Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2020 | Nov. 02, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
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 | 2020 | |
Document Fiscal Period Focus | Q3 | |
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 | 221,972,605 | |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Document Period End Date | Mar. 31, 2020 | |
Available-for-sale Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from available-for-sale investments, sold, matured or repaid: | $ 845 | $ 962 |
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 | 474 |
Gain on sale of investments | 16 | 5 |
Loss on Sale of Investments | $ 3 | $ 10 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: March 31, 2020 - $22,836; December 31, 2019 - $22,914 and allowance for expected credit losses: March 31, 2020 - $44; December 31, 2019 - $0) | $ 21,140 | $ 23,726 |
Equity securities, at fair value (cost: March 31, 2020 - $1,052; December 31, 2019 - $1,069) | 915 | 1,071 |
Derivative investments, at fair value | 188 | 587 |
Mortgage loans (allowance for expected credit losses: March 31, 2020 - $12; December 31, 2019 - $0) | 1,769 | 1,267 |
Other invested assets | 1,491 | 1,303 |
Total investments | 25,503 | 27,954 |
Cash and cash equivalents | 776 | 969 |
Accrued investment income | 251 | 228 |
Funds withheld for reinsurance receivables, at fair value | 2,050 | 2,172 |
Reinsurance recoverable (allowance for expected credit losses: March 31, 2020 - $22; December 31, 2019 - $0) | 3,186 | 3,213 |
Intangibles, net | 2,029 | 1,455 |
Deferred tax assets, net | 264 | 61 |
Goodwill | 467 | 467 |
Other assets | 211 | 195 |
Total assets | 34,737 | 36,714 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Contractholder funds | 26,226 | 25,684 |
Future policy benefits, including $1,904 and $1,953 at fair value at March 31, 2020 and December 31, 2019, respectively | 5,658 | 5,735 |
Funds Held under Reinsurance Agreements, Liability | 821 | 831 |
Liability for policy and contract claims | 73 | 71 |
Debt | 543 | 542 |
Other liabilities | 944 | 1,108 |
Total liabilities | 34,265 | 33,971 |
Commitments and contingencies (Note 12) | ||
Shareholders' equity: | ||
Preferred stock ($.0001 par value, 100,000,000 shares authorized, 437,841 and 429,789 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively) | 0 | 0 |
Common stock ($.0001 par value, 800,000,000 shares authorized, 221,972,605 and 221,807,598 issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 0 | 0 |
Additional paid-in capital | 2,041 | 2,031 |
Retained earnings (Accumulated deficit) | (72) | 300 |
Accumulated other comprehensive income (loss) | (1,428) | 481 |
Treasury Stock, Value | 69 | 69 |
Total shareholders' equity | 472 | $ 2,743 |
Total liabilities and shareholders' equity | $ 34,737 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fixed maturity securities, available-for-sale, at fair value (amortized cost) | $ 22,836 | |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Premiums | $ 10 | $ 16 |
Net investment income | 317 | 289 |
Net investment gains (losses) | (692) | 240 |
Insurance and investment product fees and other | 30 | 55 |
Total revenues | (335) | 600 |
Benefits and expenses: | ||
Benefits and other changes in policy reserves | (41) | 339 |
Acquisition and operating expenses, net of deferrals | 96 | 44 |
Amortization of intangibles | (61) | 29 |
Total benefits and expenses | (6) | 412 |
Operating income (loss) | (329) | 188 |
Interest expense | (8) | (8) |
Income (loss) before income taxes | (337) | 180 |
Income tax (expense) benefit | (1) | (9) |
Net income (loss) | (338) | 171 |
Less Preferred stock dividend | 8 | 8 |
Net income (loss) available to common shareholders | $ (346) | $ 163 |
Net income per common share | ||
Basic (in USD per share) | $ (1.62) | $ 0.74 |
Diluted (in USD per share) | $ (1.62) | $ 0.74 |
Weighted average common shares used in computing net income (loss) per common share: | ||
Basic (in shares) | 213,155,198 | 219,645,679 |
Diluted (in shares) | 213,155,198 | 219,681,679 |
Cash dividend per common share (in dollars per share) | $ 0.01 | $ 0.01 |
Total other-than-temporary impairments | $ 0 | $ (2) |
Net other-than-temporary impairments | (2) | |
Gains (losses) on derivatives and embedded derivatives | (523) | 164 |
Other investment gains (losses) | (121) | 78 |
Net investment gains (losses) | $ (692) | $ 240 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income (loss) | $ (338) | $ 171 |
Unrealized Gain (Loss) on Investments | ||
Change in unrealized gains/losses on investments, net of adjustments to intangible assets and unearned revenue | (2,115) | 779 |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | 6 | (3) |
Net changes to derive comprehensive income (loss) for the period | (1,909) | 721 |
Comprehensive income (loss), net of tax | $ (2,247) | $ 892 |
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, 2018 | $ 890 | $ 0 | $ 0 | $ 1,998 | $ (167) | $ (937) | $ (4) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Dividends | 0 | 8 | (8) | ||||||||||
Net income (loss) | 171 | 171 | |||||||||||
Unrealized investment losses, net | 724 | 724 | |||||||||||
Ending Balance at Mar. 31, 2019 | 1,781 | 0 | 0 | 2,007 | (6) | (216) | (4) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | (3) | (3) | |||||||||||
Beginning Balance at Dec. 31, 2019 | 2,743 | 0 | 0 | 2,031 | 300 | 481 | (69) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Dividends | $ (2) | $ 0 | $ (2) | $ 0 | $ 8 | $ (8) | |||||||
Net income (loss) | (338) | (338) | |||||||||||
Unrealized investment losses, net | (1,915) | (1,915) | |||||||||||
Ending Balance at Mar. 31, 2020 | 472 | $ 0 | $ 0 | 2,041 | $ (72) | (1,428) | $ (69) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | 6 | $ 6 | |||||||||||
Stock Issued During Period, Value, Stock Dividend | $ 2 | $ 2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (338) | $ 171 |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Stock based compensation | 3 | 1 |
Amortization | 10 | 4 |
Increase (Decrease) in Deferred Income Taxes | 4 | 5 |
Interest credited/index credits to contractholder account balances | 31 | 308 |
Net recognized (gains) losses on investments and derivatives | 692 | (240) |
Charges assessed to contractholders for mortality and administration | (38) | (32) |
Intangibles, net | (180) | (90) |
Changes in operating assets and liabilities: | ||
Reinsurance recoverable | (15) | (16) |
Future policy benefits reflected in net income (loss) | (71) | 36 |
Funds withheld for reinsurers | (98) | (129) |
Collateral (returned) posted | (272) | 141 |
Other assets and other liabilities | 7 | (63) |
Net Cash Provided by (Used in) Operating Activities | (265) | 96 |
Cash flows from investing activities: | ||
Proceeds from mortgage loans | 81 | 4 |
Costs of mortgage loans | 596 | 12 |
Capital expenditures | (3) | (1) |
Net cash provided by (used in) investing activities | (521) | 404 |
Cash flows from financing activities: | ||
Treasury stock | 0 | 30 |
Common stock dividends paid | (2) | (2) |
Contractholder account deposits | 1,113 | 1,225 |
Contractholder account withdrawals | (518) | (907) |
Net cash provided by (used in) financing activities | 593 | 286 |
Change in cash and cash equivalents | (193) | 786 |
Cash and cash equivalents, beginning of period | 969 | |
Cash and cash equivalents, end of period | 776 | 1,357 |
Supplemental disclosures of cash flow information: | ||
Income taxes (refunded) paid | 0 | (1) |
Deferred sales inducements | 27 | 35 |
Available-for-sale Securities | ||
Cash flows from investing activities: | ||
Proceeds from available-for-sale investments, sold, matured or repaid: | 845 | 962 |
Cost of available-for-sale investments: | (675) | (421) |
Derivative and other | ||
Cash flows from investing activities: | ||
Proceeds from available-for-sale investments, sold, matured or repaid: | 136 | 44 |
Cost of available-for-sale investments: | $ (309) | $ (172) |
Basis of Presentation and Natur
Basis of Presentation and Nature of Business | 3 Months Ended |
Mar. 31, 2020 | |
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 the Company and parties to reinsurance transactions. On February 7, 2020, FGL Holdings and Fidelity National Financial, Inc. (NYSE: FNF) (“FNF”) entered into a merger agreement pursuant to which FNF will acquire FGL Holdings for $12.50 per share, representing an equity value of approximately $2.7 billion . Under the terms of the merger agreement, holders of FGL Holdings' ordinary shares (other than FNF and its subsidiaries) may elect to receive either (i) $12.50 per share in cash or (ii) 0.2558 of a share of FNF common stock for each ordinary share of FGL Holdings they own. This is subject to an election and proration mechanism such that the aggregate consideration paid to such holders of FGL Holdings' ordinary shares will consist of approximately 60% cash and 40% FNF common stock. The transaction is expected to close in the second or third quarter of 2020, subject to the satisfaction of customary closing conditions, including the receipt of regulatory clearances and approval by FGL Holdings shareholders. 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, consisting of normal recurring items considered necessary for a fair statement of the results for the interim periods presented. 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 2019 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 months ended March 31, 2020 , are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020 . Amounts reclassified out of other comprehensive income are reflected in net investment gains (losses) 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 | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Practices | Adoption of New Accounting Pronouncements Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment , effective for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. Under this update: • the subsequent measurement of goodwill is simplified by the elimination of step 2 from the goodwill impairment test, which required an entity to determine the implied fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination • the entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit • the entity is no longer required to perform a qualitative assessment for any reporting unit with a zero or negative carrying amount The Company adopted this standard on January 1, 2020, and it did not impact its unaudited condensed consolidated financial statements. Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, effective for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. Under this update: • for investments in certain entities that calculate net asset value, investors are required to disclose the timing of liquidation of an investee's assets and the date when restrictions from redemption might lapse if the investee has communicated timing to the entity or announced timing publicly • entities should use the measurement uncertainty disclosure to communicate information about the uncertainty in measurement as of the reporting date • entities must disclose changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements, as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, or other quantitative information in lieu of weighted average if the entity determines such information would be more reasonable and rational • entities are no longer required to disclose the amounts and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements The Company adopted this standard on January 1, 2020, and it had an immaterial impact on its unaudited condensed consolidated financial statements. Consolidation In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810), Targeted Improvements to Related Party Guidance for Variable Interest Entities, effective for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. Under this update, entities must consider indirect interests held through related parties under common control on a proportional basis to determine whether a decision-making fee is a variable interest. The Company adopted this standard on January 1, 2020, and it did not impact its unaudited condensed consolidated financial statements. New Credit Loss Standard In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (ASC 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, ASU 2019-05 and ASU 2019-11. Collectively, these ASUs changed 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 are required to be presented at the net amount expected to be collected, with an allowance for expected 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. 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 • credit losses relating to available-for-sale ("AFS") fixed maturity securities generally are recorded through an allowance for expected 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 expected credit losses for AFS fixed maturity securities is 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 reflects 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 The Company adopted this standard effective January 1, 2020 using a modified-retrospective approach, as required. As a result of adoption, the Company recorded a cumulative-effect adjustment, which decreased retained earnings by $24 , net of tax. We recorded offsetting increases to the allowance for expected credit losses for mortgage loans and reinsurance recoverables and a decrease for deferred tax impacts. Refer to Note 4. "Investments" and Note 13. "Reinsurance" for additional information. Future Accounting Pronouncements Long-Duration Insurance 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, 2021 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. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12 Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes , effective for the fiscal years beginning after December 15, 2020 including interim periods within those fiscal years. Under this update: • accounting for income taxes is simplified by removing certain exceptions, including exceptions related to the incremental approach for intraperiod tax allocation, calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences • the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill and enacted changes in tax laws or rates has been clarified • the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements is not required to be allocated, although the entity may elect to do so |
Significant Risks and Uncertain
Significant Risks and Uncertainties | 3 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Significant Risks and Uncertainties | Significant Risks and Uncertainties Best Interest Regulation In March 2018, the United States Fifth Circuit Court of Appeals formally vacated the U. S. Department Labor “Fiduciary Rule” which would have imposed fiduciary duties upon insurance agents selling Individual Retirement Account (IRA) annuities and would have potentially had a material impact on the Company, its products, distribution, and business model. Since then, in June 2019, the U.S. Securities and Exchange Commission (SEC) adopted Regulation Best Interest imposing new sales practice standards on securities brokers, which does not directly impact the Company or its distributors, but gives impetus for the National Association of Insurance Commissioners (NAIC) and individual states to consider best interest proposals for insurance sales. The NAIC adopted an amended Suitability in Annuity Transactions Model Regulation in February 2020 incorporating a requirement that agents act in the best interest of consumers without putting their own financial interests or insurer’s interests ahead of consumer interests. It is expected individual states may soon begin to consider and adopt the NAIC model regulation. FGL NY Insurance already modified certain new business processes in response to the New York Department of Financial Services (NYDFS) best interest rule despite relatively low sales in New York. Management is following a legal challenge to nullify the NYDFS rule and will continue to monitor action by other state 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 March 31, 2020 and December 31, 2019 , 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 $2,216 or 9% and $2,414 or 9% , respectively, of the invested assets portfolio and an amortized cost of $2,270 and $2,325 , respectively. As of March 31, 2020 , the Company’s holdings in this industry include investments in 101 different issuers with the top ten investments accounting for 38% of the total holdings in this industry. As of March 31, 2020 the Company had eighty-six investments in issuers that exceeded 10% of shareholders' equity; the top ten being HP Enterprise Co., HSBC Holdings, Metropolitan Transportation Authority (NY), Verizon Communications Inc., Prudential Financial Inc, AT&T Inc, Nationwide Mutual Insurance Company, CVI CVF III Master Fund II LL, Electricite De France and Blackstone Div Alt Issr. As of December 31, 2019 , the Company had no investments in issuers that exceeded 10% of shareholders' equity. The increase in investments that exceed 10% of shareholders' equity is due to the significant increase in unrealized losses on fixed maturity securities investments during the three months ended March 31, 2020 and the resulting decrease in shareholders' equity. The Company's largest concentration in any single issuer was HP Enterprise Co with a total fair value of $123 or 1% of the invested assets portfolio as of March 31, 2020 , and HSBC Holdings , with a total fair value of $132 or 1% of the invested assets portfolio as of December 31, 2019 . 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. The Company is closely monitoring developments related to the COVID-19 pandemic to assess its impact on our business. While still evolving, the COVID-19 pandemic has caused significant economic and financial turmoil in the U.S. and around the world, and has fueled concerns that it will lead to a global recession. These conditions may continue or worsen in the near term. At this time, it is not possible to estimate how long it will take to halt the spread of the virus or the longer term-effects the COVID-19 pandemic could have on our business. Increased economic uncertainty and increased unemployment resulting from the economic impacts of the spread of COVID-19 may result in policyholders seeking sources of liquidity and withdrawing at rates greater than we previously expected. If policyholder lapse and surrender rates significantly exceed our expectations, it could have a material adverse effect on our business, financial condition, results of operations, liquidity and cash flows. Such events or conditions could also have an adverse effect on our sales of new policies. The Company is monitoring the impact of COVID-19 on the Company’s investment portfolio and the potential for ratings changes caused by the sudden slowdown of economic activity. The extent to which the COVID-19 pandemic impacts our business, results of operations, financial condition, liquidity or prospects will depend on future developments which are highly uncertain and cannot be predicted. 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 either 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 March 31, 2020 . Kubera is not rated, however, management has attempted to mitigate the risk of non-performance through the funds withheld arrangement. As of March 31, 2020 , the net amount recoverable from Wilton Re was $1,507 and the net amount recoverable from Kubera was $835 . 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. The Company believes that all amounts due from Wilton Re and Kubera for periodic treaty settlements are collectible as of March 31, 2020 . 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 of rehabilitation. As of March 31, 2020 , the net amount recoverable from SRUS was $48 . 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 ("MDIFS") has concerns relating to Pavonia's parent company. To insulate Pavonia from its parent until a pending acquisition transaction could be consummated, MDIFS placed Pavonia under supervision and rehabilitation. As of March 31, 2020 , the net amount recoverable from Pavonia was $86 . 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. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 1.25 1.00 - 1.25 March 31, 2020 LTV Ratios: Less than 50% $ 278 $ 6 $ 284 58 % $ 295 58 % 50% to 60% 159 — 159 33 % 166 33 % 60% to 75% 44 — 44 9 % 46 9 % Commercial mortgage loans $ 481 $ 6 $ 487 100 % $ 507 100 % December 31, 2019 LTV Ratios: Less than 50% $ 346 $ 6 $ 352 83 % $ 363 83 % 50% to 60% 70 — 70 17 % 72 17 % Commercial mortgage loans $ 416 $ 6 $ 422 100 % $ 435 100 % The Company recognizes a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At March 31, 2020 and December 31, 2019 , the Company had no CMLs that were delinquent in principal or interest payments. Allowance for Expected Credit Loss The Company estimates expected credit losses for their commercial loan portfolio using a probability of default/loss given default model. Significant inputs to this model include the loans current performance, underlying collateral type, location, contractual life, LTV, and DSC. The model projects losses using a 2 year reasonable and supportable forecast and then reverts over a 3 year period to market-wide historical loss experience. Changes in the Company’s allowance for expected credit losses on commercial mortgage loans are recognized in “Net investment gains (losses)” in the accompanying unaudited Condensed Consolidated Statements of Operations. An allowance for expected credit loss is not measured on accrued interest income for commercial mortgage loans as the Company has a process to write-off interest on loans that enter in to non-accrual status (over 90 days past due). Prior to adoption of ASC 326 effective January 1, 2020, the Company established 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 believed that the LTV ratio was an indicator of the principal recovery risk for loans that default. A higher LTV ratio resulted in a higher allowance. The Company believed that the DSC ratio was an indicator of default risk on loans. A higher DSC ratio resulted in a lower allowance. Residential Mortgage Loans Residential mortgage loans ("RMLs") represented approximately 5% and 3% of the Company’s total investments as of March 31, 2020 and December 31, 2019 . The Company's residential mortgage loans are closed end, amortizing loans and 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: March 31, 2020 US State: Unpaid Principal Balance % of Total California $ 236 19 % Florida 206 16 % New Jersey 122 10 % All Other States (a) 704 56 % Total mortgage loans $ 1,268 100 % (a) The individual concentration of each state is less than 9% as of March 31, 2020 . December 31, 2019 US State: Unpaid Principal Balance % of Total California $ 167 20 % Florida 141 17 % New Jersey 76 9 % All Other States (a) 447 54 % Total mortgage loans $ 831 100 % (a) The individual concentration of each state is less than 9% as of December 31, 2019 . 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 or in nonaccrual status which is assessed monthly. The credit quality of RMLs as at March 31, 2020 and December 31, 2019 , respectively, was as follows: March 31, 2020 December 31, 2019 Performance indicators: Carrying Value % of Total Carrying Value % of Total Performing $ 1,282 100 % $ 843 100 % Non-performing 11 — % 2 — % Total residential mortgage loans, gross of valuation allowance $ 1,293 100 % 845 100 % Allowance for expected credit loss (11 ) — % — — % Total residential mortgage loans $ 1,282 100 % $ 845 100 % Loans segregated by risk rating exposure as at March 31, 2020 , was as follows: March 31, 2020 Term Loans Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total Residential mortgages Current (less than 30 days past due) 304 671 73 48 63 3 1,162 30-89 days past due 12 100 6 — 2 — 120 Over 90 days past due — 9 2 — — — 11 Total residential mortgages 316 780 81 48 65 3 1,293 Commercial mortgages Current (less than 30 days past due) 68 — 6 — 11 403 488 30-89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage 68 — 6 — 11 403 488 March 31, 2020 Term Loans Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total Commercial mortgages LTV Less than 50% — — 6 — — 278 284 50% to 60% 34 — — — — 125 159 60% to 75% 34 — — — 11 — 45 Total commercial mortgages 68 — 6 — 11 403 488 Commercial mortgages DSCR Greater than 1.25x 68 — 6 — 11 397 482 1.00x - 1.25x — — — — — 6 6 Less than 1.00x — — — — — — — Total commercial mortgages 68 — 6 — 11 403 488 Allowance for Expected Credit Loss The Company estimates expected credit losses for their residential mortgage loan portfolio using a probability of default/loss given default model. Significant inputs to this model include the loans current performance, underlying collateral type, location, contractual life, LTV, and Debt to Income or FICO. The model projects losses using a 2 year reasonable and supportable forecast and then reverts over a 3 year period to market-wide historical loss experience. Changes in the Company’s allowance for expected credit losses on commercial mortgage loans are recognized in “Net investment gains (losses)” in the accompanying unaudited Condensed Consolidated Statements of Operations. Residential Mortgage Loans Commercial Mortgage Loans Total Balance as at January 1, 2020 7 1 8 (Reversal of) provision for loan losses 4 — 4 Balance as at March 31, 2020 11 1 12 An allowance for expected credit loss is not measured on accrued interest income for commercial mortgage loans as the Company has a process to write-off interest on loans that enter in to non-accrual status (over 90 days past due). March 31, 2020 Residential Mortgage Loans 11 Commercial Mortgage Loans — Total loans that are 90 days or more past due and still accruing 11 Net Investment Income The major sources of “Net investment income” reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows: Three months ended March 31, 2020 March 31, 2019 Fixed maturity securities, available-for-sale $ 258 $ 265 Equity securities 14 21 Mortgage loans 21 7 Invested cash and short-term investments 4 3 Funds withheld 22 8 Limited partnerships 25 8 Other investments 6 5 Gross investment income 350 317 Investment expense (33 ) (28 ) Net investment income $ 317 $ 289 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 March 31, 2020 March 31, 2019 Net realized gains (losses) on fixed maturity available-for-sale securities $ 21 $ (3 ) Net realized/unrealized gains (losses) on equity securities (135 ) 78 Realized gains (losses) on other invested assets (7 ) 1 Change in allowance for expected credit losses (48 ) — Derivatives, embedded derivatives and financial instruments under fair value option: Realized gains (losses) on certain derivative instruments 38 (26 ) Unrealized gains (losses) on certain derivative instruments (396 ) 190 Change in fair value of reinsurance related embedded derivatives and change in fair value of funds withheld for reinsurance receivables, held at fair value (a) (161 ) (3 ) Change in fair value of other derivatives and embedded derivatives (4 ) 3 Realized gains (losses) on derivatives and embedded derivatives (523 ) 164 Net investment gains (losses) $ (692 ) $ 240 (a) Change in fair value of reinsurance related embedded derivatives is due to F&G Re and FSRC unaffiliated third party business under the fair value option election, and activity related to the FGL Insurance and Kubera reinsurance treaty. The Company's adoption of ASU 2016-13 had a $(48) impact on pre-tax net income (loss), or $(0.23) per common share, for the three months ended March 31, 2020. 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 March 31, 2020 March 31, 2019 Proceeds $ 462 $ 474 Gross gains 16 5 Gross losses (3 ) (10 ) Unconsolidated Variable Interest Entities FGL Insurance owns investments in VIEs that are not consolidated within the Company’s financial statements, and one investment in a VIE that is 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. VIE’s are consolidated by their ‘primary beneficiary’, a designation given to an entity that receives both the benefits from the VIE as well as the substantive power to make its key economic decisions. While FGL Insurance participates in the benefits from VIEs in which it invests, but does not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under common control with FGL Insurance. It is for this reason that FGL Insurance is not considered the primary beneficiary for the VIE investments that are not consolidated. The Company has concluded it is the primary beneficiary of BIS Co-Invest Fund II L.P (“Co-Invest II”). The primary beneficiary conclusion was drawn given the fact that substantially all of Co-Invest II’s activities are conducted on behalf of the Company, its sole investor and limited partner. As the Company is considered the primary beneficiary, Co-Invest II is consolidated within the Company’s financial statements. As of March 31, 2020 , the Company has $52 of net assets recorded related to Co-Invest II. The Company previously executed a commitment of $83 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 Company had fully funded this commitment as of January 31, 2020. During the quarter ended March 31, 2020 , the BDC was listed on the NASDAQ. The Company invests in various limited partnerships as a passive investor. These investments are in credit funds with a bias towards current income, 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 unaudited Condensed Consolidated Balance Sheets. The Company's maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in the Company's unaudited Condensed Consolidated Balance Sheets in addition to any required unfunded commitments. As of March 31, 2020 , the Company's maximum exposure to loss was $1,066 in recorded carrying value and $1,252" id="sjs-B4">Investments The Company’s fixed maturity securities investments have been designated as available-for-sale and are carried at fair value, net of allowance for expected credit losses, 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 (loss). The Company’s consolidated investments at March 31, 2020 and December 31, 2019 are summarized as follows: March 31, 2020 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 5,785 $ (17 ) $ 26 $ (849 ) $ 4,945 $ 4,945 Commercial mortgage-backed securities 2,848 — 16 (383 ) 2,481 2,481 Corporates 10,898 (21 ) 366 (792 ) 10,451 10,451 Hybrids 976 — 5 (90 ) 891 891 Municipals 1,270 — 63 (15 ) 1,318 1,318 Residential mortgage-backed securities 884 (6 ) 17 (25 ) 870 870 U.S. Government 40 — 3 — 43 43 Foreign Governments 135 — 7 (1 ) 141 141 Total available-for-sale securities 22,836 (44 ) 503 (2,155 ) 21,140 21,140 Equity securities 1,052 1 (138 ) 915 915 Derivative investments 380 13 (205 ) 188 188 Commercial mortgage loans 488 (1 ) — — 507 487 Residential mortgage loans 1,293 (11 ) — — 1,297 1,282 Other invested assets 1,497 — (6 ) 1,479 1,491 Total investments $ 27,546 $ (56 ) $ 517 $ (2,504 ) $ 25,526 $ 25,503 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 5,720 $ 51 $ (77 ) $ 5,694 $ 5,694 Commercial mortgage-backed securities 2,788 140 (6 ) 2,922 2,922 Corporates 11,051 618 (72 ) 11,597 11,597 Hybrids 983 48 (4 ) 1,027 1,027 Municipals 1,284 64 (5 ) 1,343 1,343 Residential mortgage-backed securities 917 40 (3 ) 954 954 U.S. Government 33 1 — 34 34 Foreign Governments 138 17 — 155 155 Total available-for-sale securities 22,914 979 (167 ) 23,726 23,726 Equity securities 1,069 19 (17 ) 1,071 1,071 Derivative investments 336 261 (10 ) 587 587 Commercial mortgage loans 422 — — 435 422 Residential mortgage loans 845 — — 848 845 Other invested assets 1,306 — (3 ) 1,288 1,303 Total investments $ 26,892 $ 1,259 $ (197 ) $ 27,955 $ 27,954 Securities held on deposit with various state regulatory authorities had a fair value of $16,337 and $17,591 at March 31, 2020 and December 31, 2019 , respectively. Under Iowa regulations, insurance companies are required to hold securities on deposit in an amount no less than the legal reserve. At March 31, 2020 and December 31, 2019 , 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 $1,472 and $1,472 at March 31, 2020 and December 31, 2019 , 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. March 31, 2020 Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and Government securities: Due in one year or less $ 84 $ 80 Due after one year through five years 915 870 Due after five years through ten years 1,942 1,872 Due after ten years 10,378 10,022 Subtotal 13,319 12,844 Other securities which provide for periodic payments: Asset-backed securities 5,785 4,945 Commercial mortgage-backed securities 2,848 2,481 Residential mortgage-backed securities 884 870 Subtotal 9,517 8,296 Total fixed maturity available-for-sale securities $ 22,836 $ 21,140 Allowance for Expected Credit Loss Following the adoption of ASU 2016-13 and the related targeted improvements and transition relief amendments (see Note 2. Significant Accounting Policies and Practices for further details) effective January 1, 2020, the Company regularly reviews AFS securities for declines in fair value that it determines to be credit related. For its fixed maturity AFS securities, the Company generally considers the following in determining whether its unrealized losses are credit related, and if so, the magnitude of the credit loss: • The extent to which the fair value is less than the amortized cost basis; • The reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); • The financial condition of and near-term prospects of the issuer (including issuer's current credit rating and the probability of full recovery of principal based upon the issuer's financial strength); • Current delinquencies and nonperforming assets of underlying collateral; • Expected future default rates; • Collateral value by vintage, geographic region, industry concentration or property type; • Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and • Contractual and regulatory cash obligations and the issuer's plans to meet such obligations. The Company recognizes an allowance for expected credit losses on fixed maturity securities in an unrealized loss position when it is determined, using the factors discussed above, a component of the unrealized loss is related to credit. The Company measures the credit loss using a discounted cash flow model that utilizes the single best estimate cash flow and the recognized credit loss is limited to the total unrealized loss on the security (i.e. the fair value floor). Cash flows are discounted using the implicit yield of bonds at their time of purchase and the current book yield for asset and mortgage backed securities as well as variable rate securities. The Company recognizes the expected credit losses in "Net investment gains (losses)" in the unaudited Condensed Consolidated Statements of Operations, with an offset for the amount of non-credit impairments recognized in AOCI. We do not measure a credit loss allowance on accrued investment income because we write-off accrued interest through to net investment income (loss) when collectability concerns arise. The Company considers the following in determining whether write-offs of a security’s amortized cost is necessary: • The Company believes amounts related to securities have become uncollectible; or • The Company intends to sell a security; or • It is more likely than not that the Company will be required to sell a security prior to recovery. If the Company intends to sell a fixed maturity AFS security or it is more likely than not the Company will be required to sell the security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, the Company will write down the security to current fair value, with a corresponding charge to “Net investment gains (losses)” in the accompanying unaudited Condensed Consolidated Statements of Operations. If the Company does not intend to sell a fixed maturity security or it is more likely than not the Company will not be required to sell a fixed maturity security before recovery of its amortized cost basis but believes amounts related to a security are uncollectible (generally based on proximity to expected credit loss), an impairment is deemed to have occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to “Net investment gains (losses)” in the accompanying unaudited Condensed Consolidated Statements of Operations. The remainder of unrealized loss is held in AOCI. The activity in the allowance for expected credit losses of available-for-sale securities aggregated by investment category were as follows: For the quarter ended March 31, 2020 Additions Reductions Balance at Beginning of Period For credit losses on securities for which losses were not previously recorded For initial credit losses on purchased securities accounted for as PCD financial assets (a) Additions (reductions) in allowance recorded on previously impaired securities For securities sold during the period For securities intended/required to be sold prior to recovery of amortized cost basis Writeoffs charged against the allowance Balance at End of Period Available-for-sale securities Asset-backed securities — (17 ) — — — — — (17 ) Commercial mortgage-backed securities — — — — — — — — Corporates — (22 ) — — — — 1 (21 ) Hybrids — — — — — — — — Municipals — — — — — — — — Residential mortgage-backed securities — (6 ) — — — — — (6 ) US Government — — — — — — — — Foreign Government — — — — — — — — Total available-for-sale securities $ — $ (45 ) $ — $ — $ — $ — $ 1 $ (44 ) (a) Purchased credit deteriorated financial assets ("PCD") The fair value and gross unrealized losses of available-for-sale securities, excluding securities in an unrealized losses position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost as of March 31, 2020, were as follows: March 31, 2020 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 $ 2,872 $ (518 ) $ 1,322 $ (325 ) $ 4,194 $ (843 ) Commercial mortgage-backed securities 2,073 (378 ) 13 (5 ) 2,086 (383 ) Corporates 4,691 (644 ) 239 (144 ) 4,930 (788 ) Hybrids 669 (79 ) 31 (11 ) 700 (90 ) Municipals 323 (12 ) 51 (3 ) 374 (15 ) Residential mortgage-backed securities 146 (13 ) 65 (6 ) 211 (19 ) Foreign Government 33 (1 ) — — 33 (1 ) Total available-for-sale securities $ 10,807 $ (1,645 ) $ 1,721 $ (494 ) $ 12,528 $ (2,139 ) Total number of available-for-sale securities in an unrealized loss position less than twelve months 1,365 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 294 Total number of available-for-sale securities in an unrealized loss position 1,659 The fair value and gross unrealized losses of available-for-sale securities, aggregated by investment category and duration of fair value below amortized cost as of December 31, 2019, were as follows: December 31, 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 $ 719 $ (12 ) $ 2,453 $ (65 ) $ 3,172 $ (77 ) Commercial mortgage-backed securities 232 (4 ) 16 (2 ) 248 (6 ) Corporates 1,030 (25 ) 804 (47 ) 1,834 (72 ) Hybrids 23 (1 ) 60 (3 ) 83 (4 ) Municipals 123 (2 ) 60 (3 ) 183 (5 ) Residential mortgage-backed securities 41 — 107 (3 ) 148 (3 ) U.S. Government 6 — — — 6 — Total available-for-sale securities $ 2,174 $ (44 ) $ 3,500 $ (123 ) $ 5,674 $ (167 ) Total number of available-for-sale securities in an unrealized loss position less than twelve months 290 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 446 Total number of available-for-sale securities in an unrealized loss position 736 The Company determined the significant increase in unrealized losses as of March 31, 2020 was caused by the significant widening of spreads in fixed income markets in response to the economic uncertainty created by the COVID-19 pandemic. These widening spreads were in most cases driven by market illiquidity and perceived increases in credit risk. For securities in an unrealized loss position as of March 31, 2020 and an expected credit loss was not determined, the Company believes that the unrealized loss is being driven by interest rate declines or near-term illiquidity and uncertainty of the impact of COVID-19 on the economy as opposed to issuer specific credit concerns. Specific to asset-backed and mortgage-backed securities for which an expected credit loss was not determined, the effect of any increased expectations of underlying collateral defaults have not risen to the level of impacting the tranches of those securities held by the Company. Other-Than-Temporary-Impairment Prior to the adoption of ASC 326 in 2020, the Company evaluated and identified securities for other-than-temporary impairment. For factors considered in evaluating whether a decline in value was other-than-temporary, please refer to “Note 2. Significant Accounting Policies and Practices" to the Company’s 2019 Form 10-K. 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 months ended March 31, 2019 : Three months ended March 31, 2019 Credit impairment losses in operations $ (2 ) Change-of-intent losses in operations — Amortized cost 1 Fair value 1 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 March 31, 2019 Corporates $ (2 ) Total $ (2 ) The following table provides a reconciliation of the beginning and ending balances within AOCI of the non-credit loss portion of impairment on fixed maturity available-for-sale securities held by the Company for the three months ended March 31, 2019 : Three months ended March 31, 2019 Beginning balance $ — Increases attributable to credit losses on securities: OTTI was previously recognized — OTTI was not previously recognized — Ending balance $ — 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 March 31, 2020 and December 31, 2019 . 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: March 31, 2020 December 31, 2019 Gross Carrying Value % of Total Gross Carrying Value % of Total Property Type: Hotel $ 21 4 % $ 21 5 % Industrial - General 37 8 % 37 9 % Industrial - Warehouse 20 4 % 20 4 % Multifamily 121 25 % 54 13 % Office 142 29 % 143 34 % Retail 147 30 % 147 35 % Total commercial mortgage loans, gross of valuation allowance $ 488 100 % $ 422 100 % Allowance for expected credit loss (1 ) — Total commercial mortgage loans $ 487 $ 422 U.S. Region: East North Central $ 64 13 % $ 64 15 % East South Central 53 11 % 19 5 % Middle Atlantic 77 16 % 77 18 % Mountain 51 10 % 51 12 % New England 4 1 % 4 1 % Pacific 112 23 % 113 27 % South Atlantic 55 11 % 56 13 % West North Central 13 3 % 13 3 % West South Central 59 12 % 25 6 % Total commercial mortgage loans, gross of valuation allowance $ 488 100 % $ 422 100 % Allowance for expected credit loss (1 ) — Total commercial mortgage loans $ 487 $ 422 All of the Company's investments in CMLs had a loan-to-value ("LTV") ratio of less than 75% at March 31, 2020 and December 31, 2019 , as measured at inception of the loans unless otherwise updated. LTV and debt service coverage ("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 March 31, 2020 and December 31, 2019 : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 March 31, 2020 LTV Ratios: Less than 50% $ 278 $ 6 $ 284 58 % $ 295 58 % 50% to 60% 159 — 159 33 % 166 33 % 60% to 75% 44 — 44 9 % 46 9 % Commercial mortgage loans $ 481 $ 6 $ 487 100 % $ 507 100 % December 31, 2019 LTV Ratios: Less than 50% $ 346 $ 6 $ 352 83 % $ 363 83 % 50% to 60% 70 — 70 17 % 72 17 % Commercial mortgage loans $ 416 $ 6 $ 422 100 % $ 435 100 % The Company recognizes a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At March 31, 2020 and December 31, 2019 , the Company had no CMLs that were delinquent in principal or interest payments. Allowance for Expected Credit Loss The Company estimates expected credit losses for their commercial loan portfolio using a probability of default/loss given default model. Significant inputs to this model include the loans current performance, underlying collateral type, location, contractual life, LTV, and DSC. The model projects losses using a 2 year reasonable and supportable forecast and then reverts over a 3 year period to market-wide historical loss experience. Changes in the Company’s allowance for expected credit losses on commercial mortgage loans are recognized in “Net investment gains (losses)” in the accompanying unaudited Condensed Consolidated Statements of Operations. An allowance for expected credit loss is not measured on accrued interest income for commercial mortgage loans as the Company has a process to write-off interest on loans that enter in to non-accrual status (over 90 days past due). Prior to adoption of ASC 326 effective January 1, 2020, the Company established 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 believed that the LTV ratio was an indicator of the principal recovery risk for loans that default. A higher LTV ratio resulted in a higher allowance. The Company believed that the DSC ratio was an indicator of default risk on loans. A higher DSC ratio resulted in a lower allowance. Residential Mortgage Loans Residential mortgage loans ("RMLs") represented approximately 5% and 3% of the Company’s total investments as of March 31, 2020 and December 31, 2019 . The Company's residential mortgage loans are closed end, amortizing loans and 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: March 31, 2020 US State: Unpaid Principal Balance % of Total California $ 236 19 % Florida 206 16 % New Jersey 122 10 % All Other States (a) 704 56 % Total mortgage loans $ 1,268 100 % (a) The individual concentration of each state is less than 9% as of March 31, 2020 . December 31, 2019 US State: Unpaid Principal Balance % of Total California $ 167 20 % Florida 141 17 % New Jersey 76 9 % All Other States (a) 447 54 % Total mortgage loans $ 831 100 % (a) The individual concentration of each state is less than 9% as of December 31, 2019 . 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 or in nonaccrual status which is assessed monthly. The credit quality of RMLs as at March 31, 2020 and December 31, 2019 , respectively, was as follows: March 31, 2020 December 31, 2019 Performance indicators: Carrying Value % of Total Carrying Value % of Total Performing $ 1,282 100 % $ 843 100 % Non-performing 11 — % 2 — % Total residential mortgage loans, gross of valuation allowance $ 1,293 100 % 845 100 % Allowance for expected credit loss (11 ) — % — — % Total residential mortgage loans $ 1,282 100 % $ 845 100 % Loans segregated by risk rating exposure as at March 31, 2020 , was as follows: March 31, 2020 Term Loans Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total Residential mortgages Current (less than 30 days past due) 304 671 73 48 63 3 1,162 30-89 days past due 12 100 6 — 2 — 120 Over 90 days past due — 9 2 — — — 11 Total residential mortgages 316 780 81 48 65 3 1,293 Commercial mortgages Current (less than 30 days past due) 68 — 6 — 11 403 488 30-89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage 68 — 6 — 11 403 488 March 31, 2020 Term Loans Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total Commercial mortgages LTV Less than 50% — — 6 — — 278 284 50% to 60% 34 — — — — 125 159 60% to 75% 34 — — — 11 — 45 Total commercial mortgages 68 — 6 — 11 403 488 Commercial mortgages DSCR Greater than 1.25x 68 — 6 — 11 397 482 1.00x - 1.25x — — — — — 6 6 Less than 1.00x — — — — — — — Total commercial mortgages 68 — 6 — 11 403 488 Allowance for Expected Credit Loss The Company estimates expected credit losses for their residential mortgage loan portfolio using a probability of default/loss given default model. Significant inputs to this model include the loans current performance, underlying collateral type, location, contractual life, LTV, and Debt to Income or FICO. The model projects losses using a 2 year reasonable and supportable forecast and then reverts over a 3 year period to market-wide historical loss experience. Changes in the Company’s allowance for expected credit losses on commercial mortgage loans are recognized in “Net investment gains (losses)” in the accompanying unaudited Condensed Consolidated Statements of Operations. Residential Mortgage Loans Commercial Mortgage Loans Total Balance as at January 1, 2020 7 1 8 (Reversal of) provision for loan losses 4 — 4 Balance as at March 31, 2020 11 1 12 An allowance for expected credit loss is not measured on accrued interest income for commercial mortgage loans as the Company has a process to write-off interest on loans that enter in to non-accrual status (over 90 days past due). March 31, 2020 Residential Mortgage Loans 11 Commercial Mortgage Loans — Total loans that are 90 days or more past due and still accruing 11 Net Investment Income The major sources of “Net investment income” reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows: Three months ended March 31, 2020 March 31, 2019 Fixed maturity securities, available-for-sale $ 258 $ 265 Equity securities 14 21 Mortgage loans 21 7 Invested cash and short-term investments 4 3 Funds withheld 22 8 Limited partnerships 25 8 Other investments 6 5 Gross investment income 350 317 Investment expense (33 ) (28 ) Net investment income $ 317 $ 289 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 March 31, 2020 March 31, 2019 Net realized gains (losses) on fixed maturity available-for-sale securities $ 21 $ (3 ) Net realized/unrealized gains (losses) on equity securities (135 ) 78 Realized gains (losses) on other invested assets (7 ) 1 Change in allowance for expected credit losses (48 ) — Derivatives, embedded derivatives and financial instruments under fair value option: Realized gains (losses) on certain derivative instruments 38 (26 ) Unrealized gains (losses) on certain derivative instruments (396 ) 190 Change in fair value of reinsurance related embedded derivatives and change in fair value of funds withheld for reinsurance receivables, held at fair value (a) (161 ) (3 ) Change in fair value of other derivatives and embedded derivatives (4 ) 3 Realized gains (losses) on derivatives and embedded derivatives (523 ) 164 Net investment gains (losses) $ (692 ) $ 240 (a) Change in fair value of reinsurance related embedded derivatives is due to F&G Re and FSRC unaffiliated third party business under the fair value option election, and activity related to the FGL Insurance and Kubera reinsurance treaty. The Company's adoption of ASU 2016-13 had a $(48) impact on pre-tax net income (loss), or $(0.23) per common share, for the three months ended March 31, 2020. 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 March 31, 2020 March 31, 2019 Proceeds $ 462 $ 474 Gross gains 16 5 Gross losses (3 ) (10 ) Unconsolidated Variable Interest Entities FGL Insurance owns investments in VIEs that are not consolidated within the Company’s financial statements, and one investment in a VIE that is 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. VIE’s are consolidated by their ‘primary beneficiary’, a designation given to an entity that receives both the benefits from the VIE as well as the substantive power to make its key economic decisions. While FGL Insurance participates in the benefits from VIEs in which it invests, but does not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under common control with FGL Insurance. It is for this reason that FGL Insurance is not considered the primary beneficiary for the VIE investments that are not consolidated. The Company has concluded it is the primary beneficiary of BIS Co-Invest Fund II L.P (“Co-Invest II”). The primary beneficiary conclusion was drawn given the fact that substantially all of Co-Invest II’s activities are conducted on behalf of the Company, its sole investor and limited partner. As the Company is considered the primary beneficiary, Co-Invest II is consolidated within the Company’s financial statements. As of March 31, 2020 , the Company has $52 of net assets recorded related to Co-Invest II. The Company previously executed a commitment of $83 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 Company had fully funded this commitment as of January 31, 2020. During the quarter ended March 31, 2020 , the BDC was listed on the NASDAQ. The Company invests in various limited partnerships as a passive investor. These investments are in credit funds with a bias towards current income, 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 unaudited Condensed Consolidated Balance Sheets. The Company's maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in the Company's unaudited Condensed Consolidated Balance Sheets in addition to any required unfunded commitments. As of March 31, 2020 , the Company's maximum exposure to loss was $1,066 in recorded carrying value and $1,252 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 December 31, 2019 Assets: Derivative investments: Call options $ 188 $ 587 Other Invested Assets: Other embedded derivatives 17 21 Funds withheld: Call options 1 3 $ 206 $ 611 Liabilities: Contractholder funds: FIA embedded derivative $ 3,303 $ 3,235 Other liabilities: Futures contracts 2 — Reinsurance related embedded derivative (18 ) 33 Preferred shares reimbursement feature embedded derivative 37 16 $ 3,324 $ 3,284 The change in fair value of derivative instruments included in the accompanying unaudited Condensed Consolidated Statements of Operations is as follows: Three months ended March 31, 2020 March 31, 2019 Net investment gains (losses): Call options $ (360 ) $ 154 Futures contracts — 8 Foreign currency forward 2 2 Other derivatives and embedded derivatives (4 ) 3 Reinsurance related embedded derivatives (161 ) (3 ) Total net investment gains (losses) $ (523 ) $ 164 Benefits and other changes in policy reserves: FIA embedded derivatives $ 68 $ 244 Acquisition and operating expenses, net of deferrals: Preferred shares reimbursement feature embedded derivative $ 21 $ (2 ) Additional Disclosures Other Derivatives and Embedded Derivatives The Company holds a fund-linked note issued by Nomura International Funding Pte. Ltd with a face value of $35 . 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"), which was based on the actual return of the fund. At March 31, 2020 , the fair value of the fund-linked note and embedded derivative were $29 and $17 , respectively. At December 31, 2019 , the fair value of the fund-linked note and embedded derivative were $29 and $21 , 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 unaudited 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 through the current credit period. 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. 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: March 31, 2020 Counterparty Credit Rating (Fitch/Moody's/S&P) (a) Notional Fair Value Collateral Net Credit Risk Merrill Lynch A+/*/A+ $ 2,583 $ 7 $ — $ 7 Deutsche Bank BBB/A3/BBB+ 35 2 1 1 Morgan Stanley */A1/A+ 2,162 8 9 — Barclay's Bank A+/A1/A 4,521 115 110 5 Canadian Imperial Bank of Commerce AA/Aa2/A+ 2,727 31 25 6 Wells Fargo A+/A2/A- 2,558 21 26 — Goldman Sachs A/A3/BBB+ 1,112 5 3 2 Total $ 15,698 $ 189 $ 174 $ 21 December 31, 2019 Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch A+/*/A+ $ 2,718 $ 88 $ 43 $ 45 Deutsche Bank BBB/A3/BBB+ 157 7 7 — Morgan Stanley */A1/A+ 2,053 66 65 1 Barclay's Bank A+/A2/A 4,290 211 193 18 Canadian Imperial Bank of Commerce */Aa2/A+ 2,691 106 74 32 Wells Fargo A+/A2/A- 2,165 81 80 1 Goldman Sachs A/A3/BBB+ 1,065 31 27 4 Total $ 15,139 $ 590 $ 489 $ 101 (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 March 31, 2020 and December 31, 2019 , counterparties posted $174 and $489 of collateral, respectively, of which $174 and $446 is included in "Cash and cash equivalents" with an associated payable for this collateral included in "Other liabilities" on the unaudited Condensed Consolidated Balance Sheets . The remaining $0 and $43 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 unaudited Condensed Consolidated Balance Sheets at March 31, 2020 and December 31, 2019 , 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 $21 and $101 at March 31, 2020 and December 31, 2019 , 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 unaudited Condensed Consolidated Balance Sheets. The Company held 379 and 879 futures contracts at March 31, 2020 and December 31, 2019 , 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 unaudited Condensed Consolidated Balance Sheets. The amount of cash collateral held by the counterparties for such contracts was $4 and $5 at March 31, 2020 and December 31, 2019 , respectively. 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 unaudited Condensed Consolidated Balance Sheets and it is determined 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. Reinsurance Related Embedded Derivatives FGL Insurance entered into a reinsurance agreement with Kubera effective December 31, 2018, to cede certain MYGA and deferred annuity statutory reserve on a coinsurance funds withheld basis, net of applicable existing reinsurance. This arrangement creates an obligation for FGL Insurance to pay Kubera at a later date, which results in an embedded derivative. This embedded derivative is considered a total return swap with contractual returns that are attributable to the assets and liabilities associated with this reinsurance arrangement. The fair value of the total return swap is based on the change in fair value of the underlying assets held in the funds withheld portfolio. Investment results for the assets that support the coinsurance with funds withheld reinsurance arrangement, including gains and losses from sales, were passed directly to the reinsurer pursuant to contractual terms of the reinsurance arrangement. The reinsurance related embedded derivative is reported in “Other assets” if in a net gain position, or “Other liabilities”, if in a net loss position, on the unaudited Condensed Consolidated Balance Sheets and the related gains or losses are reported in “Net investment gains (losses)” on the unaudited Condensed Consolidated Statements of Operations . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 776 $ — $ — $ 776 $ 776 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,183 762 4,945 4,945 Commercial mortgage-backed securities — 2,456 25 2,481 2,481 Corporates — 9,252 1,199 10,451 10,451 Hybrids 267 621 3 891 891 Municipals — 1,279 39 1,318 1,318 Residential mortgage-backed securities — 363 507 870 870 U.S. Government 37 6 — 43 43 Foreign Governments — 125 16 141 141 Equity securities 365 549 1 915 915 Derivative investments — 188 — 188 188 Other invested assets — — 40 40 40 Funds withheld for reinsurance receivables, at fair value 289 1,761 — 2,050 2,050 Total financial assets at fair value $ 1,734 $ 20,783 $ 2,592 $ 25,109 $ 25,109 Liabilities Fair value of future policy benefits — — 1,904 1,904 1,904 Derivatives: FIA embedded derivatives, included in contractholder funds — — 3,303 3,303 3,303 Reinsurance related embedded derivative, included in other liabilities — (18 ) — (18 ) (18 ) Derivative instruments - futures contracts 2 — — 2 2 Preferred shares reimbursement feature embedded derivative — — 37 37 37 Total financial liabilities at fair value $ 2 $ (18 ) $ 5,244 $ 5,228 $ 5,228 December 31, 2019 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 969 $ — $ — $ 969 $ 969 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,866 828 5,694 5,694 Commercial mortgage-backed securities — 2,895 27 2,922 2,922 Corporates — 10,305 1,292 11,597 11,597 Hybrids 299 718 10 1,027 1,027 Municipals — 1,301 42 1,343 1,343 Residential mortgage-backed securities — 408 546 954 954 U.S. Government 28 6 — 34 34 Foreign Governments — 137 18 155 155 Equity securities 387 614 1 1,002 1,002 Derivative investments — 587 — 587 587 Other invested assets — — 46 46 46 Funds withheld for reinsurance receivables, at fair value 314 1,856 1 2,171 2,171 Total financial assets at fair value $ 1,997 $ 23,693 $ 2,811 $ 28,501 $ 28,501 Liabilities Fair value of future policy benefits — — 1,953 1,953 1,953 Derivatives: FIA embedded derivatives, included in contractholder funds — — 3,235 3,235 3,235 Reinsurance related embedded derivative, included in other liabilities — 33 — 33 33 Preferred shares reimbursement feature embedded derivative — — 16 16 16 Total financial liabilities at fair value $ — $ 33 $ 5,204 $ 5,237 $ 5,237 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 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. 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. Derivative Financial Instruments The fair value of call option assets 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 industry accepted 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 contracts 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 using the option budget method. The market observable inputs are the market value of option and interest swap rates. The significant unobservable inputs are the budgeted option cost (i.e., the expected cost to purchase call options in future periods to fund the equity indexed linked feature), surrender rates, mortality multiplier, and non-performance spread. The mortality multiplier at March 31, 2020 and December 31, 2019 was applied to the Annuity 2000 mortality tables. Increases or decreases in the market value of an option in isolation would result in a higher or lower, respectively, fair value measurement. 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 reinsurance-related embedded derivative in the funds withheld reinsurance agreement with Kubera is estimated based upon the fair value of the assets supporting the funds withheld from reinsurance liabilities. The fair value of the assets is based on a quoted market price of similar assets (Level 2), and therefore the fair value of the embedded derivative is based on market-observable inputs and classified as Level 2. 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 increased $21 during the three months ended March 31, 2020 , due primarily to changes in the credit spread applied in the discount rate. 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 March 31, 2020 discounted cash flow model equaled $(263) . 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 March 31, 2020 and December 31, 2019 , are as follows: Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) March 31, 2020 March 31, 2020 Assets Asset-backed securities $ 624 Broker-quoted Offered quotes 91.53% - 112.18% Asset-backed securities 138 Third-Party Valuation Offered quotes 0.00% - 105.02% Commercial mortgage-backed securities 25 Broker-quoted Offered quotes 84.49% - 119.30% Corporates 293 Broker-quoted Offered quotes 82.38% - 102.13% Corporates 906 Third-Party Valuation Offered quotes 59.84% - 116.89% Hybrids 3 Third-Party Valuation Offered quotes 100.80% - 100.80% Municipals 39 Third-Party Valuation Offered quotes 118.01% - 118.01% Residential mortgage-backed securities 500 Broker-quoted Offered quotes 0.00% - 103.20% Residential mortgage-backed securities 7 Third-Party Valuation Offered quotes 95.61% - 95.61% Foreign governments 16 Third-Party Valuation Offered quotes 102.02% - 102.85% Equity securities (Salus preferred equity) 1 Income-Approach Yield 2.33% Other Invested Assets: Available-for-sale embedded derivative (AnchorPath) 17 Black Scholes model Market value of AnchorPath fund 100.00% Credit Linked Note 23 Broker-quoted Offered quotes 100.00% Total financial assets at fair value $ 2,592 Liabilities Future policy benefits 1,904 Discounted cash flow Market value of option 0.00% - 5.37% Mortality multiplier 80.00% - 120.00% Surrender rates 0.50% - 55.00% Partial withdrawals 0.00% - 4.00% Non-performance spread 0.00% - 0.17% Option cost 0.00% - 5.00% Risk margin to reflect uncertainty 0.31% - 0.96% Morbidity risk margin 0.00% - 2.00% Derivatives: FIA embedded derivatives included in contractholder funds 3,303 Discounted cash flow Market value of option 0.00% - 26.37% SWAP rates 0.52% - 0.72% Mortality multiplier 80.00% - 80.00% Surrender rates 0.50% - 75.00% Partial withdrawals 2.00% - 3.50% Non-performance spread 0.25% - 0.25% Option cost 0.09% - 16.61% Preferred shares reimbursement feature embedded derivative 37 Black Derman Toy model Credit Spread 7.51% Yield Volatility 20% Total financial liabilities at fair value $ 5,244 Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2019 December 31, 2019 Assets Asset-backed securities $ 801 Broker-quoted Offered quotes 98.65% - 119.35% Asset-backed securities 27 Third-Party Valuation Offered quotes 0.00% - 99.43% Commercial mortgage-backed securities 27 Broker-quoted Offered quotes 100.15% - 127.60% Corporates 346 Broker-quoted Offered quotes 83.51% - 106.73% Corporates 946 Third-Party Valuation Offered quotes 98.58% - 119.44% Hybrids 10 Third-Party Valuation Offered quotes 104.72% - 104.72% Municipals 42 Third-Party Valuation Offered quotes 127.68% - 127.68% Residential mortgage-backed securities 546 Broker-quoted Offered quotes 0.00% - 106.50% Foreign governments 18 Third-Party Valuation Offered quotes 110.12% - 118.09% Equity securities (Salus preferred equity) 1 Income-Approach Yield 2.47% Other Invested Assets: Available-for-sale embedded derivative (AnchorPath) 21 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 1 Broker-quoted Offered quotes 100.00% Total financial assets at fair value $ 2,811 Liabilities Future policy benefits 1,953 Discounted cash flow Market value of option 0.00% - 11.20% (2.50%) Mortality multiplier 80.00% - 120.00% (95.46%) Surrender rates 0.00% - 55.00% (21.18%) Partial withdrawals 0.00% - 4.00% (2.28%) Non-performance spread 0.00% - 0.08% (0.03%) Option cost 0.00% - 5.02% (1.28%) Risk margin to reflect uncertainty 0.23% - 0.96% (0.34%) Morbidity risk margin 0.00% - 2.00% (0.07%) Derivatives: FIA embedded derivatives included in contractholder funds 3,235 Discounted cash flow Market value of option 0.00% - 32.54% SWAP rates 1.73% - 1.90% Mortality multiplier 80.00% - 80.00% Surrender rates 0.50% - 75.00% Partial withdrawals 2.00% - 3.50% Non-performance spread 0.25% - 0.25% Option cost 0.18% - 16.61% Preferred shares reimbursement feature embedded derivative 16 Black Derman Toy model Credit Spread 3.81% Yield Volatility 20% Total financial liabilities at fair value $ 5,204 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 months ended March 31, 2020 and 2019 , 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 March 31, 2020 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 828 $ (2 ) $ (34 ) $ 147 $ — $ (158 ) $ (19 ) $ 762 $ (34 ) Commercial mortgage-backed securities 27 — (2 ) — — — — 25 (2 ) Corporates 1,292 — (73 ) 1 — (21 ) — 1,199 (73 ) Hybrids 10 — (1 ) — — (6 ) — 3 (1 ) Municipals 42 — (3 ) — — — — 39 (3 ) Residential mortgage-backed securities 546 — (17 ) 5 — (21 ) (6 ) 507 (17 ) Foreign Governments 18 — (2 ) — — — — 16 (2 ) Equity securities 1 — — — — — — 1 — Other invested assets: Available-for-sale embedded derivative 21 (4 ) — — — — — 17 — Credit linked note 25 — (2 ) — — — — 23 — Funds withheld for reinsurance receivables, at fair value 1 — — — — — (1 ) — — Total assets at Level 3 fair value $ 2,811 $ (6 ) $ (134 ) $ 153 $ — $ (206 ) $ (26 ) $ 2,592 (132 ) Liabilities Future policy benefits $ 1,953 $ (100 ) $ (3 ) $ — $ — $ 54 $ — $ 1,904 $ — FIA embedded derivatives, included in contractholder funds 3,235 279 — 140 (47 ) (304 ) — 3,303 — Preferred shares reimbursement feature embedded derivative 16 21 37 — Total liabilities at Level 3 fair value $ 5,204 $ 200 $ (3 ) $ 140 $ (47 ) $ (250 ) $ — $ 5,244 $ — (a) The net transfers out of Level 3 during the three months ended March 31, 2020 were exclusively to Level 2. Three months ended March 31, 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 $ — $ 5 $ 114 $ — $ (31 ) $ (24 ) $ 508 Commercial mortgage-backed securities 67 — 2 — — (1 ) — 68 Corporates 1,231 (1 ) 24 — (21 ) (35 ) 11 1,209 Hybrids 10 — — — — — — 10 Municipals 37 — 1 — — — — 38 Residential mortgage-backed securities 614 — 16 7 — (18 ) — 619 Foreign Governments 16 — — — — — — 16 Equity securities 4 — 1 — — — 15 20 Other invested assets: Available-for-sale embedded derivative 14 2 — — — — — 2 Credit linked note 25 — — — — — — 25 Funds withheld for reinsurance receivables, at fair value 4 — — 5 — — (2 ) 7 Total assets at Level 3 fair value $ 2,466 $ 1 $ 49 $ 126 $ (21 ) $ (85 ) $ — $ 2,536 Liabilities Future policy benefits (FSRC) $ 725 $ 29 $ — $ — $ — $ 43 $ — $ 797 FIA embedded derivatives, included in contractholder funds 2,476 59 — 127 (33 ) 91 — 2,720 Preferred shares reimbursements feature embedded derivative 29 (2 ) — — — — — 27 Total liabilities at Level 3 fair value $ 3,230 $ 86 $ — $ 127 $ (33 ) $ 134 $ — $ 3,544 (a) The net transfers out of Level 3 during the three months ended March 31, 2019 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. FHLB Common Stock The fair value of FHLB common stock is based on cost. Mortgage Loans The fair value of mortgage loans is established using a discounted cash flow method based on internal credit rating, maturity and future income. This yield-based approach is sourced from our third-party vendor. The internal 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. 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. Affiliated Other Invested Assets (included within Other Invested Assets) The fair value of the affiliated bank loan is estimated using a discounted cash flow method based on the weighted average cost of capital ("WACC"). This yield-based approach is sourced from a third-party vendor and the WACC establishes a market participant discount rate by determining the hypothetical capital structure for the asset should it be underwritten as of each period end. 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. 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 and Revolving Credit Facility 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 unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. March 31, 2020 Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 65 $ — $ 65 $ 65 Commercial mortgage loans — — 507 507 487 Residential mortgage loans — — 1,297 1,297 1,282 Policy loans, included in other invested assets — — 19 19 29 Affiliated other invested assets — — 26 26 28 Company-owned life insurance 264 264 264 Total $ — $ 65 $ 2,113 $ 2,178 $ 2,155 Liabilities Investment contracts, included in contractholder funds — — 19,915 19,915 22,923 Debt — 537 — 537 543 Total $ — $ 537 $ 19,915 $ 20,452 $ 23,466 December 31, 2019 Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 62 $ — $ 62 $ 62 Commercial mortgage loans — — 435 435 422 Residential mortgage loans — — 848 848 845 Policy loans, included in other invested assets — — 14 14 28 Company-owned life insurance — — 129 129 129 Affiliated other invested assets — — 28 28 28 Funds withheld for reinsurance receivables, at fair value — — 1 1 1 Total $ — $ 62 $ 1,455 $ 1,517 $ 1,515 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 19,285 $ 19,285 $ 22,449 Debt — 578 — 578 542 Total $ — $ 578 $ 19,285 $ 19,863 $ 22,991 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 2019 Form 10-K. Carrying Value After Measurement March 31, 2020 December 31, 2019 Equity securities $ — $ 69 Limited partnership investment, included in other invested assets 1,065 1,010 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. Equity method investments are reported on a lag of up to three months for investee information not received sufficiently timely. For the quarter ended March 31, 2020, the Company received updated NAVs on two investments reported on a lag that showed a decline in valuation of $20 which will be reported in the next quarter period end. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 $ 593 $ 630 $ 232 $ 1,455 Deferrals — 106 27 133 Amortization 19 25 12 56 Interest 4 5 1 10 Unlocking (5 ) (1 ) 1 (5 ) Adjustment for net unrealized investment (gains) losses 262 79 39 380 Balance at March 31, 2020 $ 873 $ 844 $ 312 $ 2,029 VOBA DAC DSI Total Balance at December 31, 2018 $ 866 $ 344 $ 149 $ 1,359 Deferrals — 91 35 126 Amortization (31 ) (3 ) (2 ) (36 ) Interest 4 2 1 7 Unlocking — — — — Adjustment for net unrealized investment (gains) losses (35 ) — — (35 ) Balance at March 31, 2019 $ 804 $ 434 $ 183 $ 1,421 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 March 31, 2020 and 2019 , the VOBA balances included cumulative adjustments for net unrealized investment (gains) losses of $155 and $40 , respectively, the DAC balances included cumulative adjustments for net unrealized investment (gains) losses of $9 and $5 , respectively, and the DSI balance included net unrealized investment (gains) losses of $10 and $2 , respectively. Estimated amortization expense for VOBA in future fiscal periods is as follows: Estimated Amortization Expense Fiscal Year 2020 63 2021 86 2022 83 2023 74 2024 66 Thereafter 347 The Company had an unearned revenue liability balance of $(87) as of March 31, 2020 , including deferrals of $(12) , amortization of $(2) , interest of $(1) , unlocking of $1 and adjustment for net unrealized investment gains (losses) of $(30) . The Company had an unearned revenue liability balance of $(39) as of March 31, 2019 , including deferrals of $(9) , amortization of $2 , unlocking of $0 and adjustment for net unrealized investment gains (losses) of $9 . Definite and Indefinite Lived Intangible Assets Other intangible assets as of March 31, 2020 consist of the following: Cost Accumulated amortization Net carrying amount Weighted average useful life (years) Trade marks / trade names $ 16 $ 4 $ 12 10 State insurance licenses 6 N/A 6 Indefinite Total $ 18 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The carrying amount of the Company's outstanding debt as of March 31, 2020 and December 31, 2019 is as follows: March 31, 2020 December 31, 2019 Debt $ 543 $ 542 As of March 31, 2020 and December 31, 2019 , the Company had not drawn on the revolving credit facility (the "revolver"), which would have carried interest rates equal to 3.74% and 4.55% , respectively, had we drawn on the revolver. As of March 31, 2020 and December 31, 2019 , the amount available to be drawn on the revolver was $250 . The revolver has a maturity date of April 2025. The interest expense for the three months ended March 31, 2020 and 2019 was $8 and $8 , respectively. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 , the Company did not repurchase any shares under the repurchase program. As of March 31, 2020 , the Company had repurchased a total of 8,652 thousand shares for a total cost of $69 . Dividends The Company declared the following cash dividend to its common shareholders during the three months ended March 31, 2020 . Date Declared Date Paid Date Shareholders of record Shareholders of record (in thousands) Cash Dividend declared (per share) Total cash paid February 26, 2020 March 30, 2020 March 16, 2020 222,119 $0.01 $2 On May 6, 2020, the Company's Board of Directors will declare a quarterly cash dividend of $0.01 per share. The dividend will be paid on June 8, 2020 to shareholders of record as of May 26, 2020. The Company declared the following cash dividend to its common shareholders during the three months ended March 31, 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 The Company declared the following dividends to its preferred shareholders during the three months ended March 31, 2020 : 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 31, 2020 April 1, 2020 March 15, 2020 321 Paid in kind $— 6 Series B Preferred Shares March 31, 2020 April 1, 2020 March 15, 2020 117 Paid in kind $— 2 The Company declared the following dividends to its preferred shareholders during the three months ended March 31, 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 |
Stock Compensation
Stock Compensation | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , 5,714 thousand equity awards are available for future issuance. FGL Incentive Plan A summary of the Company’s outstanding stock options as of March 31, 2020 , and related activity during the three months ended March 31, 2020 , is as follows (share amount in thousands): Stock Option Awards Options Weighted Average Exercise Price Stock options outstanding at December 31, 2019 15,214 $ 9.30 Granted — — Exercised — — Forfeited or expired (97 ) 10.00 Stock options outstanding at March 31, 2020 15,117 9.30 Exercisable at March 31, 2020 1,467 9.31 Vested or projected to vest at March 31, 2020 15,117 9.30 The Company granted 95 thousand restricted shares to directors in the three months ended March 31, 2020 . These shares will vest on December 31, 2020. The total fair value of the restricted shares granted in the three months ended March 31, 2020 was $1 . A summary of the Company’s nonvested restricted shares outstanding as of March 31, 2020 , and related activity during the three 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, 2019 — $ — Granted 95 10.48 Vested — — Forfeited or expired — — Vested or expected to vest at March 31, 2020 95 10.48 Management Incentive Plan In the three months ended March 31, 2020 , the Company granted 456 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 three months ended March 31, 2020 was $5 . The phantom units granted in 2020 vest in three equal installments on each March 15 th from 2021 to 2023, subject to awardees continued service with the Company. At March 31, 2020 , the liability for phantom units of $2 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 $9.80 . A summary of the Management Incentive Plan nonvested phantom units outstanding as of March 31, 2020 , and related activity during the three months ended , is as follows (share amount in thousands): Phantom units Shares Weighted Average Grant Date Fair Value Phantom units outstanding at December 31, 2019 745 $ 9.02 Granted 456 10.87 Vested (123 ) 9.14 Forfeited or expired — — Phantom units outstanding at March 31, 2020 1,078 9.79 The Company recognized total stock compensation expense related to the FGL Incentive Plan and Management Incentive Plan is as follows: Three months ended March 31, 2020 Total stock compensation expense 3 Related tax benefit 1 Net stock compensation expense $ 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 March 31, 2020 and the weighted-average period over which this expense will be recognized are as follows: Unrecognized Compensation Weighted Average Recognition FGL Incentive Plan 17 3 Management Incentive Plan 10 2 Total unrecognized stock compensation expense $ 27 3 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 was 0% . The effective tax rate for the three months ended March 31, 2019 was 5% . The effective tax rate on pre-tax income for the three months ended March 31, 2020 differs from the U.S Federal statutory rate for 2020 of 21% primarily due to two factors. First, the Company had substantial losses in jurisdictions that do not impose an income tax. Secondly, a valuation allowance was recorded for FSRC for all of its deferred tax assets. The effective tax rate on pre-tax income for the three months ended March 31, 2019 differed 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. On March 27, 2020, President Trump signed into law the CARES Act, which, along with earlier issued IRS guidance, amended many provisions of the Internal Revenue Code of 1986. The CARES Act, among other things, contains numerous provisions which may benefit the Company. A $1 benefit has been recorded for the three months ended March 31, 2020. We continue to assess the effect of the CARES Act and ongoing government guidance related to COVID-19 that may be issued. As of March 31, 2020 , the Company had a partial valuation allowance of $297 against its deferred tax assets of $561 . The valuation allowance is an offset to the non-life companies and FSRC deferred tax assets, and a partial valuation allowance on the unrealized capital losses on the U.S. life insurance subsidiaries. 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 incurred a large loss in the current quarter which resulted in a cumulative loss position. The Company does not currently have any tax planning strategies sufficient enough to offset those losses. The Company's U.S. life insurance subsidiaries have sources of capital gain income, but not enough to cover all of its unrealized loss deferred tax assets. The valuation allowance is reviewed quarterly and will be maintained until there is sufficient positive evidence, if any, 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 | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has unfunded investment commitments as of March 31, 2020 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: March 31, 2020 Asset Type Other invested assets $ 1,252 Fixed maturity securities, available-for-sale 111 Other assets $ 71 Residential mortgage loans 18 Total $ 1,452 As of March 31, 2020 , 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 and January 2031. 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 March 31, 2020 , 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). On October 15, 2019, BIP filed with the Court an Unopposed Motion for Preliminary Approval of Settlement and Class Certification, along with a copy of the Class Action Settlement Agreement signed by all parties. A Fairness Hearing on Plaintiff’s Motion for Preliminary Approval of Class Settlement was held on Monday, January 13, 2020. On January 15, 2020, the Court issued the Modified Findings and Order Preliminarily Approving Class Settlement Between Plaintiff and Defendants, Granting Conditional Certification of Settlement Class, Directing Issuance of Notice to the Class, and Setting of Final Approval Hearing ("Preliminary Approval Order"). In preliminarily approving the Class Settlement, the Court also approved the Settlement Schedule that had been filed by Class Counsel on January 10, 2020. After confirmatory discovery, the Court, on April 22, 2020, amended its Preliminary Approval Order and the Settlement Schedule. Final settlement is subject to, among other requirements, final approval by the Court after Court-approved Notice has been provided to the absent members of the putative class. On September 1, 2020, the Court will hold a hearing to determine whether to grant final approval to the settlement. On April 9, 2020, a complaint was filed in the United States District Court for the District of Delaware against FGL, the members of its board of directors, Fidelity F I Corp. and F II Corp., captioned Sabatini v. FGL Holdings, et al. , Case No. 1:20-cv-00495 (D. Del.). The complaint alleges that the registration statement issued in connection with the proposed merger between FGL and Fidelity omitted material information in violation of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, rendering the registration statement false and misleading. Specifically, the complaint alleges that the registration statement failed to disclose material information regarding (i) FGL's financial projections, (ii) Houlihan's fairness opinion analyses (including the selected companies, selected transactions, and discounted cash flow analyses); (iii) purported "conflicts" relating to Houlihan, Credit Suisse and CC Capital Partners; and (iv) whether the confidentiality agreement used during the go-shop period contained a standstill or "don't ask, don't waive" provision. The complaint seeks an order enjoining the proposed merger unless and until additional disclosures are issued; rescinding the proposed merger, to the extent it closes; awarding damages; awarding costs, including attorneys’ fees, expert fees and expenses; and awarding such other relief as the court deems proper. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019 were as follows: Three months ended March 31, 2020 March 31, 2019 Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Direct 50 130 57 372 Assumed — (115 ) — 20 Ceded (40 ) (56 ) (41 ) (53 ) Net 10 (41 ) 16 339 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 three months ended March 31, 2020 and 2019 . The Company did not commute any ceded reinsurance treaties during the three months ended March 31, 2020 or 2019 . The Company estimated $22 of expected credit losses on reinsurance recoverable balances as of January 1, 2020 and recorded that estimate as a reduction to retained earnings as part of the adoption of ASC 326. The Company estimates expected credit losses on reinsurance recoverables using a probability of default/loss given default model. Significant inputs to the model include the reinsurers credit risk, expected timing of recovery, industry-wide historical default experience, senior unsecured bond recovery rates, and credit enhancement features. During the quarter ended March 31, 2020 , the expected credit loss reserve was not adjusted. 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 guaranteed minimum withdrawal benefits "(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 $5 during the three months ended March 31, 2020 , 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 quota share percentage of MYGA and deferred annuity policies for certain issue years to Kubera. Effective June 30, 2019, FGL Insurance and Kubera executed a letter of intent to amend this agreement and cede an additional $185 of MYGA GAAP reserves on a coinsurance funds withheld basis via a quota share percentage of certain issue years. 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 a quota share percentage of FIA policies for certain issue years to Kubera. 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 FIA statutory reserves on a coinsurance funds withheld basis via a quota share percentage of certain issue years. 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 March 31, 2020 , FSRC had $266 of funds withheld receivables and $263 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. At March 31, 2020 , F&G Re had $1,784 of funds withheld receivables and $1,641 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 2019 Form 10-K. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company, and certain subsidiaries of the Company, entered into investment management agreements ("IMAs") with Blackstone ISG-I Advisors LLC ("BISGA"), a wholly-owned subsidiary of The Blackstone Group LP ("Blackstone") on December 1, 2017. On December 31, 2019, to be effective as of October 31, 2019, FGL Insurance and certain subsidiaries of the Company entered into amended and restated IMAs (the “Restated IMAs”) with BISGA, pursuant to which BISGA was appointed as investment manager of the Company’s general accounts (the “F&G Accounts”). Pursuant to the terms of the Restated IMAs, BISGA may delegate any or all of its discretionary investment, advisory and other rights, powers, functions and obligations under the Restated IMAs to one or more sub-managers, including its affiliates. BISGA delegated certain investment services to its affiliates, Blackstone Real Estate Special Situations Advisors L.L.C. (“BRESSA”) and GSO Capital Advisors II LLC (“GSO Capital Advisors”), pursuant to sub-management agreements executed between BISGA and each of BRESSA and GSO Capital Advisors. During the three months ended March 31, 2020 , the fees paid to BISGA under the Restated IMAs and the IMAs were approximately $26 . As of March 31, 2020 and December 31, 2019 , the Company has a net liability of $33 and $47 , respectively, for the services consumed under the Restated IMAs, the IMAs and related sub-management agreements, partially offset by fees received and expense reimbursements from BISGA. During the three months ended March 31, 2020 and 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 $2 for the three months ended March 31, 2020 and 2019 , respectively. 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 March 31, 2020 and December 31, 2019 , the Company held $1,978 and $2,001 in affiliated investments, respectively, which includes foreign exchange unrealized loss of $ (5) and $ (3) , respectively. As of March 31, 2020 and December 31, 2019 , the Company had unfunded commitments relating to affiliated investments of $1,042 and $993 , respectively. The Company purchased $103 of residential loans from Finance of America Holdings LLC, a Blackstone affiliate, and $67 of commercial mortgage loans from Blackstone Real Estate Debt Strategies, a Blackstone affiliate, during the three months ended March 31, 2020 . 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 for the three months ended March 31, 2020 and 2019 . The Company had $(3) and no gross realized gains or realized impairment losses on related party investments during the three months ended March 31, 2020 and 2019 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 March 31, 2019 Net income (loss) $ (338 ) $ 171 Less Preferred stock dividend 8 8 Net income (loss) available to common shares (346 ) 163 Weighted-average common shares outstanding - basic 213,155 219,646 Dilutive effect of unvested restricted stock — 36 Weighted-average shares outstanding - diluted 213,155 219,682 Net income (loss) per common share: Basic $ (1.62 ) $ 0.74 Diluted $ (1.62 ) $ 0.74 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. Under applicable accounting guidance, companies in a loss position are required to use basic weighted average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our net loss for the three months ended March 31, 2020, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share, as the inclusion of 12 thousand restricted shares and 604 thousand stock options would have been antidilutive to the calculation. If we had not incurred a net loss in the three months ended March 31, 2020, dilutive potential common shares would have been 213,771 thousand . The calculation of diluted earnings per share for the three months ended March 31, 2020 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 438 thousand preferred stock shares outstanding as of March 31, 2020 as the contingency that would allow for the preferred shares to be converted to common shares has not yet been met. The number of weighted average equivalent shares excluded is 276 thousand shares for the three months ended March 31, 2020 . The calculation of diluted earnings per share for the three months ended March 31, 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 406 thousand preferred stock shares outstanding as of March 31, 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 months ended March 31, 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 1,737 shares for the three months ended March 31, 2019 |
Insurance Subsidiary Financial
Insurance Subsidiary Financial Information and Regulatory Matters | 3 Months Ended |
Mar. 31, 2020 | |
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. 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 $ 13 increase and $110 decrease to statutory capital and surplus at March 31, 2020 and December 31, 2019 , 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 at March 31, 2020 and December 31, 2019 . 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 $ 1 and $6 at March 31, 2020 and December 31, 2019 , respectively. Without such permitted statutory accounting practices Raven Re’s statutory capital and surplus (deficit) would be $ (10) and $(19) as of March 31, 2020 and December 31, 2019 , 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 March 31, 2020 and December 31, 2019 was $ 92 and $87 , respectively. As of March 31, 2020 , 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) | 3 Months Ended |
Mar. 31, 2020 | |
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 . See "Note 4. Investments" to the Company’s unaudited condensed consolidated financial statements for additional information on VIEs. |
Significant Accounting Policies and Practices | Adoption of New Accounting Pronouncements Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment , effective for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. Under this update: • the subsequent measurement of goodwill is simplified by the elimination of step 2 from the goodwill impairment test, which required an entity to determine the implied fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination • the entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit • the entity is no longer required to perform a qualitative assessment for any reporting unit with a zero or negative carrying amount The Company adopted this standard on January 1, 2020, and it did not impact its unaudited condensed consolidated financial statements. Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, effective for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. Under this update: • for investments in certain entities that calculate net asset value, investors are required to disclose the timing of liquidation of an investee's assets and the date when restrictions from redemption might lapse if the investee has communicated timing to the entity or announced timing publicly • entities should use the measurement uncertainty disclosure to communicate information about the uncertainty in measurement as of the reporting date • entities must disclose changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements, as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, or other quantitative information in lieu of weighted average if the entity determines such information would be more reasonable and rational • entities are no longer required to disclose the amounts and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements The Company adopted this standard on January 1, 2020, and it had an immaterial impact on its unaudited condensed consolidated financial statements. Consolidation In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810), Targeted Improvements to Related Party Guidance for Variable Interest Entities, effective for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. Under this update, entities must consider indirect interests held through related parties under common control on a proportional basis to determine whether a decision-making fee is a variable interest. The Company adopted this standard on January 1, 2020, and it did not impact its unaudited condensed consolidated financial statements. New Credit Loss Standard In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (ASC 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, ASU 2019-05 and ASU 2019-11. Collectively, these ASUs changed 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 are required to be presented at the net amount expected to be collected, with an allowance for expected 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. 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 • credit losses relating to available-for-sale ("AFS") fixed maturity securities generally are recorded through an allowance for expected 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 expected credit losses for AFS fixed maturity securities is 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 reflects 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 The Company adopted this standard effective January 1, 2020 using a modified-retrospective approach, as required. As a result of adoption, the Company recorded a cumulative-effect adjustment, which decreased retained earnings by $24 , net of tax. We recorded offsetting increases to the allowance for expected credit losses for mortgage loans and reinsurance recoverables and a decrease for deferred tax impacts. Refer to Note 4. "Investments" and Note 13. "Reinsurance" for additional information. Future Accounting Pronouncements Long-Duration Insurance 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, 2021 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. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12 Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes , effective for the fiscal years beginning after December 15, 2020 including interim periods within those fiscal years. Under this update: • accounting for income taxes is simplified by removing certain exceptions, including exceptions related to the incremental approach for intraperiod tax allocation, calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences • the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill and enacted changes in tax laws or rates has been clarified • the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements is not required to be allocated, although the entity may elect to do so |
Investments (Tables)
Investments (Tables) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Financing Receivable Credit Quality Indicators [Table Text Block] | Loans segregated by risk rating exposure as at March 31, 2020 , was as follows: March 31, 2020 Term Loans Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total Residential mortgages Current (less than 30 days past due) 304 671 73 48 63 3 1,162 30-89 days past due 12 100 6 — 2 — 120 Over 90 days past due — 9 2 — — — 11 Total residential mortgages 316 780 81 48 65 3 1,293 Commercial mortgages Current (less than 30 days past due) 68 — 6 — 11 403 488 30-89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage 68 — 6 — 11 403 488 March 31, 2020 Term Loans Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total Commercial mortgages LTV Less than 50% — — 6 — — 278 284 50% to 60% 34 — — — — 125 159 60% to 75% 34 — — — 11 — 45 Total commercial mortgages 68 — 6 — 11 403 488 Commercial mortgages DSCR Greater than 1.25x 68 — 6 — 11 397 482 1.00x - 1.25x — — — — — 6 6 Less than 1.00x — — — — — — — Total commercial mortgages 68 — 6 — 11 403 488 | |
Consolidated Investments | The Company's equity securities investments are carried at fair value with unrealized gains and losses included in net income (loss). The Company’s consolidated investments at March 31, 2020 and December 31, 2019 are summarized as follows: March 31, 2020 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 5,785 $ (17 ) $ 26 $ (849 ) $ 4,945 $ 4,945 Commercial mortgage-backed securities 2,848 — 16 (383 ) 2,481 2,481 Corporates 10,898 (21 ) 366 (792 ) 10,451 10,451 Hybrids 976 — 5 (90 ) 891 891 Municipals 1,270 — 63 (15 ) 1,318 1,318 Residential mortgage-backed securities 884 (6 ) 17 (25 ) 870 870 U.S. Government 40 — 3 — 43 43 Foreign Governments 135 — 7 (1 ) 141 141 Total available-for-sale securities 22,836 (44 ) 503 (2,155 ) 21,140 21,140 Equity securities 1,052 1 (138 ) 915 915 Derivative investments 380 13 (205 ) 188 188 Commercial mortgage loans 488 (1 ) — — 507 487 Residential mortgage loans 1,293 (11 ) — — 1,297 1,282 Other invested assets 1,497 — (6 ) 1,479 1,491 Total investments $ 27,546 $ (56 ) $ 517 $ (2,504 ) $ 25,526 $ 25,503 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 5,720 $ 51 $ (77 ) $ 5,694 $ 5,694 Commercial mortgage-backed securities 2,788 140 (6 ) 2,922 2,922 Corporates 11,051 618 (72 ) 11,597 11,597 Hybrids 983 48 (4 ) 1,027 1,027 Municipals 1,284 64 (5 ) 1,343 1,343 Residential mortgage-backed securities 917 40 (3 ) 954 954 U.S. Government 33 1 — 34 34 Foreign Governments 138 17 — 155 155 Total available-for-sale securities 22,914 979 (167 ) 23,726 23,726 Equity securities 1,069 19 (17 ) 1,071 1,071 Derivative investments 336 261 (10 ) 587 587 Commercial mortgage loans 422 — — 435 422 Residential mortgage loans 845 — — 848 845 Other invested assets 1,306 — (3 ) 1,288 1,303 Total investments $ 26,892 $ 1,259 $ (197 ) $ 27,955 $ 27,954 | |
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. March 31, 2020 Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and Government securities: Due in one year or less $ 84 $ 80 Due after one year through five years 915 870 Due after five years through ten years 1,942 1,872 Due after ten years 10,378 10,022 Subtotal 13,319 12,844 Other securities which provide for periodic payments: Asset-backed securities 5,785 4,945 Commercial mortgage-backed securities 2,848 2,481 Residential mortgage-backed securities 884 870 Subtotal 9,517 8,296 Total fixed maturity available-for-sale securities $ 22,836 $ 21,140 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Table Text Block] | The activity in the allowance for expected credit losses of available-for-sale securities aggregated by investment category were as follows: For the quarter ended March 31, 2020 Additions Reductions Balance at Beginning of Period For credit losses on securities for which losses were not previously recorded For initial credit losses on purchased securities accounted for as PCD financial assets (a) Additions (reductions) in allowance recorded on previously impaired securities For securities sold during the period For securities intended/required to be sold prior to recovery of amortized cost basis Writeoffs charged against the allowance Balance at End of Period Available-for-sale securities Asset-backed securities — (17 ) — — — — — (17 ) Commercial mortgage-backed securities — — — — — — — — Corporates — (22 ) — — — — 1 (21 ) Hybrids — — — — — — — — Municipals — — — — — — — — Residential mortgage-backed securities — (6 ) — — — — — (6 ) US Government — — — — — — — — Foreign Government — — — — — — — — Total available-for-sale securities $ — $ (45 ) $ — $ — $ — $ — $ 1 $ (44 ) (a) Purchased credit deteriorated financial assets ("PCD") | |
Fair Value and Gross Unrealized Losses of Available-for-Sale-Securities | The fair value and gross unrealized losses of available-for-sale securities, excluding securities in an unrealized losses position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost as of March 31, 2020, were as follows: March 31, 2020 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 $ 2,872 $ (518 ) $ 1,322 $ (325 ) $ 4,194 $ (843 ) Commercial mortgage-backed securities 2,073 (378 ) 13 (5 ) 2,086 (383 ) Corporates 4,691 (644 ) 239 (144 ) 4,930 (788 ) Hybrids 669 (79 ) 31 (11 ) 700 (90 ) Municipals 323 (12 ) 51 (3 ) 374 (15 ) Residential mortgage-backed securities 146 (13 ) 65 (6 ) 211 (19 ) Foreign Government 33 (1 ) — — 33 (1 ) Total available-for-sale securities $ 10,807 $ (1,645 ) $ 1,721 $ (494 ) $ 12,528 $ (2,139 ) Total number of available-for-sale securities in an unrealized loss position less than twelve months 1,365 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 294 Total number of available-for-sale securities in an unrealized loss position 1,659 The fair value and gross unrealized losses of available-for-sale securities, aggregated by investment category and duration of fair value below amortized cost as of December 31, 2019, were as follows: December 31, 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 $ 719 $ (12 ) $ 2,453 $ (65 ) $ 3,172 $ (77 ) Commercial mortgage-backed securities 232 (4 ) 16 (2 ) 248 (6 ) Corporates 1,030 (25 ) 804 (47 ) 1,834 (72 ) Hybrids 23 (1 ) 60 (3 ) 83 (4 ) Municipals 123 (2 ) 60 (3 ) 183 (5 ) Residential mortgage-backed securities 41 — 107 (3 ) 148 (3 ) U.S. Government 6 — — — 6 — Total available-for-sale securities $ 2,174 $ (44 ) $ 3,500 $ (123 ) $ 5,674 $ (167 ) Total number of available-for-sale securities in an unrealized loss position less than twelve months 290 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 446 Total number of available-for-sale securities in an unrealized loss position 736 | |
Reconciliation of Other-than-Temporary Impairment on Fixed Maturity | Details of OTTI that were recognized in "Net income (loss)" and included in net realized gains on securities were as follows: Three months ended March 31, 2019 Corporates $ (2 ) Total $ (2 ) 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 months ended March 31, 2019 : Three months ended March 31, 2019 Credit impairment losses in operations $ (2 ) Change-of-intent losses in operations — Amortized cost 1 Fair value 1 Non-credit losses in other comprehensive income for investments which experienced OTTI — The following table provides a reconciliation of the beginning and ending balances within AOCI of the non-credit loss portion of impairment on fixed maturity available-for-sale securities held by the Company for the three months ended March 31, 2019 : Three months ended March 31, 2019 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: March 31, 2020 December 31, 2019 Gross Carrying Value % of Total Gross Carrying Value % of Total Property Type: Hotel $ 21 4 % $ 21 5 % Industrial - General 37 8 % 37 9 % Industrial - Warehouse 20 4 % 20 4 % Multifamily 121 25 % 54 13 % Office 142 29 % 143 34 % Retail 147 30 % 147 35 % Total commercial mortgage loans, gross of valuation allowance $ 488 100 % $ 422 100 % Allowance for expected credit loss (1 ) — Total commercial mortgage loans $ 487 $ 422 U.S. Region: East North Central $ 64 13 % $ 64 15 % East South Central 53 11 % 19 5 % Middle Atlantic 77 16 % 77 18 % Mountain 51 10 % 51 12 % New England 4 1 % 4 1 % Pacific 112 23 % 113 27 % South Atlantic 55 11 % 56 13 % West North Central 13 3 % 13 3 % West South Central 59 12 % 25 6 % Total commercial mortgage loans, gross of valuation allowance $ 488 100 % $ 422 100 % Allowance for expected credit loss (1 ) — Total commercial mortgage loans $ 487 $ 422 | |
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 March 31, 2020 and December 31, 2019 : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 March 31, 2020 LTV Ratios: Less than 50% $ 278 $ 6 $ 284 58 % $ 295 58 % 50% to 60% 159 — 159 33 % 166 33 % 60% to 75% 44 — 44 9 % 46 9 % Commercial mortgage loans $ 481 $ 6 $ 487 100 % $ 507 100 % December 31, 2019 LTV Ratios: Less than 50% $ 346 $ 6 $ 352 83 % $ 363 83 % 50% to 60% 70 — 70 17 % 72 17 % Commercial mortgage loans $ 416 $ 6 $ 422 100 % $ 435 100 % | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Changes in the Company’s allowance for expected credit losses on commercial mortgage loans are recognized in “Net investment gains (losses)” in the accompanying unaudited Condensed Consolidated Statements of Operations. Residential Mortgage Loans Commercial Mortgage Loans Total Balance as at January 1, 2020 7 1 8 (Reversal of) provision for loan losses 4 — 4 Balance as at March 31, 2020 11 1 12 | |
Financing Receivable, Nonaccrual [Table Text Block] | An allowance for expected credit loss is not measured on accrued interest income for commercial mortgage loans as the Company has a process to write-off interest on loans that enter in to non-accrual status (over 90 days past due). March 31, 2020 Residential Mortgage Loans 11 Commercial Mortgage Loans — Total loans that are 90 days or more past due and still accruing 11 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 December 31, 2019 Assets: Derivative investments: Call options $ 188 $ 587 Other Invested Assets: Other embedded derivatives 17 21 Funds withheld: Call options 1 3 $ 206 $ 611 Liabilities: Contractholder funds: FIA embedded derivative $ 3,303 $ 3,235 Other liabilities: Futures contracts 2 — Reinsurance related embedded derivative (18 ) 33 Preferred shares reimbursement feature embedded derivative 37 16 $ 3,324 $ 3,284 |
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: March 31, 2020 Counterparty Credit Rating (Fitch/Moody's/S&P) (a) Notional Fair Value Collateral Net Credit Risk Merrill Lynch A+/*/A+ $ 2,583 $ 7 $ — $ 7 Deutsche Bank BBB/A3/BBB+ 35 2 1 1 Morgan Stanley */A1/A+ 2,162 8 9 — Barclay's Bank A+/A1/A 4,521 115 110 5 Canadian Imperial Bank of Commerce AA/Aa2/A+ 2,727 31 25 6 Wells Fargo A+/A2/A- 2,558 21 26 — Goldman Sachs A/A3/BBB+ 1,112 5 3 2 Total $ 15,698 $ 189 $ 174 $ 21 December 31, 2019 Counterparty Credit Rating Notional Fair Value Collateral Net Credit Risk Merrill Lynch A+/*/A+ $ 2,718 $ 88 $ 43 $ 45 Deutsche Bank BBB/A3/BBB+ 157 7 7 — Morgan Stanley */A1/A+ 2,053 66 65 1 Barclay's Bank A+/A2/A 4,290 211 193 18 Canadian Imperial Bank of Commerce */Aa2/A+ 2,691 106 74 32 Wells Fargo A+/A2/A- 2,165 81 80 1 Goldman Sachs A/A3/BBB+ 1,065 31 27 4 Total $ 15,139 $ 590 $ 489 $ 101 (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 March 31, 2020 March 31, 2019 Net investment gains (losses): Call options $ (360 ) $ 154 Futures contracts — 8 Foreign currency forward 2 2 Other derivatives and embedded derivatives (4 ) 3 Reinsurance related embedded derivatives (161 ) (3 ) Total net investment gains (losses) $ (523 ) $ 164 Benefits and other changes in policy reserves: FIA embedded derivatives $ 68 $ 244 Acquisition and operating expenses, net of deferrals: Preferred shares reimbursement feature embedded derivative $ 21 $ (2 ) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 776 $ — $ — $ 776 $ 776 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,183 762 4,945 4,945 Commercial mortgage-backed securities — 2,456 25 2,481 2,481 Corporates — 9,252 1,199 10,451 10,451 Hybrids 267 621 3 891 891 Municipals — 1,279 39 1,318 1,318 Residential mortgage-backed securities — 363 507 870 870 U.S. Government 37 6 — 43 43 Foreign Governments — 125 16 141 141 Equity securities 365 549 1 915 915 Derivative investments — 188 — 188 188 Other invested assets — — 40 40 40 Funds withheld for reinsurance receivables, at fair value 289 1,761 — 2,050 2,050 Total financial assets at fair value $ 1,734 $ 20,783 $ 2,592 $ 25,109 $ 25,109 Liabilities Fair value of future policy benefits — — 1,904 1,904 1,904 Derivatives: FIA embedded derivatives, included in contractholder funds — — 3,303 3,303 3,303 Reinsurance related embedded derivative, included in other liabilities — (18 ) — (18 ) (18 ) Derivative instruments - futures contracts 2 — — 2 2 Preferred shares reimbursement feature embedded derivative — — 37 37 37 Total financial liabilities at fair value $ 2 $ (18 ) $ 5,244 $ 5,228 $ 5,228 December 31, 2019 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 969 $ — $ — $ 969 $ 969 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,866 828 5,694 5,694 Commercial mortgage-backed securities — 2,895 27 2,922 2,922 Corporates — 10,305 1,292 11,597 11,597 Hybrids 299 718 10 1,027 1,027 Municipals — 1,301 42 1,343 1,343 Residential mortgage-backed securities — 408 546 954 954 U.S. Government 28 6 — 34 34 Foreign Governments — 137 18 155 155 Equity securities 387 614 1 1,002 1,002 Derivative investments — 587 — 587 587 Other invested assets — — 46 46 46 Funds withheld for reinsurance receivables, at fair value 314 1,856 1 2,171 2,171 Total financial assets at fair value $ 1,997 $ 23,693 $ 2,811 $ 28,501 $ 28,501 Liabilities Fair value of future policy benefits — — 1,953 1,953 1,953 Derivatives: FIA embedded derivatives, included in contractholder funds — — 3,235 3,235 3,235 Reinsurance related embedded derivative, included in other liabilities — 33 — 33 33 Preferred shares reimbursement feature embedded derivative — — 16 16 16 Total financial liabilities at fair value $ — $ 33 $ 5,204 $ 5,237 $ 5,237 The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. March 31, 2020 Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 65 $ — $ 65 $ 65 Commercial mortgage loans — — 507 507 487 Residential mortgage loans — — 1,297 1,297 1,282 Policy loans, included in other invested assets — — 19 19 29 Affiliated other invested assets — — 26 26 28 Company-owned life insurance 264 264 264 Total $ — $ 65 $ 2,113 $ 2,178 $ 2,155 Liabilities Investment contracts, included in contractholder funds — — 19,915 19,915 22,923 Debt — 537 — 537 543 Total $ — $ 537 $ 19,915 $ 20,452 $ 23,466 December 31, 2019 Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 62 $ — $ 62 $ 62 Commercial mortgage loans — — 435 435 422 Residential mortgage loans — — 848 848 845 Policy loans, included in other invested assets — — 14 14 28 Company-owned life insurance — — 129 129 129 Affiliated other invested assets — — 28 28 28 Funds withheld for reinsurance receivables, at fair value — — 1 1 1 Total $ — $ 62 $ 1,455 $ 1,517 $ 1,515 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 19,285 $ 19,285 $ 22,449 Debt — 578 — 578 542 Total $ — $ 578 $ 19,285 $ 19,863 $ 22,991 |
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 March 31, 2020 and December 31, 2019 , are as follows: Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) March 31, 2020 March 31, 2020 Assets Asset-backed securities $ 624 Broker-quoted Offered quotes 91.53% - 112.18% Asset-backed securities 138 Third-Party Valuation Offered quotes 0.00% - 105.02% Commercial mortgage-backed securities 25 Broker-quoted Offered quotes 84.49% - 119.30% Corporates 293 Broker-quoted Offered quotes 82.38% - 102.13% Corporates 906 Third-Party Valuation Offered quotes 59.84% - 116.89% Hybrids 3 Third-Party Valuation Offered quotes 100.80% - 100.80% Municipals 39 Third-Party Valuation Offered quotes 118.01% - 118.01% Residential mortgage-backed securities 500 Broker-quoted Offered quotes 0.00% - 103.20% Residential mortgage-backed securities 7 Third-Party Valuation Offered quotes 95.61% - 95.61% Foreign governments 16 Third-Party Valuation Offered quotes 102.02% - 102.85% Equity securities (Salus preferred equity) 1 Income-Approach Yield 2.33% Other Invested Assets: Available-for-sale embedded derivative (AnchorPath) 17 Black Scholes model Market value of AnchorPath fund 100.00% Credit Linked Note 23 Broker-quoted Offered quotes 100.00% Total financial assets at fair value $ 2,592 Liabilities Future policy benefits 1,904 Discounted cash flow Market value of option 0.00% - 5.37% Mortality multiplier 80.00% - 120.00% Surrender rates 0.50% - 55.00% Partial withdrawals 0.00% - 4.00% Non-performance spread 0.00% - 0.17% Option cost 0.00% - 5.00% Risk margin to reflect uncertainty 0.31% - 0.96% Morbidity risk margin 0.00% - 2.00% Derivatives: FIA embedded derivatives included in contractholder funds 3,303 Discounted cash flow Market value of option 0.00% - 26.37% SWAP rates 0.52% - 0.72% Mortality multiplier 80.00% - 80.00% Surrender rates 0.50% - 75.00% Partial withdrawals 2.00% - 3.50% Non-performance spread 0.25% - 0.25% Option cost 0.09% - 16.61% Preferred shares reimbursement feature embedded derivative 37 Black Derman Toy model Credit Spread 7.51% Yield Volatility 20% Total financial liabilities at fair value $ 5,244 Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2019 December 31, 2019 Assets Asset-backed securities $ 801 Broker-quoted Offered quotes 98.65% - 119.35% Asset-backed securities 27 Third-Party Valuation Offered quotes 0.00% - 99.43% Commercial mortgage-backed securities 27 Broker-quoted Offered quotes 100.15% - 127.60% Corporates 346 Broker-quoted Offered quotes 83.51% - 106.73% Corporates 946 Third-Party Valuation Offered quotes 98.58% - 119.44% Hybrids 10 Third-Party Valuation Offered quotes 104.72% - 104.72% Municipals 42 Third-Party Valuation Offered quotes 127.68% - 127.68% Residential mortgage-backed securities 546 Broker-quoted Offered quotes 0.00% - 106.50% Foreign governments 18 Third-Party Valuation Offered quotes 110.12% - 118.09% Equity securities (Salus preferred equity) 1 Income-Approach Yield 2.47% Other Invested Assets: Available-for-sale embedded derivative (AnchorPath) 21 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 1 Broker-quoted Offered quotes 100.00% Total financial assets at fair value $ 2,811 Liabilities Future policy benefits 1,953 Discounted cash flow Market value of option 0.00% - 11.20% (2.50%) Mortality multiplier 80.00% - 120.00% (95.46%) Surrender rates 0.00% - 55.00% (21.18%) Partial withdrawals 0.00% - 4.00% (2.28%) Non-performance spread 0.00% - 0.08% (0.03%) Option cost 0.00% - 5.02% (1.28%) Risk margin to reflect uncertainty 0.23% - 0.96% (0.34%) Morbidity risk margin 0.00% - 2.00% (0.07%) Derivatives: FIA embedded derivatives included in contractholder funds 3,235 Discounted cash flow Market value of option 0.00% - 32.54% SWAP rates 1.73% - 1.90% Mortality multiplier 80.00% - 80.00% Surrender rates 0.50% - 75.00% Partial withdrawals 2.00% - 3.50% Non-performance spread 0.25% - 0.25% Option cost 0.18% - 16.61% Preferred shares reimbursement feature embedded derivative 16 Black Derman Toy model Credit Spread 3.81% Yield Volatility 20% Total financial liabilities at fair value $ 5,204 |
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 months ended March 31, 2020 and 2019 , 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 March 31, 2020 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 828 $ (2 ) $ (34 ) $ 147 $ — $ (158 ) $ (19 ) $ 762 $ (34 ) Commercial mortgage-backed securities 27 — (2 ) — — — — 25 (2 ) Corporates 1,292 — (73 ) 1 — (21 ) — 1,199 (73 ) Hybrids 10 — (1 ) — — (6 ) — 3 (1 ) Municipals 42 — (3 ) — — — — 39 (3 ) Residential mortgage-backed securities 546 — (17 ) 5 — (21 ) (6 ) 507 (17 ) Foreign Governments 18 — (2 ) — — — — 16 (2 ) Equity securities 1 — — — — — — 1 — Other invested assets: Available-for-sale embedded derivative 21 (4 ) — — — — — 17 — Credit linked note 25 — (2 ) — — — — 23 — Funds withheld for reinsurance receivables, at fair value 1 — — — — — (1 ) — — Total assets at Level 3 fair value $ 2,811 $ (6 ) $ (134 ) $ 153 $ — $ (206 ) $ (26 ) $ 2,592 (132 ) Liabilities Future policy benefits $ 1,953 $ (100 ) $ (3 ) $ — $ — $ 54 $ — $ 1,904 $ — FIA embedded derivatives, included in contractholder funds 3,235 279 — 140 (47 ) (304 ) — 3,303 — Preferred shares reimbursement feature embedded derivative 16 21 37 — Total liabilities at Level 3 fair value $ 5,204 $ 200 $ (3 ) $ 140 $ (47 ) $ (250 ) $ — $ 5,244 $ — (a) The net transfers out of Level 3 during the three months ended March 31, 2020 were exclusively to Level 2. Three months ended March 31, 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 $ — $ 5 $ 114 $ — $ (31 ) $ (24 ) $ 508 Commercial mortgage-backed securities 67 — 2 — — (1 ) — 68 Corporates 1,231 (1 ) 24 — (21 ) (35 ) 11 1,209 Hybrids 10 — — — — — — 10 Municipals 37 — 1 — — — — 38 Residential mortgage-backed securities 614 — 16 7 — (18 ) — 619 Foreign Governments 16 — — — — — — 16 Equity securities 4 — 1 — — — 15 20 Other invested assets: Available-for-sale embedded derivative 14 2 — — — — — 2 Credit linked note 25 — — — — — — 25 Funds withheld for reinsurance receivables, at fair value 4 — — 5 — — (2 ) 7 Total assets at Level 3 fair value $ 2,466 $ 1 $ 49 $ 126 $ (21 ) $ (85 ) $ — $ 2,536 Liabilities Future policy benefits (FSRC) $ 725 $ 29 $ — $ — $ — $ 43 $ — $ 797 FIA embedded derivatives, included in contractholder funds 2,476 59 — 127 (33 ) 91 — 2,720 Preferred shares reimbursements feature embedded derivative 29 (2 ) — — — — — 27 Total liabilities at Level 3 fair value $ 3,230 $ 86 $ — $ 127 $ (33 ) $ 134 $ — $ 3,544 (a) The net transfers out of Level 3 during the three months ended March 31, 2019 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 months ended March 31, 2020 and 2019 , 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 March 31, 2020 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 828 $ (2 ) $ (34 ) $ 147 $ — $ (158 ) $ (19 ) $ 762 $ (34 ) Commercial mortgage-backed securities 27 — (2 ) — — — — 25 (2 ) Corporates 1,292 — (73 ) 1 — (21 ) — 1,199 (73 ) Hybrids 10 — (1 ) — — (6 ) — 3 (1 ) Municipals 42 — (3 ) — — — — 39 (3 ) Residential mortgage-backed securities 546 — (17 ) 5 — (21 ) (6 ) 507 (17 ) Foreign Governments 18 — (2 ) — — — — 16 (2 ) Equity securities 1 — — — — — — 1 — Other invested assets: Available-for-sale embedded derivative 21 (4 ) — — — — — 17 — Credit linked note 25 — (2 ) — — — — 23 — Funds withheld for reinsurance receivables, at fair value 1 — — — — — (1 ) — — Total assets at Level 3 fair value $ 2,811 $ (6 ) $ (134 ) $ 153 $ — $ (206 ) $ (26 ) $ 2,592 (132 ) Liabilities Future policy benefits $ 1,953 $ (100 ) $ (3 ) $ — $ — $ 54 $ — $ 1,904 $ — FIA embedded derivatives, included in contractholder funds 3,235 279 — 140 (47 ) (304 ) — 3,303 — Preferred shares reimbursement feature embedded derivative 16 21 37 — Total liabilities at Level 3 fair value $ 5,204 $ 200 $ (3 ) $ 140 $ (47 ) $ (250 ) $ — $ 5,244 $ — (a) The net transfers out of Level 3 during the three months ended March 31, 2020 were exclusively to Level 2. Three months ended March 31, 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 $ — $ 5 $ 114 $ — $ (31 ) $ (24 ) $ 508 Commercial mortgage-backed securities 67 — 2 — — (1 ) — 68 Corporates 1,231 (1 ) 24 — (21 ) (35 ) 11 1,209 Hybrids 10 — — — — — — 10 Municipals 37 — 1 — — — — 38 Residential mortgage-backed securities 614 — 16 7 — (18 ) — 619 Foreign Governments 16 — — — — — — 16 Equity securities 4 — 1 — — — 15 20 Other invested assets: Available-for-sale embedded derivative 14 2 — — — — — 2 Credit linked note 25 — — — — — — 25 Funds withheld for reinsurance receivables, at fair value 4 — — 5 — — (2 ) 7 Total assets at Level 3 fair value $ 2,466 $ 1 $ 49 $ 126 $ (21 ) $ (85 ) $ — $ 2,536 Liabilities Future policy benefits (FSRC) $ 725 $ 29 $ — $ — $ — $ 43 $ — $ 797 FIA embedded derivatives, included in contractholder funds 2,476 59 — 127 (33 ) 91 — 2,720 Preferred shares reimbursements feature embedded derivative 29 (2 ) — — — — — 27 Total liabilities at Level 3 fair value $ 3,230 $ 86 $ — $ 127 $ (33 ) $ 134 $ — $ 3,544 (a) The net transfers out of Level 3 during the three months ended March 31, 2019 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 2019 Form 10-K. Carrying Value After Measurement March 31, 2020 December 31, 2019 Equity securities $ — $ 69 Limited partnership investment, included in other invested assets 1,065 1,010 |
Gross Transfers Into and Out of Certain Fair Value Levels by Asset Class | or 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. Equity method investments are reported on a lag of up to three months for investee information not received sufficiently timely. For the quarter ended March 31, 2020, the Company received updated NAVs on two investments reported on a lag that showed a decline in valuation of $20 which will be reported in the next quarter period end. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 $ 593 $ 630 $ 232 $ 1,455 Deferrals — 106 27 133 Amortization 19 25 12 56 Interest 4 5 1 10 Unlocking (5 ) (1 ) 1 (5 ) Adjustment for net unrealized investment (gains) losses 262 79 39 380 Balance at March 31, 2020 $ 873 $ 844 $ 312 $ 2,029 VOBA DAC DSI Total Balance at December 31, 2018 $ 866 $ 344 $ 149 $ 1,359 Deferrals — 91 35 126 Amortization (31 ) (3 ) (2 ) (36 ) Interest 4 2 1 7 Unlocking — — — — Adjustment for net unrealized investment (gains) losses (35 ) — — (35 ) Balance at March 31, 2019 $ 804 $ 434 $ 183 $ 1,421 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 March 31, 2020 and 2019 , the VOBA balances included cumulative adjustments for net unrealized investment (gains) losses of $155 and $40 , respectively, the DAC balances included cumulative adjustments for net unrealized investment (gains) losses of $9 and $5 , respectively, and the DSI balance included net unrealized investment (gains) losses of $10 and $2 , 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 2020 63 2021 86 2022 83 2023 74 2024 66 Thereafter 347 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The interest expense for the three months ended March 31, 2020 and 2019 was $8 and $8 , respectively. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Dividends Declared | The Company declared the following cash dividend to its common shareholders during the three months ended March 31, 2020 . Date Declared Date Paid Date Shareholders of record Shareholders of record (in thousands) Cash Dividend declared (per share) Total cash paid February 26, 2020 March 30, 2020 March 16, 2020 222,119 $0.01 $2 On May 6, 2020, the Company's Board of Directors will declare a quarterly cash dividend of $0.01 per share. The dividend will be paid on June 8, 2020 to shareholders of record as of May 26, 2020. The Company declared the following cash dividend to its common shareholders during the three months ended March 31, 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 The Company declared the following dividends to its preferred shareholders during the three months ended March 31, 2020 : 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 31, 2020 April 1, 2020 March 15, 2020 321 Paid in kind $— 6 Series B Preferred Shares March 31, 2020 April 1, 2020 March 15, 2020 117 Paid in kind $— 2 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Unfunded Commitments | summary of unfunded commitments by invested asset class are included below: March 31, 2020 Asset Type Other invested assets $ 1,252 Fixed maturity securities, available-for-sale 111 Other assets $ 71 Residential mortgage loans 18 Total $ 1,452 As of March 31, 2020 , 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) | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019 were as follows: Three months ended March 31, 2020 March 31, 2019 Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Direct 50 130 57 372 Assumed — (115 ) — 20 Ceded (40 ) (56 ) (41 ) (53 ) Net 10 (41 ) 16 339 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 March 31, 2019 Net income (loss) $ (338 ) $ 171 Less Preferred stock dividend 8 8 Net income (loss) available to common shares (346 ) 163 Weighted-average common shares outstanding - basic 213,155 219,646 Dilutive effect of unvested restricted stock — 36 Weighted-average shares outstanding - diluted 213,155 219,682 Net income (loss) per common share: Basic $ (1.62 ) $ 0.74 Diluted $ (1.62 ) $ 0.74 |
Basis of Presentation and Nat_2
Basis of Presentation and Nature of Business - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Goodwill | $ 467 | $ 467 |
Significant Accounting Polici_3
Significant Accounting Policies and Practices (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Condensed Balance Sheet Statements, Captions [Line Items] | |
Document Period End Date | Mar. 31, 2020 |
Significant Risks and Uncerta_2
Significant Risks and Uncertainties - Narrative (Details) $ in Millions | Sep. 30, 2019USD ($) | Mar. 31, 2020USD ($)issuer | Dec. 31, 2019USD ($) |
Concentration Risk [Line Items] | |||
Exposure of FGL's invested assets | 10.00% | ||
Number of issuers in investment | issuer | 86 | ||
Wilton Reassurance Company | |||
Concentration Risk [Line Items] | |||
Net amount recoverable | $ 1,507 | ||
Kubera Reassurance Company [Member] | |||
Concentration Risk [Line Items] | |||
Net amount recoverable | $ 835 | ||
All Financial Instruments | |||
Concentration Risk [Line Items] | |||
FGL's investment securities in the banking industry | $ 2,216 | $ 2,414 | |
Exposure of FGL's invested assets | 9.00% | 9.00% | |
Single Issuer | |||
Concentration Risk [Line Items] | |||
FGL's investment securities in the banking industry | $ 123 | $ 132 | |
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 | $ 2,270 | $ 2,325 | |
Minimum | |||
Concentration Risk [Line Items] | |||
Exposure of FGL's invested assets | 10.00% | ||
Top Ten Holdings [Member] | |||
Concentration Risk [Line Items] | |||
Exposure of FGL's invested assets | 38.00% | ||
Number of issuers in investment | issuer | 101 |
Investments - Available-for-Sa
Investments - Available-for-Sale Securities Table (Details) $ in Millions | Mar. 31, 2020USD ($)Security | Dec. 31, 2019USD ($)Security |
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 22,836 | $ 22,914 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | (44) | 0 |
Available-for sale securities | ||
Gross Unrealized Gains | 503 | 979 |
Gross Unrealized Losses | (2,155) | (167) |
Fair Value | 21,140 | 23,726 |
Carrying Value | 21,140 | 23,726 |
Equity Securities, Amortized Cost Basis | 1,052 | 1,069 |
Financing Receivable, Allowance for Credit Loss | (56) | |
Investments, Cost or Amortized Cost | 27,546 | 26,892 |
Investments, Accumulated Gross Unrealized Gain, before Tax | 517 | 1,259 |
Investments, Accumulated Gross Unrealized Loss, before Tax | 2,504 | 197 |
Investments, Fair Value Disclosure | 25,526 | 27,955 |
Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 1 | 19 |
Equity Securities, Accumulated Gross Unrealized Loss, before tax | (138) | (17) |
Equity Securities, Fair Value | 915 | 1,071 |
Equity Securities, Carrying Value | 915 | 1,071 |
Derivative investments | ||
Amortized Cost | 380 | 336 |
Gross Unrealized Gains | 13 | 261 |
Gross Unrealized Losses | (205) | (10) |
Fair Value | 188 | 587 |
Carrying Value | 188 | 587 |
Commercial mortgage loans | ||
Loans and Leases Receivable, Net Amount | 1,769 | 1,267 |
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 1,721 | 3,500 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (494) | (123) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 12,528 | 5,674 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (2,139) | $ (167) |
Total number of available-for-sale securities in an unrealized loss position less than twelve months | Security | 1,365 | 290 |
Total number of available-for-sale securities in an unrealized loss position twelve months or longer | Security | 294 | 446 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | Security | 1,659 | 736 |
Investments | $ 25,503 | $ 27,954 |
Asset-backed securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 5,785 | 5,720 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | (17) | 0 |
Available-for sale securities | ||
Gross Unrealized Gains | 26 | 51 |
Gross Unrealized Losses | (849) | (77) |
Fair Value | 4,945 | 5,694 |
Carrying Value | 4,945 | 5,694 |
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 1,322 | 2,453 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (325) | (65) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,194 | 3,172 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (843) | (77) |
Commercial mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 2,848 | 2,788 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for sale securities | ||
Gross Unrealized Gains | 16 | 140 |
Gross Unrealized Losses | (383) | (6) |
Fair Value | 2,481 | 2,922 |
Carrying Value | 2,481 | 2,922 |
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 13 | 16 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (5) | (2) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,086 | 248 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (383) | (6) |
Corporates | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 10,898 | 11,051 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | (21) | 0 |
Available-for sale securities | ||
Gross Unrealized Gains | 366 | 618 |
Gross Unrealized Losses | (792) | (72) |
Fair Value | 10,451 | 11,597 |
Carrying Value | 10,451 | 11,597 |
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 239 | 804 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (144) | (47) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,930 | 1,834 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (788) | (72) |
Equity securities | ||
Available-for sale securities | ||
Financing Receivable, Allowance for Credit Loss | ||
Derivative Instruments | ||
Available-for sale securities | ||
Financing Receivable, Allowance for Credit Loss | ||
Hybrids | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 976 | 983 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for sale securities | ||
Gross Unrealized Gains | 5 | 48 |
Gross Unrealized Losses | (90) | (4) |
Fair Value | 891 | 1,027 |
Carrying Value | 891 | 1,027 |
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 31 | 60 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (11) | (3) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 700 | 83 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (90) | (4) |
Municipals | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 1,270 | 1,284 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for sale securities | ||
Gross Unrealized Gains | 63 | 64 |
Gross Unrealized Losses | (15) | (5) |
Fair Value | 1,318 | 1,343 |
Carrying Value | 1,318 | 1,343 |
Residential mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 884 | 917 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | (6) | 0 |
Available-for sale securities | ||
Gross Unrealized Gains | 17 | 40 |
Gross Unrealized Losses | (25) | (3) |
Fair Value | 870 | 954 |
Carrying Value | 870 | 954 |
U.S. Government | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 40 | 33 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for sale securities | ||
Gross Unrealized Gains | 3 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 43 | 34 |
Carrying Value | 43 | 34 |
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | |
Foreign Governments | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 135 | 138 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for sale securities | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 7 | 17 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 141 | 155 |
Carrying Value | 141 | 155 |
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 33 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1) | |
Other invested assets | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 1,497 | 1,306 |
Available-for sale securities | ||
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (6) | (3) |
Fair Value | 1,479 | 1,288 |
Carrying Value | 1,491 | 1,303 |
Financing Receivable, Allowance for Credit Loss | ||
Municipals | ||
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 51 | 60 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3) | (3) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 374 | 183 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (15) | (5) |
Residential mortgage-backed securities | ||
Total investments | ||
Available-for-sale securities, Fair Value, 12 months or longer | 65 | 107 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (6) | (3) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 211 | 148 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (19) | (3) |
Commercial Portfolio Segment [Member] | ||
Available-for sale securities | ||
Financing Receivable, Allowance for Credit Loss | (1) | (1) |
Commercial mortgage loans | ||
Investment, Commercial Mortgage Loans, Amortized Cost | 488 | 422 |
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 | 507 | 435 |
Loans and Leases Receivable, Net Amount | 487 | 422 |
Residential Portfolio Segment [Member] | ||
Available-for sale securities | ||
Financing Receivable, Allowance for Credit Loss | (11) | (7) |
Commercial mortgage loans | ||
Loans and Leases Receivable, Net Amount | 1,282 | 845 |
Investment, Residential Mortgage Loans, Amortized Cost | 1,293 | 845 |
Investments, Residential Mortgage Loans, Accumulated Gross Unrealized Gain before Tax | 0 | 0 |
Residential mortgage loans | $ 1,297 | $ 848 |
Investments - Credit Impairment
Investments - Credit Impairment Loss Type (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Schedule of Investments [Line Items] | |
Other Than Temporary Impairment Credit Losses Recognized In Earnings Additions Including Credit Impairments | $ (2) |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Change in Status | 0 |
Other than temporary impairment, non-credit losses recognized in OCI | 0 |
Asset Backed Securities and Corporate Securities [Member] | |
Schedule of Investments [Line Items] | |
Amortized cost | 1 |
Fair value | $ 1 |
Investments - Amortized Cost a
Investments - Amortized Cost and Fair Value of Fixed Maturity Available-for-Sale Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Document Period End Date | Mar. 31, 2020 | |
Equity Securities, Amortized Cost Basis | $ 1,052 | $ 1,069 |
Due in one year or less, Amortized Cost | 84 | |
Due after one year through five years, Amortized Cost | 915 | |
Due after five years through ten years, Amortized Cost | 1,942 | |
Due after ten years, Amortized Cost | 10,378 | |
Subtotal, Amortized Cost | 13,319 | |
Other securities which provide for periodic payments, Amortized Cost | 9,517 | |
Total fixed maturity available-for-sale securities, Amortized Cost | 22,836 | |
Due in one year or less, Fair Value | 80 | |
Due after one year through five years, Fair Value | 870 | |
Due after five years through ten years, Fair Value | 1,872 | |
Due after ten years, Fair Value | 10,022 | |
Subtotal, Fair Value | 12,844 | |
Other securities which provide for periodic payments, Fair Value | 8,296 | |
Total fixed maturity available-for-sale securities, Fair Value | 21,140 | |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 5,785 | |
Other securities which provide for periodic payments, Fair Value | 4,945 | |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 2,848 | |
Other securities which provide for periodic payments, Fair Value | 2,481 | |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 884 | |
Other securities which provide for periodic payments, Fair Value | $ 870 |
Investments - Fair Value and G
Investments - Fair Value and Gross Unrealized Losses of Available-for-Sale Securities (Details) | 3 Months Ended | |
Mar. 31, 2020USD ($)Security | Dec. 31, 2019USD ($)Security | |
Debt Securities, Available-for-sale [Line Items] | ||
Document Period End Date | Mar. 31, 2020 | |
Available-for-sale securities, Fair Value, Less than 12 months | $ 10,807,000,000 | $ 2,174,000,000 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (1,645,000,000) | (44,000,000) |
Available-for-sale securities, Fair Value, 12 months or longer | 1,721,000,000 | 3,500,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (494,000,000) | (123,000,000) |
Available-for-sale securities, Fair Value, Total | 12,528,000,000 | 5,674,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | $ (2,139,000,000) | $ (167,000,000) |
Total number of available-for-sale securities in an unrealized loss position less than twelve months | Security | 1,365 | 290 |
Total number of available-for-sale securities in an unrealized loss position twelve months or longer | Security | 294 | 446 |
Total number of available-for-sale securities in an unrealized loss position | Security | 1,659 | 736 |
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 | |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | $ 2,872,000,000 | 719,000,000 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (518,000,000) | (12,000,000) |
Available-for-sale securities, Fair Value, 12 months or longer | 1,322,000,000 | 2,453,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (325,000,000) | (65,000,000) |
Available-for-sale securities, Fair Value, Total | 4,194,000,000 | 3,172,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (843,000,000) | (77,000,000) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 2,073,000,000 | 232,000,000 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (378,000,000) | (4,000,000) |
Available-for-sale securities, Fair Value, 12 months or longer | 13,000,000 | 16,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (5,000,000) | (2,000,000) |
Available-for-sale securities, Fair Value, Total | 2,086,000,000 | 248,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (383,000,000) | (6,000,000) |
Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 4,691,000,000 | 1,030,000,000 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (644,000,000) | (25,000,000) |
Available-for-sale securities, Fair Value, 12 months or longer | 239,000,000 | 804,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (144,000,000) | (47,000,000) |
Available-for-sale securities, Fair Value, Total | 4,930,000,000 | 1,834,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (788,000,000) | (72,000,000) |
Hybrids | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 669,000,000 | 23,000,000 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (79,000,000) | (1,000,000) |
Available-for-sale securities, Fair Value, 12 months or longer | 31,000,000 | 60,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (11,000,000) | (3,000,000) |
Available-for-sale securities, Fair Value, Total | 700,000,000 | 83,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (90,000,000) | (4,000,000) |
Municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 323,000,000 | 123,000,000 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (12,000,000) | (2,000,000) |
Available-for-sale securities, Fair Value, 12 months or longer | 51,000,000 | 60,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (3,000,000) | (3,000,000) |
Available-for-sale securities, Fair Value, Total | 374,000,000 | 183,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (15,000,000) | (5,000,000) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 146,000,000 | 41,000,000 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (13,000,000) | 0 |
Available-for-sale securities, Fair Value, 12 months or longer | 65,000,000 | 107,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (6,000,000) | (3,000,000) |
Available-for-sale securities, Fair Value, Total | 211,000,000 | 148,000,000 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (19,000,000) | (3,000,000) |
U.S. Government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 6,000,000 | |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | 0 | |
Available-for-sale securities, Fair Value, 12 months or longer | 0 | |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | 0 | |
Available-for-sale securities, Fair Value, Total | 6,000,000 | |
Available-for-sale Securities, Gross Unrealized Losses, Total | $ 0 | |
Foreign Governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 33,000,000 | |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (1,000,000) | |
Available-for-sale securities, Fair Value, 12 months or longer | 0 | |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | 0 | |
Available-for-sale securities, Fair Value, Total | 33,000,000 | |
Available-for-sale Securities, Gross Unrealized Losses, Total | $ (1,000,000) |
Investments - Reconciliation o
Investments - Reconciliation of Other than Temporary Impairment on Fixed Maturity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Document Period End Date | Mar. 31, 2020 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance at the beginning of the period | $ 0 | |
Increases attributable to credit losses on securities: | ||
OTTI was previously recognized | 0 | |
OTTI was not previously recognized | 0 | |
Balance at the end of the period | $ 0 |
Investments - Other-than-Tempo
Investments - Other-than-Temporary Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of Investments [Line Items] | ||
Document Period End Date | Mar. 31, 2020 | |
Total other-than-temporary impairments | $ (2) | |
Other than Temporary Impairment Losses, Investments | $ 0 | 2 |
Corporates | ||
Schedule of Investments [Line Items] | ||
Total other-than-temporary impairments | $ (2) |
Investments - Schedule of Comm
Investments - Schedule of Commercial Mortgage Loan Investment (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Schedule of Investments [Line Items] | ||
Document Period End Date | Mar. 31, 2020 | |
Impaired loans, number | loan | 0 | 0 |
Commercial mortgage loans, % of total | 100.00% | 100.00% |
Loans and Leases Receivable, Gross | $ 488 | $ 422 |
Loans Receivable, Gross, Residential, Mortgage | 422 | |
Loans and Leases Receivable, Net Amount | $ 1,769 | $ 1,267 |
Hotel | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 4.00% | 5.00% |
Loans and Leases Receivable, Gross | $ 21 | $ 21 |
Industrial - General | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 8.00% | 9.00% |
Loans and Leases Receivable, Gross | $ 37 | $ 37 |
Industrial - Warehouse | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 4.00% | 4.00% |
Loans and Leases Receivable, Gross | $ 20 | $ 20 |
Multifamily | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 25.00% | 13.00% |
Loans and Leases Receivable, Gross | $ 121 | $ 54 |
Office | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 29.00% | 34.00% |
Loans and Leases Receivable, Gross | $ 142 | $ 143 |
Retail | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 30.00% | 35.00% |
Loans and Leases Receivable, Gross | $ 147 | $ 147 |
LTV Less Than 50 Percent | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 58.00% | 83.00% |
Loans Receivable, Gross, Residential, Mortgage | $ 284 | $ 352 |
LTV 50 to 60 Percent | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 33.00% | 17.00% |
Loans Receivable, Gross, Residential, Mortgage | $ 159 | $ 70 |
LTV 60 to 75 Percent | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 9.00% | |
Loans Receivable, Gross, Residential, Mortgage | $ 44 | |
East North Central | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 13.00% | 15.00% |
Loans and Leases Receivable, Gross | $ 64 | $ 64 |
East South Central | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 11.00% | 5.00% |
Loans and Leases Receivable, Gross | $ 53 | $ 19 |
Middle Atlantic | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 16.00% | 18.00% |
Loans and Leases Receivable, Gross | $ 77 | $ 77 |
Mountain | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 10.00% | 12.00% |
Loans and Leases Receivable, Gross | $ 51 | $ 51 |
New England | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 1.00% | 1.00% |
Loans and Leases Receivable, Gross | $ 4 | $ 4 |
Pacific | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 23.00% | 27.00% |
Loans and Leases Receivable, Gross | $ 112 | $ 113 |
South Atlantic | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 11.00% | 13.00% |
Loans and Leases Receivable, Gross | $ 55 | $ 56 |
West North Central | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 3.00% | 3.00% |
Loans and Leases Receivable, Gross | $ 13 | $ 13 |
West South Central | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 12.00% | 6.00% |
Loans and Leases Receivable, Gross | $ 59 | $ 25 |
Greater than 1.25 | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | 481 | 416 |
Greater than 1.25 | LTV Less Than 50 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | 278 | 346 |
Greater than 1.25 | LTV 50 to 60 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | 159 | 70 |
Greater than 1.25 | LTV 60 to 75 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | 44 | |
Greater than 1.00 but less than 1.25 | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | 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 |
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 |
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 | |
Fair Value | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 100.00% | 100.00% |
Loans Receivable, Gross, Residential, Mortgage | $ 507 | $ 435 |
Fair Value | LTV Less Than 50 Percent | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 58.00% | 83.00% |
Loans Receivable, Gross, Residential, Mortgage | $ 295 | $ 363 |
Fair Value | LTV 50 to 60 Percent | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 33.00% | 17.00% |
Loans Receivable, Gross, Residential, Mortgage | $ 166 | $ 72 |
Fair Value | LTV 60 to 75 Percent | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 9.00% | |
Loans Receivable, Gross, Residential, Mortgage | $ 46 | |
Commercial Portfolio Segment [Member] | ||
Schedule of Investments [Line Items] | ||
Commercial mortgage loans, % of total | 100.00% | 100.00% |
Loans and Leases Receivable, Gross | $ 488 | $ 422 |
Loans Receivable, Gross, Residential, Mortgage | 487 | |
Allowance for loan loss | (1) | 0 |
Loans and Leases Receivable, Net Amount | $ 487 | $ 422 |
Investments - Net Investment I
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of Investments [Line Items] | ||
Document Period End Date | Mar. 31, 2020 | |
Gross investment income | $ 350 | $ 317 |
Investment expense | (33) | (28) |
Net investment income | 317 | 289 |
Fixed maturity securities, available-for-sale | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 258 | 265 |
Equity securities | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 14 | 21 |
Commercial mortgage loans | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 21 | 7 |
Invested cash and short-term investments | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 4 | 3 |
Other investments | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 6 | 5 |
Funds Withheld [Member] | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 22 | 8 |
Limited Partnership [Member] | ||
Schedule of Investments [Line Items] | ||
Gross investment income | $ 25 | $ 8 |
Investments - Net Investment G
Investments - Net Investment Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Gain (Loss) on Securities [Line Items] | ||
Document Period End Date | Mar. 31, 2020 | |
Net realized losses on fixed maturity available-for-sale securities | $ 21 | $ (3) |
Realized gains on equity securities | (135) | 78 |
Change in fair value of other derivatives and embedded derivatives | (4) | 3 |
Realized losses on other invested assets | (7) | 1 |
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | (48) | 0 |
Realized gains (losses) on certain derivative instruments | 38 | (26) |
Unrealized gains (losses) on certain derivative instruments | (396) | 190 |
Derivative, Gain (Loss) on Derivative, Net | (161) | (3) |
Change In Fair Value Derivatives, Including Other Derivatives | (523) | 164 |
Realized gains (losses) on hedging derivatives and reinsurance-related embedded derivatives | (523) | 164 |
Net investment gains (losses) | $ (692) | $ 240 |
Investments - Narrative (Detai
Investments - Narrative (Details) | 3 Months Ended | |||
Mar. 31, 2020USD ($)loan | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)loan | Jun. 30, 2015USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||
Commercial Mortgage Receivable, Percentage of Total Investments | 2.00% | |||
Non-income producing investment fair value | $ 0 | |||
FHLB collateral pledged | 1,472,000,000 | $ 1,472,000,000 | ||
Other than temporary impairment credit losses recognized in earnings, including credit impairments | $ 2,000,000 | |||
Other than temporary impairment credit losses recognized in earnings, reductions, change in status | 0 | |||
Amortized cost | 22,836,000,000 | 22,914,000,000 | ||
Fair Value | 21,140,000,000 | $ 23,726,000,000 | ||
Other than temporary impairment, non-credit losses recognized in OCI | 0 | |||
Realized gains (losses) on other invested assets | $ (7,000,000) | 1,000,000 | ||
Impaired loans, number | loan | 0 | 0 | ||
Unrealized Gain (Loss) on Investments | $ (2,115,000,000) | 779,000,000 | ||
Residential Mortgage Receivable, Percentage of Total Investments | 5.00% | 3.00% | ||
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 | |||
Unrealized losses related to non-credit portion of OTTI included in AOCI | 0 | |||
Residential mortgage-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost | $ 884,000,000 | 917,000,000 | ||
Fair Value | 870,000,000 | 954,000,000 | ||
Available-for-sale Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Assets held by insurance regulators | 16,337,000,000 | $ 17,591,000,000 | ||
Proceeds from available-for-sale investments, sold, matured or repaid: | $ 845,000,000 | 962,000,000 | ||
Commercial mortgage loans | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Loan to value, threshold | 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 | 474,000,000 | ||
Gain on sale of investments | 16,000,000 | 5,000,000 | ||
Loss on sale of investments | (3,000,000) | $ (10,000,000) | ||
Commitment to Invest | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Unfunded investment commitment | 1,452,000,000 | |||
Crescent Capital BDC Inc. | Commitment to Invest | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Unfunded investment commitment | $ 83,000,000 | |||
Golub Capital Partners 10, L.P. [Member] | Commitment to Invest | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Unfunded investment commitment | 1,066,000,000 | |||
Other Investments | $ 1,252,000,000 |
Investments Impact of Adoption
Investments Impact of Adoption of New Accounting Pronouncement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net investment gains (losses) | $ (692) | $ 240 |
Gain (Loss) on Sale of Equity Investments | (135) | 78 |
Unrealized Gain (Loss) on Investments | $ (2,115) | $ 779 |
Investments Schedule of Residen
Investments Schedule of Residential Mortgage Loan Investment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Document Period End Date | Mar. 31, 2020 | |
Loans Receivable, Gross, Residential, Mortgage | $ 422 | |
Residential Mortgage Receivable, Percentage of Total | 100.00% | 100.00% |
FLORIDA | ||
Loans Receivable, Gross, Residential, Mortgage | $ 236 | $ 167 |
Residential Mortgage Receivable, Percentage of Total | 19.00% | 20.00% |
ILLINOIS | ||
Loans Receivable, Gross, Residential, Mortgage | $ 206 | $ 141 |
Residential Mortgage Receivable, Percentage of Total | 16.00% | 17.00% |
NEW JERSEY | ||
Loans Receivable, Gross, Residential, Mortgage | $ 122 | $ 76 |
Residential Mortgage Receivable, Percentage of Total | 10.00% | |
All Other States [Member] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 704 | $ 447 |
Residential Mortgage Receivable, Percentage of Total | 56.00% | 54.00% |
Total Mortgage Loans [Member] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 1,268 | $ 831 |
Residential Portfolio Segment [Member] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 1,293 | $ 845 |
Residential Mortgage Receivable, Percentage of Total | 100.00% | 100.00% |
Loans and Leases Receivable, Allowance | $ 11 | $ 0 |
Financing Receivable, Allowance For Credit Loss, Percent Of Total | 0.00% | 0.00% |
Loans Receivable, Net, Residential, Mortgage | $ 1,282 | $ 845 |
Performing [Member] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 1,282 | $ 843 |
Residential Mortgage Receivable, Percentage of Total | 100.00% | 100.00% |
Non-performing [Member] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 11 | $ 2 |
Residential Mortgage Receivable, Percentage of Total | 0.00% | 0.00% |
Maximum | All Other States [Member] | ||
Residential Mortgage Receivable, Percentage of Total | 9.00% |
Investments - Available for Sal
Investments - Available for Sale Allowance for Credit Loss (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | $ 0 |
For credit losses on securities for which losses were not previously recorded | (45) |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 |
Additions (reductions) in allowance recorded on previously impaired securities | 0 |
For securities sold during the period | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 |
Balance at End of Period | (44) |
Asset-backed securities | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | 0 |
For credit losses on securities for which losses were not previously recorded | (17) |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 |
Additions (reductions) in allowance recorded on previously impaired securities | 0 |
For securities sold during the period | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 |
Balance at End of Period | (17) |
Commercial mortgage-backed securities | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | 0 |
For credit losses on securities for which losses were not previously recorded | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 |
Additions (reductions) in allowance recorded on previously impaired securities | 0 |
For securities sold during the period | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 |
Balance at End of Period | 0 |
Corporates | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | 0 |
For credit losses on securities for which losses were not previously recorded | (22) |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 |
Additions (reductions) in allowance recorded on previously impaired securities | 0 |
For securities sold during the period | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 |
Balance at End of Period | (21) |
Hybrids | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | 0 |
For credit losses on securities for which losses were not previously recorded | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 |
Additions (reductions) in allowance recorded on previously impaired securities | 0 |
For securities sold during the period | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 |
Balance at End of Period | 0 |
Municipals | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | 0 |
For credit losses on securities for which losses were not previously recorded | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 |
Additions (reductions) in allowance recorded on previously impaired securities | 0 |
For securities sold during the period | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 |
Balance at End of Period | 0 |
Residential mortgage-backed securities | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | 0 |
For credit losses on securities for which losses were not previously recorded | (6) |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 |
Additions (reductions) in allowance recorded on previously impaired securities | 0 |
For securities sold during the period | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 |
Balance at End of Period | (6) |
U.S. Government | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | 0 |
For credit losses on securities for which losses were not previously recorded | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 |
Additions (reductions) in allowance recorded on previously impaired securities | 0 |
For securities sold during the period | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 |
Balance at End of Period | 0 |
Foreign Governments | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | 0 |
For credit losses on securities for which losses were not previously recorded | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets | 0 |
Additions (reductions) in allowance recorded on previously impaired securities | 0 |
For securities sold during the period | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 |
Balance at End of Period | $ 0 |
Investments - Credit Quality In
Investments - Credit Quality Indicators (Details) $ in Millions | Mar. 31, 2020USD ($) |
Residential Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | $ 316 |
2019 | 780 |
2018 | 81 |
2017 | 48 |
2016 | 65 |
Prior | 3 |
Total | 1,293 |
Commercial Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 68 |
2019 | 0 |
2018 | 6 |
2017 | 0 |
2016 | 11 |
Prior | 403 |
Total | 488 |
Current (less than 30 days past due) | Residential Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 304 |
2019 | 671 |
2018 | 73 |
2017 | 48 |
2016 | 63 |
Prior | 3 |
Total | 1,162 |
Current (less than 30 days past due) | Commercial Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 68 |
2019 | 0 |
2018 | 6 |
2017 | 0 |
2016 | 11 |
Prior | 403 |
Total | 488 |
30-89 days past due | Residential Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 12 |
2019 | 100 |
2018 | 6 |
2017 | 0 |
2016 | 2 |
Prior | 0 |
Total | 120 |
30-89 days past due | Commercial Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | 0 |
Over 90 days past due | Residential Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 9 |
2018 | 2 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | 11 |
Over 90 days past due | Commercial Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | 0 |
Less than 50% | Commercial Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 6 |
2017 | 0 |
2016 | 0 |
Prior | 278 |
Total | 284 |
50% to 60% | Commercial Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 34 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 125 |
Total | 159 |
60% to 75% | Commercial Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 34 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 11 |
Prior | 0 |
Total | 45 |
Greater than 1.25x | Commercial Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 68 |
2019 | 0 |
2018 | 6 |
2017 | 0 |
2016 | 11 |
Prior | 397 |
Total | 482 |
1.00x - 1.25x | Commercial Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 6 |
Total | 6 |
Less than 1.00x | Commercial Portfolio Segment [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | $ 0 |
Investments - Financing Receiva
Investments - Financing Receivable Allowance for Credit Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
(Reversal of) provision for loan losses | $ (48) | $ 0 |
Ending balance | 56 | |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 7 | |
(Reversal of) provision for loan losses | 4 | |
Ending balance | 11 | |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 1 | |
(Reversal of) provision for loan losses | 0 | |
Ending balance | 1 | |
Residential And Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 8 | |
(Reversal of) provision for loan losses | 4 | |
Ending balance | $ 12 |
Investments - Loans Past Due (D
Investments - Loans Past Due (Details) $ in Millions | Mar. 31, 2020USD ($) |
Financing Receivable, Past Due [Line Items] | |
Total loans that are 90 days or more past due and still accruing | $ 11 |
Residential Portfolio Segment [Member] | |
Financing Receivable, Past Due [Line Items] | |
Total loans that are 90 days or more past due and still accruing | 11 |
Commercial Portfolio Segment [Member] | |
Financing Receivable, Past Due [Line Items] | |
Total loans that are 90 days or more past due and still accruing | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Total asset derivatives | $ 206 | $ 611 |
Total liability derivatives | 3,324 | 3,284 |
Call options | Derivative Instruments | ||
Derivative [Line Items] | ||
Total asset derivatives | 188 | 587 |
Other derivatives and embedded derivatives | Other invested assets | ||
Derivative [Line Items] | ||
Total asset derivatives | 17 | 21 |
FIA embedded derivative | Contractholder funds | ||
Derivative [Line Items] | ||
Total liability derivatives | 3,303 | 3,235 |
Preferred shares reimbursement feature embedded derivative | Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Total liability derivatives | $ 37 | $ 16 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Change in Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Change in fair value of reinsurance related embedded derivatives | $ (161) | $ (3) |
Change In Fair Value Of Derivatives | (523) | 164 |
Call options | Net investment (losses) gains | ||
Derivative [Line Items] | ||
Change in fair value of reinsurance related embedded derivatives | (360) | 154 |
Futures contracts | Net investment (losses) gains | ||
Derivative [Line Items] | ||
Change in fair value of reinsurance related embedded derivatives | 0 | 8 |
Foreign Exchange Forward [Member] | Net investment (losses) gains | ||
Derivative [Line Items] | ||
Change in fair value of reinsurance related embedded derivatives | 2 | 2 |
Other derivatives and embedded derivatives | Net investment (losses) gains | ||
Derivative [Line Items] | ||
Change in fair value of reinsurance related embedded derivatives | (4) | 3 |
Reinsurance related embedded derivative | Net investment (losses) gains | ||
Derivative [Line Items] | ||
Change in fair value of reinsurance related embedded derivatives | (161) | (3) |
Preferred shares reimbursement feature embedded derivative | Net investment (losses) gains | ||
Derivative [Line Items] | ||
Change in fair value of reinsurance related embedded derivatives | 21 | (2) |
FIA embedded derivative | ||
Derivative [Line Items] | ||
Change in fair value of reinsurance related embedded derivatives | $ 68 | $ 244 |
Derivative Financial Instrume_5
Derivative Financial Instruments - FGL's Exposure to Credit Loss on Call Options Held (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | |||
Fair Value | $ 206 | $ 611 | |
Merrill Lynch | |||
Derivatives, Fair Value [Line Items] | |||
Credit Rating (Fitch/Moody's/S&P) (a) | A+/*/A+ | ||
Deutsche Bank | |||
Derivatives, Fair Value [Line Items] | |||
Credit Rating (Fitch/Moody's/S&P) (a) | BBB/A3/BBB+ | ||
Notional Amount | 35 | 157 | |
Fair Value | 2 | 7 | |
Collateral | 1 | 7 | |
Net Credit Risk | 1 | 0 | |
Morgan Stanley | |||
Derivatives, Fair Value [Line Items] | |||
Credit Rating (Fitch/Moody's/S&P) (a) | */A1/A+ | ||
Notional Amount | 2,162 | 2,053 | |
Fair Value | 8 | 66 | |
Collateral | 9 | 65 | |
Net Credit Risk | 0 | 1 | |
Barclay's Bank | |||
Derivatives, Fair Value [Line Items] | |||
Credit Rating (Fitch/Moody's/S&P) (a) | A+/A1/A | ||
Notional Amount | 4,521 | 4,290 | |
Fair Value | 115 | 211 | |
Collateral | 110 | 193 | |
Net Credit Risk | 5 | 18 | |
Canadian Imperial Bank of Commerce [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Credit Rating (Fitch/Moody's/S&P) (a) | AA/Aa2/A+ | ||
Notional Amount | 2,727 | 2,691 | |
Fair Value | 31 | 106 | |
Collateral | 25 | 74 | |
Net Credit Risk | 6 | 32 | |
Wells Fargo [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Credit Rating (Fitch/Moody's/S&P) (a) | A+/A2/A- | ||
Notional Amount | 2,558 | 2,165 | |
Fair Value | 21 | 81 | |
Collateral | 26 | 80 | |
Net Credit Risk | 0 | 1 | |
GOLDMAN SACH MTF [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Credit Rating (Fitch/Moody's/S&P) (a) | A/A3/BBB+ | ||
Notional Amount | 1,112 | 1,065 | |
Fair Value | 5 | 31 | |
Collateral | 3 | 27 | |
Net Credit Risk | 2 | 4 | |
Derivatives For Trading And Investment | Not Designated as Hedging Instrument | Call options | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 15,698 | 15,139 | |
Fair Value | 189 | 590 | |
Collateral | 174 | 489 | |
Net Credit Risk | 21 | 101 | |
Derivatives For Trading And Investment | Not Designated as Hedging Instrument | Call options | Merrill Lynch | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 2,583 | 2,718 | |
Fair Value | 7 | 88 | |
Collateral | 0 | 43 | |
Net Credit Risk | $ 7 | $ 45 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Narrative (Details) $ in Millions | Nov. 30, 2017shares | Mar. 31, 2020USD ($)contract | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($) | Jun. 16, 2014USD ($) |
Derivative [Line Items] | ||||||
Fair Value | $ 206 | $ 611 | ||||
Fair value of assets | $ 2,536 | $ 2,466 | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (161) | (3) | ||||
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 | 379,000,000 | 879,000,000 | ||||
Collateral held | $ 4 | $ 5 | ||||
Other invested assets | Other derivatives and embedded derivatives | ||||||
Derivative [Line Items] | ||||||
Fair Value | 17 | 21 | ||||
Derivative investments | Call options | ||||||
Derivative [Line Items] | ||||||
Fair Value | 188 | 587 | ||||
Derivatives For Trading And Investment | Not Designated as Hedging Instrument | Call options | ||||||
Derivative [Line Items] | ||||||
Fair Value | 189 | 590 | ||||
Collateral posted | 174 | 489 | ||||
Maximum amount of loss due to credit risk | 21 | 101 | ||||
Cash and Cash Equivalents | Not Designated as Hedging Instrument | Call options | ||||||
Derivative [Line Items] | ||||||
Collateral posted | 174 | 446 | ||||
Other Investments Asset | Other invested assets | ||||||
Derivative [Line Items] | ||||||
Fixed maturities securities, available-for-sale, at fair value | 29 | 29 | $ 35 | |||
Merrill Lynch [Member] | Derivatives For Trading And Investment | Not Designated as Hedging Instrument | Call options | ||||||
Derivative [Line Items] | ||||||
Fair Value | 7 | 88 | ||||
Collateral posted | 0 | 43 | ||||
Maximum amount of loss due to credit risk | $ 7 | $ 45 | ||||
Preferred Stock | ||||||
Derivative [Line Items] | ||||||
Preferred Stock, Call Features, Minimum Term | 5 years | 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 | $ 2 | 2 | ||||
Net investment (losses) gains | Other derivatives and embedded derivatives | ||||||
Derivative [Line Items] | ||||||
Derivative, Gain (Loss) on Derivative, Net | (4) | 3 | ||||
Net investment (losses) gains | Call options | ||||||
Derivative [Line Items] | ||||||
Derivative, Gain (Loss) on Derivative, Net | (360) | 154 | ||||
Net investment (losses) gains | Futures contracts | ||||||
Derivative [Line Items] | ||||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 8 |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 21,140 | $ 23,726 |
Derivative investments, at fair value | 188 | 587 |
Total financial assets at fair value | 2,592 | 2,811 |
Funds withheld for reinsurance receivables, at fair value | 2,050 | 2,172 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 776 | 969 |
Equity securities | 365 | 387 |
Derivative investments, at fair value | 0 | 0 |
Derivative Liability | 2 | |
Other invested assets | 0 | |
Total financial assets at fair value | 1,734 | 1,997 |
Total financial liabilities at fair value | 2 | 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 |
Bank Owned Life Insurance | 0 | |
Funds withheld for reinsurance receivables, at fair value | 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 | 549 | 614 |
Derivative investments, at fair value | 188 | 587 |
Derivative Liability | 0 | |
Other invested assets | 0 | |
Total financial assets at fair value | 20,783 | 23,693 |
Total financial liabilities at fair value | (18) | 33 |
FHLB common stock | 65 | 62 |
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 |
Bank Owned Life Insurance | 0 | |
Funds withheld for reinsurance receivables, at fair value | 0 | |
Total assets carried on balance sheet at amounts other than fair value | 65 | 62 |
Investment contracts, included in contractholder funds | 0 | 0 |
Debt | 537 | 578 |
Total liabilities carried on balance sheet at amounts other than fair value | 537 | 578 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Equity securities | 1 | 1 |
Derivative investments, at fair value | 0 | 0 |
Derivative Liability | 0 | |
Other invested assets | 46 | |
Total financial assets at fair value | 2,592 | 2,811 |
Total financial liabilities at fair value | 5,244 | 5,204 |
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 507 | 435 |
Residential mortgage loans | 1,297 | 848 |
Policy loans, included in other invested assets | 19 | 14 |
Affiliated other invested assets | 26 | 28 |
Bank Owned Life Insurance | 264 | 129 |
Funds withheld for reinsurance receivables, at fair value | 1 | |
Total assets carried on balance sheet at amounts other than fair value | 2,113 | 1,455 |
Investment contracts, included in contractholder funds | 19,915 | 19,285 |
Debt | 0 | 0 |
Total liabilities carried on balance sheet at amounts other than fair value | 19,915 | 19,285 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 776 | 969 |
Equity securities | 915 | 1,002 |
Derivative investments, at fair value | 188 | 587 |
Derivative Liability | 2 | |
Other invested assets | 46 | |
Total financial assets at fair value | 25,109 | 28,501 |
Total financial liabilities at fair value | 5,228 | 5,237 |
FHLB common stock | 65 | 62 |
Commercial mortgage loans | 507 | 435 |
Residential mortgage loans | 1,297 | 848 |
Policy loans, included in other invested assets | 19 | 14 |
Affiliated other invested assets | 26 | 28 |
Bank Owned Life Insurance | 264 | 129 |
Funds withheld for reinsurance receivables, at fair value | 1 | |
Total assets carried on balance sheet at amounts other than fair value | 2,178 | 1,517 |
Investment contracts, included in contractholder funds | 19,915 | 19,285 |
Debt | 537 | 578 |
Total liabilities carried on balance sheet at amounts other than fair value | 20,452 | 19,863 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 776 | 969 |
Equity securities | 915 | 1,002 |
Derivative investments, at fair value | 188 | 587 |
Derivative Liability | 2 | |
Other invested assets | 46 | |
Total financial assets at fair value | 25,109 | 28,501 |
Total financial liabilities at fair value | 5,228 | 5,237 |
FHLB common stock | 65 | 62 |
Commercial mortgage loans | 487 | 422 |
Residential mortgage loans | 1,282 | 845 |
Policy loans, included in other invested assets | 29 | 28 |
Affiliated other invested assets | 28 | 28 |
Bank Owned Life Insurance | 264 | 129 |
Funds withheld for reinsurance receivables, at fair value | 1 | |
Total assets carried on balance sheet at amounts other than fair value | 2,155 | 1,515 |
Investment contracts, included in contractholder funds | 22,923 | 22,449 |
Debt | 543 | 542 |
Total liabilities carried on balance sheet at amounts other than fair value | 23,466 | 22,991 |
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 | 3,303 | 3,235 |
Fixed indexed annuities | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 3,303 | 3,235 |
Fixed indexed annuities | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 3,303 | 3,235 |
Reinsurance related embedded derivative | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Reinsurance related embedded derivative | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | (18) | 33 |
Reinsurance related embedded derivative | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Reinsurance related embedded derivative | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | (18) | 33 |
Reinsurance related embedded derivative | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | (18) | 33 |
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 | 37 | 16 |
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 | 37 | 16 |
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 | 37 | 16 |
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 | 1,904 | 1,953 |
Future Policy Benefits | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,904 | 1,953 |
Future Policy Benefits | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,904 | 1,953 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 4,945 | 5,694 |
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 | 4,183 | 4,866 |
Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 762 | 828 |
Asset-backed securities | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 4,945 | 5,694 |
Asset-backed securities | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 4,945 | 5,694 |
Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,481 | 2,922 |
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 | 2,456 | 2,895 |
Commercial mortgage-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 25 | 27 |
Commercial mortgage-backed securities | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,481 | 2,922 |
Commercial mortgage-backed securities | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,481 | 2,922 |
Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 10,451 | 11,597 |
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 | 9,252 | 10,305 |
Corporates | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,199 | 1,292 |
Corporates | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 10,451 | 11,597 |
Corporates | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 10,451 | 11,597 |
Hybrids | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 891 | 1,027 |
Hybrids | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 267 | 299 |
Hybrids | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 621 | 718 |
Hybrids | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 3 | 10 |
Hybrids | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 891 | 1,027 |
Hybrids | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 891 | 1,027 |
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 | 1,279 | 1,301 |
Municipals | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 39 | 42 |
Municipals | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,318 | 1,343 |
Municipals | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,318 | 1,343 |
Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 870 | 954 |
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 | 363 | 408 |
Residential mortgage-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 507 | 546 |
Residential mortgage-backed securities | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 870 | 954 |
Residential mortgage-backed securities | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 870 | 954 |
U.S. Government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 43 | 34 |
U.S. Government | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 37 | 28 |
U.S. Government | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6 | 6 |
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 | 43 | 34 |
U.S. Government | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 43 | 34 |
Foreign Governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 141 | 155 |
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 | 125 | 137 |
Foreign Governments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 16 | 18 |
Foreign Governments | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 141 | 155 |
Foreign Governments | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 141 | 155 |
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 | 40 | |
Other invested assets | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 40 | |
Other invested assets | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 40 | |
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 | 289 | 314 |
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 | 1,761 | 1,856 |
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 | 1 |
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 | 2,050 | 2,171 |
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 | $ 2,050 | $ 2,171 |
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 |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 2,592,000,000 | $ 2,811,000,000 |
Liabilities, fair value | 5,244,000,000 | 5,204,000,000 |
Future Policy Benefit | 1,953,000,000 | |
Market Approach | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 624,000,000 | 801,000,000 |
Market Approach | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 25,000,000 | 27,000,000 |
Market Approach | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 293,000,000 | 346,000,000 |
Market Approach | Municipals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 39,000,000 | 42,000,000 |
Market Approach | Residential mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 500,000,000 | |
Residential Mortage Backed securities | 546,000,000 | |
Market Approach | Foreign Governments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 16,000,000 | 18,000,000 |
Market Approach | Other invested assets | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan Recovery Value | 1,000,000 | |
Market Approach | Credit Linked Note | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 23,000,000 | |
Loan Recovery Value | 25,000,000 | |
Third Parties | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 138,000,000 | 27,000,000 |
Income Approach Valuation Technique | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 946,000,000 | |
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 | 17,000,000 | |
Matrix Pricing Valuation | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 906,000,000 | |
Matrix Pricing Valuation | Hybrids | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 3,000,000 | |
Matrix Pricing Valuation | Residential mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 7,000,000 | |
Fixed indexed annuities | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | 3,303,000,000 | 3,235,000,000 |
Preferred shares reimbursement feature embedded derivative | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 37,000,000 | $ 16,000,000 |
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 | 91.53% | 98.65% |
Minimum | Market Approach | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 82.38% | 83.51% |
Minimum | Market Approach | Hybrids | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 100.80% | 104.72% |
Minimum | Market Approach | Municipals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 118.01% | 127.68% |
Minimum | Market Approach | Residential mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 0.00% | 0.00% |
Minimum | Market Approach | Foreign Governments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 102.02% | 110.12% |
Minimum | Income Approach Valuation Technique | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 0.00% | |
Minimum | Income Approach Valuation Technique | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 0.00% | 0.00% |
Minimum | Income Approach Valuation Technique | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 59.84% | 98.58% |
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 | Option Cost | 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, 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 | 0.52% | 0.23% |
Fair value inputs, mortality multiplier | 80.00% | 0.00% |
Fair value inputs, surrender rates | 0.50% | 0.50% |
Fair value inputs, non performance spread | 0.25% | 1.73% |
Minimum | Fixed indexed annuities | Partial Withdrawls | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, surrender rates | 2.00% | 2.00% |
Minimum | Fixed indexed annuities | Option Cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, non performance spread | 0.09% | 80.00% |
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 | 112.18% | 119.35% |
Maximum | Market Approach | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 102.13% | 106.73% |
Maximum | Market Approach | Hybrids | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 100.80% | 104.72% |
Maximum | Market Approach | Municipals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 118.01% | 127.68% |
Maximum | Market Approach | Residential mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 103.20% | 106.50% |
Maximum | Market Approach | Foreign Governments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 102.85% | 118.09% |
Maximum | Income Approach Valuation Technique | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 0.00% | |
Maximum | Income Approach Valuation Technique | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 0.00% | 0.00% |
Maximum | Income Approach Valuation Technique | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 116.89% | 119.44% |
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 | 0.17% | 55.00% |
Maximum | Third Party Valuation Technique | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 105.02% | 99.43% |
Maximum | Option Cost | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, market value of option | 5.02% | |
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 | 5.37% | |
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 | 120.00% | |
Maximum | Fixed indexed annuities | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, market value of option | 26.37% | 32.54% |
Fair value inputs, swap rates | 0.72% | 0.96% |
Fair value inputs, mortality multiplier | 80.00% | 2.00% |
Fair value inputs, surrender rates | 75.00% | 75.00% |
Fair value inputs, non performance spread | 0.25% | 1.90% |
Maximum | Fixed indexed annuities | Partial Withdrawls | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, surrender rates | 3.50% | 3.50% |
Maximum | Fixed indexed annuities | Option Cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, non performance spread | 16.61% | 80.00% |
Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit Spread | $ 0.0751 | $ 0.0381 |
Yield Volatility | 0.00% | 20.00% |
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 | 97.88% | 102.02% |
Weighted Average | Market Approach | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 95.47% | 99.56% |
Weighted Average | Market Approach | Hybrids | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 100.80% | 104.72% |
Weighted Average | Market Approach | Municipals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 118.01% | 127.68% |
Weighted Average | Market Approach | Residential mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 103.20% | 106.28% |
Weighted Average | Market Approach | Foreign Governments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 102.28% | 112.61% |
Weighted Average | Market Approach | Other invested assets | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 100.00% | 0.00% |
Fair Value Input Recovery Rate | 2.47% | |
Weighted Average | Income Approach Valuation Technique | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 0.00% | |
Weighted Average | Income Approach Valuation Technique | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 0.00% | 0.00% |
Weighted Average | Income Approach Valuation Technique | Corporates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 99.21% | 105.06% |
Weighted Average | Income Approach Valuation Technique | Equity securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Input Recovery Rate | 2.33% | |
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 | 0.07% | 21.18% |
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 | 0.00% | |
Weighted Average | Third Party Valuation Technique | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 71.27% | 35.96% |
Weighted Average | Third Party Valuation Technique | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, quoted prices | 118.31% | 126.82% |
Weighted Average | Option Cost | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, market value of option | 1.28% | |
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 | 1.13% | |
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 | 95.82% | |
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 | 1.12% | 3.64% |
Fair value inputs, swap rates | 0.62% | 0.34% |
Fair value inputs, mortality multiplier | 80.00% | 0.07% |
Fair value inputs, surrender rates | 5.66% | 5.64% |
Fair value inputs, non performance spread | 0.25% | 1.81% |
Weighted Average | Fixed indexed annuities | Partial Withdrawls | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, surrender rates | 2.53% | 2.53% |
Weighted Average | Fixed indexed annuities | Option Cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, non performance spread | 2.14% | 80.00% |
Insurance Subsidiary | Market Approach | Equity securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 1,000,000 | |
Insurance Subsidiary | Income Approach Valuation Technique | Equity securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 1,000,000 | |
Insurance Subsidiary | Income Approach Valuation Technique | Other invested assets | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 21,000,000 | |
Insurance Subsidiary | Minimum | Market Approach | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs, Other Loan Recoveries | 84.49% | 100.15% |
Insurance Subsidiary | Maximum | Market Approach | Commercial mortgage-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs, Other Loan Recoveries | 119.30% | 127.60% |
FSRC | Income Approach Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 1,904,000,000 |
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 | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | $ 0 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | $ 2,466 | |||
Assets, Total Gains (Losses) Included in Earnings | 1 | |||
Assets, Total Gains (Losses) Included in AOCI | 49 | |||
Assets, Purchases | 126 | |||
Assets, Sales | 21 | |||
Assets, Settlements | 85 | |||
Assets, Net transfer In (Out) of Level 3 | 0 | |||
Balance at End of Period | 2,536 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 5,204 | 3,230 | ||
Available-for-sale Securities | 21,140 | $ 23,726 | ||
Liabilities, Total Gains (Losses) Included in Earnings | 200 | 86 | ||
Liabilities, Total Gains (Losses) Included in AOCI | (3) | 0 | ||
Liabilities, Purchases | 140 | 127 | ||
Liabilities, Sales | 47 | 33 | ||
Liabilities, Settlements | (250) | 134 | ||
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | ||
Balance at End of Period | 5,244 | 3,544 | ||
FIA embedded derivatives, included in contractholder funds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 3,235 | 2,476 | ||
Liabilities, Total Gains (Losses) Included in Earnings | 279 | 59 | ||
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 | ||
Liabilities, Purchases | 140 | 127 | ||
Liabilities, Sales | 47 | 33 | ||
Liabilities, Settlements | 304 | (91) | ||
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | ||
Balance at End of Period | 3,303 | 2,720 | ||
Future Policy Benefits | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 1,953 | 725 | ||
Liabilities, Total Gains (Losses) Included in Earnings | (100) | 29 | ||
Liabilities, Total Gains (Losses) Included in AOCI | (3) | 0 | ||
Liabilities, Purchases | 0 | 0 | ||
Liabilities, Sales | 0 | 0 | ||
Liabilities, Settlements | 54 | 43 | ||
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | ||
Balance at End of Period | 1,904 | 797 | ||
Asset-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | (34) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 828 | 444 | ||
Assets, Total Gains (Losses) Included in Earnings | (2) | 0 | ||
Assets, Total Gains (Losses) Included in AOCI | (34) | 5 | ||
Assets, Purchases | 147 | 114 | ||
Assets, Sales | 0 | 0 | ||
Assets, Settlements | (158) | (31) | ||
Assets, Net transfer In (Out) of Level 3 | (19) | (24) | ||
Balance at End of Period | 762 | 508 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 4,945 | 5,694 | ||
Commercial mortgage-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | (2) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 27 | 67 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | ||
Assets, Total Gains (Losses) Included in AOCI | (2) | 2 | ||
Assets, Purchases | 0 | 0 | ||
Assets, Sales | 0 | 0 | ||
Assets, Settlements | 0 | 1 | ||
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | ||
Balance at End of Period | 25 | 68 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 2,481 | 2,922 | ||
Corporates | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | (73) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 1,292 | 1,231 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | (1) | ||
Assets, Total Gains (Losses) Included in AOCI | (73) | 24 | ||
Assets, Purchases | 1 | 0 | ||
Assets, Sales | 0 | (21) | ||
Assets, Settlements | (21) | (35) | ||
Assets, Net transfer In (Out) of Level 3 | 0 | 11 | ||
Balance at End of Period | 1,199 | 1,209 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 10,451 | 11,597 | ||
Hybrids | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | (1) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 10 | 10 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | ||
Assets, Total Gains (Losses) Included in AOCI | (1) | 0 | ||
Assets, Purchases | 0 | 0 | ||
Assets, Sales | 0 | 0 | ||
Assets, Settlements | (6) | 0 | ||
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | ||
Balance at End of Period | 3 | 10 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 891 | 1,027 | ||
Municipals | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | (3) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 42 | 37 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | ||
Assets, Total Gains (Losses) Included in AOCI | (3) | 1 | ||
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 | 39 | 38 | ||
Residential mortgage-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | (17) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 546 | 614 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | ||
Assets, Total Gains (Losses) Included in AOCI | (17) | 16 | ||
Assets, Purchases | 5 | 7 | ||
Assets, Sales | 0 | 0 | ||
Assets, Settlements | 21 | 18 | ||
Assets, Net transfer In (Out) of Level 3 | (6) | 0 | ||
Balance at End of Period | 507 | 619 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 870 | 954 | ||
Foreign Governments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | (2) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 18 | 16 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | ||
Assets, Total Gains (Losses) Included in AOCI | (2) | 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 | 16 | 16 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 141 | 155 | ||
Equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 1 | 4 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | ||
Assets, Total Gains (Losses) Included in AOCI | 0 | 1 | ||
Assets, Purchases | 0 | 0 | ||
Assets, Sales | 0 | 0 | ||
Assets, Settlements | 0 | 0 | ||
Assets, Net transfer In (Out) of Level 3 | 0 | 15 | ||
Balance at End of Period | 1 | 20 | ||
Available-for-sale embedded derivative | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 21 | 14 | ||
Assets, Total Gains (Losses) Included in Earnings | (4) | 2 | ||
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 | 17 | 2 | ||
Funds withheld for reinsurance receivables, at fair value | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 1 | 4 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | ||
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | ||
Assets, Purchases | 0 | 5 | ||
Assets, Sales | 0 | 0 | ||
Assets, Settlements | 0 | 0 | ||
Assets, Net transfer In (Out) of Level 3 | (1) | (2) | ||
Balance at End of Period | 0 | 7 | ||
Total assets at level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | (132) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 2,811 | |||
Assets, Total Gains (Losses) Included in Earnings | (6) | |||
Assets, Total Gains (Losses) Included in AOCI | (134) | |||
Assets, Purchases | 153 | |||
Assets, Sales | 0 | |||
Assets, Settlements | 206 | |||
Assets, Net transfer In (Out) of Level 3 | (26) | |||
Balance at End of Period | 2,592 | |||
Affiliated Entity | Bank Loan Obligations [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | |||
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 | (2) | 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 | 23 | 25 | ||
Fair Value | Asset-backed securities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 4,945 | 5,694 | ||
Fair Value | Commercial mortgage-backed securities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 2,481 | 2,922 | ||
Fair Value | Corporates | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 10,451 | 11,597 | ||
Fair Value | Hybrids | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 891 | 1,027 | ||
Fair Value | Municipals | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 1,318 | 1,343 | ||
Fair Value | Residential mortgage-backed securities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 870 | 954 | ||
Fair Value | Foreign Governments | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 141 | 155 | ||
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 | 2,050 | 2,171 | ||
Fair Value | Other invested assets | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 40 | |||
Fair Value | Fixed indexed annuities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 3,303 | 3,235 | ||
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 | 37 | 16 | ||
Fair Value | Preferred shares reimbursement feature embedded derivative | Preferred shares reimbursement feature embedded derivative | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Unrealized Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Available-for-sale Securities | 37 | 27 | $ 16 | $ 29 |
Liabilities, Total Gains (Losses) Included in Earnings | 21 | (2) | ||
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 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - NAV (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments, Fair Value Disclosure | $ 25,526 | $ 27,955 |
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 | 1,297 | 848 |
Fair Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments, Residential Mortgage Loans, Fair Value Disclosure | 1,297 | 848 |
Carrying Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments, Residential Mortgage Loans, Fair Value Disclosure | $ 1,282 | $ 845 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Narrative (Detail) | Nov. 30, 2017 | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($)$ / Contract | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) |
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 | $ 200,000,000 | $ 86,000,000 | |||
Assets, net transfer in (out) of Level 3 | 0 | ||||
Asset-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, net transfer in (out) of Level 3 | (19,000,000) | (24,000,000) | |||
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 | 0 | 0 | |||
Corporates | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, net transfer in (out) of Level 3 | 0 | 11,000,000 | |||
Hybrids | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, net transfer in (out) of Level 3 | 0 | 0 | |||
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 | |||
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 | (6,000,000) | 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 | |||
Equity securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Alternative Investment | 0 | $ 69,000,000 | |||
Assets, net transfer in (out) of Level 3 | $ 0 | $ 15,000,000 | |||
Income Approach Valuation Technique | Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, strike price | $ / Contract | 0 | ||||
Preferred Stock | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Preferred Stock, Call Features, Minimum Term | 5 years | 5 years | |||
Preferred Stock, Dividend Rate, Percentage, Less Than Par | 90.00% | ||||
Available-for-sale Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets held by insurance regulators | $ 16,337,000,000 | $ 17,591,000,000 | |||
FSRC and F&G Re [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Undiscounted Cash flows used in fair value measurement | $ (263,000,000) | ||||
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 | 112.18% | 119.35% | |||
Maximum | Market Approach | Corporates | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, quoted prices | 102.13% | 106.73% | |||
Maximum | Market Approach | Hybrids | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, quoted prices | 100.80% | 104.72% | |||
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 | 118.01% | 127.68% | |||
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 | 103.20% | 106.50% | |||
Maximum | Market Approach | Foreign Governments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, quoted prices | 102.85% | 118.09% | |||
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 | 0.00% | ||||
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 | 0.00% | 0.00% | |||
Maximum | Income Approach Valuation Technique | Corporates | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, quoted prices | 116.89% | 119.44% | |||
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 | 0.17% | 55.00% | |||
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 | 105.02% | 99.43% | |||
Weighted Average | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Risk Margin To Reflect Uncertainty | 0.00% | ||||
Credit Spread | $ 0.0751 | $ 0.0381 | |||
Yield Volatility | 0.00% | 20.00% | |||
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 | 97.88% | 102.02% | |||
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% | 0.00% | |||
Fair Value Input Recovery Rate | 2.47% | ||||
Weighted Average | Market Approach | Corporates | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, quoted prices | 95.47% | 99.56% | |||
Weighted Average | Market Approach | Hybrids | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, quoted prices | 100.80% | 104.72% | |||
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 | 118.01% | 127.68% | |||
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 | 103.20% | 106.28% | |||
Weighted Average | Market Approach | Foreign Governments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, quoted prices | 102.28% | 112.61% | |||
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 | 0.00% | ||||
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 | 0.00% | 0.00% | |||
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 | 99.21% | 105.06% | |||
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 | 2.33% | ||||
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 | 0.07% | 21.18% | |||
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 | 71.27% | 35.96% | |||
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 | 118.31% | 126.82% | |||
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 | 0.00% | ||||
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 | 91.53% | 98.65% | |||
Minimum | Market Approach | Corporates | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, quoted prices | 82.38% | 83.51% | |||
Minimum | Market Approach | Hybrids | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, quoted prices | 100.80% | 104.72% | |||
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 | 118.01% | 127.68% | |||
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 | 0.00% | 0.00% | |||
Minimum | Market Approach | Foreign Governments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, quoted prices | 102.02% | 110.12% | |||
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 | 0.00% | ||||
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 | 0.00% | 0.00% | |||
Minimum | Income Approach Valuation Technique | Corporates | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, quoted prices | 59.84% | 98.58% | |||
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 | 119.30% | 127.60% | |||
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 | 84.49% | 100.15% | |||
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 | 5.00% | ||||
Risk Margin To Reflect Uncertainty | 0.96% | ||||
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 | .0007 | ||||
Fair value inputs, swap rates | 21.06% | ||||
Fair value inputs, mortality multiplier | 2.15% | ||||
Fair value inputs, non performance spread | 1.34% | ||||
Risk Margin To Reflect Uncertainty | 0.40% | ||||
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 | 0.50% | ||||
Fair value inputs, mortality multiplier | 0.00% | ||||
Fair value inputs, non performance spread | 0.00% | ||||
Risk Margin To Reflect Uncertainty | 0.31% | ||||
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 | 26.37% | 32.54% | |||
Fair value inputs, swap rates | 0.72% | 0.96% | |||
Fair value inputs, mortality multiplier | 80.00% | 2.00% | |||
Fair value inputs, surrender rates | 75.00% | 75.00% | |||
Fair value inputs, non performance spread | 0.25% | 1.90% | |||
Fixed indexed annuities | Maximum | Partial Withdrawls | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, surrender rates | 3.50% | 3.50% | |||
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% | 80.00% | |||
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 | 1.12% | 3.64% | |||
Fair value inputs, swap rates | 0.62% | 0.34% | |||
Fair value inputs, mortality multiplier | 80.00% | 0.07% | |||
Fair value inputs, surrender rates | 5.66% | 5.64% | |||
Fair value inputs, non performance spread | 0.25% | 1.81% | |||
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 | 2.53% | 2.53% | |||
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 | 2.14% | 80.00% | |||
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 | 0.52% | 0.23% | |||
Fair value inputs, mortality multiplier | 80.00% | 0.00% | |||
Fair value inputs, surrender rates | 0.50% | 0.50% | |||
Fair value inputs, non performance spread | 0.25% | 1.73% | |||
Fixed indexed annuities | Minimum | 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 | Minimum | Option Cost | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, non performance spread | 0.09% | 80.00% | |||
Private Equity Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Alternative Investment | $ 1,065,000,000 | $ 1,010,000,000 | |||
Subsequent Event [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments, Fair Value Disclosure | $ 20,000,000 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Carrying amount | $ 2,029 | $ 1,455 | |
FGL [Member] | Trademarks and Trade Names [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Net | 12 | ||
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 | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Deferred Sale Inducement Cost | $ 312 | $ 183 | $ 232 | $ 149 |
VOBA | ||||
VOBA at beginning of period | 593 | 866 | ||
Deferrals | 0 | 0 | ||
Amortization | 19 | (31) | ||
Interest | 4 | 4 | ||
Unlocking | (5) | 0 | ||
Adjustment for net unrealized investment (gains) losses | 262 | (35) | ||
VOBA at end of period | 873 | 804 | ||
Deferred Sales Inducement Cost, Unrealized Gain (Loss) on Investment | 39 | 0 | ||
Deferred Sales Inducement Cost, Unlocking Adjustment | 1 | 0 | ||
Deferred Sales Inducement Cost, Amortization Expense, Accrued Interest | 1 | 1 | ||
Deferred Sales Inducement Cost, Amortization Expense | 12 | (2) | ||
Deferred Sale Inducement Cost, Capitalization | 27 | 35 | ||
DAC | ||||
DAC at beginning of period | 844 | 434 | 630 | 344 |
Deferrals | 106 | 91 | ||
Amortization | 25 | (3) | ||
Interest | 5 | 2 | ||
Unlocking | (1) | 0 | ||
Adjustment for net unrealized investment (gains) losses | 79 | 0 | ||
DAC at end of period | 844 | 434 | 630 | 344 |
Total | ||||
Total VOBA and DAC at beginning of period | 2,029 | 1,421 | $ 1,455 | $ 1,359 |
Deferrals | 133 | 126 | ||
Amortization | 56 | (36) | ||
Unlocking | (5) | 0 | ||
Adjustment for net unrealized investment (gains) losses | 380 | (35) | ||
Interest | $ 10 | $ 7 | ||
Document Period End Date | Mar. 31, 2020 |
Intangible Assets - Definite Li
Intangible Assets - Definite Lived Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | |||
Intangibles, net | $ 2,029 | $ 1,455 | |
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 | 4 | ||
Finite-Lived Intangible Assets, Net | 12 | ||
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 | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Unearned Revenue, Net | $ (87) | $ (39) | |
Unearned Revenue, Unlocking Adjustment | 1 | 0 | |
Goodwill | $ 467 | $ 467 | |
Document Period End Date | Mar. 31, 2020 | ||
Deferred Sales Inducement Cost, Unrealized Gain (Loss) on Investment | $ 39 | 0 | |
Unearned Revenue, Additions | (12) | (9) | |
Unearned Revenue, Amortization Expense | (2) | 2 | |
Interest Expense | (1) | ||
Unearned Revenue, Unrealized Gain (Loss) on Investment | $ (30) | 9 | |
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 | $ (155) | (40) | |
Dac [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cumulative Adjustments For Net Unrealized Investment Gains | (9) | (5) | |
Deferred Sales Inducement Cost, Unrealized Gain (Loss) on Investment | $ 10 | $ 2 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense for VOBA in Future Fiscal Periods (Detail) $ in Millions | Mar. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | $ 63 |
2020 | 86 |
2021 | 83 |
2022 | 74 |
2023 | 66 |
Thereafter | $ 347 |
Debt - Narrative (Detail)
Debt - Narrative (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 543 | |
Long-term Debt | $ 542 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 0 | $ 0 |
Interest rate if revolver drawn | 3.74% | 4.55% |
Remaining borrowing capacity | $ 250 | $ 250 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 543 | |
Long-term Debt | $ 542 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 0 | $ 0 |
Equity - Schedule of Dividends
Equity - Schedule of Dividends (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Sep. 09, 2019 | Aug. 07, 2019 | Aug. 26, 2019 |
Accelerated Share Repurchases [Line Items] | |||
Common stock, shares outstanding (in shares) | 222,119 | ||
Cash dividend per common share (in dollars per share) | $ 0.01 | ||
Total cash paid | $ 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 | Oct. 01, 2019USD ($)shares | Sep. 15, 2019shares | Aug. 07, 2019$ / shares | Apr. 01, 2018USD ($)shares | Mar. 15, 2018shareholder | Mar. 31, 2020USD ($)shares |
Class of Stock [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 150,000 | ||||||
Cash dividend per common share (in dollars per share) | $ / shares | $ 0.01 | ||||||
Total Stock Repurchased During Period, Shares | shares | 8,652 | ||||||
Total Stock Repurchased During Period, Value | $ 69,000 | ||||||
Preferred Stock | Series A Cumulative Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of Shareholders | 321 | 298 | |||||
Total cash paid | $ 0 | $ 0 | |||||
Total shares paid in kind (in thousands) | shares | 6 | 6 | |||||
Preferred Stock | Series B Cumulative Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of Shareholders | 117 | 108 | |||||
Total cash paid | $ 0 | $ 0 | |||||
Total shares paid in kind (in thousands) | shares | 2 | 2 | |||||
Subsequent Event [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock Repurchase Program Expiration Date | Dec. 15, 2020 |
Stock Compensation - Narrative
Stock Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Aug. 08, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,714,000 | |||
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 | 0 | |||
Vested and exercisable at end of period (in shares) | 1,467,000 | |||
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 | $ 10.48 | $ 0 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Options Fair Value At Grant Date | $ 1 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 95,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.48 | |||
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 | 95,000 | 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 | $ 9.79 | $ 9.02 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Options Fair Value At Grant Date | $ 5 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 456,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.87 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (123,000) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 9.14 | |||
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 | 1,078,000 | 745,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities | $ 2 | |||
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 | 95,000 | |||
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 | 456,000 | |||
FGL Holdings [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share Price | $ 9.80 |
Stock Compensation - Schedule o
Stock Compensation - Schedule of Stock Based Compensation Costs (Details) shares in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Related tax benefit | $ 1 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total stock compensation expense | 2 |
Phantom Share Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total stock compensation expense | 3 |
Management Incentive Plan [Member] | Phantom Share Units (PSUs) [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 | $ 5 |
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 | shares | 0 |
FGL Incentive Plan [Member] | Restricted shares | |
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 | $ 1 |
Stock Compensation - Summary of
Stock Compensation - Summary of Unrecognized Stock Compensation Expense (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 27 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years |
FGL Incentive Plan [Member] | Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 17 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years |
Management Incentive Plan [Member] | Phantom Share Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 10 |
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) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Sep. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 |
FGL Incentive Plan [Member] | |||
Options (in shares): | |||
Stock options outstanding at beginning of period (in shares) | 15,214 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | 0 | ||
Forfeited or expired (in shares) | (97) | ||
Stock options outstanding at end (in shares) | 15,117 | ||
Vested and exercisable at end of period (in shares) | 1,467 | ||
Vested or projected to vest (in shares) | 15,117 | ||
Weighted Average Exercise Price (in dollars per share): | |||
Stock options outstanding at beginning of period (USD per share) | $ 9.30 | ||
Granted (USD per share) | 0 | ||
Exercised (USD per share) | 0 | ||
Forfeited or expired (USD per share) | 10 | ||
Stock options outstanding at end of period (USD per share) | 9.30 | ||
Vested and exercisable at end of period (USD per share) | $ 9.31 | ||
Vested and projected to vest (in dollars per share) | $ 9.30 | ||
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 | 95 | 0 | |
Options (in shares): | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Options Fair Value At Grant Date | $ 1 | ||
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 | $ 10.48 | $ 0 | |
Granted (in shares) | 95 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.48 | ||
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 | 1,078 | 745 | |
Options (in shares): | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Options Fair Value At Grant Date | $ 5 | ||
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 | $ 9.79 | $ 9.02 | |
Granted (in shares) | 456 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.87 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (123) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 9.14 | ||
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 |
Stock Compensation - Summary _3
Stock Compensation - Summary of Options Subject To Vesting Conditions (Details) shares in Thousands | Mar. 31, 2020shares |
FGL Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vested or projected to vest (in shares) | 15,117 |
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] | 3 Months Ended |
Mar. 31, 2020 | |
Service Vesting Mechanism [Member] | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.53% |
Assumed dividend yield | 0.46% |
Expected option term | 4 years 6 months |
Service Vesting Mechanism [Member] | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.48% |
Assumed dividend yield | 0.56% |
Expected option term | 5 years 9 months 18 days |
Service and Return on Equity Performance Vesting Mechanism [Member] | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.53% |
Assumed dividend yield | 0.46% |
Expected option term | 4 years 9 months 18 days |
Service and Return on Equity Performance Vesting Mechanism [Member] | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.50% |
Assumed dividend yield | 0.56% |
Expected option term | 6 years |
Service and Stock Price Performance Vesting Mechanism [Member] | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.62% |
Assumed dividend yield | 0.46% |
share-based compensation arrangement by share-based payment award, fair value assumptions, contractual term | 6 years |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Cost of Equity | 9.39% |
Service and Stock Price Performance Vesting Mechanism [Member] | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.30% |
Assumed dividend yield | 0.56% |
share-based compensation arrangement by share-based payment award, fair value assumptions, contractual term | 7 years |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Cost of Equity | 10.50% |
Stock Compensation - Summary _4
Stock Compensation - Summary of Restricted Stock and Restricted Stock Units Outstanding and Related Activity (Details) - FGL Incentive Plan [Member] - Restricted shares shares in Thousands | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Shares: | |
Restricted shares outstanding at beginning of period (in shares) | shares | 0 |
Granted (in shares) | shares | 95 |
Vested (in shares) | shares | 0 |
Restricted shares outstanding at end of period (in shares) | shares | 95 |
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 | 10.48 |
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 | $ 10.48 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Tax Credit Carryforward [Line Items] | ||
Effective tax rate | 0.00% | 5.00% |
Valuation allowance | $ 297 | |
Deferred Tax Assets, Gross | $ 561 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Investment Commitments (Details) - Commitment to Invest $ in Millions | Mar. 31, 2020USD ($) |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 1,452 |
Other invested assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 1,252 |
Fixed maturity securities, available-for-sale | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 111 |
Other assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 71 |
Residential Mortgage [Member] | |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 18 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) | Sep. 30, 2019 | Mar. 31, 2020 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Effects of Reinsurance [Line Items] | ||
Document Period End Date | Mar. 31, 2020 | |
Benefits and Other Changes in Insurance Policy Reserves: | ||
Net | $ (41) | $ 339 |
Traditional life insurance premiums | ||
Premiums and other considerations: | ||
Direct | 50 | 57 |
Assumed | 0 | 0 |
Ceded | (40) | (41) |
Net | 10 | 16 |
Benefits and Other Changes in Insurance Policy Reserves: | ||
Direct | 130 | 372 |
Assumed | (115) | 20 |
Ceded | (56) | (53) |
Net | $ (41) | $ 339 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) | Jun. 28, 2019USD ($) | Dec. 28, 2018USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) |
Ceded Credit Risk [Line Items] | |||||
Document Period End Date | Mar. 31, 2020 | ||||
Reinsurance, Loss on Uncollectible Accounts in Period, Amount | $ 0 | $ 0 | |||
Reinsurance Risk Charge Fee | $ 5 | ||||
Number of policies reinsured by foreign company not engaged in insurance | 0 | ||||
Funds withheld for reinsurance receivables, at fair value | $ 2,050,000,000 | $ 2,172,000,000 | |||
Funds Held under Reinsurance Agreements, Liability | 821,000,000 | 831,000,000 | |||
Liability for Future Policy Benefit, before Reinsurance | 5,658,000,000 | $ 5,735,000,000 | |||
Life and Annuity Insurance Product Line | |||||
Ceded Credit Risk [Line Items] | |||||
Ceded | 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 | 266,000,000 | ||||
Funds Held under Reinsurance Agreements, Liability | 263,000,000 | ||||
F&G Re [Member] | |||||
Ceded Credit Risk [Line Items] | |||||
Funds withheld for reinsurance receivables, at fair value | 1,784,000,000 | ||||
Funds Held under Reinsurance Agreements, Liability | $ 1,641,000,000 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) shares in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 17, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||||||
Document Period End Date | Mar. 31, 2020 | |||||
Related Party Transactions, Gain (Loss) | $ (3,000,000) | $ 0 | ||||
Management Fee Payable | 33,000,000 | $ 47,000,000 | ||||
Reimbursement Fees | 3,000,000 | $ 2,000,000 | ||||
Related Party Transaction, Asset Carrying Value | 1,978,000,000 | 2,001,000,000 | ||||
Unrealized Loss on Foreign Currency Derivatives, before Tax | $ (5,000,000) | $ (3,000,000) | ||||
Commitment to Invest | ||||||
Related Party Transaction [Line Items] | ||||||
Unfunded investment commitment | 1,452,000,000 | |||||
Commitment to Invest | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Unfunded investment commitment | $ 1,042,000,000 | $ 993,000,000 | ||||
Preferred Stock | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Total shares paid in kind (in thousands) | 6 | |||||
Residential Portfolio Segment [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Residential Mortgage Loans Purchased | $ 89,000,000 | $ 103,000,000 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Document Period End Date | Mar. 31, 2020 | |
Net income (loss) | $ (338) | $ 171 |
Less Preferred stock dividend | 8 | 8 |
Net Income (Loss) from Continuing Operations Available to Common Shareholders, Basic | $ (346) | $ 163 |
Weighted-average common shares outstanding - basic (in shares) | 213,155,198 | 219,645,679 |
Dilutive effect of unvested restricted stock and unvested performance restricted stock (in shares) | 0 | 36,000 |
Weighted-average shares outstanding - diluted (in shares) | 213,155,198 | 219,681,679 |
Net income (loss) per common share: | ||
Basic (in USD per share) | $ (1.62) | $ 0.74 |
Diluted (in USD per share) | $ (1.62) | $ 0.74 |
Common Stock Warrants Outstanding | 6,000,000 | 6,000,000 |
Preferred Stock | ||
Net income (loss) per common share: | ||
Antidilutive securities excluded from computation of EPS, less than, amount (shares) | 438,000 | 406,000,000 |
Stock Option Awards | ||
Net income (loss) per common share: | ||
Antidilutive securities excluded from computation of EPS, less than, amount (shares) | 276,000 | 1,737,000 |
Insurance Subsidiary Financia_2
Insurance Subsidiary Financial Information and Regulatory Matters - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statutory Accounting Practices [Line Items] | ||
Change in statutory capital surplus | $ 100 | |
Non-permitted statutory accounting practices | (10) | $ (19) |
Statutory capital and surplus | 92 | 87 |
Increase (decrease) in statutory capital surplus | 13 | (110) |
IOWA | ||
Statutory Accounting Practices [Line Items] | ||
Change in statutory capital surplus | $ 1 | $ 6 |