Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-37779 | |
Entity Registrant Name | FGL HOLDINGS | |
Entity Central Index Key | 0001668428 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | E9 | |
Entity Tax Identification Number | 98-1354810 | |
Entity Address, Address Line One | 4th Floor | |
Entity Address, Address Line Two | Boundary Hall, Cricket Square | |
Entity Address, City or Town | Grand Cayman | |
Entity Address, Country | KY | |
Entity Address, Postal Zip Code | KY1-1102 | |
City Area Code | 800 | |
Local Phone Number | 445-6758 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 221,660,974 | |
Ordinary shares, par value $.0001 per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Ordinary shares, par value $.0001 per share | |
Trading Symbol | FG | |
Security Exchange Name | NYSE | |
Warrants to purchase ordinary shares | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Warrants to purchase ordinary shares | |
Trading Symbol | FG WS | |
Security Exchange Name | NYSE |
Investments - Proceeds From The
Investments - Proceeds From The Sale of Fixed-maturity available for-sale-securities - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Document Period End Date | Jun. 30, 2019 | |||
Available-for-sale Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from available-for-sale investments, sold, matured or repaid: | $ 1,817 | $ 4,870 | ||
Available-for-sale Securities | Total fixed maturities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from available-for-sale investments, sold, matured or repaid: | $ 462 | $ 870 | 936 | 3,648 |
Gain on sale of investments | 5 | 0 | 10 | 8 |
Loss on Sale of Investments | $ 5 | $ 22 | $ 15 | $ 65 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: June 30, 2019 - $22,954; December 31, 2018 - $22,219) | $ 23,362 | $ 21,109 |
Equity securities, at fair value (cost: June 30, 2019 - $1,174; December 31, 2018 - $1,526) | 1,144 | 1,382 |
Derivative investments | 383 | 97 |
Mortgage loans | 760 | 667 |
Other invested assets | 1,030 | 662 |
Total investments | 26,679 | 23,917 |
Cash and cash equivalents | 772 | 571 |
Accrued investment income | 232 | 216 |
Funds withheld for reinsurance receivables, at fair value | 1,922 | 757 |
Reinsurance recoverable | 3,264 | 3,190 |
Intangibles, net | 1,421 | 1,359 |
Deferred tax assets, net | 150 | 343 |
Goodwill | 467 | 467 |
Other assets | 191 | 125 |
Total assets | 35,098 | 30,945 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Contractholder funds | 24,828 | 23,387 |
Future policy benefits, including $1,787 and $725 at fair value at June 30, 2019 and December 31, 2018, respectively | 5,641 | 4,641 |
Funds Held under Reinsurance Agreements, Liability | 839 | 722 |
Liability for policy and contract claims | 66 | 64 |
Debt | 542 | 541 |
Other liabilities | 922 | 700 |
Total liabilities | 32,838 | 30,055 |
Commitments and contingencies (Note 12) | ||
Shareholders' equity: | ||
Preferred stock ($.0001 par value, 100,000,000 shares authorized, 414,126 and 399,033 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively) | 0 | 0 |
Common stock ($.0001 par value, 800,000,000 shares authorized, 221,660,974 issued and outstanding at June 30, 2019 and December 31, 2018) | 0 | 0 |
Additional paid-in capital | 2,014 | 1,998 |
Retained earnings (Accumulated deficit) | 30 | (167) |
Accumulated other comprehensive income (loss) | 251 | (937) |
Treasury Stock, Value | 35 | 4 |
Total shareholders' equity | 2,260 | 890 |
Total liabilities and shareholders' equity | $ 35,098 | $ 30,945 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fixed maturity securities, available-for-sale, at fair value (amortized cost) | $ 22,954 | |
Preferred Stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred Stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | |||||
Premiums | $ 8 | $ 15 | $ 24 | $ 33 | |
Net investment income | 315 | 282 | 604 | 545 | |
Net investment gains (losses) | 135 | (2) | 375 | (193) | |
Insurance and investment product fees and other | 37 | 45 | 92 | 93 | |
Total revenues | 495 | 340 | 1,095 | 478 | |
Benefits and expenses: | |||||
Benefits and other changes in policy reserves | 268 | 217 | 607 | 178 | |
Acquisition and operating expenses, net of deferrals | 147 | 46 | 191 | 86 | |
Amortization of intangibles | 13 | 17 | 42 | 44 | |
Total benefits and expenses | 428 | 280 | 840 | 308 | |
Operating income | 67 | 60 | 255 | 170 | |
Interest expense | (8) | (7) | (16) | (13) | |
Income (loss) before income taxes | 59 | 53 | 239 | 157 | |
Income tax expense | (13) | (13) | (22) | (52) | |
Net income (loss) | 46 | 40 | $ 65 | 217 | 105 |
Less Preferred stock dividend | 8 | $ 7 | 7 | 16 | 14 |
Net income (loss) available to common shareholders | $ 38 | $ 33 | $ 201 | $ 91 | |
Net income per common share | |||||
Basic (in USD per share) | $ 0.17 | $ 0.15 | $ 0.92 | $ 0.42 | |
Diluted (in USD per share) | $ 0.17 | $ 0.15 | $ 0.92 | $ 0.42 | |
Weighted average common shares used in computing net income (loss) per common share: | |||||
Basic (in shares) | 217,185,055 | 214,370,000 | 218,482,900 | 214,370,000 | |
Diluted (in shares) | 217,262,215 | 214,379,000 | 218,537,145 | 214,376,439 | |
Cash dividend per common share (in dollars per share) | $ 0.01 | $ 0 | $ 0.02 | $ 0 | |
Total other-than-temporary impairments | $ (3) | $ 0 | $ (5) | $ (2) | |
Portion of other-than-temporary impairments included in other comprehensive income | 0 | 0 | 0 | 0 | |
Net other-than-temporary impairments | (3) | 0 | (5) | (2) | |
Gains (losses) on derivatives and embedded derivatives | 116 | 44 | 280 | (101) | |
Other investment gains (losses) | 22 | (46) | 100 | (90) | |
Net investment gains (losses) | $ 135 | $ (2) | $ 375 | $ (193) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income (loss) | $ 46 | $ 40 | $ 217 | $ 105 |
Unrealized Gain (Loss) on Investments | ||||
Net change in unrealized gains/losses on investments | 472 | (325) | 1,196 | (684) |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | (5) | 0 | (8) | 2 |
Net changes to derive comprehensive income (loss) for the period | 467 | (325) | 1,188 | (682) |
Comprehensive income (loss), net of tax | $ 513 | $ (285) | $ 1,405 | $ (577) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Preferred Stock | Ordinary shares, par value $.0001 per share | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Treasury Stock [Member] | Ordinary shares, par value $.0001 per share | Ordinary shares, par value $.0001 per shareAdditional Paid-in Capital | Ordinary shares, par value $.0001 per shareRetained Earnings (Accumulated Deficit) | Preferred Stock | Preferred StockAdditional Paid-in Capital | Preferred StockRetained Earnings (Accumulated Deficit) |
Beginning Balance at Dec. 31, 2017 | $ 1,963 | $ 0 | $ 0 | $ 2,037 | $ (149) | $ 75 | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Dividends | (5) | 2 | (7) | ||||||||||
Net income (loss) | 65 | 65 | |||||||||||
Unrealized investment losses, net | (359) | (359) | |||||||||||
Ending Balance at Mar. 31, 2018 | 1,666 | 0 | 0 | 2,039 | (95) | (278) | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | 2 | 2 | |||||||||||
Beginning Balance at Dec. 31, 2017 | 1,963 | 0 | 0 | 2,037 | (149) | 75 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 105 | ||||||||||||
Ending Balance at Jun. 30, 2018 | 1,382 | 0 | 0 | 2,047 | (62) | (603) | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | 2 | ||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | (4) | 4 | ||||||||||
Beginning Balance at Mar. 31, 2018 | 1,666 | 0 | 0 | 2,039 | (95) | (278) | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Dividends | 0 | 7 | (7) | ||||||||||
Net income (loss) | 40 | 40 | |||||||||||
Unrealized investment losses, net | (325) | (325) | |||||||||||
Ending Balance at Jun. 30, 2018 | 1,382 | 0 | 0 | 2,047 | (62) | (603) | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | 0 | ||||||||||||
Stock Repurchased During Period, Value | (30) | (30) | |||||||||||
Beginning Balance at Dec. 31, 2018 | 890 | 0 | 0 | 1,998 | (167) | (937) | (4) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Dividends | $ (2) | $ 0 | $ (2) | $ 0 | $ 8 | $ (8) | |||||||
Net income (loss) | 171 | 171 | |||||||||||
Unrealized investment losses, net | 724 | 724 | |||||||||||
Ending Balance at Mar. 31, 2019 | 1,751 | 0 | 0 | 2,007 | (6) | (216) | (34) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | (3) | (3) | |||||||||||
Stock Issued During Period, Value, Stock Dividend | 1 | 1 | |||||||||||
Stock Repurchased During Period, Value | 31 | (1) | |||||||||||
Beginning Balance at Dec. 31, 2018 | 890 | 0 | 0 | 1,998 | (167) | (937) | (4) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 217 | 46 | |||||||||||
Unrealized investment losses, net | 472 | ||||||||||||
Ending Balance at Jun. 30, 2019 | 2,260 | 0 | 0 | 2,014 | 30 | 251 | (35) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | (8) | (5) | |||||||||||
Stock Repurchased During Period, Value | 1 | ||||||||||||
Beginning Balance at Mar. 31, 2019 | 1,751 | 0 | 0 | 2,007 | (6) | (216) | (34) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Dividends | (2) | $ 0 | $ (2) | $ 6 | $ (8) | ||||||||
Net income (loss) | 46 | ||||||||||||
Ending Balance at Jun. 30, 2019 | 2,260 | $ 0 | $ 0 | 2,014 | $ 30 | $ 251 | $ (35) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | (5) | ||||||||||||
Stock Issued During Period, Value, Stock Dividend | $ 1 | $ 1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 217 | $ 105 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Stock based compensation | 3 | 1 |
Amortization | 10 | 23 |
Increase (Decrease) in Deferred Income Taxes | 13 | 15 |
Interest credited/index credits to contractholder account balances | 598 | 153 |
Net recognized losses (gains) on investments and derivatives | (375) | 193 |
Charges assessed to contractholders for mortality and administration | (65) | (56) |
Intangibles, net | (211) | (142) |
Gain (Loss) on Extinguishment of Debt | 0 | 2 |
Changes in operating assets and liabilities: | ||
Reinsurance recoverable | 1 | 1 |
Future policy benefits reflected in net income (loss) | 992 | (41) |
Funds withheld for reinsurers | (989) | (47) |
Collateral (returned) posted | 205 | (133) |
Other assets and other liabilities | (76) | 17 |
Net Cash Provided by (Used in) Operating Activities | 323 | 87 |
Cash flows from investing activities: | ||
Proceeds from mortgage loans | 7 | 22 |
Costs of mortgage loans | 101 | 0 |
Capital expenditures | (1) | (7) |
Contingent purchase price payment | 0 | (57) |
Net cash provided by (used in) investing activities | (884) | (346) |
Cash flows from financing activities: | ||
Treasury stock | 31 | 0 |
Draw on revolving credit facility | 0 | 30 |
Dividends paid | (4) | 0 |
Contractholder account deposits | 2,352 | 2,129 |
Contractholder account withdrawals | (1,555) | (1,504) |
Net cash provided by (used in) financing activities | 762 | 755 |
Change in cash & cash equivalents | 201 | 496 |
Cash & cash equivalents, beginning of period | 571 | 1,215 |
Cash & cash equivalents, end of period | 772 | 1,711 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 15 | 14 |
Income taxes (refunded) paid | (1) | 20 |
Deferred sales inducements | 77 | 60 |
Payments of Debt Issuance Costs | 0 | 7 |
Proceeds from (Repayments of) Debt | 0 | 547 |
Repayments of Long-term Lines of Credit | 0 | |
Available-for-sale Securities | ||
Cash flows from investing activities: | ||
Proceeds from available-for-sale investments, sold, matured or repaid: | 1,817 | 4,870 |
Cost of available-for-sale investments: | (2,196) | (5,183) |
Derivative and other | ||
Cash flows from investing activities: | ||
Proceeds from available-for-sale investments, sold, matured or repaid: | 145 | 282 |
Cost of available-for-sale investments: | $ (555) | $ (273) |
Basis of Presentation and Natur
Basis of Presentation and Nature of Business | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of Business | Basis of Presentation FGL Holdings (the “Company”), a Cayman Islands exempted company, markets products through its wholly-owned insurance subsidiaries, Fidelity & Guaranty Life Insurance Company (“FGL Insurance”) and Fidelity & Guaranty Life Insurance Company of New York (“FGL NY Insurance”), which together are licensed in all fifty states and the District of Columbia. F&G Reinsurance Ltd (“F&G Re”), an exempted company incorporated in Bermuda with limited liability, provides a platform for non-affiliated reinsurance business. Front Street Re Cayman Ltd (“FSRC”), an exempted company incorporated in the Cayman Islands with limited liability, has a license to carry on business as an Unrestricted Class “B” Insurer that permits FSRC to conduct offshore direct and reinsurance business. F&G Re and FSRC (together herein referred to as the “F&G Reinsurance Companies”), are indirect wholly owned subsidiaries of FGL Holdings and parties to reinsurance transactions. The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X, for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. Therefore, the information contained in the Notes to Consolidated Financial Statements included in the Company's 2018 Form 10-K, should be read in connection with the reading of these interim unaudited condensed consolidated financial statements. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three and six months ended June 30, 2019 , are not necessarily indicative of the results that may be expected for the full year ending December 31, 2019 . Amounts reclassified out of other comprehensive income are reflected in net investment gains in the unaudited Condensed Consolidated Statements of Operations. Dollar amounts in the accompanying sections are presented in millions, unless otherwise noted. |
Significant Accounting Policies
Significant Accounting Policies and Practices | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Practices | Adoption of New Accounting Pronouncements Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued new guidance on the amortization of callable securities (ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities) , effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The ASU requires premiums paid on purchased debt securities with an explicit call option to be amortized to the earliest call date, as opposed to the maturity date (as under current GAAP). The updated guidance is applicable to instruments that are callable based on explicit, non-contingent call features that are callable at fixed prices on preset dates. The amendments in this update were to be applied using the modified retrospective method through a cumulative effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted this new accounting guidance effective January 1, 2019, as required, and it had an immaterial impact on its unaudited condensed consolidated financial statements. Amendments to Lease Accounting In February 2016, the FASB issued amended guidance (ASU 2016-02, Leases (Topic 842) ), effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Notable amendments in this update will: • require entities to recognize the rights and obligations resulting from all leases or lease components of contracts, including operating leases, as lease assets and lease liabilities, with an exception allowed for leases with a term of 12 months or less • create a distinction between finance leases and operating leases, with classification criteria substantially similar to that for distinguishing between capital leases and operating leases under previous guidance • not retain the accounting model for leveraged leases under previous guidance for leases that commence after the effective date of ASU 2016-02 • provide additional guidance on separating the lease components from the nonlease components of a contract • require qualitative disclosures along with specific quantitative disclosures to provide information regarding the amount, timing, and uncertainty of cash flows arising from leases • include modifications to align lessor accounting with the changes to lessee accounting, as well as changes to the requirements of recognizing a transaction as a sale and leaseback transaction, however, these changes will have no impact on the Company's current lease arrangements The amendments were required to be applied at the beginning of the earliest period presented using a modified retrospective approach (including several optional practical expedients related to leases commenced before the effective date). The Company adopted this standard effective January 1, 2019, as required, and it had an immaterial impact on its unaudited condensed consolidated financial statements. Future Accounting Pronouncements Accounting pronouncements that will impact the Company in future periods have been disclosed in the Company’s 2018 Form 10-K. There have not been any additional accounting pronouncements issued during the quarter ended June 30, 2019 that are expected to impact the Company. The following two pronouncements were discussed in the Company's 2018 Form 10-K but have been included below so as to provide an update on the Company’s status of adoption. New Credit Loss Standard In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments , effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Since its release, certain targeted improvements and transition relief amendments have been made to ASU 2016-13 and have been published in ASU 2018-19, ASU 2019-04 and ASU 2019-05. Collectively, these ASUs will change the accounting for impairment of most financial assets and certain other instruments in the following ways: • financial assets (or a group of financial assets) measured at amortized cost will be required to be presented at the net amount expected to be collected, with an allowance for credit losses deducted from the amortized cost basis, resulting in a net carrying value that reflects the amount the entity expects to collect on the financial asset • credit losses relating to AFS fixed maturity securities will be recorded through an allowance for credit losses, rather than reductions in the amortized cost of the securities. The allowance methodology recognizes that value may be realized either through collection of contractual cash flows or through the sale of the security. Therefore, the amount of the allowance for credit losses will be limited to the amount by which fair value is below amortized cost because the classification as available for sale is premised on an investment strategy that recognizes that the investment could be sold at fair value, if cash collection would result in the realization of an amount less than fair value • the income statement will reflect the measurement of expected credit losses for newly recognized financial assets as well as the expected increases or decreases (including the reversal of previously recognized losses) of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount • disclosures will be required to include information around how the credit loss allowance was developed, further details on information currently disclosed about credit quality of financing receivables and net investments in leases, and a rollforward of the allowance for credit losses for AFS fixed maturity securities as well as an aging analysis for securities that are past due The amendments in this ASU may be early adopted during any interim or annual period beginning after December 15, 2018, however the Company has elected not to. The Company continues to evaluate the impact of the new guidance on its consolidated financial statements. The Company has identified the material asset classes (i.e., available for sale securities, mortgage loans, reinsurance receivables, other miscellaneous receivables) impacted by the new guidance and is in the process of assessing the accounting, reporting and/or process changes that will be required to comply with the new guidance. The Company continues to progress in its project plan to adopt this standard and expects to finalize related accounting policies and procedures as well as select a vendor to assist in the estimation of credit losses for its commercial and residential mortgage loan portfolio in the coming quarter. Long-Duration Contracts In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts , effective for fiscal years beginning after December 15, 2020 including interim periods within those fiscal years. Under this update: • assumptions used to measure cash flows for traditional and limited-payment contracts must be reviewed at least annually with the effect of changes in those assumptions being recognized in the statement of operations • the discount rate applied to measure the liability for future policy benefits and limited-payment contracts must be updated at each reporting date with the effect of changes in the rate being recognized in other comprehensive income • market risk benefits associated with deposit contracts must be measured at fair value, with the effect of the change in the fair value attributable to a change in the instrument-specific credit risk being recognized in other comprehensive income • deferred acquisition costs are required to be amortized in proportion to premiums, gross profits, or gross margins and those balances must be amortized on a constant level basis over the expected term of the related contracts • deferred acquisition costs must be written off for unexpected contract terminations • disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions, and methods used in measurement are required to be disclosed The amendments in this ASU may be early adopted as of the beginning of an annual reporting period for which financial statements have not yet been issued, including interim financial statements. The Company does not currently expect to early adopt this standard. The Company has identified specific areas that will be impacted by the new guidance and is in the process of assessing the accounting, reporting and/or process changes that will be required to comply as well as the impact of the new guidance on its consolidated financial statements. |
Significant Risks and Uncertain
Significant Risks and Uncertainties | 6 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Significant Risks and Uncertainties | Significant Risks and Uncertainties Federal Regulation In April 2016, the Department of Labor (“DOL”) issued the “fiduciary” rule which could have had a material impact on the Company, its products, distribution, and business model. The rule had provided that persons who render investment advice for a fee or other compensation with respect to an employer plan or individual retirement account (“IRA”) would be fiduciaries of that plan or IRA and would have expanded the definition of fiduciary under ERISA to apply to commissioned insurance agents who sell the Company’s IRA products. On June 21, 2018, the United States Court of Appeals for the Fifth Circuit formally vacated the DOL fiduciary rule when it issued its mandate following the court’s decision on March 15, 2018, in U.S. Chamber of Commerce v. U.S. Department of Labor, 885 F.3d 360 (5th Cir.2018). Since then, the SEC adopted Regulation Best Interest in June 2019 imposing ostensibly higher sales practice standards on securities brokers. This does not directly impact the Company or its distributors, but has given impetus for the National Association of Insurance Commissioners (NAIC) to consider its own best interest proposals. Management will continue to monitor for potential action by state officials or federal agencies to implement sales practice rules affecting insurance agents selling fixed insurance or annuity products. Use of Estimates and Assumptions The preparation of the Company's unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions used. Concentrations of Financial Instruments As of June 30, 2019 and December 31, 2018 , the Company’s most significant investment in one industry, excluding United States ("U.S.") Government securities, was its investment securities in the Banking industry with a fair value of $2,556 or 10% and $2,491 or 10% , respectively, of the invested assets portfolio and an amortized cost of $2,536 and $2,691 , respectively. As of June 30, 2019 , the Company’s holdings in this industry include investments in 108 different issuers with the top ten investments accounting for 35% of the total holdings in this industry. As of June 30, 2019 the Company had no investments in issuers that exceeded 10% of shareholders' equity. As of December 31, 2018 , the Company had 16 investments in issuers that exceeded 10% of shareholders' equity, with a total fair value of $1,634 or 7% of the invested assets portfolio: JP Morgan Chase & Co, Metropolitan Transportation Authority (NY), AT&T Inc, HSBC Holdings, Wells Fargo & Company, General Motors Co, Nationwide Mutual Insurance Company, Goldman Sachs Group Inc, United Mexican States, Energy Transfer Partners, Prudential Financial Inc, Citigroup Inc, HP Enterprise Co, Viacom Inc, Kinder Morgan Energy Partners, and Fuel Trust. The Company's largest concentration in any single issuer as of June 30, 2019 and December 31, 2018 was AT&T with a total fair value of $150 or 1% , and JP Morgan Chase & Co , with a total fair value of $115 or 1% of the invested assets portfolio, respectively. Concentrations of Financial and Capital Markets Risk The Company is exposed to financial and capital markets risk, including changes in interest rates and credit spreads which can have an adverse effect on the Company’s results of operations, financial condition and liquidity. The Company’s exposure to such financial and capital markets risk relates primarily to the market price and cash flow variability associated with changes in interest rates. A rise in interest rates, in the absence of other countervailing changes, will increase the net unrealized loss position of the Company’s investment portfolio and, if long-term interest rates rise dramatically within a six to twelve month time period, certain of the Company’s products may be exposed to disintermediation risk. Disintermediation risk refers to the risk that policyholders surrender their contracts in a rising interest rate environment, requiring the Company to liquidate assets in an unrealized loss position. The Company attempts to mitigate the risk, including changes in interest rates by investing in less rate-sensitive investments, including senior tranches of collateralized loan obligations, non-agency residential mortgage-backed securities, and various types of asset backed securities. Management believes this risk is also mitigated to some extent by surrender charge protection provided by the Company’s products. The Company expects to continue to face these challenges and uncertainties that could adversely affect its results of operations and financial condition. Concentration of Reinsurance Risk The Company has a significant concentration of reinsurance risk with third party reinsurers, Wilton Reassurance Company (“Wilton Re”) and Kubera Insurance (SAC) Ltd. ("Kubera") that could have a material impact on the Company’s financial position in the event that Wilton Re or Kubera fail to perform their obligations under the various reinsurance treaties. Wilton Re is a wholly-owned subsidiary of Canada Pension Plan Investment Board ("CPPIB"). CPPIB has an AAA issuer credit rating from Standard & Poor's Ratings Services ("S&P") as of June 30, 2019 . Kubera is not rated, however, management has attempted to mitigate the risk of non-performance through the funds withheld arrangement. As of June 30, 2019 , the net amount recoverable from Wilton Re was $1,531 and the net amount recoverable from Kubera was $857 . The Company monitors both the financial condition of individual reinsurers and risk concentration arising from similar activities and economic characteristics of reinsurers to attempt to reduce the risk of default by such reinsurers. Wilton Re and Kubera are current on all amounts due as of June 30, 2019 . On March 6, 2019, Scottish Re (U.S.), Inc. (“SRUS”), a Delaware domestic life and health reinsurer of FGL Insurance, was ordered into receivership for purposes rehabilitation. As of June 30, 2019 , the net amount recoverable from SRUS was $46 . The financial exposure related to these ceded reserves are substantially mitigated via a reinsurance agreement whereby Wilton Re assumes treaty non-performance including credit risk for this business. On July 9, 2019, Pavonia Life Insurance Company of Michigan (Pavonia), a Michigan domiciled life, accident, and health insurance company, was placed into rehabilitation. While the court order indicated that Pavonia had a stable financial condition and lack of non-insurance affiliated investments, the Director of the Michigan Department of Insurance and Financial Services has concerns about potential financial risks to Pavonia. At June 30, 2019, the net amount recoverable from Pavonia was $85 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 1.25 1.00 - 1.25 June 30, 2019 LTV Ratios: Less than 50% $ 304 $ 6 $ 310 65 % $ 319 65 % 50% to 60% 155 — 155 33 % 160 33 % 60% to 75% 11 — 11 2 % 11 2 % Commercial mortgage loans $ 470 $ 6 $ 476 100 % $ 490 100 % December 31, 2018 LTV Ratios: Less than 50% $ 296 $ 6 $ 302 63 % $ 302 63 % 50% to 60% 169 — 169 35 % 170 35 % 60% to 75% 11 — 11 2 % 11 2 % Commercial mortgage loans $ 476 $ 6 $ 482 100 % $ 483 100 % The Company establishes a general mortgage loan allowance based upon the underlying risk and quality of the mortgage loan portfolio using DSC ratio and LTV ratio. The Company believes that the LTV ratio is an indicator of the principal recovery risk for loans that default. A higher LTV ratio will result in a higher allowance. The Company believes that the DSC ratio is an indicator of default risk on loans. A higher DSC ratio will result in a lower allowance. The Company recognizes a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At June 30, 2019 and December 31, 2018 , the Company had no CMLs that were delinquent in principal or interest payments. Mortgage loan workouts, refinances or restructures that are classified as troubled debt restructurings ("TDRs") are individually evaluated and measured for impairment. As of June 30, 2019 and December 31, 2018 , our CML portfolio had no impairments, modifications or TDRs. Residential Mortgage Loans Residential mortgage loans ("RMLs") represented approximately 1% of the Company’s total investments as of June 30, 2019 and December 31, 2018 . The Company's residential mortgage loans are closed end, amortizing loans. 100% of the properties are located in the United States. The Company diversifies its RML portfolio by state to attempt to reduce concentration risk. The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables: June 30, 2019 US State: Unpaid Principal Balance % of Total Florida $ 39 14 % California 37 13 % Illinois 29 11 % All Other States (a) 172 62 % Total mortgage loans $ 277 100 % (a) The individual concentration of each state is less than 9% as of June 30, 2019 . December 31, 2018 US State: Unpaid Principal Balance % of Total Florida $ 25 14 % Illinois 24 13 % New Jersey 17 9 % All Other States (a) 114 64 % Total mortgage loans $ 180 100 % (a) The individual concentration of each state is less than 9% as of December 31, 2018 . Residential mortgage loans have a primary credit quality indicator of either a performing or nonperforming loan. The Company defines non-performing residential mortgage loans as those that are 90 or more days past due and/or in nonaccrual status which is assessed monthly. The credit quality of RMLs as at June 30, 2019 and December 31, 2018 , respectively, was as follows: June 30, 2019 December 31, 2018 Performance indicators: Carrying Value % of Total Carrying Value % of Total Performing $ 284 100 % $ 185 100 % Non-performing — — % — — % Total residential mortgage loans, gross of valuation allowance $ 284 100 % $ 185 100 % Allowance for loan loss — — % — — % Total residential mortgage loans $ 284 100 % $ 185 100 % Net Investment Income The major sources of “Net investment income” on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Fixed maturity securities, available-for-sale $ 267 $ 248 $ 532 $ 490 Equity securities 19 26 40 36 Mortgage loans 8 5 15 12 Invested cash and short-term investments 7 4 10 8 Funds withheld 17 7 25 14 Limited partnerships 21 6 29 9 Other investments 2 2 7 3 Gross investment income 341 298 658 571 Investment expense (26 ) (16 ) (54 ) (26 ) Net investment income $ 315 $ 282 $ 604 $ 545 Net Investment Gains (Losses) Details underlying “Net investment gains (losses)” reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net realized gains (losses) on fixed maturity available-for-sale securities $ (5 ) $ (23 ) $ (8 ) $ (60 ) Net realized/unrealized gains (losses) on equity securities 22 (23 ) 100 (29 ) Realized gains (losses) on other invested assets 2 — 3 (3 ) Derivatives and embedded derivatives: Realized gains (losses) on certain derivative instruments (3 ) (15 ) (29 ) (4 ) Unrealized gains (losses) on certain derivative instruments 73 72 263 (63 ) Change in fair value of reinsurance related embedded derivatives (a) 45 (13 ) 42 (34 ) Change in fair value of other derivatives and embedded derivatives 1 — 4 — Realized gains (losses) on derivatives and embedded derivatives 116 44 280 (101 ) Net investment gains (losses) $ 135 $ (2 ) $ 375 $ (193 ) (a) Change in fair value of reinsurance related embedded derivatives is due to F&G Re and FSRC unaffiliated third party business. The proceeds from the sale of fixed-maturity available for-sale-securities and the gross gains and losses associated with those transactions were as follows: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Proceeds $ 462 $ 870 $ 936 $ 3,648 Gross gains 5 — 10 8 Gross losses (5 ) (22 ) (15 ) (65 ) Unconsolidated Variable Interest Entities FGL Insurance owns investments in VIEs that are not consolidated within the Company’s financial statements. VIEs do not have sufficient equity to finance their own activities without additional financial support and certain of its investors lack certain characteristics of a controlling financial interest. These VIEs are not consolidated in the Company’s financial statements for the following reasons: 1) FGL Insurance either does not control or does not have any voting rights or notice rights; 2) the Company does not have any substantive rights to remove the investment manager; and 3) the Company was not involved in the design of the investment. These characteristics indicate that FGL Insurance lacks the ability to direct the activities, or otherwise exert control, of the VIEs and is not considered the primary beneficiary of them. The Company previously executed a commitment of $75 to purchase common shares in an unaffiliated private business development company ("BDC"). The BDC invests in secured and unsecured fixed maturity and equity securities of middle market companies in the United States. Due to the voting structure of the transaction, the Company does not have voting power. The initial capital call occurred June 30, 2015, with the remaining commitment expected to fund June 2020. The Company has funded $57 as of June 30, 2019 . The Company invests in various limited partnerships as a passive investor. These investments are in credit funds with a current income bias, real assets, or private equity. Limited partnership interests are accounted for under the equity method and are included in “Other invested assets” on the Company’s consolidated balance sheet. The Company's maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in the Company's consolidated balance sheet in addition to any required unfunded commitments. As of June 30, 2019 , the Company's maximum exposure to loss was $875 in recorded carrying value and $1,066" id="sjs-B4">Investments The Company’s fixed maturity securities investments have been designated as available-for-sale and are carried at fair value with unrealized gains and losses included in AOCI, net of associated adjustments for deferred acquisition costs ("DAC"), value of business acquired ("VOBA"), deferred sales inducements ("DSI"), unearned revenue ("UREV"), and deferred income taxes. The Company's equity securities investments are carried at fair value with unrealized gains and losses included in net income. The Company’s consolidated investments at June 30, 2019 and December 31, 2018 are summarized as follows: June 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 5,519 $ 52 $ (64 ) $ 5,507 $ 5,507 Commercial mortgage-backed securities 2,744 133 (3 ) 2,874 2,874 Corporates 11,235 315 (128 ) 11,422 11,422 Hybrids 1,023 20 (12 ) 1,031 1,031 Municipals 1,251 51 (4 ) 1,298 1,298 Residential mortgage-backed securities 1,001 43 (3 ) 1,041 1,041 U.S. Government 41 — — 41 41 Foreign Governments 140 8 — 148 148 Total available-for-sale securities 22,954 622 (214 ) 23,362 23,362 Equity securities 1,174 6 (36 ) 1,144 1,144 Derivative investments 324 117 (58 ) 383 383 Commercial mortgage loans 476 — — 490 476 Residential mortgage loans 284 — — 289 284 Other invested assets 1,032 — (2 ) 1,020 1,030 Total investments $ 26,244 $ 745 $ (310 ) $ 26,688 $ 26,679 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 4,954 $ 15 $ (137 ) $ 4,832 $ 4,832 Commercial mortgage-backed securities 2,568 9 (40 ) 2,537 2,537 Corporates 11,213 16 (848 ) 10,381 10,381 Hybrids 992 — (91 ) 901 901 Municipals 1,216 3 (32 ) 1,187 1,187 Residential mortgage-backed securities 1,027 12 (8 ) 1,031 1,031 U.S. Government 120 — (1 ) 119 119 Foreign Governments 129 — (8 ) 121 121 Total available-for-sale securities 22,219 55 (1,165 ) 21,109 21,109 Equity securities 1,526 1 (145 ) 1,382 1,382 Derivative investments 330 2 (235 ) 97 97 Commercial mortgage loans 482 — — 483 482 Residential mortgage loans 185 — — 187 185 Other invested assets 662 — — 651 662 Total investments $ 25,404 $ 58 $ (1,545 ) $ 23,909 $ 23,917 Included in AOCI were cumulative gross unrealized gains of $0 and gross unrealized losses of $0 related to the non-credit portion of other-than-temporary-impairments ("OTTI") on non-agency residential mortgage backed securities ("RMBS") for both June 30, 2019 and December 31, 2018 . Securities held on deposit with various state regulatory authorities had a fair value of $16,595 and $19,930 at June 30, 2019 and December 31, 2018 , respectively. Under Iowa regulations, insurance companies are required to hold securities on deposit in an amount no less than the legal reserve. At June 30, 2019 and December 31, 2018 , the Company held no material investments that were non-income producing for a period greater than twelve months. In accordance with the Company's FHLB agreements, the investments supporting the funding agreement liabilities are pledged as collateral to secure the FHLB funding agreement liabilities and are not available to the Company for general purposes. The collateral investments had a fair value of $1,259 and $1,401 at June 30, 2019 and December 31, 2018 , respectively. The amortized cost and fair value of fixed maturity available-for-sale securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. June 30, 2019 Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and Government securities: Due in one year or less $ 160 $ 160 Due after one year through five years 752 753 Due after five years through ten years 1,989 2,016 Due after ten years 10,789 11,011 Subtotal 13,690 13,940 Other securities which provide for periodic payments: Asset-backed securities 5,519 5,507 Commercial mortgage-backed securities 2,744 2,874 Residential mortgage-backed securities 1,001 1,041 Subtotal 9,264 9,422 Total fixed maturity available-for-sale securities $ 22,954 $ 23,362 The Company's available-for-sale securities with unrealized losses are reviewed for potential OTTI. For factors considered in evaluating whether a decline in value is other-than-temporary, please refer to “Note 2. Significant Accounting Policies and Practices" to the Company’s 2018 Form 10-K. The Company analyzes its ability to recover the amortized cost by comparing the net present value of cash flows expected to be collected with the amortized cost of the security. Additionally, the Company considers other factors, including, but not limited to: whether the issuer is currently meeting its financial obligations and its ability to continue to meet these obligations, its existing cash available, and its access to additional available capital. For mortgage-backed and asset-backed securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions, based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. For structured securities, the payment priority within the tranche structure is also considered. For all other fixed maturity securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. If the net present value is less than the amortized cost of the investment, an OTTI is recognized. Based on the results of our process for evaluating available-for-sale securities in unrealized loss positions for OTTI, as discussed above, the Company determined the unrealized losses as of June 30, 2019 decreased due to lower interest rates during the quarter in conjunction with tighter credit spreads over Treasuries. The fair value and gross unrealized losses of available-for-sale securities, aggregated by investment category and duration of fair value below amortized cost, were as follows: June 30, 2019 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale securities Asset-backed securities $ 2,293 $ (45 ) $ 809 $ (19 ) $ 3,102 $ (64 ) Commercial mortgage-backed securities 137 (2 ) 33 (1 ) 170 (3 ) Corporates 203 (7 ) 2,714 (121 ) 2,917 (128 ) Hybrids 104 (6 ) 193 (6 ) 297 (12 ) Municipals 22 — 125 (4 ) 147 (4 ) Residential mortgage-backed securities 41 (1 ) 136 (2 ) 177 (3 ) U.S. Government — — 11 — 11 — Foreign Government — — 17 — 17 — Total available-for-sale securities $ 2,800 $ (61 ) $ 4,038 $ (153 ) $ 6,838 $ (214 ) Total number of available-for-sale securities in an unrealized loss position less than twelve months 356 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 533 Total number of available-for-sale securities in an unrealized loss position 889 December 31, 2018 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale securities Asset-backed securities $ 2,924 $ (116 ) $ 643 $ (21 ) $ 3,567 $ (137 ) Commercial mortgage-backed securities 1,466 (34 ) 262 (6 ) 1,728 (40 ) Corporates 8,016 (772 ) 1,465 (76 ) 9,481 (848 ) Hybrids 858 (90 ) 7 (1 ) 865 (91 ) Municipals 850 (27 ) 172 (5 ) 1,022 (32 ) Residential mortgage-backed securities 139 (3 ) 190 (5 ) 329 (8 ) U.S. Government 69 — 50 (1 ) 119 (1 ) Foreign Government 47 (3 ) 68 (5 ) 115 (8 ) Total available-for-sale securities $ 14,369 $ (1,045 ) $ 2,857 $ (120 ) $ 17,226 $ (1,165 ) Total number of available-for-sale securities in an unrealized loss position less than twelve months 1,551 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 556 Total number of available-for-sale securities in an unrealized loss position 2,107 At June 30, 2019 and December 31, 2018 , securities in an unrealized loss position were primarily concentrated in corporate debt. At June 30, 2019 and December 31, 2018 , securities with a fair value of $41 and $132 , respectively, had an unrealized loss greater than 20% of amortized cost (excluding U.S. Government and U.S. Government sponsored agency securities), which were insignificant to the carrying value of all investments, respectively. The following table provides a reconciliation of the beginning and ending balances of the credit loss portion of OTTI on fixed maturity available-for-sale securities held by the Company for the three and six months ended June 30, 2019 and 2018 , for which a portion of the OTTI was recognized in AOCI: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Beginning balance $ — $ — $ — $ — Increases attributable to credit losses on securities: OTTI was previously recognized — — — — OTTI was not previously recognized — — — — Ending balance $ — $ — $ — $ — The following table breaks out the credit impairment loss type, the associated amortized cost and fair value of the investments at the balance sheet date and non-credit losses in relation to fixed maturity securities and other invested assets held by the Company for the three and six months ended June 30, 2019 and 2018 : Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Credit impairment losses in operations $ (3 ) $ — $ (5 ) $ (2 ) Change-of-intent losses in operations — — — — Amortized cost 5 — 6 — Fair value 5 — 6 — Non-credit losses in other comprehensive income for investments which experienced OTTI — — — — Details of OTTI that were recognized in "Net income (loss)" and included in net realized gains on securities were as follows: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Corporates (3 ) — (5 ) (2 ) Total $ (3 ) $ — $ (5 ) $ (2 ) Mortgage Loans The Company's mortgage loans are collateralized by commercial and residential properties. Commercial Mortgage Loans Commercial mortgage loans ("CMLs") represented approximately 2% of the Company’s total investments as of June 30, 2019 and December 31, 2018 . The Company primarily invests in mortgage loans on income producing properties including hotels, industrial properties, retail buildings, multifamily properties and office buildings. The Company diversifies its CML portfolio by geographic region and property type to attempt to reduce concentration risk. The Company continuously evaluates CMLs based on relevant current information to ensure properties are performing at a consistent and acceptable level to secure the related debt. The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables: June 30, 2019 December 31, 2018 Gross Carrying Value % of Total Gross Carrying Value % of Total Property Type: Hotel 21 4 % 21 4 % Industrial - General 37 8 % 37 8 % Industrial - Warehouse 20 4 % 20 4 % Multifamily 55 11 % 56 12 % Office 145 31 % 147 30 % Retail 198 42 % 201 42 % Total commercial mortgage loans, gross of valuation allowance $ 476 100 % $ 482 100 % Allowance for loan loss — — Total commercial mortgage loans $ 476 $ 482 U.S. Region: East North Central $ 97 20 % $ 98 20 % East South Central 19 4 % 19 4 % Middle Atlantic 78 16 % 79 17 % Mountain 64 14 % 65 13 % New England 10 2 % 10 2 % Pacific 114 24 % 116 24 % South Atlantic 56 12 % 57 12 % West North Central 13 3 % 13 3 % West South Central 25 5 % 25 5 % Total commercial mortgage loans, gross of valuation allowance $ 476 100 % $ 482 100 % Allowance for loan loss — — Total commercial mortgage loans $ 476 $ 482 All of the Company's investments in CMLs had a loan-to-value ("LTV") ratio of less than 75% at June 30, 2019 and December 31, 2018 , as measured at inception of the loans unless otherwise updated. As of June 30, 2019 , all CMLs are current and have not experienced credit or other events which would require the recording of an impairment loss. LTV and DSC ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.00 indicates that a property’s operations do not generate sufficient income to cover debt payments. We normalize our DSC ratios to a 25-year amortization period for purposes of our general loan allowance evaluation. The following table presents the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios at June 30, 2019 and December 31, 2018 : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 June 30, 2019 LTV Ratios: Less than 50% $ 304 $ 6 $ 310 65 % $ 319 65 % 50% to 60% 155 — 155 33 % 160 33 % 60% to 75% 11 — 11 2 % 11 2 % Commercial mortgage loans $ 470 $ 6 $ 476 100 % $ 490 100 % December 31, 2018 LTV Ratios: Less than 50% $ 296 $ 6 $ 302 63 % $ 302 63 % 50% to 60% 169 — 169 35 % 170 35 % 60% to 75% 11 — 11 2 % 11 2 % Commercial mortgage loans $ 476 $ 6 $ 482 100 % $ 483 100 % The Company establishes a general mortgage loan allowance based upon the underlying risk and quality of the mortgage loan portfolio using DSC ratio and LTV ratio. The Company believes that the LTV ratio is an indicator of the principal recovery risk for loans that default. A higher LTV ratio will result in a higher allowance. The Company believes that the DSC ratio is an indicator of default risk on loans. A higher DSC ratio will result in a lower allowance. The Company recognizes a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At June 30, 2019 and December 31, 2018 , the Company had no CMLs that were delinquent in principal or interest payments. Mortgage loan workouts, refinances or restructures that are classified as troubled debt restructurings ("TDRs") are individually evaluated and measured for impairment. As of June 30, 2019 and December 31, 2018 , our CML portfolio had no impairments, modifications or TDRs. Residential Mortgage Loans Residential mortgage loans ("RMLs") represented approximately 1% of the Company’s total investments as of June 30, 2019 and December 31, 2018 . The Company's residential mortgage loans are closed end, amortizing loans. 100% of the properties are located in the United States. The Company diversifies its RML portfolio by state to attempt to reduce concentration risk. The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables: June 30, 2019 US State: Unpaid Principal Balance % of Total Florida $ 39 14 % California 37 13 % Illinois 29 11 % All Other States (a) 172 62 % Total mortgage loans $ 277 100 % (a) The individual concentration of each state is less than 9% as of June 30, 2019 . December 31, 2018 US State: Unpaid Principal Balance % of Total Florida $ 25 14 % Illinois 24 13 % New Jersey 17 9 % All Other States (a) 114 64 % Total mortgage loans $ 180 100 % (a) The individual concentration of each state is less than 9% as of December 31, 2018 . Residential mortgage loans have a primary credit quality indicator of either a performing or nonperforming loan. The Company defines non-performing residential mortgage loans as those that are 90 or more days past due and/or in nonaccrual status which is assessed monthly. The credit quality of RMLs as at June 30, 2019 and December 31, 2018 , respectively, was as follows: June 30, 2019 December 31, 2018 Performance indicators: Carrying Value % of Total Carrying Value % of Total Performing $ 284 100 % $ 185 100 % Non-performing — — % — — % Total residential mortgage loans, gross of valuation allowance $ 284 100 % $ 185 100 % Allowance for loan loss — — % — — % Total residential mortgage loans $ 284 100 % $ 185 100 % Net Investment Income The major sources of “Net investment income” on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Fixed maturity securities, available-for-sale $ 267 $ 248 $ 532 $ 490 Equity securities 19 26 40 36 Mortgage loans 8 5 15 12 Invested cash and short-term investments 7 4 10 8 Funds withheld 17 7 25 14 Limited partnerships 21 6 29 9 Other investments 2 2 7 3 Gross investment income 341 298 658 571 Investment expense (26 ) (16 ) (54 ) (26 ) Net investment income $ 315 $ 282 $ 604 $ 545 Net Investment Gains (Losses) Details underlying “Net investment gains (losses)” reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net realized gains (losses) on fixed maturity available-for-sale securities $ (5 ) $ (23 ) $ (8 ) $ (60 ) Net realized/unrealized gains (losses) on equity securities 22 (23 ) 100 (29 ) Realized gains (losses) on other invested assets 2 — 3 (3 ) Derivatives and embedded derivatives: Realized gains (losses) on certain derivative instruments (3 ) (15 ) (29 ) (4 ) Unrealized gains (losses) on certain derivative instruments 73 72 263 (63 ) Change in fair value of reinsurance related embedded derivatives (a) 45 (13 ) 42 (34 ) Change in fair value of other derivatives and embedded derivatives 1 — 4 — Realized gains (losses) on derivatives and embedded derivatives 116 44 280 (101 ) Net investment gains (losses) $ 135 $ (2 ) $ 375 $ (193 ) (a) Change in fair value of reinsurance related embedded derivatives is due to F&G Re and FSRC unaffiliated third party business. The proceeds from the sale of fixed-maturity available for-sale-securities and the gross gains and losses associated with those transactions were as follows: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Proceeds $ 462 $ 870 $ 936 $ 3,648 Gross gains 5 — 10 8 Gross losses (5 ) (22 ) (15 ) (65 ) Unconsolidated Variable Interest Entities FGL Insurance owns investments in VIEs that are not consolidated within the Company’s financial statements. VIEs do not have sufficient equity to finance their own activities without additional financial support and certain of its investors lack certain characteristics of a controlling financial interest. These VIEs are not consolidated in the Company’s financial statements for the following reasons: 1) FGL Insurance either does not control or does not have any voting rights or notice rights; 2) the Company does not have any substantive rights to remove the investment manager; and 3) the Company was not involved in the design of the investment. These characteristics indicate that FGL Insurance lacks the ability to direct the activities, or otherwise exert control, of the VIEs and is not considered the primary beneficiary of them. The Company previously executed a commitment of $75 to purchase common shares in an unaffiliated private business development company ("BDC"). The BDC invests in secured and unsecured fixed maturity and equity securities of middle market companies in the United States. Due to the voting structure of the transaction, the Company does not have voting power. The initial capital call occurred June 30, 2015, with the remaining commitment expected to fund June 2020. The Company has funded $57 as of June 30, 2019 . The Company invests in various limited partnerships as a passive investor. These investments are in credit funds with a current income bias, real assets, or private equity. Limited partnership interests are accounted for under the equity method and are included in “Other invested assets” on the Company’s consolidated balance sheet. The Company's maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in the Company's consolidated balance sheet in addition to any required unfunded commitments. As of June 30, 2019 , the Company's maximum exposure to loss was $875 in recorded carrying value and $1,066 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The carrying amounts of derivative instruments, including derivative instruments embedded in FIA contracts, is as follows: June 30, 2019 December 31, 2018 Assets: Derivative investments: Call options $ 383 $ 97 Futures contracts — — Other invested assets: Other derivatives and embedded derivatives 18 14 $ 401 $ 111 Liabilities: Contractholder funds: FIA embedded derivative $ 2,934 $ 2,476 Other liabilities: Preferred shares reimbursement feature embedded derivative 24 29 $ 2,958 $ 2,505 The change in fair value of derivative instruments included in the accompanying unaudited Condensed Consolidated Statements of Operations is as follows: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Revenues: Net investment gains (losses): Call options $ 64 $ 55 $ 218 $ (67 ) Futures contracts 6 2 14 — Foreign currency forward — — 2 — Other derivatives and embedded derivatives 1 — 4 — Reinsurance related embedded derivatives 45 (13 ) 42 (34 ) Total net investment gains (losses) $ 116 $ 44 $ 280 $ (101 ) Benefits and other changes in policy reserves: FIA embedded derivatives $ 214 $ 141 $ 458 $ 43 Acquisition and operating expenses, net of deferrals: Preferred shares reimbursement feature embedded derivative $ 3 $ — $ 5 $ (1 ) Additional Disclosures Other Derivatives and Embedded Derivatives The Company holds a $35 fund-linked note issued by Nomura International Funding Pte. Ltd. The note provides for an additional payment at maturity based on the value of an embedded derivative in AnchorPath Dedicated Return Fund (the "AnchorPath Fund") of $11 which was based on the actual return of the fund. At June 30, 2019 , the fair value of the fund-linked note and embedded derivative were $28 and $18 , respectively. At December 31, 2018, the fair value of the fund-linked note and embedded derivative were $26 and $14 , respectively. At maturity of the fund-linked note, FGL Insurance will receive the $35 face value of the note plus the value of the embedded derivative in the AnchorPath Fund. The additional payment at maturity is an embedded derivative reported in "Other invested assets", while the host is an available-for-sale security reported in "Fixed maturities, available-for-sale". Fixed Index Annuity ("FIA") Embedded Derivative and Call Options and Futures The Company has FIA Contracts that permit the holder to elect an interest rate return or an equity index linked component, where interest credited to the contracts is linked to the performance of various equity indices, primarily the S&P 500 Index. This feature represents an embedded derivative under GAAP. The FIA embedded derivative is valued at fair value and included in the liability for contractholder funds in the accompanying Condensed Consolidated Balance Sheets with changes in fair value included as a component of “Benefits and other changes in policy reserves” in the unaudited Condensed Consolidated Statements of Operations. See a description of the fair value methodology used in "Note 6. Fair Value of Financial Instruments". The Company purchases derivatives consisting of a combination of call options and futures contracts on the applicable market indices to fund the index credits due to FIA contractholders. The call options are one , two , three , and five year options purchased to match the funding requirements of the underlying policies. On the respective anniversary dates of the index policies, the index used to compute the interest credit is reset and the Company purchases new one , two , three , or five year call options to fund the next index credit. The Company manages the cost of these purchases through the terms of its FIA contracts, which permit the Company to change caps, spreads or participation rates, subject to guaranteed minimums, on each contract’s anniversary date. The change in the fair value of the call options and futures contracts is generally designed to offset the portion of the change in the fair value of the FIA embedded derivative related to index performance. The call options and futures contracts are marked to fair value with the change in fair value included as a component of “Net investment gains (losses).” The change in fair value of the call options and futures contracts includes the gains and losses recognized at the expiration of the instrument term or upon early termination and the changes in fair value of open positions. Other market exposures are hedged periodically depending on market conditions and the Company’s risk tolerance. The Company’s FIA hedging strategy economically hedges the equity returns and exposes the Company to the risk that unhedged market exposures result in divergence between changes in the fair value of the liabilities and the hedging assets. The Company uses a variety of techniques, including direct estimation of market sensitivities, to monitor this risk daily. The Company intends to continue to adjust the hedging strategy as market conditions and the Company’s risk tolerance change. Preferred Equity Remarketing Reimbursement Embedded Derivative Liability On November 30, 2017 the Company issued 275,000 Series A cumulative preferred shares and 100,000 Series B cumulative preferred shares (together the “Preferred Shares”). The Preferred Shares do not have a maturity date and are non-callable for the first five years . From and after November 30, 2022, the original holders of the Preferred Shares may request and thus require, the Company (subject to customary blackout provisions) to remarket the Preferred Shares on their existing terms. If the remarketing is successful and the original holders elect to sell their preferred shares at the remarketed price and proceeds from such sale are less than the outstanding balance of the applicable shares (including dividends paid in kind and accumulated but unpaid dividends), the Company will be required to reimburse the sellers, up to a maximum of 10% of the par value of the originally issued preferred shares (including dividends paid in kind and accumulated but unpaid dividends) with such amount payable either in cash, ordinary shares, or any combination thereof, at the Company's option (the “Reimbursement Feature”). The Reimbursement Feature represents an embedded derivative that is not clearly and closely related to the preferred stock host and must be bifurcated. The Reimbursement Feature liability is held at fair value within “Other liabilities” in the accompanying Condensed Consolidated Balance Sheets using a Black Derman Toy model incorporating among other things the paid in kind dividend coupon rate and the Company’s call option. Changes in fair value of this derivative are recognized within “Acquisition and operating expenses, net of deferrals” in the accompanying unaudited Condensed Consolidated Statements of Operations. Credit Risk The Company is exposed to credit loss in the event of non-performance by its counterparties on the call options and reflects assumptions regarding this non-performance risk in the fair value of the call options. The non-performance risk is the net counterparty exposure based on the fair value of the open contracts less collateral held. The Company maintains a policy of requiring all derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. Information regarding the Company’s exposure to credit loss on the call options it holds is presented in the following table: June 30, 2019 Counterparty Credit Rating (Fitch/Moody's/S&P) (a) Notional Fair Value Collateral Net Credit Risk Merrill Lynch A+/*/A+ $ 2,934 $ 74 $ 29 $ 45 Deutsche Bank BBB/A3/BBB+ 1,019 14 13 1 Morgan Stanley */A1/A+ 1,508 22 23 (1 ) Barclay's Bank A+/A2/A 3,199 126 105 21 Canadian Imperial Bank of Commerce */Aa2/A+ 1,931 61 40 21 Wells Fargo A+/A2/A- 2,089 64 62 2 Goldman Sachs A/A3/BBB+ 1,350 22 21 1 Total $ 14,030 $ 383 $ 293 $ 90 December 31, 2018 Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch A+/*/A+ $ 3,952 $ 25 $ — $ 25 Deutsche Bank A-/A3/BBB+ 1,327 5 6 (1 ) Morgan Stanley */A1/A+ 1,648 9 6 3 Barclay's Bank A+/A2/A 2,205 27 20 7 Canadian Imperial Bank of Commerce */Aa2/A+ 1,716 11 8 3 Wells Fargo A+/A2/A- 1,635 17 16 1 Goldman Sachs A/A3/BBB+ 647 3 3 — Total $ 13,130 $ 97 $ 59 $ 38 (a) An * represents credit ratings that were not available. Collateral Agreements The Company is required to maintain minimum ratings as a matter of routine practice as part of its over-the-counter derivative agreements on ISDA forms. Under some ISDA agreements, the Company has agreed to maintain certain financial strength ratings. A downgrade below these levels provides the counterparty under the agreement the right to terminate the open option contracts between the parties, at which time any amounts payable by the Company or the counterparty would be dependent on the market value of the underlying option contracts. The Company's current rating doesn't allow any counterparty the right to terminate ISDA agreements. In certain transactions, the Company and the counterparty have entered into a collateral support agreement requiring either party to post collateral when the net exposures exceed pre-determined thresholds. For all counterparties, except one, this threshold is set to zero. As of June 30, 2019 and December 31, 2018 , counterparties posted $293 and $59 of collateral, respectively, of which $264 and $59 is included in "Cash and cash equivalents" with an associated payable for this collateral included in "Other liabilities" on the Condensed Consolidated Balance Sheets . The remaining $29 and $0 of non-cash collateral was held by a third-party custodian and may not be sold or re-pledged, except in the event of default, and, therefore, is not included in the Company's Condensed Consolidated Balance Sheets at June 30, 2019 and December 31, 2018 , respectively. This collateral generally consists of U.S. treasury bonds and mortgage-backed securities. Accordingly, the maximum amount of loss due to credit risk that the Company would incur if parties to the call options failed completely to perform according to the terms of the contracts was $90 and $38 at June 30, 2019 and December 31, 2018 , respectively. The Company is required to pay counterparties the effective federal funds rate each day for cash collateral posted to FGL for daily mark to market margin changes. The Company reinvests derivative cash collateral to reduce the interest cost. Cash collateral is invested in overnight investment sweep products which are included in "Cash and cash equivalents" in the accompanying Condensed Consolidated Balance Sheets. The Company held 834 and 664 futures contracts at June 30, 2019 and December 31, 2018 , respectively. The fair value of the futures contracts represents the cumulative unsettled variation margin (open trade equity, net of cash settlements). The Company provides cash collateral to the counterparties for the initial and variation margin on the futures contracts which is included in "Cash and cash equivalents" in the accompanying Condensed Consolidated Balance Sheets. The amount of cash collateral held by the counterparties for such contracts was $5 and $3 at June 30, 2019 and December 31, 2018 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset, or non-performance risk, which may include the Company’s own credit risk. The Company’s estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market for that asset or liability in the absence of a principal market as opposed to the price that would be paid to acquire the asset or assume a liability (“entry price”). The Company categorizes financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: Level 1 - Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date. Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads, and yield curves. Level 3 - Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date based on the best information available in the circumstances. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. In addition to the unobservable inputs, Level 3 fair value investments may include observable components, which are components that are actively quoted or can be validated to market-based sources. The carrying amounts and estimated fair values of the Company’s financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, related party loans, portions of other invested assets and debt which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows: June 30, 2019 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 772 $ — $ — $ 772 $ 772 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,771 736 5,507 5,507 Commercial mortgage-backed securities — 2,824 50 2,874 2,874 Corporates — 10,103 1,319 11,422 11,422 Hybrids 296 725 10 1,031 1,031 Municipals — 1,259 39 1,298 1,298 Residential mortgage-backed securities — 453 588 1,041 1,041 U.S. Government 41 — — 41 41 Foreign Governments — 131 17 148 148 Equity securities 413 672 3 1,088 1,088 Derivative investments — 383 — 383 383 Other invested assets — — 43 43 43 Funds withheld for reinsurance receivables, at fair value 574 1,330 — 1,904 1,904 Total financial assets at fair value $ 2,096 $ 22,651 $ 2,805 $ 27,552 $ 27,552 Liabilities Derivatives: FIA embedded derivatives, included in contractholder funds — — 2,934 2,934 2,934 Preferred shares reimbursement feature embedded derivative — — 24 24 24 Fair value of future policy benefits — — 1,787 1,787 1,787 Total financial liabilities at fair value $ — $ — $ 4,745 $ 4,745 $ 4,745 December 31, 2018 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 571 $ — $ — $ 571 $ 571 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,388 444 4,832 4,832 Commercial mortgage-backed securities — 2,470 67 2,537 2,537 Corporates — 9,150 1,231 10,381 10,381 Hybrids 265 626 10 901 901 Municipals — 1,150 37 1,187 1,187 Residential mortgage-backed securities — 417 614 1,031 1,031 U.S. Government 114 5 — 119 119 Foreign Governments — 105 16 121 121 Equity securities 454 874 4 1,332 1,332 Derivative investments — 97 — 97 97 Other invested assets — — 39 39 39 Funds withheld for reinsurance receivables, at fair value 169 576 4 749 749 Total financial assets at fair value $ 1,573 $ 19,858 $ 2,466 $ 23,897 $ 23,897 Liabilities Derivatives: FIA embedded derivatives, included in contractholder funds $ — $ — $ 2,476 $ 2,476 $ 2,476 Preferred shares reimbursement feature embedded derivative — — 29 29 29 Fair value of future policy benefits — — 725 725 725 Total financial liabilities at fair value $ — $ — $ 3,230 $ 3,230 $ 3,230 Valuation Methodologies Fixed Maturity Securities & Equity Securities The Company measures the fair value of its securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity or equity security, and the Company will then consistently apply the valuation methodology to measure the security’s fair value. The Company's fair value measurement is based on a market approach, which utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach include third-party pricing services, independent broker quotations, or pricing matrices. The Company uses observable and unobservable inputs in its valuation methodologies. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. In addition, market indicators and industry and economic events are monitored and further market data will be acquired when certain thresholds are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. The significant unobservable input used in the fair value measurement of equity securities for which the market approach valuation technique is employed is yield for comparable securities. Increases or decreases in the yields would result in lower or higher, respectively, fair value measurements. For broker-quoted only securities, quotes from market makers or broker-dealers are obtained from sources recognized to be market participants. Management believes the broker quotes are prices at which trades could be executed based on historical trades executed at broker-quoted or slightly higher prices. The Company has an equity investment in a private business development company which is not traded on an exchange or valued by other sources such as analytics or brokers. The Company based the fair value of this investment on an estimated net asset value provided by the investee. Management did not make any adjustments to this valuation. The fair value of the Company's investment in mutual funds is based on the net asset value published by the respective mutual fund and represents the value the Company would have received if it withdrew its investment on the balance sheet date. The Company did not adjust prices received from third parties as of June 30, 2019 or December 31, 2018 . However, the Company does analyze the third-party valuation methodologies and related inputs to perform assessments to determine the appropriate level within the fair value hierarchy. Derivative Financial Instruments The fair value of call option assets is based upon valuation pricing models, which represents what the Company would expect to receive or pay at the balance sheet date if it canceled the options, entered into offsetting positions, or exercised the options. Fair values for these instruments are determined internally, based on valuation pricing models which use market-observable inputs, including interest rates, yield curve volatilities, and other factors. The fair value of futures contracts represents the cumulative unsettled variation margin (open trade equity, net of cash settlements) which represents what the Company would expect to receive or pay at the balance sheet date if it canceled the futures contract or entered into offsetting positions. These contracts are classified as Level 1. The fair value measurement of the FIA embedded derivatives included in contractholder funds is determined through a combination of market observable information and significant unobservable inputs. The market observable inputs are the market value of option and interest swap rates. The significant unobservable inputs are the mortality multiplier, surrender rates, non-performance spread and option costs. The mortality multiplier at June 30, 2019 and December 31, 2018 was applied to the Annuity 2000 mortality tables. Significant increases or decreases in the market value of an option in isolation would result in a higher or lower, respectively, fair value measurement. Significant increases or decreases in interest swap rates, mortality multiplier, surrender rates, or non-performance spread in isolation would result in a lower or higher fair value measurement, respectively. Generally, a change in any one unobservable input would not directly result in a change in any other unobservable input. The fair value of the Reimbursement Feature is determined using a Black Derman Toy model, incorporating the paid in kind dividend coupon, the Company's redemption option and the preferred shareholder's remarketing feature. The remarketing feature allows the shareholder to put the preferred shares to the Company for a value of par after five years and, if after a successful remarketing event the amount is less than 90% par, up to a maximum of 10% of liquidation price defined. Fair value of this derivative decreased $3 and $5 during the three and six months ended June 30, 2019 , due to changes in the credit spread. Other Invested Assets Fair value of the AnchorPath embedded derivative is based on an unobservable input, the net asset value of the AnchorPath fund at the balance sheet date. The embedded derivative is similar to a call option on the net asset value of the AnchorPath fund with a strike price of zero since FGL Insurance will not be required to make any additional payments at maturity of the fund-linked note in order to receive the net asset value of the AnchorPath fund on the maturity date. A Black-Scholes model determines the net asset value of the AnchorPath fund as the fair value of the call option regardless of the values used for the other inputs to the option pricing model. The net asset value of the AnchorPath fund is provided by the fund manager at the end of each calendar month and represents the value an investor would receive if it withdrew its investment on the balance sheet date. Therefore, the key unobservable input used in the Black-Scholes model is the value of the AnchorPath fund. As the value of the AnchorPath fund increases or decreases, the fair value of the embedded derivative will increase or decrease. FSRC and F&G Re Funds Withheld for Reinsurance Receivables and Future Policy Benefits FSRC and F&G Re elected to apply the Fair Value Option to account for its funds withheld receivables and future policy benefits liability related to its assumed reinsurance. FSRC and F&G Re measures the fair value of the Funds Withheld for Reinsurance Receivables based on the fair values of the securities in the underlying funds withheld portfolio held by the cedant. FSRC and F&G Re use a discounted cash flows approach to measure the fair value of the Future Policy Benefits Reserve. The cash flows associated with future policy premiums and benefits are generated using best estimate assumptions (plus a risk margin, where applicable) and are consistent with market prices, where available. Risk margins are typically applied to non-observable, non-hedgeable market inputs such as long term volatility, mortality, morbidity, lapse, etc. The significant unobservable inputs used in the fair value measurement of the FSRC and F&G Re future policy benefit liability are undiscounted cash flows, non-performance risk spread and risk margin to reflect uncertainty. Undiscounted cash flows used in our June 30, 2019 discounted cash flow model equaled $2,265 . Increases or decreases in non-performance risk spread and risk margin to reflect uncertainty would result in a lower or higher fair value measurement, respectively. Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of June 30, 2019 and December 31, 2018 , are as follows: Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) June 30, 2019 June 30, 2019 Assets Asset-backed securities $ 711 Broker-quoted Offered quotes 89.87% - 106.58% (100.79%) Asset-backed securities 25 Third-Party Valuation Offered quotes 0.00% - 99.33% (34.08%) Commercial mortgage-backed securities 24 Broker-quoted Offered quotes 84.00% - 100.15% (87.98%) Commercial mortgage-backed securities 26 Matrix Pricing Quoted prices 126.19% - 126.19% (126.19%) Corporates 1,181 Broker-quoted Offered quotes 80.47% - 119.21% (102.29%) Corporates 138 Matrix Pricing Quoted prices 101.67% - 106.04% (103.41%) Hybrids 10 Broker-quoted Offered quotes 101.95% - 101.95% (101.95%) Municipals 39 Broker-quoted Offered quotes 118.57% - 118.57% (118.57%) Residential mortgage-backed securities 588 Broker-quoted Offered quotes 93.86% - 106.45% (106.07%) Foreign governments 17 Broker-quoted Offered quotes 103.01% - 106.03% (103.95%) Equity securities (Salus preferred equity) 3 Income-Approach Yield 4.42% Other Invested Assets: Available-for-sale embedded derivative (AnchorPath) 18 Black Scholes model Market value of AnchorPath fund 100.00% Credit Linked Note 25 Broker-quoted Offered quotes 100.00% Total financial assets at fair value $ 2,805 Liabilities Future policy benefits $ 1,787 Discounted cash flow Market value of option 0.00% - 7.51% (1.48%) Mortality multiplier 80.00% - 100.00% (90.14%) Surrender rates 0.00% - 55.00% (20.93%) Partial withdrawals 0.00% - 4.00% (1.43%) Non-performance spread 0.00% - 0.10% (0.08%) Option cost 0.00% - 4.58% (0.98%) Risk margin to reflect uncertainty 0.26% - 0.62% (0.32%) Morbidity risk margin 0.00% - 2.00% (0.08%) Derivatives: FIA embedded derivatives included in contractholder funds 2,934 Discounted cash flow Market value of option 0.00% - 31.74% (2.60%) SWAP rates 1.75% - 1.96% (1.85%) Mortality multiplier 80.00% - 80.00% (80.00%) Surrender rates 0.50% - 75.00% (5.84%) Partial withdrawals 1.00% - 2.50% (2.00%) Non-performance spread 0.25% - 0.25% (0.25%) Option cost 0.18% - 16.61% (2.16%) Preferred shares reimbursement feature embedded derivative 24 Black Derman Toy model Credit Spread 4.10% Yield Volatility 20.00% Total financial liabilities at fair value $ 4,745 Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2018 December 31, 2018 Assets Asset-backed securities $ 405 Broker-quoted Offered quotes 97.00% - 102.00% (99.77%) Asset-backed securities 24 Matrix Pricing Quoted prices 96.07% - 96.07% (96.07%) Asset-backed securities 15 Third-Party Valuation Offered quotes 0.00% - 99.29% (23.05%) Commercial mortgage-backed securities 43 Broker-quoted Offered quotes 77.12% - 100.08% (85.46%) Commercial mortgage-backed securities 24 Matrix Pricing Quoted prices 117.72% - 117.72% (117.72%) Corporates 577 Broker-quoted Offered quotes 74.63% - 104.62% (97.80%) Corporates 654 Matrix Pricing Quoted prices 91.74% - 113.25% (98.86%) Hybrids 10 Matrix Pricing Quoted prices 96.60% - 96.60% (96.60%) Municipals 37 Broker-quoted Offered quotes 111.23% - 111.23% (111.23%) Residential mortgage-backed securities 614 Broker-quoted Offered quotes 89.80% - 100.99% (100.73%) Foreign governments 16 Broker-quoted Offered quotes 98.38% - 99.01% (98.58%) Equity securities (Salus preferred equity) 4 Income-Approach Yield 7.15% Other Invested Assets: Available-for-sale embedded derivative (AnchorPath) 14 Black Scholes model Market value of AnchorPath fund 100.00% Credit Linked Note 25 Broker-quoted Offered quotes 100.00% Funds withheld for reinsurance receivables, at fair value 4 Matrix pricing Calculated prices 100.00% Total financial assets at fair value $ 2,466 Liabilities Future policy benefits $ 725 Discounted cash flow Non-Performance risk spread 0.00% - 0.22% (0.18%) Risk margin to reflect uncertainty 0.35% - 0.71% (0.68%) Derivatives: FIA embedded derivatives included in contractholder funds 2,476 Discounted cash flow Market value of option 0.00% - 31.06% (0.94%) SWAP rates 2.57% - 2.71% (2.63%) Mortality multiplier 80.00% - 80.00% (80.00%) Surrender rates 0.50% - 75.00% (5.90%) Partial withdrawals 1.00% - 2.50% (2.00%) Non-performance spread 0.25% - 0.25% (0.25%) Option cost 0.11% - 16.61% (2.18%) Preferred shares reimbursement feature embedded derivative 29 Black Derman Toy model Credit Spread 5.14% Yield Volatility 20.00% Total financial liabilities at fair value $ 3,230 Changes in unrealized losses (gains), net in the Company’s FIA embedded derivatives are included in "Benefits and other changes in policy reserves" in the unaudited Condensed Consolidated Statements of Operations. The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and six months ended June 30, 2019 and 2018 , respectively. This summary excludes any impact of amortization of VOBA and DAC. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Three months ended June 30, 2019 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 508 $ — $ 8 $ 262 $ — $ (12 ) $ (30 ) $ 736 Commercial mortgage-backed securities 68 — 2 1 — (8 ) (13 ) 50 Corporates 1,209 — 26 114 (4 ) (25 ) (1 ) 1,319 Hybrids 10 — — — — — — 10 Municipals 38 — 1 — — — — 39 Residential mortgage-backed securities 619 — 14 6 — (22 ) (29 ) 588 Foreign Governments 16 — 1 — — — — 17 Equity securities 20 — (2 ) — — — (15 ) 3 Other invested assets: Available-for-sale embedded derivative 16 2 — — — — — 18 Credit linked note 25 — — — — — — 25 Funds withheld for reinsurance receivables, at fair value 7 — — — (1 ) — (6 ) — Total assets at Level 3 fair value $ 2,536 $ 2 $ 50 $ 383 $ (5 ) $ (67 ) $ (94 ) $ 2,805 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,720 $ 214 $ — $ — $ — $ — $ — $ 2,934 Future policy benefits 797 63 5 — — 922 — 1,787 Preferred shares reimbursement feature embedded derivative 27 (3 ) — — — — — 24 Total liabilities at Level 3 fair value $ 3,544 $ 274 $ 5 $ — $ — $ 922 $ — $ 4,745 (a) The net transfers out of Level 3 during the three months ended June 30, 2019 were exclusively to Level 2. Three months ended June 30, 2018 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 301 $ — $ — $ 152 $ — $ (1 ) $ (122 ) $ 330 Commercial mortgage-backed securities 42 — (1 ) 12 — — 7 60 Corporates 1,216 — (8 ) 99 — (69 ) (48 ) 1,190 Hybrids 10 — — — — — — 10 Municipals 37 — — — — — — 37 Residential mortgage-backed securities 65 — 2 179 — (4 ) — 242 Foreign Governments 16 — — — — — — 16 Equity securities 4 — (1 ) — — — — 3 Other invested assets: Foreign exchange embedded derivative Available-for-sale embedded derivative 17 — — — — — — 17 Affiliated Bank Loans — — — 50 — — — 50 Funds withheld for reinsurance receivables, at fair value 6 — — — — — — 6 Total assets at Level 3 fair value $ 1,714 $ — $ (8 ) $ 492 $ — $ (74 ) $ (163 ) $ 1,961 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,179 $ 141 $ — $ — $ — $ — $ — $ 2,320 Future policy benefits 712 1 — — — 24 — 737 Preferred shares reimbursements feature embedded derivative 24 — — — — — — 24 Total liabilities at Level 3 fair value $ 2,915 $ 142 $ — $ — $ — $ 24 $ — $ 3,081 (a) The net transfers out of Level 3 during the three months ended June 30, 2018 were exclusively to Level 2. Six months ended June 30, 2019 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 444 $ — $ 13 $ 376 $ — $ (43 ) $ (54 ) $ 736 Commercial mortgage-backed securities 67 — 4 1 — (9 ) (13 ) 50 Corporates 1,231 (1 ) 50 114 (25 ) (60 ) 10 1,319 Hybrids 10 — — — — — — 10 Municipals 37 — 2 — — — — 39 Residential mortgage-backed securities 614 — 30 13 — (40 ) (29 ) 588 Foreign Governments 16 — 1 — — — — 17 Equity securities 4 — (1 ) — — — — 3 Other invested assets: Available-for-sale embedded derivative 14 4 — — — — — 18 Credit linked note 25 — — — — — — 25 Funds withheld for reinsurance receivables, at fair value 4 — — 5 (1 ) — (8 ) — Total assets at Level 3 fair value $ 2,466 $ 3 $ 99 $ 509 $ (26 ) $ (152 ) $ (94 ) $ 2,805 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,476 $ 458 $ — $ — $ — $ — $ — $ 2,934 Future policy benefits 725 89 8 — — 965 — 1,787 Preferred shares reimbursement feature embedded derivative 29 (5 ) — — — — — 24 Total liabilities at Level 3 fair value $ 3,230 $ 542 $ 8 $ — $ — $ 965 $ — $ 4,745 ( a) The net transfers out of Level 3 during the six months ended June 30, 2019 were exclusively to Level 2. Six months ended June 30, 2018 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 412 $ — $ (2 ) $ 180 $ — $ (7 ) $ (253 ) $ 330 Commercial mortgage-backed securities 49 — (2 ) 12 — (6 ) 7 60 Corporates 1,169 — (28 ) 199 — (102 ) (48 ) 1,190 Hybrids 10 — — — — — — 10 Municipals 38 — (1 ) — — — — 37 Residential mortgage-backed securities 66 — 2 179 — (5 ) — 242 Foreign Governments 17 (1 ) — — — — — 16 Equity securities 3 1 (1 ) — — — — 3 Other invested assets: Available-for-sale embedded derivative 17 — — — — — — 17 Affiliated bank loans — — — 50 — — — 50 Funds withheld for reinsurance receivables, at fair value 4 — — 2 — — — 6 Total assets at Level 3 fair value $ 1,785 $ — $ (32 ) $ 622 $ — $ (120 ) $ (294 ) $ 1,961 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,277 $ 43 $ — $ — $ — $ — $ — $ 2,320 Future policy benefits 728 (17 ) (2 ) — — 28 — 737 Preferred shares reimbursement feature embedded derivative 23 1 — — — — — 24 Total liabilities at Level 3 fair value $ 3,028 $ 27 $ (2 ) $ — $ — $ 28 $ — $ 3,081 ( a) The net transfers out of Level 3 during the six months ended June 30, 2018 were exclusively to Level 2. Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments. Mortgage Loans The fair value of mortgage loans is established using a discounted cash flow method based on credit rating, maturity and future income. This yield-based approach is sourced from our third-party vendor. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt service coverage, loan-to-value, quality of tenancy, borrower, and payment record. In the event of an impairment, the carrying value is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price, or the fair value of the collateral if the loan is collateral-dependent. The inputs used to measure the fair value of our mortgage loans are classified as Level 3 within the fair value hierarchy. Policy Loans (included within Other Invested Assets) Fair values for policy loans are estimated from a discounted cash flow analysis, using interest rates currently being offered for loans with similar credit risk. Loans with similar characteristics are aggregated for purposes of the calculations. Investment Contracts Investment contracts include deferred annuities, FIAs, indexed universal life policies ("IULs") and immediate annuities. The fair value of deferred annuity, FIA, and IUL contracts is based on their cash surrender value (i.e. the cost the Company would incur to extinguish the liability) as these contracts are generally issued without an annuitization date. The fair value of immediate annuities contracts is derived by calculating a new fair value interest rate using the updated yield curve and treasury spreads as of the respective reporting date. At June 30, 2019 and December 31, 2018 , this resulted in lower fair value reserves relative to the carrying value. The Company is not required to, and has not, estimated the fair value of the liabilities under contracts that involve significant mortality or morbidity risks, as these liabilities fall within the definition of insurance contracts that are exceptions from financial instruments that require disclosures of fair value. Debt The fair value of debt is based on quoted market prices. The inputs used to measure the fair value of our outstanding debt are classified as Level 2 within the fair value hierarchy. Our revolving credit facility debt is classified as Level 3 within the fair value hierarchy, and the estimated fair value reflects the carrying value as the revolver has no maturity date. The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. June 30, 2019 Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 59 $ — $ 59 $ 59 Commercial mortgage loans — — 490 490 476 Residential mortgage loans — — 289 289 284 Policy loans, included in other invested assets — — 15 15 25 Affiliated other invested assets — — 28 28 28 Funds withheld for reinsurance receivables, at fair value — — 18 18 18 Total $ — $ 59 $ 840 $ 899 $ 890 Liabilities Investment contracts, included in contractholder funds — — 18,864 18,864 21,894 Debt — 547 — 547 542 Total $ — $ 547 $ 18,864 $ 19,411 $ 22,436 December 31, 2018 Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 52 $ — $ 52 $ 52 Commercial mortgage loans — — 483 483 482 Residential mortgage loans — — 187 187 185 Policy loans, included in other invested assets — — 11 11 22 Affiliated other invested assets — — 39 39 39 Funds withheld for reinsurance receivables, at fair value — — 8 8 8 Total $ — $ 52 $ 728 $ 780 $ 788 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 18,358 $ 18,358 $ 20,911 Debt — 520 — 520 541 Total $ — $ 520 $ 18,358 $ 18,878 $ 21,452 The following table includes assets that have not been classified in the fair value hierarchy as the fair value of these investments are measured using the net asset value per share practical expedient. For further discussion about this adoption see “Note 2. Significant Accounting Policies and Practices” to the Company's 2018 Form 10-K. Carrying Value After Measurement June 30, 2019 December 31, 2018 Equity securities $ 56 $ 50 Limited partnership investment, included in other invested assets 875 510 For investments for which NAV is used as a practical expedient for fair value, the Company does not have any significant restrictions in their ability to liquidate their positions in these investments, other than obtaining general partner approval, nor does the Company believe it is probable a price less than NAV would be received in the event of a liquidation. The Company reviews the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in and out of Level 3, or between other levels, at the beginning fair value for the reporting period in which the changes occur. The transfers into and out of Level 3 were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value. The Company’s assessment resulted in gross transfers into and gross transfers out of certain fair value levels by asset class for the three and six months ended June 30, 2019 and 2018 , are as follows: Transfers Between Fair Value Levels Level 1 Level 2 Level 3 In Out In Out In Out Three months ended June 30, 2019 Asset-backed securities $ — $ — $ 82 $ 52 $ 52 $ 82 Commercial mortgage-backed securities — — 14 1 1 14 Corporates — — 1 — — 1 Hybrids — — — — — — Residential mortgage-backed securities — — 29 — — 29 Equity securities 2 — 15 2 — 15 Funds withheld for reinsurance receivables — — 6 — — 6 Total transfers $ 2 $ — $ 147 $ 55 $ 53 $ 147 Three months ended June 30, 2018 Asset-backed securities $ — $ — $ 122 $ — $ — $ 122 Commercial mortgage-backed securities — — 1 8 8 1 Corporates — — 51 3 3 51 Hybrids 5 — — 5 — — Equity securities 25 — — 25 — — Total transfers $ 30 $ — $ 174 $ 41 $ 11 $ 174 Transfers Between Fair Value Levels Level 1 Level 2 Level 3 In Out In Out In Out Six months ended June 30, 2019 Asset-backed securities $ — $ — $ 106 $ 52 $ 52 $ 106 Commercial mortgage-backed securities — — 14 1 1 14 Corporates — — 1 11 11 1 Hybrids — — — — — — Residential mortgage-backed securities — — 29 — — 29 Equity securities 7 18 18 7 16 16 Funds withheld for reinsurance receivables — — 8 — — 8 Total transfers $ 7 $ 18 $ 176 $ 71 $ 80 $ 174 Six months ended June 30, 2018 Asset-backed securities $ — $ — $ 253 $ — $ — $ 253 Commercial mortgage-backed securities — — 1 8 8 1 Corporates — — 51 3 3 51 Hybrids 20 — — 20 — — Equity securities 25 — — 25 — — Total transfers $ 45 $ — $ 305 $ 56 $ 11 $ 305 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangibles A summary of the changes in the carrying amounts of the Company's VOBA, DAC and DSI intangible assets are as follows: VOBA DAC DSI Total Balance at December 31, 2018 $ 866 $ 344 $ 149 $ 1,359 Deferrals — 194 77 271 Amortization (51 ) (3 ) (3 ) (57 ) Interest 9 5 2 16 Unlocking 1 (1 ) (1 ) (1 ) Adjustment for net unrealized investment (gains) losses (121 ) (30 ) (16 ) (167 ) Balance at June 30, 2019 $ 704 $ 509 $ 208 $ 1,421 VOBA DAC DSI Total Balance at December 31, 2017 $ 821 $ 22 $ 10 $ 853 Deferrals — 134 60 194 Amortization (51 ) (2 ) (3 ) (56 ) Interest 10 1 — 11 Unlocking 1 — — 1 Adjustment for net unrealized investment (gains) losses 61 3 3 67 Balance at June 30, 2018 $ 842 $ 158 $ 70 $ 1,070 Amortization of VOBA, DAC, and DSI is based on the historical, current and future expected gross margins or profits recognized, including investment gains and losses. The interest accrual rate utilized to calculate the accretion of interest on VOBA ranged from 0.05% to 4.01% . The adjustment for unrealized net investment losses (gains) represents the amount of VOBA, DAC, and DSI that would have been amortized if such unrealized gains and losses had been recognized. This is referred to as the “shadow adjustments” as the additional amortization is reflected in AOCI rather than the unaudited Condensed Consolidated Statements of Operations. As of June 30, 2019 and 2018 , the VOBA balances included cumulative adjustments for net unrealized investment (gains) losses of $(46) and $43 , respectively, the DAC balances included cumulative adjustments for net unrealized investment (gains) losses of $(26) and $2 , respectively, and the DSI balance included net unrealized investment (gains) losses of $(13) and $3 , respectively. Estimated amortization expense for VOBA in future fiscal periods is as follows: Estimated Amortization Expense Fiscal Year 2019 35 2020 78 2021 89 2022 84 2023 75 Thereafter 389 The Company had an unearned revenue liability balance of $(34) as of June 30, 2019 , including deferrals of $(19) , amortization of $2 , interest of $(1) , and adjustment for net unrealized investment gains (losses) of $25 . The Company had an unearned revenue liability balance of $(22) as of June 30, 2018 , including deferrals of $(19) , amortization of $11 , and adjustment for net unrealized investment gains (losses) of $(14) . Definite and Indefinite Lived Intangible Assets Amortizable intangible assets as of June 30, 2019 consist of the following: Cost Accumulated amortization Net carrying amount Weighted average useful life (years) Trade marks / trade names $ 16 $ 3 $ 13 10 State insurance licenses 6 N/A 6 Indefinite Total $ 19 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The carrying amount of the Company's outstanding debt as of June 30, 2019 and December 31, 2018 is as follows: June 30, 2019 December 31, 2018 Debt $ 542 $ 541 As of June 30, 2019 and December 31, 2018 , the Company had not drawn on the revolver, which would have carried interest rates equal to 5.15% and 5.27% , respectively, had we drawn on the revolver. As of June 30, 2019 and December 31, 2018 , the amount available to be drawn on the revolver was $ 250 . The interest expense and amortization of debt issuance costs for the three and six months ended June 30, 2019 and 2018 , respectively, were as follows: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Interest Expense Amortization Interest Expense Amortization Interest Expense Amortization Interest Expense Amortization Debt 7 1 8 — 15 1 13 — Revolving credit facility — — 1 — — — 2 — Gain on extinguishment of debt — — (2 ) — — — (2 ) — |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Equity | Equity Share Repurchases On December 19, 2018, the Company's Board of Directors authorized a share repurchase program of up to $150 of the Company's outstanding common stock. This program will expire on December 15, 2020 , and may be modified at any time. Under the share repurchase program, the Company may repurchase shares from time to time in open market transactions or through privately negotiated transactions in accordance with applicable federal securities laws. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934. The extent to which the Company repurchases its shares, and the timing of such purchases, will depend upon a variety of factors, including market conditions, regulatory requirements and other considerations, as determined by the Company. During the three and six months ended June 30, 2019 , the Company repurchased 148 thousand shares for a total cost of $1 , and 3,876 thousand shares for a total cost of $31 , respectively. As of June 30, 2019 , the Company had repurchased a total of 4,476 thousand shares for a total cost of $35 . Dividends The Company declared the following cash dividend to its common shareholders during the three and six months ended June 30, 2019 . Date Declared Date Paid Date Shareholders of record Shareholders of record (in thousands) Cash Dividend declared (per share) Total cash paid February 27, 2019 April 1, 2019 March 18, 2019 221,661 $0.01 $2 May 7, 2019 June 10, 2019 May 28, 2019 221,661 $0.01 $2 On August 7, 2019, the Company's Board of Directors declared a quarterly cash dividend of $0.01 per share. The dividend will be paid on September 9, 2019 to shareholders of record as of the close of business on August 26, 2019. The Company did not declare a cash dividend to its common shareholders during the three or six months ended June 30, 2018 . The Company declared the following dividends to its preferred shareholders during the three and six months ended June 30, 2019 : Type of Preferred Share Date Declared Date Paid Date Shareholders of record Shares outstanding at date of record (in thousands) Method of Payment Total cash paid Total shares paid in kind (in thousands) Series A Preferred Shares March 29, 2019 April 1, 2019 March 15, 2019 298 Paid in kind $— 6 Series B Preferred Shares March 29, 2019 April 1, 2019 March 15, 2019 108 Paid in kind $— 2 Series A Preferred Shares June 28, 2019 July 1, 2019 June 15, 2019 304 Paid in kind $— 6 Series B Preferred Shares June 28, 2019 July 1, 2019 June 15, 2019 110 Paid in kind $— 2 The Company declared the following dividends to its preferred shareholders during the three and six months ended June 30, 2018 : Type of Preferred Share Date Declared Date Paid Date Shareholders of record Shares outstanding at date of record (in thousands) Method of Payment Total cash paid Total shares paid in kind (in thousands) Series A Preferred Shares March 29, 2018 April 1, 2018 March 15, 2018 277 Paid in kind $— 5 Series B Preferred Shares March 29, 2018 April 1, 2018 March 15, 2018 101 Paid in kind $— 1 Series A Preferred Shares June 29, 2018 July 1, 2018 June 15, 2018 282 Paid in kind $— 5 Series B Preferred Shares June 29, 2018 July 1, 2018 June 15, 2018 102 Paid in kind $— 2 |
Stock Compensation
Stock Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation | Stock Compensation On August 8, 2017, the Company adopted a stock-based incentive plan (the “FGL Incentive Plan”) that permits the granting of awards in the form of qualified stock options, non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights, unrestricted stock, performance-based awards, dividend equivalents, cash awards and any combination of the foregoing. The Company’s Compensation Committee is authorized to grant up to 15,006 thousand equity awards under the Incentive Plan. At June 30, 2019 , 6,878 thousand equity awards are available for future issuance. FGL Incentive Plan On February 26, 2019 FGL granted 1,699 thousand stock options to a certain officer of the Company. The following table summarizes the vesting conditions for these options: Vesting mechanism Vest Dates Number of options subject to these vesting conditions Service Each March 15 from 2020 through 2023; subject to continued service 485 Service and return on equity performance March 15 2020, 2021 and 2022 subject to continued service and targeted return on equity 607 Service and stock price performance Each March 15 from 2019 through 2023; subject to continued service and target stock price goals being achieved 607 The total fair value of the options granted on February 26, 2019 was $3 . The fair value of the awards is expensed over the service period, which generally corresponds to the vesting period. On May 20, 2019 FGL granted 850 thousand stock options to certain officers of the Company. The following table summarizes the vesting conditions for these options: Vesting mechanism Vest Dates Number of options subject to these vesting conditions Service Each March 15 from 2020 through 2023; subject to continued service 242 Service and return on equity performance March 15 2021, 2022 and 2023 subject to continued service and targeted return on equity 304 Service and stock price performance Each March 15 from 2020 through 2023; subject to continued service and target stock price goals being achieved 304 The total fair value of the options granted on May 20, 2019 was $1 . The fair value of the awards is expensed over the service period, which generally corresponds to the vesting period. At June 30, 2019 , the intrinsic value of stock options outstanding or expected to vest was $2 . At June 30, 2019 , the weighted average remaining contractual term of stock options outstanding, exercisable and vested or expected to vest was 6 years , 6 years and 6 years, respectively. At June 30, 2019 there were 493 thousand options that were exercisable. A summary of the Company’s outstanding stock options as of June 30, 2019 , and related activity during the six months ended June 30, 2019 , is as follows (share amount in thousands): Stock Option Awards Options Weighted Average Exercise Price Stock options outstanding at December 31, 2018 13,007 $ 9.68 Granted 2,549 10.00 Exercised — — Forfeited or expired (3,462 ) (10.00 ) Stock options outstanding at June 30, 2019 12,094 9.65 Exercisable at June 30, 2019 493 10.00 Vested or projected to vest at June 30, 2019 12,094 9.65 To value the options granted with service and return on equity performance vesting conditions, we used a Black Scholes valuation model. To value the options granted with stock price market performance vesting conditions, we used a Monte Carlo simulation. The following inputs and assumptions were used in the determination of the grant date fair values of the February 26, 2019 grants for each. Black-Scholes Model Monte Carlo Model Serviced based ROE Performance based Stock Price Performance based Source of input/ assumption Weighted average fair value per options granted $1.68 $1.74 $1.26 N/A Risk-free interest rate 2.48% 2.50% 2.54% US Treasury Curve Assumed dividend yield 0.49% 0.49% 0.49% Internal projection Expected option term 5.75 years 6.0 years N/A Internal model Contractual term N/A N/A 7.0 years N/A Volatility 26.00% 26.00% 26.00% Predecessor and peer group experience Early exercise multiple N/A N/A 2.8 Hull White model Cost of equity N/A N/A 10.50% Capital asset pricing model - 20 year risk free rate The following inputs and assumptions were used in the determination of the grant date fair values of the May 20, 2019 grants for each. Black-Scholes Model Monte Carlo Model Serviced based ROE Performance based Stock Price Performance based Source of input/ assumption Weighted average fair value per options granted $1.86 $1.92 $1.09 N/A Risk-free interest rate 2.22% 2.23% 2.3% US Treasury Curve Assumed dividend yield 0.46% 0.46% 0.46% Internal projection Expected option term 5.25 years 5.5 years N/A Internal model Contractual term N/A N/A 7.0 years N/A Volatility 26.00% 26.00% 26.00% Predecessor and peer group experience Early exercise multiple N/A N/A 2.8 Hull White model Cost of equity N/A N/A 10.50% Capital asset pricing model - 20 year risk free rate The Company granted 147 thousand restricted shares to directors in the six months ended June 30, 2019 . These shares will vest on December 31, 2019. The total fair value of the restricted shares granted in the six months ended June 30, 2019 was $1 . A summary of the Company’s nonvested restricted shares outstanding as of June 30, 2019 , and related activity during the six months ended , is as follows (share amount in thousands): Restricted Stock Awards Shares Weighted Average Grant Date Fair Value Restricted shares outstanding at December 31, 2018 — $ — Granted 147 6.82 Vested — — Forfeited or expired — — Vested or expected to vest at June, 2019 147 6.82 Management Incentive Plan In the six months ended June 30, 2019 , the Company granted 424 thousand phantom units to members of management under a management incentive plan (the "Management Incentive Plan"). The total fair value of the restricted shares granted in the six months ended June 30, 2019 was $4 . One half of the phantom units vest in three equal installments on each March 15 th from 2020 to 2022, subject to awardees continued service with the Company. The other half will begin vesting on March 15, 2021 and cliff vest on March 15, 2022 based on continued service and attainment of a performance metric: adjusted operating income return on equity. At June 30, 2019 , the liability for phantom units of $1 was based on the number of units granted, the elapsed portion of the service period and the fair value of the Company’s common stock on that date which was $8.40 . A summary of the Management Incentive Plan nonvested phantom units outstanding as of June 30, 2019 , and related activity during the six months ended , is as follows (share amount in thousands): Phantom units Shares Weighted Average Grant Date Fair Value Phantom units outstanding at December 31, 2018 356 $ 8.95 Granted 424 8.64 Vested (59 ) 10.00 Forfeited or expired (82 ) 8.96 Phantom units outstanding at June 30, 2019 639 9.17 The Company recognized total stock compensation expense related to the FGL Incentive Plan and Management Incentive Plan is as follows: Three months ended Six months ended June 30, 2019 June 30, 2019 FGL Incentive Plan Stock options $ 1 $ 2 Restricted shares — — 1 2 Management Incentive Plan Phantom units 1 1 1 1 Total stock compensation expense 2 3 Related tax benefit — 1 Net stock compensation expense $ 2 $ 2 The stock compensation expense is included in "Acquisition and operating expenses, net of deferrals" in the unaudited Condensed Consolidated Statements of Operations. Total compensation expense related to the FGL Incentive Plan and Management Incentive Plan not yet recognized as of June 30, 2019 and the weighted-average period over which this expense will be recognized are as follows: Unrecognized Compensation Weighted Average Recognition FGL Incentive Plan Stock options $ 16 3 Restricted shares 1 1 17 Management Incentive Plan Phantom units 3 2 3 Total unrecognized stock compensation expense $ 20 3 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is a Cayman-domiciled corporation that has operations in Bermuda and the U.S. Neither the Cayman Islands nor Bermuda impose a corporate income tax. The Company’s U.S. non-life subsidiaries file a consolidated non-life U.S. Federal income tax return. The Company’s U.S. life insurance subsidiaries file a separate life consolidated U.S. Federal income tax return. The life insurance companies will be eligible to join in a consolidated filing with the U.S. non-life companies in 2022. The provision for income taxes represents federal income taxes. The effective tax rate for the three and six months ended June 30, 2019 was 22% and 9% , respectively. The effective tax rate for the three and six months ended June 30, 2018 was 25% and 33% , respectively. The effective tax rate on pre-tax income for the six months ended June 30, 2019 differs from the U.S Federal statutory rate for 2019 of 21% primarily due to three factors. First, in 2018, a partial valuation allowance was established against the U.S. Life companies' unrealized loss deferred tax assets because there were not sufficient sources of income to recover those assets. During the first quarter of 2019, the unrealized loss position recovered enough that the valuation allowance was no longer needed and it was released. Secondly, the Company had substantial income in jurisdictions that do not impose an income tax. Thirdly, FSRC had significant income for the period which resulted in a valuation allowance release related to the current period income as FSRC had a full valuation allowance on its deferred tax assets. The effective tax rate on pre-tax income for the three months ended June 30, 2019 differs from the U.S. Federal statutory rate for 2019 of 21% primarily due to losses with no corresponding tax benefit because they were incurred in jurisdictions that do not impose an income tax or withholding tax, partially offset by a change in the valuation allowance. The effective tax rate on pre-tax income for the six months ended June 30, 2018 differed from the U.S. Federal statutory rate for 2018 of 21% primarily due to the impact of an intended tax election. During the first quarter of 2018, there was uncertainty surrounding the impact of the Base-Erosion and Anti-Abuse Tax ("BEAT") that was enacted as part of the Tax Cut and Jobs Act and how it would impact the reinsurance agreement between F&G Life Re and FGL Insurance. As a result of the uncertainty, F&G Life Re intended to make an election under IRC Code Section 953(d) for the 2018 tax year to be treated as if it were a U.S. taxpayer for the year. As such, an opening balance sheet deferred tax liability was set up resulting in a discrete expense being recorded in the first quarter of 2018 that increased the first quarter effective rate. Based on clarifying guidance, the Company ultimately decided not to make that election in the fourth quarter of 2018. The effective tax rate on pre-tax income for the three months ended June 30, 2018 differed from the U.S. Federal statutory rate for 2018 of 21% primarily due to the negative impact of losses in zero tax jurisdictions and a valuation allowance placed against a portion of the income tax benefit associated with unrealized losses recorded in the income statement. As of June 30, 2019 , the Company had a partial valuation allowance of $30 against its gross deferred tax assets of $180 . The valuation allowance is an offset to the non-life companies deferred tax assets and FSRC deferred tax assets. The non-life insurance company subsidiaries have a history of losses and insufficient sources of future income that would allow for recognition of any of their deferred tax assets. FSRC is in a cumulative loss position and does not have a sufficient track record of earnings to recognize any portion of its deferred tax assets. The valuation allowance is reviewed quarterly and will be maintained until there is sufficient positive evidence to support a release. At each reporting date, management considers new evidence, both positive and negative, that could impact the future realization of deferred tax assets. Management will consider a release of the valuation allowance once there is sufficient positive evidence that it is more likely than not that the deferred tax assets will be realized. Any release of the valuation allowance will be recorded as a tax benefit increasing net income or other comprehensive income. All other deferred tax assets are more likely than not to be realized based on expectations as to our future taxable income and considering all other available evidence, both positive and negative. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has unfunded investment commitments as of June 30, 2019 based upon the timing of when investments are executed compared to when the actual investments are funded, as some investments require that funding occur over a period of months or years. A summary of unfunded commitments by invested asset class are included below: June 30, 2019 Asset Type Other invested assets $ 1,066 Equity securities 18 Fixed maturity securities, available-for-sale 21 Other assets 3 Total $ 1,108 As of June 30, 2019 , the Company had unfunded commitments in affiliated investments which are included in the table above. See "Note 14. Related Party Transactions" for further information. Lease Commitments The Company leases office space under non-cancelable operating leases that expire in May 2021. Rent expense and minimum rental commitments under non-cancelable leases are immaterial. Contingencies Regulatory and Litigation Matters The Company is involved in various pending or threatened legal proceedings, including purported class actions, arising in the ordinary course of business. In some instances, these proceedings include claims for unspecified or substantial punitive damages and similar types of relief in addition to amounts for alleged contractual liability or requests for equitable relief. In the opinion of the Company's management and in light of existing insurance and other potential indemnification, reinsurance and established accruals, such litigation is not expected to have a material adverse effect on the Company's financial position, although it is possible that the results of operations and cash flows could be materially affected by an unfavorable outcome in any one period. The Company is assessed amounts by state guaranty funds to cover losses to policyholders of insolvent or rehabilitated insurance companies. Those mandatory assessments may be partially recovered through a reduction in future premium taxes in certain states. At June 30, 2019 , the Company has accrued $ 2 for guaranty fund assessments that is expected to be offset by estimated future premium tax deductions of $ 2 . The Company has received inquiries from a number of state regulatory authorities regarding our use of the U.S. Social Security Administration’s Death Master File (“Death Master File”) and compliance with state claims practices regulations and unclaimed property or escheatment laws. We have established procedures to periodically compare our in-force life insurance and annuity policies against the Death Master File or similar databases; investigate any identified potential matches to confirm the death of the insured; and determine whether benefits are due and attempt to locate the beneficiaries of any benefits due or, if no beneficiary can be located, escheat the benefit to the state as unclaimed property. We believe we have established sufficient reserves with respect to these matters; however, it is possible that third parties could dispute these amounts and additional payments or additional unreported claims or liabilities could be identified which could be significant and could have a material adverse effect on our results of operations. On June 30, 2017, a putative class action complaint was filed against FGL Insurance, FGL, and FS Holdco II Ltd in the United States District Court for the District of Maryland, captioned Brokerage Insurance Partners v. Fidelity & Guaranty Life Insurance Company, Fidelity & Guaranty Life, FS Holdco II Ltd, and John Doe, No. 17-cv-1815. The complaint alleges that FGL Insurance breached the terms of its agency agreement with Brokerage Insurance Partners (“BIP”) and other agents by changing certain compensation terms. The complaint asserts, among other causes of action, breach of contract, defamation, tortious interference with contract, negligent misrepresentation, and violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO”). The complaint seeks to certify a class composed of all persons who entered into an agreement with FGL Insurance to sell life insurance and who sold at least one life insurance policy between January 1, 2015 and January 1, 2017. The complaint seeks unspecified compensatory, consequential, and punitive damages in an amount not presently determinable, among other forms of relief. On September 1, 2017, FGL Insurance filed a counterclaim against BIP and John and Jane Does 1-10, asserting, among other causes of action, breach of contract, fraud, civil conspiracy and violations of RICO. On September 22, 2017, Plaintiff filed an Amended Complaint, and on October 16, 2017, FGL Insurance filed an Amended Counterclaim against BIP, Agent Does 1-10, and Other Person Does 1-10. The parties also filed cross-Motions to Dismiss in Part. On August 17, 2018, the Court in the BIP Litigation denied all pending Motions to Dismiss filed by all parties without prejudice, pending a decision as to whether the BIP Litigation will be consolidated into related litigation, captioned Fidelity & Guaranty Life Insurance Company v. Network Partners, et al., Case No. 17-cv-1508. On August 31, 2018, FGL Insurance filed its Answer to BIP’s Amended Complaint. Also on that date, FGL Insurance filed its Answer to Amended Complaint, Affirmative Defenses, and Counterclaim, Filed Pursuant to Fed. R. Civ. P. 12(a)(4)(A). As of June 30, 2019 , BIP has not filed any paper or pleading in response to the Court’s August 17, 2018 Order or to FGL Insurance’s filing. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company reinsures portions of its policy risks with other insurance companies. The use of indemnity reinsurance does not discharge an insurer from liability on the insurance ceded. The insurer is required to pay in full the amount of its insurance liability regardless of whether it is entitled to or able to receive payment from the reinsurer. The portion of risks exceeding the Company's retention limit is reinsured. The Company primarily seeks reinsurance coverage in order to limit its exposure to mortality losses and enhance capital management. The Company follows reinsurance accounting when there is adequate risk transfer. Otherwise, the deposit method of accounting is followed. The Company also assumes policy risks from other insurance companies. The effect of reinsurance on net premiums earned and net benefits incurred (benefits incurred and reserve changes) for the three and six months ended June 30, 2019 and 2018 were as follows: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Direct 51 359 58 276 108 731 118 317 Assumed — (39 ) — (5 ) — (19 ) — (26 ) Ceded (43 ) (52 ) (43 ) (54 ) (84 ) (105 ) (85 ) (113 ) Net 8 268 15 217 24 607 33 178 Amounts payable or recoverable for reinsurance on paid and unpaid claims are not subject to periodic or maximum limits. The Company did not write off any significant reinsurance balances during the six months ended June 30, 2019 and 2018 . The Company did not commute any ceded reinsurance treaties during the six months ended June 30, 2019 or 2018 . No policies issued by the Company have been reinsured with any foreign company, which is controlled, either directly or indirectly, by a party not primarily engaged in the business of insurance. The Company has not entered into any reinsurance agreements in which the reinsurer may unilaterally cancel any reinsurance for reasons other than non-payment of premiums or other similar credit issues. Effective January 1, 2017, FGL Insurance entered into an indemnity reinsurance agreement with Hannover Re, a third party reinsurer, to reinsure an inforce block of its FIA and fixed deferred annuity contracts with GMWB and Guaranteed Minimum Death Benefit (“GMDB”) guarantees. In accordance with the terms of this agreement, FGL Insurance cedes a quota share percentage of the net retention of guarantee payments in excess of account value for GMWB and GMDB guarantees. The effects of this agreement are not accounted for as reinsurance as it does not satisfy the risk transfer requirements for GAAP, since it is not “reasonably possible” that the reinsurer may realize significant loss from assuming the insurance risk. Effective July 1, 2017, FGL Insurance extended this agreement to include new business issued during 2017. Effective January 1, 2018 FGL Insurance extended this agreement to include new business issued during 2018, and extended the recapture period from 8 to 12 years. Effective January 1, 2019, FGL Insurance extended this agreement to include new business issued during 2019. FGL Insurance incurred risk charge fees of $4 and $4 during the three and six months ended June 30, 2019 , in relation to this reinsurance agreement. Effective December 31, 2018, FGL Insurance entered into a reinsurance agreement with Kubera to cede approximately $758 of certain MYGA and deferred annuity GAAP reserve on a coinsurance funds withheld basis, net of applicable existing reinsurance. In accordance with the terms of this agreement, FGL Insurance cedes a 40% , 45% , and 63% quota share percentage of these annuity plans for issue years 2013, 2001 through 2012, and 2000 and prior, respectively. Effective June 30, 2019, FGL Insurance and Kubera executed a letter of intent to amend this agreement and cede an additional $185 of certain MYGA GAAP reserve on a coinsurance funds withheld basis. The amended reinsurance agreement was executed on July 31, 2019. Effective December 31, 2018, FGL Insurance entered into a reinsurance agreement with Kubera to cede approximately $4 billion of certain FIA statutory reserve on a coinsurance funds withheld basis, net of applicable existing reinsurance. In accordance with the terms of this agreement, FGL Insurance cedes an 80% and 90% quota share percentage of these annuity plans for issue years 2013 through 2014, and 2007 and prior, respectively. The effects of this agreement are not accounted for as reinsurance as it does not satisfy the risk transfer requirements for GAAP, since it is not “reasonably possible” that the reinsurer may realize significant loss from assuming the insurance risk. Effective June 30, 2019, FGL Insurance and Kubera executed a letter of intent to amend this agreement and cede an additional $1 billion of certain FIA statutory reserve on a coinsurance funds withheld basis. The amended reinsurance agreement was executed on July 31, 2019. The effects of the amendment are also not accounted for as reinsurance as it does not satisfy the risk transfer requirements for GAAP. F&G Reinsurance Companies FSRC has entered into various reinsurance agreements on a funds withheld basis, meaning that funds are withheld by the ceding company from the coinsurance premium owed to FSRC as collateral for FSRC's payment obligations. Accordingly, the collateral assets remain under the ultimate ownership of the ceding company. FSRC manages the assets supporting the reserves assumed in accordance with the internal investment policy of the ceding companies and applicable law. At June 30, 2019 , FSRC had $307 of funds withheld receivables and $278 of insurance reserves related to these reinsurance treaties. F&G Re has entered into multiple reinsurance agreements on a funds withheld basis with unaffiliated parties. Effective April 1, 2019, F&G Re entered into a reinsurance agreement with an unaffiliated company to reinsure an inforce block of fixed deferred annuity contracts on a 100% coinsurance funds withheld basis. In accordance with the terms of this agreement, F&G Re established a fair value of funds withheld asset and future policy benefits liability of $983 and $896 , respectively. At June 30, 2019 , F&G Re had $1,615 of funds withheld receivables and $1,509 of insurance reserves related to these reinsurance treaties. See a description of FSRC’s and F&G Re's accounting policy for its assumed reinsurance contracts in "Note 2. Significant Accounting Policies and Practices" within the Company's 2018 Form 10-K. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Affiliated Investments The Company, and certain subsidiaries of the Company, entered into investment management agreements with Blackstone ISG-I Advisors LLC ("BISGA"), a wholly-owned subsidiary of The Blackstone Group LP ("Blackstone") on December 1, 2017. Pursuant to the terms of the investment management agreements, BISGA may delegate certain of its investment management services to sub-managers and any fees or other remuneration payable to such sub-managers is payable by the Company out of the assets managed by such sub-managers. BISGA has delegated certain investment management services to its affiliates, Blackstone Real Estate Special Situations Advisors L.L.C. (“BRESSA”) and GSO Capital Advisors II LLC (“GSO Capital Advisors II”), pursuant to sub-management agreements executed between BISGA and each of BRESSA and GSO Capital Advisors. As of June 30, 2019 and December 31, 2018 , the Company has a net liability of $24 and $20 , respectively, for the services consumed under the investment management agreements and related sub-management agreements, partially offset by fees received and expense reimbursements from BISGA. During the three and six months ended June 30, 2019 , the Company received expense reimbursements from BISGA for the services consumed under these agreements. Fees received for these types of services are $3 and $5 for the three and six months ended June 30, 2019 . The Company holds certain fixed income security interests, limited partnerships and bank loans issued by portfolio companies that are affiliates of Blackstone Tactical Opportunities, an affiliate of Blackstone Tactical Opportunities LR Associates-B (Cayman) Ltd (the “Blackstone Fixed Income Securities”) both on a direct and indirect basis. Indirect investments include an investment made in an affiliates’ asset backed fund while direct investments are an investment in affiliates' equity or debt securities. As of June 30, 2019 and December 31, 2018 , the Company held $1,937 and $1,461 in affiliated investments, respectively, which includes foreign exchange unrealized loss of $ (2) and $ (2) , respectively. As of June 30, 2019 and December 31, 2018 , the Company had unfunded commitments relating to affiliated investments of $906 and $990 , respectively. The Company purchased $101 and $185 of residential loans from Finance of America Holdings LLC, a Blackstone affiliate, during the six months ended June 30, 2019 and on December 17, 2018, respectively. On December 1, 2017, the Company executed an agreement with Blackstone Tactical Opportunities Advisors LLC ("BTO Advisors") and Fidelity National Financial, Inc. ("FNF"), to provide the Company transactional and operational services and advice through December 31, 2018. The agreement was amended on November 2, 2018 to provide services through June 30, 2019. As of June 30, 2019 , no such services have been provided. The Company paid-in-kind dividends on preferred shares held by GSO Capital Partners, an indirect wholly owned subsidiary of The Blackstone Group LP, of 6 thousand shares and 12 thousand shares for the three and six months ended June 30, 2019 , respectively. The Company had no gross realized gains or realized impairment losses on related party investments during the three and six months ended June 30, 2019 and 2018 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (share amounts in thousands): Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net income (loss) $ 46 $ 40 $ 217 $ 105 Less Preferred stock dividend 8 7 16 14 Net income (loss) available to common shares 38 33 201 91 Weighted-average common shares outstanding - basic 217,185 214,370 218,483 214,370 Dilutive effect of unvested restricted stock 71 9 54 6 Dilutive effect of stock options 6 — — — Weighted-average shares outstanding - diluted 217,262 214,379 218,537 214,376 Net income (loss) per common share: Basic $ 0.17 $ 0.15 $ 0.92 $ 0.42 Diluted $ 0.17 $ 0.15 $ 0.92 $ 0.42 The number of shares of common stock outstanding used in calculating the weighted average thereof reflects the actual number of FGL Holdings shares of common stock outstanding, excluding unvested restricted stock and shares held in treasury. The calculation of diluted earnings per share for the three and six months ended June 30, 2019 excludes the incremental effect of 6 million weighted average common stock warrants outstanding due to their anti-dilutive effect. This calculation also excludes the potential dilutive effect of the 414 thousand preferred stock shares outstanding as of June 30, 2019 as the contingency that would allow for the preferred shares to be converted to common shares has not yet been met. The calculation of diluted earnings per share for the three and six months ended June 30, 2019 excludes the incremental effect related to certain outstanding stock options due to their anti-dilutive effect. The number of weighted average equivalent shares excluded is 1,674 thousand and 1,612 thousand shares for the three and six months ended June 30, 2019 . The calculation of diluted earnings per share for the three and six months ended June 30, 2018 excludes the potential dilutive effective of the 71 million weighted average common stock warrants outstanding due to their anti-dilutive effect. This calculation also excludes the potential dilutive effect of the 384 thousand preferred stock shares outstanding as of June 30, 2018 as the contingency that would allow for the preferred shares to be converted to common shares has not yet been met. The calculation of diluted earnings per share for the three and six months ended June 30, 2018 excludes the incremental effect related to certain outstanding stock options due to their anti-dilutive effect. The number of weighted average equivalent shares excluded is 680 thousand and 292 thousand shares for the three and six months ended June 30, 2018 |
Insurance Subsidiary Financial
Insurance Subsidiary Financial Information and Regulatory Matters | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Insurance Subsidiary Financial Information and Regulatory Matters | Insurance Subsidiary Financial Information and Regulatory Matters The Company’s U.S. insurance subsidiaries file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners (“NAIC”) that are prepared in accordance with Statutory Accounting Principles (“SAP”) prescribed or permitted by such authorities, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the NAIC as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between SAP financial statements and financial statements prepared in accordance with GAAP are that SAP financial statements do not reflect DAC, DSI and VOBA, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contractholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. Accordingly, SAP operating results and SAP capital and surplus may differ substantially from amounts reported in the GAAP basis financial statements for comparable items. FSRC (Cayman), F&G Re (Bermuda), and F&G Life Re (Bermuda) file financial statements with their respective regulators that are based on U.S. GAAP. Effective April 1, 2019, Raven Re and FGL Insurance executed the third amended and restated Reinsurance Agreement (the "CARVM treaty"). The amendment allowed Raven Re to declare and pay a one-time dividend of up to $30 to FGL Insurance provided that the dividend was paid on or before June 30, 2020 and subject to other provisions outlined in the amendment. The Vermont Department of Financial Regulation approved the amendment on April 15, 2019. Pursuant to the provisions of the amended CARVM treaty, Raven Re paid a $20 dividend to FGL Insurance in June 2019. FGL Insurance applies Iowa-prescribed accounting practices that permit Iowa-domiciled insurers to report equity call options used to economically hedge FIA index credits at amortized cost for statutory accounting purposes and to calculate FIA statutory reserves such that index credit returns will be included in the reserve only after crediting to the annuity contract. This resulted in a $ 77 decrease and $30 increase to statutory capital and surplus at June 30, 2019 and December 31, 2018 , respectively. FGL Insurance’s statutory carrying value of Raven Re reflects the effect of permitted practices Raven Re received to treat the available amount of a letter of credit as an admitted asset which increased Raven Re’s statutory capital and surplus by $ 100 and $110 at June 30, 2019 and December 31, 2018 , respectively. Raven Re is also permitted to follow Iowa prescribed statutory accounting practice for its reserves on reinsurance assumed from FGL Insurance which increased Raven Re’s statutory capital and surplus by $ 2 and $0 at June 30, 2019 and December 31, 2018 , respectively. Without such permitted statutory accounting practices Raven Re’s statutory capital and surplus (deficit) would be $ (22) and $(16) as of June 30, 2019 and December 31, 2018 , respectively, and its risk-based capital would fall below the minimum regulatory requirements. The letter of credit facility is collateralized by NAIC 1 rated debt securities. If the permitted practice was revoked, the letter of credit could be replaced by the collateral assets with Nomura’s consent. FGL Insurance’s statutory carrying value of Raven Re at June 30, 2019 and December 31, 2018 was $ 81 and $94 , respectively. As of June 30, 2019 , FGL NY Insurance did not follow any prescribed or permitted statutory accounting practices that differ from the NAIC's statutory accounting practices. |
Significant Accounting Polici_2
Significant Accounting Policies and Practices (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest and any variable interest entities ("VIEs") in which we are the primary beneficiary. All intercompany accounts and transactions have been eliminated in consolidation. |
VIE | We are involved in certain entities that are considered VIEs as defined under GAAP. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our relationships to determine if we have the ability to direct the activities, or otherwise exert control, to evaluate if we are the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our unaudited condensed consolidated financial statements . The Company has determined that we are not the primary beneficiary of any VIEs as of June 30, 2019 . See "Note 4. Investments" to the Company’s unaudited condensed consolidated financial statements for additional information on the Company’s investments in unconsolidated VIEs. |
Significant Accounting Policies and Practices | Adoption of New Accounting Pronouncements Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued new guidance on the amortization of callable securities (ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities) , effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The ASU requires premiums paid on purchased debt securities with an explicit call option to be amortized to the earliest call date, as opposed to the maturity date (as under current GAAP). The updated guidance is applicable to instruments that are callable based on explicit, non-contingent call features that are callable at fixed prices on preset dates. The amendments in this update were to be applied using the modified retrospective method through a cumulative effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted this new accounting guidance effective January 1, 2019, as required, and it had an immaterial impact on its unaudited condensed consolidated financial statements. Amendments to Lease Accounting In February 2016, the FASB issued amended guidance (ASU 2016-02, Leases (Topic 842) ), effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Notable amendments in this update will: • require entities to recognize the rights and obligations resulting from all leases or lease components of contracts, including operating leases, as lease assets and lease liabilities, with an exception allowed for leases with a term of 12 months or less • create a distinction between finance leases and operating leases, with classification criteria substantially similar to that for distinguishing between capital leases and operating leases under previous guidance • not retain the accounting model for leveraged leases under previous guidance for leases that commence after the effective date of ASU 2016-02 • provide additional guidance on separating the lease components from the nonlease components of a contract • require qualitative disclosures along with specific quantitative disclosures to provide information regarding the amount, timing, and uncertainty of cash flows arising from leases • include modifications to align lessor accounting with the changes to lessee accounting, as well as changes to the requirements of recognizing a transaction as a sale and leaseback transaction, however, these changes will have no impact on the Company's current lease arrangements The amendments were required to be applied at the beginning of the earliest period presented using a modified retrospective approach (including several optional practical expedients related to leases commenced before the effective date). The Company adopted this standard effective January 1, 2019, as required, and it had an immaterial impact on its unaudited condensed consolidated financial statements. Future Accounting Pronouncements Accounting pronouncements that will impact the Company in future periods have been disclosed in the Company’s 2018 Form 10-K. There have not been any additional accounting pronouncements issued during the quarter ended June 30, 2019 that are expected to impact the Company. The following two pronouncements were discussed in the Company's 2018 Form 10-K but have been included below so as to provide an update on the Company’s status of adoption. New Credit Loss Standard In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments , effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Since its release, certain targeted improvements and transition relief amendments have been made to ASU 2016-13 and have been published in ASU 2018-19, ASU 2019-04 and ASU 2019-05. Collectively, these ASUs will change the accounting for impairment of most financial assets and certain other instruments in the following ways: • financial assets (or a group of financial assets) measured at amortized cost will be required to be presented at the net amount expected to be collected, with an allowance for credit losses deducted from the amortized cost basis, resulting in a net carrying value that reflects the amount the entity expects to collect on the financial asset • credit losses relating to AFS fixed maturity securities will be recorded through an allowance for credit losses, rather than reductions in the amortized cost of the securities. The allowance methodology recognizes that value may be realized either through collection of contractual cash flows or through the sale of the security. Therefore, the amount of the allowance for credit losses will be limited to the amount by which fair value is below amortized cost because the classification as available for sale is premised on an investment strategy that recognizes that the investment could be sold at fair value, if cash collection would result in the realization of an amount less than fair value • the income statement will reflect the measurement of expected credit losses for newly recognized financial assets as well as the expected increases or decreases (including the reversal of previously recognized losses) of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount • disclosures will be required to include information around how the credit loss allowance was developed, further details on information currently disclosed about credit quality of financing receivables and net investments in leases, and a rollforward of the allowance for credit losses for AFS fixed maturity securities as well as an aging analysis for securities that are past due The amendments in this ASU may be early adopted during any interim or annual period beginning after December 15, 2018, however the Company has elected not to. The Company continues to evaluate the impact of the new guidance on its consolidated financial statements. The Company has identified the material asset classes (i.e., available for sale securities, mortgage loans, reinsurance receivables, other miscellaneous receivables) impacted by the new guidance and is in the process of assessing the accounting, reporting and/or process changes that will be required to comply with the new guidance. The Company continues to progress in its project plan to adopt this standard and expects to finalize related accounting policies and procedures as well as select a vendor to assist in the estimation of credit losses for its commercial and residential mortgage loan portfolio in the coming quarter. Long-Duration Contracts In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts , effective for fiscal years beginning after December 15, 2020 including interim periods within those fiscal years. Under this update: • assumptions used to measure cash flows for traditional and limited-payment contracts must be reviewed at least annually with the effect of changes in those assumptions being recognized in the statement of operations • the discount rate applied to measure the liability for future policy benefits and limited-payment contracts must be updated at each reporting date with the effect of changes in the rate being recognized in other comprehensive income • market risk benefits associated with deposit contracts must be measured at fair value, with the effect of the change in the fair value attributable to a change in the instrument-specific credit risk being recognized in other comprehensive income • deferred acquisition costs are required to be amortized in proportion to premiums, gross profits, or gross margins and those balances must be amortized on a constant level basis over the expected term of the related contracts • deferred acquisition costs must be written off for unexpected contract terminations • disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions, and methods used in measurement are required to be disclosed The amendments in this ASU may be early adopted as of the beginning of an annual reporting period for which financial statements have not yet been issued, including interim financial statements. The Company does not currently expect to early adopt this standard. The Company has identified specific areas that will be impacted by the new guidance and is in the process of assessing the accounting, reporting and/or process changes that will be required to comply as well as the impact of the new guidance on its consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Consolidated Investments | The Company's equity securities investments are carried at fair value with unrealized gains and losses included in net income. The Company’s consolidated investments at June 30, 2019 and December 31, 2018 are summarized as follows: June 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 5,519 $ 52 $ (64 ) $ 5,507 $ 5,507 Commercial mortgage-backed securities 2,744 133 (3 ) 2,874 2,874 Corporates 11,235 315 (128 ) 11,422 11,422 Hybrids 1,023 20 (12 ) 1,031 1,031 Municipals 1,251 51 (4 ) 1,298 1,298 Residential mortgage-backed securities 1,001 43 (3 ) 1,041 1,041 U.S. Government 41 — — 41 41 Foreign Governments 140 8 — 148 148 Total available-for-sale securities 22,954 622 (214 ) 23,362 23,362 Equity securities 1,174 6 (36 ) 1,144 1,144 Derivative investments 324 117 (58 ) 383 383 Commercial mortgage loans 476 — — 490 476 Residential mortgage loans 284 — — 289 284 Other invested assets 1,032 — (2 ) 1,020 1,030 Total investments $ 26,244 $ 745 $ (310 ) $ 26,688 $ 26,679 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 4,954 $ 15 $ (137 ) $ 4,832 $ 4,832 Commercial mortgage-backed securities 2,568 9 (40 ) 2,537 2,537 Corporates 11,213 16 (848 ) 10,381 10,381 Hybrids 992 — (91 ) 901 901 Municipals 1,216 3 (32 ) 1,187 1,187 Residential mortgage-backed securities 1,027 12 (8 ) 1,031 1,031 U.S. Government 120 — (1 ) 119 119 Foreign Governments 129 — (8 ) 121 121 Total available-for-sale securities 22,219 55 (1,165 ) 21,109 21,109 Equity securities 1,526 1 (145 ) 1,382 1,382 Derivative investments 330 2 (235 ) 97 97 Commercial mortgage loans 482 — — 483 482 Residential mortgage loans 185 — — 187 185 Other invested assets 662 — — 651 662 Total investments $ 25,404 $ 58 $ (1,545 ) $ 23,909 $ 23,917 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and fair value of fixed maturity available-for-sale securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. June 30, 2019 Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and Government securities: Due in one year or less $ 160 $ 160 Due after one year through five years 752 753 Due after five years through ten years 1,989 2,016 Due after ten years 10,789 11,011 Subtotal 13,690 13,940 Other securities which provide for periodic payments: Asset-backed securities 5,519 5,507 Commercial mortgage-backed securities 2,744 2,874 Residential mortgage-backed securities 1,001 1,041 Subtotal 9,264 9,422 Total fixed maturity available-for-sale securities $ 22,954 $ 23,362 |
Fair Value and Gross Unrealized Losses of Available-for-Sale-Securities | The fair value and gross unrealized losses of available-for-sale securities, aggregated by investment category and duration of fair value below amortized cost, were as follows: June 30, 2019 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale securities Asset-backed securities $ 2,293 $ (45 ) $ 809 $ (19 ) $ 3,102 $ (64 ) Commercial mortgage-backed securities 137 (2 ) 33 (1 ) 170 (3 ) Corporates 203 (7 ) 2,714 (121 ) 2,917 (128 ) Hybrids 104 (6 ) 193 (6 ) 297 (12 ) Municipals 22 — 125 (4 ) 147 (4 ) Residential mortgage-backed securities 41 (1 ) 136 (2 ) 177 (3 ) U.S. Government — — 11 — 11 — Foreign Government — — 17 — 17 — Total available-for-sale securities $ 2,800 $ (61 ) $ 4,038 $ (153 ) $ 6,838 $ (214 ) Total number of available-for-sale securities in an unrealized loss position less than twelve months 356 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 533 Total number of available-for-sale securities in an unrealized loss position 889 December 31, 2018 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale securities Asset-backed securities $ 2,924 $ (116 ) $ 643 $ (21 ) $ 3,567 $ (137 ) Commercial mortgage-backed securities 1,466 (34 ) 262 (6 ) 1,728 (40 ) Corporates 8,016 (772 ) 1,465 (76 ) 9,481 (848 ) Hybrids 858 (90 ) 7 (1 ) 865 (91 ) Municipals 850 (27 ) 172 (5 ) 1,022 (32 ) Residential mortgage-backed securities 139 (3 ) 190 (5 ) 329 (8 ) U.S. Government 69 — 50 (1 ) 119 (1 ) Foreign Government 47 (3 ) 68 (5 ) 115 (8 ) Total available-for-sale securities $ 14,369 $ (1,045 ) $ 2,857 $ (120 ) $ 17,226 $ (1,165 ) Total number of available-for-sale securities in an unrealized loss position less than twelve months 1,551 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 556 Total number of available-for-sale securities in an unrealized loss position 2,107 |
Reconciliation of Other-than-Temporary Impairment on Fixed Maturity | The following table breaks out the credit impairment loss type, the associated amortized cost and fair value of the investments at the balance sheet date and non-credit losses in relation to fixed maturity securities and other invested assets held by the Company for the three and six months ended June 30, 2019 and 2018 : Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Credit impairment losses in operations $ (3 ) $ — $ (5 ) $ (2 ) Change-of-intent losses in operations — — — — Amortized cost 5 — 6 — Fair value 5 — 6 — Non-credit losses in other comprehensive income for investments which experienced OTTI — — — — Details of OTTI that were recognized in "Net income (loss)" and included in net realized gains on securities were as follows: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Corporates (3 ) — (5 ) (2 ) Total $ (3 ) $ — $ (5 ) $ (2 ) The following table provides a reconciliation of the beginning and ending balances of the credit loss portion of OTTI on fixed maturity available-for-sale securities held by the Company for the three and six months ended June 30, 2019 and 2018 , for which a portion of the OTTI was recognized in AOCI: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Beginning balance $ — $ — $ — $ — Increases attributable to credit losses on securities: OTTI was previously recognized — — — — OTTI was not previously recognized — — — — Ending balance $ — $ — $ — $ — |
Schedule of Accounts, Notes, Loans and Financing Receivable | The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables: June 30, 2019 December 31, 2018 Gross Carrying Value % of Total Gross Carrying Value % of Total Property Type: Hotel 21 4 % 21 4 % Industrial - General 37 8 % 37 8 % Industrial - Warehouse 20 4 % 20 4 % Multifamily 55 11 % 56 12 % Office 145 31 % 147 30 % Retail 198 42 % 201 42 % Total commercial mortgage loans, gross of valuation allowance $ 476 100 % $ 482 100 % Allowance for loan loss — — Total commercial mortgage loans $ 476 $ 482 U.S. Region: East North Central $ 97 20 % $ 98 20 % East South Central 19 4 % 19 4 % Middle Atlantic 78 16 % 79 17 % Mountain 64 14 % 65 13 % New England 10 2 % 10 2 % Pacific 114 24 % 116 24 % South Atlantic 56 12 % 57 12 % West North Central 13 3 % 13 3 % West South Central 25 5 % 25 5 % Total commercial mortgage loans, gross of valuation allowance $ 476 100 % $ 482 100 % Allowance for loan loss — — Total commercial mortgage loans $ 476 $ 482 |
Schedule of Investment in Mortgage Loans by Loan to Value and Debt Service Coverage Ratios | The following table presents the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios at June 30, 2019 and December 31, 2018 : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 June 30, 2019 LTV Ratios: Less than 50% $ 304 $ 6 $ 310 65 % $ 319 65 % 50% to 60% 155 — 155 33 % 160 33 % 60% to 75% 11 — 11 2 % 11 2 % Commercial mortgage loans $ 470 $ 6 $ 476 100 % $ 490 100 % December 31, 2018 LTV Ratios: Less than 50% $ 296 $ 6 $ 302 63 % $ 302 63 % 50% to 60% 169 — 169 35 % 170 35 % 60% to 75% 11 — 11 2 % 11 2 % Commercial mortgage loans $ 476 $ 6 $ 482 100 % $ 483 100 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The carrying amounts of derivative instruments, including derivative instruments embedded in FIA contracts, is as follows: June 30, 2019 December 31, 2018 Assets: Derivative investments: Call options $ 383 $ 97 Futures contracts — — Other invested assets: Other derivatives and embedded derivatives 18 14 $ 401 $ 111 Liabilities: Contractholder funds: FIA embedded derivative $ 2,934 $ 2,476 Other liabilities: Preferred shares reimbursement feature embedded derivative 24 29 $ 2,958 $ 2,505 |
FGL's Exposure to Credit Loss on Call Options Held | Information regarding the Company’s exposure to credit loss on the call options it holds is presented in the following table: June 30, 2019 Counterparty Credit Rating (Fitch/Moody's/S&P) (a) Notional Fair Value Collateral Net Credit Risk Merrill Lynch A+/*/A+ $ 2,934 $ 74 $ 29 $ 45 Deutsche Bank BBB/A3/BBB+ 1,019 14 13 1 Morgan Stanley */A1/A+ 1,508 22 23 (1 ) Barclay's Bank A+/A2/A 3,199 126 105 21 Canadian Imperial Bank of Commerce */Aa2/A+ 1,931 61 40 21 Wells Fargo A+/A2/A- 2,089 64 62 2 Goldman Sachs A/A3/BBB+ 1,350 22 21 1 Total $ 14,030 $ 383 $ 293 $ 90 December 31, 2018 Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch A+/*/A+ $ 3,952 $ 25 $ — $ 25 Deutsche Bank A-/A3/BBB+ 1,327 5 6 (1 ) Morgan Stanley */A1/A+ 1,648 9 6 3 Barclay's Bank A+/A2/A 2,205 27 20 7 Canadian Imperial Bank of Commerce */Aa2/A+ 1,716 11 8 3 Wells Fargo A+/A2/A- 1,635 17 16 1 Goldman Sachs A/A3/BBB+ 647 3 3 — Total $ 13,130 $ 97 $ 59 $ 38 (a) An * represents credit ratings that were not available. |
Derivative Instruments, Gain (Loss) [Table Text Block] | The change in fair value of derivative instruments included in the accompanying unaudited Condensed Consolidated Statements of Operations is as follows: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Revenues: Net investment gains (losses): Call options $ 64 $ 55 $ 218 $ (67 ) Futures contracts 6 2 14 — Foreign currency forward — — 2 — Other derivatives and embedded derivatives 1 — 4 — Reinsurance related embedded derivatives 45 (13 ) 42 (34 ) Total net investment gains (losses) $ 116 $ 44 $ 280 $ (101 ) Benefits and other changes in policy reserves: FIA embedded derivatives $ 214 $ 141 $ 458 $ 43 Acquisition and operating expenses, net of deferrals: Preferred shares reimbursement feature embedded derivative $ 3 $ — $ 5 $ (1 ) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Carrying at Fair Value on Recurring Basis | The carrying amounts and estimated fair values of the Company’s financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, related party loans, portions of other invested assets and debt which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows: June 30, 2019 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 772 $ — $ — $ 772 $ 772 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,771 736 5,507 5,507 Commercial mortgage-backed securities — 2,824 50 2,874 2,874 Corporates — 10,103 1,319 11,422 11,422 Hybrids 296 725 10 1,031 1,031 Municipals — 1,259 39 1,298 1,298 Residential mortgage-backed securities — 453 588 1,041 1,041 U.S. Government 41 — — 41 41 Foreign Governments — 131 17 148 148 Equity securities 413 672 3 1,088 1,088 Derivative investments — 383 — 383 383 Other invested assets — — 43 43 43 Funds withheld for reinsurance receivables, at fair value 574 1,330 — 1,904 1,904 Total financial assets at fair value $ 2,096 $ 22,651 $ 2,805 $ 27,552 $ 27,552 Liabilities Derivatives: FIA embedded derivatives, included in contractholder funds — — 2,934 2,934 2,934 Preferred shares reimbursement feature embedded derivative — — 24 24 24 Fair value of future policy benefits — — 1,787 1,787 1,787 Total financial liabilities at fair value $ — $ — $ 4,745 $ 4,745 $ 4,745 December 31, 2018 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 571 $ — $ — $ 571 $ 571 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,388 444 4,832 4,832 Commercial mortgage-backed securities — 2,470 67 2,537 2,537 Corporates — 9,150 1,231 10,381 10,381 Hybrids 265 626 10 901 901 Municipals — 1,150 37 1,187 1,187 Residential mortgage-backed securities — 417 614 1,031 1,031 U.S. Government 114 5 — 119 119 Foreign Governments — 105 16 121 121 Equity securities 454 874 4 1,332 1,332 Derivative investments — 97 — 97 97 Other invested assets — — 39 39 39 Funds withheld for reinsurance receivables, at fair value 169 576 4 749 749 Total financial assets at fair value $ 1,573 $ 19,858 $ 2,466 $ 23,897 $ 23,897 Liabilities Derivatives: FIA embedded derivatives, included in contractholder funds $ — $ — $ 2,476 $ 2,476 $ 2,476 Preferred shares reimbursement feature embedded derivative — — 29 29 29 Fair value of future policy benefits — — 725 725 725 Total financial liabilities at fair value $ — $ — $ 3,230 $ 3,230 $ 3,230 The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. June 30, 2019 Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 59 $ — $ 59 $ 59 Commercial mortgage loans — — 490 490 476 Residential mortgage loans — — 289 289 284 Policy loans, included in other invested assets — — 15 15 25 Affiliated other invested assets — — 28 28 28 Funds withheld for reinsurance receivables, at fair value — — 18 18 18 Total $ — $ 59 $ 840 $ 899 $ 890 Liabilities Investment contracts, included in contractholder funds — — 18,864 18,864 21,894 Debt — 547 — 547 542 Total $ — $ 547 $ 18,864 $ 19,411 $ 22,436 December 31, 2018 Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 52 $ — $ 52 $ 52 Commercial mortgage loans — — 483 483 482 Residential mortgage loans — — 187 187 185 Policy loans, included in other invested assets — — 11 11 22 Affiliated other invested assets — — 39 39 39 Funds withheld for reinsurance receivables, at fair value — — 8 8 8 Total $ — $ 52 $ 728 $ 780 $ 788 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 18,358 $ 18,358 $ 20,911 Debt — 520 — 520 541 Total $ — $ 520 $ 18,358 $ 18,878 $ 21,452 |
Schedule of Unobservable Inputs Used for Level Three Fair Value Measurements of Financial Instruments on Recurring Basis | Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of June 30, 2019 and December 31, 2018 , are as follows: Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) June 30, 2019 June 30, 2019 Assets Asset-backed securities $ 711 Broker-quoted Offered quotes 89.87% - 106.58% (100.79%) Asset-backed securities 25 Third-Party Valuation Offered quotes 0.00% - 99.33% (34.08%) Commercial mortgage-backed securities 24 Broker-quoted Offered quotes 84.00% - 100.15% (87.98%) Commercial mortgage-backed securities 26 Matrix Pricing Quoted prices 126.19% - 126.19% (126.19%) Corporates 1,181 Broker-quoted Offered quotes 80.47% - 119.21% (102.29%) Corporates 138 Matrix Pricing Quoted prices 101.67% - 106.04% (103.41%) Hybrids 10 Broker-quoted Offered quotes 101.95% - 101.95% (101.95%) Municipals 39 Broker-quoted Offered quotes 118.57% - 118.57% (118.57%) Residential mortgage-backed securities 588 Broker-quoted Offered quotes 93.86% - 106.45% (106.07%) Foreign governments 17 Broker-quoted Offered quotes 103.01% - 106.03% (103.95%) Equity securities (Salus preferred equity) 3 Income-Approach Yield 4.42% Other Invested Assets: Available-for-sale embedded derivative (AnchorPath) 18 Black Scholes model Market value of AnchorPath fund 100.00% Credit Linked Note 25 Broker-quoted Offered quotes 100.00% Total financial assets at fair value $ 2,805 Liabilities Future policy benefits $ 1,787 Discounted cash flow Market value of option 0.00% - 7.51% (1.48%) Mortality multiplier 80.00% - 100.00% (90.14%) Surrender rates 0.00% - 55.00% (20.93%) Partial withdrawals 0.00% - 4.00% (1.43%) Non-performance spread 0.00% - 0.10% (0.08%) Option cost 0.00% - 4.58% (0.98%) Risk margin to reflect uncertainty 0.26% - 0.62% (0.32%) Morbidity risk margin 0.00% - 2.00% (0.08%) Derivatives: FIA embedded derivatives included in contractholder funds 2,934 Discounted cash flow Market value of option 0.00% - 31.74% (2.60%) SWAP rates 1.75% - 1.96% (1.85%) Mortality multiplier 80.00% - 80.00% (80.00%) Surrender rates 0.50% - 75.00% (5.84%) Partial withdrawals 1.00% - 2.50% (2.00%) Non-performance spread 0.25% - 0.25% (0.25%) Option cost 0.18% - 16.61% (2.16%) Preferred shares reimbursement feature embedded derivative 24 Black Derman Toy model Credit Spread 4.10% Yield Volatility 20.00% Total financial liabilities at fair value $ 4,745 Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2018 December 31, 2018 Assets Asset-backed securities $ 405 Broker-quoted Offered quotes 97.00% - 102.00% (99.77%) Asset-backed securities 24 Matrix Pricing Quoted prices 96.07% - 96.07% (96.07%) Asset-backed securities 15 Third-Party Valuation Offered quotes 0.00% - 99.29% (23.05%) Commercial mortgage-backed securities 43 Broker-quoted Offered quotes 77.12% - 100.08% (85.46%) Commercial mortgage-backed securities 24 Matrix Pricing Quoted prices 117.72% - 117.72% (117.72%) Corporates 577 Broker-quoted Offered quotes 74.63% - 104.62% (97.80%) Corporates 654 Matrix Pricing Quoted prices 91.74% - 113.25% (98.86%) Hybrids 10 Matrix Pricing Quoted prices 96.60% - 96.60% (96.60%) Municipals 37 Broker-quoted Offered quotes 111.23% - 111.23% (111.23%) Residential mortgage-backed securities 614 Broker-quoted Offered quotes 89.80% - 100.99% (100.73%) Foreign governments 16 Broker-quoted Offered quotes 98.38% - 99.01% (98.58%) Equity securities (Salus preferred equity) 4 Income-Approach Yield 7.15% Other Invested Assets: Available-for-sale embedded derivative (AnchorPath) 14 Black Scholes model Market value of AnchorPath fund 100.00% Credit Linked Note 25 Broker-quoted Offered quotes 100.00% Funds withheld for reinsurance receivables, at fair value 4 Matrix pricing Calculated prices 100.00% Total financial assets at fair value $ 2,466 Liabilities Future policy benefits $ 725 Discounted cash flow Non-Performance risk spread 0.00% - 0.22% (0.18%) Risk margin to reflect uncertainty 0.35% - 0.71% (0.68%) Derivatives: FIA embedded derivatives included in contractholder funds 2,476 Discounted cash flow Market value of option 0.00% - 31.06% (0.94%) SWAP rates 2.57% - 2.71% (2.63%) Mortality multiplier 80.00% - 80.00% (80.00%) Surrender rates 0.50% - 75.00% (5.90%) Partial withdrawals 1.00% - 2.50% (2.00%) Non-performance spread 0.25% - 0.25% (0.25%) Option cost 0.11% - 16.61% (2.18%) Preferred shares reimbursement feature embedded derivative 29 Black Derman Toy model Credit Spread 5.14% Yield Volatility 20.00% Total financial liabilities at fair value $ 3,230 |
Changes in Fair Value of Financial Instruments - Assets | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and six months ended June 30, 2019 and 2018 , respectively. This summary excludes any impact of amortization of VOBA and DAC. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Three months ended June 30, 2019 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 508 $ — $ 8 $ 262 $ — $ (12 ) $ (30 ) $ 736 Commercial mortgage-backed securities 68 — 2 1 — (8 ) (13 ) 50 Corporates 1,209 — 26 114 (4 ) (25 ) (1 ) 1,319 Hybrids 10 — — — — — — 10 Municipals 38 — 1 — — — — 39 Residential mortgage-backed securities 619 — 14 6 — (22 ) (29 ) 588 Foreign Governments 16 — 1 — — — — 17 Equity securities 20 — (2 ) — — — (15 ) 3 Other invested assets: Available-for-sale embedded derivative 16 2 — — — — — 18 Credit linked note 25 — — — — — — 25 Funds withheld for reinsurance receivables, at fair value 7 — — — (1 ) — (6 ) — Total assets at Level 3 fair value $ 2,536 $ 2 $ 50 $ 383 $ (5 ) $ (67 ) $ (94 ) $ 2,805 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,720 $ 214 $ — $ — $ — $ — $ — $ 2,934 Future policy benefits 797 63 5 — — 922 — 1,787 Preferred shares reimbursement feature embedded derivative 27 (3 ) — — — — — 24 Total liabilities at Level 3 fair value $ 3,544 $ 274 $ 5 $ — $ — $ 922 $ — $ 4,745 (a) The net transfers out of Level 3 during the three months ended June 30, 2019 were exclusively to Level 2. Three months ended June 30, 2018 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 301 $ — $ — $ 152 $ — $ (1 ) $ (122 ) $ 330 Commercial mortgage-backed securities 42 — (1 ) 12 — — 7 60 Corporates 1,216 — (8 ) 99 — (69 ) (48 ) 1,190 Hybrids 10 — — — — — — 10 Municipals 37 — — — — — — 37 Residential mortgage-backed securities 65 — 2 179 — (4 ) — 242 Foreign Governments 16 — — — — — — 16 Equity securities 4 — (1 ) — — — — 3 Other invested assets: Foreign exchange embedded derivative Available-for-sale embedded derivative 17 — — — — — — 17 Affiliated Bank Loans — — — 50 — — — 50 Funds withheld for reinsurance receivables, at fair value 6 — — — — — — 6 Total assets at Level 3 fair value $ 1,714 $ — $ (8 ) $ 492 $ — $ (74 ) $ (163 ) $ 1,961 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,179 $ 141 $ — $ — $ — $ — $ — $ 2,320 Future policy benefits 712 1 — — — 24 — 737 Preferred shares reimbursements feature embedded derivative 24 — — — — — — 24 Total liabilities at Level 3 fair value $ 2,915 $ 142 $ — $ — $ — $ 24 $ — $ 3,081 (a) The net transfers out of Level 3 during the three months ended June 30, 2018 were exclusively to Level 2. Six months ended June 30, 2019 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 444 $ — $ 13 $ 376 $ — $ (43 ) $ (54 ) $ 736 Commercial mortgage-backed securities 67 — 4 1 — (9 ) (13 ) 50 Corporates 1,231 (1 ) 50 114 (25 ) (60 ) 10 1,319 Hybrids 10 — — — — — — 10 Municipals 37 — 2 — — — — 39 Residential mortgage-backed securities 614 — 30 13 — (40 ) (29 ) 588 Foreign Governments 16 — 1 — — — — 17 Equity securities 4 — (1 ) — — — — 3 Other invested assets: Available-for-sale embedded derivative 14 4 — — — — — 18 Credit linked note 25 — — — — — — 25 Funds withheld for reinsurance receivables, at fair value 4 — — 5 (1 ) — (8 ) — Total assets at Level 3 fair value $ 2,466 $ 3 $ 99 $ 509 $ (26 ) $ (152 ) $ (94 ) $ 2,805 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,476 $ 458 $ — $ — $ — $ — $ — $ 2,934 Future policy benefits 725 89 8 — — 965 — 1,787 Preferred shares reimbursement feature embedded derivative 29 (5 ) — — — — — 24 Total liabilities at Level 3 fair value $ 3,230 $ 542 $ 8 $ — $ — $ 965 $ — $ 4,745 ( a) The net transfers out of Level 3 during the six months ended June 30, 2019 were exclusively to Level 2. Six months ended June 30, 2018 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 412 $ — $ (2 ) $ 180 $ — $ (7 ) $ (253 ) $ 330 Commercial mortgage-backed securities 49 — (2 ) 12 — (6 ) 7 60 Corporates 1,169 — (28 ) 199 — (102 ) (48 ) 1,190 Hybrids 10 — — — — — — 10 Municipals 38 — (1 ) — — — — 37 Residential mortgage-backed securities 66 — 2 179 — (5 ) — 242 Foreign Governments 17 (1 ) — — — — — 16 Equity securities 3 1 (1 ) — — — — 3 Other invested assets: Available-for-sale embedded derivative 17 — — — — — — 17 Affiliated bank loans — — — 50 — — — 50 Funds withheld for reinsurance receivables, at fair value 4 — — 2 — — — 6 Total assets at Level 3 fair value $ 1,785 $ — $ (32 ) $ 622 $ — $ (120 ) $ (294 ) $ 1,961 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,277 $ 43 $ — $ — $ — $ — $ — $ 2,320 Future policy benefits 728 (17 ) (2 ) — — 28 — 737 Preferred shares reimbursement feature embedded derivative 23 1 — — — — — 24 Total liabilities at Level 3 fair value $ 3,028 $ 27 $ (2 ) $ — $ — $ 28 $ — $ 3,081 ( a) The net transfers out of Level 3 during the six months ended June 30, 2018 were exclusively to Level 2. |
Changes in Fair Value of Financial Instruments - Liabilities | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and six months ended June 30, 2019 and 2018 , respectively. This summary excludes any impact of amortization of VOBA and DAC. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Three months ended June 30, 2019 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 508 $ — $ 8 $ 262 $ — $ (12 ) $ (30 ) $ 736 Commercial mortgage-backed securities 68 — 2 1 — (8 ) (13 ) 50 Corporates 1,209 — 26 114 (4 ) (25 ) (1 ) 1,319 Hybrids 10 — — — — — — 10 Municipals 38 — 1 — — — — 39 Residential mortgage-backed securities 619 — 14 6 — (22 ) (29 ) 588 Foreign Governments 16 — 1 — — — — 17 Equity securities 20 — (2 ) — — — (15 ) 3 Other invested assets: Available-for-sale embedded derivative 16 2 — — — — — 18 Credit linked note 25 — — — — — — 25 Funds withheld for reinsurance receivables, at fair value 7 — — — (1 ) — (6 ) — Total assets at Level 3 fair value $ 2,536 $ 2 $ 50 $ 383 $ (5 ) $ (67 ) $ (94 ) $ 2,805 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,720 $ 214 $ — $ — $ — $ — $ — $ 2,934 Future policy benefits 797 63 5 — — 922 — 1,787 Preferred shares reimbursement feature embedded derivative 27 (3 ) — — — — — 24 Total liabilities at Level 3 fair value $ 3,544 $ 274 $ 5 $ — $ — $ 922 $ — $ 4,745 (a) The net transfers out of Level 3 during the three months ended June 30, 2019 were exclusively to Level 2. Three months ended June 30, 2018 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 301 $ — $ — $ 152 $ — $ (1 ) $ (122 ) $ 330 Commercial mortgage-backed securities 42 — (1 ) 12 — — 7 60 Corporates 1,216 — (8 ) 99 — (69 ) (48 ) 1,190 Hybrids 10 — — — — — — 10 Municipals 37 — — — — — — 37 Residential mortgage-backed securities 65 — 2 179 — (4 ) — 242 Foreign Governments 16 — — — — — — 16 Equity securities 4 — (1 ) — — — — 3 Other invested assets: Foreign exchange embedded derivative Available-for-sale embedded derivative 17 — — — — — — 17 Affiliated Bank Loans — — — 50 — — — 50 Funds withheld for reinsurance receivables, at fair value 6 — — — — — — 6 Total assets at Level 3 fair value $ 1,714 $ — $ (8 ) $ 492 $ — $ (74 ) $ (163 ) $ 1,961 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,179 $ 141 $ — $ — $ — $ — $ — $ 2,320 Future policy benefits 712 1 — — — 24 — 737 Preferred shares reimbursements feature embedded derivative 24 — — — — — — 24 Total liabilities at Level 3 fair value $ 2,915 $ 142 $ — $ — $ — $ 24 $ — $ 3,081 (a) The net transfers out of Level 3 during the three months ended June 30, 2018 were exclusively to Level 2. Six months ended June 30, 2019 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 444 $ — $ 13 $ 376 $ — $ (43 ) $ (54 ) $ 736 Commercial mortgage-backed securities 67 — 4 1 — (9 ) (13 ) 50 Corporates 1,231 (1 ) 50 114 (25 ) (60 ) 10 1,319 Hybrids 10 — — — — — — 10 Municipals 37 — 2 — — — — 39 Residential mortgage-backed securities 614 — 30 13 — (40 ) (29 ) 588 Foreign Governments 16 — 1 — — — — 17 Equity securities 4 — (1 ) — — — — 3 Other invested assets: Available-for-sale embedded derivative 14 4 — — — — — 18 Credit linked note 25 — — — — — — 25 Funds withheld for reinsurance receivables, at fair value 4 — — 5 (1 ) — (8 ) — Total assets at Level 3 fair value $ 2,466 $ 3 $ 99 $ 509 $ (26 ) $ (152 ) $ (94 ) $ 2,805 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,476 $ 458 $ — $ — $ — $ — $ — $ 2,934 Future policy benefits 725 89 8 — — 965 — 1,787 Preferred shares reimbursement feature embedded derivative 29 (5 ) — — — — — 24 Total liabilities at Level 3 fair value $ 3,230 $ 542 $ 8 $ — $ — $ 965 $ — $ 4,745 ( a) The net transfers out of Level 3 during the six months ended June 30, 2019 were exclusively to Level 2. Six months ended June 30, 2018 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 412 $ — $ (2 ) $ 180 $ — $ (7 ) $ (253 ) $ 330 Commercial mortgage-backed securities 49 — (2 ) 12 — (6 ) 7 60 Corporates 1,169 — (28 ) 199 — (102 ) (48 ) 1,190 Hybrids 10 — — — — — — 10 Municipals 38 — (1 ) — — — — 37 Residential mortgage-backed securities 66 — 2 179 — (5 ) — 242 Foreign Governments 17 (1 ) — — — — — 16 Equity securities 3 1 (1 ) — — — — 3 Other invested assets: Available-for-sale embedded derivative 17 — — — — — — 17 Affiliated bank loans — — — 50 — — — 50 Funds withheld for reinsurance receivables, at fair value 4 — — 2 — — — 6 Total assets at Level 3 fair value $ 1,785 $ — $ (32 ) $ 622 $ — $ (120 ) $ (294 ) $ 1,961 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,277 $ 43 $ — $ — $ — $ — $ — $ 2,320 Future policy benefits 728 (17 ) (2 ) — — 28 — 737 Preferred shares reimbursement feature embedded derivative 23 1 — — — — — 24 Total liabilities at Level 3 fair value $ 3,028 $ 27 $ (2 ) $ — $ — $ 28 $ — $ 3,081 ( a) The net transfers out of Level 3 during the six months ended June 30, 2018 were exclusively to Level 2. |
Schedule of Net Asset Value | The following table includes assets that have not been classified in the fair value hierarchy as the fair value of these investments are measured using the net asset value per share practical expedient. For further discussion about this adoption see “Note 2. Significant Accounting Policies and Practices” to the Company's 2018 Form 10-K. Carrying Value After Measurement June 30, 2019 December 31, 2018 Equity securities $ 56 $ 50 Limited partnership investment, included in other invested assets 875 510 |
Gross Transfers Into and Out of Certain Fair Value Levels by Asset Class | The Company’s assessment resulted in gross transfers into and gross transfers out of certain fair value levels by asset class for the three and six months ended June 30, 2019 and 2018 , are as follows: Transfers Between Fair Value Levels Level 1 Level 2 Level 3 In Out In Out In Out Three months ended June 30, 2019 Asset-backed securities $ — $ — $ 82 $ 52 $ 52 $ 82 Commercial mortgage-backed securities — — 14 1 1 14 Corporates — — 1 — — 1 Hybrids — — — — — — Residential mortgage-backed securities — — 29 — — 29 Equity securities 2 — 15 2 — 15 Funds withheld for reinsurance receivables — — 6 — — 6 Total transfers $ 2 $ — $ 147 $ 55 $ 53 $ 147 Three months ended June 30, 2018 Asset-backed securities $ — $ — $ 122 $ — $ — $ 122 Commercial mortgage-backed securities — — 1 8 8 1 Corporates — — 51 3 3 51 Hybrids 5 — — 5 — — Equity securities 25 — — 25 — — Total transfers $ 30 $ — $ 174 $ 41 $ 11 $ 174 Transfers Between Fair Value Levels Level 1 Level 2 Level 3 In Out In Out In Out Six months ended June 30, 2019 Asset-backed securities $ — $ — $ 106 $ 52 $ 52 $ 106 Commercial mortgage-backed securities — — 14 1 1 14 Corporates — — 1 11 11 1 Hybrids — — — — — — Residential mortgage-backed securities — — 29 — — 29 Equity securities 7 18 18 7 16 16 Funds withheld for reinsurance receivables — — 8 — — 8 Total transfers $ 7 $ 18 $ 176 $ 71 $ 80 $ 174 Six months ended June 30, 2018 Asset-backed securities $ — $ — $ 253 $ — $ — $ 253 Commercial mortgage-backed securities — — 1 8 8 1 Corporates — — 51 3 3 51 Hybrids 20 — — 20 — — Equity securities 25 — — 25 — — Total transfers $ 45 $ — $ 305 $ 56 $ 11 $ 305 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Information Regarding Intangible Assets, VOBA and DAC | A summary of the changes in the carrying amounts of the Company's VOBA, DAC and DSI intangible assets are as follows: VOBA DAC DSI Total Balance at December 31, 2018 $ 866 $ 344 $ 149 $ 1,359 Deferrals — 194 77 271 Amortization (51 ) (3 ) (3 ) (57 ) Interest 9 5 2 16 Unlocking 1 (1 ) (1 ) (1 ) Adjustment for net unrealized investment (gains) losses (121 ) (30 ) (16 ) (167 ) Balance at June 30, 2019 $ 704 $ 509 $ 208 $ 1,421 VOBA DAC DSI Total Balance at December 31, 2017 $ 821 $ 22 $ 10 $ 853 Deferrals — 134 60 194 Amortization (51 ) (2 ) (3 ) (56 ) Interest 10 1 — 11 Unlocking 1 — — 1 Adjustment for net unrealized investment (gains) losses 61 3 3 67 Balance at June 30, 2018 $ 842 $ 158 $ 70 $ 1,070 Amortization of VOBA, DAC, and DSI is based on the historical, current and future expected gross margins or profits recognized, including investment gains and losses. The interest accrual rate utilized to calculate the accretion of interest on VOBA ranged from 0.05% to 4.01% . The adjustment for unrealized net investment losses (gains) represents the amount of VOBA, DAC, and DSI that would have been amortized if such unrealized gains and losses had been recognized. This is referred to as the “shadow adjustments” as the additional amortization is reflected in AOCI rather than the unaudited Condensed Consolidated Statements of Operations. As of June 30, 2019 and 2018 , the VOBA balances included cumulative adjustments for net unrealized investment (gains) losses of $(46) and $43 , respectively, the DAC balances included cumulative adjustments for net unrealized investment (gains) losses of $(26) and $2 , respectively, and the DSI balance included net unrealized investment (gains) losses of $(13) and $3 , respectively. |
Estimated Amortization Expense for VOBA in Future Fiscal Periods | Estimated amortization expense for VOBA in future fiscal periods is as follows: Estimated Amortization Expense Fiscal Year 2019 35 2020 78 2021 89 2022 84 2023 75 Thereafter 389 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The interest expense and amortization of debt issuance costs for the three and six months ended June 30, 2019 and 2018 , respectively, were as follows: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Interest Expense Amortization Interest Expense Amortization Interest Expense Amortization Interest Expense Amortization Debt 7 1 8 — 15 1 13 — Revolving credit facility — — 1 — — — 2 — Gain on extinguishment of debt — — (2 ) — — — (2 ) — |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Dividends Declared | The Company declared the following cash dividend to its common shareholders during the three and six months ended June 30, 2019 . Date Declared Date Paid Date Shareholders of record Shareholders of record (in thousands) Cash Dividend declared (per share) Total cash paid February 27, 2019 April 1, 2019 March 18, 2019 221,661 $0.01 $2 May 7, 2019 June 10, 2019 May 28, 2019 221,661 $0.01 $2 On August 7, 2019, the Company's Board of Directors declared a quarterly cash dividend of $0.01 per share. The dividend will be paid on September 9, 2019 to shareholders of record as of the close of business on August 26, 2019. The Company did not declare a cash dividend to its common shareholders during the three or six months ended June 30, 2018 . The Company declared the following dividends to its preferred shareholders during the three and six months ended June 30, 2019 : Type of Preferred Share Date Declared Date Paid Date Shareholders of record Shares outstanding at date of record (in thousands) Method of Payment Total cash paid Total shares paid in kind (in thousands) Series A Preferred Shares March 29, 2019 April 1, 2019 March 15, 2019 298 Paid in kind $— 6 Series B Preferred Shares March 29, 2019 April 1, 2019 March 15, 2019 108 Paid in kind $— 2 Series A Preferred Shares June 28, 2019 July 1, 2019 June 15, 2019 304 Paid in kind $— 6 Series B Preferred Shares June 28, 2019 July 1, 2019 June 15, 2019 110 Paid in kind $— 2 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Unfunded Commitments | summary of unfunded commitments by invested asset class are included below: June 30, 2019 Asset Type Other invested assets $ 1,066 Equity securities 18 Fixed maturity securities, available-for-sale 21 Other assets 3 Total $ 1,108 As of June 30, 2019 , the Company had unfunded commitments in affiliated investments which are included in the table above. See "Note 14. Related Party Transactions" for further information. |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Reinsurance Disclosures [Abstract] | |
Effect of Reinsurance on Premiums Earned, Benefits Incurred and Reserve Changes | The effect of reinsurance on net premiums earned and net benefits incurred (benefits incurred and reserve changes) for the three and six months ended June 30, 2019 and 2018 were as follows: Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Direct 51 359 58 276 108 731 118 317 Assumed — (39 ) — (5 ) — (19 ) — (26 ) Ceded (43 ) (52 ) (43 ) (54 ) (84 ) (105 ) (85 ) (113 ) Net 8 268 15 217 24 607 33 178 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted EPS | The following table sets forth the computation of basic and diluted earnings per share (share amounts in thousands): Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net income (loss) $ 46 $ 40 $ 217 $ 105 Less Preferred stock dividend 8 7 16 14 Net income (loss) available to common shares 38 33 201 91 Weighted-average common shares outstanding - basic 217,185 214,370 218,483 214,370 Dilutive effect of unvested restricted stock 71 9 54 6 Dilutive effect of stock options 6 — — — Weighted-average shares outstanding - diluted 217,262 214,379 218,537 214,376 Net income (loss) per common share: Basic $ 0.17 $ 0.15 $ 0.92 $ 0.42 Diluted $ 0.17 $ 0.15 $ 0.92 $ 0.42 |
Basis of Presentation and Nat_2
Basis of Presentation and Nature of Business - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Goodwill | $ 467 | $ 467 |
Significant Accounting Polici_3
Significant Accounting Policies and Practices (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2019 | |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Benefits and Other Changes in Policy Reserves | $ 32 | $ 53 |
Amortization of intangibles | 7 | $ 11 |
Document Period End Date | Jun. 30, 2019 | |
Immaterial Error Correction | $ 5 | $ 9 |
Significant Risks and Uncerta_2
Significant Risks and Uncertainties - Narrative (Details) $ in Millions | Jun. 30, 2019USD ($)issuer | Dec. 31, 2018USD ($)issuer |
Concentration Risk [Line Items] | ||
Exposure of FGL's invested assets | 10.00% | 7.00% |
Fair Value In Investments | $ 1,634 | |
Number of issuers in investment | issuer | 0 | 16 |
Wilton Reassurance Company | ||
Concentration Risk [Line Items] | ||
Net amount recoverable | $ 1,531 | |
Kubera Reassurance Company [Member] | ||
Concentration Risk [Line Items] | ||
Net amount recoverable | 857 | |
Scottish Re [Member] | ||
Concentration Risk [Line Items] | ||
Net amount recoverable | 46 | |
Pavonia Life Insurance Company [Member] | ||
Concentration Risk [Line Items] | ||
Net amount recoverable | 85 | |
All Financial Instruments | ||
Concentration Risk [Line Items] | ||
FGL's investment securities in the banking industry | $ 2,556 | $ 2,491 |
Exposure of FGL's invested assets | 10.00% | 10.00% |
Single Issuer | ||
Concentration Risk [Line Items] | ||
FGL's investment securities in the banking industry | $ 150 | $ 115 |
Exposure of FGL's invested assets | 1.00% | 1.00% |
Banking Industry | All Financial Instruments | ||
Concentration Risk [Line Items] | ||
Investment securities held by subsidiaries subject to specialized industry accounting principles, amortized cost | $ 2,536 | $ 2,691 |
Top Ten Holdings [Member] | ||
Concentration Risk [Line Items] | ||
Exposure of FGL's invested assets | 35.00% | |
Number of issuers in investment | issuer | 108 | |
Minimum | ||
Concentration Risk [Line Items] | ||
Exposure of FGL's invested assets | 10.00% |
Investments - Available-for-Sa
Investments - Available-for-Sale Securities Table (Details) $ in Millions | Jun. 30, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 22,954 | $ 22,219 |
Available-for sale securities | ||
Gross Unrealized Gains | 622 | 55 |
Gross Unrealized Losses | (214) | (1,165) |
Fair Value | 23,362 | 21,109 |
Carrying Value | 23,362 | 21,109 |
Equity Securities, Amortized Cost Basis | 1,174 | 1,526 |
Investments, Cost or Amortized Cost | 26,244 | 25,404 |
Investments, Accumulated Gross Unrealized Gain, before Tax | 745 | 58 |
Investments, Accumulated Gross Unrealized Loss, before Tax | 310 | 1,545 |
Investments, Fair Value Disclosure | 26,688 | 23,909 |
Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 6 | 1 |
Equity Securities, Accumulated Gross Unrealized Loss, before tax | (36) | (145) |
Equity Securities, Fair Value | 1,144 | 1,382 |
Equity Securities, Carrying Value | 1,144 | 1,382 |
Derivative investments | ||
Amortized Cost | 324 | 330 |
Gross Unrealized Gains | 117 | 2 |
Gross Unrealized Losses | (58) | (235) |
Fair Value | 383 | 97 |
Carrying Value | 383 | 97 |
Commercial mortgage loans | ||
Loans and Leases Receivable, Net Amount | 760 | 667 |
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 4,038 | 2,857 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (153) | (120) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6,838 | 17,226 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (214) | $ (1,165) |
Total number of available-for-sale securities in an unrealized loss position less than twelve months | Security | 356 | 1,551 |
Total number of available-for-sale securities in an unrealized loss position twelve months or longer | Security | 533 | 556 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | Security | 889 | 2,107 |
Investments | $ 26,679 | $ 23,917 |
Asset-backed securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 5,519 | 4,954 |
Available-for sale securities | ||
Gross Unrealized Gains | 52 | 15 |
Gross Unrealized Losses | (64) | (137) |
Fair Value | 5,507 | 4,832 |
Carrying Value | 5,507 | 4,832 |
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 809 | 643 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (19) | (21) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,102 | 3,567 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (64) | (137) |
Commercial mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 2,744 | 2,568 |
Available-for sale securities | ||
Gross Unrealized Gains | 133 | 9 |
Gross Unrealized Losses | (3) | (40) |
Fair Value | 2,874 | 2,537 |
Carrying Value | 2,874 | 2,537 |
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 33 | 262 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | (6) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 170 | 1,728 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (3) | (40) |
Corporates | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 11,235 | 11,213 |
Available-for sale securities | ||
Gross Unrealized Gains | 315 | 16 |
Gross Unrealized Losses | (128) | (848) |
Fair Value | 11,422 | 10,381 |
Carrying Value | 11,422 | 10,381 |
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 2,714 | 1,465 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (121) | (76) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,917 | 9,481 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (128) | (848) |
Hybrids | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 1,023 | 992 |
Available-for sale securities | ||
Gross Unrealized Gains | 20 | 0 |
Gross Unrealized Losses | (12) | (91) |
Fair Value | 1,031 | 901 |
Carrying Value | 1,031 | 901 |
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 193 | 7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (6) | (1) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 297 | 865 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (12) | (91) |
Municipals | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 1,251 | 1,216 |
Available-for sale securities | ||
Gross Unrealized Gains | 51 | 3 |
Gross Unrealized Losses | (4) | (32) |
Fair Value | 1,298 | 1,187 |
Carrying Value | 1,298 | 1,187 |
Residential mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 1,001 | 1,027 |
Available-for sale securities | ||
Gross Unrealized Gains | 43 | 12 |
Gross Unrealized Losses | (3) | (8) |
Fair Value | 1,041 | 1,031 |
Carrying Value | 1,041 | 1,031 |
U.S. Government | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 41 | 120 |
Available-for sale securities | ||
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (1) |
Fair Value | 41 | 119 |
Carrying Value | 41 | 119 |
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 11 | 50 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (1) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 11 | 119 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | (1) |
Foreign Governments | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 140 | 129 |
Available-for sale securities | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 8 | 0 |
Gross Unrealized Losses | 0 | (8) |
Fair Value | 148 | 121 |
Carrying Value | 148 | 121 |
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 17 | 68 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (5) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 17 | 115 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | (8) |
Other invested assets | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 1,032 | 662 |
Available-for sale securities | ||
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | 0 |
Fair Value | 1,020 | 651 |
Carrying Value | 1,030 | 662 |
Municipals | ||
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 125 | 172 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (4) | (5) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 147 | 1,022 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (4) | (32) |
Residential mortgage-backed securities | ||
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 136 | 190 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2) | (5) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 177 | 329 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (3) | (8) |
Commercial Portfolio Segment [Member] | ||
Commercial mortgage loans | ||
Investment, Commercial Mortgage Loans, Amortized Cost | 476 | 482 |
Investments, Commercial Mortgage Loans, Accumulated Gross Unrealized Gain before Tax | 0 | 0 |
Investments, Commercial Mortgage Loans, Accumulated Gross Unrealized Loss before Tax | 0 | 0 |
Investments, Commercial Mortgage Loans, Fair Value Disclosure | 490 | 483 |
Loans and Leases Receivable, Net Amount | 476 | 482 |
Residential Portfolio Segment [Member] | ||
Commercial mortgage loans | ||
Loans and Leases Receivable, Net Amount | 284 | 185 |
Investment, Residential Mortgage Loans, Amortized Cost | 284 | 185 |
Investments, Residential Mortgage Loans, Accumulated Gross Unrealized Gain before Tax | 0 | 0 |
Residential mortgage loans | $ 289 | $ 187 |
Investments - Credit Impairment
Investments - Credit Impairment Loss Type (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Investments [Line Items] | ||||
Other Than Temporary Impairment Credit Losses Recognized In Earnings Additions Including Credit Impairments | $ (3) | $ 0 | $ (5) | $ (2) |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Change in Status | 0 | 0 | 0 | 0 |
Other than temporary impairment, non-credit losses recognized in OCI | 0 | 0 | 0 | 0 |
Asset Backed Securities and Corporate Securities [Member] | ||||
Schedule of Investments [Line Items] | ||||
Amortized cost | 5 | 0 | 6 | 0 |
Fair value | $ 5 | $ 0 | $ 6 | $ 0 |
Investments - Amortized Cost a
Investments - Amortized Cost and Fair Value of Fixed Maturity Available-for-Sale Securities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||
Document Period End Date | Jun. 30, 2019 | |
Equity Securities, Amortized Cost Basis | $ 1,174 | $ 1,526 |
Due in one year or less, Amortized Cost | 160 | |
Due after one year through five years, Amortized Cost | 752 | |
Due after five years through ten years, Amortized Cost | 1,989 | |
Due after ten years, Amortized Cost | 10,789 | |
Subtotal, Amortized Cost | 13,690 | |
Other securities which provide for periodic payments, Amortized Cost | 9,264 | |
Total fixed maturity available-for-sale securities, Amortized Cost | 22,954 | |
Due in one year or less, Fair Value | 160 | |
Due after one year through five years, Fair Value | 753 | |
Due after five years through ten years, Fair Value | 2,016 | |
Due after ten years, Fair Value | 11,011 | |
Subtotal, Fair Value | 13,940 | |
Other securities which provide for periodic payments, Fair Value | 9,422 | |
Total fixed maturity available-for-sale securities, Fair Value | 23,362 | |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 5,519 | |
Other securities which provide for periodic payments, Fair Value | 5,507 | |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 2,744 | |
Other securities which provide for periodic payments, Fair Value | 2,874 | |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 1,001 | |
Other securities which provide for periodic payments, Fair Value | $ 1,041 |
Investments - Fair Value and G
Investments - Fair Value and Gross Unrealized Losses of Available-for-Sale Securities (Details) | 6 Months Ended | |
Jun. 30, 2019USD ($)Security | Dec. 31, 2018USD ($)Security | |
Debt Securities, Available-for-sale [Line Items] | ||
Document Period End Date | Jun. 30, 2019 | |
Available-for-sale securities, Fair Value, Less than 12 months | $ 2,800,000,000 | $ 14,369,000,000 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (61,000,000) | (1,045,000,000) |
Available-for-sale securities, Fair Value, 12 months or longer | 4,038,000,000 | 2,857,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (153,000,000) | (120,000,000) |
Available-for-sale securities, Fair Value, Total | 6,838,000,000 | 17,226,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | $ (214,000,000) | $ (1,165,000,000) |
Total number of available-for-sale securities in an unrealized loss position less than twelve months | Security | 356 | 1,551 |
Total number of available-for-sale securities in an unrealized loss position twelve months or longer | Security | 533 | 556 |
Total number of available-for-sale securities in an unrealized loss position | Security | 889 | 2,107 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized Losses Related To Non Credit Portion Of Other Than Temporary Impairments Included In Accumulated Other Comprehensive Income | $ 0 | $ 0 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 2,293,000,000 | 2,924,000,000 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (45,000,000) | (116,000,000) |
Available-for-sale securities, Fair Value, 12 months or longer | 809,000,000 | 643,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (19,000,000) | (21,000,000) |
Available-for-sale securities, Fair Value, Total | 3,102,000,000 | 3,567,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (64,000,000) | (137,000,000) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 137,000,000 | 1,466,000,000 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (2,000,000) | (34,000,000) |
Available-for-sale securities, Fair Value, 12 months or longer | 33,000,000 | 262,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (1,000,000) | (6,000,000) |
Available-for-sale securities, Fair Value, Total | 170,000,000 | 1,728,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (3,000,000) | (40,000,000) |
Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 203,000,000 | 8,016,000,000 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (7,000,000) | (772,000,000) |
Available-for-sale securities, Fair Value, 12 months or longer | 2,714,000,000 | 1,465,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (121,000,000) | (76,000,000) |
Available-for-sale securities, Fair Value, Total | 2,917,000,000 | 9,481,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (128,000,000) | (848,000,000) |
Hybrids | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 104,000,000 | 858,000,000 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (6,000,000) | (90,000,000) |
Available-for-sale securities, Fair Value, 12 months or longer | 193,000,000 | 7,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (6,000,000) | (1,000,000) |
Available-for-sale securities, Fair Value, Total | 297,000,000 | 865,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (12,000,000) | (91,000,000) |
Municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 22,000,000 | 850,000,000 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | 0 | (27,000,000) |
Available-for-sale securities, Fair Value, 12 months or longer | 125,000,000 | 172,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (4,000,000) | (5,000,000) |
Available-for-sale securities, Fair Value, Total | 147,000,000 | 1,022,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (4,000,000) | (32,000,000) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 41,000,000 | 139,000,000 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (1,000,000) | (3,000,000) |
Available-for-sale securities, Fair Value, 12 months or longer | 136,000,000 | 190,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (2,000,000) | (5,000,000) |
Available-for-sale securities, Fair Value, Total | 177,000,000 | 329,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (3,000,000) | (8,000,000) |
U.S. Government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 69,000,000 | |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | 0 | |
Available-for-sale securities, Fair Value, 12 months or longer | 11,000,000 | 50,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | 0 | (1,000,000) |
Available-for-sale securities, Fair Value, Total | 11,000,000 | 119,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | 0 | (1,000,000) |
Foreign Governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 47,000,000 | |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (3,000,000) | |
Available-for-sale securities, Fair Value, 12 months or longer | 17,000,000 | 68,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | 0 | (5,000,000) |
Available-for-sale securities, Fair Value, Total | 17,000,000 | 115,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | $ 0 | $ (8,000,000) |
Investments - Reconciliation o
Investments - Reconciliation of Other than Temporary Impairment on Fixed Maturity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Document Period End Date | Jun. 30, 2019 | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Balance at the beginning of the period | $ 0 | $ 0 | ||
Increases attributable to credit losses on securities: | ||||
OTTI was previously recognized | $ 0 | $ 0 | 0 | 0 |
OTTI was not previously recognized | 0 | 0 | 0 | 0 |
Balance at the end of the period | $ 0 | $ 0 | $ 0 | $ 0 |
Investments - Other-than-Tempo
Investments - Other-than-Temporary Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Investments [Line Items] | ||||
Document Period End Date | Jun. 30, 2019 | |||
Total other-than-temporary impairments | $ (3) | $ 0 | $ (5) | $ (2) |
Other than Temporary Impairment Losses, Investments | 3 | 0 | 5 | 2 |
Corporates | ||||
Schedule of Investments [Line Items] | ||||
Total other-than-temporary impairments | $ (3) | $ 0 | $ (5) | $ (2) |
Investments - Schedule of Comm
Investments - Schedule of Commercial Mortgage Loan Investment (Details) $ in Millions | Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Jun. 30, 2019USD ($) |
Schedule of Investments [Line Items] | |||
Document Period End Date | Jun. 30, 2019 | ||
Impaired loans, number | loan | 0 | 0 | |
Commercial mortgage loans, % of total | 100.00% | 100.00% | 100.00% |
Loans and Leases Receivable, Gross | $ 476 | $ 482 | $ 476 |
Loans Receivable, Gross, Residential, Mortgage | 482 | ||
Loans and Leases Receivable, Net Amount | $ 760 | $ 667 | $ 760 |
Hotel | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 4.00% | 4.00% | 4.00% |
Loans and Leases Receivable, Gross | $ 21 | $ 21 | $ 21 |
Industrial - General | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 8.00% | 8.00% | 8.00% |
Loans and Leases Receivable, Gross | $ 37 | $ 37 | $ 37 |
Industrial - Warehouse | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 4.00% | 4.00% | 4.00% |
Loans and Leases Receivable, Gross | $ 20 | $ 20 | $ 20 |
Multifamily | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 11.00% | 12.00% | 11.00% |
Loans and Leases Receivable, Gross | $ 55 | $ 56 | $ 55 |
Office | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 31.00% | 30.00% | 31.00% |
Loans and Leases Receivable, Gross | $ 145 | $ 147 | $ 145 |
Retail | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 42.00% | 42.00% | 42.00% |
Loans and Leases Receivable, Gross | $ 198 | $ 201 | $ 198 |
LTV Less Than 50 Percent | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 65.00% | 63.00% | 65.00% |
Loans Receivable, Gross, Residential, Mortgage | $ 310 | $ 302 | $ 310 |
LTV 50 to 60 Percent | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 33.00% | 35.00% | 33.00% |
Loans Receivable, Gross, Residential, Mortgage | $ 155 | $ 169 | $ 155 |
LTV 60 to 75 Percent | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 2.00% | 2.00% | 2.00% |
Loans Receivable, Gross, Residential, Mortgage | $ 11 | $ 11 | $ 11 |
East North Central | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 20.00% | 20.00% | 20.00% |
Loans and Leases Receivable, Gross | $ 97 | $ 98 | $ 97 |
East South Central | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 4.00% | 4.00% | 4.00% |
Loans and Leases Receivable, Gross | $ 19 | $ 19 | $ 19 |
Middle Atlantic | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 16.00% | 17.00% | 16.00% |
Loans and Leases Receivable, Gross | $ 78 | $ 79 | $ 78 |
Mountain | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 14.00% | 13.00% | 14.00% |
Loans and Leases Receivable, Gross | $ 64 | $ 65 | $ 64 |
New England | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 2.00% | 2.00% | 2.00% |
Loans and Leases Receivable, Gross | $ 10 | $ 10 | $ 10 |
Pacific | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 24.00% | 24.00% | 24.00% |
Loans and Leases Receivable, Gross | $ 114 | $ 116 | $ 114 |
South Atlantic | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 12.00% | 12.00% | 12.00% |
Loans and Leases Receivable, Gross | $ 56 | $ 57 | $ 56 |
West North Central | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 3.00% | 3.00% | 3.00% |
Loans and Leases Receivable, Gross | $ 13 | $ 13 | $ 13 |
West South Central | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 5.00% | 5.00% | 5.00% |
Loans and Leases Receivable, Gross | $ 25 | $ 25 | $ 25 |
Greater than 1.25 | |||
Schedule of Investments [Line Items] | |||
Loans Receivable, Gross, Residential, Mortgage | 470 | 476 | 470 |
Greater than 1.25 | LTV Less Than 50 Percent | |||
Schedule of Investments [Line Items] | |||
Loans Receivable, Gross, Residential, Mortgage | 304 | 296 | 304 |
Greater than 1.25 | LTV 50 to 60 Percent | |||
Schedule of Investments [Line Items] | |||
Loans Receivable, Gross, Residential, Mortgage | 155 | 169 | 155 |
Greater than 1.25 | LTV 60 to 75 Percent | |||
Schedule of Investments [Line Items] | |||
Loans Receivable, Gross, Residential, Mortgage | 11 | 11 | 11 |
Greater than 1.00 but less than 1.25 | |||
Schedule of Investments [Line Items] | |||
Loans Receivable, Gross, Residential, Mortgage | 6 | 6 | 6 |
Greater than 1.00 but less than 1.25 | LTV Less Than 50 Percent | |||
Schedule of Investments [Line Items] | |||
Loans Receivable, Gross, Residential, Mortgage | 6 | 6 | 6 |
Greater than 1.00 but less than 1.25 | LTV 50 to 60 Percent | |||
Schedule of Investments [Line Items] | |||
Loans Receivable, Gross, Residential, Mortgage | 0 | 0 | 0 |
Greater than 1.00 but less than 1.25 | LTV 60 to 75 Percent | |||
Schedule of Investments [Line Items] | |||
Loans Receivable, Gross, Residential, Mortgage | $ 0 | $ 0 | $ 0 |
Fair Value | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 100.00% | 100.00% | 100.00% |
Loans Receivable, Gross, Residential, Mortgage | $ 490 | $ 483 | $ 490 |
Fair Value | LTV Less Than 50 Percent | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 65.00% | 63.00% | 65.00% |
Loans Receivable, Gross, Residential, Mortgage | $ 319 | $ 302 | $ 319 |
Fair Value | LTV 50 to 60 Percent | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 33.00% | 35.00% | 33.00% |
Loans Receivable, Gross, Residential, Mortgage | $ 160 | $ 170 | $ 160 |
Fair Value | LTV 60 to 75 Percent | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 2.00% | 2.00% | 2.00% |
Loans Receivable, Gross, Residential, Mortgage | $ 11 | $ 11 | $ 11 |
Commercial Portfolio Segment [Member] | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, % of total | 100.00% | 100.00% | 100.00% |
Loans and Leases Receivable, Gross | $ 476 | $ 482 | $ 476 |
Loans Receivable, Gross, Residential, Mortgage | 476 | 476 | |
Allowance for loan loss | 0 | 0 | 0 |
Loans and Leases Receivable, Net Amount | $ 476 | $ 482 | $ 476 |
Investments - Net Investment I
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Investments [Line Items] | ||||
Document Period End Date | Jun. 30, 2019 | |||
Gross investment income | $ 341 | $ 298 | $ 658 | $ 571 |
Investment expense | (26) | (16) | (54) | (26) |
Net investment income | 315 | 282 | 604 | 545 |
Fixed maturity securities, available-for-sale | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 267 | 248 | 532 | 490 |
Equity securities | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 19 | 26 | 40 | 36 |
Commercial mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 8 | 5 | 15 | 12 |
Invested cash and short-term investments | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 7 | 4 | 10 | 8 |
Other investments | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 2 | 2 | 7 | 3 |
Funds Withheld [Member] | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 17 | 7 | 25 | 14 |
Limited Partnership [Member] | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | $ 21 | $ 6 | $ 29 | $ 9 |
Investments - Net Investment G
Investments - Net Investment Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Gain (Loss) on Securities [Line Items] | ||||
Document Period End Date | Jun. 30, 2019 | |||
Net realized losses on fixed maturity available-for-sale securities | $ (5) | $ (23) | $ (8) | $ (60) |
Realized gains on equity securities | 22 | (23) | 100 | (29) |
Change in fair value of other derivatives and embedded derivatives | 1 | 0 | 4 | 0 |
Realized losses on other invested assets | 2 | 0 | 3 | (3) |
Realized gains (losses) on certain derivative instruments | (3) | (15) | (4) | |
Debt and Equity Securities, Gain (Loss) | (29) | |||
Unrealized gains (losses) on certain derivative instruments | 73 | 72 | 263 | (63) |
Derivative, Gain (Loss) on Derivative, Net | 45 | (13) | 42 | (34) |
Change In Fair Value Derivatives, Including Other Derivatives | 116 | 44 | 280 | (101) |
Realized gains (losses) on hedging derivatives and reinsurance-related embedded derivatives | 116 | 44 | 280 | (101) |
Net investment gains (losses) | $ 135 | $ (2) | $ 375 | $ (193) |
Investments - Narrative (Detai
Investments - Narrative (Details) | Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2015USD ($) |
Debt Securities, Available-for-sale [Line Items] | |||||||
Non-income producing investment fair value | $ 0 | $ 0 | $ 0 | $ 0 | |||
FHLB collateral pledged | 1,259,000,000 | 1,401,000,000 | 1,259,000,000 | 1,259,000,000 | |||
Available for sale depressed securities fair value disclosure | 41,000,000 | 132,000,000 | 41,000,000 | $ 41,000,000 | |||
Percentage of available for sale depressed securities above amortized cost | 20.00% | ||||||
Other than temporary impairment credit losses recognized in earnings, including credit impairments | 3,000,000 | $ 0 | $ 5,000,000 | $ 2,000,000 | |||
Other than temporary impairment credit losses recognized in earnings, reductions, change in status | 0 | 0 | 0 | 0 | |||
Amortized cost | 22,954,000,000 | 22,219,000,000 | 22,954,000,000 | 22,954,000,000 | |||
Fair Value | $ 23,362,000,000 | $ 21,109,000,000 | 23,362,000,000 | 23,362,000,000 | |||
Other than temporary impairment, non-credit losses recognized in OCI | 0 | 0 | 0 | 0 | |||
Realized gains (losses) on other invested assets | 2,000,000 | 0 | 3,000,000 | (3,000,000) | |||
Impaired loans, number | loan | 0 | 0 | |||||
Unrealized Gain (Loss) on Investments | 472,000,000 | (325,000,000) | 1,196,000,000 | (684,000,000) | |||
Residential mortgage-backed securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Unrealized Gain Related To Non Credit Portion Of Other Than Temporary Impairments Included In Accumulated Other Comprehensive Income | $ 0 | $ 0 | 0 | 0 | |||
Unrealized losses related to non-credit portion of OTTI included in AOCI | 0 | 0 | 0 | 0 | |||
Residential mortgage-backed securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Amortized cost | 1,001,000,000 | 1,027,000,000 | 1,001,000,000 | 1,001,000,000 | |||
Fair Value | 1,041,000,000 | 1,031,000,000 | 1,041,000,000 | 1,041,000,000 | |||
Available-for-sale Securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Assets held by insurance regulators | $ 16,595,000,000 | $ 19,930,000,000 | $ 16,595,000,000 | 16,595,000,000 | |||
Proceeds from available-for-sale investments, sold, matured or repaid: | $ 1,817,000,000 | 4,870,000,000 | |||||
Commercial mortgage loans | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Loan to value, threshold | 75.00% | 75.00% | 75.00% | 75.00% | |||
Total fixed maturities | Available-for-sale Securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Proceeds from available-for-sale investments, sold, matured or repaid: | $ 462,000,000 | 870,000,000 | $ 936,000,000 | 3,648,000,000 | |||
Gain on sale of investments | 5,000,000 | 0 | 10,000,000 | 8,000,000 | |||
Loss on sale of investments | (5,000,000) | $ (22,000,000) | (15,000,000) | $ (65,000,000) | |||
Commitment to Invest | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Unfunded investment commitment | $ 1,108,000,000 | 1,108,000,000 | 1,108,000,000 | ||||
Crescent Capital BDC Inc. | Commitment to Invest | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Unfunded investment commitment | $ 75,000,000 | ||||||
Other Investments | 57,000,000 | 57,000,000 | 57,000,000 | ||||
Golub Capital Partners 10, L.P. [Member] | Commitment to Invest | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Unfunded investment commitment | 875,000,000 | 875,000,000 | 875,000,000 | ||||
Other Investments | $ 1,066,000,000 | $ 1,066,000,000 | $ 1,066,000,000 |
Investments Impact of Adoption
Investments Impact of Adoption of New Accounting Pronouncement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net investment gains (losses) | $ 135 | $ (2) | $ 375 | $ (193) |
Gain (Loss) on Sale of Equity Investments | 22 | (23) | 100 | (29) |
Unrealized Gain (Loss) on Investments | $ 472 | $ (325) | $ 1,196 | $ (684) |
Investments Schedule of Residen
Investments Schedule of Residential Mortgage Loan Investment (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Document Period End Date | Jun. 30, 2019 | |
Loans Receivable, Gross, Residential, Mortgage | $ 482,000,000 | |
Residential Mortgage Receivable, Percentage of Total | 100.00% | 100.00% |
FLORIDA | ||
Loans Receivable, Gross, Residential, Mortgage | $ 39,000,000 | $ 25,000,000 |
Residential Mortgage Receivable, Percentage of Total | 14.00% | 14.00% |
ILLINOIS | ||
Loans Receivable, Gross, Residential, Mortgage | $ 37,000,000 | $ 24,000,000 |
Residential Mortgage Receivable, Percentage of Total | 13.00% | 13.00% |
NEW JERSEY | ||
Loans Receivable, Gross, Residential, Mortgage | $ 29,000,000 | $ 17,000,000 |
Residential Mortgage Receivable, Percentage of Total | 11.00% | |
All Other States [Member] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 172,000,000 | $ 114,000,000 |
Residential Mortgage Receivable, Percentage of Total | 62.00% | 64.00% |
Total Mortgage Loans [Member] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 277,000,000 | $ 180,000,000 |
Residential Portfolio Segment [Member] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 284,000,000 | $ 185,000,000 |
Residential Mortgage Receivable, Percentage of Total | 100.00% | 100.00% |
Loans and Leases Receivable, Allowance | $ 0 | $ 0 |
Performing [Member] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 284,000,000 | $ 185,000,000 |
Residential Mortgage Receivable, Percentage of Total | 100.00% | 100.00% |
Non-performing [Member] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 0 | $ 0 |
Residential Mortgage Receivable, Percentage of Total | 0.00% | 0.00% |
Maximum | All Other States [Member] | ||
Residential Mortgage Receivable, Percentage of Total | 9.00% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Total asset derivatives | $ 401 | $ 111 |
Total liability derivatives | 2,958 | 2,505 |
Call options | Derivative Instruments | ||
Derivative [Line Items] | ||
Total asset derivatives | 383 | 97 |
Futures contracts | Derivative Instruments | ||
Derivative [Line Items] | ||
Total asset derivatives | 0 | 0 |
Other derivatives and embedded derivatives | Other invested assets | ||
Derivative [Line Items] | ||
Total asset derivatives | 18 | 14 |
FIA embedded derivative | Contractholder funds | ||
Derivative [Line Items] | ||
Total liability derivatives | 2,934 | 2,476 |
Preferred shares reimbursement feature embedded derivative | Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Total liability derivatives | $ 24 | $ 29 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Change in Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | $ 45 | $ (13) | $ 42 | $ (34) |
Change In Fair Value Of Derivatives | 116 | 44 | 280 | (101) |
Call options | Net investment (losses) gains | ||||
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | 64 | 55 | 218 | (67) |
Futures contracts | Net investment (losses) gains | ||||
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | 6 | 2 | 14 | 0 |
Foreign Exchange Forward [Member] | Net investment (losses) gains | ||||
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | 0 | 0 | 2 | 0 |
Other derivatives and embedded derivatives | Net investment (losses) gains | ||||
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | 1 | 0 | 4 | 0 |
Reinsurance related embedded derivative | Net investment (losses) gains | ||||
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | 45 | (13) | 42 | (34) |
Preferred shares reimbursement feature embedded derivative | Net investment (losses) gains | ||||
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | 3 | 0 | 5 | (1) |
FIA embedded derivative | ||||
Derivative [Line Items] | ||||
Change in fair value of reinsurance related embedded derivatives | $ 214 | $ 141 | $ 458 | $ 43 |
Derivative Financial Instrume_5
Derivative Financial Instruments - FGL's Exposure to Credit Loss on Call Options Held (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 401 | $ 111 |
Merrill Lynch | ||
Derivatives, Fair Value [Line Items] | ||
Credit Rating (Fitch/Moody's/S&P) (a) | A+/*/A+ | A+/*/A+ |
Deutsche Bank | ||
Derivatives, Fair Value [Line Items] | ||
Credit Rating (Fitch/Moody's/S&P) (a) | BBB/A3/BBB+ | A-/A3/BBB+ |
Notional Amount | $ 1,019 | $ 1,327 |
Fair Value | 14 | 5 |
Collateral | 13 | 6 |
Net Credit Risk | $ 1 | $ (1) |
Morgan Stanley | ||
Derivatives, Fair Value [Line Items] | ||
Credit Rating (Fitch/Moody's/S&P) (a) | */A1/A+ | */A1/A+ |
Notional Amount | $ 1,508 | $ 1,648 |
Fair Value | 22 | 9 |
Collateral | 23 | 6 |
Net Credit Risk | $ (1) | $ 3 |
Barclay's Bank | ||
Derivatives, Fair Value [Line Items] | ||
Credit Rating (Fitch/Moody's/S&P) (a) | A+/A2/A | A+/A2/A |
Notional Amount | $ 3,199 | $ 2,205 |
Fair Value | 126 | 27 |
Collateral | 105 | 20 |
Net Credit Risk | $ 21 | $ 7 |
Canadian Imperial Bank of Commerce [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Credit Rating (Fitch/Moody's/S&P) (a) | */Aa2/A+ | */Aa2/A+ |
Notional Amount | $ 1,931 | $ 1,716 |
Fair Value | 61 | 11 |
Collateral | 40 | 8 |
Net Credit Risk | $ 21 | $ 3 |
Wells Fargo [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Credit Rating (Fitch/Moody's/S&P) (a) | A+/A2/A- | A+/A2/A- |
Notional Amount | $ 2,089 | $ 1,635 |
Fair Value | 64 | 17 |
Collateral | 62 | 16 |
Net Credit Risk | $ 2 | $ 1 |
GOLDMAN SACH MTF [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Credit Rating (Fitch/Moody's/S&P) (a) | A/A3/BBB+ | A/A3/BBB+ |
Notional Amount | $ 1,350 | $ 647 |
Fair Value | 22 | 3 |
Collateral | 21 | 3 |
Net Credit Risk | 1 | 0 |
Derivatives For Trading And Investment | Not Designated as Hedging Instrument | Call options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 14,030 | 13,130 |
Fair Value | 383 | 97 |
Collateral | 293 | 59 |
Net Credit Risk | 90 | 38 |
Derivatives For Trading And Investment | Not Designated as Hedging Instrument | Call options | Merrill Lynch | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,934 | 3,952 |
Fair Value | 74 | 25 |
Collateral | 29 | 0 |
Net Credit Risk | $ 45 | $ 25 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Narrative (Details) $ in Millions | Nov. 30, 2017shares | Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)contract | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 16, 2014USD ($) |
Derivative [Line Items] | |||||||||
Fair Value | $ 401 | $ 401 | $ 111 | ||||||
Fair value of assets | $ 1,961 | $ 1,961 | $ 1,714 | $ 1,785 | |||||
Derivative, Gain (Loss) on Derivative, Net | $ 45 | (13) | $ 42 | (34) | |||||
Other derivatives and embedded derivatives | |||||||||
Derivative [Line Items] | |||||||||
Term of contract, term one | 1 year | ||||||||
Term of contract, term two | 2 years | ||||||||
Term of contract, term three | 3 years | ||||||||
Term of contract, term four | 5 years | ||||||||
Futures contracts | |||||||||
Derivative [Line Items] | |||||||||
Number of instruments held | contract | 834,000,000 | 834,000,000 | 664,000,000 | ||||||
Collateral held | $ 5 | $ 5 | $ 3 | ||||||
Other invested assets | Other derivatives and embedded derivatives | |||||||||
Derivative [Line Items] | |||||||||
Fair Value | 18 | 18 | 14 | ||||||
Derivative investments | Call options | |||||||||
Derivative [Line Items] | |||||||||
Fair Value | 383 | 383 | 97 | ||||||
Derivative investments | Futures contracts | |||||||||
Derivative [Line Items] | |||||||||
Fair Value | 0 | 0 | 0 | ||||||
Derivatives For Trading And Investment | Not Designated as Hedging Instrument | Call options | |||||||||
Derivative [Line Items] | |||||||||
Fair Value | 383 | 383 | 97 | ||||||
Derivative notional amount | 14,030 | 14,030 | 13,130 | ||||||
Collateral posted | 293 | 293 | 59 | ||||||
Maximum amount of loss due to credit risk | 90 | 90 | 38 | ||||||
Cash and Cash Equivalents | Not Designated as Hedging Instrument | Call options | |||||||||
Derivative [Line Items] | |||||||||
Collateral posted | 264 | 264 | 59 | ||||||
Other Investments Asset | Other invested assets | |||||||||
Derivative [Line Items] | |||||||||
Fixed maturities securities, available-for-sale, at fair value | 28 | 28 | 26 | $ 35 | |||||
Other Investments Asset | Other invested assets | Other derivatives and embedded derivatives | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ 11 | ||||||||
Merrill Lynch [Member] | Derivatives For Trading And Investment | Not Designated as Hedging Instrument | Call options | |||||||||
Derivative [Line Items] | |||||||||
Fair Value | 74 | 74 | 25 | ||||||
Derivative notional amount | 2,934 | 2,934 | 3,952 | ||||||
Collateral posted | 29 | 29 | 0 | ||||||
Maximum amount of loss due to credit risk | 45 | 45 | $ 25 | ||||||
Preferred Stock | |||||||||
Derivative [Line Items] | |||||||||
Preferred Stock, Call Features, Minimum Term | 5 years | ||||||||
Preferred stock dividend rate | 10.00% | ||||||||
Series A Cumulative Preferred Stock [Member] | Preferred Stock | |||||||||
Derivative [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | shares | 275,000 | ||||||||
Series B Cumulative Preferred Stock [Member] | Preferred Stock | |||||||||
Derivative [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | shares | 100,000 | ||||||||
Net investment (losses) gains | Foreign Exchange Forward [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 2 | 0 | |||||
Net investment (losses) gains | Other derivatives and embedded derivatives | |||||||||
Derivative [Line Items] | |||||||||
Derivative, Gain (Loss) on Derivative, Net | 1 | 0 | 4 | 0 | |||||
Net investment (losses) gains | Call options | |||||||||
Derivative [Line Items] | |||||||||
Derivative, Gain (Loss) on Derivative, Net | 64 | 55 | 218 | (67) | |||||
Net investment (losses) gains | Futures contracts | |||||||||
Derivative [Line Items] | |||||||||
Derivative, Gain (Loss) on Derivative, Net | $ 6 | $ 2 | $ 14 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Assets and Liabilities Carrying at Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 23,362 | $ 21,109 |
Derivative investments | 383 | 97 |
Total financial assets at fair value | 2,805 | 2,466 |
Funds withheld for reinsurance receivables, at fair value | 1,922 | 757 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 772 | 571 |
Equity securities | 413 | 454 |
Derivative investments | 0 | 0 |
Other invested assets | 0 | |
Total financial assets at fair value | 2,096 | 1,573 |
Total financial liabilities at fair value | 0 | 0 |
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Residential mortgage loans | 0 | 0 |
Policy loans, included in other invested assets | 0 | 0 |
Affiliated other invested assets | 0 | 0 |
Funds withheld for reinsurance receivables, at fair value | 0 | 0 |
Total assets carried on balance sheet at amounts other than fair value | 0 | 0 |
Investment contracts, included in contractholder funds | 0 | 0 |
Debt | 0 | 0 |
Total liabilities carried on balance sheet at amounts other than fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Equity securities | 672 | 874 |
Derivative investments | 383 | 97 |
Other invested assets | 0 | |
Total financial assets at fair value | 22,651 | 19,858 |
Total financial liabilities at fair value | 0 | 0 |
FHLB common stock | 59 | 52 |
Commercial mortgage loans | 0 | 0 |
Residential mortgage loans | 0 | 0 |
Policy loans, included in other invested assets | 0 | 0 |
Affiliated other invested assets | 0 | 0 |
Funds withheld for reinsurance receivables, at fair value | 0 | 0 |
Total assets carried on balance sheet at amounts other than fair value | 59 | 52 |
Investment contracts, included in contractholder funds | 0 | 0 |
Debt | 547 | 520 |
Total liabilities carried on balance sheet at amounts other than fair value | 547 | 520 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Equity securities | 3 | 4 |
Derivative investments | 0 | 0 |
Other invested assets | 39 | |
Total financial assets at fair value | 2,805 | 2,466 |
Total financial liabilities at fair value | 4,745 | 3,230 |
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 490 | 483 |
Residential mortgage loans | 289 | 187 |
Policy loans, included in other invested assets | 15 | 11 |
Affiliated other invested assets | 28 | 39 |
Funds withheld for reinsurance receivables, at fair value | 18 | 8 |
Total assets carried on balance sheet at amounts other than fair value | 840 | 728 |
Investment contracts, included in contractholder funds | 18,864 | 18,358 |
Debt | 0 | 0 |
Total liabilities carried on balance sheet at amounts other than fair value | 18,864 | 18,358 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 772 | 571 |
Equity securities | 1,088 | 1,332 |
Derivative investments | 383 | 97 |
Other invested assets | 39 | |
Total financial assets at fair value | 27,552 | 23,897 |
Total financial liabilities at fair value | 4,745 | 3,230 |
FHLB common stock | 59 | 52 |
Commercial mortgage loans | 490 | 483 |
Residential mortgage loans | 289 | 187 |
Policy loans, included in other invested assets | 15 | 11 |
Affiliated other invested assets | 28 | 39 |
Funds withheld for reinsurance receivables, at fair value | 18 | 8 |
Total assets carried on balance sheet at amounts other than fair value | 899 | 780 |
Investment contracts, included in contractholder funds | 18,864 | 18,358 |
Debt | 547 | 520 |
Total liabilities carried on balance sheet at amounts other than fair value | 19,411 | 18,878 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 772 | 571 |
Equity securities | 1,088 | 1,332 |
Derivative investments | 383 | 97 |
Other invested assets | 39 | |
Total financial assets at fair value | 27,552 | 23,897 |
Total financial liabilities at fair value | 4,745 | 3,230 |
FHLB common stock | 59 | 52 |
Commercial mortgage loans | 476 | 482 |
Residential mortgage loans | 284 | 185 |
Policy loans, included in other invested assets | 25 | 22 |
Affiliated other invested assets | 28 | 39 |
Funds withheld for reinsurance receivables, at fair value | 18 | 8 |
Total assets carried on balance sheet at amounts other than fair value | 890 | 788 |
Investment contracts, included in contractholder funds | 21,894 | 20,911 |
Debt | 542 | 541 |
Total liabilities carried on balance sheet at amounts other than fair value | 22,436 | 21,452 |
Fixed indexed annuities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fixed indexed annuities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fixed indexed annuities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,934 | 2,476 |
Fixed indexed annuities | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,934 | 2,476 |
Fixed indexed annuities | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,934 | 2,476 |
Preferred shares reimbursement feature embedded derivative | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Preferred shares reimbursement feature embedded derivative | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Preferred shares reimbursement feature embedded derivative | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 24 | 29 |
Preferred shares reimbursement feature embedded derivative | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 24 | 29 |
Preferred shares reimbursement feature embedded derivative | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 24 | 29 |
Future Policy Benefits | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Future Policy Benefits | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Future Policy Benefits | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,787 | 725 |
Future Policy Benefits | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,787 | 725 |
Future Policy Benefits | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,787 | 725 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 5,507 | 4,832 |
Asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 4,771 | 4,388 |
Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 736 | 444 |
Asset-backed securities | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 5,507 | 4,832 |
Asset-backed securities | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 5,507 | 4,832 |
Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,874 | 2,537 |
Commercial mortgage-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Commercial mortgage-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,824 | 2,470 |
Commercial mortgage-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 50 | 67 |
Commercial mortgage-backed securities | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,874 | 2,537 |
Commercial mortgage-backed securities | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,874 | 2,537 |
Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 11,422 | 10,381 |
Corporates | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Corporates | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 10,103 | 9,150 |
Corporates | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,319 | 1,231 |
Corporates | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 11,422 | 10,381 |
Corporates | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 11,422 | 10,381 |
Hybrids | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,031 | 901 |
Hybrids | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 296 | 265 |
Hybrids | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 725 | 626 |
Hybrids | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 10 | 10 |
Hybrids | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,031 | 901 |
Hybrids | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,031 | 901 |
Municipals | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Municipals | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,259 | 1,150 |
Municipals | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 39 | 37 |
Municipals | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,298 | 1,187 |
Municipals | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,298 | 1,187 |
Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,041 | 1,031 |
Residential mortgage-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Residential mortgage-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 453 | 417 |
Residential mortgage-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 588 | 614 |
Residential mortgage-backed securities | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,041 | 1,031 |
Residential mortgage-backed securities | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,041 | 1,031 |
U.S. Government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 41 | 119 |
U.S. Government | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 41 | 114 |
U.S. Government | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 5 |
U.S. Government | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
U.S. Government | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 41 | 119 |
U.S. Government | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 41 | 119 |
Foreign Governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 148 | 121 |
Foreign Governments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Foreign Governments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 131 | 105 |
Foreign Governments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 17 | 16 |
Foreign Governments | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 148 | 121 |
Foreign Governments | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 148 | 121 |
Other invested assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | |
Other invested assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | |
Other invested assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 43 | |
Other invested assets | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 43 | |
Other invested assets | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 43 | |
Funds withheld for reinsurance receivables, at fair value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 574 | 169 |
Funds withheld for reinsurance receivables, at fair value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,330 | 576 |
Funds withheld for reinsurance receivables, at fair value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 4 |
Funds withheld for reinsurance receivables, at fair value | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,904 | 749 |
Funds withheld for reinsurance receivables, at fair value | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 1,904 | $ 749 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Unobservable Inputs Used for Level Three Fair Value Measurements of Financial Instruments on Recurring Basis (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 2,805,000,000 | $ 2,466,000,000 |
Liabilities, fair value | 4,745,000,000 | 3,230,000,000 |
Future Policy Benefit | 725,000,000 | |
Market Approach | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 711,000,000 | 405,000,000 |
Market Approach | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 24,000,000 | 43,000,000 |
Market Approach | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 1,181,000,000 | 577,000,000 |
Market Approach | Municipals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 39,000,000 | 37,000,000 |
Market Approach | Residential mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 588,000,000 | |
Residential Mortage Backed securities | 614,000,000 | |
Market Approach | Foreign Governments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 17,000,000 | 16,000,000 |
Market Approach | Credit Linked Note | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 25,000,000 | |
Loan Recovery Value | 25,000,000 | |
Third Parties | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 25,000,000 | 15,000,000 |
Income Approach Valuation Technique | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 654,000,000 | |
Income Approach Valuation Technique | Hybrids | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 10,000,000 | |
Black Scholes Model | Other invested assets | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 18,000,000 | |
Matrix Pricing Valuation | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 24,000,000 | |
Matrix Pricing Valuation | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 26,000,000 | 24,000,000 |
Matrix Pricing Valuation | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 138,000,000 | |
Matrix Pricing Valuation | Hybrids | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 10,000,000 | |
Fixed indexed annuities | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | 2,934,000,000 | 2,476,000,000 |
Preferred shares reimbursement feature embedded derivative | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 24,000,000 | $ 29,000,000 |
Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Risk Margin To Reflect Uncertainty | 0.00% | |
Minimum | Market Approach | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 89.87% | 97.00% |
Minimum | Market Approach | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 80.47% | 74.63% |
Minimum | Market Approach | Hybrids | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 101.95% | 96.60% |
Minimum | Market Approach | Municipals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 118.57% | 111.23% |
Minimum | Market Approach | Residential mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 93.86% | 89.80% |
Minimum | Market Approach | Foreign Governments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 103.01% | 98.38% |
Minimum | Income Approach Valuation Technique | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 96.07% | |
Minimum | Income Approach Valuation Technique | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 126.19% | 117.72% |
Minimum | Income Approach Valuation Technique | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 101.67% | 91.74% |
Minimum | Income Approach Valuation Technique | Future Policy Benefits, Nonperformance Risk Spread [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, black scholes model | 0.00% | 0.00% |
Minimum | Third Party Valuation Technique | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 0.00% | 0.00% |
Minimum | Future Policy Benefits, Market Value of Option [Member] | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, market value of option | 0.00% | |
Minimum | Future Policy Benefits, Mortality Multiplier | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, market value of option | 80.00% | |
Minimum | Fixed indexed annuities | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, market value of option | 0.00% | 0.00% |
Fair value inputs, swap rates | 1.75% | 2.57% |
Fair value inputs, mortality multiplier | 80.00% | 80.00% |
Fair value inputs, surrender rates | 0.50% | 0.05% |
Fair value inputs, non performance spread | 0.25% | 0.03% |
Minimum | Fixed indexed annuities | Partial Withdrawls | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, surrender rates | 1.00% | 1.00% |
Minimum | Fixed indexed annuities | Option Cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, non performance spread | 0.18% | 0.01% |
Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Risk Margin To Reflect Uncertainty | 0.00% | |
Maximum | Market Approach | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 106.58% | 102.00% |
Maximum | Market Approach | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 119.21% | 104.62% |
Maximum | Market Approach | Hybrids | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 101.95% | 96.60% |
Maximum | Market Approach | Municipals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 118.57% | 111.23% |
Maximum | Market Approach | Residential mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 106.45% | 100.99% |
Maximum | Market Approach | Foreign Governments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 106.03% | 99.01% |
Maximum | Income Approach Valuation Technique | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 96.07% | |
Maximum | Income Approach Valuation Technique | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 126.19% | 117.72% |
Maximum | Income Approach Valuation Technique | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 106.04% | 113.25% |
Maximum | Income Approach Valuation Technique | Future Policy Benefits, Nonperformance Risk Spread [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, black scholes model | 0.10% | 0.22% |
Maximum | Third Party Valuation Technique | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 99.33% | 99.29% |
Maximum | Future Policy Benefits, Market Value of Option [Member] | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, market value of option | 7.51% | |
Maximum | Future Policy Benefits, Mortality Multiplier | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, market value of option | 100.00% | |
Maximum | Fixed indexed annuities | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, market value of option | 31.74% | 31.06% |
Fair value inputs, swap rates | 1.96% | 2.71% |
Fair value inputs, mortality multiplier | 80.00% | 80.00% |
Fair value inputs, surrender rates | 75.00% | 75.00% |
Fair value inputs, non performance spread | 0.25% | 0.03% |
Maximum | Fixed indexed annuities | Partial Withdrawls | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, surrender rates | 2.50% | 2.50% |
Maximum | Fixed indexed annuities | Option Cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, non performance spread | 16.61% | 16.61% |
Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit Spread | $ 0.0410 | $ 0.0514 |
Yield Volatility | 0.00% | 0.00% |
Risk Margin To Reflect Uncertainty | 0.00% | |
Weighted Average | Market Approach | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 100.79% | 99.77% |
Weighted Average | Market Approach | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 102.29% | 97.80% |
Weighted Average | Market Approach | Hybrids | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 101.95% | 96.60% |
Weighted Average | Market Approach | Municipals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 118.57% | 111.23% |
Weighted Average | Market Approach | Residential mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 106.07% | 100.73% |
Weighted Average | Market Approach | Foreign Governments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 103.95% | 98.58% |
Weighted Average | Market Approach | Other invested assets | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 100.00% | 100.00% |
Fair Value Input Recovery Rate | 7.15% | |
Weighted Average | Income Approach Valuation Technique | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 96.07% | |
Weighted Average | Income Approach Valuation Technique | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 126.19% | 117.72% |
Weighted Average | Income Approach Valuation Technique | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 103.41% | 98.86% |
Weighted Average | Income Approach Valuation Technique | Equity securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Input Recovery Rate | 4.42% | |
Weighted Average | Income Approach Valuation Technique | Other invested assets | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, black scholes model | 100.00% | 100.00% |
Weighted Average | Income Approach Valuation Technique | Future Policy Benefits, Nonperformance Risk Spread [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, black scholes model | 8.00% | 0.18% |
Weighted Average | Matrix Pricing Valuation | Funds withheld for reinsurance liabilities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, black scholes model | 100.00% | |
Weighted Average | Third Party Valuation Technique | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 34.08% | 23.05% |
Weighted Average | Third Party Valuation Technique | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 87.98% | 85.46% |
Weighted Average | Future Policy Benefits, Market Value of Option [Member] | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, market value of option | 1.48% | |
Weighted Average | Future Policy Benefits, Mortality Multiplier | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, market value of option | 90.14% | |
Weighted Average | Fixed indexed annuities | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, market value of option | 2.60% | 94.00% |
Fair value inputs, swap rates | 1.85% | 2.63% |
Fair value inputs, mortality multiplier | 80.00% | 80.00% |
Fair value inputs, surrender rates | 5.84% | 5.90% |
Fair value inputs, non performance spread | 0.25% | 0.03% |
Weighted Average | Fixed indexed annuities | Partial Withdrawls | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, surrender rates | 2.00% | 2.00% |
Weighted Average | Fixed indexed annuities | Option Cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, non performance spread | 2.16% | 2.18% |
Insurance Subsidiary | Market Approach | Equity securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 4,000,000 | |
Insurance Subsidiary | Income Approach Valuation Technique | Equity securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 3,000,000 | |
Insurance Subsidiary | Income Approach Valuation Technique | Other invested assets | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 14,000,000 | |
Insurance Subsidiary | Minimum | Market Approach | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs, Other Loan Recoveries | 84.00% | 77.12% |
Insurance Subsidiary | Maximum | Market Approach | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs, Other Loan Recoveries | 100.15% | 100.08% |
Loan Participation - JSN Jewelry, Inc. | Market Approach | Funds withheld for reinsurance liabilities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Reinsurance Receivables, Funds Withheld | $ 4,000,000 | |
FSRC | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 1,787,000,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Changes to Fair Value of Financial Instruments Level 3 (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | $ 1,714 | |||||||
Assets, Total Gains (Losses) Included in Earnings | 0 | $ 0 | ||||||
Assets, Total Gains (Losses) Included in AOCI | (8) | (32) | ||||||
Assets, Purchases | 492 | 622 | ||||||
Assets, Sales | 0 | 0 | ||||||
Assets, Settlements | 74 | 120 | ||||||
Assets, Net transfer In (Out) of Level 3 | (163) | (294) | ||||||
Balance at End of Period | 1,961 | 1,961 | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | $ 3,544 | 2,915 | $ 3,230 | |||||
Available-for-sale Securities | 23,362 | 23,362 | $ 21,109 | |||||
Liabilities, Total Gains (Losses) Included in Earnings | 274 | 142 | 542 | 27 | ||||
Liabilities, Total Gains (Losses) Included in AOCI | 5 | 0 | 8 | (2) | ||||
Liabilities, Purchases | 0 | 0 | 0 | 0 | ||||
Liabilities, Sales | 0 | 0 | 0 | 0 | ||||
Liabilities, Settlements | 922 | 24 | 965 | 28 | ||||
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | ||||
Balance at End of Period | 4,745 | 3,081 | 4,745 | 3,081 | ||||
FIA embedded derivatives, included in contractholder funds | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 2,720 | 2,179 | 2,476 | |||||
Liabilities, Total Gains (Losses) Included in Earnings | 214 | 141 | 458 | 43 | ||||
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 | ||||
Liabilities, Purchases | 0 | 0 | 0 | 0 | ||||
Liabilities, Sales | 0 | 0 | 0 | 0 | ||||
Liabilities, Settlements | 0 | 0 | 0 | 0 | ||||
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | ||||
Balance at End of Period | 2,934 | 2,320 | 2,934 | 2,320 | ||||
Future Policy Benefits | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 797 | 712 | 725 | |||||
Liabilities, Total Gains (Losses) Included in Earnings | 63 | 1 | 89 | (17) | ||||
Liabilities, Total Gains (Losses) Included in AOCI | 5 | 0 | 8 | (2) | ||||
Liabilities, Purchases | 0 | 0 | 0 | 0 | ||||
Liabilities, Sales | 0 | 0 | 0 | 0 | ||||
Liabilities, Settlements | 922 | 24 | 965 | 28 | ||||
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | ||||
Balance at End of Period | 1,787 | 737 | 1,787 | 737 | ||||
Preferred shares reimbursement feature embedded derivative | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 24 | 24 | 29 | |||||
Liabilities, Total Gains (Losses) Included in Earnings | (5) | |||||||
Liabilities, Total Gains (Losses) Included in AOCI | 0 | |||||||
Liabilities, Purchases | 0 | |||||||
Liabilities, Sales | 0 | |||||||
Liabilities, Settlements | 0 | |||||||
Liabilities, Net transfer In (Out) of Level 3 | 0 | |||||||
Asset-backed securities | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 508 | 301 | 444 | |||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | ||||
Assets, Total Gains (Losses) Included in AOCI | 8 | 0 | 13 | (2) | ||||
Assets, Purchases | 262 | 152 | 376 | 180 | ||||
Assets, Sales | 0 | 0 | 0 | 0 | ||||
Assets, Settlements | (12) | (1) | (43) | (7) | ||||
Assets, Net transfer In (Out) of Level 3 | (30) | (122) | (54) | (253) | ||||
Balance at End of Period | 736 | 330 | 736 | 330 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 5,507 | 5,507 | 4,832 | |||||
Commercial mortgage-backed securities | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 68 | 42 | 67 | |||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | ||||
Assets, Total Gains (Losses) Included in AOCI | 2 | (1) | 4 | (2) | ||||
Assets, Purchases | 1 | 12 | 1 | 12 | ||||
Assets, Sales | 0 | 0 | 0 | 0 | ||||
Assets, Settlements | 8 | 0 | 9 | 6 | ||||
Assets, Net transfer In (Out) of Level 3 | (13) | 7 | (13) | 7 | ||||
Balance at End of Period | 50 | 60 | 50 | 60 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 2,874 | 2,874 | 2,537 | |||||
Corporates | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 1,209 | 1,216 | 1,231 | |||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | (1) | 0 | ||||
Assets, Total Gains (Losses) Included in AOCI | 26 | (8) | 50 | (28) | ||||
Assets, Purchases | 114 | 99 | 114 | 199 | ||||
Assets, Sales | (4) | 0 | (25) | 0 | ||||
Assets, Settlements | (25) | (69) | (60) | (102) | ||||
Assets, Net transfer In (Out) of Level 3 | (1) | (48) | 10 | (48) | ||||
Balance at End of Period | 1,319 | 1,190 | 1,319 | 1,190 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 11,422 | 11,422 | 10,381 | |||||
Hybrids | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 10 | 10 | 10 | |||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | ||||
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 | ||||
Assets, Purchases | 0 | 0 | 0 | 0 | ||||
Assets, Sales | 0 | 0 | 0 | 0 | ||||
Assets, Settlements | 0 | 0 | 0 | 0 | ||||
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | ||||
Balance at End of Period | 10 | 10 | 10 | 10 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 1,031 | 1,031 | 901 | |||||
Municipals | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 38 | 37 | 37 | |||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | ||||
Assets, Total Gains (Losses) Included in AOCI | 1 | 0 | 2 | (1) | ||||
Assets, Purchases | 0 | 0 | 0 | 0 | ||||
Assets, Sales | 0 | 0 | 0 | 0 | ||||
Assets, Settlements | 0 | 0 | 0 | 0 | ||||
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | ||||
Balance at End of Period | 39 | 37 | 39 | 37 | ||||
Residential mortgage-backed securities | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 619 | 65 | 614 | |||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | ||||
Assets, Total Gains (Losses) Included in AOCI | 14 | 2 | 30 | 2 | ||||
Assets, Purchases | 6 | 179 | 13 | 179 | ||||
Assets, Sales | 0 | 0 | 0 | 0 | ||||
Assets, Settlements | 22 | 4 | 40 | 5 | ||||
Assets, Net transfer In (Out) of Level 3 | (29) | 0 | (29) | 0 | ||||
Balance at End of Period | 588 | 242 | 588 | 242 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 1,041 | 1,041 | 1,031 | |||||
Foreign Governments | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 16 | 16 | 16 | |||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | (1) | ||||
Assets, Total Gains (Losses) Included in AOCI | 1 | 0 | 1 | 0 | ||||
Assets, Purchases | 0 | 0 | 0 | 0 | ||||
Assets, Sales | 0 | 0 | 0 | 0 | ||||
Assets, Settlements | 0 | 0 | 0 | 0 | ||||
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | ||||
Balance at End of Period | 17 | 16 | 17 | 16 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 148 | 148 | 121 | |||||
Equity securities | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 20 | 4 | 4 | |||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 1 | ||||
Assets, Total Gains (Losses) Included in AOCI | (2) | (1) | (1) | (1) | ||||
Assets, Purchases | 0 | 0 | 0 | 0 | ||||
Assets, Sales | 0 | 0 | 0 | 0 | ||||
Assets, Settlements | 0 | 0 | 0 | 0 | ||||
Assets, Net transfer In (Out) of Level 3 | (15) | 0 | 0 | 0 | ||||
Balance at End of Period | 3 | 3 | 3 | 3 | ||||
Available-for-sale embedded derivative | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 16 | 17 | 14 | |||||
Assets, Total Gains (Losses) Included in Earnings | 2 | 0 | 4 | 0 | ||||
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 | ||||
Assets, Purchases | 0 | 0 | 0 | 0 | ||||
Assets, Sales | 0 | 0 | 0 | 0 | ||||
Assets, Settlements | 0 | 0 | 0 | 0 | ||||
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | ||||
Balance at End of Period | 18 | 17 | 18 | 17 | ||||
Affiliate bank loans [Member] | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Assets, Total Gains (Losses) Included in Earnings | 0 | |||||||
Assets, Total Gains (Losses) Included in AOCI | 0 | |||||||
Assets, Purchases | 50 | |||||||
Assets, Sales | 0 | |||||||
Assets, Settlements | 0 | |||||||
Assets, Net transfer In (Out) of Level 3 | 0 | |||||||
Balance at End of Period | 50 | 50 | ||||||
Bank Loan Obligations [Member] | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 0 | |||||||
Assets, Total Gains (Losses) Included in Earnings | 0 | |||||||
Assets, Total Gains (Losses) Included in AOCI | 0 | |||||||
Assets, Purchases | 50 | |||||||
Assets, Sales | 0 | |||||||
Assets, Settlements | 0 | |||||||
Assets, Net transfer In (Out) of Level 3 | 0 | |||||||
Balance at End of Period | 50 | 50 | ||||||
Funds withheld for reinsurance receivables, at fair value | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 7 | 6 | 4 | |||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | ||||
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 | ||||
Assets, Purchases | 0 | 0 | 5 | 2 | ||||
Assets, Sales | (1) | 0 | 1 | 0 | ||||
Assets, Settlements | 0 | 0 | 0 | 0 | ||||
Assets, Net transfer In (Out) of Level 3 | (6) | 0 | (8) | 0 | ||||
Balance at End of Period | 0 | 6 | 0 | 6 | ||||
Total assets at level 3 [Member] | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 2,536 | 2,466 | ||||||
Assets, Total Gains (Losses) Included in Earnings | 2 | 3 | ||||||
Assets, Total Gains (Losses) Included in AOCI | 50 | 99 | ||||||
Assets, Purchases | 383 | 509 | ||||||
Assets, Sales | 5 | 26 | ||||||
Assets, Settlements | 67 | 152 | ||||||
Assets, Net transfer In (Out) of Level 3 | (94) | (94) | ||||||
Balance at End of Period | 2,805 | 2,805 | ||||||
Affiliated Entity | Bank Loan Obligations [Member] | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance at Beginning of Period | 25 | 25 | ||||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | ||||||
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | ||||||
Assets, Purchases | 0 | 0 | ||||||
Assets, Sales | 0 | 0 | ||||||
Assets, Settlements | 0 | 0 | ||||||
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | ||||||
Balance at End of Period | 25 | 25 | ||||||
Fair Value | Asset-backed securities | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 5,507 | 5,507 | 4,832 | |||||
Fair Value | Commercial mortgage-backed securities | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 2,874 | 2,874 | 2,537 | |||||
Fair Value | Corporates | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 11,422 | 11,422 | 10,381 | |||||
Fair Value | Hybrids | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 1,031 | 1,031 | 901 | |||||
Fair Value | Municipals | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 1,298 | 1,298 | 1,187 | |||||
Fair Value | Residential mortgage-backed securities | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 1,041 | 1,041 | 1,031 | |||||
Fair Value | Foreign Governments | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 148 | 148 | 121 | |||||
Fair Value | Funds withheld for reinsurance receivables, at fair value | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 1,904 | 1,904 | 749 | |||||
Fair Value | Other invested assets | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 43 | 43 | ||||||
Fair Value | Fixed indexed annuities | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 2,934 | 2,934 | 2,476 | |||||
Fair Value | Preferred shares reimbursement feature embedded derivative | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 24 | 24 | $ 29 | |||||
Fair Value | Preferred shares reimbursement feature embedded derivative | Preferred shares reimbursement feature embedded derivative | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Available-for-sale Securities | 24 | 24 | $ 24 | 24 | $ 27 | $ 24 | $ 23 | |
Liabilities, Total Gains (Losses) Included in Earnings | (3) | 0 | 1 | |||||
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | |||||
Liabilities, Purchases | 0 | 0 | 0 | |||||
Liabilities, Sales | 0 | 0 | 0 | |||||
Liabilities, Settlements | 0 | 0 | 0 | |||||
Liabilities, Net transfer In (Out) of Level 3 | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - NAV (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Level 1 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments, Residential Mortgage Loans, Fair Value Disclosure | $ 0 | $ 0 |
Level 2 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments, Residential Mortgage Loans, Fair Value Disclosure | 0 | 0 |
Level 3 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments, Residential Mortgage Loans, Fair Value Disclosure | 289 | 187 |
Fair Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments, Residential Mortgage Loans, Fair Value Disclosure | 289 | 187 |
Carrying Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments, Residential Mortgage Loans, Fair Value Disclosure | $ 284 | $ 185 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Narrative (Detail) - USD ($) | Nov. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | $ 274,000,000 | $ 142,000,000 | $ 542,000,000 | $ 27,000,000 | ||
Assets, net transfer in (out) of Level 3 | (163,000,000) | (294,000,000) | ||||
Asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, net transfer in (out) of Level 3 | (30,000,000) | (122,000,000) | (54,000,000) | (253,000,000) | ||
Commercial mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, net transfer in (out) of Level 3 | (13,000,000) | 7,000,000 | (13,000,000) | 7,000,000 | ||
Corporates | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, net transfer in (out) of Level 3 | (1,000,000) | (48,000,000) | 10,000,000 | (48,000,000) | ||
Hybrids | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, net transfer in (out) of Level 3 | 0 | 0 | 0 | 0 | ||
States, municipalities and political subdivisions | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, net transfer in (out) of Level 3 | 0 | 0 | 0 | 0 | ||
Residential mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, net transfer in (out) of Level 3 | (29,000,000) | 0 | (29,000,000) | 0 | ||
Foreign Governments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, net transfer in (out) of Level 3 | 0 | 0 | 0 | 0 | ||
Equity securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Alternative Investment | 56,000,000 | 56,000,000 | $ 50,000,000 | |||
Assets, net transfer in (out) of Level 3 | (15,000,000) | $ 0 | 0 | $ 0 | ||
Preferred Stock | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Preferred Stock, Call Features, Minimum Term | 5 years | |||||
Available-for-sale Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets held by insurance regulators | $ 16,595,000,000 | 16,595,000,000 | $ 19,930,000,000 | |||
Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Risk Margin To Reflect Uncertainty | 0.00% | |||||
Maximum | Market Approach | Asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 106.58% | 102.00% | ||||
Maximum | Market Approach | Corporates | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 119.21% | 104.62% | ||||
Maximum | Market Approach | Hybrids | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 101.95% | 96.60% | ||||
Maximum | Market Approach | States, municipalities and political subdivisions | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 118.57% | 111.23% | ||||
Maximum | Market Approach | Residential mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 106.45% | 100.99% | ||||
Maximum | Market Approach | Foreign Governments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 106.03% | 99.01% | ||||
Maximum | Income Approach Valuation Technique | Asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 96.07% | |||||
Maximum | Income Approach Valuation Technique | Commercial mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 126.19% | 117.72% | ||||
Maximum | Income Approach Valuation Technique | Corporates | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 106.04% | 113.25% | ||||
Maximum | Income Approach Valuation Technique | Future Policy Benefits, Nonperformance Risk Spread [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, black scholes model | 0.10% | 0.22% | ||||
Maximum | Third Party Valuation Technique | Asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 99.33% | 99.29% | ||||
Weighted Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Risk Margin To Reflect Uncertainty | 0.00% | |||||
Credit Spread | $ 0.0410 | $ 0.0514 | ||||
Yield Volatility | 0.00% | 0.00% | ||||
Weighted Average | Market Approach | Asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 100.79% | 99.77% | ||||
Weighted Average | Market Approach | Other invested assets | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 100.00% | 100.00% | ||||
Fair Value Input Recovery Rate | 7.15% | |||||
Weighted Average | Market Approach | Corporates | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 102.29% | 97.80% | ||||
Weighted Average | Market Approach | Hybrids | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 101.95% | 96.60% | ||||
Weighted Average | Market Approach | States, municipalities and political subdivisions | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 118.57% | 111.23% | ||||
Weighted Average | Market Approach | Residential mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 106.07% | 100.73% | ||||
Weighted Average | Market Approach | Foreign Governments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 103.95% | 98.58% | ||||
Weighted Average | Income Approach Valuation Technique | Asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 96.07% | |||||
Weighted Average | Income Approach Valuation Technique | Other invested assets | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, black scholes model | 100.00% | 100.00% | ||||
Weighted Average | Income Approach Valuation Technique | Commercial mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 126.19% | 117.72% | ||||
Weighted Average | Income Approach Valuation Technique | Corporates | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 103.41% | 98.86% | ||||
Weighted Average | Income Approach Valuation Technique | Equity securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value Input Recovery Rate | 4.42% | |||||
Weighted Average | Income Approach Valuation Technique | Future Policy Benefits, Nonperformance Risk Spread [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, black scholes model | 8.00% | 0.18% | ||||
Weighted Average | Third Party Valuation Technique | Asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 34.08% | 23.05% | ||||
Weighted Average | Third Party Valuation Technique | Commercial mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 87.98% | 85.46% | ||||
Weighted Average | Matrix Pricing Valuation | Funds withheld for reinsurance liabilities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, black scholes model | 100.00% | |||||
Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Risk Margin To Reflect Uncertainty | 0.00% | |||||
Minimum | Market Approach | Asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 89.87% | 97.00% | ||||
Minimum | Market Approach | Corporates | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 80.47% | 74.63% | ||||
Minimum | Market Approach | Hybrids | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 101.95% | 96.60% | ||||
Minimum | Market Approach | States, municipalities and political subdivisions | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 118.57% | 111.23% | ||||
Minimum | Market Approach | Residential mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 93.86% | 89.80% | ||||
Minimum | Market Approach | Foreign Governments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 103.01% | 98.38% | ||||
Minimum | Income Approach Valuation Technique | Asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 96.07% | |||||
Minimum | Income Approach Valuation Technique | Commercial mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 126.19% | 117.72% | ||||
Minimum | Income Approach Valuation Technique | Corporates | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 101.67% | 91.74% | ||||
Minimum | Income Approach Valuation Technique | Future Policy Benefits, Nonperformance Risk Spread [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, black scholes model | 0.00% | 0.00% | ||||
Minimum | Third Party Valuation Technique | Asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, quoted prices | 0.00% | 0.00% | ||||
Affiliated Entity | Maximum | Market Approach | Commercial mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value Inputs, Other Loan Recoveries | 100.15% | 100.08% | ||||
Affiliated Entity | Minimum | Market Approach | Commercial mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value Inputs, Other Loan Recoveries | 84.00% | 77.12% | ||||
Future Policy Benefits | Maximum | Income Approach Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortality, Morbidity and Surrender Rate Assumption | 0.02 | |||||
Fair value inputs, swap rates | 55.00% | |||||
Fair value inputs, mortality multiplier | 4.00% | |||||
Fair value inputs, non performance spread | 4.58% | |||||
Risk Margin To Reflect Uncertainty | 0.62% | |||||
Future Policy Benefits | Weighted Average | Income Approach Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortality, Morbidity and Surrender Rate Assumption | .08 | |||||
Fair value inputs, swap rates | 20.93% | |||||
Fair value inputs, mortality multiplier | 1.43% | |||||
Fair value inputs, non performance spread | 98.00% | |||||
Risk Margin To Reflect Uncertainty | 32.00% | |||||
Future Policy Benefits | Minimum | Income Approach Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortality, Morbidity and Surrender Rate Assumption | 0 | |||||
Fair value inputs, swap rates | 0.00% | |||||
Fair value inputs, mortality multiplier | 0.00% | |||||
Fair value inputs, non performance spread | 0.00% | |||||
Risk Margin To Reflect Uncertainty | 26.00% | |||||
Fixed indexed annuities | Maximum | Income Approach Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, market value of option | 31.74% | 31.06% | ||||
Fair value inputs, swap rates | 1.96% | 2.71% | ||||
Fair value inputs, mortality multiplier | 80.00% | 80.00% | ||||
Fair value inputs, surrender rates | 75.00% | 75.00% | ||||
Fair value inputs, non performance spread | 0.25% | 0.03% | ||||
Fixed indexed annuities | Maximum | Partial Withdrawls | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, surrender rates | 2.50% | 2.50% | ||||
Fixed indexed annuities | Maximum | Option Cost | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, non performance spread | 16.61% | 16.61% | ||||
Fixed indexed annuities | Weighted Average | Income Approach Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, market value of option | 2.60% | 94.00% | ||||
Fair value inputs, swap rates | 1.85% | 2.63% | ||||
Fair value inputs, mortality multiplier | 80.00% | 80.00% | ||||
Fair value inputs, surrender rates | 5.84% | 5.90% | ||||
Fair value inputs, non performance spread | 0.25% | 0.03% | ||||
Fixed indexed annuities | Weighted Average | Partial Withdrawls | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, surrender rates | 2.00% | 2.00% | ||||
Fixed indexed annuities | Weighted Average | Option Cost | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, non performance spread | 2.16% | 2.18% | ||||
Fixed indexed annuities | Minimum | Income Approach Valuation Technique | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, market value of option | 0.00% | 0.00% | ||||
Fair value inputs, swap rates | 1.75% | 2.57% | ||||
Fair value inputs, mortality multiplier | 80.00% | 80.00% | ||||
Fair value inputs, surrender rates | 0.50% | 0.05% | ||||
Fair value inputs, non performance spread | 0.25% | 0.03% | ||||
Fixed indexed annuities | Minimum | Partial Withdrawls | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, surrender rates | 1.00% | 1.00% | ||||
Fixed indexed annuities | Minimum | Option Cost | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, non performance spread | 0.18% | 0.01% | ||||
Private Equity Funds [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Alternative Investment | $ 875,000,000 | $ 875,000,000 | $ 510,000,000 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Gross Transfers Into and Out of Certain Fair Value Levels by Asset Class (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 | $ 18 | $ 0 |
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 147 | 174 | 176 | 305 |
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 55 | 41 | 71 | 56 |
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 53 | 11 | 80 | 11 |
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 147 | 174 | 174 | 305 |
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | 2 | 30 | 7 | 45 |
Asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | 0 |
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 82 | 122 | 106 | 253 |
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 52 | 0 | 52 | 0 |
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 52 | 0 | 52 | 0 |
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 82 | 122 | 106 | 253 |
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | 0 | 0 | 0 | 0 |
Commercial mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | 0 |
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 14 | 1 | 14 | 1 |
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 1 | 8 | 1 | 8 |
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 1 | 8 | 1 | 8 |
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 14 | 1 | 14 | 1 |
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | 0 | 0 | 0 | 0 |
Corporates | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | 0 |
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 1 | 51 | 1 | 51 |
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 0 | 3 | 11 | 3 |
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 0 | 3 | 11 | 3 |
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 1 | 51 | 1 | 51 |
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | 0 | 0 | 0 | 0 |
Hybrids | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | 0 |
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 0 | 0 | 0 | 0 |
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 0 | 5 | 0 | 20 |
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 0 | 0 | 0 | 0 |
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 0 | 0 | 0 | 0 |
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | 0 | 5 | 0 | 20 |
Hybrids | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 18 | 0 |
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 15 | 0 | 18 | 0 |
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 2 | 25 | 7 | 25 |
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 0 | 0 | 16 | 0 |
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 15 | 0 | 16 | 0 |
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | 2 | $ 25 | 7 | $ 25 |
Funds withheld for reinsurance receivables, at fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | ||
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 6 | 8 | ||
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 0 | 0 | ||
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 0 | 0 | ||
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 6 | 8 | ||
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | 0 | 0 | ||
Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | ||
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 29 | 29 | ||
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 0 | 0 | ||
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 0 | 0 | ||
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 29 | 29 | ||
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | $ 0 | $ 0 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Carrying amount | $ 1,421 | $ 1,359 |
FGL [Member] | Trademarks and Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | $ 13 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |
FGL [Member] | Licensing Agreements [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Carrying amount | $ 6 |
Intangible Assets - Summary of
Intangible Assets - Summary of Changes in Carrying Amounts of Intangible Assets Including DAC, VOBA , and DSI (Detail) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Deferred Sale Inducement Cost | $ 208 | $ 70 | $ 149 | $ 10 |
VOBA | ||||
VOBA at beginning of period | 866 | 821 | ||
Deferrals | 0 | 0 | ||
Amortization | (51) | (51) | ||
Interest | 9 | 10 | ||
Unlocking | 1 | 1 | ||
Adjustment for net unrealized investment (gains) losses | (121) | 61 | ||
VOBA at end of period | 704 | 842 | ||
Deferred Sales Inducement Cost, Unrealized Gain (Loss) on Investment | (16) | 3 | ||
Deferred Sales Inducement Cost, Unlocking Adjustment | (1) | 0 | ||
Deferred Sales Inducement Cost, Amortization Expense, Accrued Interest | 2 | 0 | ||
Deferred Sales Inducement Cost, Amortization Expense | (3) | (3) | ||
Deferred Sale Inducement Cost, Capitalization | 77 | 60 | ||
DAC | ||||
DAC at beginning of period | 509 | 158 | 344 | 22 |
Deferrals | 194 | 134 | ||
Amortization | (3) | (2) | ||
Interest | 5 | 1 | ||
Unlocking | (1) | 0 | ||
Adjustment for net unrealized investment (gains) losses | (30) | 3 | ||
DAC at end of period | 509 | 158 | 344 | 22 |
Total | ||||
Total VOBA and DAC at beginning of period | 1,421 | 1,070 | $ 1,359 | $ 853 |
Deferrals | 271 | 194 | ||
Amortization | (57) | (56) | ||
Unlocking | (1) | 1 | ||
Adjustment for net unrealized investment (gains) losses | (167) | 67 | ||
Interest | $ 16 | $ 11 | ||
Document Period End Date | Jun. 30, 2019 |
Intangible Assets - Definite Li
Intangible Assets - Definite Lived Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, net | $ 1,421 | $ 1,359 |
FGL [Member] | Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 16 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 3 | |
Finite-Lived Intangible Assets, Net | $ 13 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |
FGL [Member] | Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | $ 6 | |
Licensing Agreements [Member] | FGL [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, net | $ 6 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Unearned Revenue, Net | $ (34) | $ (22) | |
Goodwill | $ 467 | $ 467 | |
Document Period End Date | Jun. 30, 2019 | ||
Deferred Sales Inducement Cost, Unrealized Gain (Loss) on Investment | $ (16) | 3 | |
Unearned Revenue, Additions | (19) | (19) | |
Unearned Revenue, Amortization Expense | 2 | 11 | |
Interest Expense | (1) | ||
Unearned Revenue, Unrealized Gain (Loss) on Investment | $ 25 | (14) | |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Value of Business Acquired, Assumption, Interest Rate to Calculate Accretion on Intangible Asset | 0.05% | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Value of Business Acquired, Assumption, Interest Rate to Calculate Accretion on Intangible Asset | 4.01% | ||
Voba [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cumulative Adjustments For Net Unrealized Investment Gains | $ 46 | (43) | |
Dac [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cumulative Adjustments For Net Unrealized Investment Gains | 26 | (2) | |
Deferred Sales Inducement Cost, Unrealized Gain (Loss) on Investment | $ (13) | $ 3 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense for VOBA in Future Fiscal Periods (Detail) $ in Millions | Jun. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | $ 35 |
2020 | 78 |
2021 | 89 |
2022 | 84 |
2023 | 75 |
Thereafter | $ 389 |
Debt - Narrative (Detail)
Debt - Narrative (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 542 | |
Long-term Debt | $ 541 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 0 | $ 0 |
Interest rate if revolver drawn | 5.15% | 5.27% |
Remaining borrowing capacity | $ 250 | $ 250 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 542 | $ 542 | |||
Long-term Debt | $ 541 | ||||
Interest expense excluding amortization | 7 | $ 8 | 15 | $ 13 | |
Amortization of debt issuance costs | 1 | 0 | 1 | 0 | |
Gain on Extinguishment of Debt | 0 | 0 | |||
Gain (Loss) on Extinguishment of Debt | (2) | 0 | (2) | ||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | 0 | 0 | $ 0 | ||
Interest expense excluding amortization | 0 | 1 | 0 | 2 | |
Amortization of debt issuance costs | $ 0 | $ 0 | $ 0 | $ 0 |
Equity - Schedule of Dividends
Equity - Schedule of Dividends (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | May 28, 2019 | Mar. 18, 2019 |
Accelerated Share Repurchases [Line Items] | ||
Common stock, shares outstanding (in shares) | 221,661 | 221,661 |
Cash dividend per common share (in dollars per share) | $ 0.01 | $ 0.01 |
Total cash paid | $ 2 | $ 2 |
Equity - Schedule of Dividend_2
Equity - Schedule of Dividends Declared (Details) $ / shares in Units, shares in Thousands, shareholder in Thousands, $ in Thousands | Dec. 15, 2020 | Aug. 07, 2019$ / shares | Jul. 01, 2019USD ($)shares | Jun. 15, 2019shares | May 28, 2019$ / shares | Apr. 01, 2019USD ($)shares | Mar. 18, 2019$ / shares | Mar. 15, 2019shares | Jul. 01, 2018USD ($)shares | Jun. 15, 2018shareholder | Apr. 01, 2018USD ($)shares | Mar. 15, 2018shareholder | Jun. 30, 2019USD ($)shares | Mar. 31, 2019USD ($) | Jun. 30, 2019USD ($)shares |
Class of Stock [Line Items] | |||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 150,000 | $ 150,000 | |||||||||||||
Cash dividend per common share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||||||||
Stock Repurchased During Period, Shares | shares | 148 | 3,876 | |||||||||||||
Stock Repurchased During Period, Value | $ 1,000 | $ (30,000) | $ 31,000 | ||||||||||||
Total Stock Repurchased During Period, Shares | shares | 4,476 | ||||||||||||||
Total Stock Repurchased During Period, Value | $ 35,000 | ||||||||||||||
Preferred Stock | Series A Cumulative Preferred Stock [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of Shareholders | 304 | 298 | 282 | 277 | |||||||||||
Total cash paid | $ 0 | ||||||||||||||
Total shares paid in kind (in thousands) | shares | 6 | ||||||||||||||
Preferred Stock | Series B Cumulative Preferred Stock [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of Shareholders | 110 | 108 | 102 | 101 | |||||||||||
Total cash paid | $ 0 | ||||||||||||||
Total shares paid in kind (in thousands) | shares | 2 | ||||||||||||||
Subsequent Event [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Cash dividend per common share (in dollars per share) | $ / shares | $ 0.01 | ||||||||||||||
Stock Repurchase Program Expiration Date | Dec. 15, 2020 | ||||||||||||||
Subsequent Event [Member] | Preferred Stock | Series A Cumulative Preferred Stock [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Total cash paid | $ 0 | $ 0 | $ 0 | ||||||||||||
Total shares paid in kind (in thousands) | shares | 6 | 5 | 5 | ||||||||||||
Subsequent Event [Member] | Preferred Stock | Series B Cumulative Preferred Stock [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Total cash paid | $ 0 | $ 0 | $ 0 | ||||||||||||
Total shares paid in kind (in thousands) | shares | 2 | 2 | 1 |
Stock Compensation - Narrative
Stock Compensation - Narrative (Details) - USD ($) | Jun. 30, 2019 | May 20, 2019 | Feb. 26, 2019 | May 15, 2018 | Mar. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Aug. 08, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Document Period End Date | Jun. 30, 2019 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 6,878,000 | 6,878,000 | ||||||
2017 Stock Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for grant (in shares) | 15,006,000 | |||||||
FGL Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 2,549,000 | |||||||
Vested and exercisable at end of period (in shares) | 493,000 | |||||||
Equity Option [Member] | FGL Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Options Fair Value At Grant Date | $ 3,000,000 | $ 1,000,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 2,000,000 | $ 2,000,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 6 years | |||||||
Restricted Stock Units (RSUs) [Member] | FGL Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 6.82 | $ 6.82 | $ 0 | |||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Options Fair Value At Grant Date | $ 1,000,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 147,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 6.82 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 147,000 | 147,000 | 0 | |||||
Phantom Share Units (PSUs) [Member] | Management Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 9.17 | $ 9.17 | $ 8.95 | |||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Options Fair Value At Grant Date | $ 4,000,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 424,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 8.64 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (59,000) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 10 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (82,000) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 8.96 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 639,000 | 639,000 | 356,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities | $ 1 | $ 1 | ||||||
Officer [Member] | Equity Option [Member] | FGL Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 850,000 | 1,699,000 | ||||||
Director [Member] | Restricted Stock Units (RSUs) [Member] | FGL Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 147,000 | |||||||
Management [Member] | Phantom Share Units (PSUs) [Member] | Management Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 424,000 | |||||||
FGL Holdings [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share Price | $ 8.40 | $ 8.40 | ||||||
Service Vesting Mechanism [Member] | Equity Option [Member] | FGL Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 485,000 | |||||||
Service and Return on Equity Performance Vesting Mechanism [Member] | Equity Option [Member] | FGL Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 607,000 | |||||||
Service and Stock Price Performance Vesting Mechanism [Member] | Equity Option [Member] | FGL Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 607,000 |
Stock Compensation - Schedule o
Stock Compensation - Schedule of Stock Based Compensation Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Document Period End Date | Jun. 30, 2019 | |
Related tax benefit | $ 0 | $ 1 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock compensation expense | 2 | 2 |
Phantom Share Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock compensation expense | 2 | 3 |
Management Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock compensation expense | 1 | 1 |
Management Incentive Plan [Member] | Phantom Share Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock compensation expense | 1 | |
FGL Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock compensation expense | 1 | 2 |
FGL Incentive Plan [Member] | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock compensation expense | 1 | 2 |
FGL Incentive Plan [Member] | Restricted shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock compensation expense | $ 0 | $ 0 |
Stock Compensation - Summary of
Stock Compensation - Summary of Unrecognized Stock Compensation Expense (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 20 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years |
FGL Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 17 |
FGL Incentive Plan [Member] | Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 16 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years |
FGL Incentive Plan [Member] | Restricted shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 1 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year |
Management Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 3 |
Management Incentive Plan [Member] | Phantom Share Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 3 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years |
Stock Compensation - Summary _2
Stock Compensation - Summary of Stock Options Outstanding and Related Activity (Details) - $ / shares shares in Thousands | Jun. 30, 2019 | May 20, 2019 | Feb. 26, 2019 | May 15, 2018 | Jun. 30, 2019 | Dec. 31, 2018 |
FGL Incentive Plan [Member] | ||||||
Options (in shares): | ||||||
Stock options outstanding at beginning of period (in shares) | 13,007 | |||||
Granted (in shares) | 2,549 | |||||
Exercised (in shares) | 0 | |||||
Forfeited or expired (in shares) | (3,462) | |||||
Stock options outstanding at end (in shares) | 12,094 | 12,094 | ||||
Vested and exercisable at end of period (in shares) | 493 | |||||
Vested or projected to vest (in shares) | 12,094 | 12,094 | ||||
Weighted Average Exercise Price (in dollars per share): | ||||||
Stock options outstanding at beginning of period (USD per share) | $ 9.68 | |||||
Granted (USD per share) | 10 | |||||
Exercised (USD per share) | 0 | |||||
Forfeited or expired (USD per share) | (10) | |||||
Stock options outstanding at end of period (USD per share) | $ 9.65 | 9.65 | ||||
Vested and exercisable at end of period (USD per share) | 10 | |||||
Vested and projected to vest (in dollars per share) | $ 9.65 | $ 9.65 | ||||
Equity Option [Member] | Officer [Member] | FGL Incentive Plan [Member] | ||||||
Options (in shares): | ||||||
Granted (in shares) | 850 | 1,699 | ||||
Restricted Stock Units (RSUs) [Member] | FGL Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 147 | 147 | 0 | |||
Weighted Average Exercise Price (in dollars per share): | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 6.82 | $ 6.82 | $ 0 | |||
Granted (in shares) | 147 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 6.82 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 0 | |||||
Phantom Share Units (PSUs) [Member] | Management Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 639 | 639 | 356 | |||
Weighted Average Exercise Price (in dollars per share): | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 9.17 | $ 9.17 | $ 8.95 | |||
Granted (in shares) | 424 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 8.64 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (59) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 10 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (82) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 8.96 | |||||
Service Vesting Mechanism [Member] | Equity Option [Member] | FGL Incentive Plan [Member] | ||||||
Options (in shares): | ||||||
Granted (in shares) | 485 | |||||
Weighted Average Exercise Price (in dollars per share): | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.68 | |||||
Service and Return on Equity Performance Vesting Mechanism [Member] | Equity Option [Member] | FGL Incentive Plan [Member] | ||||||
Options (in shares): | ||||||
Granted (in shares) | 607 | |||||
Weighted Average Exercise Price (in dollars per share): | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | 1.74 | |||||
Service and Stock Price Performance Vesting Mechanism [Member] | Equity Option [Member] | FGL Incentive Plan [Member] | ||||||
Options (in shares): | ||||||
Granted (in shares) | 607 | |||||
Weighted Average Exercise Price (in dollars per share): | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.26 |
Stock Compensation - Assumption
Stock Compensation - Assumptions Used in Determination of Grant Date Fair Values Using Black-Scholes Option Pricing Model (Details) - Equity Option [Member] - FGL Incentive Plan [Member] | Feb. 26, 2019$ / shares |
Service Vesting Mechanism [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (USD per share) | $ 1.68 |
Risk-free interest rate | 2.48% |
Assumed dividend yield | 0.49% |
Expected option term | 5 years 9 months |
Volatility | 26.00% |
Service and Return on Equity Performance Vesting Mechanism [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (USD per share) | $ 1.74 |
Risk-free interest rate | 2.50% |
Assumed dividend yield | 0.49% |
Expected option term | 6 years |
Volatility | 26.00% |
Service and Stock Price Performance Vesting Mechanism [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (USD per share) | $ 1.26 |
Risk-free interest rate | 2.54% |
Assumed dividend yield | 0.49% |
share-based compensation arrangement by share-based payment award, fair value assumptions, contractual term | 7 years |
Volatility | 26.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Early Exercise Multiple | 2.8 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Cost of Equity | 10.50% |
Stock Compensation - Summary _3
Stock Compensation - Summary of Restricted Stock and Restricted Stock Units Outstanding and Related Activity (Details) - FGL Incentive Plan [Member] - Restricted shares shares in Thousands | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Shares: | |
Restricted shares outstanding at beginning of period (in shares) | shares | 0 |
Granted (in shares) | shares | 147 |
Vested (in shares) | shares | 0 |
Restricted shares outstanding at end of period (in shares) | shares | 147 |
Weighted Average Grant Date Fair Value (in dollars per share): | |
Average grant date fair value outstanding at beginning of period (USD per share) | $ / shares | $ 0 |
Average grant date fair value, Granted (USD per share) | $ / shares | 6.82 |
Average grant date fair value, Exercised (USD per share) | $ / shares | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | shares | 0 |
Average grant date fair value, Forfeited or Expired (USD per share) | $ / shares | $ 0 |
Average grant date fair value outstanding at end of period (USD per share) | $ / shares | $ 6.82 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Tax Credit Carryforward [Line Items] | ||||
Effective tax rate | 22.00% | 25.00% | 9.00% | 33.00% |
Valuation allowance | $ 30 | $ 30 | ||
Deferred Tax Assets, Gross | $ 180 | $ 180 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Investment Commitments (Details) - Commitment to Invest $ in Millions | Jun. 30, 2019USD ($) |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 1,108 |
Other invested assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 1,066 |
Equity securities | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 18 |
Fixed maturity securities, available-for-sale | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 21 |
Other assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 3 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) | Jun. 30, 2019USD ($) |
Loss Contingencies [Line Items] | |
Accrued amount of guaranty fund assessments | $ 2 |
Estimated future premium tax deductions | $ 2 |
Reinsurance - Effect of Reinsur
Reinsurance - Effect of Reinsurance on Premiums Earned, Benefits Incurred and Reserve Changes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Effects of Reinsurance [Line Items] | ||||
Document Period End Date | Jun. 30, 2019 | |||
Benefits and Other Changes in Insurance Policy Reserves: | ||||
Net | $ 268 | $ 217 | $ 607 | $ 178 |
Traditional life insurance premiums | ||||
Premiums and other considerations: | ||||
Direct | 51 | 58 | 108 | 118 |
Assumed | 0 | 0 | 0 | 0 |
Ceded | (43) | (43) | 84 | (85) |
Net | 8 | 15 | 24 | 33 |
Benefits and Other Changes in Insurance Policy Reserves: | ||||
Direct | 359 | 276 | 731 | 317 |
Assumed | (39) | (5) | (19) | (26) |
Ceded | (52) | (54) | (105) | (113) |
Net | $ 268 | $ 217 | $ 607 | $ 178 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) | Jun. 28, 2019USD ($) | Dec. 28, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Ceded Credit Risk [Line Items] | |||||||
Document Period End Date | Jun. 30, 2019 | ||||||
Reinsurance, Loss on Uncollectible Accounts in Period, Amount | $ 0 | $ 0 | $ 0 | $ 0 | |||
Reinsurance Risk Charge Fee | $ 4 | $ 4,000,000 | |||||
Number of policies reinsured by foreign company not engaged in insurance | 0 | 0 | |||||
Funds withheld for reinsurance receivables, at fair value | $ 1,922,000,000 | $ 1,922,000,000 | $ 757,000,000 | ||||
Funds Held under Reinsurance Agreements, Liability | 839,000,000 | 839,000,000 | 722,000,000 | ||||
Liability for Future Policy Benefit, before Reinsurance | 5,641,000,000 | 5,641,000,000 | $ 4,641,000,000 | ||||
Life and Annuity Insurance Product Line | |||||||
Ceded Credit Risk [Line Items] | |||||||
Ceded | 0 | $ 0 | 0 | $ 0 | |||
Reinsurance Retention Policy, Amount Retained | $ 185,000,000 | $ 758 | |||||
Fixed indexed annuities | |||||||
Ceded Credit Risk [Line Items] | |||||||
Reinsurance Retention Policy, Amount Retained | $ 1,000,000,000 | $ 4,000,000,000 | |||||
FSRC | |||||||
Ceded Credit Risk [Line Items] | |||||||
Funds withheld for reinsurance receivables, at fair value | 307,000,000 | 307,000,000 | |||||
Funds Held under Reinsurance Agreements, Liability | 278,000,000 | 278,000,000 | |||||
F&G Re [Member] | |||||||
Ceded Credit Risk [Line Items] | |||||||
Funds withheld for reinsurance receivables, at fair value | 1,615,000,000 | 1,615,000,000 | |||||
Funds Held under Reinsurance Agreements, Liability | 1,509,000,000 | 1,509,000,000 | |||||
Liability for Future Policy Benefit, before Reinsurance | $ 896 | $ 896 | |||||
2013 [Member] | Life and Annuity Insurance Product Line | |||||||
Ceded Credit Risk [Line Items] | |||||||
Reinsured risk | 40.00% | ||||||
2001 Through 2012 [Member] | Life and Annuity Insurance Product Line | |||||||
Ceded Credit Risk [Line Items] | |||||||
Reinsured risk | 45.00% | ||||||
2000 And Prior [Member] | Life and Annuity Insurance Product Line | |||||||
Ceded Credit Risk [Line Items] | |||||||
Reinsured risk | 63.00% | ||||||
Minimum | Fixed indexed annuities | |||||||
Ceded Credit Risk [Line Items] | |||||||
Reinsured risk | 80.00% | ||||||
Maximum | Fixed indexed annuities | |||||||
Ceded Credit Risk [Line Items] | |||||||
Reinsured risk | 90.00% |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) shares in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 17, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Related Party Transaction [Line Items] | |||||||
Document Period End Date | Jun. 30, 2019 | ||||||
Related Party Transactions, Gain (Loss) | $ 0 | $ 0 | $ 0 | $ 0 | |||
Management Fee Payable | $ 24,000,000 | $ 20,000,000 | 24,000,000 | 24,000,000 | |||
Reimbursement Revenue (Deprecated 2018-01-31) | 3,000,000 | 5,000,000 | |||||
Related Party Transaction, Asset Carrying Value | 1,937,000,000 | 1,461,000,000 | 1,937,000,000 | 1,937,000,000 | |||
Unrealized Loss on Foreign Currency Derivatives, before Tax | (2,000,000) | (2,000,000) | |||||
Commitment to Invest | |||||||
Related Party Transaction [Line Items] | |||||||
Unfunded investment commitment | 1,108,000,000 | 1,108,000,000 | 1,108,000,000 | ||||
Commitment to Invest | Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Unfunded investment commitment | $ 906,000,000 | $ 990,000,000 | $ 906,000,000 | $ 906,000,000 | |||
Preferred Stock | Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Total shares paid in kind (in thousands) | 6 | 12 | |||||
Residential Portfolio Segment [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Residential Mortgage Loans Purchased | $ 185,000,000 | $ 101,000,000 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Document Period End Date | Jun. 30, 2019 | |||||
Net income (loss) | $ 46 | $ 171 | $ 40 | $ 65 | $ 217 | $ 105 |
Less Preferred stock dividend | 8 | 7 | $ 7 | 16 | 14 | |
Net Income (Loss) from Continuing Operations Available to Common Shareholders, Basic | $ 38 | $ 33 | $ 201 | $ 91 | ||
Weighted-average common shares outstanding - basic (in shares) | 217,185,055 | 214,370,000 | 218,482,900 | 214,370,000 | ||
Dilutive effect of unvested restricted stock and unvested performance restricted stock (in shares) | 71,000 | 9,000 | 54,000 | 6,000 | ||
Dilutive effect of stock options | 6,000 | 0 | 0 | 0 | ||
Weighted-average shares outstanding - diluted (in shares) | 217,262,215 | 214,379,000 | 218,537,145 | 214,376,439 | ||
Net income (loss) per common share: | ||||||
Basic (in USD per share) | $ 0.17 | $ 0.15 | $ 0.92 | $ 0.42 | ||
Diluted (in USD per share) | $ 0.17 | $ 0.15 | $ 0.92 | $ 0.42 | ||
Common Stock Warrants Outstanding | 6,000,000 | 71,000,000 | ||||
Preferred Stock | ||||||
Net income (loss) per common share: | ||||||
Antidilutive securities excluded from computation of EPS, less than, amount (shares) | 414,000 | 384,000 | ||||
Stock Option Awards | ||||||
Net income (loss) per common share: | ||||||
Antidilutive securities excluded from computation of EPS, less than, amount (shares) | 1,674,000 | 680,000 | 1,612,000 | 292,000 |
Insurance Subsidiary Financia_2
Insurance Subsidiary Financial Information and Regulatory Matters - Narrative (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Statutory Accounting Practices [Line Items] | ||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries | $ 20 | |
Change in statutory capital surplus | 100,000,000 | $ 110,000,000 |
Non-permitted statutory accounting practices | (22,000,000) | (16,000,000) |
Statutory capital and surplus | 81,000,000 | 94,000,000 |
Increase (decrease) in statutory capital surplus | 77,000,000 | 30,000,000 |
IOWA | ||
Statutory Accounting Practices [Line Items] | ||
Change in statutory capital surplus | $ 2,000,000 | $ 0 |
Uncategorized Items - fglholdin
Label | Element | Value |
Repayments of Long-term Lines of Credit | us-gaap_RepaymentsOfLongTermLinesOfCredit | $ 440,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | 3,028,000,000 |
Embedded Derivatives Included In Contractholder Funds [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | 2,277,000,000 |
Future Policy Benefits [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | 728,000,000 |
Residential Mortgage Backed Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 66,000,000 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 38,000,000 |
Corporate Debt Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 1,169,000,000 |
Debt Security, Government, Non-US [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 17,000,000 |
Commercial Mortgage Backed Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 49,000,000 |
Equity Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 3,000,000 |
Asset-backed Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 412,000,000 |
Reinsurance Receivables, Funds Withheld [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 4,000,000 |
Available-for-sale Embedded Derivative [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 17,000,000 |
Affiliate bank loans [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 0 |
Hybrids [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | $ 10,000,000 |