $ 547 |
Carrying Amount, Assets, Percent of Total | 0.00% | 15.40% |
AmeriHome | Private equity | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 666 | $ 487 |
Carrying Amount, Assets, Percent of Total | 13.90% | 13.70% |
Catalina Holdings (Bermuda) Ltd [Member] | Private equity | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 317 | $ 271 |
Carrying Amount, Assets, Percent of Total | 6.60% | 7.60% |
Athora Holding Ltd. | Private equity | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 572 | $ 132 |
Carrying Amount, Assets, Percent of Total | 11.90% | 3.70% |
Venerable | Private equity | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 108 | $ 99 |
Carrying Amount, Assets, Percent of Total | 2.20% | 2.80% |
Apollo | Other fund | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment funds | $ 1,198 | $ 0 |
Carrying Amount, Assets, Percent of Total | 24.90% | 0.00% |
Investments - Summary of Maximu
Investments - Summary of Maximum Loss Exposure (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Assets | $ 191,088 | $ 146,875 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 37,075 | 34,326 |
Investment funds | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 1,183 | 1,265 |
Related Party | Investment funds | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 7,256 | 5,955 |
Debt Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 22,000 | 22,170 |
Debt Securities [Member] | Related Party | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 6,586 | 4,878 |
Equity securities | Related Party | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 50 | 58 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | 33,729 | 31,622 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Investment funds | ||
Variable Interest Entity [Line Items] | ||
Assets | 723 | 750 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Related Party | Investment funds | ||
Variable Interest Entity [Line Items] | ||
Assets | 4,808 | 3,550 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Debt Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | 21,930 | 22,694 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Debt Securities [Member] | Related Party | ||
Variable Interest Entity [Line Items] | ||
Assets | 6,218 | 4,570 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Equity securities | Related Party | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 50 | $ 58 |
Investments Investments - Off b
Investments Investments - Off balance sheet collateral from reverse repurchase agreements (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Offsetting Assets [Line Items] | ||
Securities Purchased under Agreements to Resell | $ 0 | $ 190 |
Securities Purchased under Agreements to Resell, Fair Value of Collateral | $ 0 | $ (630) |
Investments - Repurchase Agreem
Investments - Repurchase Agreements (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Repurchase Agreements [Line Items] | ||
Payables for repurchase agreements | $ 1,098 | $ 512 |
Maturity Overnight and on Demand | ||
Schedule of Repurchase Agreements [Line Items] | ||
Payables for repurchase agreements | 0 | 0 |
Maturity Less than 30 Days | ||
Schedule of Repurchase Agreements [Line Items] | ||
Payables for repurchase agreements | 500 | 102 |
Maturity 30 to 90 Days | ||
Schedule of Repurchase Agreements [Line Items] | ||
Payables for repurchase agreements | 0 | 200 |
Maturity Greater than 90 Days | ||
Schedule of Repurchase Agreements [Line Items] | ||
Payables for repurchase agreements | 0 | 210 |
Maturity Greater than 1 Year [Member] | ||
Schedule of Repurchase Agreements [Line Items] | ||
Payables for repurchase agreements | 598 | 0 |
AFS securities | Corporate | ||
Schedule of Repurchase Agreements [Line Items] | ||
Amortized Cost | 1,085 | 498 |
Fair Value | $ 1,249 | $ 534 |
Investments - Purchased with Cr
Investments - Purchased with Credit Deterioration (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Purchased financial assets with credit deterioration [Line Items] | ||
Debt Securities, Available-for-sale, Purchased with Credit Deterioration, Amount at Purchase Price | $ 0 | $ 239 |
Debt Securities, Available-for-sale, Purchased with Credit Deterioration, Allowance for Credit Loss at Acquisition Date | 0 | 61 |
Debt Securities, Available-for-sale, Purchased with Credit Deterioration, Discount (Premium) | 0 | 34 |
Debt Securities, Available-for-sale, Purchased with Credit Deterioration, Amount at Par Value | 0 | 334 |
Mortgage loans | ||
Purchased financial assets with credit deterioration [Line Items] | ||
Financing Receivable, Purchased with Credit Deterioration, Amount at Purchase Price | 142 | 142 |
Financing Receivable, Purchased with Credit Deterioration, Allowance for Credit Loss at Acquisition Date | 3 | 3 |
Financing Receivable, Purchased with Credit Deterioration, Discount (Premium) | 0 | 0 |
Financing Receivable, Purchased with Credit Deterioration, Amount at Par Value | $ 145 | $ 145 |
Investments - Allowance for Cre
Investments - Allowance for Credit Losses on Mortgage Loans (Details) - USD ($) | Jan. 01, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing Receivable, Allowance for Credit Loss, Writeoff | $ 0 | $ (1,000,000) | ||||
Mortgage loans allowance for credit losses | 313,000,000 | 313,000,000 | $ 11,000,000 | |||
Commercial mortgage loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | ||||
Mortgage loans allowance for credit losses | 232,000,000 | 232,000,000 | $ 294,000,000 | 10,000,000 | ||
Financing Receivable, Credit Loss, Expense (Reversal) | (62,000,000) | 55,000,000 | ||||
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | 0 | 0 | ||||
Residential mortgage loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | (1,000,000) | ||||
Mortgage loans allowance for credit losses | 96,000,000 | 96,000,000 | 85,000,000 | 1,000,000 | ||
Financing Receivable, Credit Loss, Expense (Reversal) | 8,000,000 | 50,000,000 | ||||
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | 3,000,000 | 3,000,000 | ||||
Other | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | ||||
Mortgage loans allowance for credit losses | 13,000,000 | 13,000,000 | 20,000,000 | 0 | ||
Financing Receivable, Credit Loss, Expense (Reversal) | (7,000,000) | 2,000,000 | ||||
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | 0 | 0 | ||||
Related Party | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Mortgage loans allowance for credit losses | 0 | $ 15,000,000 | ||||
Accounting Standards Update 2016-13 [Member] | Commercial mortgage loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | $ 167,000,000 | 0 | ||||
Accounting Standards Update 2016-13 [Member] | Residential mortgage loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 43,000,000 | 0 | ||||
Accounting Standards Update 2016-13 [Member] | Other | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 11,000,000 | 0 | ||||
Investments including related party | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Mortgage loans allowance for credit losses | 341,000,000 | 341,000,000 | $ 399,000,000 | $ 11,000,000 | ||
Financing Receivable, Credit Loss, Expense (Reversal) | (61,000,000) | 107,000,000 | ||||
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | 3,000,000 | $ 3,000,000 | ||||
Investments including related party | Accounting Standards Update 2016-13 [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | $ 221,000,000 | $ 0 |
Investments - Summarized Financ
Investments - Summarized Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net income | $ 884 | $ 293 | $ 599 | $ 1,721 |
Equity Method Investment, Nonconsolidated Investee, Other | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net income | $ 334 | $ 88 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Notional and Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Funds withheld at interest | $ 48,593 | $ 15,181 |
Funds withheld liability | 440 | 408 |
Derivative assets, fair value | 2,771 | 2,888 |
Derivative liabilities, fair value | 147 | 97 |
Total derivative assets | 4,751 | 4,283 |
Total derivative liabilities | 11,938 | 11,070 |
Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Derivative assets, fair value | 258 | 114 |
Derivative liabilities, fair value | $ 47 | $ 67 |
Derivatives designated as hedges | Foreign currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 3,268 | 3,158 |
Derivative assets, fair value | $ 243 | $ 113 |
Derivative liabilities, fair value | $ 45 | $ 56 |
Derivatives designated as hedges | Foreign currency forwards | ||
Derivative [Line Items] | ||
Notional Amount | 1,736 | 717 |
Derivative assets, fair value | $ 15 | $ 1 |
Derivative liabilities, fair value | 1 | 9 |
Derivatives not designated as hedges | ||
Derivative [Line Items] | ||
Total derivative assets | 4,493 | 4,169 |
Total derivative liabilities | $ 11,891 | $ 11,003 |
Derivatives not designated as hedges | Foreign currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 1,510 | 35 |
Derivative assets, fair value | $ 25 | $ 2 |
Derivative liabilities, fair value | $ 8 | $ 1 |
Derivatives not designated as hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 911 | 776 |
Derivative assets, fair value | $ 11 | $ 3 |
Derivative liabilities, fair value | $ 41 | $ 4 |
Derivatives not designated as hedges | Equity options | ||
Derivative [Line Items] | ||
Notional Amount | 53,997 | 49,549 |
Derivative assets, fair value | $ 2,401 | $ 2,746 |
Derivative liabilities, fair value | $ 26 | $ 5 |
Derivatives not designated as hedges | Futures | ||
Derivative [Line Items] | ||
Notional Amount | 16 | 8 |
Derivative assets, fair value | $ 48 | $ 10 |
Derivative liabilities, fair value | $ 4 | $ 1 |
Derivatives not designated as hedges | Total return swaps | ||
Derivative [Line Items] | ||
Notional Amount | 72 | 106 |
Derivative assets, fair value | $ 1 | $ 6 |
Derivative liabilities, fair value | $ 0 | $ 0 |
Derivatives not designated as hedges | Credit default swaps | ||
Derivative [Line Items] | ||
Notional Amount | 10 | 10 |
Derivative assets, fair value | $ 0 | $ 0 |
Derivative liabilities, fair value | $ 5 | $ 3 |
Derivatives not designated as hedges | Foreign currency forwards | ||
Derivative [Line Items] | ||
Notional Amount | 2,963 | 1,924 |
Derivative assets, fair value | $ 27 | $ 7 |
Derivative liabilities, fair value | 16 | 16 |
Derivatives not designated as hedges | Embedded derivatives | Funds withheld | ||
Derivative [Line Items] | ||
Funds withheld at interest | 1,980 | |
Funds withheld liability | 50 | |
Embedded derivative assets, fair value | 1,395 | |
Embedded derivative liabilities, fair value | 31 | |
Derivatives not designated as hedges | Embedded derivatives | Interest sensitive contract liabilities | ||
Derivative [Line Items] | ||
Embedded derivative assets, fair value | 0 | 0 |
Embedded derivative liabilities, fair value | $ 11,741 | $ 10,942 |
Net Investment Hedging [Member] | Derivatives designated as hedges | Foreign currency forwards | ||
Derivative [Line Items] | ||
Notional Amount | 136 | 139 |
Derivative assets, fair value | $ 0 | $ 0 |
Derivative liabilities, fair value | $ 1 | $ 2 |
Derivative Instruments - Gains
Derivative Instruments - Gains (Losses) on Derivatives Not Designated as Hedging (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | $ 1,095,000,000 | $ 355,000,000 | $ 49,000,000 | $ 1,573,000,000 |
Investment related gains (losses) | ||||
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | 1,648,000,000 | 620,000,000 | 959,000,000 | 3,493,000,000 |
Investment related gains (losses) | Equity options | ||||
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | 606,000,000 | 77,000,000 | (303,000,000) | 1,365,000,000 |
Investment related gains (losses) | Futures | ||||
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | 50,000,000 | (3,000,000) | 63,000,000 | (17,000,000) |
Investment related gains (losses) | Swap [Member] | ||||
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | 29,000,000 | 8,000,000 | 9,000,000 | 37,000,000 |
Investment related gains (losses) | Foreign currency forwards | ||||
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | (114,000,000) | 42,000,000 | (70,000,000) | 47,000,000 |
Investment related gains (losses) | Embedded derivatives | ||||
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | 1,077,000,000 | 496,000,000 | 1,260,000,000 | 2,061,000,000 |
Interest sensitive contract benefits | Embedded derivatives | ||||
Derivative [Line Items] | ||||
Total gains (losses) for derivatives not designated as hedges | (553,000,000) | (265,000,000) | (910,000,000) | (1,920,000,000) |
Cash flow hedges | Derivatives designated as hedges | Foreign currency swaps | ||||
Derivative [Line Items] | ||||
Foreign currency swap gain (loss) reclassified to income | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments - Offset
Derivative Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative assets | ||
Gross amount recognized | $ 2,771 | $ 2,888 |
Financial instruments | (61) | (67) |
Collateral (received)/pledged | (2,564) | (2,743) |
Net amount | 146 | 78 |
Off-balance sheet securities collateral | (41) | (145) |
Net amount after securities collateral | 105 | (67) |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 |
Derivative liabilities | ||
Gross amount recognized | (147) | (97) |
Financial instruments | 61 | 67 |
Collateral (received)/pledged | 77 | 31 |
Net amount | (9) | 1 |
Net amount after securities collateral | $ 9 | $ 1 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||||
Other Comprehensive Income (Loss), before Tax | $ 875,000,000 | $ 858,000,000 | $ 859,000,000 | $ 3,642,000,000 | |
Derivatives used in Net Investment Hedge, Net of Tax | 3,000,000 | 3,000,000 | $ (2,000,000) | ||
Amount of Ineffectiveness on Net Investment Hedges | 0 | 0 | |||
Cash flow hedges | Derivatives designated as hedges | Foreign currency swaps | |||||
Derivative [Line Items] | |||||
Foreign currency swap gains (losses) | (178,000,000) | 124,000,000 | 140,000,000 | 171,000,000 | |
Foreign currency swap gain (loss) reclassified to income | 0 | 0 | 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, Fair Value Hedge, Included in Effectiveness, Gain (Loss) | (2,000,000) | 2,000,000 | (1,000,000) | 1,000,000 | |
Fair Value Hedging [Member] | Derivatives designated as hedges | Foreign currency forwards | |||||
Derivative [Line Items] | |||||
Derivative, Amount of Hedged Item | 1,739,000,000 | 1,739,000,000 | 456,000,000 | ||
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | 60,000,000 | 60,000,000 | $ 1,000,000 | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (52,000,000) | 13,000,000 | (60,000,000) | 13,000,000 | |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 50,000,000 | $ (11,000,000) | 59,000,000 | $ (12,000,000) | |
Fair Value Hedging [Member] | Derivatives designated as hedges | Net Investment Hedging [Member] | |||||
Derivative [Line Items] | |||||
Other Comprehensive Income (Loss), before Tax | $ 3,000,000 | $ 5,000,000 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Available-for-sale securities | $ 73,988 | $ 71,374 |
Trading securities | 2,069 | 2,070 |
Mortgage loans | 14,591 | 14,306 |
Investment funds | 156 | 154 |
Funds withheld at interest | 48,593 | 15,181 |
Derivative assets | 2,771 | 2,888 |
Short-term investments | 165 | 596 |
Other investments | 949 | 158 |
Restricted cash | 1,226 | 402 |
Reinsurance recoverable | 5,104 | 4,863 |
Liabilities | ||
Interest sensitive contract liabilities | 141,207 | 102,745 |
Future policy benefits | 24,823 | 23,330 |
Derivative liabilities | 147 | 97 |
Funds withheld liability | 440 | 408 |
Related Party | ||
Assets | ||
Available-for-sale securities | 4,857 | 3,804 |
Trading securities | 1,397 | 785 |
Equity securities | 50 | 64 |
Mortgage loans | 640 | 653 |
Investment funds | 1,850 | 819 |
Funds withheld at interest | 13,053 | 13,220 |
Other investments | 467 | 487 |
Liabilities | ||
Interest sensitive contract liabilities | 14,352 | 15,285 |
Future policy benefits | 1,527 | 1,302 |
U.S. government and agencies | ||
Assets | ||
Available-for-sale securities | 73 | 36 |
U.S. state, municipal and political subdivisions | ||
Assets | ||
Available-for-sale securities | 927 | 1,541 |
Foreign governments | ||
Assets | ||
Available-for-sale securities | 340 | 327 |
Corporate | ||
Assets | ||
Available-for-sale securities | 51,129 | 47,228 |
Corporate | Related Party | ||
Assets | ||
Available-for-sale securities | 784 | 19 |
CLO | ||
Assets | ||
Available-for-sale securities | 8,370 | 7,349 |
CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 1,344 | 936 |
ABS | ||
Assets | ||
Available-for-sale securities | 4,200 | 5,118 |
ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 2,729 | 2,849 |
CMBS | ||
Assets | ||
Available-for-sale securities | 2,239 | 2,400 |
RMBS | ||
Assets | ||
Available-for-sale securities | 6,710 | 7,375 |
Level 3 | ||
Assets | ||
Available-for-sale securities | 5,468 | 1,289 |
Recurring | ||
Assets | ||
Investment funds | 819 | |
Recurring | Level 1 | ||
Assets | ||
Available-for-sale securities | 73 | 36 |
Trading securities | 8 | 8 |
Equity securities | 29 | 43 |
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Derivative assets | 48 | 10 |
Short-term investments | 45 | 46 |
Other investments | 0 | 0 |
Cash and cash equivalents | 7,548 | 4,240 |
Restricted cash | 1,226 | 402 |
Reinsurance recoverable | 0 | 0 |
Total assets measured at fair value | 8,977 | 4,785 |
Liabilities | ||
Derivative liabilities | 0 | 1 |
Total liabilities measured at fair value | 5 | 1 |
Recurring | Level 1 | Related Party | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Equity securities | 0 | 0 |
Investment funds | 0 | 0 |
Recurring | Level 1 | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Recurring | Level 1 | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Recurring | Level 1 | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Recurring | Level 1 | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 0 | 0 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 5 | 0 |
Recurring | Level 1 | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | 0 | 0 |
Recurring | Level 1 | U.S. government and agencies | ||
Assets | ||
Available-for-sale securities | 73 | 36 |
Trading securities | 8 | 8 |
Recurring | Level 1 | U.S. state, municipal and political subdivisions | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 1 | Foreign governments | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring | Level 1 | Corporate | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 1 | Corporate | Related Party | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring | Level 1 | CLO | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 1 | CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 1 | ABS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 1 | ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 1 | CMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 1 | RMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 2 | ||
Assets | ||
Available-for-sale securities | 71,740 | 69,032 |
Trading securities | 1,958 | 1,988 |
Equity securities | 220 | 201 |
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Derivative assets | 2,723 | 2,878 |
Short-term investments | 110 | 319 |
Other investments | 109 | 93 |
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Reinsurance recoverable | 0 | 0 |
Total assets measured at fair value | 78,903 | 76,027 |
Liabilities | ||
Derivative liabilities | 50 | 93 |
Total liabilities measured at fair value | 187 | 124 |
Recurring | Level 2 | Related Party | ||
Assets | ||
Available-for-sale securities | 2,019 | 1,480 |
Trading securities | 24 | 36 |
Equity securities | 0 | 0 |
Investment funds | 0 | 0 |
Recurring | Level 2 | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Recurring | Level 2 | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Recurring | Level 2 | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 0 | 0 |
Recurring | Level 2 | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 0 | 0 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 137 | 31 |
Recurring | Level 2 | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | 0 | 0 |
Recurring | Level 2 | U.S. government and agencies | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 3 | 3 |
Recurring | Level 2 | U.S. state, municipal and political subdivisions | ||
Assets | ||
Available-for-sale securities | 893 | 1,501 |
Trading securities | 115 | 135 |
Recurring | Level 2 | Foreign governments | ||
Assets | ||
Available-for-sale securities | 339 | 327 |
Recurring | Level 2 | Corporate | ||
Assets | ||
Available-for-sale securities | 50,229 | 46,503 |
Trading securities | 1,526 | 1,456 |
Recurring | Level 2 | Corporate | Related Party | ||
Assets | ||
Available-for-sale securities | 20 | 19 |
Recurring | Level 2 | CLO | ||
Assets | ||
Available-for-sale securities | 8,179 | 7,228 |
Trading securities | 0 | 0 |
Recurring | Level 2 | CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 1,333 | 936 |
Trading securities | 24 | 36 |
Recurring | Level 2 | ABS | ||
Assets | ||
Available-for-sale securities | 3,221 | 3,744 |
Trading securities | 84 | 92 |
Recurring | Level 2 | ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 666 | 525 |
Trading securities | 0 | 0 |
Recurring | Level 2 | CMBS | ||
Assets | ||
Available-for-sale securities | 2,169 | 2,354 |
Trading securities | 52 | 51 |
Recurring | Level 2 | RMBS | ||
Assets | ||
Available-for-sale securities | 6,710 | 7,375 |
Trading securities | 178 | 251 |
Recurring | Level 3 | ||
Assets | ||
Available-for-sale securities | 2,175 | 2,306 |
Trading securities | 103 | 74 |
Equity securities | 16 | 3 |
Mortgage loans | 19 | 27 |
Investment funds | 17 | 22 |
Derivative assets | 0 | 0 |
Short-term investments | 10 | 41 |
Other investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Reinsurance recoverable | 2,155 | 1,821 |
Total assets measured at fair value | 12,506 | 8,958 |
Liabilities | ||
Derivative liabilities | 0 | 3 |
Total liabilities measured at fair value | 15,463 | 14,296 |
Recurring | Level 3 | Related Party | ||
Assets | ||
Available-for-sale securities | 2,838 | 2,324 |
Trading securities | 1,373 | 749 |
Equity securities | 50 | 64 |
Investment funds | 1,770 | 132 |
Recurring | Level 3 | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 1,363 | 1,050 |
Recurring | Level 3 | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 1,577 | 1,546 |
Recurring | Level 3 | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 777 | 755 |
Recurring | Level 3 | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 1,259 | 801 |
Liabilities | ||
Interest sensitive contract liabilities | 11,741 | 10,942 |
Funds withheld liability | 5 | 0 |
Recurring | Level 3 | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | 721 | 594 |
Recurring | Level 3 | U.S. government and agencies | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring | Level 3 | U.S. state, municipal and political subdivisions | ||
Assets | ||
Available-for-sale securities | 34 | 40 |
Trading securities | 0 | 0 |
Recurring | Level 3 | Foreign governments | ||
Assets | ||
Available-for-sale securities | 1 | 0 |
Recurring | Level 3 | Corporate | ||
Assets | ||
Available-for-sale securities | 900 | 725 |
Trading securities | 6 | 0 |
Recurring | Level 3 | Corporate | Related Party | ||
Assets | ||
Available-for-sale securities | 764 | 0 |
Recurring | Level 3 | CLO | ||
Assets | ||
Available-for-sale securities | 191 | 121 |
Trading securities | 3 | 6 |
Recurring | Level 3 | CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 11 | 0 |
Trading securities | 28 | 38 |
Recurring | Level 3 | ABS | ||
Assets | ||
Available-for-sale securities | 979 | 1,374 |
Trading securities | 35 | 16 |
Recurring | Level 3 | ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 2,063 | 2,324 |
Trading securities | 1,345 | 711 |
Recurring | Level 3 | CMBS | ||
Assets | ||
Available-for-sale securities | 70 | 46 |
Trading securities | 0 | 0 |
Recurring | Level 3 | RMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 59 | 52 |
Recurring | NAV | ||
Assets | ||
Investment funds | 139 | 132 |
Total assets measured at fair value | 219 | |
Recurring | NAV | Related Party | ||
Assets | ||
Investment funds | 80 | 687 |
Fair Value | ||
Assets | ||
Mortgage loans | 15,114 | 14,719 |
Investment funds | 567 | 596 |
Funds withheld at interest | 47,334 | 14,380 |
Short-term investments | 190 | |
Other investments | 852 | 65 |
Total assets measured at fair value | 80,661 | 46,902 |
Liabilities | ||
Interest sensitive contract liabilities | 96,125 | 58,027 |
Funds withheld liability | 390 | 377 |
Fair Value | Related Party | ||
Assets | ||
Mortgage loans | 628 | 641 |
Investment funds | 2,958 | 2,731 |
Funds withheld at interest | 12,332 | 12,626 |
Other investments | 489 | 537 |
Fair Value | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | 0 |
Short-term investments | 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 | 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 | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Funds withheld at interest | 0 | 0 |
Short-term investments | 0 | |
Other investments | 0 | 0 |
Total assets measured at fair value | 387 | 417 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Funds withheld liability | 390 | 377 |
Fair Value | 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 | Level 3 | ||
Assets | ||
Mortgage loans | 15,114 | 14,719 |
Investment funds | 0 | 0 |
Funds withheld at interest | 47,334 | 14,380 |
Short-term investments | 190 | |
Other investments | 852 | 65 |
Total assets measured at fair value | 76,749 | 43,158 |
Liabilities | ||
Interest sensitive contract liabilities | 96,125 | 58,027 |
Funds withheld liability | 0 | 0 |
Fair Value | Level 3 | Related Party | ||
Assets | ||
Mortgage loans | 628 | 641 |
Investment funds | 0 | 0 |
Funds withheld at interest | 12,332 | 12,626 |
Other investments | 489 | 537 |
Fair Value | NAV | ||
Assets | ||
Investment funds | 567 | 596 |
Total assets measured at fair value | 3,525 | 3,327 |
Fair Value | NAV | Related Party | ||
Assets | ||
Investment funds | 2,958 | 2,731 |
Fair Value | Recurring | ||
Assets | ||
Available-for-sale securities | 73,988 | 71,374 |
Trading securities | 2,069 | 2,070 |
Equity securities | 265 | 247 |
Mortgage loans | 19 | 27 |
Investment funds | 156 | 154 |
Funds withheld at interest | 1,259 | 801 |
Derivative assets | 2,771 | 2,888 |
Short-term investments | 165 | 406 |
Other investments | 109 | 93 |
Cash and cash equivalents | 7,548 | 4,240 |
Restricted cash | 1,226 | 402 |
Reinsurance recoverable | 2,155 | 1,821 |
Total assets measured at fair value | 100,605 | 90,589 |
Liabilities | ||
Interest sensitive contract liabilities | 13,104 | 11,992 |
Future policy benefits | 2,354 | 2,301 |
Derivative liabilities | 147 | 97 |
Funds withheld liability | 50 | 31 |
Total liabilities measured at fair value | 15,655 | 14,421 |
Fair Value | Recurring | Related Party | ||
Assets | ||
Available-for-sale securities | 4,857 | 3,804 |
Trading securities | 1,397 | 785 |
Equity securities | 50 | 64 |
Investment funds | 1,850 | 819 |
Funds withheld at interest | 721 | 594 |
Fair Value | Recurring | Universal life | ||
Liabilities | ||
Interest sensitive contract liabilities | 1,363 | 1,050 |
Fair Value | Recurring | AmerUs Closed Block | ||
Liabilities | ||
Future policy benefits | 1,577 | 1,546 |
Fair Value | Recurring | ILICO Closed Block and life benefits | ||
Liabilities | ||
Future policy benefits | 777 | 755 |
Fair Value | Recurring | Embedded derivatives | ||
Assets | ||
Funds withheld at interest | 1,259 | 801 |
Liabilities | ||
Interest sensitive contract liabilities | 11,741 | 10,942 |
Funds withheld liability | 50 | 31 |
Fair Value | Recurring | Embedded derivatives | Related Party | ||
Assets | ||
Funds withheld at interest | 721 | 594 |
Fair Value | Recurring | U.S. government and agencies | ||
Assets | ||
Available-for-sale securities | 73 | 36 |
Trading securities | 11 | 11 |
Fair Value | Recurring | U.S. state, municipal and political subdivisions | ||
Assets | ||
Available-for-sale securities | 927 | 1,541 |
Trading securities | 115 | 135 |
Fair Value | Recurring | Foreign governments | ||
Assets | ||
Available-for-sale securities | 340 | 327 |
Fair Value | Recurring | Corporate | ||
Assets | ||
Available-for-sale securities | 51,129 | 47,228 |
Trading securities | 1,532 | 1,456 |
Fair Value | Recurring | Corporate | Related Party | ||
Assets | ||
Available-for-sale securities | 784 | 19 |
Fair Value | Recurring | CLO | ||
Assets | ||
Available-for-sale securities | 8,370 | 7,349 |
Trading securities | 3 | 6 |
Fair Value | Recurring | CLO | Related Party | ||
Assets | ||
Available-for-sale securities | 1,344 | 936 |
Trading securities | 52 | 74 |
Fair Value | Recurring | ABS | ||
Assets | ||
Available-for-sale securities | 4,200 | 5,118 |
Trading securities | 119 | 108 |
Fair Value | Recurring | ABS | Related Party | ||
Assets | ||
Available-for-sale securities | 2,729 | 2,849 |
Trading securities | 1,345 | 711 |
Fair Value | Recurring | CMBS | ||
Assets | ||
Available-for-sale securities | 2,239 | 2,400 |
Trading securities | 52 | 51 |
Fair Value | Recurring | RMBS | ||
Assets | ||
Available-for-sale securities | 6,710 | 7,375 |
Trading securities | $ 237 | $ 303 |
Fair Value - Fair Value Option
Fair Value - Fair Value Option (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Total gains (losses) | $ (37,000,000) | $ 14,000,000 | $ 70,000,000 | $ 58,000,000 | |
Mortgage loans | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value option, loans, 90 days or more past due | 0 | 0 | $ 0 | ||
Total gains (losses) | 0 | 0 | 0 | 1,000,000 | |
Unpaid principal balance | 17,000,000 | 17,000,000 | 25,000,000 | ||
Mark to fair value | 2,000,000 | 2,000,000 | 2,000,000 | ||
Fair value | 19,000,000 | 19,000,000 | $ 27,000,000 | ||
Investment related gains (losses) | Trading securities | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Total gains (losses) | 24,000,000 | 48,000,000 | (8,000,000) | 183,000,000 | |
Net investment income | Investment funds | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Total gains (losses) | (57,000,000) | 3,000,000 | 109,000,000 | 3,000,000 | |
Future policy and other policy benefits | Future policy benefits | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Total gains (losses) | $ (4,000,000) | $ (37,000,000) | $ (31,000,000) | $ (129,000,000) |
Fair Value Fair Value - Reconci
Fair Value Fair Value - Reconciliation of Level 3 Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | $ 10,447 | $ 7,112 | $ 8,958 | $ 5,528 |
Total realized and unrealized gains (losses) included in income | 650 | 369 | 1,019 | 1,776 |
Total realized and unrealized gains (losses) included in OCI | 109 | 34 | (95) | 98 |
Purchases, issuances, sales and settlements, net | 1,267 | 1,236 | 2,710 | 1,636 |
Transfers in | 33 | (339) | (86) | (626) |
Transfers (out) | (429) | (453) | (340) | (891) |
Ending balance | 12,506 | 8,412 | 12,506 | 8,412 |
Total gains (losses) included in earnings | 19 | 3 | 86 | (2) |
Beginning balance | (14,802) | (13,264) | (14,296) | (11,078) |
Total realized and unrealized gains (losses) included in income | (613) | (421) | (1,278) | (2,326) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | (48) | (103) | 111 | (384) |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | (15,463) | (13,788) | (15,463) | (13,788) |
Total gains (losses) included in earnings | 0 | 0 | (2) | 0 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 121 | (93) | ||
Reinsurance Recoverable Including Reinsurance Premium Paid [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 2,099 | 1,834 | 1,821 | 1,676 |
Total realized and unrealized gains (losses) included in income | 56 | 120 | 334 | 278 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Ending balance | 2,155 | 1,954 | 2,155 | 1,954 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Short-term Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 114 | 45 | 41 | 0 |
Total realized and unrealized gains (losses) included in income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | (16) | 181 | (31) | 226 |
Transfers in | (88) | 0 | 0 | 0 |
Ending balance | 10 | 226 | 10 | 226 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Mortgage loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 25 | 32 | 27 | 32 |
Total realized and unrealized gains (losses) included in income | 0 | 0 | 0 | 1 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | (6) | (4) | (8) | (5) |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | 19 | 28 | 19 | 28 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 1 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Investment funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 17 | 25 | 22 | 29 |
Total realized and unrealized gains (losses) included in income | 0 | (1) | (5) | (2) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | (2) | 0 | (5) |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | ||
Ending balance | 17 | 22 | 17 | 22 |
Total gains (losses) included in earnings | 0 | (1) | (4) | (2) |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 6 | 3 | 3 | 3 |
Total realized and unrealized gains (losses) included in income | 0 | 0 | 3 | 0 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 10 | 0 | 10 | 0 |
Transfers in | 0 | (2) | 0 | (2) |
Transfers (out) | 0 | (2) | 0 | (2) |
Ending balance | 16 | 1 | 16 | 1 |
Total gains (losses) included in earnings | 2 | 0 | 3 | 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Embedded derivatives | Funds withheld at interest | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 763 | 704 | 801 | 57 |
Total realized and unrealized gains (losses) included in income | 496 | 100 | 458 | 747 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Ending balance | 1,259 | 804 | 1,259 | 804 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Related Party | Investment funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 1,810 | 141 | 132 | 120 |
Total realized and unrealized gains (losses) included in income | (56) | (1) | 113 | 1 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 16 | 0 | 1,525 | 19 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | |
Ending balance | 1,770 | 140 | 1,770 | 140 |
Total gains (losses) included in earnings | 0 | 1 | 113 | 3 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Related Party | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 52 | 350 | 64 | 133 |
Total realized and unrealized gains (losses) included in income | 0 | 6 | (5) | 15 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | (2) | 31 | (3) | 239 |
Transfers in | 0 | 0 | (6) | 0 |
Transfers (out) | 0 | 0 | (6) | 0 |
Ending balance | 50 | 387 | 50 | 387 |
Total gains (losses) included in earnings | 1 | 0 | (5) | (2) |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Related Party | Embedded derivatives | Funds withheld at interest | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 560 | 501 | 594 | (110) |
Total realized and unrealized gains (losses) included in income | 161 | 154 | 127 | 765 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Ending balance | 721 | 655 | 721 | 655 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
RMBS | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 16 | 56 | ||
Total realized and unrealized gains (losses) included in income | 0 | 0 | ||
Total realized and unrealized gains (losses) included in OCI | 2 | 4 | ||
Purchases, issuances, sales and settlements, net | (2) | 2 | ||
Transfers in | (16) | (62) | ||
Transfers (out) | (16) | (62) | ||
Ending balance | 0 | 0 | 0 | 0 |
Total gains (losses) included in earnings | 0 | 0 | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | |||
RMBS | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 55 | 46 | 52 | 134 |
Total realized and unrealized gains (losses) included in income | (3) | (5) | (4) | (13) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 15 | 0 | 15 |
Transfers in | 7 | 35 | 11 | (45) |
Transfers (out) | (1) | 0 | (1) | (79) |
Ending balance | 59 | 91 | 59 | 91 |
Total gains (losses) included in earnings | 0 | (2) | 5 | 3 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
ABS | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 868 | 1,396 | 1,374 | 1,615 |
Total realized and unrealized gains (losses) included in income | (4) | 1 | 19 | 6 |
Total realized and unrealized gains (losses) included in OCI | 12 | 12 | (71) | 43 |
Purchases, issuances, sales and settlements, net | (44) | 16 | (301) | 43 |
Transfers in | 147 | (137) | (42) | (419) |
Transfers (out) | (71) | (137) | (106) | (419) |
Ending balance | 979 | 1,288 | 979 | 1,288 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 13 | (69) | ||
ABS | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 0 | 6 | 16 | 0 |
Total realized and unrealized gains (losses) included in income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 35 | (1) | 19 | 5 |
Transfers in | 0 | 78 | 0 | 78 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | 35 | 83 | 35 | 83 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
ABS | Related Party | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 2,061 | 399 | 2,324 | 328 |
Total realized and unrealized gains (losses) included in income | 8 | 0 | 9 | 0 |
Total realized and unrealized gains (losses) included in OCI | 25 | 8 | (20) | 21 |
Purchases, issuances, sales and settlements, net | (31) | 587 | (85) | 748 |
Transfers in | 0 | 0 | (165) | (103) |
Transfers (out) | 0 | 0 | (165) | (103) |
Ending balance | 2,063 | 994 | 2,063 | 994 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 25 | (20) | ||
ABS | Related Party | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 824 | 218 | 711 | 149 |
Total realized and unrealized gains (losses) included in income | 14 | 4 | (13) | (13) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 507 | 2 | 647 | (15) |
Transfers in | 0 | 0 | 0 | 103 |
Transfers (out) | 0 | 0 | 0 | |
Ending balance | 1,345 | 224 | 1,345 | 224 |
Total gains (losses) included in earnings | 13 | 5 | (14) | (13) |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
CLO | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 160 | 200 | 121 | 107 |
Total realized and unrealized gains (losses) included in income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) included in OCI | 2 | 1 | 0 | 3 |
Purchases, issuances, sales and settlements, net | (7) | 34 | 56 | 60 |
Transfers in | 36 | (104) | 14 | (39) |
Transfers (out) | 0 | (104) | (22) | (39) |
Ending balance | 191 | 131 | 191 | 131 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 2 | 0 | ||
CLO | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 3 | 7 | 6 | 1 |
Total realized and unrealized gains (losses) included in income | 0 | (1) | (3) | (1) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 6 |
Transfers (out) | 0 | |||
Ending balance | 3 | 6 | 3 | 6 |
Total gains (losses) included in earnings | 0 | 0 | (1) | 6 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
CLO | Related Party | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 0 | 37 | 0 | |
Total realized and unrealized gains (losses) included in income | 0 | 0 | 0 | |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | |
Purchases, issuances, sales and settlements, net | 11 | 0 | 11 | |
Transfers in | 0 | (37) | 0 | |
Transfers (out) | 0 | (37) | 0 | |
Ending balance | 11 | 0 | 11 | 0 |
Total gains (losses) included in earnings | 0 | 0 | 0 | |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
CLO | Related Party | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 45 | 95 | 38 | 113 |
Total realized and unrealized gains (losses) included in income | 3 | (5) | (11) | (7) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | (7) | 1 | (54) |
Transfers in | (20) | (23) | 0 | 8 |
Transfers (out) | (24) | (23) | 0 | (35) |
Ending balance | 28 | 60 | 28 | 60 |
Total gains (losses) included in earnings | 3 | 0 | (11) | 2 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Corporate | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 874 | 821 | 725 | 898 |
Total realized and unrealized gains (losses) included in income | (26) | (3) | 1 | (2) |
Total realized and unrealized gains (losses) included in OCI | 62 | 10 | (1) | 20 |
Purchases, issuances, sales and settlements, net | 39 | 189 | 118 | 164 |
Transfers in | (49) | (70) | 57 | (133) |
Transfers (out) | (206) | (71) | (40) | (134) |
Ending balance | 900 | 947 | 900 | 947 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 75 | (1) | ||
Corporate | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 6 | 6 | 0 | |
Total realized and unrealized gains (losses) included in income | 0 | 0 | 0 | |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | |
Transfers in | 0 | (6) | 6 | |
Transfers (out) | (6) | 0 | ||
Ending balance | 6 | 0 | 6 | 0 |
Total gains (losses) included in earnings | 0 | 0 | 0 | |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Corporate | Related Party | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 0 | 0 | ||
Total realized and unrealized gains (losses) included in income | 1 | 1 | ||
Total realized and unrealized gains (losses) included in OCI | 2 | 2 | ||
Purchases, issuances, sales and settlements, net | 761 | 761 | ||
Transfers in | 0 | 0 | ||
Transfers (out) | 0 | 0 | ||
Ending balance | 764 | 764 | ||
Total gains (losses) included in earnings | 0 | 0 | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 2 | 2 | ||
CMBS | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 49 | 206 | 46 | 187 |
Total realized and unrealized gains (losses) included in income | 0 | 0 | (5) | 1 |
Total realized and unrealized gains (losses) included in OCI | 5 | 3 | (5) | 7 |
Purchases, issuances, sales and settlements, net | 0 | 195 | (5) | 154 |
Transfers in | 16 | (73) | 39 | (18) |
Transfers (out) | (23) | (73) | 0 | (18) |
Ending balance | 70 | 331 | 70 | 331 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 5 | (5) | ||
Foreign governments | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 0 | 0 | ||
Total realized and unrealized gains (losses) included in income | 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 | 1 | 1 | ||
Total gains (losses) included in earnings | 0 | 0 | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
U.S. state, municipal and political subdivisions | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 40 | 40 | 40 | 0 |
Total realized and unrealized gains (losses) included in income | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) included in OCI | (1) | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | (5) | 0 | (6) | 40 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | |
Ending balance | 34 | 40 | 34 | 40 |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | (1) | 0 | ||
Derivative Financial Instruments, Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | (5) | (4) | (3) | (4) |
Total realized and unrealized gains (losses) included in income | 0 | 0 | (2) | 0 |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Ending balance | (5) | (4) | (5) | (4) |
Total gains (losses) included in earnings | 0 | 0 | (2) | 0 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Interest sensitive contract liabilities | Embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | (11,140) | (9,905) | (10,942) | (7,969) |
Total realized and unrealized gains (losses) included in income | (553) | (265) | (910) | (1,920) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | (48) | (103) | 111 | (384) |
Transfers in | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Ending balance | (11,741) | (10,273) | (11,741) | (10,273) |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Universal life | Interest sensitive contract liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | (1,323) | (1,051) | (1,050) | (932) |
Total realized and unrealized gains (losses) included in income | (40) | (91) | (313) | (210) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Ending balance | (1,363) | (1,142) | (1,363) | (1,142) |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
AmerUs Closed Block | Future policy benefits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | (1,573) | (1,535) | (1,546) | (1,443) |
Total realized and unrealized gains (losses) included in income | (4) | (37) | (31) | (129) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Ending balance | (1,577) | (1,572) | (1,577) | (1,572) |
Total gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
ILICO Closed Block and life benefits | Future policy benefits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | (761) | (769) | (755) | (730) |
Total realized and unrealized gains (losses) included in income | (16) | (28) | (22) | (67) |
Total realized and unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Purchases, issuances, sales and settlements, net | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Ending balance | (777) | (797) | (777) | (797) |
Total gains (losses) included in earnings | 0 | $ 0 | 0 | $ 0 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | $ 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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | $ 1,473 | $ 1,386 | $ 3,468 | $ 2,183 |
Issuances | 0 | 0 | 0 | 0 |
Sales | (95) | (34) | (102) | (110) |
Settlements | (111) | (116) | (656) | (437) |
Purchases, (Sales), Issuances, (Settlements) | 1,267 | 1,236 | 2,710 | 1,636 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 462 | 114 | 254 | 265 |
Transfers (out) | (429) | (453) | (340) | (891) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 33 | (339) | (86) | (626) |
Purchases | 0 | 0 | 0 | 0 |
Issuances | (202) | (222) | (964) | (756) |
Sales | 0 | 0 | 0 | 0 |
Settlements | 154 | 119 | 1,075 | 372 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | (48) | (103) | 111 | (384) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 0 | 0 | 0 | 0 |
Short-term Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 1 | 200 | 1 | 248 |
Sales | (7) | 0 | (7) | 0 |
Settlements | (10) | (19) | (25) | (22) |
Purchases, (Sales), Issuances, (Settlements) | (16) | 181 | (31) | 226 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Transfers (out) | (88) | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | (88) | 0 | 0 | 0 |
Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 10 | 10 | ||
Sales | 0 | 0 | ||
Purchases, (Sales), Issuances, (Settlements) | 10 | 0 | 10 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | (2) | 0 | (2) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | (2) | 0 | (2) |
Equity securities | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 2 | 31 | 3 | 243 |
Sales | (1) | 0 | (2) | (4) |
Settlements | (3) | 0 | (4) | 0 |
Purchases, (Sales), Issuances, (Settlements) | (2) | 31 | (3) | 239 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | (6) | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | (6) | 0 |
Investment funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Issuances | 0 | |||
Sales | (2) | (5) | ||
Settlements | 0 | 0 | ||
Purchases, (Sales), Issuances, (Settlements) | (2) | (5) | ||
Investment funds | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 16 | 1,525 | 19 | |
Issuances | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | |
Purchases, (Sales), Issuances, (Settlements) | 16 | 1,525 | 19 | |
U.S. state, municipal and political subdivisions | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 0 | 0 | 40 | |
Sales | (5) | (5) | 0 | |
Settlements | 0 | (1) | 0 | |
Purchases, (Sales), Issuances, (Settlements) | (5) | 0 | (6) | 40 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | 0 | |
Transfers (out) | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | 0 | 0 |
Foreign governments | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 1 | 1 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Purchases, (Sales), Issuances, (Settlements) | 1 | 1 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | ||
Transfers (out) | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | ||
Corporate | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 58 | 199 | 245 | 277 |
Sales | 0 | 0 | 0 | (2) |
Settlements | (19) | (10) | (127) | (111) |
Purchases, (Sales), Issuances, (Settlements) | 39 | 189 | 118 | 164 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 157 | 1 | 97 | 1 |
Transfers (out) | (206) | (71) | (40) | (134) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | (49) | (70) | 57 | (133) |
Corporate | AFS securities | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 761 | 761 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Purchases, (Sales), Issuances, (Settlements) | 761 | 761 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | ||
Transfers (out) | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | ||
Corporate | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 6 | ||
Transfers (out) | (6) | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | (6) | 6 | |
CLO | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 12 | 37 | 90 | 64 |
Sales | (18) | 0 | (25) | 0 |
Settlements | (1) | (3) | (9) | (4) |
Purchases, (Sales), Issuances, (Settlements) | (7) | 34 | 56 | 60 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 36 | 0 | 36 | 0 |
Transfers (out) | 0 | (104) | (22) | (39) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 36 | (104) | 14 | (39) |
CLO | AFS securities | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 11 | 0 | 11 | |
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Purchases, (Sales), Issuances, (Settlements) | 11 | 0 | 11 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | 0 | |
Transfers (out) | 0 | (37) | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | (37) | 0 | |
CLO | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 0 | |||
Sales | 0 | |||
Settlements | 0 | |||
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 6 | |||
Transfers (out) | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | 0 | 6 |
CLO | Trading securities | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 0 | 0 | 13 | 0 |
Sales | 0 | (7) | (12) | (54) |
Settlements | 0 | 0 | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 0 | (7) | 1 | (54) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 4 | 0 | 0 | 43 |
Transfers (out) | (24) | (23) | 0 | (35) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | (20) | (23) | 0 | 8 |
RMBS | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 0 | 2 | ||
Sales | (1) | 0 | ||
Settlements | (1) | 0 | ||
Purchases, (Sales), Issuances, (Settlements) | (2) | 2 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | ||
Transfers (out) | (16) | (62) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | (16) | (62) | ||
RMBS | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 0 | 15 | 0 | 15 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Purchases, (Sales), Issuances, (Settlements) | 0 | 15 | 0 | 15 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 8 | 35 | 12 | 34 |
Transfers (out) | (1) | 0 | (1) | (79) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 7 | 35 | 11 | (45) |
ABS | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 47 | 64 | 95 | 260 |
Sales | (43) | (21) | (6) | (41) |
Settlements | (48) | (27) | (390) | (176) |
Purchases, (Sales), Issuances, (Settlements) | (44) | 16 | (301) | 43 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 218 | 0 | 64 | 0 |
Transfers (out) | (71) | (137) | (106) | (419) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 147 | (137) | (42) | (419) |
ABS | AFS securities | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 2 | 587 | 7 | 757 |
Sales | (10) | 0 | (15) | 0 |
Settlements | (23) | 0 | (77) | (9) |
Purchases, (Sales), Issuances, (Settlements) | (31) | 587 | (85) | 748 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | (165) | (103) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | (165) | (103) |
ABS | Trading securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 35 | 0 | 35 | 6 |
Sales | 0 | 0 | (16) | 0 |
Settlements | 0 | (1) | 0 | (1) |
Purchases, (Sales), Issuances, (Settlements) | 35 | (1) | 19 | 5 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 78 | 0 | 78 |
Transfers (out) | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 78 | 0 | 78 |
ABS | Trading securities | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 517 | 2 | 671 | 0 |
Sales | (10) | 0 | (10) | 0 |
Settlements | 0 | 0 | (14) | (15) |
Purchases, (Sales), Issuances, (Settlements) | 507 | 2 | 647 | (15) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | 0 | |
Transfers (out) | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | 0 | 103 |
CMBS | AFS securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 0 | 251 | 0 | 252 |
Sales | 0 | (4) | (4) | (4) |
Settlements | 0 | (52) | (1) | (94) |
Purchases, (Sales), Issuances, (Settlements) | 0 | 195 | (5) | 154 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 39 | 0 | 39 | 0 |
Transfers (out) | (23) | (73) | 0 | (18) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 16 | (73) | 39 | (18) |
Mortgage loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Settlements | (6) | (4) | (8) | (5) |
Purchases, (Sales), Issuances, (Settlements) | (6) | (4) | (8) | (5) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | 0 | 0 |
Short-term Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases, (Sales), Issuances, (Settlements) | (16) | 181 | (31) | 226 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | (88) | 0 | 0 | 0 |
Investment funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases, (Sales), Issuances, (Settlements) | 0 | (2) | 0 | (5) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | ||
Transfers (out) | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | 0 | 0 |
Investment funds | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases, (Sales), Issuances, (Settlements) | 16 | 0 | 1,525 | 19 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | 0 | |
Transfers (out) | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | 0 | 0 |
Reinsurance Recoverable Including Reinsurance Premium Paid [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | 0 | 0 |
Embedded derivatives | Funds withheld at interest | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | 0 | 0 |
Embedded derivatives | Funds withheld at interest | Related Party | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases, (Sales), Issuances, (Settlements) | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | 0 | 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] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 103 | |||
Transfers (out) | 0 | |||
Interest sensitive contract liabilities | Embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 0 | 0 | 0 | 0 |
Issuances | (202) | (222) | (964) | (756) |
Sales | 0 | 0 | 0 | 0 |
Settlements | 154 | 119 | 1,075 | 372 |
Purchases, (Sales), Issuances, (Settlements), Liabilities | (48) | (103) | 111 | (384) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Transfers (out) | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 0 | 0 | 0 | 0 |
Derivative Financial Instruments, Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases, (Sales), Issuances, (Settlements), Liabilities | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value - Summary of Unobser
Fair Value - Summary of Unobservable Inputs for the Embedded Derivatives of Interest Sensitive Contract Liabilities (Details) $ in Millions | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 73,988 | $ 71,374 |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 5,468 | $ 1,289 |
Nonperformance risk | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.001 | 0.002 |
Nonperformance risk | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.015 | 0.011 |
Nonperformance risk | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.008 | 0.006 |
Option budget | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.006 | 0.007 |
Option budget | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.036 | 0.037 |
Option budget | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.019 | 0.019 |
Surrender rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.053 | 0.035 |
Surrender rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.097 | 0.081 |
Surrender rate | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability, measurement input | 0.071 | 0.071 |
Measurement Input, Discount Rate [Member] | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.020 | 0.030 |
Measurement Input, Discount Rate [Member] | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.350 | 0.090 |
Measurement Input, Discount Rate [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.057 | 0.066 |
Embedded derivatives | Interest sensitive contract liabilities | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total liabilities measured at fair value | $ 11,741 | $ 10,942 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Mortgage loans | $ 14,591 | $ 14,306 |
Investment funds | 723 | 750 |
Investment funds | 156 | 154 |
Policy loans | 387 | 417 |
Funds withheld at interest | 48,593 | 15,181 |
Other investments | 949 | 158 |
Short-term investments | 165 | 596 |
Liabilities | ||
Interest sensitive contract liabilities | 141,207 | 102,745 |
Short-term Debt | 0 | 475 |
Long-term debt | 1,487 | 992 |
Funds withheld liability | 440 | 408 |
Carrying Value | ||
Assets | ||
Mortgage loans | 14,572 | 14,279 |
Investment funds | 567 | 596 |
Policy loans | 387 | 417 |
Funds withheld at interest | 47,334 | 14,380 |
Other investments | 840 | 65 |
Short-term investments | 190 | |
Total assets measured at fair value | 80,097 | 46,424 |
Liabilities | ||
Interest sensitive contract liabilities | 92,088 | 57,272 |
Short-term Debt | 475 | |
Long-term debt | 1,487 | 992 |
Securities Sold under Agreements to Repurchase | 1,098 | 512 |
Funds withheld liability | 390 | 377 |
Total liabilities not carried at fair value | 95,063 | 59,628 |
Fair Value | ||
Assets | ||
Mortgage loans | 15,114 | 14,719 |
Investment funds | 567 | 596 |
Policy loans | 387 | 417 |
Funds withheld at interest | 47,334 | 14,380 |
Other investments | 852 | 65 |
Short-term investments | 190 | |
Total assets measured at fair value | 80,661 | 46,902 |
Liabilities | ||
Interest sensitive contract liabilities | 96,125 | 58,027 |
Short-term Debt | 475 | |
Long-term debt | 1,099 | 1,036 |
Securities Sold under Agreements to Repurchase | 1,098 | 512 |
Funds withheld liability | 390 | 377 |
Total liabilities not carried at fair value | 98,712 | 60,427 |
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 |
Short-term investments | 0 | |
Total assets measured at fair value | 0 | 0 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Short-term Debt | 0 | |
Long-term debt | 0 | 0 |
Securities Sold under Agreements to Repurchase | 0 | 0 |
Funds withheld liability | 0 | 0 |
Total liabilities not carried at fair value | 0 | 0 |
Level 3 | Fair Value | ||
Assets | ||
Mortgage loans | 15,114 | 14,719 |
Investment funds | 0 | 0 |
Policy loans | 0 | 0 |
Funds withheld at interest | 47,334 | 14,380 |
Other investments | 852 | 65 |
Short-term investments | 190 | |
Total assets measured at fair value | 76,749 | 43,158 |
Liabilities | ||
Interest sensitive contract liabilities | 96,125 | 58,027 |
Short-term Debt | 0 | |
Long-term debt | 0 | 0 |
Securities Sold under Agreements to Repurchase | 0 | 0 |
Funds withheld liability | 0 | 0 |
Total liabilities not carried at fair value | 96,125 | 58,027 |
NAV | Fair Value | ||
Assets | ||
Investment funds | 567 | 596 |
Total assets measured at fair value | 3,525 | 3,327 |
Level 2 | Fair Value | ||
Assets | ||
Mortgage loans | 0 | 0 |
Investment funds | 0 | 0 |
Policy loans | 387 | 417 |
Funds withheld at interest | 0 | 0 |
Other investments | 0 | 0 |
Short-term investments | 0 | |
Total assets measured at fair value | 387 | 417 |
Liabilities | ||
Interest sensitive contract liabilities | 0 | 0 |
Short-term Debt | 475 | |
Long-term debt | 1,099 | 1,036 |
Securities Sold under Agreements to Repurchase | 1,098 | 512 |
Funds withheld liability | 390 | 377 |
Total liabilities not carried at fair value | 2,587 | 2,400 |
Related Party | ||
Assets | ||
Mortgage loans | 640 | 653 |
Investment funds | 4,808 | 3,550 |
Investment funds | 1,850 | 819 |
Funds withheld at interest | 13,053 | 13,220 |
Other investments | 467 | 487 |
Liabilities | ||
Interest sensitive contract liabilities | 14,352 | 15,285 |
Related Party | Carrying Value | ||
Assets | ||
Mortgage loans | 640 | 653 |
Investment funds | 2,958 | 2,731 |
Funds withheld at interest | 12,332 | 12,626 |
Other investments | 467 | 487 |
Related Party | Fair Value | ||
Assets | ||
Mortgage loans | 628 | 641 |
Investment funds | 2,958 | 2,731 |
Funds withheld at interest | 12,332 | 12,626 |
Other investments | 489 | 537 |
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 |
Related Party | Level 3 | Fair Value | ||
Assets | ||
Mortgage loans | 628 | 641 |
Investment funds | 0 | 0 |
Funds withheld at interest | 12,332 | 12,626 |
Other investments | 489 | 537 |
Related Party | NAV | Fair Value | ||
Assets | ||
Investment funds | 2,958 | 2,731 |
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 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Fair Value Disclosures [Abstract] | |
Carrying amount of equity securities | $ 433,000,000 |
Recorded impairment of financial instruments without readily determinable fair values | $ 0 |
Reinsurance - Transactions (Det
Reinsurance - Transactions (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jul. 17, 2020 | Jul. 01, 2020 | Jun. 01, 2020 | Dec. 31, 2019 |
Effects of Reinsurance [Line Items] | |||||
Equity Securities without Readily Determinable Fair Value, Amount | $ 433 | ||||
Liabilities | 173,971 | $ 132,734 | |||
Assets | 191,088 | 146,875 | |||
Interest sensitive contract liabilities | (141,207) | (102,745) | |||
Funds withheld at interest | $ 48,593 | $ 15,181 | |||
MassMutual [Member] | |||||
Effects of Reinsurance [Line Items] | |||||
Funds withheld at interest | $ 5,021 | ||||
Reinsurance Agreement | |||||
Effects of Reinsurance [Line Items] | |||||
Equity Securities without Readily Determinable Fair Value, Amount | $ 500 | ||||
Liabilities | $ 27,439 | ||||
Assets | 28,805 | ||||
Interest sensitive contract liabilities | $ (1,366) |
Reinsurance - Premiums and futu
Reinsurance - Premiums and future policy benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Insurance [Abstract] | ||||
Direct Premiums Earned | $ 42 | $ 2,661 | $ 1,424 | $ 5,405 |
Assumed Premiums Earned | 101 | 57 | 284 | 193 |
Ceded Premiums Earned | (31) | (30) | (101) | (123) |
Premiums Earned, Net | 112 | 2,688 | 1,607 | 5,475 |
Policyholder Benefits and Claims Incurred, Direct | 385 | 3,025 | 2,404 | 6,481 |
Policyholder Benefits and Claims Incurred, Assumed | 161 | 77 | 370 | 313 |
Policyholder Benefits and Claims Incurred, Ceded | (107) | (147) | (305) | (399) |
Policyholder Benefits and Claims Incurred, Net | $ 439 | $ 2,955 | $ 2,469 | $ 6,395 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
DAC | ||||
Beginning balance | $ 3,274 | $ 3,921 | ||
Additions | 470 | 521 | ||
Deferred Policy Acquisition Cost, Amortization Expense, Assumption Change | (36) | (117) | ||
Amortization | (175) | (637) | ||
Impact of unrealized investment (gains) losses | (116) | (458) | ||
Ending balance | $ 3,429 | $ 3,230 | 3,429 | 3,230 |
DSI | ||||
Beginning balance | 820 | 799 | ||
Additions | 124 | 187 | ||
Deferred Sales Inducement Cost, Amortization Expense, Assumption Change | (13) | (9) | ||
Deferred sales inducement amortization expense excluding unlocking | (24) | (29) | ||
Amortization | (48) | (20) | (37) | (38) |
Impact of unrealized investment (gains) losses | (45) | (141) | ||
Ending balance | 867 | 807 | 867 | 807 |
VOBA | ||||
Beginning balance | 914 | 1,187 | ||
Additions | 0 | 0 | ||
Present Value of Future Insurance Profits, Amortization Expense, Assumption Change | (11) | (24) | ||
Amortization | (25) | (37) | ||
Impact of unrealized investment (gains) losses | (14) | (203) | ||
Ending balance | 869 | 923 | 869 | 923 |
Total | ||||
Beginning balance | 5,008 | 5,907 | ||
Additions | 594 | 708 | ||
Unlocking | (60) | (150) | ||
Amortization | (224) | (703) | ||
Impact of unrealized investment (gains) losses | (175) | (802) | ||
Ending balance | $ 5,165 | $ 4,960 | 5,165 | $ 4,960 |
Accounting Standards Update 2016-13 [Member] | ||||
DAC | ||||
Deferred Policy Acquisition Costs, Period Increase (Decrease) | 12 | |||
DSI | ||||
Deferred Sales Inducements, Period Increase (Decrease) | 5 | |||
VOBA | ||||
Present Value of Future Insurance Profits, Period Increase (Decrease) | 5 | |||
Total | ||||
Additions | $ 22 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Oct. 08, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Other investments | $ 949 | $ 158 | |
Short-term debt | Federal Home Loan Bank of Des Moines | |||
Debt Instrument [Line Items] | |||
Short-term Debt | 400 | ||
Senior Notes due 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 500 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.15% | ||
Senior Notes due 2031 [Member] | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 500 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) available to Athene Holding Ltd. common shareholders | $ 622 | $ 276 | $ 381 | $ 1,704 |
Common Class A | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) available to Athene Holding Ltd. common shareholders | 622 | 227 | 508 | 1,411 |
Net income available to AHL shareholders – diluted | $ 622 | $ 227 | $ 508 | $ 1,411 |
Basic weighted average shares outstanding (in shares) | 193.1 | 151.6 | 182.8 | 157.2 |
Dilutive effect of stock compensation plans (in shares) | 4 | 0.4 | 3.1 | 0.4 |
Diluted weighted average shares outstanding (in shares) | 197.1 | 152 | 185.9 | 157.6 |
Earnings per share | ||||
Basic (in USD per share) | $ 3.22 | $ 1.50 | $ 2.78 | $ 8.97 |
Diluted (in USD per share) | $ 3.16 | $ 1.50 | $ 2.73 | $ 8.95 |
Common Class B | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) available to Athene Holding Ltd. common shareholders | $ 38 | $ (98) | $ 228 | |
Net income available to AHL shareholders – diluted | $ 38 | $ (98) | $ 228 | |
Basic weighted average shares outstanding (in shares) | 25.4 | 25.4 | 25.4 | |
Dilutive effect of stock compensation plans (in shares) | 0 | 0 | 0 | |
Diluted weighted average shares outstanding (in shares) | 25.4 | 25.4 | 25.4 | |
Earnings per share | ||||
Basic (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Diluted (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Common Class M-1 | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) available to Athene Holding Ltd. common shareholders | $ 5 | $ (13) | $ 30 | |
Net income available to AHL shareholders – diluted | $ 5 | $ (13) | $ 30 | |
Basic weighted average shares outstanding (in shares) | 3.3 | 3.3 | 3.3 | |
Dilutive effect of stock compensation plans (in shares) | 0 | 0 | 0 | |
Diluted weighted average shares outstanding (in shares) | 3.3 | 3.3 | 3.3 | |
Earnings per share | ||||
Basic (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Diluted (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Common Class M-2 | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) available to Athene Holding Ltd. common shareholders | $ 1 | $ (3) | $ 7 | |
Net income available to AHL shareholders – diluted | $ 1 | $ (3) | $ 7 | |
Basic weighted average shares outstanding (in shares) | 0.8 | 0.8 | 0.8 | |
Dilutive effect of stock compensation plans (in shares) | 0 | 0 | 0 | |
Diluted weighted average shares outstanding (in shares) | 0.8 | 0.8 | 0.8 | |
Earnings per share | ||||
Basic (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Diluted (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Common Class M-3 | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) available to Athene Holding Ltd. common shareholders | $ 2 | $ (4) | $ 9 | |
Net income available to AHL shareholders – diluted | $ 2 | $ (4) | $ 9 | |
Basic weighted average shares outstanding (in shares) | 1 | 1 | 1 | |
Dilutive effect of stock compensation plans (in shares) | 0 | 0 | 0 | |
Diluted weighted average shares outstanding (in shares) | 1 | 1 | 1 | |
Earnings per share | ||||
Basic (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Diluted (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Common Class M-4 | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) available to Athene Holding Ltd. common shareholders | $ 3 | $ (9) | $ 19 | |
Net income available to AHL shareholders – diluted | $ 3 | $ (9) | $ 19 | |
Basic weighted average shares outstanding (in shares) | 2.2 | 2.4 | 2.2 | |
Dilutive effect of stock compensation plans (in shares) | 0.3 | 0 | 0.3 | |
Diluted weighted average shares outstanding (in shares) | 2.5 | 2.4 | 2.5 | |
Earnings per share | ||||
Basic (in USD per share) | $ 1.50 | $ (3.87) | $ 8.97 | |
Diluted (in USD per share) | $ 1.29 | $ (3.87) | $ 7.77 |
Earnings Per Share - Shares Exc
Earnings Per Share - Shares Excluded from Dilutive Calculation (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Common Class A | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares (in shares) | 2.8 | 32 | 2.8 | 32 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jan. 01, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | $ 2,184 | $ 1,760 | $ 2,281 | $ (472) | |
Adoption of accounting standards | 2,184 | 2,442 | 2,281 | (472) | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 940 | 863 | 1,078 | 3,667 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 65 | 5 | 219 | 25 | |
Income tax expense (benefit) | 157 | 176 | 165 | 728 | |
Other comprehensive income (loss) attributable to NCI | (14) | (81) | |||
Ending balance | 2,888 | 2,442 | 2,888 | 2,442 | |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | 2,349 | (628) | |||
Adoption of accounting standards | 3,242 | (628) | |||
Ending balance | 3,242 | 3,242 | |||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | 3,444 | 3,102 | |||
Adoption of accounting standards | 3,908 | 3,102 | |||
Other comprehensive income (loss) attributable to NCI | 10 | (82) | |||
Ending balance | 3,908 | 3,908 | |||
AOCI, Gain (Loss), Debt Securities, Available-for-sale, with Allowance for Credit Loss, Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (702) | 0 | |||
Adoption of accounting standards | (101) | (101) | |||
Ending balance | (101) | (101) | |||
DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustments on AFS securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (873) | (661) | (879) | 121 | |
Adoption of accounting standards | (1,098) | (969) | (1,098) | 121 | |
Ending balance | (1,098) | (969) | (1,098) | (969) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | 320 | 77 | 61 | 39 | |
Adoption of accounting standards | 176 | 175 | 61 | 39 | |
Ending balance | 176 | 175 | 176 | 175 | |
AOCI, Accumulated Gain (Loss), Debt Securities, with credit allowance, portion attributable to NCI [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) attributable to NCI | (14) | (4) | |||
Accumulated Foreign Currency Adjustment and Other Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (5) | (5) | (3) | (4) | |
Adoption of accounting standards | 3 | (6) | (3) | (4) | |
Ending balance | 3 | (6) | 3 | (6) | |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 1,132 | 4,889 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 7 | 35 | |||
Income tax expense (benefit) | 232 | 984 | |||
AOCI, Gain (Loss), Debt Securities, Available-for-sale, with Allowance for Credit Loss, Including Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 646 | 1,403 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 85 | 306 | |||
Income tax expense (benefit) | 107 | 213 | |||
AOCI, Gain (Loss), Debt Securities, Available-for-sale, with Allowance for Credit Loss, Including Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 768 | (116) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | |||
Income tax expense (benefit) | 153 | (23) | |||
Deferred Acquisition Costs, Deferred Value of Business Acquired and Future Policy Benefit Adjustment on Available-for-sale Securities Attributable to Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) attributable to NCI | 0 | 0 | |||
Accumulated Net Investment Gain (Loss), Including Deferred Acquisition Costs, Deferred Sales Inducements, Value of Business Acquired, Future Policy Benefits, Including Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (306) | (392) | (358) | (1,391) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (20) | (2) | (87) | (10) | |
Income tax expense (benefit) | (61) | (82) | (58) | (291) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (178) | 124 | 140 | 171 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | 0 | |
Income tax expense (benefit) | (42) | 26 | 33 | 35 | |
Accumulated Foreign Currency Adjustment and Other Including Portion Attributable to Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 10 | (1) | 9 | (2) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | 0 | |
Income tax expense (benefit) | 0 | $ 0 | 0 | $ 0 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) attributable to NCI | (8) | 8 | |||
Accumulated Foreign Currency Adjustment and Other Attributable to Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) attributable to NCI | $ (2) | $ (3) | |||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 [Member] | DAC, DSI, VOBA, future policy benefits and dividends payable to policyholders adjustments on AFS securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of accounting standards | $ (6) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of accounting standards | 0 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 [Member] | Accumulated Foreign Currency Adjustment and Other Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of accounting standards | 0 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 [Member] | Accumulated other comprehensive income (loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of accounting standards | (6) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 [Member] | AOCI, Gain (Loss), Debt Securities, Available-for-sale, with Allowance for Credit Loss, Including Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of accounting standards | 4 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 [Member] | AOCI, Gain (Loss), Debt Securities, Available-for-sale, with Allowance for Credit Loss, Including Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of accounting standards | $ (4) |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ in Millions | Feb. 28, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||||
Common Stock, Voting Rights, Maximum Voting Power for Single Shareholder | 9.90% | ||||
Common Class A | |||||
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 1,567 | ||||
Repurchase Authorization 2018 | Common Class A | |||||
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 640 | $ 150 | |||
Stock Repurchase Program, Additional Authorized Amount | 0 | $ 717 | |||
Stock Repurchased During Period, Value | (416) | (544) | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 224 | $ 323 | |||
Common stock | Common Class M | |||||
Class of Stock [Line Items] | |||||
Common Stock, Conversion Basis, Percentage Of Share Value Converted | 5.00% | ||||
Warrant | Common Class M | |||||
Class of Stock [Line Items] | |||||
Common Stock, Conversion Basis, Percentage Of Share Value Converted | 95.00% |
Equity Preferred Stock (Details
Equity Preferred Stock (Details) - USD ($) | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||||||
Dividends, Preferred Stock, Cash | $ 30,000,000 | $ 17,000,000 | $ 67,000,000 | $ 17,000,000 | ||
Preference Share, Series A | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Shares Issued | 34,500 | 34,500 | 0 | |||
Preferred Stock, Shares Authorized | 34,500 | 34,500 | 0 | |||
Preferred Stock, Dividend Rate, Percentage | 6.35% | |||||
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 | $ 1 | |||
Preferred Stock, Liquidation Preference Per Share | 25,000 | 25,000 | ||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 396.87 | $ 485.07 | $ 1,190.63 | $ 485.07 | ||
Dividends, Preferred Stock, Cash | $ 14,000,000 | $ 17,000,000 | $ 41,000,000 | $ 17,000,000 | ||
Preferred Stock, Shares Outstanding | 34,500 | 34,500 | 0 | |||
Preference Share, Series B | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Shares Issued | 13,800 | 13,800 | 0 | |||
Preferred Stock, Shares Authorized | 13,800 | 13,800 | 0 | |||
Preferred Stock, Dividend Rate, Percentage | 5.625% | |||||
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 | $ 1 | |||
Preferred Stock, Liquidation Preference Per Share | 25,000 | 25,000 | ||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 351.57 | $ 0 | $ 1,054.69 | $ 0 | ||
Dividends, Preferred Stock, Cash | $ 4,000,000 | $ 0 | $ 14,000,000 | $ 0 | ||
Preferred Stock, Shares Outstanding | 13,800 | 13,800 | 0 | |||
Preference Share, Series C | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Shares Issued | 24,000 | 24,000 | ||||
Preferred Stock, Shares Authorized | 24,000 | 24,000 | ||||
Preferred Stock, Dividend Rate, Percentage | 6.375% | |||||
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 | ||||
Preferred Stock, Liquidation Preference Per Share | 25,000 | 25,000 | ||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 482.55 | $ 0 | $ 482.55 | $ 0 | ||
Dividends, Preferred Stock, Cash | $ 12,000,000 | $ 0 | $ 12,000,000 | $ 0 | ||
Preferred Stock, Shares Outstanding | 24,000 | 24,000 |
Equity Common stock (Details)
Equity Common stock (Details) - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Common Class M-1 | ||
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (0.2) | |
Common stock outstanding (in shares) | 0 | 3.3 |
Common Class A | ||
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, New Issues | 35.9 | |
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | 0.1 | |
Stock Issued During Period, Shares, Conversion of Convertible Securities | (25.4) | |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 0.3 | |
Common stock outstanding (in shares) | 191.5 | 143.2 |
Stock Repurchased During Period, Shares | 13.2 | |
Common Class B | ||
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (25.4) | |
Common stock outstanding (in shares) | 0 | 25.4 |
Common Class M-2 | ||
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 0 | |
Common stock outstanding (in shares) | 0 | 0.8 |
Common Class M-3 | ||
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 0 | |
Common stock outstanding (in shares) | 0 | 1 |
Common Class M-4 | ||
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 0.1 | |
Common stock outstanding (in shares) | 0 | 4 |
Stock Repurchased During Period, Shares | 0.3 | |
Warrant | Common Class M-1 | ||
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (3.1) | |
Warrant | Common Class M-2 | ||
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (0.8) | |
Warrant | Common Class M-3 | ||
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (1) | |
Warrant | Common Class M-4 | ||
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (3.6) |
Related Parties Related Parties
Related Parties Related Parties - Summary of Sub-allocation Assets (Details) - Apollo - Related Party - Sub-allocated assets [Member] - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Sub-allocation Assets | $ 168,808 | $ 127,550 |
Percentage of Sub-allocation Assets | 100.00% | 100.00% |
Core Sub-allocation Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Sub-allocation Assets | $ 48,409 | $ 32,474 |
Percentage of Sub-allocation Assets | 28.70% | 25.50% |
Core Plus [Member] | ||
Related Party Transaction [Line Items] | ||
Sub-allocation Assets | $ 39,543 | $ 30,155 |
Percentage of Sub-allocation Assets | 23.40% | 23.60% |
Yield [Member] | ||
Related Party Transaction [Line Items] | ||
Sub-allocation Assets | $ 58,791 | $ 48,557 |
Percentage of Sub-allocation Assets | 34.80% | 38.00% |
High Alpha [Member] | ||
Related Party Transaction [Line Items] | ||
Sub-allocation Assets | $ 6,776 | $ 5,062 |
Percentage of Sub-allocation Assets | 4.00% | 4.00% |
Other Sub-allocation Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Sub-allocation Assets | $ 15,289 | $ 11,302 |
Percentage of Sub-allocation Assets | 9.10% | 8.90% |
Related Parties - Management Fe
Related Parties - Management Fees Incurred (Details) - Related Party - Asset management fees - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Due to related parties | $ 31 | $ 31 | $ 42 | ||
Expenses from transactions with related parties | $ 111 | $ 127 | $ 362 | $ 313 |
Related Parties - Narrative (De
Related Parties - Narrative (Details) - USD ($) $ in Millions | Apr. 01, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Oct. 26, 2020 | Jun. 30, 2020 | Feb. 28, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||||||||||
Available-for-sale securities | $ 73,988 | $ 73,988 | $ 71,374 | |||||||
Other investments | 949 | 949 | 158 | |||||||
Investment funds | 723 | 723 | 750 | |||||||
Payments to Acquire Investment Funds | 970 | $ 765 | ||||||||
Distributions to noncontrolling interests | 46 | |||||||||
Payments to Acquire Interest in Subsidiaries and Affiliates | $ 66 | |||||||||
Interest sensitive contract liabilities | 141,207 | 141,207 | 102,745 | |||||||
Other assets | 1,044 | 1,044 | 1,005 | |||||||
Issuance of common stock | 350 | 0 | ||||||||
Trading securities | 2,069 | 2,069 | 2,070 | |||||||
Investments | 144,933 | 144,933 | 107,987 | |||||||
Payments to Acquire Debt Securities, Available-for-sale | 14,071 | 11,413 | ||||||||
Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Available-for-sale securities | 4,857 | 4,857 | 3,804 | |||||||
Other investments | 467 | 467 | 487 | |||||||
Investment funds | 4,808 | 4,808 | 3,550 | |||||||
Payments to Acquire Investment Funds | 914 | 637 | ||||||||
Interest sensitive contract liabilities | 14,352 | 14,352 | 15,285 | |||||||
Equity securities | 50 | 50 | 64 | |||||||
Trading securities | 1,397 | 1,397 | 785 | |||||||
Payments to Acquire Debt Securities, Available-for-sale | 1,526 | 1,065 | ||||||||
Related Party | Management fees associated with investment funds | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Due to related parties | 31 | 31 | 42 | |||||||
Expenses from transactions with related parties | 111 | $ 127 | 362 | 313 | ||||||
Related Party | MidCap | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Available-for-sale securities | 537 | 537 | 624 | |||||||
MidCap | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Other investments | 322 | 322 | 339 | |||||||
Investments | 931 | $ 931 | 886 | |||||||
Apollo | Related Party | Sub-allocated assets [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Incremental Fee Adjustment | 0.025% | |||||||||
Base Management Fee | 0.225% | |||||||||
Incremental Fee | 0.15% | |||||||||
Cap On Asset Gross Book Yield | 10.00% | |||||||||
Backbook Value | $ 103,400 | |||||||||
Incremental Fee Reduction Adjustment | 0.025% | |||||||||
Incremental Fee Addition Adjustment | 0.025% | |||||||||
AmeriHome | Related Party | Purchase of residential mortgage loans under agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Related party purchases | $ 0 | $ 254 | $ 169 | 254 | ||||||
Venerable | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.257% | 6.257% | ||||||||
Apollo Athene Strategic Partnership Advisors, LLC [Member] | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Strategic Partnership Capacity | $ 2,500 | $ 2,500 | ||||||||
PK AirFinance [Member] | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt Securities | 1,244 | 1,244 | 1,282 | |||||||
Apollo Operating Group [Member] | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment Owned, Balance, Shares | 29,154,519 | |||||||||
Investment Owned, at Fair Value | $ 1,100 | |||||||||
AA Infrastructure [Member] | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Equity securities | 50 | 50 | 58 | |||||||
Trading securities | 293 | 293 | 267 | |||||||
Funding Agreements | Athora Holding Ltd. | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Interest sensitive contract liabilities | 117 | 117 | 146 | |||||||
Investments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment commitment | 5,848 | 5,848 | 4,793 | |||||||
Investments | A-A Mortgage | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment commitment | 125 | 125 | ||||||||
Investments | Athora Holding Ltd. | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment commitment | 370 | 370 | ||||||||
Investments | PK AirFinance [Member] | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment commitment | 215 | 215 | ||||||||
Investments | AA Infrastructure [Member] | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment commitment | 51 | 51 | ||||||||
Redeemable Preferred Stock [Member] | Related Party | MidCap | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Available-for-sale securities | 77 | 77 | 0 | |||||||
Payments to Acquire Debt Securities, Available-for-sale | 67 | |||||||||
Private equity | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment funds | 257 | 257 | 236 | |||||||
Private equity | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment funds | 257 | 257 | 105 | |||||||
Private equity | AmeriHome | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment funds | 666 | 666 | 487 | |||||||
Private equity | Athora Holding Ltd. | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment funds | 572 | 572 | 132 | |||||||
Payments to Acquire Investment Funds | 361 | |||||||||
Private equity | Venerable | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Other investments | 145 | 145 | 148 | |||||||
Investment funds | 108 | 108 | 99 | |||||||
Variable Interest Entities | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment funds | 0 | 0 | 19 | |||||||
Payments to Acquire Investment Funds | 0 | $ 27 | ||||||||
Other assets | 1 | 1 | 20 | |||||||
Trading securities | 0 | 0 | 16 | |||||||
Variable Interest Entities | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment funds | 0 | 0 | 664 | |||||||
Equity securities | 0 | 0 | 6 | |||||||
Variable Interest Entities | Apollo Athene Strategic Partnership Advisors, LLC [Member] | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment funds | 137 | $ 137 | 97 | |||||||
Core Sub-allocation Assets [Member] | Apollo | Related Party | Sub-allocated assets [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Sub-allocation Fee Tier Plus | 60.00% | |||||||||
Sub-allocation Fee | 0.065% | |||||||||
Sub-allocation Fee Tier Minus | 50.00% | |||||||||
Core Plus [Member] | Apollo | Related Party | Sub-allocated assets [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Sub-allocation Fee | 0.13% | |||||||||
Yield [Member] | Apollo | Related Party | Sub-allocated assets [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Sub-allocation Fee | 0.375% | |||||||||
High Alpha [Member] | Apollo | Related Party | Sub-allocated assets [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Sub-allocation Fee | 0.70% | |||||||||
Other Sub-allocation Assets [Member] | Apollo | Related Party | Sub-allocated assets [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Sub-allocation Fee | 0.00% | |||||||||
ABS | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Available-for-sale securities | 4,200 | $ 4,200 | 5,118 | |||||||
ABS | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Available-for-sale securities | 2,729 | 2,729 | 2,849 | |||||||
ABS | Related Party | MidCap | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Trading securities | 532 | 532 | 0 | |||||||
ABS | Related Party | AmeriHome | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Available-for-sale securities | $ 165 | $ 165 | $ 170 | |||||||
Subsequent Event | AmeriHome | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt Securities | $ 195 | |||||||||
Common Class A | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Common stock issued (in shares) | 191,500,000 | 191,500,000 | 143,200,000 | |||||||
Common Class A | Apollo Operating Group [Member] | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Common stock issued (in shares) | 7,575,758 | |||||||||
Issuance of common stock | $ 350 | |||||||||
Exchange of stock [Member] | Common Class A | Apollo Operating Group [Member] | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Common stock issued (in shares) | 27,959,184 | |||||||||
ACRA | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 63.45% | 67.00% | ||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 36.55% | 36.55% | 33.00% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Other Commitments [Line Items] | |||
Letters of Credit Outstanding, Amount | $ 1,413 | ||
Advances from FHLB | 2,101 | $ 1,226 | |
Interest sensitive contract liabilities | 141,207 | 102,745 | |
COLI asset value | 401 | ||
Value of guarantees on COLI | 196 | ||
Litigation Settlement, Expense | $ 45 | ||
Investments | |||
Other Commitments [Line Items] | |||
Investment commitment | 5,848 | 4,793 | |
Funding Agreement Backed Repurchase Agreements [Member] | |||
Other Commitments [Line Items] | |||
Interest sensitive contract liabilities | 1,000 | ||
Athene Global Funding | Senior notes | |||
Other Commitments [Line Items] | |||
Maximum borrowing capacity | 2,392 | ||
Athene Global Funding | Funding Agreements | |||
Other Commitments [Line Items] | |||
Interest sensitive contract liabilities | 6,523 | $ 3,700 | |
Caldera [Member] | Pending Litigation [Member] | |||
Other Commitments [Line Items] | |||
Loss Contingency, Damages Sought, Value | $ 1,500 |
Commitments and Contingencies_2
Commitments and Contingencies - Pledged Assets and Funds in Trust (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
AFS securities | $ 9,928 | $ 9,369 |
Debt Securities, Trading, Restricted | 54 | 45 |
Equity securities | 24 | 22 |
Investment funds | 55 | 84 |
Derivative assets pledged as collateral | 95 | 105 |
Mortgage loans | 4,715 | 2,535 |
Short-term investments | 5 | 92 |
Other investments | 104 | 88 |
Restricted cash | 1,226 | 402 |
Total restricted assets | $ 16,206 | $ 12,742 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Operating Revenues to Consolidation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 3,275 | $ 4,584 | $ 6,124 | $ 13,002 |
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | 1,648 | 620 | 959 | 3,493 |
Investment gains (losses), net of offsets | 1,797 | 665 | 773 | 3,754 |
Operating Segments | Retirement Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,711 | 4,096 | 5,769 | 9,650 |
Operating Segments | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (15) | 28 | 101 | 84 |
Non-operating adjustments | ||||
Segment Reporting Information [Line Items] | ||||
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | 637 | 84 | (280) | 1,490 |
Investment gains (losses), net of offsets | 468 | 373 | 29 | 1,768 |
Variable Interest Entity Expense and Noncontrolling Interest | $ (474) | $ (3) | $ (505) | $ (10) |
Segment Information - Reconci_2
Segment Information - Reconciliation of Segment Operating Income to Consolidation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income tax (expense) benefit – non-operating | $ (140) | $ 14 | $ (124) | $ (48) |
Net income available to Athene Holding Ltd. common shareholders | 622 | 276 | 381 | 1,704 |
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. common shareholders | 361 | 256 | 773 | 918 |
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. common shareholders | (59) | (13) | (89) | (18) |
Non-operating adjustments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Investment gains (losses), net of offsets | 346 | 166 | (18) | 1,041 |
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets | 72 | (117) | (268) | (201) |
Integration, restructuring and other non-operating expenses | 0 | (34) | (13) | (46) |
Stock-based compensation, excluding LTIP | (1) | (3) | (11) | (9) |
Income tax (expense) benefit – non-operating | $ (97) | $ 21 | $ 7 | $ 19 |
Segment Information - Assets by
Segment Information - Assets by Segment (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 191,088 | $ 146,875 |
Retirement Services | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 186,400 | 143,881 |
Corporate and Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 4,688 | $ 2,994 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |