Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 15, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | BRIGHTHOUSE FINANCIAL, INC. | ||
Entity Central Index Key | 1,685,040 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 119,773,106 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $60,173 and $58,715, respectively; includes $0 and $3,413, respectively, relating to variable interest entities) | $ 64,991 | $ 61,388 |
Equity securities available-for-sale, at estimated fair value (cost: $212 and $280, respectively) | 232 | 300 |
Mortgage loans (net of valuation allowances of $47 and $40, respectively; includes $115 and $136, respectively, at estimated fair value, relating to variable interest entities) | 10,742 | 9,378 |
Policy loans | 1,523 | 1,517 |
Real estate joint ventures | 433 | 215 |
Other limited partnership interests | 1,669 | 1,642 |
Short-term investments, principally at estimated fair value | 312 | 1,288 |
Other invested assets, principally at estimated fair value | 2,436 | 4,904 |
Total investments | 82,338 | 80,632 |
Cash and cash equivalents, principally at estimated fair value (includes $0 and $9, respectively, relating to variable interest entities) | 1,857 | 5,228 |
Accrued investment income (includes $1 and $1, respectively, relating to variable interest entities) | 601 | 693 |
Premiums, reinsurance and other receivables | 13,525 | 14,647 |
Deferred policy acquisition costs and value of business acquired | 6,286 | 6,293 |
Current income tax recoverable | 740 | 778 |
Other assets | 588 | 616 |
Separate account assets | 118,257 | 113,043 |
Total assets | 224,192 | 221,930 |
Liabilities | ||
Future policy benefits | 36,616 | 33,372 |
Policyholder account balances | 37,783 | 37,526 |
Other policy-related balances | 2,985 | 3,045 |
Payables for collateral under securities loaned and other transactions | 4,169 | 7,390 |
Long-term Debt | 3,612 | 1,910 |
Collateral financing arrangement | 0 | 2,797 |
Deferred income tax liability | 927 | 2,056 |
Other liabilities (includes $0 and $1, respectively, relating to variable interest entities) | 5,263 | 5,929 |
Separate account liabilities | 118,257 | 113,043 |
Total liabilities | 209,612 | 207,068 |
Contingencies, Commitments and Guarantees (Note 16) | ||
Brighthouse Financial, Inc.’s stockholders’ equity: | ||
Common stock, par value $0.01 per share; 1,000,000,000 and 100,000 shares authorized, respectively; 119,773,106 and 100,000 shares issued and outstanding, respectively | 1 | 0 |
Additional paid-in capital | 12,432 | 0 |
Retained earnings | 406 | 0 |
Shareholder's net investment | 0 | 13,597 |
Accumulated other comprehensive income (loss) | 1,676 | 1,265 |
Total Brighthouse Financial, Inc.’s stockholders’ equity | 14,515 | 14,862 |
Noncontrolling interests | 65 | 0 |
Total equity | 14,580 | 14,862 |
Total liabilities and equity | $ 224,192 | $ 221,930 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $ 60,173 | $ 58,715 |
Fixed maturity securities relating to variable interest entities | 64,991 | 61,388 |
Cost of equity securities available-for-sale | 212 | 280 |
Mortgage loans valuation allowances | 47 | 40 |
Mortgage Loans on Real Estate | 10,742 | 9,378 |
Cash and cash equivalents relating to variable interest entities | 1,857 | 5,228 |
Accrued investment income relating to variable interest entities | 601 | 693 |
Long-term Debt | 3,612 | 1,910 |
Liabilities | ||
Other liabilities relating to variable interest entities | $ 5,263 | $ 5,929 |
Brighthouse Financial, Inc.’s stockholders’ equity: | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 100,000 |
Common stock, shares issued | 119,773,106 | 100,000 |
Common stock, shares outstanding | 119,773,106 | 100,000 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Assets | ||
Fixed maturity securities relating to variable interest entities | $ 0 | $ 3,413 |
Mortgage Loans on Real Estate | 115 | 136 |
Cash and cash equivalents relating to variable interest entities | 0 | 9 |
Accrued investment income relating to variable interest entities | 1 | 1 |
Long-term Debt | 11 | 23 |
Liabilities | ||
Other liabilities relating to variable interest entities | $ 0 | $ 1 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per common share | |||
Basic | $ (3.16) | ||
Revenues | |||
Premiums | $ 863 | $ 1,222 | $ 1,679 |
Universal life and investment-type product policy fees | 3,898 | 3,782 | 4,010 |
Net investment income | 3,078 | 3,207 | 3,099 |
Other revenues | 651 | 736 | 422 |
Net investment gains (losses): | |||
Other-than-temporary impairments on fixed maturity securities | (1) | (19) | (23) |
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss) | 0 | (3) | (8) |
Other net investment gains (losses) | (27) | (56) | 38 |
Total net investment gains (losses) | (28) | (78) | 7 |
Net derivative gains (losses) | (1,620) | (5,851) | (326) |
Total revenues | 6,842 | 3,018 | 8,891 |
Expenses | |||
Policyholder benefits and claims | 3,636 | 3,903 | 3,269 |
Interest credited to policyholder account balances | 1,111 | 1,165 | 1,259 |
Amortization of DAC and VOBA | 227 | 371 | 781 |
Other expenses | 2,483 | 2,284 | 2,120 |
Total expenses | 7,457 | 7,723 | 7,429 |
Income (loss) before provision for income tax | (615) | (4,705) | 1,462 |
Provision for income tax expense (benefit) | (237) | (1,766) | 343 |
Net income (loss) | $ (378) | $ (2,939) | $ 1,119 |
Pro Forma | |||
Earnings per common share | |||
Basic | $ (24.54) | $ 9.34 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (378) | $ (2,939) | $ 1,119 |
Other comprehensive income (loss): | |||
Unrealized investment gains (losses), net of related offsets | 336 | (421) | (1,898) |
Unrealized gains (losses) on derivatives | (175) | 26 | 95 |
Foreign currency translation adjustments | 10 | 1 | (25) |
Defined benefit plans adjustment | (19) | 3 | (6) |
Other comprehensive income (loss), before income tax | 152 | (391) | (1,834) |
Income tax (expense) benefit related to items of other comprehensive income (loss) | 259 | 133 | 642 |
Comprehensive income (loss) | 411 | (258) | (1,192) |
Comprehensive income (loss) | $ 33 | $ (3,197) | $ (73) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Shareholder’s Net Investment | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Brighthouse Financial, Inc.'s Stockholders’ Equity | Noncontrolling Interests |
Total Brighthouse Financial, Inc.’s stockholders’ equity | $ 14,810 | $ 0 | $ 0 | $ 0 | $ 2,715 | $ 17,525 | ||
Beginning Balance at Dec. 31, 2014 | $ 17,525 | $ 0 | ||||||
Change in shareholders Net Investment | (613) | (613) | (613) | |||||
Net income (loss) | 1,119 | 1,119 | 1,119 | |||||
Other comprehensive income (loss), net of income tax | (1,192) | (1,192) | (1,192) | |||||
Ending Balance at Dec. 31, 2015 | 16,839 | 0 | ||||||
Total Brighthouse Financial, Inc.’s stockholders’ equity | 15,316 | 0 | 0 | 0 | 1,523 | 16,839 | ||
Change in shareholders Net Investment | 1,220 | 1,220 | 1,220 | |||||
Net income (loss) | (2,939) | (2,939) | (2,939) | |||||
Other comprehensive income (loss), net of income tax | (258) | (258) | (258) | |||||
Ending Balance at Dec. 31, 2016 | 14,862 | 0 | ||||||
Total Brighthouse Financial, Inc.’s stockholders’ equity | 14,862 | 13,597 | 0 | 0 | 0 | 1,265 | 14,862 | |
Stockholders' Equity, Other | 1 | 1 | 1 | |||||
Stockholders' Equity, Period Increase (Decrease) | (1,798) | (1,798) | (1,798) | |||||
Change in shareholders Net Investment | 1,718 | 1,718 | 1,718 | |||||
Net income (loss) | (378) | (1,085) | 707 | (378) | ||||
Adjustments to Additional Paid in Capital, Other | 0 | (12,433) | 12,432 | 0 | ||||
Stock Issued During Period, Value, New Issues | 1 | |||||||
Other Separation related transactions | 65 | 0 | 65 | |||||
Other comprehensive income (loss), net of income tax | 110 | 110 | 110 | |||||
Ending Balance at Dec. 31, 2017 | 14,580 | $ 65 | ||||||
Total Brighthouse Financial, Inc.’s stockholders’ equity | 14,515 | $ 0 | $ 1 | $ 12,432 | 406 | 1,676 | 14,515 | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0 | $ (301) | $ 301 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income (loss) | $ (378) | $ (2,939) | $ 1,119 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization expenses | 17 | 17 | 26 |
Amortization of premiums and accretion of discounts associated with investments, net | (276) | (235) | (240) |
(Gains) losses on investments, net | 28 | 78 | (7) |
(Gains) losses on derivatives, net | 3,000 | 7,093 | 1,221 |
(Income) loss from equity method investments, net of dividends and distributions | (46) | (7) | 118 |
Interest credited to policyholder account balances | 1,111 | 1,165 | 1,259 |
Universal life and investment-type product policy fees | (3,898) | (3,782) | (4,010) |
Goodwill impairment | 0 | 161 | 0 |
Change in accrued investment income | (80) | (33) | 1 |
Change in premiums, reinsurance and other receivables | 197 | 40 | (394) |
Change in deferred policy acquisition costs and value of business acquired, net | (33) | 38 | 382 |
Change in income tax | (117) | (2,084) | 731 |
Change in other assets | 2,254 | 2,240 | 2,348 |
Change in future policy benefits and other policy-related balances | 1,418 | 2,438 | 2,295 |
Change in other liabilities | 70 | (586) | (247) |
Other, net | 129 | 132 | 29 |
Net cash provided by (used in) operating activities | 3,396 | 3,736 | 4,631 |
Cash flows from investing activities | |||
Sales, maturities and repayments of fixed maturity securities | 17,214 | 46,130 | 38,885 |
Sales, maturities and repayments of equity securities | 97 | 224 | 308 |
Sales, maturities and repayments of mortgage loans | 742 | 1,602 | 1,105 |
Sales, maturities and repayments of real estate and real estate joint ventures | 77 | 450 | 512 |
Sales, maturities and repayments of other limited partnership interests | 264 | 417 | 426 |
Purchases of fixed maturity securities | (18,782) | (39,687) | (44,058) |
Purchases of equity securities | (2) | (58) | (273) |
Purchases of mortgage loans | (2,041) | (2,855) | (2,570) |
Purchases of real estate and real estate joint ventures | (268) | (75) | (109) |
Purchases of other limited partnership interests | (263) | (203) | (233) |
Cash received in connection with freestanding derivatives | 1,865 | 709 | 227 |
Cash paid in connection with freestanding derivatives | (3,831) | (2,765) | (871) |
Cash received under repurchase agreements | 0 | 0 | 199 |
Cash paid under repurchase agreements | 0 | 0 | (199) |
Cash received under reverse repurchase agreements | 0 | 0 | 199 |
Cash paid under reverse repurchase agreements | 0 | 0 | (199) |
Sale of loans to a former affiliate | 0 | 0 | 26 |
Receipts on loans to a former affiliate | 0 | 50 | 0 |
Net change in policy loans | (6) | 111 | (77) |
Net change in short-term investments | 1,030 | 616 | (316) |
Net change in other invested assets | (13) | 8 | (24) |
Other, net | 2 | 0 | 0 |
Net cash provided by (used in) investing activities | (3,915) | 4,674 | (7,042) |
Cash flows from financing activities | |||
Policyholder account balances: Deposits | 4,990 | 10,712 | 20,953 |
Policyholder account balances: Withdrawals | (3,103) | (12,379) | (21,178) |
Net change in payables for collateral under securities loaned and other transactions | (3,147) | (3,247) | 3,126 |
Long-term debt issued | 3,588 | 0 | 175 |
Long-term debt repaid | (13) | (26) | (235) |
Collateral financing arrangement repaid | (2,797) | 0 | 0 |
Distribution to MetLife, Inc. | (1,798) | 0 | 0 |
Cash received from MetLife, Inc. in connection with shareholder’s net investment | 293 | 1,833 | 406 |
Cash paid to MetLife, Inc. in connection with shareholder’s net investment | (668) | (634) | (771) |
Financing element on certain derivative instruments and other derivative related transactions, net | (149) | (1,011) | (96) |
Other, net | (48) | 0 | 0 |
Net cash provided by (used in) financing activities | (2,852) | (4,752) | 2,380 |
Effect of change in foreign currency exchange rates on cash and cash equivalents balances | 0 | 0 | (2) |
Change in cash and cash equivalents | (3,371) | 3,658 | (33) |
Cash and cash equivalents, beginning of year | 5,228 | 1,570 | 1,603 |
Cash and cash equivalents, end of year | 1,857 | 5,228 | 1,570 |
Supplemental disclosures of cash flow information | |||
Net cash paid (received) for interest | 155 | 186 | 195 |
Net cash paid (received) for income tax | (637) | 189 | (405) |
Non-cash transactions: | |||
Transfer of fixed maturity securities from former affiliates | 0 | 4,030 | 0 |
Transfer of mortgage loans from former affiliates | 0 | 662 | 0 |
Transfer of short-term investments from former affiliates | 0 | 94 | 0 |
Transfer of fixed maturity securities to former affiliates | 293 | 346 | 0 |
Reduction of other invested assets in connection with affiliated reinsurance transactions | 0 | 676 | 0 |
Reduction of policyholder account balances in connection with reinsurance transactions | $ 293 | $ 0 | $ 0 |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business “Brighthouse” and the “Company” refer to Brighthouse Financial, Inc. and its subsidiaries (formerly, MetLife U.S. Retail Separation Business). Brighthouse Financial, Inc. is a holding company formed to own the legal entities that historically operated a substantial portion of MetLife, Inc.’s former Retail segment. Brighthouse Financial, Inc. was incorporated in Delaware on August 1, 2016 in preparation for MetLife, Inc.’s separation of a substantial portion of its former Retail segment, as well as certain portions of its Corporate Benefit Funding segment (the “Separation”), which was completed on August 4, 2017. The Company offers a range of individual annuities and individual life insurance products. The Company reports results through three segments: Annuities, Life and Run-off. In addition, the Company reports certain of its results in Corporate & Other. On January 12, 2016, MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, “MetLife”) announced its plan to pursue the separation of a substantial portion of its former U.S. retail business. Additionally, on July 21, 2016, MetLife, Inc. announced that the separated business would be rebranded as “Brighthouse Financial.” On October 5, 2016, Brighthouse Financial, Inc., which until the completion of the Separation on August 4, 2017, was a wholly-owned subsidiary of MetLife, Inc., filed a registration statement on Form 10 (as amended, the “Form 10”) with the U.S. Securities and Exchange Commission (“SEC”) that was declared effective by the SEC on July 6, 2017. The Form 10 disclosed MetLife, Inc.’s plans to undertake several actions, including an internal reorganization involving its U.S. retail business (the “Restructuring”) and include Brighthouse Life Insurance Company, Brighthouse Life Insurance Company of NY (“BHNY”), New England Life Insurance Company (“NELICO”), Brighthouse Reinsurance Company of Delaware (“BRCD”) and Brighthouse Investment Advisers, LLC in the planned separated business and distribute at least 80.1% of the shares of Brighthouse Financial, Inc.’s common stock on a pro rata basis to the holders of MetLife, Inc. common stock. In connection with the Restructuring, effective April 2017, following receipt of applicable regulatory approvals, MetLife, Inc. contributed certain affiliated reinsurance companies and BHNY to Brighthouse Life Insurance Company. The affiliated reinsurance companies, which included MetLife Reinsurance Company of Delaware (“MRD”), MetLife Reinsurance Company of South Carolina (“MRSC”) and a designated protected cell of MetLife Reinsurance Company of Vermont (“MRV Cell”), were then merged into BRCD, a licensed reinsurance subsidiary of Brighthouse Life Insurance Company. On July 28, 2017, MetLife, Inc. contributed Brighthouse Holdings, LLC (“BH Holdings”) to Brighthouse Financial, Inc. See Notes 10 and 14 . On August 4, 2017, Brighthouse Financial, Inc. entered into the Master Separation Agreement with MetLife and MetLife, Inc. completed the Separation through a distribution of 80.8% of MetLife, Inc.’s interest in Brighthouse Financial, Inc., to holders of MetLife, Inc.’s common stock and retained the remaining 19.2% . As a result, Brighthouse Financial, Inc. is now an independent, publicly traded company on the Nasdaq Stock Market under the symbol “BHF.” Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. Consolidation The financial statements presented in this annual report for periods on or after the Separation are presented on a consolidated basis and include the financial position, results of operations and cash flows of the Company. The accompanying consolidated financial statements include the accounts of Brighthouse Financial, Inc. and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investee”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee’s operations. Combination The financial statements for the periods prior to the Separation are presented on a combined basis and reflect the historical combined financial position, results of operations and cash flows. The combined balance sheets include the attribution of certain assets and liabilities that were historically held at the MetLife corporate level but which were specifically identifiable or attributable to the Company. Similarly, certain assets attributable to shared services managed at the MetLife corporate level were excluded from the combined balance sheets. The combined statements of operations reflect certain corporate expenses allocated to the Company by MetLife for certain corporate functions and for shared services provided by MetLife. These expenses were allocated to the Company based on direct usage or benefit where specifically identifiable, with the remainder allocated based upon other reasonable allocation measures. The Company considers the expense methodology and results to be reasonable for all periods presented. See Note 16 for further information on expenses allocated by MetLife. The Company previously recorded affiliated transactions with certain MetLife subsidiaries which are not included in the combined financial statements of the Company. The income tax amounts in these combined financial statements have been calculated based on a separate return methodology and presented as if each company was a separate taxpayer in its respective jurisdiction. The historical financial results in the combined financial statements presented may not be indicative of the results that would have been achieved by the Company had it operated as a separate, stand-alone entity prior to the Separation. The combined financial statements presented do not reflect any changes that may occur in the Company’s financing and operations in connection with or as a result of the Separation. Management believes that the combined financial statements include all adjustments necessary for a fair presentation of the business. Reclassifications Certain amounts in the prior years’ combined financial statements and related footnotes thereto have been reclassified to conform with the current year presentation as discussed throughout the Notes to the Consolidated and Combined Financial Statements. Summary of Significant Accounting Policies The following are the Company’s significant accounting policies with references to notes providing additional information on such policies and critical accounting estimates relating to such policies. Accounting Policy Note Insurance 3 Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles 4 Reinsurance 5 Investments 6 Derivatives 7 Fair Value 8 Income Tax 13 Litigation Contingencies 15 Insurance Future Policy Benefit Liabilities and Policyholder Account Balances The Company establishes liabilities for future amounts payable under insurance policies. Insurance liabilities are generally calculated as the present value of future expected benefits to be paid, reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying assumptions that are in accordance with GAAP and applicable actuarial standards. The principal assumptions used in the establishment of liabilities for future policy benefits are mortality, morbidity, benefit utilization and withdrawals, policy lapse, retirement, disability incidence, disability terminations, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type. For traditional long duration insurance contracts (term and whole-life insurance and immediate annuities), assumptions are determined at issuance of the policy and remain “locked-in” unless a premium deficiency exists. A premium deficiency exists when the liability for future policy benefits plus the present value of expected future gross premiums are less than expected future benefits and expenses (based on current assumptions). When a premium deficiency exists, the Company will reduce any deferred acquisition costs and may also establish an additional liability to eliminate the deficiency. To assess whether a premium deficiency exists, the Company groups insurance contracts based on the manner acquired, serviced and the measurement of profitability. In applying the profitability criteria, groupings are limited by segment. Liabilities for universal life insurance with secondary guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the contract period based on total expected assessments. The assumptions used in estimating the secondary guarantee liabilities are consistent with those used for amortizing deferred policy acquisition costs (“DAC”), and are reviewed and updated at least annually. The assumptions of investment performance and volatility for variable products are consistent with historical experience of the appropriate underlying equity indices, such as the Standard & Poor’s Global Ratings (“S&P”) 500 Index. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. In certain cases, the liability for an insurance product may be sufficient in the aggregate, but the pattern of future earnings may result in profits followed by losses. In these situations, the Company may establish an additional liability to offset the losses that are expected to be recognized in later years. Policyholder account balances relate to customer deposits on universal life insurance and fixed and variable deferred annuity contracts and are equal to the sum of deposits, plus interest credited, less charges and withdrawals. See “— Variable Annuity Guarantees” for additional information on the Company’s variable annuity guarantee features that are accounted for as insurance liabilities and recorded in future policy benefits, as well as the guarantee features that are accounted for at fair value as embedded derivatives and recorded in policyholder account balances. Recognition of Insurance Revenues and Deposits Premiums related to traditional life insurance and annuity contracts with life contingencies are recognized as revenues when due from policyholders. When premiums are due over a significantly shorter period than the period over which policyholder benefits are incurred, any excess profit is deferred and recognized into earnings in proportion to insurance in-force or, for annuities, the amount of expected future policy benefit payments. Deposits related to universal life insurance, fixed and variable deferred annuity contracts and investment-type products are credited to policyholder account balances. Revenues from such contracts consist of asset-based investment management fees, mortality charges, risk charges, policy administration fees and surrender charges. These fees are recognized when assessed to the contract holder and are included in universal life and investment-type product policy fees on the statements of operations. Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: • incremental direct costs of contract acquisition, such as commissions; • the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and • other essential direct costs that would not have been incurred had a policy not been acquired or renewed. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Value of business acquired ( “VOBA” ) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force as of the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. DAC and VOBA on traditional long-duration insurance contracts is amortized based on actual and expected future gross premiums while DAC and VOBA on fixed and variable universal life insurance and deferred annuities is amortized based on estimated gross profits. The recoverability of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. See Note 4 for additional information on DAC and VOBA amortization. The Company also has deferred sales inducements (“DSI”) and value of distribution agreements (“VODA”) which are included in other assets. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization of DSI is included in policyholder benefits and claims. VODA represents the present value of expected future profits associated with the expected future business derived from the distribution agreements acquired as part of a business combination. The VODA associated with past business combinations is amortized over useful lives ranging from 10 to 40 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a possible impairment exists, the Company reviews DSI and VODA to determine whether the assets are impaired. Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC when there is a gain at inception on the ceding entity and to other liabilities when there is a loss at inception. The net cost of reinsurance is recognized as a component of other expenses when there is a gain at inception and as policyholder benefits and claims when there is a loss and is subsequently amortized on a basis consistent with the methodology used for amortizing DAC related to the underlying reinsured contracts. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as ceded (assumed) premiums and ceded (assumed) premiums, reinsurance and other receivables (future policy benefits) are established. Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. If reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. Under certain reinsurance agreements, the Company withholds the funds rather than transferring the underlying investments and, as a result, records funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. Premiums, fees and policyholder benefits and claims include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to guaranteed minimum income benefits (“GMIBs”), a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives. These embedded derivatives are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. Certain previously assumed non-life contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”), guaranteed minimum accumulation benefits (“GMABs”) and GMIBs are also accounted for as embedded derivatives with changes in estimated fair value reported in net derivative gains (losses). Variable Annuity Guarantees The Company issues directly and previously assumed from a former affiliate through reinsurance certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit (the “Benefit Base”) less withdrawals. In some cases, the Benefit Base may be increased by additional deposits, bonus amounts, accruals or optional market value step-ups. Certain of the Company’s variable annuity guarantee features are accounted for as insurance liabilities and recorded in future policy benefits while others are accounted for at fair value as embedded derivatives and recorded in policyholder account balances. Generally, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. Alternatively, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of specific insurable event, or (ii) the policyholder to annuitize, that is, the policyholder can receive the guarantee on a net basis. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. Further, changes in assumptions, principally involving behavior, can result in a change of expected future cash outflows of a guarantee between portions accounted for as insurance liabilities and portions accounted for as embedded derivatives. Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits (“GMDBs”), the life contingent portion of the GMWBs and the portion of the GMIBs that require annuitization, as well as the life contingent portion of the expected annuitization when the policyholder is forced into an annuitization upon depletion of their account value. These insurance liabilities are accrued over the accumulation phase of the contract in proportion to actual and future expected policy assessments based on the level of guaranteed minimum benefits generated using multiple scenarios of separate account returns. The scenarios are based on best estimate assumptions consistent with those used to amortize DAC. When current estimates of future benefits exceed those previously projected or when current estimates of future assessments are lower than those previously projected, liabilities will increase, resulting in a current period charge to net income. The opposite result occurs when the current estimates of future benefits are lower than those previously projected or when current estimates of future assessments exceed those previously projected. At each reporting period, the actual amount of business remaining in-force is updated, which impacts expected future assessments and the projection of estimated future benefits resulting in a current period charge or increase to earnings. See Note 3 for additional details of guarantees accounted for as insurance liabilities. Guarantees accounted for as embedded derivatives in policyholder account balances include the non-life contingent portion of GMWBs, GMABs, and for GMIBs the non-life contingent portion of the expected annuitization when the policyholder is forced into an annuitization upon depletion of their account value, as well as the Guaranteed Principal Option. The estimated fair values of guarantees accounted for as embedded derivatives are determined based on the present value of projected future benefits minus the present value of projected future fees. At policy inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. In valuing the embedded derivative, the percentage of fees included in the fair value measurement is locked-in at inception. The projections of future benefits and future fees require capital market and actuarial assumptions including expectations concerning policyholder behavior. A risk neutral valuation methodology is used to project the cash flows from the guarantees under multiple capital market scenarios to determine an economic liability. The reported estimated fair value is then determined by taking the present value of these risk-free generated cash flows using a discount rate that incorporates a spread over the risk-free rate to reflect the Company’s nonperformance risk and adding a risk margin. For more information on the determination of estimated fair value. See Note 8 . Investments Net Investment Income and Net Investment Gains (Losses) Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein. Fixed Maturity and Equity Securities The Company’s fixed maturity and equity securities are classified as available-for-sale (“AFS”) and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) (“OCI”), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts and is based on the estimated economic life of the securities, which for residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”) considers the estimated timing and amount of prepayments of the underlying loans. The amortization of premium and accretion of discount of fixed maturity securities also takes into consideration call and maturity dates. Amortization of premium and accretion of discount on Structured Securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for Structured Securities are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive Structured Securities and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other Structured Securities, the effective yield is recalculated on a retrospective basis. The Company periodically evaluates fixed maturity and equity securities for impairment. The assessment of whether impairments have occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in estimated fair value, as well as an analysis of the gross unrealized losses by severity and/or age. See Note 6 “—Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities.” For fixed maturity securities in an unrealized loss position, an other-than-temporary impairment (“OTTI”) is recognized in earnings when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an OTTI in earnings (“credit loss”). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors (“noncredit loss”) is recorded in OCI. Mortgage Loans Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, and any deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. See Note 6 for information on impairments on mortgage loans. Also included in mortgage loans are commercial mortgage loans held by consolidated securitization entities (“CSEs”) for which the fair value option (“FVO”) was elected, which are stated at estimated fair value. Changes in estimated fair value are recognized in net investment gains (losses) for commercial mortgage loans held by CSEs. Policy Loans Policy loans are stated at unpaid principal balances. Interest income is recorded as earned using the contractual interest rate. Generally, accrued interest is capitalized on the policy’s anniversary date. Any unpaid principal and accrued interest is deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy. Real Estate Joint Ventures and Other Limited Partnership Interests The Company uses the equity method of accounting for investments when it has more than a minor ownership interest or more than a minor influence over the investee’s operations; while the cost method is used when the Company has virtually no influence over the investee’s operations. The Company generally recognizes its share of the equity method investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period; while distributions on cost method investments are recognized as earned or received. The Company routinely evaluates such investments for impairment. For equity method investees, the Company considers financial and other information provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, in determining whether an impairment has occurred. The Company considers its cost method investments for impairment when the carrying value of such investments exceeds the net asset value ( “NAV” ). The Company takes into consideration the severity and duration of this excess when determining whether the cost method investment is impaired. Short-term Investments Short-term investments include securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. Short-term investments also include investments in affiliated money market pools. Other Invested Assets Other invested assets consist principally of freestanding derivatives with positive estimated fair values which are described in “—Derivatives” below. Securities Lending Program Securities lending transactions, whereby blocks of securities are loaned to third parties, primarily brokerage firms and commercial banks, are treated as financing arrangements and the associated liability is recorded at the amount of cash received. Income and expenses associated with securities lending transactions are reported as investment income and investment expense, respectively, within net investment income. The Company obtains collateral at the inception of the loan, usually cash, in an amount generally equal to 102% of the estimated fair value of the securities loaned, and maintains it at a level greater than or equal to 100% for the duration of the loan. The Company monitors the estimated fair value of the securities loaned on a daily basis and additional collateral is obtained as necessary throughout the duration of the loan. Securities loaned under such transactions may be sold or repledged by the transferee. The Company is liable |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The Company is organized into three segments: Annuities; Life; and Run-off. In addition, the Company reports certain of its results of operations in Corporate & Other. Annuities The Annuities segment offers a variety of variable, fixed, index-linked and income annuities designed to address contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security. Life The Life segment offers insurance products and services, including term, whole, universal and variable life products designed to address policyholders’ needs for financial security and protected wealth transfer, which may be provided on a tax-advantaged basis. Run-off The Run-off segment consists of products no longer actively sold and which are separately managed, including structured settlements, pension risk transfer contracts, certain company-owned life insurance policies, bank-owned life insurance policies, funding agreements and universal life with secondary guarantees (“ULSG”). Corporate & Other Corporate & Other contains the excess capital not allocated to the segments and interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes the elimination of intersegment amounts, long term care and workers compensation business reinsured through 100% quota share reinsurance agreements, and term life insurance sold direct to consumers, which is no longer being offered for new sales. Financial Measures and Segment Accounting Policies Adjusted earnings is a financial measure used by management to evaluate performance, allocate resources and facilitate comparisons to industry results. Consistent with GAAP guidance for segment reporting, adjusted earnings is also used to measure segment performance. The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by the investor community. Adjusted earnings should not be viewed as a substitute for net income (loss). Adjusted earnings, which may be positive or negative, focuses on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends, as well as businesses that have been or will be sold or exited by the Company, referred to as divested businesses. The following are the significant items excluded from total revenues in calculating adjusted earnings: • Net investment gains (losses); • Net derivative gains (losses) except earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment; and • Amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity GMIB fees (“GMIB Fees”). The following are the significant items excluded from total expenses in calculating adjusted earnings: • Amounts associated with benefits and hedging costs related to GMIBs (“GMIB Costs”); • Amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”); and • Amortization of DAC and VOBA related to: (i) net investment gains (losses), (ii) net derivative gains (losses), (iii) GMIB Fees and GMIB Costs and (iv) Market Value Adjustments. The tax impact of the adjustments mentioned above are calculated net of the U.S. statutory tax rate, which could differ from the Company’s effective tax rate. Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the years ended December 31, 2017 , 2016 and 2015 and at December 31, 2017 and 2016 . The segment accounting policies are the same as those used to prepare the Company’s consolidated and combined financial statements, except for the adjustments to calculate adjusted earnings described above. In addition, segment accounting policies include the historical method of capital allocation described below. The internal capital model is a risk capital model that reflects management’s judgment and view of required capital to represent the measurement of the risk profile of the business, to meet the Company’s long term promises to clients, to service long-term obligations and to support the credit ratings of the Company. It accounts for the unique and specific nature of the risks inherent in the Company’s business. Management is responsible for the ongoing production and enhancement of the internal capital model and reviewed its approach periodically to ensure that it remained consistent with emerging industry practice standards. Beginning in 2018, the Company will allocate equity to the segments based on its new statutory capital oriented internal capital allocation model, which considers capital requirements and aligns with emerging standards and consistent risk principles. In 2017 and prior years, segment net investment income was credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated and combined net investment income, or net income (loss). Going forward, investment portfolios will be funded to support both liabilities and allocated surplus of each segment, requiring no allocated equity adjustments to net investment income. The impact to segment results is not expected to be material. Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee time incurred by each segment; and (iii) cost estimates included in the Company’s product pricing. Operating Results Year Ended December 31, 2017 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings $ 1,386 $ 7 $ 147 $ 57 $ 1,597 Provision for income tax expense (benefit) 369 (9 ) 43 274 677 Adjusted earnings $ 1,017 $ 16 $ 104 $ (217 ) 920 Adjustments for: Net investment gains (losses) (28 ) Net derivative gains (losses) (1,620 ) Other adjustments to net income (564 ) Provision for income tax (expense) benefit 914 Net income (loss) $ (378 ) Interest revenue $ 1,277 $ 342 $ 1,399 $ 192 Interest expense $ — $ — $ 23 $ 132 Balance at December 31, 2017 Annuities Life Run-off Corporate Total (In millions) Total assets $ 154,667 $ 18,049 $ 36,824 $ 14,652 $ 224,192 Separate account assets $ 109,888 $ 5,250 $ 3,119 $ — $ 118,257 Separate account liabilities $ 109,888 $ 5,250 $ 3,119 $ — $ 118,257 Operating Results Year Ended December 31, 2016 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings $ 1,636 $ 26 $ (834 ) $ 39 $ 867 Provision for income tax expense (benefit) 484 — (295 ) (8 ) 181 Adjusted earnings $ 1,152 $ 26 $ (539 ) $ 47 686 Adjustments for: Net investment gains (losses) (78 ) Net derivative gains (losses) (5,851 ) Other adjustments to net income 357 Provision for income tax (expense) benefit 1,947 Net income (loss) $ (2,939 ) Interest revenue $ 1,451 $ 371 $ 1,441 $ 239 Interest expense $ — $ — $ 61 $ 111 Balance at December 31, 2016 Annuities Life Run-off Corporate & Other Total (In millions) Total assets $ 152,146 $ 17,150 $ 40,007 $ 12,627 $ 221,930 Separate account assets $ 104,855 $ 4,704 $ 3,484 $ — $ 113,043 Separate account liabilities $ 104,855 $ 4,704 $ 3,484 $ — $ 113,043 Operating Results Year Ended December 31, 2015 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings $ 1,452 $ 21 $ 717 $ (77 ) $ 2,113 Provision for income tax expense (benefit) 363 1 249 (41 ) 572 Adjusted earnings $ 1,089 $ 20 $ 468 $ (36 ) 1,541 Adjustments for: Net investment gains (losses) 7 Net derivative gains (losses) (326 ) Other adjustments to net income (332 ) Provision for income tax (expense) benefit 229 Net income (loss) $ 1,119 Interest revenue $ 1,281 $ 371 $ 1,551 $ 125 Interest expense $ — $ — $ 60 $ 101 The following table presents total revenues with respect to the Company’s segments, as well as Corporate & Other: Years Ended December 31, 2017 2016 2015 (In millions) Annuities $ 4,370 $ 4,958 $ 5,229 Life 1,315 1,249 1,137 Run-off 2,147 2,343 2,367 Corporate & Other 510 401 415 Adjustments (1,500 ) (5,933 ) (257 ) Total $ 6,842 $ 3,018 $ 8,891 The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company’s segments, as well as Corporate & Other: Years Ended December 31, 2017 2016 2015 (In millions) Annuity products $ 3,363 $ 3,938 $ 4,249 Life insurance products 1,822 1,745 1,726 Other products 227 57 136 Total $ 5,412 $ 5,740 $ 6,111 Substantially all of the Company’s premiums, universal life and investment-type product policy fees and other revenues originated in the U.S. Revenues derived from any customer did not exceed 10% of premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2017 , 2016 and 2015 . |
Insurance
Insurance | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Insurance | 3. Insurance Insurance Liabilities Insurance liabilities, including affiliated insurance liabilities on reinsurance assumed and ceded, are comprised of future policy benefits, policyholder account balances and other policy-related balances. Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at: December 31, 2017 2016 (In millions) Annuities $ 34,281 $ 33,155 Life 8,542 8,539 Run-off 27,027 24,819 Corporate & Other 7,534 7,430 Total $ 77,384 $ 73,943 See Note 5 for discussion of affiliated reinsurance liabilities included in the table above. Future policy benefits are measured as follows: Product Type: Measurement Assumptions: Participating life insurance Aggregate of (i) net level premium reserves for death and endowment policy benefits (calculated based upon the non-forfeiture interest rate, ranging from 4% to 5%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends. Nonparticipating life insurance Aggregate of the present value of expected future benefit payments and related expenses less the present value of expected future net premiums. Assumptions as to mortality and persistency are based upon the Company’s experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 3% to 9%. I ndividual and group fixed annuities after annuitization Present value of expected future payments. Interest rate assumptions used in establishing such liabilities range from 2% to 8%. Long-term care and disability insurance active life reserves The net level premium method and assumptions as to future morbidity, withdrawals and interest, which provide a margin for adverse deviation. Interest rate assumptions used in establishing such liabilities range from 4% to 7%. Long-term care and disability insurance claim reserves Present value of benefits method and experience assumptions as to claim terminations, expenses and interest. Interest rate assumptions used in establishing such liabilities range from 3% to 7%. Participating business represented 3% of the Company’s life insurance in-force at both December 31, 2017 and 2016. Participating policies represented 38% , 42% and 39% of gross traditional life insurance premiums for the years ended December 31, 2017 , 2016 and 2015 , respectively. Policyholder account balances are equal to: (i) policy account values, which consist of an accumulation of gross premium payments; (ii) credited interest, ranging from 0% to 7% , less expenses, mortality charges and withdrawals; and (iii) fair value adjustments relating to business combinations. Guarantees The Company issues variable annuity products with guaranteed minimum benefits. GMABs, the non-life-contingent portion of GMWBs and the portion of certain GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 7 . Guarantees accounted for as insurance liabilities include: Guarantee: Measurement Assumptions: GMDBs • A return of purchase payment upon death even if the account value is reduced to zero. • Present value of expected death benefits in excess of the projected account balance recognizing the excess ratably over the accumulation period based on the present value of total expected assessments. • An enhanced death benefit may be available for an additional fee. • Assumptions are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. • Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the S&P 500 Index. • Benefit assumptions are based on the average benefits payable over a range of scenarios. GMIBs • After a specified period of time determined at the time of issuance of the variable annuity contract, a minimum accumulation of purchase payments, even if the account value is reduced to zero, that can be annuitized to receive a monthly income stream that is not less than a specified amount. • Present value of expected income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on present value of total expected assessments. • Certain contracts also provide for a guaranteed lump sum return of purchase premium in lieu of the annuitization benefit. • Assumptions are consistent with those used for estimating GMDB liabilities. • Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contract holder. GMWBs • A return of purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that cumulative withdrawals in a contract year do not exceed a certain limit. • Expected value of the life contingent payments and expected assessments using assumptions consistent with those used for estimating the GMDB liabilities. • Certain contracts include guaranteed withdrawals that are life contingent. The Company also issues universal and variable life contracts where the Company contractually guarantees to the contract holder a secondary guarantee. Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity and universal and variable life contracts was as follows: Annuity Contracts Universal and Variable GMDBs GMIBs Secondary Total (In millions) Direct Balance at January 1, 2015 $ 630 $ 1,649 $ 2,374 $ 4,653 Incurred guaranteed benefits (1) 252 355 413 1,020 Paid guaranteed benefits (37 ) — — (37 ) Balance at December 31, 2015 845 2,004 2,787 5,636 Incurred guaranteed benefits 339 331 753 1,423 Paid guaranteed benefits (60 ) — — (60 ) Balance at December 31, 2016 1,124 2,335 3,540 6,999 Incurred guaranteed benefits 373 374 692 1,439 Paid guaranteed benefits (58 ) — — (58 ) Balance at December 31, 2017 $ 1,439 $ 2,709 $ 4,232 $ 8,380 Net Ceded/(Assumed) Balance at January 1, 2015 $ (10 ) $ 6 $ 846 $ 842 Incurred guaranteed benefits (1) 24 3 161 188 Paid guaranteed benefits (34 ) 1 — (33 ) Balance at December 31, 2015 (20 ) 10 1,007 997 Incurred guaranteed benefits 48 10 98 156 Paid guaranteed benefits (55 ) — — (55 ) Balance at December 31, 2016 (27 ) 20 1,105 1,098 Incurred guaranteed benefits 101 (20 ) (160 ) (79 ) Paid guaranteed benefits (56 ) — — (56 ) Balance at December 31, 2017 $ 18 $ — $ 945 $ 963 Net Balance at January 1, 2015 $ 640 $ 1,643 $ 1,528 $ 3,811 Incurred guaranteed benefits (1) 228 352 252 832 Paid guaranteed benefits (3 ) (1 ) — (4 ) Balance at December 31, 2015 865 1,994 1,780 4,639 Incurred guaranteed benefits 291 321 655 1,267 Paid guaranteed benefits (5 ) — — (5 ) Balance at December 31, 2016 1,151 2,315 2,435 5,901 Incurred guaranteed benefits 272 394 852 1,518 Paid guaranteed benefits (2 ) — — (2 ) Balance at December 31, 2017 $ 1,421 $ 2,709 $ 3,287 $ 7,417 (1) See Note 5. Information regarding the Company’s guarantee exposure was as follows at: December 31, 2017 2016 In the Event of Death At Annuitization In the Event of Death At Annuitization (Dollars in millions) Annuity Contracts (1), (2) Variable Annuity Guarantees Total account value (3) $ 115,147 $ 67,110 $ 111,719 $ 64,503 Separate account value $ 109,792 $ 65,782 $ 106,759 $ 63,025 Net amount at risk $ 5,261 (4) $ 2,642 (5) $ 6,837 (4) $ 3,313 (5) Average attained age of contract holders 68 years 68 years 67 years 67 years December 31, 2017 2016 Secondary Guarantees (Dollars in millions) Universal Life Contracts Total account value (3) $ 6,244 $ 6,216 Net amount at risk (6) $ 75,304 $ 76,216 Average attained age of policyholders 64 years 63 years Variable Life Contracts Total account value (3) $ 3,379 $ 3,110 Net amount at risk (6) $ 24,546 $ 26,419 Average attained age of policyholders 49 years 48 years __________________ (1) The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the net amount at risk presented reflects the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 5 for a discussion of guaranteed minimum benefits which have been reinsured. (3) Includes the contract holder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contract holders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contract holders have achieved. (6) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. Account balances of contracts with guarantees were invested in separate account asset classes as follows at: December 31, 2017 2016 (In millions) Fund Groupings: Balanced $ 56,979 $ 54,371 Equity 47,571 44,750 Bond 6,662 6,686 Money Market 657 761 Total $ 111,869 $ 106,568 Obligations Under Funding Agreements The Company has issued fixed and floating rate funding agreements, which are denominated in either U.S. dollars or foreign currencies, to certain special purpose entities that have issued either debt securities or commercial paper for which payment of interest and principal is secured by such funding agreements. During the years ended December 31, 2017 , 2016 and 2015 , the Company issued $0 , $1.4 billion and $13.0 billion , respectively, and repaid $6 million , $3.4 billion and $14.4 billion , respectively, of such funding agreements. At December 31, 2017 and 2016 , liabilities for funding agreements outstanding, which are included in policyholder account balances, were $141 million and $127 million , respectively. Brighthouse Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh and holds common stock in certain regional banks in the FHLB system. Holdings of FHLB common stock carried at cost at December 31, 2017 and 2016 were $71 million and $75 million , respectively. Brighthouse Life Insurance Company has also entered into funding agreements with FHLBs. The liabilities for these funding agreements are included in policyholder account balances. Information related to FHLB funding agreements was as follows at: December 31, 2017 2016 (In millions) Liabilities $ 595 $ 645 Funding agreements are issued to FHLBs in exchange for cash. The FHLBs have been granted liens on certain assets, some of which are in their custody, including RMBS, to collateralize the Company’s obligations under the funding agreements. The Company is permitted to withdraw any portion of the collateral in the custody of the FHLBs as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by the Company, the FHLBs recovery on the collateral is limited to the amount of the Company’s liabilities to the FHLBs. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
Intangible Assets and Liabilities, excluding Goodwill [Text Block] | The estimated future amortization expense to be reported in other expenses for the next five years is as follows: VOBA VODA (In millions) 2018 $ 98 $ 14 2019 $ 84 $ 13 2020 $ 62 $ 12 2021 $ 53 $ 10 2022 $ 46 $ 9 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | 5. Reinsurance The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by former affiliated and unaffiliated companies. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth. Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed in Note 6 . Annuities and Life For annuities, the Company reinsures portions of the living and death benefit guarantees issued in connection with certain variable annuities to unaffiliated reinsurers. Under these reinsurance agreements, the Company pays a reinsurance premium generally based on fees associated with the guarantees collected from policyholders, and receives reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations. The value of embedded derivatives on the ceded risk is determined using a methodology consistent with the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. The Company also reinsures 100% of certain variable annuity risks to a former affiliate and assumed 100% of the living and death benefit guarantees issued in connection with certain variable annuities issued by a former affiliate. For its life products, the Company has historically reinsured the mortality risk primarily on an excess of retention basis or on a quota share basis. The Company currently reinsures 90% of the mortality risk in excess of $2 million for most products. In addition to reinsuring mortality risk as described above, the Company reinsures other risks, as well as specific coverages. Placement of reinsurance is done primarily on an automatic basis and also on a facultative basis for risks with specified characteristics. On a case by case basis, the Company may retain up to $20 million per life and reinsure 100% of amounts in excess of the amount the Company retains. The Company also reinsures portions of the risk associated with certain whole life policies to a former affiliate and assumes certain term life policies and universal life policies with secondary death benefit guarantees issued by a former affiliate. The Company evaluates its reinsurance programs routinely and may increase or decrease its retention at any time. Corporate & Other The Company reinsures, through 100% quota share reinsurance agreements certain run-off long-term care and workers’ compensation business written by the Company. At December 31, 2017, the Company had $6.5 billion of reinsurance recoverables associated with our reinsured long-term care business. The reinsurer has established trust accounts for our benefit to secure their obligations under the reinsurance agreements. Catastrophe Coverage The Company has exposure to catastrophes which could contribute to significant fluctuations in the Company’s results of operations. The Company uses excess of retention and quota share reinsurance agreements to provide greater diversification of risk and minimize exposure to larger risks Reinsurance Recoverables The Company reinsures its business through a diversified group of reinsurers. The Company analyzes recent trends in arbitration and litigation outcomes in disputes, if any, with its reinsurers. The Company monitors ratings and evaluates the financial strength of its reinsurers by analyzing their financial statements. In addition, the reinsurance recoverable balance due from each reinsurer is evaluated as part of the overall monitoring process. Recoverability of reinsurance recoverable balances is evaluated based on these analyses. The Company generally secures large reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. These reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, which at both December 31, 2017 and 2016 , were not significant. The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. The Company had $2.6 billion and $2.7 billion of unsecured reinsurance recoverable balances with third-party reinsurers at December 31, 2017 and 2016 , respectively. At December 31, 2017 , the Company had $9.3 billion of net ceded reinsurance recoverables with third-parties. Of this total, $8.0 billion , or 86% , were with the Company’s five largest ceded reinsurers, including $1.4 billion of net ceded reinsurance recoverables which were unsecured. At December 31, 2016 , the Company had $9.3 billion of net ceded reinsurance recoverables with third-parties. Of this total, $7.8 billion , or 84% , were with the Company’s five largest ceded reinsurers, including $1.5 billion of net ceded reinsurance recoverables which were unsecured. The amounts on the consolidated and combined statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Premiums Direct premiums $ 1,795 $ 2,296 $ 2,472 Reinsurance assumed 11 79 297 Reinsurance ceded (943 ) (1,153 ) (1,090 ) Net premiums $ 863 $ 1,222 $ 1,679 Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees $ 4,430 $ 4,300 $ 4,472 Reinsurance assumed 96 119 132 Reinsurance ceded (628 ) (637 ) (594 ) Net universal life and investment-type product policy fees $ 3,898 $ 3,782 $ 4,010 Other revenues Direct other revenues $ 576 $ 326 $ 292 Reinsurance assumed 28 87 — Reinsurance ceded 47 323 130 Net other revenues $ 651 $ 736 $ 422 Policyholder benefits and claims Direct policyholder benefits and claims $ 5,228 $ 6,351 $ 5,208 Reinsurance assumed 31 123 298 Reinsurance ceded (1,623 ) (2,571 ) (2,237 ) Net policyholder benefits and claims $ 3,636 $ 3,903 $ 3,269 The amounts on the consolidated and combined balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at: December 31, 2017 2016 Direct Assumed Ceded Total Balance Sheet Direct Assumed Ceded Total Balance Sheet (In millions) Assets Premiums, reinsurance and other receivables $ 647 $ 27 $ 12,851 $ 13,525 $ 1,152 $ 21 $ 13,474 $ 14,647 Liabilities Policyholder account balances $ 37,510 $ 273 $ — $ 37,783 $ 37,066 $ 460 $ — $ 37,526 Other policy-related balances $ 1,311 $ 1,674 $ — $ 2,985 $ 1,368 $ 1,677 $ — $ 3,045 Other liabilities $ 4,475 $ 32 $ 756 $ 5,263 $ 4,818 $ 12 $ 1,099 $ 5,929 Effective December 1, 2016, the Company terminated two agreements with an third-party reinsurer which covered 90% of the liabilities on certain participating whole life insurance policies issued between April 1, 2000 and December 31, 2001 by MLIC. This termination resulted in a decrease in other invested assets of $713 million , a decrease in DAC and VOBA of $95 million , a decrease in future policy benefits of $654 million , and a decrease in other liabilities of $43 million . The Company recognized a loss of approximately $72 million , net of income tax, as a result of this transaction. Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on reinsurance were $1.6 billion and $2.0 billion at December 31, 2017 and 2016 , respectively. The deposit liabilities on reinsurance were less than $1 million and $1 million at December 31, 2017 and 2016 , respectively. Related Party Reinsurance Transactions The Company has reinsurance agreements with certain MetLife, Inc. subsidiaries, including MLIC, General American Life Insurance Company, MetLife Europe d.a.c., MetLife Reinsurance Company of Vermont (“MRV”), Delaware American Life Insurance Company and American Life Insurance Company, all of which were related parties at December 31, 2017 . Information regarding the significant effects of reinsurance with former MetLife affiliates included on the consolidated and combined statements of operations was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Premiums Reinsurance assumed $ 11 $ 34 $ 227 Reinsurance ceded (537 ) (766 ) (687 ) Net premiums $ (526 ) $ (732 ) $ (460 ) Universal life and investment-type product policy fees Reinsurance assumed $ 96 $ 119 $ 132 Reinsurance ceded (14 ) (60 ) (59 ) Net universal life and investment-type product policy fees $ 82 $ 59 $ 73 Other revenues Reinsurance assumed $ 27 $ 56 $ — Reinsurance ceded 44 320 130 Net other revenues $ 71 $ 376 $ 130 Policyholder benefits and claims Reinsurance assumed $ 30 $ 86 $ 248 Reinsurance ceded (420 ) (757 ) (678 ) Net policyholder benefits and claims $ (390 ) $ (671 ) $ (430 ) Information regarding the significant effects of reinsurance with former MetLife affiliates included on the consolidated and combined balance sheets was as follows at: December 31, 2017 2016 Assumed Ceded Assumed Ceded (In millions) Assets Premiums, reinsurance and other receivables $ 18 $ 3,410 $ 21 $ 4,020 Liabilities Policyholder account balances $ — $ — $ 460 $ — Other policy-related balances $ 1,674 $ — $ 1,677 $ — Other liabilities $ 30 $ 401 $ 10 $ 715 The Company previously assumed risks from MLIC related to guaranteed minimum benefits written directly by MLIC. The assumed reinsurance agreement contained embedded derivatives and changes in the estimated fair value are also included within net derivative gains (losses). The embedded derivatives associated with the agreement are included within policyholder account balances and were $0 and $460 million at December 31, 2017 and 2016 , respectively. Net derivative gains (losses) associated with the embedded derivatives were $110 million , ($27) million and ($34) million for the years ended December 31, 2017 , 2016 and 2015 , respectively. I n January 2017, MLIC recaptured these risks being reinsured by the Company. This recapture resulted in a decrease in investments and cash and cash equivalents of $568 million , a decrease in future policy benefits of $106 million , and a decrease in policyholder account balances of $460 million . In June 2017, there was an adjustment to the recapture amounts of this transaction, which resulted in an increase in premiums, reinsurance and other receivables of $140 million at June 30, 2017. The Company recognized a gain of $89 million , net of income tax, as a result of this transaction. The Company cedes risks to MLIC related to guaranteed minimum benefits written directly by the Company. The ceded reinsurance agreement contains embedded derivatives and changes in the estimated fair value are also included within net derivative gains (losses). The embedded derivatives associated with the cessions are included within premiums, reinsurance and other receivables and were $2 million and $390 million at December 31, 2017 and 2016 , respectively. Net derivative gains (losses) associated with the embedded derivatives were ($263) million , $62 million and $100 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In May 2017, the Company recaptured from MLIC risks related to multiple life products ceded under yearly renewable term and coinsurance agreements. This recapture resulted in an increase in cash and cash equivalents of $214 million and a decrease in premiums, reinsurance and other receivables of $189 million . The Company recognized a gain of $17 million , net of income tax, as a result of reinsurance termination. In January 2017, the Company executed a novation and assignment of reinsurance agreements under which MLIC reinsured certain variable annuities, including guaranteed minimum benefits, issued by BHNY and NELICO. As a result of the novation and assignment, the reinsurance agreements are now between Brighthouse Life Insurance Company, BHNY and NELICO. The transaction was treated as a termination of the existing reinsurance agreements with recognition of a loss and new reinsurance agreements with no recognition of a gain or loss. The transaction resulted in an increase in other liabilities of $274 million . The Company recognized a loss of $178 million , net of income tax, as a result of this transaction. In December 2016, the Company recaptured level premium term business previously reinsured to MRV. This recapture resulted in a decrease in cash and cash equivalents of $27 million , a decrease in premiums, reinsurance and other receivables of $94 million and a decrease in other liabilities of $158 million . The Company recognized a gain of $24 million , net of income tax, as a result of this recapture. In November 2016, the Company recaptured certain single premium deferred annuity contracts previously reinsured to MLIC. This recapture resulted in an increase in investments and cash and cash equivalents of $933 million and increase in DAC of $23 million , offset by a decrease in premiums, reinsurance and other receivables of $923 million . The Company recognized a gain of $22 million , net of income tax, as a result of this recapture. In April 2016, the Company recaptured risks related to certain single premium deferred annuity contracts previously reinsured to MLIC. As a result of this recapture, the significant effects to the Company were an increase in investments and cash and cash equivalents of $4.3 billion and an increase in DAC of $87 million , offset by a decrease in premiums, reinsurance and other receivables of $4.0 billion . The Company recognized a gain of $246 million , net of income tax, as a result of this recapture. The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. The Company had $2.6 billion and $3.2 billion of unsecured related party reinsurance recoverable balances at December 31, 2017 and 2016 , respectively. Related party reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on related party reinsurance were $1.4 billion and $1.7 billion at December 31, 2017 and 2016 , respectively. There were no deposit liabilities on related party reinsurance at both December 31, 2017 and 2016 . |
Investments Investments
Investments Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 6. Investments See Note 8 for information about the fair value hierarchy for investments and the related valuation methodologies. Fixed Maturity and Equity Securities AFS Fixed Maturity and Equity Securities AFS by Sector The following table presents the fixed maturity and equity securities AFS by sector at: December 31, 2017 December 31, 2016 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Temporary Losses OTTI Gains Temporary Losses OTTI (In millions) Fixed maturity securities: (2) U.S. corporate $ 21,190 $ 1,859 $ 92 $ — $ 22,957 $ 21,278 $ 1,324 $ 291 $ — $ 22,311 U.S. government and agency 14,548 1,862 118 — 16,292 12,032 1,294 236 — 13,090 RMBS 7,749 285 60 (3 ) 7,977 7,961 206 144 — 8,023 Foreign corporate 6,703 386 66 — 7,023 6,343 230 180 — 6,393 State and political subdivision 3,635 553 6 1 4,181 3,590 393 38 — 3,945 CMBS 3,386 53 17 (1 ) 3,423 3,799 44 32 (1 ) 3,812 ABS 1,810 21 2 — 1,829 2,654 12 14 — 2,652 Foreign government 1,152 161 4 — 1,309 1,058 116 12 — 1,162 Total fixed maturity securities $ 60,173 $ 5,180 $ 365 $ (3 ) $ 64,991 $ 58,715 $ 3,619 $ 947 $ (1 ) $ 61,388 Equity securities (2) $ 212 $ 21 $ 1 $ — $ 232 $ 280 $ 29 $ 9 $ — $ 300 __________________ (1) Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).” (2) Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are Structured Securities. The Company held non-income producing fixed maturity securities with an estimated fair value of $4 million and $5 million with unrealized gains (losses) of ($2) million and less than $1 million at December 31, 2017 and 2016 , respectively. Maturities of Fixed Maturity Securities The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2017 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In millions) Amortized cost $ 1,871 $ 10,548 $ 11,478 $ 23,331 $ 12,945 $ 60,173 Estimated fair value $ 1,876 $ 10,890 $ 11,816 $ 27,180 $ 13,229 $ 64,991 Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at: December 31, 2017 December 31, 2016 Less than 12 Months Equal to or Greater than 12 Months Less than 12 Months Equal to or Greater than 12 Months Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (Dollars in millions) Fixed maturity securities: U.S. corporate $ 1,783 $ 21 $ 1,451 $ 71 $ 4,676 $ 189 $ 745 $ 102 U.S. government and agency 4,962 38 1,573 80 4,396 236 — — RMBS 2,367 14 1,332 43 3,494 112 818 32 Foreign corporate 637 8 603 58 1,466 66 633 114 State and political subdivision 170 3 106 4 889 35 29 3 CMBS 619 6 335 10 1,572 27 171 4 ABS 170 — 74 2 478 6 461 8 Foreign government 155 2 69 2 273 11 6 1 Total fixed maturity securities $ 10,863 $ 92 $ 5,543 $ 270 $ 17,244 $ 682 $ 2,863 $ 264 Equity securities $ 17 $ — $ 10 $ 1 $ 57 $ 2 $ 40 $ 7 Total number of securities in an unrealized loss position 922 642 1,741 483 Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities Evaluation and Measurement Methodologies Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the estimated fair value has been below cost or amortized cost; (ii) the potential for impairments when the issuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential for impairments in certain economically depressed geographic locations; (v) the potential for impairments where the issuer, series of issuers or industry has suffered a catastrophic loss or has exhausted natural resources; (vi) with respect to fixed maturity securities, whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers; (vii) with respect to Structured Securities, changes in forecasted cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security; (viii) the potential for impairments due to weakening of foreign currencies on non-functional currency denominated fixed maturity securities that are near maturity; and (ix) other subjective factors, including concentrations and information obtained from regulators and rating agencies. Current Period Evaluation Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company concluded that these securities were not other-than-temporarily impaired at December 31, 2017 . G ross unrealized losses on fixed maturity securities decreased $584 million during the year ended December 31, 2017 to $362 million . The decrease in gross unrealized losses for the year ended December 31, 2017 , was primarily attributable to narrowing credit spreads and decreasing longer-term interest rates. At December 31, 2017 , $7 million of the total $362 million of gross unrealized losses were from 10 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater, of which $3 million were from investment grade fixed maturity securities. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: December 31, 2017 2016 Carrying Value % of Total Carrying Value % of Total (Dollars in millions) Mortgage loans: Commercial $ 7,260 67.5 % $ 6,523 69.6 % Agricultural 2,276 21.2 1,892 20.2 Residential 1,138 10.6 867 9.2 Subtotal (1) 10,674 99.3 9,282 99.0 Valuation allowances (2) (47 ) (0.4 ) (40 ) (0.4 ) Subtotal mortgage loans, net 10,627 98.9 9,242 98.6 Commercial mortgage loans held by CSEs — FVO 115 1.1 136 1.4 Total mortgage loans, net $ 10,742 100.0 % $ 9,378 100.0 % __________________ (1) The Company purchases unaffiliated mortgage loans under a master participation agreement from a former affiliate, simultaneously with the former affiliate’s origination or acquisition of mortgage loans. The aggregate amount of unaffiliated mortgage loan participation interests purchased by the Company from the former affiliate during the years ended December 31, 2017 , 2016 and 2015 were $1.2 billion , $2.4 billion and $2.0 billion , respectively. In connection with the mortgage loan participations, the former affiliate collected mortgage loan principal and interest payments on the Company’s behalf and the former affiliate remitted such payments to the Company in the amount of $946 million , $1.6 billion and $1.0 billion during the years ended December 31, 2017 , 2016 and 2015 , respectively. Purchases of mortgage loans from third parties were $420 million and $619 million for the years ended December 31, 2017 and 2016 , respectively, and were primarily comprised of residential mortgage loans. (2) The valuation allowances were primarily from collective evaluation (non-specific loan related). See “— Variable Interest Entities” for discussion of CSEs. Information on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on residential — FVO and commercial mortgage loans held by CSEs — FVO is presented in Note 8 . The Company elects the FVO for certain mortgage loans and related long-term debt that are managed on a total return basis. Valuation Allowance Methodology Mortgage loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the loan agreement. Specific valuation allowances are established using the same methodology for all three portfolio segments as the excess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate, (ii) the estimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan’s observable market price. A common evaluation framework is used for establishing non-specific valuation allowances for all loan portfolio segments; however, a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfolio segment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific risk has not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specific factors, including the Company’s experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. Credit Quality of Commercial Mortgage Loans The credit quality of commercial mortgage loans was as follows at: Recorded Investment Estimated Fair Value % of Total Debt Service Coverage Ratios Total % of Total > 1.20x 1.00x - 1.20x < 1.00x (Dollars in millions) December 31, 2017 Loan-to-value ratios: Less than 65% $ 6,194 $ 293 $ 33 $ 6,520 89.8 % $ 6,681 90.0 % 65% to 75% 642 — 14 656 9.0 658 8.9 76% to 80% 42 — 9 51 0.7 50 0.7 Greater than 80% — 9 24 33 0.5 30 0.4 Total $ 6,878 $ 302 $ 80 $ 7,260 100.0 % $ 7,419 100.0 % December 31, 2016 Loan-to-value ratios: Less than 65% $ 5,744 $ 230 $ 167 $ 6,141 94.1 % $ 6,222 94.3 % 65% to 75% 291 — 19 310 4.8 303 4.6 76% to 80% 34 — — 34 0.5 33 0.5 Greater than 80% 24 14 — 38 0.6 37 0.6 Total $ 6,093 $ 244 $ 186 $ 6,523 100.0 % $ 6,595 100.0 % Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans was as follows at: December 31, 2017 2016 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 2,113 92.8 % $ 1,849 97.7 % 65% to 75% 163 7.2 43 2.3 Total $ 2,276 100.0 % $ 1,892 100.0 % The estimated fair value of agricultural mortgage loans was $2.3 billion and $1.9 billion at December 31, 2017 and 2016 , respectively. Credit Quality of Residential Mortgage Loans The credit quality of residential mortgage loans was as follows at: December 31, 2017 2016 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 1,106 97.2 % $ 856 98.7 % Nonperforming 32 2.8 11 1.3 Total $ 1,138 100.0 % $ 867 100.0 % The estimated fair value of residential mortgage loans was $1.2 billion and $867 million at December 31, 2017 and 2016 , respectively. Past Due, Nonaccrual and Modified Mortgage Loans The Company has a high quality, well performing mortgage loan portfolio, with over 99% of all mortgage loans classified as performing at both December 31, 2017 and 2016 . The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. The Company had no commercial or agricultural mortgage loans past due and no commercial or agricultural mortgage loans in nonaccrual status at either December 31, 2017 or 2016 . The recorded investment of residential mortgage loans past due and in nonaccrual status was $32 million and $11 million at December 31, 2017 and 2016 , respectively. During the years ended December 31, 2017 and 2016 , the Company did not have a significant amount of mortgage loans modified in a troubled debt restructuring. Other Invested Assets Freestanding derivatives with positive estimated fair values and loans to affiliates comprise over 80% of other invested assets. See Note 7 for information about freestanding derivatives with positive estimated fair values and see “— Related Party Investment Transactions” for information regarding loans to affiliates. Other invested assets also includes tax credit and renewable energy partnerships and leveraged leases. Leveraged Leases Investment in leveraged leases consisted of the following at: December 31, 2017 2016 (In millions) Rental receivables, net $ 87 $ 87 Estimated residual values 14 14 Subtotal 101 101 Unearned income (35 ) (32 ) Investment in leases, net of non-recourse debt $ 66 $ 69 Rental receivables are generally due in periodic installments. The payment periods for leveraged leases generally range from one to 15 years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. The Company generally defines nonperforming rental receivables as those that are 90 days or more past due. At December 31, 2017 and 2016 , all leverage leases were performing. The deferred income tax liability related to leveraged leases was $43 million and $74 million at December 31, 2017 and 2016 , respectively. Cash Equivalents The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $1.4 billion and $4.8 billion at December 31, 2017 and 2016 , respectively. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity and equity securities AFS and the effect on DAC, VOBA, DSI and future policy benefits, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI. The components of net unrealized investment gains (losses), included in AOCI, were as follows: Years Ended December 31, 2017 2016 2015 (In millions) Fixed maturity securities $ 4,806 $ 2,663 $ 2,324 Fixed maturity securities with noncredit OTTI losses in AOCI 2 1 (23 ) Total fixed maturity securities 4,808 2,664 2,301 Equity securities 39 32 54 Derivatives 239 414 388 Short-term investments — (42 ) — Other (8 ) (26 ) 5 Subtotal 5,078 3,042 2,748 Amounts allocated from: Future policy benefits (2,626 ) (802 ) (126 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI (2 ) (2 ) (1 ) DAC, VOBA and DSI (265 ) (214 ) (202 ) Subtotal (2,893 ) (1,018 ) (329 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI — — 9 Deferred income tax benefit (expense) (459 ) (712 ) (855 ) Net unrealized investment gains (losses) $ 1,726 $ 1,312 $ 1,573 The changes in net unrealized investment gains (losses) were as follows: Years Ended December 31, 2017 2016 2015 (In millions) Balance at January 1, $ 1,312 $ 1,573 $ 2,745 Fixed maturity securities on which noncredit OTTI losses have been recognized 1 24 15 Unrealized investment gains (losses) during the year 2,035 270 (2,513 ) Unrealized investment gains (losses) relating to: Future policy benefits (1,824 ) (676 ) 487 DAC and VOBA related to noncredit OTTI losses recognized in AOCI — (1 ) 1 DAC, VOBA and DSI (51 ) (12 ) 207 Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI — (9 ) (5 ) Deferred income tax benefit (expense) 253 143 636 Balance at December 31, $ 1,726 $ 1,312 $ 1,573 Change in net unrealized investment gains (losses) $ 414 $ (261 ) $ (1,172 ) Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both December 31, 2017 and 2016 . Securities Lending Elements of the securities lending program are presented below at: December 31, 2017 2016 (In millions) Securities on loan: (1) Amortized cost $ 3,085 $ 5,895 Estimated fair value $ 3,748 $ 6,555 Cash collateral received from counterparties (2) $ 3,791 $ 6,642 Security collateral received from counterparties (3) $ 29 $ 27 Reinvestment portfolio — estimated fair value $ 3,823 $ 6,571 __________________ (1) Included within fixed maturity securities. (2) Included within payables for collateral under securities loaned and other transactions. (3) Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated and combined financial statements. The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at: December 31, 2017 December 31, 2016 Remaining Tenor of Securities Lending Agreements Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total Open (1) 1 Month or Less 1 to 6 Months Total (In millions) Cash collateral liability by loaned security type: U.S. government and agency $ 1,626 $ 964 $ 1,201 $ 3,791 $ 2,129 $ 1,906 $ 1,743 $ 5,778 U.S. corporate — — — — — 480 — 480 Agency RMBS — — — — — — 274 274 Foreign corporate — — — — — 58 — 58 Foreign government — — — — — 52 — 52 Total $ 1,626 $ 964 $ 1,201 $ 3,791 $ 2,129 $ 2,496 $ 2,017 $ 6,642 __________________ (1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral. If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at December 31, 2017 was $1.6 billion , all of which were U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement. The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, U.S. government and agency securities, ABS, U.S. and foreign corporate securities, and non-agency RMBS) with 59% invested in agency RMBS, U.S. government and agency securities, cash equivalents, short-term investments or held in cash at December 31, 2017 . If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company. Invested Assets on Deposit, Held in Trust and Pledged as Collateral Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value at: December 31, 2017 2016 (In millions) Invested assets on deposit (regulatory deposits) (1) $ 8,263 $ 7,648 Invested assets held in trust (reinsurance agreements) (2) 2,634 9,054 Invested assets pledged as collateral (3) 3,199 3,548 Total invested assets on deposit, held in trust and pledged as collateral $ 14,096 $ 20,250 __________________ (1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policy holder liabilities, of which $34 million of the assets on deposit balance represents restricted cash at both December 31, 2017 and 2016 . (2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions. $42 million and $15 million of the assets held in trust balance represents restricted cash at December 31, 2017 and 2016 , respectively. (3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 ) and derivative transactions (see Note 7 ). See “— Securities Lending” for information regarding securities on loan. Purchased Credit Impaired Investments Investments acquired with evidence of credit quality deterioration since origination and for which it is probable at the acquisition date that the Company will be unable to collect all contractually required payments are classified as purchased credit impaired (“PCI”) investments. For each investment, the excess of the cash flows expected to be collected as of the acquisition date over its acquisition date fair value is referred to as the accretable yield and is recognized as net investment income on an effective yield basis. If, subsequently, based on current information and events, it is probable that there is a significant increase in cash flows previously expected to be collected or if actual cash flows are significantly greater than cash flows previously expected to be collected, the accretable yield is adjusted prospectively. The excess of the contractually required payments (including interest) as of the acquisition date over the cash flows expected to be collected as of the acquisition date is referred to as the nonaccretable difference, and this amount is not expected to be realized as net investment income. Decreases in cash flows expected to be collected can result in OTTI. The Company’s PCI fixed maturity securities were as follows at: December 31, 2017 2016 (In millions) Outstanding principal and interest balance (1) $ 1,270 $ 1,497 Carrying value (2) $ 1,044 $ 1,142 __________________ (1) Represents the contractually required payments, which is the sum of contractual principal, whether or not currently due, and accrued interest. (2) Estimated fair value plus accrued interest. The following table presents information about PCI fixed maturity securities acquired during the periods indicated: Years Ended December 31, 2017 2016 (In millions) Contractually required payments (including interest) $ 3 $ 567 Cash flows expected to be collected (1) $ 3 $ 490 Fair value of investments acquired $ 2 $ 347 __________________ (1) Represents undiscounted principal and interest cash flow expectations, at the date of acquisition. The following table presents activity for the accretable yield on PCI fixed maturity securities for: Years Ended December 31, 2017 2016 (In millions) Accretable yield, January 1, $ 429 $ 420 Investments purchased 1 143 Accretion recognized in earnings (69 ) (68 ) Disposals (10 ) (13 ) Reclassification (to) from nonaccretable difference 34 (53 ) Accretable yield, December 31, $ 385 $ 429 Collectively Significant Equity Method Investments The Company holds investments in real estate joint ventures, real estate funds and other limited partnership interests consisting of leveraged buy-out funds, hedge funds, private equity funds, joint ventures and other funds. The portion of these investments accounted for under the equity method had a carrying value of $2.2 billion at December 31, 2017 . The Company’s maximum exposure to loss related to these equity method investments is limited to the carrying value of these investments plus unfunded commitments of $1.1 billion at December 31, 2017 . Except for certain real estate joint ventures, the Company’s investments in real estate funds and other limited partnership interests are generally of a passive nature in that the Company does not participate in the management of the entities. As described in Note 1 , the Company generally records its share of earnings in its equity method investments using a three-month lag methodology and within net investment income. Aggregate net investment income from these equity method investments exceeded 10% of the Company’s consolidated pre-tax income (loss) for two of the three most recent annual periods: 2017 and 2015. This aggregated summarized financial data does not represent the Company’s proportionate share of the assets, liabilities, or earnings of such entities. The aggregated summarized financial data presented below reflects the latest available financial information and is as of and for the years ended December 31, 2017 , 2016 and 2015 . Aggregate total assets of these entities totaled $329.2 billion and $285.3 billion at December 31, 2017 and 2016 , respectively. Aggregate total liabilities of these entities totaled $40.0 billion and $26.4 billion at December 31, 2017 and 2016 , respectively. Aggregate net income (loss) of these entities totaled $36.4 billion , $21.3 billion and $13.7 billion for the years ended December 31, 2017 , 2016 and 2015 , respectively. Aggregate net income (loss) from the underlying entities in which the Company invests is primarily comprised of investment income, including recurring investment income and realized and unrealized investment gains (losses). Variable Interest Entities The Company has invested in legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. Consolidated VIEs Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment. The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at: December 31, 2017 2016 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) MRSC (collateral financing arrangement (primarily securities)) (1) $ — $ — $ 3,422 $ — CSEs (assets (primarily loans) and liabilities (primarily debt)) (2) 116 11 137 24 Total $ 116 $ 11 $ 3,559 $ 24 __________________ (1) In April 2017, these assets were liquidated and the proceeds were used to repay the MRSC collateral financing arrangement (see Note 9 ). (2) The Company consolidates entities that are structured as CMBS. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of $86 million and $95 million at estimated fair value at December 31, 2017 and 2016 , respectively. Unconsolidated VIEs The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: December 31, 2017 2016 Carrying Amount Maximum Exposure to Loss (1) Carrying Amount Maximum Exposure to Loss (1) (In millions) Fixed maturity securities AFS: Structured Securities (2) $ 11,461 $ 11,461 $ 13,062 $ 13,062 U.S. and foreign corporate 504 504 518 518 Other limited partnership interests 1,511 2,463 1,495 2,292 Other investments (3) 82 89 90 101 Total $ 13,558 $ 14,517 $ 15,165 $ 15,973 __________________ (1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. (3) Other investments are comprised of real estate joint ventures, other invested assets and non-redeemable preferred stock. As described in Note 15 , the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during the years ended December 31, 2017 , 2016 and 2015 . Net Investment Income The components of net investment income were as follows: Years Ended December 31, 2017 2016 2015 (In millions) Investment income: Fixed maturity securities $ 2,420 $ 2,642 $ 2,478 Equity securities 12 19 19 Mortgage loans 446 401 373 Policy loans 73 78 78 Real estate and real estate joint ventures 53 32 108 Other limited partnership interests 184 163 134 Cash, cash equivalents and short-term investments 35 20 9 Other 25 16 12 Subtotal 3,248 3,371 3,211 Less: Investment expenses 178 176 128 Subtotal, net 3,070 3,195 3,083 FVO CSEs — interest income — commercial mortgage loans 8 12 16 Net investment income $ 3,078 $ 3,207 $ 3,099 See “— Variable Interest Entities” for discussion of CSEs. See “— Related Party Investment Transactions” for discussion of related party net investment income and investment expenses. Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows: Years Ended December 31, 2017 2016 2015 (In millions) Total gains (losses) on fixed maturity securities: Total OTTI losses recognized — by sector and industry: U.S. and foreign corporate securities — by industry: Industrial $ — $ (16 ) $ (3 ) Consumer — — (8 ) Utility — — (6 ) Total U.S. and foreign corporate securities — (16 ) (17 ) RMBS — (6 ) (14 ) State and political subdivision (1 ) — — OTTI losses on fixed maturity securities recognized in earnings (1 ) (22 ) (31 ) Fixed maturity securities — net gains (losses) on sales and disposals (25 ) (40 ) (59 ) Total gains (losses) on fixed maturity securities (26 ) (62 ) (90 ) Total gains (losses) on equity securities: OTTI losses on equity securities recognized in earnings (4 ) (2 ) (3 ) Equity securities — net gains (losses) on sales and disposals 26 10 18 Total gains (losses) on equity securities 22 8 15 Mortgage loans (9 ) 6 (11 ) Real estate and real estate joint ventures 4 (34 ) 98 Other limited partnership interests (11 ) (7 ) (1 ) Other (5 ) 11 — Subtotal (25 ) (78 ) 11 FVO CSEs: Commercial mortgage loans (3 ) (2 ) (7 ) Long-term debt — related to commercial mortgage loans 1 1 4 Non-investment portfolio gains (losses) (1 ) 1 (1 ) Subtotal (3 ) — (4 ) Total net investment gains (losses) $ (28 ) $ (78 ) $ 7 See “— Variable Interest Entities” for discussion of CSEs. See “— Related Party Investment Transactions” for discussion of related party net investment gains (losses) related to transfers of invested assets. Sales or Disposals and Impairments of Fixed Maturity and Equity Securities Investment gains and losses on sales of se |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 7. Derivatives Accounting for Derivatives See Note 1 for a description of the Company’s accounting policies for derivatives and Note 8 for information about the fair value hierarchy for derivatives Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps to synthetically replicate investment risks and returns which are not readily available in the cash markets. Primary Risks Managed by Derivatives The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at: Primary Underlying Risk Exposure December 31, 2017 2016 Estimated Fair Value Estimated Fair Value Gross Assets Liabilities Gross Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments Fair value hedges: Interest rate swaps Interest rate $ 175 $ 44 $ — $ 310 $ 41 $ — Cash flow hedges: Interest rate swaps Interest rate 27 5 — 45 7 — Foreign currency swaps Foreign currency exchange rate 1,827 94 75 1,493 202 11 Subtotal 1,854 99 75 1,538 209 11 Total qualifying hedges 2,029 143 75 1,848 250 11 Derivatives Not Designated or Not Qualifying as Hedging Instruments Interest rate swaps Interest rate 20,213 922 774 28,175 1,928 1,687 Interest rate floors Interest rate — — — 2,100 6 2 Interest rate caps Interest rate 2,671 7 — 12,042 25 — Interest rate futures Interest rate 282 1 — 1,288 9 — Interest rate options Interest rate 24,600 133 63 15,520 136 — Interest rate total return swaps Interest rate — — — 3,876 — 611 Foreign currency swaps Foreign currency exchange rate 1,115 71 42 1,261 155 4 Foreign currency forwards Foreign currency exchange rate 130 — 1 158 9 — Credit default swaps — purchased Credit 65 — 1 37 — — Credit default swaps — written Credit 1,900 40 — 1,913 28 — Equity futures Equity market 2,713 15 — 8,037 38 — Equity index options Equity market 47,066 794 1,664 37,501 897 934 Equity variance swaps Equity market 8,998 128 430 14,894 140 517 Equity total return swaps Equity market 1,767 — 79 2,855 1 117 Total non-designated or nonqualifying derivatives 111,520 2,111 3,054 129,657 3,372 3,872 Total $ 113,549 $ 2,254 $ 3,129 $ 131,505 $ 3,622 $ 3,883 Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both December 31, 2017 and 2016 . The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps that are used to create synthetic credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these nonqualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged. The following table presents earned income on derivatives: Years Ended December 31, 2017 2016 2015 (In millions) Qualifying hedges: Net investment income $ 23 $ 21 $ 13 Interest credited to policyholder account balances — — (2 ) Nonqualifying hedges: Net derivative gains (losses) 314 461 361 Policyholder benefits and claims 8 15 14 Total $ 345 $ 497 $ 386 Credit Derivatives In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. Such credit derivatives are included within the nonqualifying derivatives and derivatives for purposes other than hedging table. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current estimated fair value of the credit default swaps. The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at: December 31, 2017 2016 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Fair Value of Credit Default Swaps Maximum Weighted Estimated Fair Value of Credit Default Swaps Maximum Weighted (Dollars in millions) Aaa/Aa/A $ 12 $ 558 2.8 $ 8 $ 478 3.6 Baa 28 1,317 4.7 20 1,415 4.4 Ba — 25 4.5 — 20 2.7 Total $ 40 $ 1,900 4.1 $ 28 $ 1,913 4.2 __________________ (1) Includes both single name credit default swaps that may be referenced to the credit of corporations, foreign governments, or state and political subdivisions and credit default swap referencing indices. T he rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service, Inc. (“Moody’s”), S&P and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used. (2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts. The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoring exposure limits. The Company’s OTC-bilateral derivative transactions are generally governed by ISDA Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions. Substantially all of the Company’s ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives. The Company’s OTC-cleared derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected through regulated exchanges. Such positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivatives. See Note 8 for a description of the impact of credit risk on the valuation of derivatives. The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: December 31, 2017 2016 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In millions) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 2,233 $ 3,081 $ 3,411 $ 2,929 OTC-cleared and Exchange-traded (1), (6) 70 40 315 905 Total gross estimated fair value of derivatives (1) 2,303 3,121 3,726 3,834 Amounts offset on the consolidated and combined balance sheets — — — — Estimated fair value of derivatives presented on the consolidated and combined balance sheets (1), (6) 2,303 3,121 3,726 3,834 Gross amounts not offset on the consolidated and combined balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (1,942 ) (1,942 ) (2,231 ) (2,231 ) OTC-cleared and Exchange-traded (1 ) (1 ) (165 ) (165 ) Cash collateral: (3), (4) OTC-bilateral (257 ) — (653 ) — OTC-cleared and Exchange-traded (28 ) (39 ) (92 ) (740 ) Securities collateral: (5) OTC-bilateral (31 ) (1,138 ) (429 ) (698 ) OTC-cleared and Exchange-traded — — — — Net amount after application of master netting agreements and collateral $ 44 $ 1 $ 156 $ — __________________ (1) At December 31, 2017 and 2016 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $49 million and $104 million , respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($8) million and ($49) million , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. (4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2017 and 2016 , the Company received excess cash collateral of $94 million and $4 million , respectively, and provided excess cash collateral of $5 million and $25 million , respectively, which is not included in the table above due to the foregoing limitation. (5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at December 31, 2017 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At December 31, 2017 and 2016 , the Company received excess securities collateral with an estimated fair value of $337 million and $135 million , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At December 31, 2017 and 2016 , the Company provided excess securities collateral with an estimated fair value of $471 million and $108 million , respectively, for its OTC-bilateral derivatives, $427 million and $630 million , respectively, for its OTC-cleared derivatives, and $118 million and $453 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. (6) Effective January 3, 2017, the CME amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. See Note 1 for further information on the CME amendments. The Company’s collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the amount owed by that counterparty reaches a minimum transfer amount. A small number of these arrangements also include credit-contingent provisions that include a threshold above which collateral must be posted. Such agreements provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the credit ratings of the Company and/or the counterparty. In addition, substantially all of the Company’s netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade credit rating from each of Moody’s and S&P. If a party’s financial strength or credit ratings were to fall below that specific investment grade credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party’s reasonable valuation of the derivatives. The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that are in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged. The Company’s collateral agreements require both parties to be fully collateralized, as such, the Company would not be required to post additional collateral as a result of a downgrade in its financial strength rating. OTC-bilateral derivatives that are not subject to collateral agreements are excluded from this table. December 31, 2017 2016 (In millions) Estimated fair value of derivatives in a net liability position (1) $ 1,138 $ 698 Estimated Fair Value of Collateral Provided: Fixed maturity securities $ 1,414 $ 777 __________________ (1) After taking into consideration the existence of netting agreements. Embedded Derivatives The Company issues certain products or purchases certain investments that contain embedded derivatives that are required to be separated from their host contracts and accounted for as freestanding derivatives. These host contracts principally include: variable annuities with guaranteed minimum benefits, including GMWBs, GMABs and certain GMIBs; related party ceded reinsurance of guaranteed minimum benefits related to GMWBs, GMABs and certain GMIBs; related party assumed reinsurance of guaranteed minimum benefits related to GMWBs and certain GMIBs; funds withheld on assumed and ceded reinsurance; assumed reinsurance on fixed deferred annuities; fixed annuities with equity-indexed returns; and certain debt and equity securities. The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at: December 31, Balance Sheet Location 2017 2016 (In millions) Embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits Premiums, reinsurance and other receivables $ 227 $ 628 Options embedded in debt or equity securities Investments (52 ) (49 ) Embedded derivatives within asset host contracts $ 175 $ 579 Embedded derivatives within liability host contracts: Direct guaranteed minimum benefits Policyholder account balances $ 1,212 $ 2,359 Assumed reinsurance on fixed deferred annuities Policyholder account balances 1 — Assumed guaranteed minimum benefits Policyholder account balances — 460 Fixed annuities with equity indexed returns Policyholder account balances 674 192 Embedded derivatives within liability host contracts $ 1,887 $ 3,011 The following table presents changes in estimated fair value related to embedded derivatives: Years Ended December 31, 2017 2016 2015 (In millions) Net derivative gains (losses) (1), (2) $ 1,082 $ (1,824 ) $ (175 ) Policyholder benefits and claims $ (16 ) $ (4 ) $ 21 __________________ (1) The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $290 million , $246 million and $26 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment, were less than $1 million , ($22) million and ($5) million for the years ended December 31, 2017, 2016 and 2015, respectively. (2) See Note 5 for discussion of related party net derivative gains (losses). |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 8. Fair Value When developing estimated fair values, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at: December 31, 2017 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 22,048 $ 909 $ 22,957 U.S government and agency 8,304 7,988 — 16,292 RMBS — 6,989 988 7,977 Foreign corporate — 5,935 1,088 7,023 State and political subdivision — 4,181 — 4,181 CMBS — 3,287 136 3,423 ABS — 1,723 106 1,829 Foreign government — 1,304 5 1,309 Total fixed maturity securities 8,304 53,455 3,232 64,991 Equity securities 18 90 124 232 Short-term investments 142 156 14 312 Commercial mortgage loans held by CSEs — FVO — 115 — 115 Loans to MetLife, Inc. — — — — Derivative assets: (1) Interest rate 1 1,111 — 1,112 Foreign currency exchange rate — 165 — 165 Credit — 30 10 40 Equity market 15 773 149 937 Total derivative assets 16 2,079 159 2,254 Embedded derivatives within asset host contracts (2) — — 227 227 Separate account assets 410 117,842 5 118,257 Total assets $ 8,890 $ 173,737 $ 3,761 $ 186,388 Liabilities Derivative liabilities: (1) Interest rate $ — $ 837 $ — $ 837 Foreign currency exchange rate — 117 1 118 Credit — 1 — 1 Equity market — 1,736 437 2,173 Total derivative liabilities — 2,691 438 3,129 Embedded derivatives within liability host contracts (2) — — 1,887 1,887 Long-term debt of CSEs — FVO — 11 — 11 Total liabilities $ — $ 2,702 $ 2,325 $ 5,027 December 31, 2016 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 20,828 $ 1,483 $ 22,311 U.S. government and agency 6,210 6,880 — 13,090 RMBS — 6,703 1,320 8,023 Foreign corporate — 5,485 908 6,393 State and political subdivision — 3,928 17 3,945 CMBS — 3,645 167 3,812 ABS — 2,428 224 2,652 Foreign government — 1,162 — 1,162 Total fixed maturity securities 6,210 51,059 4,119 61,388 Equity securities 39 124 137 300 Short-term investments 718 568 2 1,288 Commercial mortgage loans held by CSEs — FVO — 136 — 136 Loans to MetLife, Inc. — 1,090 — 1,090 Derivative assets: (1) Interest rate 9 2,143 — 2,152 Foreign currency exchange rate — 366 — 366 Credit — 20 8 28 Equity market 38 859 179 1,076 Total derivative assets 47 3,388 187 3,622 Embedded derivatives within asset host contracts (2) — — 628 628 Separate account assets 720 112,313 10 113,043 Total assets $ 7,734 $ 168,678 $ 5,083 $ 181,495 Liabilities Derivative liabilities: (1) Interest rate $ — $ 1,689 $ 611 $ 2,300 Foreign currency exchange rate — 15 — 15 Credit — — — — Equity market — 1,038 530 1,568 Total derivative liabilities — 2,742 1,141 3,883 Embedded derivatives within liability host contracts (2) — — 3,011 3,011 Long-term debt of CSEs — FVO — 23 — 23 Total liabilities $ — $ 2,765 $ 4,152 $ 6,917 __________________ (1) Derivative assets are presented within other invested assets on the consolidated and combined balance sheets and derivative liabilities are presented within other liabilities on the consolidated and combined balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated and combined balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the consolidated and combined balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances, on the consolidated and combined balance sheets. At December 31, 2017 and 2016 , debt and equity securities also included embedded derivatives of ($52) million and ($49) million , respectively. Valuation Controls and Procedures The Company monitors and provides oversight of valuation controls and policies for securities, mortgage loans and derivatives, which are primarily executed by MLIA. The valuation methodologies used to determine fair values prioritize the use of observable market prices and market-based parameters and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. The valuation methodologies for securities, mortgage loans and derivatives are reviewed on an ongoing basis and revised when necessary, based on changing market conditions. In addition, the Chief Accounting Officer periodically reports to the Audit Committee of Brighthouse’s Board of Directors regarding compliance with fair value accounting standards. The fair value of financial assets and financial liabilities is based on quoted market prices, where available. The Company assesses whether prices received represent a reasonable estimate of fair value through controls designed to ensure valuations represent an exit price. MLIA performs several controls, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. Independent non-binding broker quotes, also referred to herein as “consensus pricing”, are used for non-significant portion of the portfolio. Prices received from independent brokers are assessed to determine if they represent a reasonable estimate of fair value by considering such pricing relative to the current market dynamics and current pricing for similar financial instruments. Fixed maturity securities priced using independent non-binding broker quotations represent less than 1% of the total estimated fair value of fixed maturity securities and 5% of the total estimated fair value of Level 3 fixed maturity securities at December 31, 2017. MLIA also applies a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained. If obtaining an independent non-binding broker quotation is unsuccessful, MLIA will use the last available price. The Company reviews outputs of MLIA’s controls and performs additional controls, including certain monthly controls, which include but are not limited to, performing balance sheet analytics to assess reasonableness of period to period pricing changes, including any price adjustments. Price adjustments are applied if prices or quotes received from independent pricing services or brokers are not considered reflective of market activity or representative of estimated fair value. The Company did not have significant price adjustments during the year ended December 31, 2017. Determination of Fair Value Fixed maturities The fair values for actively traded marketable bonds, primarily U.S. government and agency securities, are determined using the quoted market prices and are classified as Level 1 assets. For fixed maturities classified as Level 2 assets, fair values are determined using either a market or income approach and are valued based on a variety of observable inputs as described below. U.S. corporate and foreign corporate securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark yields, spreads off benchmark yields, new issuances, issuer rating, trades of identical or comparable securities, or duration. Privately-placed securities are valued using the additional key inputs: market yield curve, call provisions, observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer, and delta spread adjustments to reflect specific credit-related issues. U.S. government and agency, state and political subdivision and foreign government securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark U.S. Treasury yield or other yields, spread off the U.S. Treasury yield curve for the identical security, issuer ratings and issuer spreads, broker dealer quotes, and comparable securities that are actively traded. Structured securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, ratings, geographic region, weighted average coupon and weighted average maturity, average delinquency rates and debt-service coverage ratios. Other issuance-specific information is also used, including, but not limited to; collateral type, structure of the security, vintage of the loans, payment terms of the underlying asset, payment priority within tranche, and deal performance. Equity securities, short-term investments, loans to MetLife, Inc., commercial mortgage loans held by CSEs ‑ FVO and long-term debt of CSEs - FVO The fair value for actively traded equity and short-term investments are determined using quoted market prices and are classified as Level 1 assets. For financial instruments classified as Level 2 assets or liabilities, fair values are determined using a market approach and are valued based on a variety of observable inputs as described below. Equity securities, short-term investments and loans to MetLife, Inc.: Fair value is determined using third-party commercial pricing services, with the primary input being quoted prices in markets that are not active. Commercial mortgage loans held by CSEs - FVO and long-term debt of CSEs - FVO: Fair value is determined using third-party commercial pricing services, with the primary input being quoted securitization market price determined principally by independent pricing services using observable inputs or quoted prices or reported NAV provided by the fund managers. Derivatives The fair values for exchange-traded derivatives are determined using the quoted market prices and are classified as Level 1 assets. For OTC-bilateral derivatives and OTC-cleared derivatives classified as Level 2 assets or liabilities, fair values are determined using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models which are based on market standard valuation methodologies and a variety of observable inputs. The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income. The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. Embedded Derivatives Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees, equity or bond indexed crediting rates within certain annuity contracts, and those related to funds withheld on ceded reinsurance agreements. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated and combined balance sheets. The Company’s actuarial department calculates the fair value of these embedded derivatives, which are estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for Brighthouse Financial, Inc.’s debt. These observable spreads are then adjusted to reflect the priority of these liabilities and claims paying ability of the issuing insurance subsidiaries as compared to Brighthouse Financial, Inc.’s overall financial strength. Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. The Company recaptured from a former affiliate the risk associated with certain GMIBs. These embedded derivatives are included in policyholder account balances on the consolidated and combined balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on these recaptured risks is determined using a methodology consistent with that described previously for the guarantees directly written by the Company. The Company ceded to a former affiliate the risk associated with certain of the GMIBs, GMABs and GMWBs described above that are also accounted for as embedded derivatives. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also ceded, to a former affiliate, certain directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives), but where the reinsurance agreement contains an embedded derivative. These embedded derivatives are included within premiums, reinsurance and other receivables on the consolidated and combined balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as previously described in “— Securities, Short-term Investments, Loans to MetLife, Inc., and Long-term Debt of CSEs — FVO.” The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities on the consolidated and combined balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. The Company issues certain annuity contracts which allow the policyholder to participate in returns from equity indices. These equity indexed features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated and combined balance sheets. The estimated fair value of the embedded equity indexed derivatives, based on the present value of future equity returns to the policyholder using actuarial and present value assumptions including expectations concerning policyholder behavior, is calculated by the Company’s actuarial department. The calculation is based on in-force business and uses standard capital market techniques, such as Black-Scholes, to calculate the value of the portion of the embedded derivative for which the terms are set. The portion of the embedded derivative covering the period beyond where terms are set is calculated as the present value of amounts expected to be spent to provide equity indexed returns in those periods. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk. Transfers between Levels Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period. Transfers between Levels 1 and 2: For assets and liabilities measured at estimated fair value and still held at December 31, 2017 and 2016 , transfers between Levels 1 and 2 were not significant. Transfers into or out of Level 3: Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: December 31, 2017 December 31, 2016 Impact of Valuation Techniques Significant Unobservable Inputs Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 93 - 142 111 18 - 138 104 Increase • Market pricing • Quoted prices (4) — - 443 77 13 - 700 99 Increase • Consensus pricing • Offered quotes (4) 37 - 109 85 Increase RMBS • Market pricing • Quoted prices (4) 3 - 107 95 38 - 111 91 Increase (5) CMBS • Market pricing • Quoted prices (4) 8 - 104 88 20 - 104 104 Increase (5) • Consensus pricing • Offered quotes (4) 105 - 105 105 99 - 99 99 Increase (5) ABS • Market pricing • Quoted prices (4) 100 - 104 101 94 - 106 100 Increase (5) • Consensus pricing • Offered quotes (4) 100 - 100 100 98 - 100 99 Increase (5) Derivatives Interest rate • Present value techniques • Repurchase rates (7) — - — (44) - 18 Decrease (6) Credit • Present value techniques • Credit spreads (8) — - — 97 - 98 Decrease (6) • Consensus pricing • Offered quotes (9) Equity market • Present value techniques or option pricing models • Volatility (10) 11% - 31% 14% - 32% Increase (6) • Correlation (11) 10% - 30% 40% - 40% Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates: Ages 0 - 40 0% - 0.09% 0% - 0.09% Decrease (12) Ages 41 - 60 0.04% - 0.65% 0.04% - 0.65% Decrease (12) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (12) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (13) Durations 11 - 20 2% - 100% 2% - 100% Decrease (13) Durations 21 - 116 2% - 100% 2% - 100% Decrease (13) • Utilization rates 0% - 25% 0% - 25% Increase (14) • Withdrawal rates 0.25% - 10% 0.25% - 10% (15) • Long-term equity volatilities 17.40% - 25% 17.40% - 25% Increase (16) • Nonperformance risk spread 0.64% - 1.43% 0.04% - 0.57% Decrease (17) __________________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (5) Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (6) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. (7) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points. (8) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. (9) At December 31, 2017 and 2016 , independent non-binding broker quotations were used in the determination of 1% and 3% of the total net derivative estimated fair value, respectively. (10) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (11) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. (12) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (13) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (14) The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (15) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (16) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (17) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement of assets and liabilities classified within Level 3 that are not included in the preceding table. Generally, all other classes of securities classified within Level 3, including those within separate account assets and embedded derivatives within funds withheld related to certain assumed reinsurance, use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well as independent non-binding broker quotations. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table. The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) Structured Securities State and Foreign Equity Short Term Investments Net Derivatives (2) Net Embedded Derivatives (3) Separate Account Assets (4) (In millions) Balance, January 1, 2016 $ 2, |
Long-term Debt and Collateral F
Long-term Debt and Collateral Financing Arrangement | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Collateral Financing Arrangement Disclosure [Text Block] | 9. Long-term Debt and Collateral Financing Arrangement Long-term debt and collateral financing arrangement outstanding were as follows: December 31, Interest Rate Maturity 2017 2016 (In millions) Senior notes — unaffiliated (1) 3.700% 2027 $ 1,489 $ — Senior notes — unaffiliated (1) 4.700% 2047 1,477 — Surplus notes — affiliated with MetLife, Inc. 8.595% 2038 — 750 Surplus note — affiliated with MetLife, Inc. 5.130% 2032 — 750 Surplus note — affiliated with MetLife, Inc. 6.000% 2033 — 350 Long-term debt — unaffiliated (2) 7.028% 2030 35 37 Term loan — unaffiliated (3) LIBOR plus 1.5% 2019 600 — Total long-term debt $ 3,601 $ 1,887 Collateral financing arrangement 3-month LIBOR plus 0.70% 2037 $ — $ 2,797 __________________ (1) Includes unamortized debt issuance costs and debt discount totaling $34 million for the senior notes due 2027 and 2047 on a combined basis at December 31, 2017. (2) Represents non-recourse debt for which creditors have no access, subject to customary exceptions, to the general assets of the Company other than recourse to certain investment companies. (3) Excludes $11 million and $23 million of long-term debt related to CSEs at December 31, 2017 and 2016 , respectively. See Note 6 for more information regarding CSEs. The aggregate maturities of long-term debt at December 31, 2017 were $2 million in 2018 , $602 million in 2019 , $2 million in each of 2020 , 2021 and 2022 , and $3.0 billion thereafter. Interest expense related to long-term debt of $135 million , $133 million and $134 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, is included in other expenses. Certain of the Company’s debt instruments, credit and committed facilities, and the reinsurance financing arrangement contain administrative, reporting, legal and financial covenants, including requirements to maintain specified minimum consolidated net worth and to maintain a ratio of indebtedness to total capitalization not in excess of a specified percentage and limitations on the dollar amount of indebtedness that may be incurred by subsidiaries of Brighthouse Financial, Inc. The Company is not aware of any non-compliance with these covenants at December 31, 2017 . Senior Notes On June 22, 2017, Brighthouse Financial, Inc. issued $1.5 billion of senior notes due June 2027, which bear interest at a fixed rate of 3.70% , payable semi-annually, and $1.5 billion of senior notes due June 2047, which bear interest at a fixed rate of 4.70% , payable semi-annually (collectively, the “Senior Notes”). In connection with the issuance of the Senior Notes, Brighthouse Financial, Inc. capitalized debt issuance costs of $23 million and debt discounts of $12 million , which are amortized over the term of the related debt instrument as a component of interest expense. Surplus Notes On June 16, 2017, MetLife, Inc. forgave Brighthouse Life Insurance Company’s obligation to pay the principal amount of $750 million , 8.595% surplus notes held by MetLife, Inc., which were originally issued in 2008. The forgiveness of the surplus notes was treated as a capital transaction and recorded as an increase to additional paid-in-capital. On April 28, 2017, two surplus note obligations due to MetLife, Inc. totaling $1.1 billion , which were originally issued in 2012 and 2013, were due on September 30, 2032 and December 31, 2033 and bore interest at 5.13% and 6.00% , respectively, were satisfied in a non-cash exchange for $1.1 billion of loans due from MetLife, Inc. Credit Facilities On December 2, 2016, Brighthouse Financial, Inc. entered into a $2.0 billion five -year senior unsecured revolving credit facility (the “Revolving Credit Facility”) and a $3.0 billion three -year term loan facility (the “2016 Term Loan Facility”) with a syndicate of banks. In connection with entering into these credit facilities, MetLife, Inc. paid $16 million of debt issuance costs on the Company’s behalf. The Company capitalized these costs, which are included in other assets, and reimbursed MetLife, Inc. in 2017. Such debt issuance costs are amortized over the terms of the facilities, which is included in other expenses. On July 21, 2017, Brighthouse Financial, Inc. entered into a new term loan agreement (the “2017 Term Loan Agreement”) with respect to a new $600 million unsecured delayed draw term loan facility due December 2, 2019 (the “2017 Term Loan Facility”). Debt issuance costs incurred related to the 2017 Term Loan Facility were not significant. On August 2, 2017, Brighthouse Financial, Inc. borrowed $500 million under the 2017 Term Loan Facility in connection with the Separation. On August 14, 2017, Brighthouse Financial, Inc. borrowed the remaining $100 million available under the 2017 Term Loan Facility. On July 21, 2017, concurrently with entering into the 2017 Term Loan Agreement, the 2016 Term Loan Facility was terminated without penalty. As a result of this termination, $7 million of unamortized debt issuance costs were written off and included in other expenses. At December 31, 2017, there were no drawdowns under the Revolving Credit Facility and there was $600 million outstanding under the 2017 Term Loan Facility, resulting in unused commitments totaling $2.0 billion in comparison to the maximum capacity of $2.6 billion under these facilities. Committed Facilities, Collateral Financing Arrangement and Reinsurance Financing Arrangement The Company previously had access to an unsecured revolving credit facility and certain committed facilities through the Company’s former parent, MetLife, Inc. These facilities were used for collateral for certain of the Company’s affiliated reinsurance liabilities. In connection with the affiliated reinsurance company restructuring, effective April 28, 2017, MetLife, Inc.’s then existing affiliated reinsurance subsidiaries that supported the business interests of Brighthouse Financial, Inc. became a part of Brighthouse Financial, Inc. Simultaneously with the affiliated reinsurance company restructuring, the existing reserve financing arrangements of the affected reinsurance subsidiaries, as well as Brighthouse Financial, Inc.’s access to MetLife Inc.’s revolving credit facility and certain committed facilities, including outstanding letters of credit, were terminated and replaced with a single reinsurance financing arrangement, which is discussed in more detail below. The terminated committed facilities included a $3.5 billion committed facility for the benefit of MRSC and a $4.3 billion committed facility for the benefit of MRV Cell. For the years ended December 31, 2017, 2016 and 2015, the Company recognized fees of $19 million , $55 million and $61 million , respectively, in other expenses associated with these committed facilities. In 2007, MetLife, Inc. and MRSC entered into a 30-year collateral financing arrangement with an unaffiliated financial institution that provided up to $3.5 billion of statutory reserve support for MRSC associated with reinsurance obligations under affiliated reinsurance agreements. Proceeds from this collateral financing arrangement, which resulted in a drawdown of $2.8 billion on the aforementioned $3.5 billion committed facility, were placed in trusts to support MRSC’s statutory obligations associated with the reinsurance of secondary guarantees (see Note 6 for additional information regarding MRSC invested assets). At December 31, 2016, the amount outstanding under this collateral financing arrangement was $2.8 billion . On April 28, 2017, MetLife, Inc. and MRSC terminated this collateral financing arrangement. As a result, the $2.8 billion collateral financing arrangement obligation outstanding was extinguished utilizing $2.8 billion of assets held in trust, which had been repositioned into short-term investments and cash equivalents. The remaining assets held in trust of $590 million were returned to MetLife, Inc., resulting in a decrease in shareholder’s net investment. For the years ended December 31, 2017, 2016 and 2015, the Company recognized interest expense of $19 million , $39 million and $28 million , respectively, related to this collateral financing arrangement, which is included in other expenses. On April 28, 2017, BRCD entered into a new $10.0 billion financing arrangement with a pool of highly rated third-party reinsurers. This financing arrangement consists of credit-linked notes that each have a term of 20 years. At December 31, 2017 , there were no drawdowns on this facility and there was $8.3 billion of funding available under this arrangement. Fees associated with this financing arrangement were not significant. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | 10. Equity Shareholder’s Net Investment Transactions The following sections summarize certain transactions that occurred prior to and including the Separation and affected shareholder’s net investment. In connection with the Separation, on August 4, 2017, the Company reclassified $12.4 billion from shareholder’s net investment to common stock and additional paid-in capital. Common Stock On August 4, 2017, Brighthouse Financial, Inc. issued an additional 119,673,106 shares of common stock to MetLife, Inc. Also on August 4, 2017, MetLife, Inc. distributed 96,776,670 of its 119,773,106 shares of Brighthouse Financial, Inc. common stock, representing 80.8% of MetLife Inc.’s interest in Brighthouse Financial, Inc., to holders of MetLife, Inc. common stock. MetLife, Inc. retained the remaining 22,996,436 shares, representing 19.2% of Brighthouse Financial, Inc.’s common stock. Capital Contributions During the third quarter of 2017, the Company recognized a $1.1 billion non-cash tax charge and corresponding capital contribution from MetLife, Inc. This tax obligation was in connection with the Separation and MetLife, Inc. is responsible for this obligation through a Tax Separation Agreement. See Note 13. During the second quarter of 2017, MetLife, Inc. forgave Brighthouse Life Insurance Company’s obligation to pay the principal amount of $750 million of surplus notes held by MetLife, Inc. The forgiveness of these notes was a non-cash capital contribution. See Note 9 . During the first quarter of 2017, the Company sold an operating joint venture to a former affiliate and the resulting $202 million gain was treated as a cash capital contribution. See Note 6 . During the years ended December 31, 2016 and 2015 , the Company received cash capital contributions of $1.6 billion and $10 million , respectively, from MetLife, Inc. In December 2015 and 2014, the Company accrued capital contributions from MetLife, Inc. of $120 million and $385 million , respectively, in premiums, reinsurance and other receivables and shareholder’s net investment, which were settled for cash in 2016 and 2015, respectively. MetLife, Inc. has made payments and received collections on behalf of the Company. Such net amounts, as well as amortization of deferred credit and committed facility structuring costs and debt issuance costs incurred by MetLife, Inc. on behalf of the Company, are recorded as non-cash net contributions of capital. During the years ended December 31, 2017 , 2016 and 2015 , MetLife, Inc. made non-cash net capital contributions of $60 million , $47 million and $14 million , respectively, in the forms of payment of letters of credit fees and amortization of deferred credit and committed facility structuring costs and debt issuance costs incurred on the Company’s behalf, partially offset by investment income, net of interest expense, related to the MRSC collateral financing arrangement collected on the Company’s behalf. See Note 9 . Prior to the Separation, certain transactions related to expense allocations were settled through shareholder’s net investment. Cash Distributions On August 3, 2017, Brighthouse Financial, Inc. made a cash distribution in an aggregate amount of $1.8 billion to MetLife, Inc., the sole holder of Brighthouse Financial, Inc. common stock as of the record date for the distribution. In April 2017, MetLife, Inc. and MRSC terminated a collateral financing arrangement and the obligation outstanding was extinguished utilizing assets held in trust. The remaining assets held in trust of $590 million were returned to MetLife, Inc., resulting in a decrease in shareholder’s net investment. See Note 9. During the years ended December 31, 2017, 2016 and 2015, dividends totaling $0 , $556 million and $699 million , respectively, were paid to MetLife, Inc. or one of its subsidiaries by Brighthouse Life Insurance Company and NELICO, resulting in a decrease in shareholder’s net investment. The Company paid cash distributions to certain MetLife affiliates related to a profit sharing agreement with Brighthouse Advisers of $40 million , $78 million and $72 million , for the years ended December 31, 2017 , 2016 and 2015 , respectively. Noncontrolling Interests On June 20, 2017, BH Holdings issued $50 million aggregate liquidation preference of fixed rate cumulative preferred units to MetLife, Inc., which MetLife subsequently resold to unaffiliated third parties. These preferred units are reported as noncontrolling interests on the consolidated and combined balance sheets. On April 28, 2017, BRCD issued $15 million of fixed to floating rate cumulative preferred stock, Series A preferred stock, to an affiliate of MetLife, Inc. These Series A preferred stock are reported as noncontrolling interests on the consolidated and combined balance sheets. Stock-Based Compensation Plans The Company does not currently issue equity awards. However, on August 9, 2017, equity awards were authorized to be made to the Company’s executive officers, independent non-employee members of the Board of Directors and certain other employees of the Company, which were converted into a number of restricted stock units based upon the closing price of the Company’s common stock on September 8, 2017 (the “Founders’ Grants”). All long-term equity awards, including the Founders’ Grants, were made pursuant to an equity compensation plan that is subject to approval of the Company’s stockholders. No compensation expense has been recognized for these awards. Statutory Equity and Income The states of domicile of the Company’s insurance subsidiaries impose risk-based capital ( “RBC” ) requirements that were developed by the National Association of Insurance Commissioners ( “NAIC” ). Regulatory compliance is determined by a ratio of a company’s total adjusted capital, calculated in the manner prescribed by the NAIC ( “TAC” ) to its authorized control level RBC, calculated in the manner prescribed by the NAIC ( “ACL RBC” ), based on the statutory-based filed financial statements. Companies below specific trigger levels or ratios are classified by their respective levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences is twice ACL RBC. The RBC ratios for the Company’s insurance subsidiaries were each in excess of 400% for all periods presented. The Company’s insurance subsidiaries prepare statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile. Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, reporting of reinsurance agreements and valuing investments and deferred tax assets on a different basis. The Company’s insurance subsidiaries have no material state prescribed accounting practices. The tables below present amounts from the Company’s insurance subsidiaries, which are derived from the statutory-basis financial statements as filed with the insurance regulators. Statutory net income (loss) was as follows: Years Ended December 31, Company State of Domicile 2017 2016 2015 (In millions) Brighthouse Life Insurance Company Delaware $ (425 ) $ 1,186 $ (1,022 ) New England Life Insurance Company Massachusetts $ 68 $ 109 $ 157 Statutory capital and surplus was as follows at: December 31, Company 2017 2016 (In millions) Brighthouse Life Insurance Company $ 5,594 $ 4,374 New England Life Insurance Company $ 483 $ 455 The Company has a reinsurance subsidiary, BRCD that was formed in 2017 as the result of the merger of certain other affiliated captive reinsurance subsidiaries. BRCD reinsures risks including level premium term life and ULSG assumed from other Brighthouse Life Insurance Company subsidiaries. BRCD, with the explicit permission of the Delaware Commissioner, has included, as admitted assets, the value of credit-linked notes, serving as collateral, which resulted in higher statutory capital and surplus of $8.3 billion for the year ended December 31, 2017. BRCD’s RBC would have triggered a regulatory event without the use of the state prescribed practice. Prior to the formation of BRCD and related merger, the legacy MetLife captive reinsurance subsidiaries included in the statutory merger and formation of BRCD had certain state prescribed accounting practices. MRV Cell with the explicit permission of the Commissioner of Insurance of the State of Vermont, included, as admitted assets, the value of letters of credit serving as collateral for reinsurance credit taken by various affiliated cedants, in connection with reinsurance agreements entered into between MRV Cell and the various affiliated cedants, which resulted in higher statutory capital and surplus of $3.0 billion for the year ended December 31, 2016. MRV Cell’s RBC would have triggered a regulatory event without the use of the state prescribed practice. MRD, with the explicit permission of the Delaware Commissioner, previously included, as admitted assets, the value of letters of credit issued to MRD, serving as collateral, which resulted in higher statutory capital and surplus of $260 million for the year ended December 31, 2016. MRD’s RBC would not have triggered a regulatory event without the use of the state prescribed practice. The statutory net income (loss) of the Company’s affiliate reinsurance companies was ($1.6) billion , ($363) million and ($372) million for the years ended December 2017, 2016 and 2015, respectively, and the combined statutory capital and surplus, including the aforementioned prescribed practices, were $972 million and $2.6 billion at December 31, 2017 and 2016, respectively. Dividend Restrictions The table below sets forth the dividends permitted to be paid by the Company’s insurance companies without insurance regulatory approval and dividends paid: 2018 2017 2016 Company Permitted Without Approval (1) Paid (2) Paid (2) (In millions) Brighthouse Life Insurance Company $ 84 $ — $ 261 New England Life Insurance Company $ 65 $ 106 $ 295 (3) ______________ (1) Reflects dividend amounts that may be paid during 2018 without prior regulatory approval. However, because dividend tests may be based on dividends previously paid over rolling 12-month periods, if paid before a specified date during 2018, some or all of such dividends may require regulatory approval. (2) Reflects all amounts paid, including those requiring regulatory approval. (3) An extraordinary cash dividend paid to its former parent, MetLife, Inc. Under the Delaware Insurance Code, Brighthouse Life Insurance Company is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend as long as the amount of the dividend when aggregated with all other dividends in the preceding 12 months does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its net statutory gain from operations for the immediately preceding calendar year (excluding realized capital gains), not including pro rata distributions of Brighthouse Life Insurance Company’s own securities. Brighthouse Life Insurance Company will be permitted to pay a stockholder dividend in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Delaware Commissioner and the Delaware Commissioner either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as “unassigned funds (surplus)”) as of the immediately preceding calendar year requires insurance regulatory approval. Under the Delaware Insurance Code, the Delaware Commissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. Under the Massachusetts State Insurance Law, NELICO is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend as long as the aggregate amount of the dividend, when aggregated with all other dividends paid in the preceding 12 months, does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year, not including pro rata distributions of NELICO’s own securities. NELICO will be permitted to pay a dividend in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Massachusetts Commissioner of Insurance (the “Massachusetts Commissioner”) and the Massachusetts Commissioner either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as “unassigned funds (surplus)”) as of the last filed annual statutory statement requires insurance regulatory approval. Under the Massachusetts State Insurance Law, the Massachusetts Commissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. Under BRCD’s plan of operations, no dividend or distribution may be made by BRCD without the prior approval of the Delaware Commissioner. During the year ended December 31, 2017, BRCD paid an extraordinary cash dividend of $535 million to Brighthouse Life Insurance Company. Accumulated Other Comprehensive Income (Loss) Information regarding changes in the balances of each component of AOCI was as follows: Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance at December 31, 2014 $ 2,555 $ 190 $ (15 ) $ (15 ) $ 2,715 OCI before reclassifications (1,975 ) 102 (25 ) (10 ) (1,908 ) Deferred income tax benefit (expense) 692 (36 ) 8 4 668 AOCI before reclassifications, net of income tax 1,272 256 (32 ) (21 ) 1,475 Amounts reclassified from AOCI 77 (7 ) — 4 74 Deferred income tax benefit (expense) (27 ) 2 — (1 ) (26 ) Amounts reclassified from AOCI, net of income tax 50 (5 ) — 3 48 Balance at December 31, 2015 1,322 251 (32 ) (18 ) 1,523 OCI before reclassifications (465 ) 71 1 2 (391 ) Deferred income tax benefit (expense) 158 (25 ) — (1 ) 132 AOCI before reclassifications, net of income tax 1,015 297 (31 ) (17 ) 1,264 Amounts reclassified from AOCI 44 (45 ) — 1 — Deferred income tax benefit (expense) (15 ) 16 — — 1 Amounts reclassified from AOCI, net of income tax 29 (29 ) — 1 1 Balance at December 31, 2016 1,044 268 (31 ) (16 ) 1,265 OCI before reclassifications 276 (157 ) 10 (19 ) 110 Deferred income tax benefit (expense) (94 ) 55 (3 ) 14 (28 ) AOCI before reclassifications, net of income tax 1,226 166 (24 ) (21 ) 1,347 Amounts reclassified from AOCI 60 (18 ) — — 42 Deferred income tax benefit (expense) (2) 286 6 — (5 ) 287 Amounts reclassified from AOCI, net of income tax 346 (12 ) — (5 ) 329 Balance at December 31, 2017 $ 1,572 $ 154 $ (24 ) $ (26 ) $ 1,676 __________________ (1) See Note 6 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI. (2) Includes the $306 million and ($5) million impacts of the Tax Act related to unrealized investments gains (losses), net of related offsets and defined benefit plans adjustment, respectively. See Note 1 for more information. Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated and Combined Statements of Operations and Comprehensive Income (Loss) Locations Years Ended December 31, 2017 2016 2015 (In millions) ` Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ (15 ) $ (51 ) $ (79 ) Net investment gains (losses) Net unrealized investment gains (losses) 3 3 13 Net investment income Net unrealized investment gains (losses) (48 ) 4 (11 ) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax (60 ) (44 ) (77 ) Income tax (expense) benefit (286 ) 15 27 Net unrealized investment gains (losses), net of income tax $ (346 ) $ (29 ) $ (50 ) Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps $ — $ 33 $ 1 Net derivative gains (losses) Interest rate swaps 3 3 1 Net investment income Interest rate forwards 2 2 2 Net derivative gains (losses) Interest rate forwards 3 2 2 Net investment income Foreign currency swaps 10 5 — Net derivative gains (losses) Credit forwards — — 1 Net investment income Gains (losses) on cash flow hedges, before income tax 18 45 7 Income tax (expense) benefit (6 ) (16 ) (2 ) Gains (losses) on cash flow hedges, net of income tax $ 12 $ 29 $ 5 Defined benefit plans adjustment: Amortization of net actuarial gains (losses) $ — $ (1 ) $ (2 ) Amortization of prior service (costs) credit — — (2 ) Amortization of defined benefit plan items, before income tax — (1 ) (4 ) Income tax (expense) benefit 5 — 1 Amortization of defined benefit plan items, net of income tax 5 (1 ) (3 ) Total reclassifications, net of income tax $ (329 ) $ (1 ) $ (48 ) |
Other Expenses
Other Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Expenses | 11. Other Expenses Information on other expenses was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Compensation $ 287 $ 400 $ 455 Commissions 806 637 715 Volume-related costs 486 562 552 Related party expenses on ceded and assumed reinsurance 36 22 17 Capitalization of DAC (260 ) (334 ) (399 ) Interest expense on debt 153 175 170 Goodwill impairment (1) — 161 — Premium taxes, licenses and fees 64 63 76 Professional services 292 89 65 Rent and related expenses 13 47 56 Other 606 462 413 Total other expenses $ 2,483 $ 2,284 $ 2,120 __________________ (1) Based on a quantitative analysis performed for the Run-off reporting unit, it was determined that the goodwill associated with this reporting unit was not recoverable and resulted in the impairment of the entire goodwill balance. Capitalization of DAC See Note 4 for additional information on the capitalization of DAC. Interest Expense on Debt See Note 9 for attribution of interest expense by debt issuance. Interest expense on debt includes interest expense related to CSEs. Related Party Expenses See Note 16 for a discussion of related party expenses included in the table above. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 12. Employee Benefit Plans Pension NELICO sponsors a qualified and a nonqualified defined benefit pension plan, as well as unfunded other postretirement benefit plans. Effective December 31, 2014, the NELICO sponsored pension and other postretirement plans were amended to eliminate benefit accruals prosp ectively and are closed to new entrants. All benefit payments related to the nonqualified defined benefit pension plan and other postretirement benefit plans are subject to reimbursement annually, on an after tax basis, by MetLife. Formerly, the Company’s employees, sales representatives and retirees participated in defined benefit pension plans sponsored by MLIC, a former affiliate. The Company also provided postemployment and postretirement medical and life insurance benefits for certain retired employees through plans sponsored by MLIC. Participation in these plans ended December 31, 2016. These plans also included participants from other affiliates of MLIC. The Company accounted for these plans as multiemployer benefit plans and as a result the assets, obligations and other comprehensive gains and losses of these benefit plans were not included in the accompanying combined balance sheets or the additional disclosure below. The Company’s share of pension expense was $0 , $31 million and $24 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The pension expense associated with its employees that participate in the plans is included in other expenses. Obligations and Funded Status December 31, 2017 2016 Pension Other Postretirement Benefits Pension Benefits (1) Other Postretirement Benefits (In millions) Change in benefit obligations: Benefit obligations at January 1, $ 219 $ 37 $ 213 $ 32 Interest costs 9 2 9 2 Plan participants’ contributions — 3 — 2 Net actuarial (gains) losses 11 6 5 (2 ) Change in benefits and other 5 — — 9 Benefits paid (11 ) (8 ) (8 ) (6 ) Benefit obligations at December 31, 233 40 219 37 Change in plan assets: Estimated fair value of plan assets at January 1, 155 — 148 — Actual return on plan assets 17 — 11 — Plan participants’ contributions — 3 — 2 Employer contributions 4 5 4 4 Benefits paid (11 ) (8 ) (8 ) (6 ) Estimated fair value of plan assets at December 31, 165 — 155 — Over (under) funded status at December 31, $ (68 ) $ (40 ) $ (64 ) $ (37 ) Amounts recognized in the consolidated balance sheets: Other assets $ 3 $ — $ 2 $ — Other liabilities (71 ) (40 ) (66 ) (37 ) Net amount recognized $ (68 ) $ (40 ) $ (64 ) $ (37 ) AOCI: Net actuarial (gains) losses $ 31 $ 3 $ 28 $ (3 ) Prior service costs (credit) — — — — AOCI, before income tax $ 31 $ 3 $ 28 $ (3 ) Accumulated benefit obligation $ 233 N/A $ 219 N/A __________________ (1) Includes nonqualified unfunded plan, for which the aggregate projected benefit obligation (PBO) was $71 million and $66 million at December 31, 2017 and 2016 , respectively. Information for pension plans with accumulated benefit obligations in excess of plan assets was as follows at: December 31, 2017 2016 (In millions) Projected benefit obligations $ 71 $ 66 Accumulated benefit obligations $ 71 $ 66 Estimated fair value of plan assets $ — $ — The PBO exceeded assets for only the nonqualified unfunded pension plan at both December 31, 2017 and 2016 . The estimated net actuarial (gains) losses and prior service costs (credit) for the defined benefit pension plans and other postretirement benefit plans that will be amortized from AOCI into net periodic benefit costs over the next year are not significant. Assumptions The assumptions used in determining benefit obligations were 3.9% and 4.3% at December 31, 2017 and 2016, respectively, using the weighted average discount rate. Assumptions used in determining net periodic benefit costs were as follows: Years Ended December 31, Pension Benefits 2017 2016 2015 Weighted average discount rate 4.30% 4.42% 4.10% Weighted average expected rate of return on plan assets (1) 5.75% 5.75% 5.75% Rate of compensation increase N/A N/A N/A __________________ (1) T he weighted expected return on plan assets is currently anticipated to be between 4.75% and 5.75% , which will be determined when the Brighthouse benefit plan investment committee reviews and approves the entirety of the investment policy including the future investment allocation targets on a post-Separation basis. The weighted average discount rate is determined annually based on the yield, measured on a yield to worst basis, of a hypothetical portfolio constructed of high quality debt instruments available on the valuation date, which would provide the necessary future cash flows to pay the aggregate PBO when due. The weighted average expected rate of return on plan assets is based on anticipated performance of the various asset sectors in which the plan invests, weighted by target allocation percentages. Anticipated future performance is based on long-term historical returns of the plan assets by sector, adjusted for the Company’s long-term expectations on the performance of the markets. While the precise expected rate of return derived using this approach will fluctuate from year to year, the Company’s policy is to hold this long-term assumption constant as long as it remains within reasonable tolerance from the derived rate. Plan Assets The asset of the qualified pension plan (the “Invested Plan”) are managed by MetLife Separate Accounts in accordance with investment policies consistent with the longer-term nature of related benefit obligations and within prudent risk parameters. Specifically, investment policies are oriented toward (i) maximizing the Invested Plan’s funded status; (ii) minimizing the volatility of the Invested Plan’s funded status; (iii) generating asset returns that exceed liability increases; and (iv) targeting rates of return in excess of a custom benchmark and industry standards over appropriate reference time periods. These goals are expected to be met through identifying appropriate and diversified asset classes and allocations, ensuring adequate liquidity to pay benefits and expenses when due and controlling the costs of administering and managing the Invested Plan’s investments. Independent investment consultants are periodically used to evaluate the investment risk of Invested Plan’s assets relative to liabilities, analyze the economic and portfolio impact of various asset allocations and management strategies and to recommend asset allocations. Derivative contracts may be used to reduce investment risk, to manage duration and to replicate the risk/return profile of an asset or asset class. Derivatives may not be used to leverage a portfolio in any manner, such as to magnify exposure to an asset, asset class, interest rates or any other financial variable. Derivatives are also prohibited for use in creating exposures to securities, currencies, indices or any other financial variable that is otherwise restricted. The table below summarizes the actual weighted average allocation of the estimated fair value of total plan assets by asset class at December 31 for the years indicated and the approved target allocation by major asset class at December 31, 2017 for the Invested Plan: December 31, 2017 2016 Target (1) Actual Actual Allocation Asset Class Fixed maturity securities 80 % 100 % 79 % Equity securities 20 % — % 21 % Total assets 100 % 100 % 100 % __________________ (1) In an effort to limit variability during the Separation, MetLife changed the actual allocation to 100% fixed maturity securities, which was permitted under the approved investment policy so long as the change did not remain in place without action by the appropriate governing body with respect thereto for a period of more than one year. Brighthouse’s benefit plan investment committee is in the process of reviewing the entirety of the investment policy including the future investment allocation targets on a post-Separation basis and update the policy as appropriate. Estimated Fair Value The pension benefit plan assets are categorized into a three-level fair value hierarchy, as described in Note 8 . The pension plan assets measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are summarized as follows: December 31, 2017 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Interest in insurance company separate accounts $ 45 $ 102 $ — $ 147 Insurance company general accounts — — 18 18 Total assets $ 45 $ 102 $ 18 $ 165 December 31, 2016 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Interest in insurance company separate accounts $ 72 $ 83 $ — $ 155 Insurance company general accounts — — — — Total assets $ 72 $ 83 $ — $ 155 For each of the years ended December 31, 2017 and 2016 , the changes to pension plan assets invested in insurance company separate and general accounts measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs were $18 million and not significant, respectively. Expected Future Contributions and Benefit Payments It is the Company’s practice to make contributions to the qualified pension plan to comply with minimum funding requirements of ERISA, the Pension Protection Act of 2006, the Code and the applicable rules and regulations. In accordance with such practice, no contributions are required for 2018 . The Company expects to make no discretionary contributions to the qualified pension plan in 2018. For information on employer contributions, see “— Obligations and Funded Status.” Benefit payments due under the nonqualified pension and unfunded postretirement plans are primarily funded from the Company’s general assets as they become due under the provision of the plans. As a result, benefit payments equal employer and employee contributions for these plans. The Company does not expect contributions to be material in 2018 . As stated above, all benefit payments related to the nonqualified defined pension plan and other postretirement benefit plans are subject to reimbursement annually, on an after tax basis, by MetLife. Gross benefit payments for the next 10 years before MetLife reimbursement on an after tax basis are expected to be as follows: Pension Benefits Other Postretirement Benefits (In millions) 2018 $ 11 $ 4 2019 $ 11 $ 4 2020 $ 12 $ 4 2021 $ 13 $ 4 2022 $ 13 $ 3 2023-2027 $ 68 $ 14 Defined Contribution Plans Brighthouse Services sponsors qualified and nonqualified defined contribution plans. For the year ended December 31, 2017 the total employer match for the qualified defined contribution plan was $8 million and the total accrual for the nonqualified deferred compensation plan was $2 million . |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 13. Income Tax The provision for income tax was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Current: Federal $ 406 $ (305 ) $ 33 State and local 6 — — Foreign 18 — — Subtotal 430 (305 ) 33 Deferred: Federal (667 ) (1,461 ) 310 State and local — — — Foreign — — — Subtotal (667 ) (1,461 ) 310 Provision for income tax expense (benefit) $ (237 ) $ (1,766 ) $ 343 The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Tax provision at U.S. statutory rate $ (215 ) $ (1,647 ) $ 511 Tax effect of: Excess loss account - Separation from MetLife (1) 1,088 — — Rate revaluation due to tax reform (2) (803 ) — — Sale of subsidiaries (138 ) — — Dividend received deduction (130 ) (123 ) (144 ) Other tax credits (30 ) (18 ) (13 ) Goodwill impairment — 4 — Other, net (9 ) 18 (11 ) Provision for income tax expense (benefit) $ (237 ) $ (1,766 ) $ 343 __________________ (1) For the year ended December 31, 2017, the Company recognized a $1.1 billion non-cash charge to provision for income tax expense and corresponding capital contribution from MetLife. This tax obligation was in connection with the Separation and MetLife, Inc. is responsible for this obligation through a Tax Separation Agreement. (2) For the year ended December 31, 2017, the Company recognized a $725 million benefit in net income from remeasurement of net deferred tax liabilities in connection with the Tax Act discussed in Note 1. Additionally, as a result of the reduction in the statutory tax rate under the Tax Act, the liability to MetLife under the Tax Receivables Agreement (as defined below) was reduced by $222 million , which is included in other revenues and is non-taxable. As the Company completes the analysis of data relevant to the Tax Act, as well as interprets any additional guidance issued by the Internal Revenue Service (“IRS”), U.S. Department of the Treasury, or other relevant organizations, it may make adjustments to these amounts. Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at: December 31, 2017 2016 (In millions) Deferred income tax assets: Tax credit carryforwards $ 202 $ 199 Net operating loss carryforwards 422 — Employee benefit 3 54 Intangibles 227 2 Investments, including derivatives 302 347 Other 95 72 Total deferred income tax assets 1,251 674 Less: valuation allowance 11 — Total net deferred income tax assets 1,240 674 Deferred income tax liabilities: Policyholder liabilities and receivables 819 525 Net unrealized investment gains 459 712 DAC 889 1,493 Total deferred income tax liabilities 2,167 2,730 Net deferred income tax asset (liability) $ (927 ) $ (2,056 ) At December 31, 2017, the Company had net operating loss carryforwards of approximately $2.0 billion and the Company had recorded a related deferred tax asset of $422 million which expires in years 2033 - 2037 . The following table sets forth the general business credits, foreign tax credits, and other credit carryforwards for tax purposes at December 31, 2017. Tax Credit Carryforwards General Business Credits Foreign Tax Credits Other (In millions) Expiration 2018-2022 $ — $ — $ — 2023-2027 — 14 — 2028-2032 — — — 2033-2037 10 — — Indefinite — — 178 $ 10 $ 14 $ 178 The Company’s liability for unrecognized tax benefits may increase or decrease in the next 12 months. A reasonable estimate of the increase or decrease cannot be made at this time. However, the Company continues to believe that the ultimate resolution of the pending issues will not result in a material change to its combined and consolidated financial statements, although the resolution of income tax matters could impact the Company’s effective tax rate for a particular future period. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Balance at January 1, $ 58 $ 64 $ 60 Additions for tax positions of prior years — 2 5 Reductions for tax positions of prior years (4 ) (9 ) — Additions for tax positions of current year 3 5 3 Reductions for tax positions of current year (2 ) — — Settlements with tax authorities (32 ) (4 ) (4 ) Balance at December 31, $ 23 $ 58 $ 64 Unrecognized tax benefits that, if recognized would impact the effective rate $ 23 $ 58 $ 53 The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses, while penalties are included in income tax expense. Interest related to unrecognized tax benefits was not significant. The Company had no penalties for each of the years ended Decemb er 31, 2017 , 2016 and 2015 . The d ividend received deduction reduces the amount of dividend income subject to tax and is a significant component of the difference between the actual tax expense and expected amount determined using the federal statutory tax rate . The Tax Act has changed the d ividend received deduction amount applicable to insurance companies to a 70% company share and a 50% dividend received deduction for eligible dividends. For the years ended December 31, 2017 , 2016 , and 2015 , the Company recognized an income tax benefit of $137 million , $101 million and $154 million , respectively, related to the separate account d ividend received deduction . The 2017 benefit included a benefit of $7 million related to a true-up of the 2016 tax return. The 2016 benefit included an expense of $21 million related to a true-up of the 2015 tax return. The 2015 benefit included a benefit of $11 million related to a true-up of the 2014 tax return . The Company is under continuous examination by the IRS and other tax authorities in jurisdictions in which the Company has significant business operations. The income tax years under examination vary by jurisdiction and subsidiary. The Company is no longer subject to U.S. federal, state or local income tax examinations for years prior to 2007, except for 2006 where the IRS disallowance relates to policyholder liability deductions and the Company is engaged with IRS appeals. Management believes it has established adequate tax liabilities, and final resolution of the audit for the years 2006 and forward is not expected to have a material impact on the Company’s combined and consolidated financial statements. Tax Sharing Agreements For the periods prior to the Separation from MetLife, Brighthouse Financial, Inc. and its subsidiaries will file a consolidated U.S. life and non-life federal income tax return in accordance with the provisions of the Internal Revenue Code of 1986, as amended (the “Code”). Current taxes (and the benefits of tax attributes such as losses) are allocated to Brighthouse Financial, Inc., and its includable subsidiaries, under the consolidated tax return regulations and a tax sharing agreement with MetLife. This tax sharing agreement states that federal taxes will be computed on a modified separate return basis with benefits for losses. For periods after the Separation, Brighthouse Financial, Inc. and its subsidiaries entered into two separate tax sharing agreements. Brighthouse Life Insurance Company and any directly owned life insurance and reinsurance subsidiaries (including BHNY and BRCD) entered in a tax sharing agreement to join a life consolidated federal income tax return. Brighthouse Financial, Inc. and its includable subsidiaries entered into a tax sharing agreement to join a nonlife consolidated federal income tax return. NELICO and the nonlife subsidiaries of Brighthouse Life Insurance Company will file their own U.S. federal income tax returns. The tax sharing agreements state that federal taxes are generally allocated to the Company as if each entity were filing its own separate company tax return, except that net operating losses and certain other tax attributes are characterized as realized (or realizable) when those tax attributes are realized (or realizable) by the Company. Related Party Income Tax Transactions In connection with the Separation, the Company entered into a tax receivables agreement (the “Tax Receivables Agreement”) with MetLife that provides MetLife with the right to receive as partial consideration for its contribution of assets to Brighthouse Financial, Inc. future payments from Brighthouse Financial, Inc., equal to 86% of the amount of cash savings, if any, in U.S. federal income tax that Brighthouse Financial, Inc. and its subsidiaries actually, or are deemed to, realize as a result of the utilization of Brighthouse Financial, Inc. and its subsidiaries’ net operating losses, capital losses, tax basis and amortization or depreciation deductions in respect of certain tax benefits it may realize as a result of certain transactions involved in the Separation. In the third quarter of 2017, in connection with the Tax Receivables Agreement, the Company recorded a payable to MetLife of $553 million in other liabilities, offset with a decrease to additional paid-in capital. As a result of the reduction in the statutory tax rates under the Tax Act, the liability to MetLife under the Tax Receivables Agreement was reduced to $331 million at December 31, 2017. The Company also entered into a tax separation agreement with MetLife (the “Tax Separation Agreement”). Among other things, the Tax Separation Agreement governs the allocation between MetLife and us of the responsibility for the taxes of the MetLife group. The Tax Separation Agreement also allocates rights, obligations and responsibilities in connection with certain administrative matters relating to the preparation of tax returns and control of tax audits and other proceedings relating to taxes. In October 2017, MetLife paid $729 million to Brighthouse under the Tax Separation Agreement. At December 31, 2017, the current income tax recoverable included $873 million related to this agreement. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 14. Earnings Per Common Share The following table sets forth the calculation of basic earnings per share (“EPS”) based on net income (loss) divided by the basic weighted average number of common shares. Years Ended December 31, 2017 Pro forma 2016 (1) Pro forma 2015 (1) (In millions, except share and per share data) Net income (loss) $ (378 ) $ (2,939 ) $ 1,119 Weighted average common shares outstanding: Basic 119,773,106 119,773,106 119,773,106 Earnings per common share: Basic $ (3.16 ) $ (24.54 ) $ 9.34 __________________ (1) On August 4, 2017, following the completion of the Separation, 119,773,106 shares of Brighthouse Financial, Inc. common stock were outstanding. This number of shares remained outstanding at December 31, 2017 and is utilized to calculate EPS for the years ended December 31, 2016 and 2015. |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Commitments and Guarantees | 15. Contingencies, Commitments and Guarantees Contingencies Litigation The Company is a defendant in a number of litigation matters. In some of the matters, large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at December 31, 2017 . Matters as to Which an Estimate Can Be Made For some loss contingency matters, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. As of December 31, 2017 , the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $10 million . Matters as to Which an Estimate Cannot Be Made For other matters, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. Diversified Lending Group Litigations Hartshorne v. NELICO, et al. (Los Angeles County Superior Court, filed March 25, 2015) Plaintiffs have named NELICO, MetLife, Inc. and MetLife Securities, Inc. in twelve related lawsuits in California state court alleging various causes of action including multiple negligence and statutory claims relating to the Diversified Lending Group Ponzi scheme. All but one of the plaintiffs have resolved their claims with the defendants. The Company intends to vigorously defend the remaining claim. Sales Practices Claims Over the past several years, the Company has faced claims and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds or other products. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its combined and consolidated financial statements for all probable and reasonably estimable losses for sales practices matters. Unclaimed Property Litigation Total Asset Recovery Services, LLC on its own behalf and on behalf of the State of New York v. Brighthouse Financial, Inc. et al (Supreme Court, New York County, NY, second amended complaint filed November 17, 2017). Total Asset Recovery Services, LLC. (the “Relator”) has brought a qui tam action against Brighthouse Financial, Inc. and its subsidiaries and affiliates under the New York False Claims Act seeking to recover damages on behalf of the State of New York. The action originally was filed under seal on or about December 3, 2010. The State of New York declined to intervene in the action, and the Relator is now prosecuting the action. The Relator alleges that from on or about April 1, 1986 and continuing annually through on or about September 10, 2017, the defendants violated New York State Finance Law Section 189 (1) (g) by failing to timely report and deliver unclaimed insurance property to the State of New York. The Relator is seeking, among other things, treble damages, penalties, expenses and attorneys’ fees and prejudgment interest. No specific dollar amount of damages is specified by the Relator who also is suing numerous insurance companies and John Doe defendants. The Brighthouse defendants intend to defend this action vigorously. Summary Various litigation, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s combined and consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, investor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s combined and consolidated net income or cash flows in particular quarterly or annual periods. Insolvency Assessments Most of the jurisdictions in which the Company is admitted to transact business require insurers doing business within the jurisdiction to participate in guaranty associations, which are organized to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. Assets and liabilities held for insolvency assessments were as follows: December 31, 2017 2016 (In millions) Other Assets: Premium tax offset for future discounted and undiscounted assessments $ 14 $ 13 Premium tax offsets currently available for paid assessments 5 9 Total $ 19 $ 22 Other Liabilities: Insolvency assessments $ 18 $ 17 Commitments Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $388 million and $348 million at December 31, 2017 and 2016 , respectively. Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments The Company commits to fund partnership investments and to lend funds under bank credit facilities and private corporate bond investments. The amounts of these unfunded commitments were $1.4 billion and $1.3 billion at December 31, 2017 and 2016 , respectively. Other Commitments The Company had entered into collateral arrangements with former affiliates, which required the transfer of collateral in connection with secured demand notes. These arrangements expired during the first quarter of 2017 and the Company is no longer transferring collateral to custody accounts. At December 31, 2016 , the Company had agreed to fund up to $20 million of cash upon the request by these former affiliates and had transferred collateral consisting of various securities with a fair market value of $25 million to custody accounts to secure the demand notes. Each of these former affiliates was permitted by contract to sell or re-pledge this collateral. Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $203 million , with a cumulative maximum of $209 million , while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. The Company’s recorded liabilities were $2 million at both December 31, 2017 and 2016 for indemnities, guarantees and commitments. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 17. Quarterly Results of Operations (Unaudited) The unaudited quarterly results of operations for 2017 and 2016 are summarized in the table below: Three Months Ended March 31, June 30, September 30, December 31, (In millions, except per share data) 2017 Total revenues $ 965 $ 2,025 $ 1,972 $ 1,880 Total expenses $ 1,555 $ 1,704 $ 2,096 $ 2,102 Net income (loss) $ (349 ) $ 246 $ (943 ) $ 668 Basic earnings per common share (1) $ (2.91 ) $ 2.05 $ (7.87 ) $ 5.57 2016 Total revenues $ 2,389 $ (584 ) $ 1,766 $ (553 ) Total expenses $ 1,825 $ 1,656 $ 2,018 $ 2,224 Net income (loss) $ 407 $ (1,423 ) $ (158 ) $ (1,765 ) Basic earnings per common share (1) $ 3.40 $ (11.88 ) $ (1.32 ) $ (14.74 ) __________________ (1) See Note 14 for additional information on the calculation of EPS. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 16. Related Party Transactions The Company had not historically operated as a standalone business prior to the Separation, and as a result had various existing arrangements with MetLife for services necessary to conduct its activities. Subsequent to the Separation, certain of such services continued, as provided for under a master service agreement and various transition services agreements entered into in connection with the Separation. Non-Broker-Dealer Transactions The following table summarizes income and expense from transactions with MetLife (excluding broker-dealer transactions) for the years indicated: Years Ended December 31, 2017 2016 2015 (In millions) Income $ (606 ) $ (280 ) $ (178 ) Expense $ 378 $ 332 $ 802 The following table summarizes assets and liabilities from transactions with MetLife (excluding broker-dealer transactions) at: December 31, 2017 2016 (In millions) Assets $ 2,907 $ 4,805 Liabilities $ 2,178 $ 7,763 The material arrangements between the Company and MetLife are as follows: Reinsurance Agreements The Company has reinsurance agreements with certain of MetLife, Inc.’s subsidiaries. See Note 5 for further discussion of the related party reinsurance agreements. Financing Arrangements Prior to the Separation, the Company had surplus notes outstanding to MetLife, Inc., as well as a collateral financing arrangement with a third party that involved MetLife, Inc. See Note 9 for more information. Investment Transactions Prior to the Separation, the Company had extended loans to certain subsidiaries of MetLife, Inc. Additionally, in the ordinary course of business, the Company had previously transferred invested assets, primarily consisting of fixed maturity securities, to and from former affiliates. See Note 6 for further discussion of the related party investment transactions. Shared Services and Overhead Allocations MetLife provides the Company certain services, which include, but are not limited to, treasury, financial planning and analysis, legal, human resources, tax planning, internal audit, financial reporting, and information technology. In 2017, the Company is charged for these services through a transition services agreement and allocated to the legal entities and products within the Company. When specific identification to a particular legal entity and/or product is not practicable, an allocation methodology based on various performance measures or activity-based costing, such as sales, new policies/contracts issued, reserves, and in-force policy counts is used. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the Company and/or affiliate. Management believes that the methods used to allocate expenses under these arrangements are reasonable. Expenses incurred with MetLife related to these arrangements, recorded in other expenses, were $390 million , $868 million and $1.1 billion for the years ended December 31, 2017 , 2016 and 2015 , respectively. Employee Matters Agreement On August 4, 2017, an employee matters agreement (“EMA”) between Brighthouse Financial, Inc. and MetLife, Inc. became effective. Under this agreement, MetLife, Inc. has agreed to reimburse Brighthouse Financial, Inc. on an annual basis for any and all payments of benefits required by underfunded plans made by any legal entity owned by Brighthouse Financial, Inc. related to certain NELICO employee benefit plan liabilities. At December 31, 2017, the Company’s receivable from MetLife, Inc. under the EMA was $192 million , and is included in premiums, reinsurance and other receivables. Broker-Dealer Transactions Beginning in March 2017, Brighthouse Securities, LLC, a registered broker-dealer affiliate, began distributing certain of the Company’s existing and future variable insurance products, and the MetLife broker-dealers discontinued such distributions. Prior to March 2017, the Company recognized related party revenues and expenses arising from transactions with MetLife broker-dealers that previously sold the Company’s variable annuity and life products. The related party expense for the Company was commissions collected on the sale of variable products by the Company and passed through to the broker-dealer. The related party revenue for the Company was fee income from trusts and mutual funds whose shares serve as investment options of policyholders of the Company. The following table summarizes income and expense from transactions with MetLife broker-dealers for the years indicated: Years Ended December 31, 2017 2016 2015 (In millions) Fee income $ 43 $ 216 $ 235 Commission expense $ 129 $ 649 $ 652 The following table summarizes assets and liabilities from transactions with MetLife broker-dealers at: December 31, 2017 2016 (In millions) Fee income receivables $ — $ 21 Secured demand notes $ — $ 20 |
Consolidated Summary of Investm
Consolidated Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Consolidated Summary of Investments - Other Than Investments in Related Parties | Schedule I Consolidated and Combined Summary of Investments — Other Than Investments in Related Parties December 31, 2017 (In millions) Types of Investments Cost or Estimated Fair Value Amount at Fixed maturity securities: Bonds: U.S. government and agency securities $ 14,548 $ 16,292 $ 16,292 State and political subdivision securities 3,635 4,181 4,181 Public utilities 2,145 2,447 2,447 Foreign government securities 1,152 1,309 1,309 All other corporate bonds 25,510 27,190 27,190 Total bonds 46,990 51,419 51,419 Mortgage-backed and asset-backed securities 12,945 13,229 13,229 Redeemable preferred stock 238 343 343 Total fixed maturity securities 60,173 $ 64,991 64,991 Equity securities: Non-redeemable preferred stock 129 $ 138 138 Common stock: Industrial, miscellaneous and all other 83 92 92 Public utilities — 2 2 Total equity securities 212 $ 232 232 Mortgage loans 10,742 10,742 Policy loans 1,523 1,523 Real estate joint ventures 433 433 Other limited partnership interests 1,669 1,669 Short-term investments 312 312 Other invested assets 2,436 2,436 Total investments $ 77,500 $ 82,338 ______________ (1) Cost or amortized cost for fixed maturity securities and mortgage loans represents original cost reduced by repayments, valuation allowances and impairments from other-than-temporary declines in estimated fair value that are charged to earnings and adjusted for amortization of premiums or accretion of discounts; for equity securities, cost represents original cost reduced by impairments from other-than-temporary declines in estimated fair value; for real estate joint ventures and other limited partnership interests, cost represents original cost reduced for impairments or original cost adjusted for equity in earnings and distributions. |
Condensed Financial Information
Condensed Financial Information (Parent Company) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information (Parent Company) | , Inc. Schedule II Condensed Financial Information (Parent Company Only) December 31, 2017 and 2016 (In thousands, except share and per share data) 2017 2016 Condensed Balance Sheets Assets Investments: Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $238,948 and $0, respectively) $ 236,946 $ — Investment in subsidiaries 17,810,226 — Total investments 18,047,172 — Cash and cash equivalents 325,528 1 Accrued investment income 945 — Receivable from former affiliate 191,570 — Current income tax recoverable 20,714 306 Other assets 8,205 15,870 Total assets $ 18,594,134 $ 16,177 Liabilities and Stockholders’ Equity Liabilities Long-term and short-term debt $ 3,702,071 $ — Payable to former affiliate 333,148 16,745 Deferred income tax liability 33,166 — Other liabilities 10,083 — Total liabilities 4,078,468 16,745 Stockholders’ Equity Common stock, par value $0.01 per share; 1,000,000,000 and 100,000 shares authorized, respectively; 119,773,106 and 100,000 shares issued and outstanding, respectively 1,198 1 Additional paid-in capital 12,432,449 — Retained earnings (deficit) 405,853 (569 ) Accumulated other comprehensive income (loss) 1,676,166 — Total stockholders’ equity 14,515,666 (568 ) Total liabilities and stockholders’ equity $ 18,594,134 $ 16,177 See accompanying notes to the condensed financial information. Brighthouse Financial, Inc. Schedule II Condensed Financial Information (continued) (Parent Company Only) For the Year Ended December 31, 2017 , and For the Period from August 1, 2016 (Date of Inception) to December 31, 2016 (In thousands) 2017 2016 Condensed Statements of Operations Revenues Equity in earnings (losses) of subsidiaries $ (565,979 ) $ — Net investment income 5,573 — Other revenues 221,834 — Net investment gains (losses) (237 ) — Net derivative gains (losses) 1,729 — Total revenues (337,080 ) — Expenses Credit facility fees 16,014 875 Other expenses 75,921 — Total expenses 91,935 875 Income (loss) before provision for income tax (429,015 ) (875 ) Provision for income tax expense (benefit) (50,897 ) (306 ) Net income (loss) $ (378,118 ) $ (569 ) Comprehensive income (loss) $ 33,000 $ (569 ) See accompanying notes to the condensed financial information. Brighthouse Financial, Inc. Schedule II Condensed Financial Information (continued) (Parent Company Only) For the Year Ended December 31, 2017 , and For the Period from August 1, 2016 (Date of Inception) to December 31, 2016 (In thousands) 2017 2016 Condensed Statements of Cash Flows Cash flows from operating activities Net income (loss) $ (378,118 ) $ (569 ) Equity in (earnings) losses of subsidiaries 565,979 — Distribution from subsidiary 50,000 — Other, net (252,310 ) 569 Net cash provided by (used in) operating activities (14,449 ) — Cash flows from investing activities Sales of fixed maturity securities 509,814 — Purchases of fixed maturity securities (748,972 ) — Capital contributions to subsidiaries (1,300,000 ) — Net cash provided by (used in) investing activities (1,539,158 ) — Cash flows from financing activities Long-term and short-term debt issued 3,724,375 — Debt issuance costs (39,187 ) — Issuance of common stock — 1 Distribution to MetLife, Inc. (1,798,000 ) — Credit facility fees (8,054 ) — Net cash provided by (used in) financing activities 1,879,134 1 Change in cash and cash equivalents 325,527 1 Cash and cash equivalents, beginning of period 1 — Cash and cash equivalents, end of period $ 325,528 $ 1 Supplemental disclosures of cash flow information Net cash paid (received) for: Interest $ 67,135 $ — Income tax: Cash received from MetLife, Inc. for income tax $ (40 ) $ — Income tax paid by Brighthouse Financial, Inc. 888 — Net cash paid (received) for income tax $ 848 $ — Schedule II Notes to the Condensed Financial Information (Parent Company Only) 1. Basis of Presentation The condensed financial information of Brighthouse Financial, Inc. (the “Parent Company”) should be read in conjunction with the consolidated financial statements of Brighthouse Financial, Inc. and its subsidiaries and the notes thereto (the “Consolidated Financial Statements”). These condensed unconsolidated financial statements reflect the results of operations, financial position and cash flows for Brighthouse Financial, Inc. Investments in subsidiaries are accounted for using the equity method of accounting. The preparation of these condensed unconsolidated financial statements in conformity with GAAP requires management to adopt accounting policies and make certain estimates and assumptions. The most important of these estimates and assumptions relate to the fair value measurements, identifiable intangible assets and the provision for potential losses that may arise from litigation and regulatory proceedings and tax audits, which may affect the amounts reported in the condensed unconsolidated financial statements and accompanying notes. Actual results could differ from these estimates. 2. Investment in Subsidiaries Contribution of Brighthouse Holdings, LLC On July 28, 2017, MetLife, Inc. contributed to Brighthouse Financial, Inc. all of the common interests in BH Holdings in exchange for (i) the assumption by Brighthouse Financial, Inc. of certain liabilities of MetLife, Inc. including, among other things, liabilities relating to the operation of Brighthouse Financial, Inc.’s business (including from periods prior to the separation) and certain liabilities related to Brighthouse Financial, Inc.’s employees, liabilities relating to Brighthouse Financial, Inc.’s assets and outstanding contractual and non-contractual relationships with customers, vendors and others (including obligations under leases for Brighthouse Financial, Inc.’s corporate headquarters in Charlotte, North Carolina, as well as certain other locations), and liabilities relating to certain historical operations of MetLife, Inc.; (ii) a cash distribution; (iii) the issuance of additional shares of Brighthouse Financial, Inc. common stock; and (iv) the entry into certain other agreements between MetLife, Inc. and Brighthouse Financial, Inc. During the year ended December 31, 2017, Brighthouse Financial, Inc. paid cash capital contributions of $1.3 billion to BH Holdings. During the year ended December 31, 2017, Brighthouse Financial, Inc. received a $50 million cash distribution from BH Holdings. . Long-term and Short-term Debt Long-term and short-term debt outstanding was as follows: December 31, Interest Rate Maturity 2017 2016 (In millions) Senior notes — unaffiliated (1) 3.70% 2027 $ 1,489 $ — Senior notes — unaffiliated (1) 4.70% 2047 1,477 — Term loan — unaffiliated LIBOR plus 1.5% 2019 600 — Total long-term debt 3,566 — Short-term intercompany loans 136 — Total long-term and short-term debt $ 3,702 $ — _______________ (1) Includes unamortized debt issuance costs and debt discount totaling $34 million for the senior notes due 2027 and 2047 on a combined basis at December 31, 2017. Interest expense related to long-term and short-term debt of $75 million for the year ended December 31, 2017 is included in other expenses. The aggregate maturities of long-term and short-term debt at December 31, 2017 for the next five years and thereafter are $136 million in 2018, $600 million in 2019, $0 in each of 2020, 2021 and 2022, and $3.0 billion thereafter. Senior Notes See Note 9 of the Notes to the Consolidated and Combined Financial Statements for information regarding the unaffiliated senior notes. Credit Facilities See Note 9 of the Notes to the Consolidated and Combined Financial Statements for information regarding Brighthouse Financial, Inc.’s credit facilities, including the unaffiliated term loan. At December 31, 2016 , Brighthouse Financial, Inc. owed MetLife, Inc. $17 million for debt issuance costs and credit facility fees paid on Brighthouse Financial Inc.’s behalf, which is included in payable to former affiliate. Brighthouse Financial, Inc. reimbursed MetLife, Inc. for such costs during 2017. Short-term Intercompany Loans On October 23, 2017, Brighthouse Financial, Inc., as borrower, entered into a short-term intercompany loan agreement with certain of its non-insurance subsidiaries, as lenders, for the purposes of facilitating the management of the available cash of the borrower and the lenders on a consolidated basis. Each loan entered into under this intercompany loan agreement has a term not more than 364 days and bears interest on the unpaid principal amount at a variable rate, payable monthly. During the fourth quarter of 2017, Brighthouse Financial, Inc. borrowed $80 million aggregate principal amount from Brighthouse Services, and $56 million aggregate principal amount from BH Holdings. The weighted average interest rate on these short-term intercompany loans was 0.73% at December 31, 2017 and interest expense was not significant for the year ended December 31, 2017. Intercompany Liquidity Facilities We have established an intercompany liquidity facility with certain of our insurance and non-insurance company subsidiaries to provide short-term liquidity within and across the combined group of companies. Under the facility, which is comprised of a series of revolving loan agreements among Brighthouse Financial, Inc. and its participating subsidiaries, each company may lend to or borrow from each other, subject to certain maximum limits for a term not more than 364 days. For each insurance subsidiary, the borrowing and lending limit is 3% of the respective insurance subsidiary’s statutory admitted assets as of the previous year end. For Brighthouse Financial, Inc. and each non-insurance subsidiary, the borrowing and lending limit is based on a formula tied to the statutory admitted assets of the respective non-insurance subsidiaries. Brighthouse Financial, Inc. made no loans to, and received no borrowings from, any of its subsidiaries under this liquidity facility during the year ended December 31, 2017 . In connection with the Separation, the Company entered into a tax receivable agreement (the “Tax Receivables Agreement”) with MetLife that provides MetLife with the right to receive as partial consideration for its contribution of assets to Brighthouse Financial, Inc. future payments from Brighthouse Financial, Inc., equal to 86% of the amount of cash savings, if any, in U.S. federal income tax that Brighthouse Financial, Inc. and its subsidiaries actually, or are deemed to, realize as a result of the utilization of Brighthouse Financial, Inc. and its subsidiaries’ net operating losses, capital losses, tax basis and amortization or depreciation deductions in respect of certain tax benefits it may realize as a result of certain transactions involved in the Separation. In the third quarter of 2017, in connection with the Tax Receivables Agreement, the Company recorded a payable to MetLife of $553 million in other liabilities, offset with a decrease to additional paid-in capital. In the fourth quarter of 2017, as a result of the reduction in the statutory tax rates under the Tax Act, the liability to MetLife under the Tax Receivables Agreement was reduced by $222 million , which is included in other revenues. At December 31, 2017 and 2016, Brighthouse Financial, Inc. owed MetLife $333 million and $0 , respectively, included in payable to former affiliate, primarily in connection with the Tax Receivables Agreement. |
Consolidated Supplementary Insu
Consolidated Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplementary Insurance Information [Abstract] | |
Consolidated Supplementary Insurance Information | . Schedule III Consolidated and Combined Supplementary Insurance Information December 31, 2017 and 2016 (In millions) Segment DAC Future Policy Benefits and Other Policy-Related Policyholder Unearned Premiums (1)(2) Unearned 2017 Annuities $ 5,047 $ 8,347 $ 25,934 $ — $ 96 Life 1,106 5,200 3,342 14 278 Run-off 5 18,521 8,506 — 95 Corporate & Other 128 7,533 1 5 — Total $ 6,286 $ 39,601 $ 37,783 $ 19 $ 469 2016 Annuities $ 4,878 $ 7,724 $ 25,431 $ — $ 89 Life 1,261 4,951 3,588 14 363 Run-off 6 16,313 8,506 — 79 Corporate & Other 148 7,429 1 6 — Total $ 6,293 $ 36,417 $ 37,526 $ 20 $ 531 ______________ (1) Amounts are included within the future policy benefits and other policy-related balances column. (2) Includes premiums received in advance. Brighthouse Financial, Inc. Schedule III Consolidated and Combined Supplementary Insurance Information (continued) December 31, 2017 , 2016 and 2015 (In millions) Segment Premiums and Net Policyholder Benefits and Claims and Amortization of Other 2017 Annuities $ 3,000 $ 1,252 $ 2,130 $ (23 ) $ 1,565 Life 951 327 820 223 265 Run-off 714 1,358 1,735 7 279 Corporate & Other 96 141 62 20 374 Total $ 4,761 $ 3,078 $ 4,747 $ 227 $ 2,483 2016 Annuities $ 3,259 $ 1,329 $ 2,347 $ (896 ) $ 1,248 Life 739 350 681 282 273 Run-off 878 1,341 1,953 961 437 Corporate & Other 128 187 87 24 326 Total $ 5,004 $ 3,207 $ 5,068 $ 371 $ 2,284 2015 Annuities $ 3,856 $ 1,156 $ 2,359 $ 523 $ 1,301 Life 752 352 650 169 276 Run-off 793 1,461 1,301 65 284 Corporate & Other 288 130 218 24 259 Total $ 5,689 $ 3,099 $ 4,528 $ 781 $ 2,120 ______________ (1) See Note 2 of the Notes to the Consolidated and Combined Financial Statements for the basis of allocation of net investment income. |
Consolidated Reinsurance
Consolidated Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Consolidated Reinsurance | , Inc. Schedule IV Consolidated and Combined Reinsurance December 31, 2017 , 2016 and 2015 (Dollars in millions) Gross Amount Ceded Assumed Net Amount % Amount Assumed to Net 2017 Life insurance in-force $ 629,367 $ 206,304 $ 6,879 $ 429,942 1.6% Insurance premium Life insurance (1) $ 1,557 $ 711 $ 11 $ 857 1.3% Accident & health insurance 238 232 — 6 —% Total insurance premium $ 1,795 $ 943 $ 11 $ 863 1.3% 2016 Life insurance in-force $ 653,270 $ 465,841 $ 7,006 $ 194,435 3.6% Insurance premium Life insurance (1) $ 2,067 $ 929 $ 76 $ 1,214 6.3% Accident & health insurance 229 224 3 8 37.5% Total insurance premium $ 2,296 $ 1,153 $ 79 $ 1,222 6.5% 2015 Life insurance in-force $ 637,410 $ 483,569 $ 94,863 $ 248,704 38.1% Insurance premium Life insurance (1) $ 2,229 $ 855 288 $ 1,662 17.3% Accident & health insurance 243 235 9 17 52.9% Total insurance premium $ 2,472 $ 1,090 $ 297 $ 1,679 17.7% ______________ (1) Includes annuities with life contingencies. For the year ended December 31, 2017 , reinsurance ceded and assumed included related party transactions for life insurance in-force of $17.1 billion and $6.9 billion , respectively, and life insurance premiums of $537 million and $11 million , respectively. For the year ended December 31, 2016 , reinsurance ceded and assumed included related party transactions for life insurance in-force of $266.4 billion and $7.0 billion , respectively, and life insurance premiums of $766 million and $34 million , respectively. For the year ended December 31, 2015 , reinsurance ceded and assumed included related party transactions for life insurance in-force of $278.5 billion and $86.4 billion , respectively, and life insurance premiums of $687 million and $227 million , respectively. |
Business, Basis of Presentati29
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Pension NELICO sponsors a qualified and a nonqualified defined benefit pension plan, as well as unfunded other postretirement benefit plans. Effective December 31, 2014, the NELICO sponsored pension and other postretirement plans were amended to eliminate benefit accruals prosp ectively and are closed to new entrants. All benefit payments related to the nonqualified defined benefit pension plan and other postretirement benefit plans are subject to reimbursement annually, on an after tax basis, by MetLife. Formerly, the Company’s employees, sales representatives and retirees participated in defined benefit pension plans sponsored by MLIC, a former affiliate. The Company also provided postemployment and postretirement medical and life insurance benefits for certain retired employees through plans sponsored by MLIC. Participation in these plans ended December 31, 2016. These plans also included participants from other affiliates of MLIC. The Company accounted for these plans as multiemployer benefit plans and as a result the assets, obligations and other comprehensive gains and losses of these benefit plans were not included in the accompanying combined balance sheets or the additional disclosure below. |
Intangible Assets Arising from Insurance Contracts Acquired in Business Combination, Policy [Policy Text Block] | Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: • incremental direct costs of contract acquisition, such as commissions; • the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and • other essential direct costs that would not have been incurred had a policy not been acquired or renewed. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Value of business acquired ( “VOBA” ) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force as of the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. DAC and VOBA on traditional long-duration insurance contracts is amortized based on actual and expected future gross premiums while DAC and VOBA on fixed and variable universal life insurance and deferred annuities is amortized based on estimated gross profits. The recoverability of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. See Note 4 for additional information on DAC and VOBA amortization. Traditional Life Insurance Contracts The Company amortizes DAC and VOBA related to these contracts (primarily term insurance) over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policy benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Fixed and Variable Universal Life Contracts and Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, benefit elections and withdrawals, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses, persistency and benefit elections and withdrawals are reasonably likely to significantly impact the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. Factors Impacting Amortization Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. The Company also annually reviews other long-term assumptions underlying the projections of estimated gross profits. These assumptions primarily relate to investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency, benefit elections and withdrawals and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross profits which may have significantly changed. If the update of assumptions causes expected future gross profits to increase, DAC and VOBA amortization will generally decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross profits to decrease. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. |
New Accounting Pronouncements, Policy [Policy Text Block] | Adoption of New Accounting Pronouncements Changes to GAAP are established by the FASB in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the Company’s consolidated financial statements. The following table provides a description of new ASUs issued by the FASB and the expected impact of the adoption on the Company’s consolidated financial statements. Except as noted below, the ASUs adopted by the Company during 2017 did not have a material impact on its consolidated financial statements. Standard Description Effective Date Impact on Financial Statements ASU 2018-02, Reporting Comprehensive Income (Topic 220)-Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The amendments to Topic 220 provide an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act of 2017 (or portion thereof) is recorded. January 1, 2019 applied in the period of adoption (with early adoption permitted) The Company elected to early adopt the ASU as of December 31, 2017 and reclassified $301 million from AOCI into retained earnings related to the impact of the Tax Act of 2017. See Notes 10 and 13. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities The amendments to Topic 815 (i) refine and expand the criteria for achieving hedge accounting on certain hedging strategies, (ii) require the earnings effect of the hedging instrument be presented in the same line item in which the earnings effect of the hedged item is reported, and (iii) eliminate the requirement to separately measure and report hedge ineffectiveness. January 1, 2019 using modified retrospective method (with early adoption permitted) The Company does not expect a material impact on its financial statements from adoption of the new guidance. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The amendments to Topic 326 replace the incurred loss impairment methodology for certain financial instruments with one that reflects expected credit losses based on historical loss information, current conditions, and reasonable and supportable forecasts. The new guidance also requires that an OTTI on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through realized investment gains and losses. January 1, 2020 using the modified retrospective method (with early adoption permitted beginning January 1, 2019) The Company is currently evaluating the impact of this guidance on its financial statements. The Company expects the most significant impacts to be earlier recognition of impairments on mortgage loan investments. ASU 2016-02, Leases - Topic 842 The new guidance will require a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Leases would be classified as finance or operating leases and both types of leases will be recognized on the balance sheet. Lessor accounting will remain largely unchanged from current guidance except for certain targeted changes. The amendments also require new qualitative and quantitative disclosures. January 1, 2019 using the modified retrospective method (with early adoption permitted) The Company is currently evaluating the impact of this guidance on its financial statements, with implementation efforts focused on the review of its existing lease contracts, as well as identification of other contracts that may fall under the scope of the new guidance. ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities The new guidance changes the current accounting guidance related to (i) the classification and measurement of certain equity investments, (ii) the presentation of changes in the fair value of financial liabilities measured under the FVO that are due to instrument-specific credit risk, and (iii) certain disclosures associated with the fair value of financial instruments. Additionally, there will no longer be a requirement to assess equity securities for impairment since such securities will be measured at fair value through net income. January 1, 2018 using the modified retrospective method Effective January 1, 2018 the Company will carry available-for-sale equity securities and partnerships and joint ventures accounted for under the cost method at fair value with changes in fair value recognized in net income. The Company will reclassify unrealized gains related to equity securities of $19 million from AOCI to opening retained earnings. Additionally, the Company will adjust the carrying value of partnerships and joint ventures, previously accounted for under the cost method, from cost to fair value, resulting in a $9 million increase to retained earnings. Standard Description Effective Date Impact on Financial Statements ASU 2014-09 Revenue from Contracts with Customers (Topic 606) For those contracts that are impacted, the guidance will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services. January 1, 2018 using the modified retrospective method No impact on the Company’s financial statements. Other Effective January 3, 2017, the Chicago Mercantile Exchange (“CME”) amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. These amendments impacted the accounting treatment of the Company’s centrally cleared derivatives, for which the CME serves as the central clearing party. As of the effective date, the application of the amended rulebook, reduced gross derivative assets by $206 million , gross derivative liabilities by $927 million , accrued investment income by $30 million , collateral receivables recorded within premiums, reinsurance and other receivables of $765 million , and collateral payables recorded within payables for collateral under securities loaned and other transactions of $74 million . |
Policyholder Accounts, Policy [Policy Text Block] | Separate Accounts Separate accounts underlying the Company’s variable life and annuity contracts are reported at fair value. Assets supporting the contract liabilities are legally insulated from the Company’s general account liabilities. Investments in these separate accounts are directed by the contract holder and all investment performance, net of contract fees and assessments, is passed through to the contract holder. Investment performance and the corresponding amounts credited to contract holders of such separate accounts are offset within the same line on the statements of operations. Separate accounts that do not pass all investment performance to the contract holder, including those underlying the index-linked annuities, are combined on a line-by-line basis with the Company’s general account assets, liabilities, revenues and expenses. The accounting for investments in these separate accounts is consistent with the methodologies described herein for similar financial instruments held within the general account. The Company receives asset-based distribution and service fees from mutual funds available to the variable life and annuity contract holders. These fees are recognized in the period in which the related services are performed and are included in other revenues in the statement of operations. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. |
Consolidation, Policy [Policy Text Block] | Consolidation The financial statements presented in this annual report for periods on or after the Separation are presented on a consolidated basis and include the financial position, results of operations and cash flows of the Company. The accompanying consolidated financial statements include the accounts of Brighthouse Financial, Inc. and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investee”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee’s operations. Combination The financial statements for the periods prior to the Separation are presented on a combined basis and reflect the historical combined financial position, results of operations and cash flows. The combined balance sheets include the attribution of certain assets and liabilities that were historically held at the MetLife corporate level but which were specifically identifiable or attributable to the Company. Similarly, certain assets attributable to shared services managed at the MetLife corporate level were excluded from the combined balance sheets. The combined statements of operations reflect certain corporate expenses allocated to the Company by MetLife for certain corporate functions and for shared services provided by MetLife. These expenses were allocated to the Company based on direct usage or benefit where specifically identifiable, with the remainder allocated based upon other reasonable allocation measures. The Company considers the expense methodology and results to be reasonable for all periods presented. See Note 16 for further information on expenses allocated by MetLife. The Company previously recorded affiliated transactions with certain MetLife subsidiaries which are not included in the combined financial statements of the Company. The income tax amounts in these combined financial statements have been calculated based on a separate return methodology and presented as if each company was a separate taxpayer in its respective jurisdiction. The historical financial results in the combined financial statements presented may not be indicative of the results that would have been achieved by the Company had it operated as a separate, stand-alone entity prior to the Separation. The combined financial statements presented do not reflect any changes that may occur in the Company’s financing and operations in connection with or as a result of the Separation. Management believes that the combined financial statements include all adjustments necessary for a fair presentation of the business. Reclassifications Certain amounts in the prior years’ combined financial statements and related footnotes thereto have been reclassified to conform with the current year presentation as discussed throughout the Notes to the Consolidated and Combined Financial Statements. |
Future Policy Benefits Liability, Policy [Policy Text Block] | Future Policy Benefit Liabilities and Policyholder Account Balances The Company establishes liabilities for future amounts payable under insurance policies. Insurance liabilities are generally calculated as the present value of future expected benefits to be paid, reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying assumptions that are in accordance with GAAP and applicable actuarial standards. The principal assumptions used in the establishment of liabilities for future policy benefits are mortality, morbidity, benefit utilization and withdrawals, policy lapse, retirement, disability incidence, disability terminations, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type. For traditional long duration insurance contracts (term and whole-life insurance and immediate annuities), assumptions are determined at issuance of the policy and remain “locked-in” unless a premium deficiency exists. A premium deficiency exists when the liability for future policy benefits plus the present value of expected future gross premiums are less than expected future benefits and expenses (based on current assumptions). When a premium deficiency exists, the Company will reduce any deferred acquisition costs and may also establish an additional liability to eliminate the deficiency. To assess whether a premium deficiency exists, the Company groups insurance contracts based on the manner acquired, serviced and the measurement of profitability. In applying the profitability criteria, groupings are limited by segment. Liabilities for universal life insurance with secondary guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the contract period based on total expected assessments. The assumptions used in estimating the secondary guarantee liabilities are consistent with those used for amortizing deferred policy acquisition costs (“DAC”), and are reviewed and updated at least annually. The assumptions of investment performance and volatility for variable products are consistent with historical experience of the appropriate underlying equity indices, such as the Standard & Poor’s Global Ratings (“S&P”) 500 Index. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. In certain cases, the liability for an insurance product may be sufficient in the aggregate, but the pattern of future earnings may result in profits followed by losses. In these situations, the Company may establish an additional liability to offset the losses that are expected to be recognized in later years. Policyholder account balances relate to customer deposits on universal life insurance and fixed and variable deferred annuity contracts and are equal to the sum of deposits, plus interest credited, less charges and withdrawals. Future policy benefits are measured as follows: Product Type: Measurement Assumptions: Participating life insurance Aggregate of (i) net level premium reserves for death and endowment policy benefits (calculated based upon the non-forfeiture interest rate, ranging from 4% to 5%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends. Nonparticipating life insurance Aggregate of the present value of expected future benefit payments and related expenses less the present value of expected future net premiums. Assumptions as to mortality and persistency are based upon the Company’s experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 3% to 9%. I ndividual and group fixed annuities after annuitization Present value of expected future payments. Interest rate assumptions used in establishing such liabilities range from 2% to 8%. Long-term care and disability insurance active life reserves The net level premium method and assumptions as to future morbidity, withdrawals and interest, which provide a margin for adverse deviation. Interest rate assumptions used in establishing such liabilities range from 4% to 7%. Long-term care and disability insurance claim reserves Present value of benefits method and experience assumptions as to claim terminations, expenses and interest. Interest rate assumptions used in establishing such liabilities range from 3% to 7%. Policyholder account balances are equal to: (i) policy account values, which consist of an accumulation of gross premium payments; (ii) credited interest, ranging from 0% to 7% , less expenses, mortality charges and withdrawals; and (iii) fair value adjustments relating to business combinations. |
Minimum Guarantees, Policy [Policy Text Block] | See “— Variable Annuity Guarantees” for additional information on the Company’s variable annuity guarantee features that are accounted for as insurance liabilities and recorded in future policy benefits, as well as the guarantee features that are accounted for at fair value as embedded derivatives and recorded in policyholder account balances. Variable Annuity Guarantees The Company issues directly and previously assumed from a former affiliate through reinsurance certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit (the “Benefit Base”) less withdrawals. In some cases, the Benefit Base may be increased by additional deposits, bonus amounts, accruals or optional market value step-ups. Certain of the Company’s variable annuity guarantee features are accounted for as insurance liabilities and recorded in future policy benefits while others are accounted for at fair value as embedded derivatives and recorded in policyholder account balances. Generally, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. Alternatively, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of specific insurable event, or (ii) the policyholder to annuitize, that is, the policyholder can receive the guarantee on a net basis. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. Further, changes in assumptions, principally involving behavior, can result in a change of expected future cash outflows of a guarantee between portions accounted for as insurance liabilities and portions accounted for as embedded derivatives. Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits (“GMDBs”), the life contingent portion of the GMWBs and the portion of the GMIBs that require annuitization, as well as the life contingent portion of the expected annuitization when the policyholder is forced into an annuitization upon depletion of their account value. These insurance liabilities are accrued over the accumulation phase of the contract in proportion to actual and future expected policy assessments based on the level of guaranteed minimum benefits generated using multiple scenarios of separate account returns. The scenarios are based on best estimate assumptions consistent with those used to amortize DAC. When current estimates of future benefits exceed those previously projected or when current estimates of future assessments are lower than those previously projected, liabilities will increase, resulting in a current period charge to net income. The opposite result occurs when the current estimates of future benefits are lower than those previously projected or when current estimates of future assessments exceed those previously projected. At each reporting period, the actual amount of business remaining in-force is updated, which impacts expected future assessments and the projection of estimated future benefits resulting in a current period charge or increase to earnings. See Note 3 for additional details of guarantees accounted for as insurance liabilities. Guarantees accounted for as embedded derivatives in policyholder account balances include the non-life contingent portion of GMWBs, GMABs, and for GMIBs the non-life contingent portion of the expected annuitization when the policyholder is forced into an annuitization upon depletion of their account value, as well as the Guaranteed Principal Option. The estimated fair values of guarantees accounted for as embedded derivatives are determined based on the present value of projected future benefits minus the present value of projected future fees. At policy inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. In valuing the embedded derivative, the percentage of fees included in the fair value measurement is locked-in at inception. The projections of future benefits and future fees require capital market and actuarial assumptions including expectations concerning policyholder behavior. A risk neutral valuation methodology is used to project the cash flows from the guarantees under multiple capital market scenarios to determine an economic liability. The reported estimated fair value is then determined by taking the present value of these risk-free generated cash flows using a discount rate that incorporates a spread over the risk-free rate to reflect the Company’s nonperformance risk and adding a risk margin. For more information on the determination of estimated fair value. See Note 8 . The Company issues variable annuity products with guaranteed minimum benefits. GMABs, the non-life-contingent portion of GMWBs and the portion of certain GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 7 . Guarantees accounted for as insurance liabilities include: Guarantee: Measurement Assumptions: GMDBs • A return of purchase payment upon death even if the account value is reduced to zero. • Present value of expected death benefits in excess of the projected account balance recognizing the excess ratably over the accumulation period based on the present value of total expected assessments. • An enhanced death benefit may be available for an additional fee. • Assumptions are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. • Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the S&P 500 Index. • Benefit assumptions are based on the average benefits payable over a range of scenarios. GMIBs • After a specified period of time determined at the time of issuance of the variable annuity contract, a minimum accumulation of purchase payments, even if the account value is reduced to zero, that can be annuitized to receive a monthly income stream that is not less than a specified amount. • Present value of expected income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on present value of total expected assessments. • Certain contracts also provide for a guaranteed lump sum return of purchase premium in lieu of the annuitization benefit. • Assumptions are consistent with those used for estimating GMDB liabilities. • Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contract holder. GMWBs • A return of purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that cumulative withdrawals in a contract year do not exceed a certain limit. • Expected value of the life contingent payments and expected assessments using assumptions consistent with those used for estimating the GMDB liabilities. • Certain contracts include guaranteed withdrawals that are life contingent. The Company also issues universal and variable life contracts where the Company contractually guarantees to the contract holder a secondary guarantee. |
Insurance Premiums Revenue Recognition, Policy [Policy Text Block] | Recognition of Insurance Revenues and Deposits Premiums related to traditional life insurance and annuity contracts with life contingencies are recognized as revenues when due from policyholders. When premiums are due over a significantly shorter period than the period over which policyholder benefits are incurred, any excess profit is deferred and recognized into earnings in proportion to insurance in-force or, for annuities, the amount of expected future policy benefit payments. Deposits related to universal life insurance, fixed and variable deferred annuity contracts and investment-type products are credited to policyholder account balances. Revenues from such contracts consist of asset-based investment management fees, mortality charges, risk charges, policy administration fees and surrender charges. These fees are recognized when assessed to the contract holder and are included in universal life and investment-type product policy fees on the statements of operations. Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. |
Deferred Policy Acquisition Costs, Policy [Policy Text Block] | Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: • incremental direct costs of contract acquisition, such as commissions; • the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and • other essential direct costs that would not have been incurred had a policy not been acquired or renewed. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Value of business acquired ( “VOBA” ) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force as of the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. DAC and VOBA on traditional long-duration insurance contracts is amortized based on actual and expected future gross premiums while DAC and VOBA on fixed and variable universal life insurance and deferred annuities is amortized based on estimated gross profits. The recoverability of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. See Note 4 for additional information on DAC and VOBA amortization. Traditional Life Insurance Contracts The Company amortizes DAC and VOBA related to these contracts (primarily term insurance) over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policy benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Fixed and Variable Universal Life Contracts and Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, benefit elections and withdrawals, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses, persistency and benefit elections and withdrawals are reasonably likely to significantly impact the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. Factors Impacting Amortization Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. The Company also annually reviews other long-term assumptions underlying the projections of estimated gross profits. These assumptions primarily relate to investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency, benefit elections and withdrawals and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross profits which may have significantly changed. If the update of assumptions causes expected future gross profits to increase, DAC and VOBA amortization will generally decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross profits to decrease. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. |
Sales Inducements to Contract Holders, Policy [Policy Text Block] | The Company also has deferred sales inducements (“DSI”) and value of distribution agreements (“VODA”) which are included in other assets. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization of DSI is included in policyholder benefits and claims. VODA represents the present value of expected future profits associated with the expected future business derived from the distribution agreements acquired as part of a business combination. The VODA associated with past business combinations is amortized over useful lives ranging from 10 to 40 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a possible impairment exists, the Company reviews DSI and VODA to determine whether the assets are impaired. |
Reinsurance Accounting Policy [Policy Text Block] | Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC when there is a gain at inception on the ceding entity and to other liabilities when there is a loss at inception. The net cost of reinsurance is recognized as a component of other expenses when there is a gain at inception and as policyholder benefits and claims when there is a loss and is subsequently amortized on a basis consistent with the methodology used for amortizing DAC related to the underlying reinsured contracts. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as ceded (assumed) premiums and ceded (assumed) premiums, reinsurance and other receivables (future policy benefits) are established. Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. If reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. Under certain reinsurance agreements, the Company withholds the funds rather than transferring the underlying investments and, as a result, records funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. Premiums, fees and policyholder benefits and claims include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to guaranteed minimum income benefits (“GMIBs”), a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives. These embedded derivatives are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. Certain previously assumed non-life contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”), guaranteed minimum accumulation benefits (“GMABs”) and GMIBs are also accounted for as embedded derivatives with changes in estimated fair value reported in net derivative gains (losses). The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by former affiliated and unaffiliated companies. Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed in Note 6 . |
Investment, Policy [Policy Text Block] | Investments Net Investment Income and Net Investment Gains (Losses) Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein. Fixed Maturity and Equity Securities The Company’s fixed maturity and equity securities are classified as available-for-sale (“AFS”) and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) (“OCI”), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts and is based on the estimated economic life of the securities, which for residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”) considers the estimated timing and amount of prepayments of the underlying loans. The amortization of premium and accretion of discount of fixed maturity securities also takes into consideration call and maturity dates. Amortization of premium and accretion of discount on Structured Securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for Structured Securities are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive Structured Securities and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other Structured Securities, the effective yield is recalculated on a retrospective basis. The Company periodically evaluates fixed maturity and equity securities for impairment. The assessment of whether impairments have occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in estimated fair value, as well as an analysis of the gross unrealized losses by severity and/or age. See Note 6 “—Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities.” For fixed maturity securities in an unrealized loss position, an other-than-temporary impairment (“OTTI”) is recognized in earnings when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an OTTI in earnings (“credit loss”). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors (“noncredit loss”) is recorded in OCI. Mortgage Loans Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, and any deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. See Note 6 for information on impairments on mortgage loans. Also included in mortgage loans are commercial mortgage loans held by consolidated securitization entities (“CSEs”) for which the fair value option (“FVO”) was elected, which are stated at estimated fair value. Changes in estimated fair value are recognized in net investment gains (losses) for commercial mortgage loans held by CSEs. Policy Loans Policy loans are stated at unpaid principal balances. Interest income is recorded as earned using the contractual interest rate. Generally, accrued interest is capitalized on the policy’s anniversary date. Any unpaid principal and accrued interest is deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy. Real Estate Joint Ventures and Other Limited Partnership Interests The Company uses the equity method of accounting for investments when it has more than a minor ownership interest or more than a minor influence over the investee’s operations; while the cost method is used when the Company has virtually no influence over the investee’s operations. The Company generally recognizes its share of the equity method investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period; while distributions on cost method investments are recognized as earned or received. The Company routinely evaluates such investments for impairment. For equity method investees, the Company considers financial and other information provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, in determining whether an impairment has occurred. The Company considers its cost method investments for impairment when the carrying value of such investments exceeds the net asset value ( “NAV” ). The Company takes into consideration the severity and duration of this excess when determining whether the cost method investment is impaired. Short-term Investments Short-term investments include securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. Short-term investments also include investments in affiliated money market pools. Other Invested Assets Other invested assets consist principally of freestanding derivatives with positive estimated fair values which are described in “—Derivatives” below. Securities Lending Program Securities lending transactions, whereby blocks of securities are loaned to third parties, primarily brokerage firms and commercial banks, are treated as financing arrangements and the associated liability is recorded at the amount of cash received. Income and expenses associated with securities lending transactions are reported as investment income and investment expense, respectively, within net investment income. The Company obtains collateral at the inception of the loan, usually cash, in an amount generally equal to 102% of the estimated fair value of the securities loaned, and maintains it at a level greater than or equal to 100% for the duration of the loan. The Company monitors the estimated fair value of the securities loaned on a daily basis and additional collateral is obtained as necessary throughout the duration of the loan. Securities loaned under such transactions may be sold or repledged by the transferee. The Company is liable to return to the counterparties the cash collateral received. Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Maturities of Fixed Maturity Securities Past Due, Nonaccrual and Modified Mortgage Loans The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. Valuation Allowance Methodology Mortgage loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the loan agreement. Specific valuation allowances are established using the same methodology for all three portfolio segments as the excess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate, (ii) the estimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan’s observable market price. A common evaluation framework is used for establishing non-specific valuation allowances for all loan portfolio segments; however, a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfolio segment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific risk has not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specific factors, including the Company’s experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. The Company generally defines nonperforming rental receivables as those that are 90 days or more past due. Leveraged Leases Purchased Credit Impaired Investments Investments acquired with evidence of credit quality deterioration since origination and for which it is probable at the acquisition date that the Company will be unable to collect all contractually required payments are classified as purchased credit impaired (“PCI”) investments. For each investment, the excess of the cash flows expected to be collected as of the acquisition date over its acquisition date fair value is referred to as the accretable yield and is recognized as net investment income on an effective yield basis. If, subsequently, based on current information and events, it is probable that there is a significant increase in cash flows previously expected to be collected or if actual cash flows are significantly greater than cash flows previously expected to be collected, the accretable yield is adjusted prospectively. The excess of the contractually required payments (including interest) as of the acquisition date over the cash flows expected to be collected as of the acquisition date is referred to as the nonaccretable difference, and this amount is not expected to be realized as net investment income. Decreases in cash flows expected to be collected can result in OTTI. Variable Interest Entities The Company has invested in legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. |
Derivatives, Policy [Policy Text Block] | Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except for economic hedges of variable annuity guarantees which are presented in future policy benefits and claims and economic hedges of equity method investments in joint ventures which are presented in net investment income. Hedge Accounting The Company primarily designates derivatives as a hedge of a forecasted transaction or a variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in fair value are recorded in OCI and subsequently reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. The Company also designates derivatives as a hedge of the estimated fair value of a recognized asset or liabilities (fair value hedge). When a derivative is designated as fair value hedge and is determined to be highly effective, changes in fair value are recorded in net derivative gains (losses), consistent with the change in estimated fair value of the hedged item attributable to the designated risk being hedged. To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses), except for those in policyholder benefits and claims related to ceded reinsurance of GMIB. See “— Variable Annuity Guarantees” for additional information on the accounting policy for embedded derivatives bifurcated from variable annuity host contracts. Accounting for Derivatives See Note 1 for a description of the Company’s accounting policies for derivatives and Note 8 for information about the fair value hierarchy for derivatives Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps to synthetically replicate investment risks and returns which are not readily available in the cash markets. Interest Rate Derivatives The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, interest rate total return swaps, caps, floors, swaptions, futures and forwards. Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and nonqualifying hedging relationships. Interest rate total return swaps are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and the London Interbank Offered Rate (“LIBOR”), calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate total return swaps are used by the Company to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). The Company utilizes interest rate total return swaps in nonqualifying hedging relationships. The Company purchases interest rate caps and floors primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, as well as to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level, respectively. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in nonqualifying hedging relationships. In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, and to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate (Treasury and swap) futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury or swap curve performance, and to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded interest rate futures in nonqualifying hedging relationships. Swaptions are used by the Company to hedge interest rate risk associated with the Company’s long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in nonqualifying hedging relationships. Swaptions are included in interest rate options. Foreign Currency Exchange Rate Derivatives The Company uses foreign currency swaps to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in cash flow and nonqualifying hedging relationships. To a lesser extent, the Company uses foreign currency forwards in nonqualifying hedging relationships. Credit Derivatives The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations, repudiation, moratorium, involuntary restructuring or governmental intervention. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association, Inc. (“ISDA”) deems that a credit event has occurred. The Company utilizes credit default swaps in nonqualifying hedging relationships. The Company enters into written credit default swaps to create synthetic credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. government and agency securities or other fixed maturity securities. These credit default swaps are not designated as hedging instruments. Equity Derivatives The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps, exchange-traded equity futures and equity total return swaps. Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Certain of these contracts may also contain settlement provisions linked to interest rates. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options in nonqualifying hedging relationships. Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. The Company utilizes equity variance swaps in nonqualifying hedging relationships. In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of equity securities, and to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded equity futures are used primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded equity futures in nonqualifying hedging relationships. In an equity total return swap, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and the LIBOR, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses equity total return swaps to hedge its equity market guarantees in certain of its insurance products. Equity total return swaps can be used as hedges or to create synthetic investments. The Company utilizes equity total return swaps in nonqualifying hedging relationships. The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoring exposure limits. The Company’s OTC-bilateral derivative transactions are generally governed by ISDA Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions. Substantially all of the Company’s ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives. The Company’s OTC-cleared derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected through regulated exchanges. Such positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivatives. See Note 8 for a description of the impact of credit risk on the valuation of derivatives. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition. In determining the estimated fair value of the Company’s investments, fair values are based on unadjusted quoted prices for identical investments in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical investments, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of investments. When developing estimated fair values, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. |
Income Tax, Policy [Policy Text Block] | Income Tax Income taxes as presented herein attribute current and deferred income taxes of MetLife, Inc., for periods up until the Separation, to Brighthouse Financial, Inc. and its subsidiaries in a manner that is systematic, rational and consistent with the asset and liability method prescribed by the Financial Accounting Standards Board (“FASB”) guidance Accounting Standards Codification 740 — Income Taxes (“ASC 740”). The Company’s income tax provision was prepared following the modified separate return method. The modified separate return method applies ASC 740 to the standalone financial statements of each member of the consolidated group as if the group member were a separate taxpayer and a standalone enterprise, after providing benefits for losses. The Company’s accounting for income taxes represents management’s best estimate of various events and transactions. Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. When making such determination, the Company considers many factors, including: • the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; • the jurisdiction in which the deferred tax asset was generated; • the length of time that carryforward can be utilized in the various taxing jurisdiction; • future taxable income exclusive of reversing temporary differences and carryforwards; • future reversals of existing taxable temporary differences; • taxable income in prior carryback years; and • tax planning strategies. The Company may be required to change its provision for income taxes when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, the effect of changes in tax laws, tax regulations, or interpretations of such laws or regulations, is recognized in net income tax expense (benefit) in the period of change. The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded on the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included within other liabilities and are charged to earnings in the period that such determination is made. The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax expense. On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act (“the Tax Act”) into law. The Tax Act reduced the corporate tax rate to 21%, reduced interest expense deductibility, increased capitalization amounts for deferred acquisition costs, eliminated the corporate alternative minimum tax, provided for determining reserve deductions as 92.81% of statutory reserves, and reduced the dividend received deduction. Most of the changes in the Tax Act are effective as of January 1, 2018. The reduction in the corporate rate required a one-time remeasurement of certain deferred tax items as of December 31, 2017. For the estimated impact of the Tax Act on the financial statements, including the estimated impact resulting from the remeasurement of deferred tax assets and liabilities. See Note 13 for more information. Actual results may materially differ from the Company’s current estimate due to, among other things, further guidance that may be issued by U.S. tax authorities or regulatory bodies and/or changes in interpretations and assumptions preliminarily made. The Company will continue to analyze the Tax Act to finalize its financial statement impact. In December 2017, the SEC issued Staff Accounting Bulletin (“SAB”) 118, addressing the application of GAAP in situations when a registrant does not have necessary information available to complete the accounting for certain income tax effects of the Tax Act. SAB 118 provides guidance for registrants under three scenarios: (1) the measurement of certain income tax effects is complete, (2) the measurement of certain income tax effects can be reasonably estimated, and (3) the measurement of certain income tax effects cannot be reasonably estimated. SAB 118 provides that the measurement period is complete when a company’s accounting is complete. The measurement period cannot extend beyond one year from the enactment date. SAB 118 acknowledges that a company may be able to complete the accounting for some provisions earlier than others. As such, it may need to apply all three scenarios in determining the accounting for the Tax Act based on information that is available. The Company has not fully completed its accounting for the tax effects of the Tax Act, and thus certain items relating to accounting for the Tax Act are provisional, including accounting for reserves. However, it has recorded the effects of the Tax Act as reasonable estimates due to the need for further analysis of the provisions within the Tax Act and collection, preparation and analysis of relevant data necessary to complete the accounting. The corporate rate reduction also left certain tax effects, which were originally recorded using the previous corporate rate, stranded in accumulated other comprehensive income (“AOCI”). The Company adopted new accounting guidance as of December 31, 2017 that allowed the Company to reclassify the stranded tax effects from AOCI into retained earnings. The Company elected to reclassify amounts based on the difference between the previously enacted federal corporate tax rate and the newly enacted rate as applied on an aggregate basis. See Note 13 for more information. |
Commitments and Contingencies, Policy [Policy Text Block] | Litigation Contingencies The Company is a party to a number of legal actions and is involved in a number of regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate the impact on the Company’s financial position. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Legal costs are recognized as incurred. On a quarterly and annual basis, the Company reviews relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected on the Company’s financial statements. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at amortized cost, which approximates estimated fair value. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Employee Benefit Plans Brighthouse Services, LLC (“Brighthouse Services”), an affiliate, sponsors qualified and nonqualified defined contribution plans, and NELICO sponsors certain frozen defined benefit pension and postretirement plans. NELICO recognizes the funded status of each of its pension plans, measured as the difference between the fair value of plan assets and the benefit obligation, which is the projected benefit obligation (“PBO”) for pension benefits in other assets or other liabilities. Actuarial gains and losses result from differences between the actual experience and the assumed experience on plan assets or PBO during a particular period and are recorded in AOCI. To the extent such gains and losses exceed 10% of the greater of the PBO or the estimated fair value of plan assets, the excess is amortized into net periodic benefit costs over the average projected future lifetime of all plan participants or projected future working lifetime, as appropriate. Prior service costs (credit) are recognized in AOCI at the time of the amendment and then amortized into net periodic benefit costs over the average projected future lifetime of all plan participants or projected future working lifetime, as appropriate. Net periodic benefit costs are determined using management estimates and actuarial assumptions; and are comprised of service cost, interest cost, expected return on plan assets, amortization of net actuarial (gains) losses, settlement and curtailment costs, and amortization of prior service costs (credit). Through December 31, 2016, Metropolitan Life Insurance Company (“MLIC”), a former affiliate, provided and the Company contributed to defined benefit pension plans for its employees and retirees. The Company accounts for these plans as multiemployer benefit plans and as a result the assets, obligations and other comprehensive gains and losses of these benefit plans are not included on the consolidated balance sheet. Within its consolidated statement of operations, the Company has included expenses associated with its participants in these plans. These plans also include participants from other affiliates of MLIC. The Company’s participation in these plans ceased December 31, 2016. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Operating Results Year Ended December 31, 2017 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings $ 1,386 $ 7 $ 147 $ 57 $ 1,597 Provision for income tax expense (benefit) 369 (9 ) 43 274 677 Adjusted earnings $ 1,017 $ 16 $ 104 $ (217 ) 920 Adjustments for: Net investment gains (losses) (28 ) Net derivative gains (losses) (1,620 ) Other adjustments to net income (564 ) Provision for income tax (expense) benefit 914 Net income (loss) $ (378 ) Interest revenue $ 1,277 $ 342 $ 1,399 $ 192 Interest expense $ — $ — $ 23 $ 132 Balance at December 31, 2017 Annuities Life Run-off Corporate Total (In millions) Total assets $ 154,667 $ 18,049 $ 36,824 $ 14,652 $ 224,192 Separate account assets $ 109,888 $ 5,250 $ 3,119 $ — $ 118,257 Separate account liabilities $ 109,888 $ 5,250 $ 3,119 $ — $ 118,257 Operating Results Year Ended December 31, 2016 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings $ 1,636 $ 26 $ (834 ) $ 39 $ 867 Provision for income tax expense (benefit) 484 — (295 ) (8 ) 181 Adjusted earnings $ 1,152 $ 26 $ (539 ) $ 47 686 Adjustments for: Net investment gains (losses) (78 ) Net derivative gains (losses) (5,851 ) Other adjustments to net income 357 Provision for income tax (expense) benefit 1,947 Net income (loss) $ (2,939 ) Interest revenue $ 1,451 $ 371 $ 1,441 $ 239 Interest expense $ — $ — $ 61 $ 111 Balance at December 31, 2016 Annuities Life Run-off Corporate & Other Total (In millions) Total assets $ 152,146 $ 17,150 $ 40,007 $ 12,627 $ 221,930 Separate account assets $ 104,855 $ 4,704 $ 3,484 $ — $ 113,043 Separate account liabilities $ 104,855 $ 4,704 $ 3,484 $ — $ 113,043 Operating Results Year Ended December 31, 2015 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings $ 1,452 $ 21 $ 717 $ (77 ) $ 2,113 Provision for income tax expense (benefit) 363 1 249 (41 ) 572 Adjusted earnings $ 1,089 $ 20 $ 468 $ (36 ) 1,541 Adjustments for: Net investment gains (losses) 7 Net derivative gains (losses) (326 ) Other adjustments to net income (332 ) Provision for income tax (expense) benefit 229 Net income (loss) $ 1,119 Interest revenue $ 1,281 $ 371 $ 1,551 $ 125 Interest expense $ — $ — $ 60 $ 101 |
Reconciliation of Revenue from Segments to Consolidated | The following table presents total revenues with respect to the Company’s segments, as well as Corporate & Other: Years Ended December 31, 2017 2016 2015 (In millions) Annuities $ 4,370 $ 4,958 $ 5,229 Life 1,315 1,249 1,137 Run-off 2,147 2,343 2,367 Corporate & Other 510 401 415 Adjustments (1,500 ) (5,933 ) (257 ) Total $ 6,842 $ 3,018 $ 8,891 |
Premiums, Universal Life and Investment-Type Product Policy Fees and Other Revenues by Product Groups | The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company’s segments, as well as Corporate & Other: Years Ended December 31, 2017 2016 2015 (In millions) Annuity products $ 3,363 $ 3,938 $ 4,249 Life insurance products 1,822 1,745 1,726 Other products 227 57 136 Total $ 5,412 $ 5,740 $ 6,111 |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Schedule of Net Amount of Risk by Product and Guarantee [Table Text Block] | Information regarding the Company’s guarantee exposure was as follows at: December 31, 2017 2016 In the Event of Death At Annuitization In the Event of Death At Annuitization (Dollars in millions) Annuity Contracts (1), (2) Variable Annuity Guarantees Total account value (3) $ 115,147 $ 67,110 $ 111,719 $ 64,503 Separate account value $ 109,792 $ 65,782 $ 106,759 $ 63,025 Net amount at risk $ 5,261 (4) $ 2,642 (5) $ 6,837 (4) $ 3,313 (5) Average attained age of contract holders 68 years 68 years 67 years 67 years December 31, 2017 2016 Secondary Guarantees (Dollars in millions) Universal Life Contracts Total account value (3) $ 6,244 $ 6,216 Net amount at risk (6) $ 75,304 $ 76,216 Average attained age of policyholders 64 years 63 years Variable Life Contracts Total account value (3) $ 3,379 $ 3,110 Net amount at risk (6) $ 24,546 $ 26,419 Average attained age of policyholders 49 years 48 years __________________ (1) The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the net amount at risk presented reflects the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 5 for a discussion of guaranteed minimum benefits which have been reinsured. (3) Includes the contract holder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contract holders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contract holders have achieved. (6) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. |
Insurance Liabilities | Insurance liabilities, including affiliated insurance liabilities on reinsurance assumed and ceded, are comprised of future policy benefits, policyholder account balances and other policy-related balances. Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at: December 31, 2017 2016 (In millions) Annuities $ 34,281 $ 33,155 Life 8,542 8,539 Run-off 27,027 24,819 Corporate & Other 7,534 7,430 Total $ 77,384 $ 73,943 See Note 5 for discussion of affiliated reinsurance liabilities included in the table above. |
Liabilities for Guarantees | Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity and universal and variable life contracts was as follows: Annuity Contracts Universal and Variable GMDBs GMIBs Secondary Total (In millions) Direct Balance at January 1, 2015 $ 630 $ 1,649 $ 2,374 $ 4,653 Incurred guaranteed benefits (1) 252 355 413 1,020 Paid guaranteed benefits (37 ) — — (37 ) Balance at December 31, 2015 845 2,004 2,787 5,636 Incurred guaranteed benefits 339 331 753 1,423 Paid guaranteed benefits (60 ) — — (60 ) Balance at December 31, 2016 1,124 2,335 3,540 6,999 Incurred guaranteed benefits 373 374 692 1,439 Paid guaranteed benefits (58 ) — — (58 ) Balance at December 31, 2017 $ 1,439 $ 2,709 $ 4,232 $ 8,380 Net Ceded/(Assumed) Balance at January 1, 2015 $ (10 ) $ 6 $ 846 $ 842 Incurred guaranteed benefits (1) 24 3 161 188 Paid guaranteed benefits (34 ) 1 — (33 ) Balance at December 31, 2015 (20 ) 10 1,007 997 Incurred guaranteed benefits 48 10 98 156 Paid guaranteed benefits (55 ) — — (55 ) Balance at December 31, 2016 (27 ) 20 1,105 1,098 Incurred guaranteed benefits 101 (20 ) (160 ) (79 ) Paid guaranteed benefits (56 ) — — (56 ) Balance at December 31, 2017 $ 18 $ — $ 945 $ 963 Net Balance at January 1, 2015 $ 640 $ 1,643 $ 1,528 $ 3,811 Incurred guaranteed benefits (1) 228 352 252 832 Paid guaranteed benefits (3 ) (1 ) — (4 ) Balance at December 31, 2015 865 1,994 1,780 4,639 Incurred guaranteed benefits 291 321 655 1,267 Paid guaranteed benefits (5 ) — — (5 ) Balance at December 31, 2016 1,151 2,315 2,435 5,901 Incurred guaranteed benefits 272 394 852 1,518 Paid guaranteed benefits (2 ) — — (2 ) Balance at December 31, 2017 $ 1,421 $ 2,709 $ 3,287 $ 7,417 (1) See Note 5. |
Fund Groupings | Account balances of contracts with guarantees were invested in separate account asset classes as follows at: December 31, 2017 2016 (In millions) Fund Groupings: Balanced $ 56,979 $ 54,371 Equity 47,571 44,750 Bond 6,662 6,686 Money Market 657 761 Total $ 111,869 $ 106,568 |
Schedule of liability recorded and collateral pledged for funding agreements | The liabilities for these funding agreements are included in policyholder account balances. Information related to FHLB funding agreements was as follows at: December 31, 2017 2016 (In millions) Liabilities $ 595 $ 645 Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value at: December 31, 2017 2016 (In millions) Invested assets on deposit (regulatory deposits) (1) $ 8,263 $ 7,648 Invested assets held in trust (reinsurance agreements) (2) 2,634 9,054 Invested assets pledged as collateral (3) 3,199 3,548 Total invested assets on deposit, held in trust and pledged as collateral $ 14,096 $ 20,250 __________________ (1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policy holder liabilities, of which $34 million of the assets on deposit balance represents restricted cash at both December 31, 2017 and 2016 . (2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions. $42 million and $15 million of the assets held in trust balance represents restricted cash at December 31, 2017 and 2016 , respectively. (3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 ) and derivative transactions (see Note 7 ). |
Deferred Policy Acquisition C32
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles | 4. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles See Note 1 for a description of capitalized acquisition costs. Traditional Life Insurance Contracts The Company amortizes DAC and VOBA related to these contracts (primarily term insurance) over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policy benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Fixed and Variable Universal Life Contracts and Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, benefit elections and withdrawals, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses, persistency and benefit elections and withdrawals are reasonably likely to significantly impact the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. Factors Impacting Amortization Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. The Company also annually reviews other long-term assumptions underlying the projections of estimated gross profits. These assumptions primarily relate to investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency, benefit elections and withdrawals and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross profits which may have significantly changed. If the update of assumptions causes expected future gross profits to increase, DAC and VOBA amortization will generally decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross profits to decrease. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. Information regarding DAC and VOBA was as follows: Years Ended December 31, 2017 2016 2015 (In millions) DAC: Balance at January 1, $ 5,652 $ 5,679 $ 5,819 Capitalizations 260 334 399 Amortization related to: Net investment gains (losses) and net derivative gains (losses) 258 1,400 109 Other expenses (445 ) (1,656 ) (744 ) Total amortization (187 ) (256 ) (635 ) Unrealized investment gains (losses) (47 ) (56 ) 96 Other — (49 ) — Balance at December 31, 5,678 5,652 5,679 VOBA: Balance at January 1, 641 711 763 Amortization related to: Net investment gains (losses) and net derivative gains (losses) (9 ) 2 (19 ) Other expenses (31 ) (117 ) (127 ) Total amortization (40 ) (115 ) (146 ) Unrealized investment gains (losses) 7 45 94 Balance at December 31, 608 641 711 Total DAC and VOBA: Balance at December 31, $ 6,286 $ 6,293 $ 6,390 Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at: December 31, 2017 2016 (In millions) Annuities $ 5,047 $ 4,878 Life 1,106 1,261 Run-off 5 6 Corporate & Other 128 148 Total $ 6,286 $ 6,293 Information regarding other intangibles was as follows: Years Ended December 31, 2017 2016 2015 (In millions) DSI: Balance at January 1, $ 445 $ 532 $ 586 Capitalization 2 3 4 Amortization (5 ) (88 ) (76 ) Unrealized investment gains (losses) (11 ) (2 ) 18 Balance at December 31, $ 431 $ 445 $ 532 VODA: Balance at January 1, $ 120 $ 136 $ 155 Amortization (15 ) (16 ) (19 ) Balance at December 31, $ 105 $ 120 $ 136 Accumulated amortization $ 155 $ 140 $ 124 The estimated future amortization expense to be reported in other expenses for the next five years is as follows: VOBA VODA (In millions) 2018 $ 98 $ 14 2019 $ 84 $ 13 2020 $ 62 $ 12 2021 $ 53 $ 10 2022 $ 46 $ 9 |
Schedule of Deferred Policy Acquisition Costs and Value of Business Acquired | Information regarding DAC and VOBA was as follows: Years Ended December 31, 2017 2016 2015 (In millions) DAC: Balance at January 1, $ 5,652 $ 5,679 $ 5,819 Capitalizations 260 334 399 Amortization related to: Net investment gains (losses) and net derivative gains (losses) 258 1,400 109 Other expenses (445 ) (1,656 ) (744 ) Total amortization (187 ) (256 ) (635 ) Unrealized investment gains (losses) (47 ) (56 ) 96 Other — (49 ) — Balance at December 31, 5,678 5,652 5,679 VOBA: Balance at January 1, 641 711 763 Amortization related to: Net investment gains (losses) and net derivative gains (losses) (9 ) 2 (19 ) Other expenses (31 ) (117 ) (127 ) Total amortization (40 ) (115 ) (146 ) Unrealized investment gains (losses) 7 45 94 Balance at December 31, 608 641 711 Total DAC and VOBA: Balance at December 31, $ 6,286 $ 6,293 $ 6,390 |
Schedule of Deferred Policy Acquisition Costs and Value of Business Acquired | Information regarding DAC and VOBA was as follows: Years Ended December 31, 2017 2016 2015 (In millions) DAC: Balance at January 1, $ 5,652 $ 5,679 $ 5,819 Capitalizations 260 334 399 Amortization related to: Net investment gains (losses) and net derivative gains (losses) 258 1,400 109 Other expenses (445 ) (1,656 ) (744 ) Total amortization (187 ) (256 ) (635 ) Unrealized investment gains (losses) (47 ) (56 ) 96 Other — (49 ) — Balance at December 31, 5,678 5,652 5,679 VOBA: Balance at January 1, 641 711 763 Amortization related to: Net investment gains (losses) and net derivative gains (losses) (9 ) 2 (19 ) Other expenses (31 ) (117 ) (127 ) Total amortization (40 ) (115 ) (146 ) Unrealized investment gains (losses) 7 45 94 Balance at December 31, 608 641 711 Total DAC and VOBA: Balance at December 31, $ 6,286 $ 6,293 $ 6,390 |
Information regarding Deferred Policy Acquisition Costs and Value of Business Acquired by Segment | Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at: December 31, 2017 2016 (In millions) Annuities $ 5,047 $ 4,878 Life 1,106 1,261 Run-off 5 6 Corporate & Other 128 148 Total $ 6,286 $ 6,293 |
Deferred Sales Inducements of Business Acquired | Information regarding other intangibles was as follows: Years Ended December 31, 2017 2016 2015 (In millions) DSI: Balance at January 1, $ 445 $ 532 $ 586 Capitalization 2 3 4 Amortization (5 ) (88 ) (76 ) Unrealized investment gains (losses) (11 ) (2 ) 18 Balance at December 31, $ 431 $ 445 $ 532 VODA: Balance at January 1, $ 120 $ 136 $ 155 Amortization (15 ) (16 ) (19 ) Balance at December 31, $ 105 $ 120 $ 136 Accumulated amortization $ 155 $ 140 $ 124 |
Value of Distribution Agreements and Customer Relationships Acquired | Information regarding other intangibles was as follows: Years Ended December 31, 2017 2016 2015 (In millions) DSI: Balance at January 1, $ 445 $ 532 $ 586 Capitalization 2 3 4 Amortization (5 ) (88 ) (76 ) Unrealized investment gains (losses) (11 ) (2 ) 18 Balance at December 31, $ 431 $ 445 $ 532 VODA: Balance at January 1, $ 120 $ 136 $ 155 Amortization (15 ) (16 ) (19 ) Balance at December 31, $ 105 $ 120 $ 136 Accumulated amortization $ 155 $ 140 $ 124 |
Estimated Future Amortization Expense (Credit) | The estimated future amortization expense to be reported in other expenses for the next five years is as follows: VOBA VODA (In millions) 2018 $ 98 $ 14 2019 $ 84 $ 13 2020 $ 62 $ 12 2021 $ 53 $ 10 2022 $ 46 $ 9 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Effects of Reinsurance [Line Items] | |
Effect of reinsurance | The amounts on the consolidated and combined statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Premiums Direct premiums $ 1,795 $ 2,296 $ 2,472 Reinsurance assumed 11 79 297 Reinsurance ceded (943 ) (1,153 ) (1,090 ) Net premiums $ 863 $ 1,222 $ 1,679 Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees $ 4,430 $ 4,300 $ 4,472 Reinsurance assumed 96 119 132 Reinsurance ceded (628 ) (637 ) (594 ) Net universal life and investment-type product policy fees $ 3,898 $ 3,782 $ 4,010 Other revenues Direct other revenues $ 576 $ 326 $ 292 Reinsurance assumed 28 87 — Reinsurance ceded 47 323 130 Net other revenues $ 651 $ 736 $ 422 Policyholder benefits and claims Direct policyholder benefits and claims $ 5,228 $ 6,351 $ 5,208 Reinsurance assumed 31 123 298 Reinsurance ceded (1,623 ) (2,571 ) (2,237 ) Net policyholder benefits and claims $ 3,636 $ 3,903 $ 3,269 The amounts on the consolidated and combined balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at: December 31, 2017 2016 Direct Assumed Ceded Total Balance Sheet Direct Assumed Ceded Total Balance Sheet (In millions) Assets Premiums, reinsurance and other receivables $ 647 $ 27 $ 12,851 $ 13,525 $ 1,152 $ 21 $ 13,474 $ 14,647 Liabilities Policyholder account balances $ 37,510 $ 273 $ — $ 37,783 $ 37,066 $ 460 $ — $ 37,526 Other policy-related balances $ 1,311 $ 1,674 $ — $ 2,985 $ 1,368 $ 1,677 $ — $ 3,045 Other liabilities $ 4,475 $ 32 $ 756 $ 5,263 $ 4,818 $ 12 $ 1,099 $ 5,929 Effective December 1, 2016, the Company terminated two agreements with an third-party reinsurer which covered 90% of the liabilities on certain participating whole life insurance policies issued between April 1, 2000 and December 31, 2001 by MLIC. This termination resulted in a decrease in other invested assets of $713 million , a decrease in DAC and VOBA of $95 million , a decrease in future policy benefits of $654 million , and a decrease in other liabilities of $43 million . The Company recognized a loss of approximately $72 million , net of income tax, as a result of this transaction. |
Affiliated Entity [Member] | |
Effects of Reinsurance [Line Items] | |
Effect of reinsurance | Information regarding the significant effects of reinsurance with former MetLife affiliates included on the consolidated and combined statements of operations was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Premiums Reinsurance assumed $ 11 $ 34 $ 227 Reinsurance ceded (537 ) (766 ) (687 ) Net premiums $ (526 ) $ (732 ) $ (460 ) Universal life and investment-type product policy fees Reinsurance assumed $ 96 $ 119 $ 132 Reinsurance ceded (14 ) (60 ) (59 ) Net universal life and investment-type product policy fees $ 82 $ 59 $ 73 Other revenues Reinsurance assumed $ 27 $ 56 $ — Reinsurance ceded 44 320 130 Net other revenues $ 71 $ 376 $ 130 Policyholder benefits and claims Reinsurance assumed $ 30 $ 86 $ 248 Reinsurance ceded (420 ) (757 ) (678 ) Net policyholder benefits and claims $ (390 ) $ (671 ) $ (430 ) Information regarding the significant effects of reinsurance with former MetLife affiliates included on the consolidated and combined balance sheets was as follows at: December 31, 2017 2016 Assumed Ceded Assumed Ceded (In millions) Assets Premiums, reinsurance and other receivables $ 18 $ 3,410 $ 21 $ 4,020 Liabilities Policyholder account balances $ — $ — $ 460 $ — Other policy-related balances $ 1,674 $ — $ 1,677 $ — Other liabilities $ 30 $ 401 $ 10 $ 715 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the fixed maturity and equity securities AFS by sector at: December 31, 2017 December 31, 2016 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Temporary Losses OTTI Gains Temporary Losses OTTI (In millions) Fixed maturity securities: (2) U.S. corporate $ 21,190 $ 1,859 $ 92 $ — $ 22,957 $ 21,278 $ 1,324 $ 291 $ — $ 22,311 U.S. government and agency 14,548 1,862 118 — 16,292 12,032 1,294 236 — 13,090 RMBS 7,749 285 60 (3 ) 7,977 7,961 206 144 — 8,023 Foreign corporate 6,703 386 66 — 7,023 6,343 230 180 — 6,393 State and political subdivision 3,635 553 6 1 4,181 3,590 393 38 — 3,945 CMBS 3,386 53 17 (1 ) 3,423 3,799 44 32 (1 ) 3,812 ABS 1,810 21 2 — 1,829 2,654 12 14 — 2,652 Foreign government 1,152 161 4 — 1,309 1,058 116 12 — 1,162 Total fixed maturity securities $ 60,173 $ 5,180 $ 365 $ (3 ) $ 64,991 $ 58,715 $ 3,619 $ 947 $ (1 ) $ 61,388 Equity securities (2) $ 212 $ 21 $ 1 $ — $ 232 $ 280 $ 29 $ 9 $ — $ 300 __________________ (1) Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).” (2) Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are Structured Securities. |
Available-for-sale fixed maturity securities by contractual maturity date | The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2017 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In millions) Amortized cost $ 1,871 $ 10,548 $ 11,478 $ 23,331 $ 12,945 $ 60,173 Estimated fair value $ 1,876 $ 10,890 $ 11,816 $ 27,180 $ 13,229 $ 64,991 |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at: December 31, 2017 December 31, 2016 Less than 12 Months Equal to or Greater than 12 Months Less than 12 Months Equal to or Greater than 12 Months Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (Dollars in millions) Fixed maturity securities: U.S. corporate $ 1,783 $ 21 $ 1,451 $ 71 $ 4,676 $ 189 $ 745 $ 102 U.S. government and agency 4,962 38 1,573 80 4,396 236 — — RMBS 2,367 14 1,332 43 3,494 112 818 32 Foreign corporate 637 8 603 58 1,466 66 633 114 State and political subdivision 170 3 106 4 889 35 29 3 CMBS 619 6 335 10 1,572 27 171 4 ABS 170 — 74 2 478 6 461 8 Foreign government 155 2 69 2 273 11 6 1 Total fixed maturity securities $ 10,863 $ 92 $ 5,543 $ 270 $ 17,244 $ 682 $ 2,863 $ 264 Equity securities $ 17 $ — $ 10 $ 1 $ 57 $ 2 $ 40 $ 7 Total number of securities in an unrealized loss position 922 642 1,741 483 |
Disclosure of Mortgage Loans Net of Valuation Allowance | Mortgage loans are summarized as follows at: December 31, 2017 2016 Carrying Value % of Total Carrying Value % of Total (Dollars in millions) Mortgage loans: Commercial $ 7,260 67.5 % $ 6,523 69.6 % Agricultural 2,276 21.2 1,892 20.2 Residential 1,138 10.6 867 9.2 Subtotal (1) 10,674 99.3 9,282 99.0 Valuation allowances (2) (47 ) (0.4 ) (40 ) (0.4 ) Subtotal mortgage loans, net 10,627 98.9 9,242 98.6 Commercial mortgage loans held by CSEs — FVO 115 1.1 136 1.4 Total mortgage loans, net $ 10,742 100.0 % $ 9,378 100.0 % __________________ (1) The Company purchases unaffiliated mortgage loans under a master participation agreement from a former affiliate, simultaneously with the former affiliate’s origination or acquisition of mortgage loans. The aggregate amount of unaffiliated mortgage loan participation interests purchased by the Company from the former affiliate during the years ended December 31, 2017 , 2016 and 2015 were $1.2 billion , $2.4 billion and $2.0 billion , respectively. In connection with the mortgage loan participations, the former affiliate collected mortgage loan principal and interest payments on the Company’s behalf and the former affiliate remitted such payments to the Company in the amount of $946 million , $1.6 billion and $1.0 billion during the years ended December 31, 2017 , 2016 and 2015 , respectively. Purchases of mortgage loans from third parties were $420 million and $619 million for the years ended December 31, 2017 and 2016 , respectively, and were primarily comprised of residential mortgage loans. (2) The valuation allowances were primarily from collective evaluation (non-specific loan related). |
Investment in leveraged leases | Investment in leveraged leases consisted of the following at: December 31, 2017 2016 (In millions) Rental receivables, net $ 87 $ 87 Estimated residual values 14 14 Subtotal 101 101 Unearned income (35 ) (32 ) Investment in leases, net of non-recourse debt $ 66 $ 69 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) | The components of net unrealized investment gains (losses), included in AOCI, were as follows: Years Ended December 31, 2017 2016 2015 (In millions) Fixed maturity securities $ 4,806 $ 2,663 $ 2,324 Fixed maturity securities with noncredit OTTI losses in AOCI 2 1 (23 ) Total fixed maturity securities 4,808 2,664 2,301 Equity securities 39 32 54 Derivatives 239 414 388 Short-term investments — (42 ) — Other (8 ) (26 ) 5 Subtotal 5,078 3,042 2,748 Amounts allocated from: Future policy benefits (2,626 ) (802 ) (126 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI (2 ) (2 ) (1 ) DAC, VOBA and DSI (265 ) (214 ) (202 ) Subtotal (2,893 ) (1,018 ) (329 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI — — 9 Deferred income tax benefit (expense) (459 ) (712 ) (855 ) Net unrealized investment gains (losses) $ 1,726 $ 1,312 $ 1,573 The changes in net unrealized investment gains (losses) were as follows: Years Ended December 31, 2017 2016 2015 (In millions) Balance at January 1, $ 1,312 $ 1,573 $ 2,745 Fixed maturity securities on which noncredit OTTI losses have been recognized 1 24 15 Unrealized investment gains (losses) during the year 2,035 270 (2,513 ) Unrealized investment gains (losses) relating to: Future policy benefits (1,824 ) (676 ) 487 DAC and VOBA related to noncredit OTTI losses recognized in AOCI — (1 ) 1 DAC, VOBA and DSI (51 ) (12 ) 207 Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI — (9 ) (5 ) Deferred income tax benefit (expense) 253 143 636 Balance at December 31, $ 1,726 $ 1,312 $ 1,573 Change in net unrealized investment gains (losses) $ 414 $ (261 ) $ (1,172 ) |
Securities Lending | Elements of the securities lending program are presented below at: December 31, 2017 2016 (In millions) Securities on loan: (1) Amortized cost $ 3,085 $ 5,895 Estimated fair value $ 3,748 $ 6,555 Cash collateral received from counterparties (2) $ 3,791 $ 6,642 Security collateral received from counterparties (3) $ 29 $ 27 Reinvestment portfolio — estimated fair value $ 3,823 $ 6,571 __________________ (1) Included within fixed maturity securities. (2) Included within payables for collateral under securities loaned and other transactions. (3) Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated and combined financial statements. The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at: December 31, 2017 December 31, 2016 Remaining Tenor of Securities Lending Agreements Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total Open (1) 1 Month or Less 1 to 6 Months Total (In millions) Cash collateral liability by loaned security type: U.S. government and agency $ 1,626 $ 964 $ 1,201 $ 3,791 $ 2,129 $ 1,906 $ 1,743 $ 5,778 U.S. corporate — — — — — 480 — 480 Agency RMBS — — — — — — 274 274 Foreign corporate — — — — — 58 — 58 Foreign government — — — — — 52 — 52 Total $ 1,626 $ 964 $ 1,201 $ 3,791 $ 2,129 $ 2,496 $ 2,017 $ 6,642 __________________ (1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral. |
Invested Assets on Deposit, Held in Trust and Pledged as Collateral | The liabilities for these funding agreements are included in policyholder account balances. Information related to FHLB funding agreements was as follows at: December 31, 2017 2016 (In millions) Liabilities $ 595 $ 645 Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value at: December 31, 2017 2016 (In millions) Invested assets on deposit (regulatory deposits) (1) $ 8,263 $ 7,648 Invested assets held in trust (reinsurance agreements) (2) 2,634 9,054 Invested assets pledged as collateral (3) 3,199 3,548 Total invested assets on deposit, held in trust and pledged as collateral $ 14,096 $ 20,250 __________________ (1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policy holder liabilities, of which $34 million of the assets on deposit balance represents restricted cash at both December 31, 2017 and 2016 . (2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions. $42 million and $15 million of the assets held in trust balance represents restricted cash at December 31, 2017 and 2016 , respectively. (3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 ) and derivative transactions (see Note 7 ). |
Purchased credit impaired investments, by invested asset class, held | The following table presents information about PCI fixed maturity securities acquired during the periods indicated: Years Ended December 31, 2017 2016 (In millions) Contractually required payments (including interest) $ 3 $ 567 Cash flows expected to be collected (1) $ 3 $ 490 Fair value of investments acquired $ 2 $ 347 __________________ (1) Represents undiscounted principal and interest cash flow expectations, at the date of acquisition. The Company’s PCI fixed maturity securities were as follows at: December 31, 2017 2016 (In millions) Outstanding principal and interest balance (1) $ 1,270 $ 1,497 Carrying value (2) $ 1,044 $ 1,142 __________________ (1) Represents the contractually required payments, which is the sum of contractual principal, whether or not currently due, and accrued interest. (2) Estimated fair value plus accrued interest. The following table presents activity for the accretable yield on PCI fixed maturity securities for: Years Ended December 31, 2017 2016 (In millions) Accretable yield, January 1, $ 429 $ 420 Investments purchased 1 143 Accretion recognized in earnings (69 ) (68 ) Disposals (10 ) (13 ) Reclassification (to) from nonaccretable difference 34 (53 ) Accretable yield, December 31, $ 385 $ 429 |
The Components of Net Investment Income | The components of net investment income were as follows: Years Ended December 31, 2017 2016 2015 (In millions) Investment income: Fixed maturity securities $ 2,420 $ 2,642 $ 2,478 Equity securities 12 19 19 Mortgage loans 446 401 373 Policy loans 73 78 78 Real estate and real estate joint ventures 53 32 108 Other limited partnership interests 184 163 134 Cash, cash equivalents and short-term investments 35 20 9 Other 25 16 12 Subtotal 3,248 3,371 3,211 Less: Investment expenses 178 176 128 Subtotal, net 3,070 3,195 3,083 FVO CSEs — interest income — commercial mortgage loans 8 12 16 Net investment income $ 3,078 $ 3,207 $ 3,099 |
The components of net investment gains (losses) | The components of net investment gains (losses) were as follows: Years Ended December 31, 2017 2016 2015 (In millions) Total gains (losses) on fixed maturity securities: Total OTTI losses recognized — by sector and industry: U.S. and foreign corporate securities — by industry: Industrial $ — $ (16 ) $ (3 ) Consumer — — (8 ) Utility — — (6 ) Total U.S. and foreign corporate securities — (16 ) (17 ) RMBS — (6 ) (14 ) State and political subdivision (1 ) — — OTTI losses on fixed maturity securities recognized in earnings (1 ) (22 ) (31 ) Fixed maturity securities — net gains (losses) on sales and disposals (25 ) (40 ) (59 ) Total gains (losses) on fixed maturity securities (26 ) (62 ) (90 ) Total gains (losses) on equity securities: OTTI losses on equity securities recognized in earnings (4 ) (2 ) (3 ) Equity securities — net gains (losses) on sales and disposals 26 10 18 Total gains (losses) on equity securities 22 8 15 Mortgage loans (9 ) 6 (11 ) Real estate and real estate joint ventures 4 (34 ) 98 Other limited partnership interests (11 ) (7 ) (1 ) Other (5 ) 11 — Subtotal (25 ) (78 ) 11 FVO CSEs: Commercial mortgage loans (3 ) (2 ) (7 ) Long-term debt — related to commercial mortgage loans 1 1 4 Non-investment portfolio gains (losses) (1 ) 1 (1 ) Subtotal (3 ) — (4 ) Total net investment gains (losses) $ (28 ) $ (78 ) $ 7 |
Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains and losses | Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) were as shown in the table below. Years Ended December 31, 2017 2016 2015 2017 2016 2015 Fixed Maturity Securities Equity Securities (In millions) Proceeds $ 12,665 $ 39,800 $ 32,524 $ 68 $ 48 $ 80 Gross investment gains $ 59 $ 266 $ 190 $ 27 $ 10 $ 26 Gross investment losses (84 ) (306 ) (249 ) (1 ) — (8 ) OTTI losses (1 ) (22 ) (31 ) (4 ) (2 ) (3 ) Net investment gains (losses) $ (26 ) $ (62 ) $ (90 ) $ 22 $ 8 $ 15 |
Rollforward of the Cumulative Credit Loss Component of OTTI income (loss) | The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in OCI: Years Ended December 31, 2017 2016 (In millions) Balance at January 1, $ 28 $ 66 Additions: Additional impairments — credit loss OTTI on securities previously impaired — 5 Reductions: Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI (28 ) (42 ) Increase in cash flows — accretion of previous credit loss OTTI — (1 ) Balance at December 31, $ — $ 28 |
Schedule of Gain (Loss) on Securitizations or Asset-backed Financing Arrangements of Financial Assets Accounted for as Sale [Table Text Block] | The Company previously transferred fixed maturity securities, mortgage loans, real estate and real estate joint ventures, to and from former affiliates, which were as follows: Years Ended December 31, 2017 2016 2015 (In millions) Estimated fair value of invested assets transferred to former affiliates $ 292 $ 1,517 $ 185 Amortized cost of invested assets transferred to former affiliates $ 294 $ 1,419 $ 169 Net investment gains (losses) recognized on transfers $ (2 ) $ 27 $ 16 Change in additional paid-in-capital recognized on transfers $ — $ 71 $ — Estimated fair value of invested assets transferred from former affiliates $ — $ 5,582 $ 928 |
Variable Interest Entity, Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Variable Interest Entities | The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at: December 31, 2017 2016 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) MRSC (collateral financing arrangement (primarily securities)) (1) $ — $ — $ 3,422 $ — CSEs (assets (primarily loans) and liabilities (primarily debt)) (2) 116 11 137 24 Total $ 116 $ 11 $ 3,559 $ 24 __________________ (1) In April 2017, these assets were liquidated and the proceeds were used to repay the MRSC collateral financing arrangement (see Note 9 ). (2) The Company consolidates entities that are structured as CMBS. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of $86 million and $95 million at estimated fair value at December 31, 2017 and 2016 , respectively. |
Variable Interest Entity, Not Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Variable Interest Entities | The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: December 31, 2017 2016 Carrying Amount Maximum Exposure to Loss (1) Carrying Amount Maximum Exposure to Loss (1) (In millions) Fixed maturity securities AFS: Structured Securities (2) $ 11,461 $ 11,461 $ 13,062 $ 13,062 U.S. and foreign corporate 504 504 518 518 Other limited partnership interests 1,511 2,463 1,495 2,292 Other investments (3) 82 89 90 101 Total $ 13,558 $ 14,517 $ 15,165 $ 15,973 __________________ (1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. (3) Other investments are comprised of real estate joint ventures, other invested assets and non-redeemable preferred stock. |
Commercial | |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of commercial mortgage loans was as follows at: Recorded Investment Estimated Fair Value % of Total Debt Service Coverage Ratios Total % of Total > 1.20x 1.00x - 1.20x < 1.00x (Dollars in millions) December 31, 2017 Loan-to-value ratios: Less than 65% $ 6,194 $ 293 $ 33 $ 6,520 89.8 % $ 6,681 90.0 % 65% to 75% 642 — 14 656 9.0 658 8.9 76% to 80% 42 — 9 51 0.7 50 0.7 Greater than 80% — 9 24 33 0.5 30 0.4 Total $ 6,878 $ 302 $ 80 $ 7,260 100.0 % $ 7,419 100.0 % December 31, 2016 Loan-to-value ratios: Less than 65% $ 5,744 $ 230 $ 167 $ 6,141 94.1 % $ 6,222 94.3 % 65% to 75% 291 — 19 310 4.8 303 4.6 76% to 80% 34 — — 34 0.5 33 0.5 Greater than 80% 24 14 — 38 0.6 37 0.6 Total $ 6,093 $ 244 $ 186 $ 6,523 100.0 % $ 6,595 100.0 % |
Agricultural Portfolio Segment [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of agricultural mortgage loans was as follows at: December 31, 2017 2016 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 2,113 92.8 % $ 1,849 97.7 % 65% to 75% 163 7.2 43 2.3 Total $ 2,276 100.0 % $ 1,892 100.0 % |
Residential mortgage loans portfolio segment [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of residential mortgage loans was as follows at: December 31, 2017 2016 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 1,106 97.2 % $ 856 98.7 % Nonperforming 32 2.8 11 1.3 Total $ 1,138 100.0 % $ 867 100.0 % |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Earned Income On Derivatives And Income Statement Location | The following table presents earned income on derivatives: Years Ended December 31, 2017 2016 2015 (In millions) Qualifying hedges: Net investment income $ 23 $ 21 $ 13 Interest credited to policyholder account balances — — (2 ) Nonqualifying hedges: Net derivative gains (losses) 314 461 361 Policyholder benefits and claims 8 15 14 Total $ 345 $ 497 $ 386 |
Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps | The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at: December 31, 2017 2016 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Fair Value of Credit Default Swaps Maximum Weighted Estimated Fair Value of Credit Default Swaps Maximum Weighted (Dollars in millions) Aaa/Aa/A $ 12 $ 558 2.8 $ 8 $ 478 3.6 Baa 28 1,317 4.7 20 1,415 4.4 Ba — 25 4.5 — 20 2.7 Total $ 40 $ 1,900 4.1 $ 28 $ 1,913 4.2 __________________ (1) Includes both single name credit default swaps that may be referenced to the credit of corporations, foreign governments, or state and political subdivisions and credit default swap referencing indices. T he rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service, Inc. (“Moody’s”), S&P and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used. (2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts. |
Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: December 31, 2017 2016 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In millions) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 2,233 $ 3,081 $ 3,411 $ 2,929 OTC-cleared and Exchange-traded (1), (6) 70 40 315 905 Total gross estimated fair value of derivatives (1) 2,303 3,121 3,726 3,834 Amounts offset on the consolidated and combined balance sheets — — — — Estimated fair value of derivatives presented on the consolidated and combined balance sheets (1), (6) 2,303 3,121 3,726 3,834 Gross amounts not offset on the consolidated and combined balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (1,942 ) (1,942 ) (2,231 ) (2,231 ) OTC-cleared and Exchange-traded (1 ) (1 ) (165 ) (165 ) Cash collateral: (3), (4) OTC-bilateral (257 ) — (653 ) — OTC-cleared and Exchange-traded (28 ) (39 ) (92 ) (740 ) Securities collateral: (5) OTC-bilateral (31 ) (1,138 ) (429 ) (698 ) OTC-cleared and Exchange-traded — — — — Net amount after application of master netting agreements and collateral $ 44 $ 1 $ 156 $ — __________________ (1) At December 31, 2017 and 2016 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $49 million and $104 million , respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($8) million and ($49) million , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. (4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2017 and 2016 , the Company received excess cash collateral of $94 million and $4 million , respectively, and provided excess cash collateral of $5 million and $25 million , respectively, which is not included in the table above due to the foregoing limitation. (5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at December 31, 2017 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At December 31, 2017 and 2016 , the Company received excess securities collateral with an estimated fair value of $337 million and $135 million , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At December 31, 2017 and 2016 , the Company provided excess securities collateral with an estimated fair value of $471 million and $108 million , respectively, for its OTC-bilateral derivatives, $427 million and $630 million , respectively, for its OTC-cleared derivatives, and $118 million and $453 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. (6) Effective January 3, 2017, the CME amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. See Note 1 for further information on the CME amendments. |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at: Primary Underlying Risk Exposure December 31, 2017 2016 Estimated Fair Value Estimated Fair Value Gross Assets Liabilities Gross Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments Fair value hedges: Interest rate swaps Interest rate $ 175 $ 44 $ — $ 310 $ 41 $ — Cash flow hedges: Interest rate swaps Interest rate 27 5 — 45 7 — Foreign currency swaps Foreign currency exchange rate 1,827 94 75 1,493 202 11 Subtotal 1,854 99 75 1,538 209 11 Total qualifying hedges 2,029 143 75 1,848 250 11 Derivatives Not Designated or Not Qualifying as Hedging Instruments Interest rate swaps Interest rate 20,213 922 774 28,175 1,928 1,687 Interest rate floors Interest rate — — — 2,100 6 2 Interest rate caps Interest rate 2,671 7 — 12,042 25 — Interest rate futures Interest rate 282 1 — 1,288 9 — Interest rate options Interest rate 24,600 133 63 15,520 136 — Interest rate total return swaps Interest rate — — — 3,876 — 611 Foreign currency swaps Foreign currency exchange rate 1,115 71 42 1,261 155 4 Foreign currency forwards Foreign currency exchange rate 130 — 1 158 9 — Credit default swaps — purchased Credit 65 — 1 37 — — Credit default swaps — written Credit 1,900 40 — 1,913 28 — Equity futures Equity market 2,713 15 — 8,037 38 — Equity index options Equity market 47,066 794 1,664 37,501 897 934 Equity variance swaps Equity market 8,998 128 430 14,894 140 517 Equity total return swaps Equity market 1,767 — 79 2,855 1 117 Total non-designated or nonqualifying derivatives 111,520 2,111 3,054 129,657 3,372 3,872 Total $ 113,549 $ 2,254 $ 3,129 $ 131,505 $ 3,622 $ 3,883 |
Schedule of Derivative Instruments | 1) After taking into consideration the existence of netting agreements. |
Embedded Derivative Financial Instruments [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents changes in estimated fair value related to embedded derivatives: Years Ended December 31, 2017 2016 2015 (In millions) Net derivative gains (losses) (1), (2) $ 1,082 $ (1,824 ) $ (175 ) Policyholder benefits and claims $ (16 ) $ (4 ) $ 21 __________________ (1) The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $290 million , $246 million and $26 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment, were less than $1 million , ($22) million and ($5) million for the years ended December 31, 2017, 2016 and 2015, respectively. (2) See Note 5 for discussion of related party net derivative gains (losses). |
Schedule of Derivative Instruments | The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at: December 31, Balance Sheet Location 2017 2016 (In millions) Embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits Premiums, reinsurance and other receivables $ 227 $ 628 Options embedded in debt or equity securities Investments (52 ) (49 ) Embedded derivatives within asset host contracts $ 175 $ 579 Embedded derivatives within liability host contracts: Direct guaranteed minimum benefits Policyholder account balances $ 1,212 $ 2,359 Assumed reinsurance on fixed deferred annuities Policyholder account balances 1 — Assumed guaranteed minimum benefits Policyholder account balances — 460 Fixed annuities with equity indexed returns Policyholder account balances 674 192 Embedded derivatives within liability host contracts $ 1,887 $ 3,011 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at: December 31, 2017 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 22,048 $ 909 $ 22,957 U.S government and agency 8,304 7,988 — 16,292 RMBS — 6,989 988 7,977 Foreign corporate — 5,935 1,088 7,023 State and political subdivision — 4,181 — 4,181 CMBS — 3,287 136 3,423 ABS — 1,723 106 1,829 Foreign government — 1,304 5 1,309 Total fixed maturity securities 8,304 53,455 3,232 64,991 Equity securities 18 90 124 232 Short-term investments 142 156 14 312 Commercial mortgage loans held by CSEs — FVO — 115 — 115 Loans to MetLife, Inc. — — — — Derivative assets: (1) Interest rate 1 1,111 — 1,112 Foreign currency exchange rate — 165 — 165 Credit — 30 10 40 Equity market 15 773 149 937 Total derivative assets 16 2,079 159 2,254 Embedded derivatives within asset host contracts (2) — — 227 227 Separate account assets 410 117,842 5 118,257 Total assets $ 8,890 $ 173,737 $ 3,761 $ 186,388 Liabilities Derivative liabilities: (1) Interest rate $ — $ 837 $ — $ 837 Foreign currency exchange rate — 117 1 118 Credit — 1 — 1 Equity market — 1,736 437 2,173 Total derivative liabilities — 2,691 438 3,129 Embedded derivatives within liability host contracts (2) — — 1,887 1,887 Long-term debt of CSEs — FVO — 11 — 11 Total liabilities $ — $ 2,702 $ 2,325 $ 5,027 December 31, 2016 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 20,828 $ 1,483 $ 22,311 U.S. government and agency 6,210 6,880 — 13,090 RMBS — 6,703 1,320 8,023 Foreign corporate — 5,485 908 6,393 State and political subdivision — 3,928 17 3,945 CMBS — 3,645 167 3,812 ABS — 2,428 224 2,652 Foreign government — 1,162 — 1,162 Total fixed maturity securities 6,210 51,059 4,119 61,388 Equity securities 39 124 137 300 Short-term investments 718 568 2 1,288 Commercial mortgage loans held by CSEs — FVO — 136 — 136 Loans to MetLife, Inc. — 1,090 — 1,090 Derivative assets: (1) Interest rate 9 2,143 — 2,152 Foreign currency exchange rate — 366 — 366 Credit — 20 8 28 Equity market 38 859 179 1,076 Total derivative assets 47 3,388 187 3,622 Embedded derivatives within asset host contracts (2) — — 628 628 Separate account assets 720 112,313 10 113,043 Total assets $ 7,734 $ 168,678 $ 5,083 $ 181,495 Liabilities Derivative liabilities: (1) Interest rate $ — $ 1,689 $ 611 $ 2,300 Foreign currency exchange rate — 15 — 15 Credit — — — — Equity market — 1,038 530 1,568 Total derivative liabilities — 2,742 1,141 3,883 Embedded derivatives within liability host contracts (2) — — 3,011 3,011 Long-term debt of CSEs — FVO — 23 — 23 Total liabilities $ — $ 2,765 $ 4,152 $ 6,917 __________________ (1) Derivative assets are presented within other invested assets on the consolidated and combined balance sheets and derivative liabilities are presented within other liabilities on the consolidated and combined balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated and combined balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the consolidated and combined balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances, on the consolidated and combined balance sheets. At December 31, 2017 and 2016 , debt and equity securities also included embedded derivatives of ($52) million and ($49) million , respectively. |
Fair Value Inputs, Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: December 31, 2017 December 31, 2016 Impact of Valuation Techniques Significant Unobservable Inputs Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 93 - 142 111 18 - 138 104 Increase • Market pricing • Quoted prices (4) — - 443 77 13 - 700 99 Increase • Consensus pricing • Offered quotes (4) 37 - 109 85 Increase RMBS • Market pricing • Quoted prices (4) 3 - 107 95 38 - 111 91 Increase (5) CMBS • Market pricing • Quoted prices (4) 8 - 104 88 20 - 104 104 Increase (5) • Consensus pricing • Offered quotes (4) 105 - 105 105 99 - 99 99 Increase (5) ABS • Market pricing • Quoted prices (4) 100 - 104 101 94 - 106 100 Increase (5) • Consensus pricing • Offered quotes (4) 100 - 100 100 98 - 100 99 Increase (5) Derivatives Interest rate • Present value techniques • Repurchase rates (7) — - — (44) - 18 Decrease (6) Credit • Present value techniques • Credit spreads (8) — - — 97 - 98 Decrease (6) • Consensus pricing • Offered quotes (9) Equity market • Present value techniques or option pricing models • Volatility (10) 11% - 31% 14% - 32% Increase (6) • Correlation (11) 10% - 30% 40% - 40% Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates: Ages 0 - 40 0% - 0.09% 0% - 0.09% Decrease (12) Ages 41 - 60 0.04% - 0.65% 0.04% - 0.65% Decrease (12) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (12) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (13) Durations 11 - 20 2% - 100% 2% - 100% Decrease (13) Durations 21 - 116 2% - 100% 2% - 100% Decrease (13) • Utilization rates 0% - 25% 0% - 25% Increase (14) • Withdrawal rates 0.25% - 10% 0.25% - 10% (15) • Long-term equity volatilities 17.40% - 25% 17.40% - 25% Increase (16) • Nonperformance risk spread 0.64% - 1.43% 0.04% - 0.57% Decrease (17) __________________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (5) Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (6) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. (7) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points. (8) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. (9) At December 31, 2017 and 2016 , independent non-binding broker quotations were used in the determination of 1% and 3% of the total net derivative estimated fair value, respectively. (10) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (11) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. (12) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (13) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (14) The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (15) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (16) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (17) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. |
Fair Value Inputs, Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: December 31, 2017 December 31, 2016 Impact of Valuation Techniques Significant Unobservable Inputs Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 93 - 142 111 18 - 138 104 Increase • Market pricing • Quoted prices (4) — - 443 77 13 - 700 99 Increase • Consensus pricing • Offered quotes (4) 37 - 109 85 Increase RMBS • Market pricing • Quoted prices (4) 3 - 107 95 38 - 111 91 Increase (5) CMBS • Market pricing • Quoted prices (4) 8 - 104 88 20 - 104 104 Increase (5) • Consensus pricing • Offered quotes (4) 105 - 105 105 99 - 99 99 Increase (5) ABS • Market pricing • Quoted prices (4) 100 - 104 101 94 - 106 100 Increase (5) • Consensus pricing • Offered quotes (4) 100 - 100 100 98 - 100 99 Increase (5) Derivatives Interest rate • Present value techniques • Repurchase rates (7) — - — (44) - 18 Decrease (6) Credit • Present value techniques • Credit spreads (8) — - — 97 - 98 Decrease (6) • Consensus pricing • Offered quotes (9) Equity market • Present value techniques or option pricing models • Volatility (10) 11% - 31% 14% - 32% Increase (6) • Correlation (11) 10% - 30% 40% - 40% Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates: Ages 0 - 40 0% - 0.09% 0% - 0.09% Decrease (12) Ages 41 - 60 0.04% - 0.65% 0.04% - 0.65% Decrease (12) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (12) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (13) Durations 11 - 20 2% - 100% 2% - 100% Decrease (13) Durations 21 - 116 2% - 100% 2% - 100% Decrease (13) • Utilization rates 0% - 25% 0% - 25% Increase (14) • Withdrawal rates 0.25% - 10% 0.25% - 10% (15) • Long-term equity volatilities 17.40% - 25% 17.40% - 25% Increase (16) • Nonperformance risk spread 0.64% - 1.43% 0.04% - 0.57% Decrease (17) __________________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (5) Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (6) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. (7) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points. (8) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. (9) At December 31, 2017 and 2016 , independent non-binding broker quotations were used in the determination of 1% and 3% of the total net derivative estimated fair value, respectively. (10) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (11) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. (12) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (13) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (14) The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (15) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (16) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (17) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. |
Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) Structured Securities State and Foreign Equity Short Term Investments Net Derivatives (2) Net Embedded Derivatives (3) Separate Account Assets (4) (In millions) Balance, January 1, 2016 $ 2,485 $ 2,032 $ 13 $ 26 $ 97 $ 47 $ (232 ) $ 32 $ 146 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) (11 ) 30 — — — — (703 ) (1,842 ) — Total realized/unrealized gains (losses) included in AOCI (25 ) 20 — — (11 ) — 4 — — Purchases (7) 603 601 — — — 3 10 — 2 Sales (7) (448 ) (604 ) — — (26 ) (1 ) — — (134 ) Issuances (7) — — — — — — — — — Settlements (7) — — — — — — (33 ) (573 ) — Transfers into Level 3 (8) 120 12 9 — 131 — — — — Transfers out of Level 3 (8) (333 ) (380 ) (5 ) (26 ) (54 ) (47 ) — — (4 ) Balance, December 31, 2016 2,391 1,711 17 — 137 2 (954 ) (2,383 ) 10 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) (3 ) 28 — — (3 ) — 92 1,078 — Total realized/unrealized gains (losses) included in AOCI 131 52 — — — — — — — Purchases (7) 441 107 — 5 3 14 4 — 2 Sales (7) (223 ) (535 ) — — (13 ) (1 ) — — (4 ) Issuances (7) — — — — — — — — — Settlements (7) — — — — — — 579 (355 ) (1 ) Transfers into Level 3 (8) 178 11 — — — — — — 2 Transfers out of Level 3 (8) (918 ) (144 ) (17 ) — — (1 ) — — (4 ) Balance, December 31, 2017 $ 1,997 $ 1,230 $ — $ 5 $ 124 $ 14 $ (279 ) $ (1,660 ) $ 5 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2015: (9) $ 11 $ 21 $ — $ — $ — $ — $ (64 ) $ (248 ) $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2016: (9) $ 2 $ 29 $ — $ — $ — $ — $ (687 ) $ (1,952 ) $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2017: (9) $ 1 $ 23 $ — $ — $ — $ — $ (52 ) $ 966 $ — Gains (Losses) Data for the year ended December 31, 2015: Total realized/unrealized gains (losses) included in net income (loss) (5) (6) $ 16 $ 22 $ — $ — $ 11 $ — $ (74 ) $ (133 ) $ (6 ) Total realized/unrealized gains (losses) included in AOCI $ (123 ) $ (14 ) $ — $ (3 ) $ (10 ) $ — $ 2 $ — $ — __________________ (1) Comprised of U.S. and foreign corporate securities. (2) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (3) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (4) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contract holders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). (5) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivatives gains (losses). (6) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (7) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (8) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (9) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). |
Fair Value Option | The following table presents information for certain assets and liabilities of CSEs, which are accounted for under the FVO. These assets and liabilities were initially measured at fair value. December 31, 2017 2016 (In millions) Assets (1) Unpaid principal balance $ 70 $ 88 Difference between estimated fair value and unpaid principal balance 45 48 Carrying value at estimated fair value $ 115 $ 136 Liabilities (1) Contractual principal balance $ 10 $ 22 Difference between estimated fair value and contractual principal balance 1 1 Carrying value at estimated fair value $ 11 $ 23 __________________ (1) These assets and liabilities are comprised of commercial mortgage loans and long-term debt. Changes in estimated fair value on these assets and liabilities and gains or losses on sales of these assets are recognized in net investment gains (losses). Interest income on commercial mortgage loans held by CSEs — FVO is recognized in net investment income. Interest expense from long-term debt of CSEs — FVO is recognized in other expenses. |
Fair Value of Financial Instruments Carried at Other Than Fair Value | The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: December 31, 2017 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 10,627 $ — $ — $ 10,871 $ 10,871 Policy loans $ 1,523 $ — $ 781 $ 959 $ 1,740 Real estate joint ventures $ 5 $ — $ — $ 22 $ 22 Other limited partnership interests $ 36 $ — $ — $ 28 $ 28 Premiums, reinsurance and other receivables $ 1,758 $ — $ 128 $ 1,985 $ 2,113 Liabilities Policyholder account balances $ 15,791 $ — $ — $ 15,927 $ 15,927 Long-term debt $ 3,601 $ — $ 3,039 $ 600 $ 3,639 Collateral financing arrangement $ — $ — $ — $ — $ — Other liabilities $ 314 $ — $ 100 $ 214 $ 314 Separate account liabilities $ 1,210 $ — $ 1,210 $ — $ 1,210 December 31, 2016 Fair Value Hierarchy Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Mortgage loans $ 9,242 $ — $ — $ 9,387 $ 9,387 Policy loans $ 1,517 $ — $ 780 $ 978 $ 1,758 Real estate joint ventures $ 12 $ — $ — $ 44 $ 44 Other limited partnership interests $ 44 $ — $ — $ 42 $ 42 Premiums, reinsurance and other receivables $ 2,789 $ — $ 834 $ 2,449 $ 3,283 Liabilities Policyholder account balances $ 16,226 $ — $ — $ 17,457 $ 17,457 Long-term debt $ 1,887 $ — $ 2,117 $ — $ 2,117 Collateral financing arrangement $ 2,797 $ — $ — $ 2,797 $ 2,797 Other liabilities $ 323 $ — $ 110 $ 213 $ 323 Separate account liabilities $ 1,114 $ — $ 1,114 $ — $ 1,114 |
Long-term Debt and Collateral37
Long-term Debt and Collateral Financing Arrangement (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt and Collateral Financing Arrangement | Long-term debt and collateral financing arrangement outstanding were as follows: December 31, Interest Rate Maturity 2017 2016 (In millions) Senior notes — unaffiliated (1) 3.700% 2027 $ 1,489 $ — Senior notes — unaffiliated (1) 4.700% 2047 1,477 — Surplus notes — affiliated with MetLife, Inc. 8.595% 2038 — 750 Surplus note — affiliated with MetLife, Inc. 5.130% 2032 — 750 Surplus note — affiliated with MetLife, Inc. 6.000% 2033 — 350 Long-term debt — unaffiliated (2) 7.028% 2030 35 37 Term loan — unaffiliated (3) LIBOR plus 1.5% 2019 600 — Total long-term debt $ 3,601 $ 1,887 Collateral financing arrangement 3-month LIBOR plus 0.70% 2037 $ — $ 2,797 __________________ (1) Includes unamortized debt issuance costs and debt discount totaling $34 million for the senior notes due 2027 and 2047 on a combined basis at December 31, 2017. (2) Represents non-recourse debt for which creditors have no access, subject to customary exceptions, to the general assets of the Company other than recourse to certain investment companies. (3) Excludes $11 million and $23 million of long-term debt related to CSEs at December 31, 2017 and 2016 , respectively. See Note 6 for more information regarding CSEs. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated and Combined Statements of Operations and Comprehensive Income (Loss) Locations Years Ended December 31, 2017 2016 2015 (In millions) ` Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ (15 ) $ (51 ) $ (79 ) Net investment gains (losses) Net unrealized investment gains (losses) 3 3 13 Net investment income Net unrealized investment gains (losses) (48 ) 4 (11 ) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax (60 ) (44 ) (77 ) Income tax (expense) benefit (286 ) 15 27 Net unrealized investment gains (losses), net of income tax $ (346 ) $ (29 ) $ (50 ) Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps $ — $ 33 $ 1 Net derivative gains (losses) Interest rate swaps 3 3 1 Net investment income Interest rate forwards 2 2 2 Net derivative gains (losses) Interest rate forwards 3 2 2 Net investment income Foreign currency swaps 10 5 — Net derivative gains (losses) Credit forwards — — 1 Net investment income Gains (losses) on cash flow hedges, before income tax 18 45 7 Income tax (expense) benefit (6 ) (16 ) (2 ) Gains (losses) on cash flow hedges, net of income tax $ 12 $ 29 $ 5 Defined benefit plans adjustment: Amortization of net actuarial gains (losses) $ — $ (1 ) $ (2 ) Amortization of prior service (costs) credit — — (2 ) Amortization of defined benefit plan items, before income tax — (1 ) (4 ) Income tax (expense) benefit 5 — 1 Amortization of defined benefit plan items, net of income tax 5 (1 ) (3 ) Total reclassifications, net of income tax $ (329 ) $ (1 ) $ (48 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Information regarding changes in the balances of each component of AOCI was as follows: Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance at December 31, 2014 $ 2,555 $ 190 $ (15 ) $ (15 ) $ 2,715 OCI before reclassifications (1,975 ) 102 (25 ) (10 ) (1,908 ) Deferred income tax benefit (expense) 692 (36 ) 8 4 668 AOCI before reclassifications, net of income tax 1,272 256 (32 ) (21 ) 1,475 Amounts reclassified from AOCI 77 (7 ) — 4 74 Deferred income tax benefit (expense) (27 ) 2 — (1 ) (26 ) Amounts reclassified from AOCI, net of income tax 50 (5 ) — 3 48 Balance at December 31, 2015 1,322 251 (32 ) (18 ) 1,523 OCI before reclassifications (465 ) 71 1 2 (391 ) Deferred income tax benefit (expense) 158 (25 ) — (1 ) 132 AOCI before reclassifications, net of income tax 1,015 297 (31 ) (17 ) 1,264 Amounts reclassified from AOCI 44 (45 ) — 1 — Deferred income tax benefit (expense) (15 ) 16 — — 1 Amounts reclassified from AOCI, net of income tax 29 (29 ) — 1 1 Balance at December 31, 2016 1,044 268 (31 ) (16 ) 1,265 OCI before reclassifications 276 (157 ) 10 (19 ) 110 Deferred income tax benefit (expense) (94 ) 55 (3 ) 14 (28 ) AOCI before reclassifications, net of income tax 1,226 166 (24 ) (21 ) 1,347 Amounts reclassified from AOCI 60 (18 ) — — 42 Deferred income tax benefit (expense) (2) 286 6 — (5 ) 287 Amounts reclassified from AOCI, net of income tax 346 (12 ) — (5 ) 329 Balance at December 31, 2017 $ 1,572 $ 154 $ (24 ) $ (26 ) $ 1,676 __________________ (1) See Note 6 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI. (2) Includes the $306 million and ($5) million impacts of the Tax Act related to unrealized investments gains (losses), net of related offsets and defined benefit plans adjustment, respectively. See Note 1 for more information. |
Schedules of statutory net income, capital and surplus and reserve strengthening by subsidiary including dividend restrictions | Statutory net income (loss) was as follows: Years Ended December 31, Company State of Domicile 2017 2016 2015 (In millions) Brighthouse Life Insurance Company Delaware $ (425 ) $ 1,186 $ (1,022 ) New England Life Insurance Company Massachusetts $ 68 $ 109 $ 157 Statutory capital and surplus was as follows at: December 31, Company 2017 2016 (In millions) Brighthouse Life Insurance Company $ 5,594 $ 4,374 New England Life Insurance Company $ 483 $ 455 The table below sets forth the dividends permitted to be paid by the Company’s insurance companies without insurance regulatory approval and dividends paid: 2018 2017 2016 Company Permitted Without Approval (1) Paid (2) Paid (2) (In millions) Brighthouse Life Insurance Company $ 84 $ — $ 261 New England Life Insurance Company $ 65 $ 106 $ 295 (3) ______________ (1) Reflects dividend amounts that may be paid during 2018 without prior regulatory approval. However, because dividend tests may be based on dividends previously paid over rolling 12-month periods, if paid before a specified date during 2018, some or all of such dividends may require regulatory approval. (2) Reflects all amounts paid, including those requiring regulatory approval. (3) An extraordinary cash dividend paid to its former parent, MetLife, Inc. |
Other Expenses (Tables)
Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Expenses | Information on other expenses was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Compensation $ 287 $ 400 $ 455 Commissions 806 637 715 Volume-related costs 486 562 552 Related party expenses on ceded and assumed reinsurance 36 22 17 Capitalization of DAC (260 ) (334 ) (399 ) Interest expense on debt 153 175 170 Goodwill impairment (1) — 161 — Premium taxes, licenses and fees 64 63 76 Professional services 292 89 65 Rent and related expenses 13 47 56 Other 606 462 413 Total other expenses $ 2,483 $ 2,284 $ 2,120 __________________ (1) Based on a quantitative analysis performed for the Run-off reporting unit, it was determined that the goodwill associated with this reporting unit was not recoverable and resulted in the impairment of the entire goodwill balance. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Benefit Plan Obligations, Assets, Funded Status, Accumulated Other Comprehensive Income (Loss) and Accumulated Benefit Obligation | December 31, 2017 2016 Pension Other Postretirement Benefits Pension Benefits (1) Other Postretirement Benefits (In millions) Change in benefit obligations: Benefit obligations at January 1, $ 219 $ 37 $ 213 $ 32 Interest costs 9 2 9 2 Plan participants’ contributions — 3 — 2 Net actuarial (gains) losses 11 6 5 (2 ) Change in benefits and other 5 — — 9 Benefits paid (11 ) (8 ) (8 ) (6 ) Benefit obligations at December 31, 233 40 219 37 Change in plan assets: Estimated fair value of plan assets at January 1, 155 — 148 — Actual return on plan assets 17 — 11 — Plan participants’ contributions — 3 — 2 Employer contributions 4 5 4 4 Benefits paid (11 ) (8 ) (8 ) (6 ) Estimated fair value of plan assets at December 31, 165 — 155 — Over (under) funded status at December 31, $ (68 ) $ (40 ) $ (64 ) $ (37 ) Amounts recognized in the consolidated balance sheets: Other assets $ 3 $ — $ 2 $ — Other liabilities (71 ) (40 ) (66 ) (37 ) Net amount recognized $ (68 ) $ (40 ) $ (64 ) $ (37 ) AOCI: Net actuarial (gains) losses $ 31 $ 3 $ 28 $ (3 ) Prior service costs (credit) — — — — AOCI, before income tax $ 31 $ 3 $ 28 $ (3 ) Accumulated benefit obligation $ 233 N/A $ 219 N/A __________________ (1) Includes nonqualified unfunded plan, for which the aggregate projected benefit obligation (PBO) was $71 million and $66 million at December 31, 2017 and 2016 , respectively. |
Benefit Plan Obligations, Assets, Funded Status, Accumulated Other Comprehensive Income (Loss) and Accumulated Benefit Obligation | December 31, 2017 2016 Pension Other Postretirement Benefits Pension Benefits (1) Other Postretirement Benefits (In millions) Change in benefit obligations: Benefit obligations at January 1, $ 219 $ 37 $ 213 $ 32 Interest costs 9 2 9 2 Plan participants’ contributions — 3 — 2 Net actuarial (gains) losses 11 6 5 (2 ) Change in benefits and other 5 — — 9 Benefits paid (11 ) (8 ) (8 ) (6 ) Benefit obligations at December 31, 233 40 219 37 Change in plan assets: Estimated fair value of plan assets at January 1, 155 — 148 — Actual return on plan assets 17 — 11 — Plan participants’ contributions — 3 — 2 Employer contributions 4 5 4 4 Benefits paid (11 ) (8 ) (8 ) (6 ) Estimated fair value of plan assets at December 31, 165 — 155 — Over (under) funded status at December 31, $ (68 ) $ (40 ) $ (64 ) $ (37 ) Amounts recognized in the consolidated balance sheets: Other assets $ 3 $ — $ 2 $ — Other liabilities (71 ) (40 ) (66 ) (37 ) Net amount recognized $ (68 ) $ (40 ) $ (64 ) $ (37 ) AOCI: Net actuarial (gains) losses $ 31 $ 3 $ 28 $ (3 ) Prior service costs (credit) — — — — AOCI, before income tax $ 31 $ 3 $ 28 $ (3 ) Accumulated benefit obligation $ 233 N/A $ 219 N/A __________________ (1) Includes nonqualified unfunded plan, for which the aggregate projected benefit obligation (PBO) was $71 million and $66 million at December 31, 2017 and 2016 , respectively. |
Accumulated benefit obligations in excess of fair value of plan assets | Information for pension plans with accumulated benefit obligations in excess of plan assets was as follows at: December 31, 2017 2016 (In millions) Projected benefit obligations $ 71 $ 66 Accumulated benefit obligations $ 71 $ 66 Estimated fair value of plan assets $ — $ — |
Net periodic benefit costs and other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | December 31, 2017 2016 (In millions) Projected benefit obligations $ 71 $ 66 Accumulated benefit obligations $ 71 $ 66 Estimated fair value of plan assets $ — $ — The PBO exceeded assets for only the nonqualified unfunded pension plan at both December 31, 2017 and 2016 . |
Assumptions used in determining benefit obligations and net periodic benefit costs | Assumptions used in determining net periodic benefit costs were as follows: Years Ended December 31, Pension Benefits 2017 2016 2015 Weighted average discount rate 4.30% 4.42% 4.10% Weighted average expected rate of return on plan assets (1) 5.75% 5.75% 5.75% Rate of compensation increase N/A N/A N/A |
Plan Assets | The pension plan assets measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are summarized as follows: December 31, 2017 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Interest in insurance company separate accounts $ 45 $ 102 $ — $ 147 Insurance company general accounts — — 18 18 Total assets $ 45 $ 102 $ 18 $ 165 December 31, 2016 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Interest in insurance company separate accounts $ 72 $ 83 $ — $ 155 Insurance company general accounts — — — — Total assets $ 72 $ 83 $ — $ 155 The table below summarizes the actual weighted average allocation of the estimated fair value of total plan assets by asset class at December 31 for the years indicated and the approved target allocation by major asset class at December 31, 2017 for the Invested Plan: December 31, 2017 2016 Target (1) Actual Actual Allocation Asset Class Fixed maturity securities 80 % 100 % 79 % Equity securities 20 % — % 21 % Total assets 100 % 100 % 100 % |
Defined benefit plan estimated future benefit payments | Gross benefit payments for the next 10 years before MetLife reimbursement on an after tax basis are expected to be as follows: Pension Benefits Other Postretirement Benefits (In millions) 2018 $ 11 $ 4 2019 $ 11 $ 4 2020 $ 12 $ 4 2021 $ 13 $ 4 2022 $ 13 $ 3 2023-2027 $ 68 $ 14 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Provision for income tax from continuing operations | The provision for income tax was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Current: Federal $ 406 $ (305 ) $ 33 State and local 6 — — Foreign 18 — — Subtotal 430 (305 ) 33 Deferred: Federal (667 ) (1,461 ) 310 State and local — — — Foreign — — — Subtotal (667 ) (1,461 ) 310 Provision for income tax expense (benefit) $ (237 ) $ (1,766 ) $ 343 |
Income tax for continuing operations effective rate reconciliation | The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Tax provision at U.S. statutory rate $ (215 ) $ (1,647 ) $ 511 Tax effect of: Excess loss account - Separation from MetLife (1) 1,088 — — Rate revaluation due to tax reform (2) (803 ) — — Sale of subsidiaries (138 ) — — Dividend received deduction (130 ) (123 ) (144 ) Other tax credits (30 ) (18 ) (13 ) Goodwill impairment — 4 — Other, net (9 ) 18 (11 ) Provision for income tax expense (benefit) $ (237 ) $ (1,766 ) $ 343 __________________ (1) For the year ended December 31, 2017, the Company recognized a $1.1 billion non-cash charge to provision for income tax expense and corresponding capital contribution from MetLife. This tax obligation was in connection with the Separation and MetLife, Inc. is responsible for this obligation through a Tax Separation Agreement. (2) For the year ended December 31, 2017, the Company recognized a $725 million benefit in net income from remeasurement of net deferred tax liabilities in connection with the Tax Act discussed in Note 1. Additionally, as a result of the reduction in the statutory tax rate under the Tax Act, the liability to MetLife under the Tax Receivables Agreement (as defined below) was reduced by $222 million , which is included in other revenues and is non-taxable. As the Company completes the analysis of data relevant to the Tax Act, as well as interprets any additional guidance issued by the Internal Revenue Service (“IRS”), U.S. Department of the Treasury, or other relevant organizations, it may make adjustments to these amounts. |
Components of deferred tax assets and liabilities | Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at: December 31, 2017 2016 (In millions) Deferred income tax assets: Tax credit carryforwards $ 202 $ 199 Net operating loss carryforwards 422 — Employee benefit 3 54 Intangibles 227 2 Investments, including derivatives 302 347 Other 95 72 Total deferred income tax assets 1,251 674 Less: valuation allowance 11 — Total net deferred income tax assets 1,240 674 Deferred income tax liabilities: Policyholder liabilities and receivables 819 525 Net unrealized investment gains 459 712 DAC 889 1,493 Total deferred income tax liabilities 2,167 2,730 Net deferred income tax asset (liability) $ (927 ) $ (2,056 ) |
Summary of Tax Credit Carryforwards | The following table sets forth the general business credits, foreign tax credits, and other credit carryforwards for tax purposes at December 31, 2017. Tax Credit Carryforwards General Business Credits Foreign Tax Credits Other (In millions) Expiration 2018-2022 $ — $ — $ — 2023-2027 — 14 — 2028-2032 — — — 2033-2037 10 — — Indefinite — — 178 $ 10 $ 14 $ 178 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Balance at January 1, $ 58 $ 64 $ 60 Additions for tax positions of prior years — 2 5 Reductions for tax positions of prior years (4 ) (9 ) — Additions for tax positions of current year 3 5 3 Reductions for tax positions of current year (2 ) — — Settlements with tax authorities (32 ) (4 ) (4 ) Balance at December 31, $ 23 $ 58 $ 64 Unrecognized tax benefits that, if recognized would impact the effective rate $ 23 $ 58 $ 53 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | The following table sets forth the calculation of basic earnings per share (“EPS”) based on net income (loss) divided by the basic weighted average number of common shares. Years Ended December 31, 2017 Pro forma 2016 (1) Pro forma 2015 (1) (In millions, except share and per share data) Net income (loss) $ (378 ) $ (2,939 ) $ 1,119 Weighted average common shares outstanding: Basic 119,773,106 119,773,106 119,773,106 Earnings per common share: Basic $ (3.16 ) $ (24.54 ) $ 9.34 __________________ (1) On August 4, 2017, following the completion of the Separation, 119,773,106 shares of Brighthouse Financial, Inc. common stock were outstanding. This number of shares remained outstanding at December 31, 2017 and is utilized to calculate EPS for the years ended December 31, 2016 and 2015. |
Contingencies, Commitments an43
Contingencies, Commitments and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance-related Assessments | |
Loss Contingencies [Line Items] | |
Schedule of Loss Contingencies by Contingency | Assets and liabilities held for insolvency assessments were as follows: December 31, 2017 2016 (In millions) Other Assets: Premium tax offset for future discounted and undiscounted assessments $ 14 $ 13 Premium tax offsets currently available for paid assessments 5 9 Total $ 19 $ 22 Other Liabilities: Insolvency assessments $ 18 $ 17 |
Quarterly Results of Operatio44
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | The unaudited quarterly results of operations for 2017 and 2016 are summarized in the table below: Three Months Ended March 31, June 30, September 30, December 31, (In millions, except per share data) 2017 Total revenues $ 965 $ 2,025 $ 1,972 $ 1,880 Total expenses $ 1,555 $ 1,704 $ 2,096 $ 2,102 Net income (loss) $ (349 ) $ 246 $ (943 ) $ 668 Basic earnings per common share (1) $ (2.91 ) $ 2.05 $ (7.87 ) $ 5.57 2016 Total revenues $ 2,389 $ (584 ) $ 1,766 $ (553 ) Total expenses $ 1,825 $ 1,656 $ 2,018 $ 2,224 Net income (loss) $ 407 $ (1,423 ) $ (158 ) $ (1,765 ) Basic earnings per common share (1) $ 3.40 $ (11.88 ) $ (1.32 ) $ (14.74 ) __________________ (1) See Note 14 for additional information on the calculation of EPS. |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions, By Related Party [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | The following table summarizes income and expense from transactions with MetLife (excluding broker-dealer transactions) for the years indicated: Years Ended December 31, 2017 2016 2015 (In millions) Income $ (606 ) $ (280 ) $ (178 ) Expense $ 378 $ 332 $ 802 The following table summarizes income and expense from transactions with MetLife broker-dealers for the years indicated: Years Ended December 31, 2017 2016 2015 (In millions) Fee income $ 43 $ 216 $ 235 Commission expense $ 129 $ 649 $ 652 The following table summarizes assets and liabilities from transactions with MetLife (excluding broker-dealer transactions) at: December 31, 2017 2016 (In millions) Assets $ 2,907 $ 4,805 Liabilities $ 2,178 $ 7,763 The following table summarizes assets and liabilities from transactions with MetLife broker-dealers at: December 31, 2017 2016 (In millions) Fee income receivables $ — $ 21 Secured demand notes $ — $ 20 |
Condensed Financial Informati46
Condensed Financial Information of Parent Company (Tables) - Parent Company | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |
Condensed Balance Sheets (Parent Company) | 2017 2016 Condensed Balance Sheets Assets Investments: Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $238,948 and $0, respectively) $ 236,946 $ — Investment in subsidiaries 17,810,226 — Total investments 18,047,172 — Cash and cash equivalents 325,528 1 Accrued investment income 945 — Receivable from former affiliate 191,570 — Current income tax recoverable 20,714 306 Other assets 8,205 15,870 Total assets $ 18,594,134 $ 16,177 Liabilities and Stockholders’ Equity Liabilities Long-term and short-term debt $ 3,702,071 $ — Payable to former affiliate 333,148 16,745 Deferred income tax liability 33,166 — Other liabilities 10,083 — Total liabilities 4,078,468 16,745 Stockholders’ Equity Common stock, par value $0.01 per share; 1,000,000,000 and 100,000 shares authorized, respectively; 119,773,106 and 100,000 shares issued and outstanding, respectively 1,198 1 Additional paid-in capital 12,432,449 — Retained earnings (deficit) 405,853 (569 ) Accumulated other comprehensive income (loss) 1,676,166 — Total stockholders’ equity 14,515,666 (568 ) Total liabilities and stockholders’ equity $ 18,594,134 $ 16,177 See accompanying notes to the condensed financial information. |
Condensed Statements of Operations (Parent Company) | 2017 2016 Condensed Statements of Operations Revenues Equity in earnings (losses) of subsidiaries $ (565,979 ) $ — Net investment income 5,573 — Other revenues 221,834 — Net investment gains (losses) (237 ) — Net derivative gains (losses) 1,729 — Total revenues (337,080 ) — Expenses Credit facility fees 16,014 875 Other expenses 75,921 — Total expenses 91,935 875 Income (loss) before provision for income tax (429,015 ) (875 ) Provision for income tax expense (benefit) (50,897 ) (306 ) Net income (loss) $ (378,118 ) $ (569 ) Comprehensive income (loss) $ 33,000 $ (569 ) |
Condensed Statements of Cash Flows (Parent Company) | 2017 2016 Condensed Statements of Cash Flows Cash flows from operating activities Net income (loss) $ (378,118 ) $ (569 ) Equity in (earnings) losses of subsidiaries 565,979 — Distribution from subsidiary 50,000 — Other, net (252,310 ) 569 Net cash provided by (used in) operating activities (14,449 ) — Cash flows from investing activities Sales of fixed maturity securities 509,814 — Purchases of fixed maturity securities (748,972 ) — Capital contributions to subsidiaries (1,300,000 ) — Net cash provided by (used in) investing activities (1,539,158 ) — Cash flows from financing activities Long-term and short-term debt issued 3,724,375 — Debt issuance costs (39,187 ) — Issuance of common stock — 1 Distribution to MetLife, Inc. (1,798,000 ) — Credit facility fees (8,054 ) — Net cash provided by (used in) financing activities 1,879,134 1 Change in cash and cash equivalents 325,527 1 Cash and cash equivalents, beginning of period 1 — Cash and cash equivalents, end of period $ 325,528 $ 1 Supplemental disclosures of cash flow information Net cash paid (received) for: Interest $ 67,135 $ — Income tax: Cash received from MetLife, Inc. for income tax $ (40 ) $ — Income tax paid by Brighthouse Financial, Inc. 888 — Net cash paid (received) for income tax $ 848 $ — See accompanying notes to the condensed financial information. |
Schedule of Long-term and Short-term Debt (Parent Company) | Long-term and short-term debt outstanding was as follows: December 31, Interest Rate Maturity 2017 2016 (In millions) Senior notes — unaffiliated (1) 3.70% 2027 $ 1,489 $ — Senior notes — unaffiliated (1) 4.70% 2047 1,477 — Term loan — unaffiliated LIBOR plus 1.5% 2019 600 — Total long-term debt 3,566 — Short-term intercompany loans 136 — Total long-term and short-term debt $ 3,702 $ — _______________ (1) Includes unamortized debt issuance costs and debt discount totaling $34 million for the senior notes due 2027 and 2047 on a combined basis at December 31, 2017. |
Business, Basis of Presentati47
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($)Segment | Aug. 04, 2017 | Jun. 30, 2017 | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number of segments | Segment | 3 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Derivative assets | $ 2,254 | $ 3,622 | |||
Derivative liabilities | 3,129 | 3,883 | |||
Accrued investment income relating to variable interest entities | 601 | 693 | |||
Premiums and Other Receivables, Net | 13,525 | 14,647 | |||
Payables For Collateral Under Securities Loaned And Other Transactions | 4,169 | $ 7,390 | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0 | ||||
Unrealized gains related to equity securities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 19 | ||||
CME update impact [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Derivative assets | $ 206 | ||||
Derivative liabilities | 927 | ||||
Accrued investment income relating to variable interest entities | 30 | ||||
Premiums and Other Receivables, Net | 765 | ||||
Payables For Collateral Under Securities Loaned And Other Transactions | $ 74 | ||||
Parent shareholders' percentage [Member] | Spinoff | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Common Stock Distribution by Parent | 80.80% | 80.80% | |||
Parent percentage | Spinoff | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Common Stock Retained by Parent | 19.20% | ||||
Minimum | Spinoff | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Common Stock Distribution by Parent | 80.10% | ||||
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 301 | ||||
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | Joint ventures, previously accounted for under the cost method, from cost to fair value | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 9 | ||||
Value Of Distribution Agreements And Value Of Customer Relationships Acquired Intangible Asset [Member] | Minimum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||
Value Of Distribution Agreements And Value Of Customer Relationships Acquired Intangible Asset [Member] | Maximum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 40 years |
Segment Information (Operating
Segment Information (Operating Results) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | $ (615) | $ (4,705) | $ 1,462 |
Provision for income tax expense (benefit) | (237) | (1,766) | 343 |
Net investment gains (losses) | (28) | (78) | 7 |
Net derivative gains (losses) | (1,620) | (5,851) | (326) |
Other adjustments to net income | 651 | 736 | 422 |
Net income (loss) | (378) | (2,939) | 1,119 |
Annuities | |||
Segment Reporting Information [Line Items] | |||
Interest revenue | 1,277 | 1,451 | 1,281 |
Interest expense | 0 | 0 | 0 |
Life | |||
Segment Reporting Information [Line Items] | |||
Interest revenue | 342 | 371 | 371 |
Interest expense | 0 | 0 | 0 |
Run-off | |||
Segment Reporting Information [Line Items] | |||
Interest revenue | 1,399 | 1,441 | 1,551 |
Interest expense | 23 | 61 | 60 |
Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Interest revenue | 192 | 239 | 125 |
Interest expense | 132 | 111 | 101 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | 1,597 | 867 | 2,113 |
Provision for income tax expense (benefit) | 677 | 181 | 572 |
Adjusted earnings | 920 | 686 | 1,541 |
Operating Segments | Annuities | |||
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | 1,386 | 1,636 | 1,452 |
Provision for income tax expense (benefit) | 369 | 484 | 363 |
Adjusted earnings | 1,017 | 1,152 | 1,089 |
Operating Segments | Life | |||
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | 7 | 26 | 21 |
Provision for income tax expense (benefit) | (9) | 0 | 1 |
Adjusted earnings | 16 | 26 | 20 |
Operating Segments | Run-off | |||
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | 147 | (834) | 717 |
Provision for income tax expense (benefit) | 43 | (295) | 249 |
Adjusted earnings | 104 | (539) | 468 |
Operating Segments | Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | 57 | 39 | (77) |
Provision for income tax expense (benefit) | 274 | (8) | (41) |
Adjusted earnings | (217) | 47 | (36) |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Provision for income tax expense (benefit) | 914 | 1,947 | 229 |
Net investment gains (losses) | (28) | (78) | 7 |
Net derivative gains (losses) | (1,620) | (5,851) | (326) |
Other adjustments to net income | $ (564) | $ 357 | $ (332) |
Segment Information Segment Inf
Segment Information Segment Information (Reconciliation of Operating Revenues to Total Revenues) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,880 | $ 1,972 | $ 2,025 | $ 965 | $ (553) | $ 1,766 | $ (584) | $ 2,389 | $ 6,842 | $ 3,018 | $ 8,891 |
Annuities | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 4,370 | 4,958 | 5,229 | ||||||||
Life | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,315 | 1,249 | 1,137 | ||||||||
Run-off | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,147 | 2,343 | 2,367 | ||||||||
Corporate & Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 510 | 401 | 415 | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ (1,500) | $ (5,933) | $ (257) |
Segment Information (Assets and
Segment Information (Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 224,192 | $ 221,930 |
Separate account assets | 118,257 | 113,043 |
Separate account liabilities | 118,257 | 113,043 |
Annuities | ||
Segment Reporting Information [Line Items] | ||
Total assets | 154,667 | 152,146 |
Separate account assets | 109,888 | 104,855 |
Separate account liabilities | 109,888 | 104,855 |
Life | ||
Segment Reporting Information [Line Items] | ||
Total assets | 18,049 | 17,150 |
Separate account assets | 5,250 | 4,704 |
Separate account liabilities | 5,250 | 4,704 |
Run-off | ||
Segment Reporting Information [Line Items] | ||
Total assets | 36,824 | 40,007 |
Separate account assets | 3,119 | 3,484 |
Separate account liabilities | 3,119 | 3,484 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | 14,652 | 12,627 |
Separate account assets | 0 | 0 |
Separate account liabilities | $ 0 | $ 0 |
Segment Information (Premiums,
Segment Information (Premiums, Universal Life and Investment-Type Product Policy Fees and Other Revenues by Major Product Groups) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | $ 5,412 | $ 5,740 | $ 6,111 |
Annuity products | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | 3,363 | 3,938 | 4,249 |
Life insurance products | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | 1,822 | 1,745 | 1,726 |
Other products | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | $ 227 | $ 57 | $ 136 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of segments | 3 |
Insurance (Insurance Liabilitie
Insurance (Insurance Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | $ 77,384 | $ 73,943 |
Annuities | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | 34,281 | 33,155 |
Life | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | 8,542 | 8,539 |
Run-off | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | 27,027 | 24,819 |
Corporate & Other | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | $ 7,534 | $ 7,430 |
Insurance (Insurance Liabilit54
Insurance (Insurance Liabilities Assumptions and Ratios - Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Future Policy Benefits and Policyholder Account Balances [Abstract] | |||
Participating business as a percentage of gross life insurance policies in-force | 3.00% | 3.00% | |
Participating business as a percentage of the gross life insurance premiums | 38.00% | 42.00% | 39.00% |
Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liability For Policyholder Contract Deposits Credited Interest Rate All Applicable Products | 0.00% | ||
Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liability For Policyholder Contract Deposits Credited Interest Rate All Applicable Products | 7.00% |
Insurance (Liabilities for Guar
Insurance (Liabilities for Guarantees) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement In Guaranteed Benefit Liability Gross Rollforward | ||||
Balance at January 1, | $ 6,999 | $ 5,636 | $ 4,653 | |
Incurred guaranteed benefits (1) | 1,439 | 1,423 | 1,020 | |
Paid guaranteed benefits | (58) | (60) | (37) | |
Balance at December 31, | 8,380 | 6,999 | 5,636 | |
Variable Annuity Guarantees | Guaranteed Minimum Death Benefit | ||||
Movement In Guaranteed Benefit Liability Gross Rollforward | ||||
Balance at January 1, | 1,124 | 845 | 630 | |
Incurred guaranteed benefits (1) | 373 | 339 | 252 | |
Paid guaranteed benefits | (58) | (60) | (37) | |
Balance at December 31, | 1,439 | 1,124 | 845 | |
Variable Annuity Guarantees | Guaranteed Minimum Income Benefit | ||||
Movement In Guaranteed Benefit Liability Gross Rollforward | ||||
Balance at January 1, | 2,335 | 2,004 | 1,649 | |
Incurred guaranteed benefits (1) | 374 | 331 | 355 | |
Paid guaranteed benefits | 0 | 0 | 0 | |
Balance at December 31, | 2,709 | 2,335 | 2,004 | |
Universal and Variable Life Contracts | Secondary Guarantees | ||||
Movement In Guaranteed Benefit Liability Gross Rollforward | ||||
Balance at January 1, | 3,540 | 2,787 | 2,374 | |
Incurred guaranteed benefits (1) | 692 | 753 | 413 | |
Paid guaranteed benefits | 0 | 0 | 0 | |
Balance at December 31, | 4,232 | 3,540 | 2,787 | |
Ceded Liabilities For Guarantees | ||||
Movement In Guaranteed Benefit Liability Gross Rollforward | ||||
Paid guaranteed benefits | (56) | (55) | (33) | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 963 | 1,098 | 997 | $ 842 |
liabilities for guarantees on long duration contracts reinsurance recoverable incurred benefits net | (79) | 156 | 188 | |
Ceded Liabilities For Guarantees | Secondary Guarantees | ||||
Movement In Guaranteed Benefit Liability Gross Rollforward | ||||
Paid guaranteed benefits | 0 | 0 | 0 | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 945 | 1,105 | 1,007 | 846 |
liabilities for guarantees on long duration contracts reinsurance recoverable incurred benefits net | (160) | 98 | 161 | |
Ceded Liabilities For Guarantees | Guaranteed Minimum Death Benefit | ||||
Movement In Guaranteed Benefit Liability Gross Rollforward | ||||
Paid guaranteed benefits | (56) | (55) | (34) | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 18 | (27) | (20) | (10) |
liabilities for guarantees on long duration contracts reinsurance recoverable incurred benefits net | 101 | 48 | 24 | |
Ceded Liabilities For Guarantees | Guaranteed Minimum Income Benefit | ||||
Movement In Guaranteed Benefit Liability Gross Rollforward | ||||
Paid guaranteed benefits | 0 | 0 | 1 | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 0 | 20 | 10 | 6 |
liabilities for guarantees on long duration contracts reinsurance recoverable incurred benefits net | (20) | 10 | 3 | |
Net Liabilities For Guarantees | ||||
Movement In Guaranteed Benefit Liability Gross Rollforward | ||||
Incurred guaranteed benefits (1) | 1,518 | 1,267 | 832 | |
Paid guaranteed benefits | (2) | (5) | (4) | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 7,417 | 5,901 | 4,639 | 3,811 |
Net Liabilities For Guarantees | Secondary Guarantees | ||||
Movement In Guaranteed Benefit Liability Gross Rollforward | ||||
Incurred guaranteed benefits (1) | 852 | 655 | 252 | |
Paid guaranteed benefits | 0 | 0 | 0 | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 3,287 | 2,435 | 1,780 | 1,528 |
Net Liabilities For Guarantees | Guaranteed Minimum Death Benefit | ||||
Movement In Guaranteed Benefit Liability Gross Rollforward | ||||
Incurred guaranteed benefits (1) | 272 | 291 | 228 | |
Paid guaranteed benefits | (2) | (5) | (3) | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 1,421 | 1,151 | 865 | 640 |
Net Liabilities For Guarantees | Guaranteed Minimum Income Benefit | ||||
Movement In Guaranteed Benefit Liability Gross Rollforward | ||||
Incurred guaranteed benefits (1) | 394 | 321 | 352 | |
Paid guaranteed benefits | 0 | 0 | (1) | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | $ 2,709 | $ 2,315 | $ 1,994 | $ 1,643 |
Insurance insurance - Future Po
Insurance insurance - Future Policy Benefits (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Participating Life Insurance Policy [Member] | Minimum | |
Liability for Future Policy Benefits, Interest Rate Assumption | 0.04 |
Participating Life Insurance Policy [Member] | Maximum | |
Liability for Future Policy Benefits, Interest Rate Assumption | 0.05 |
Nonparticipating Life Insurance Policy [Member] | Minimum | |
Liability for Future Policy Benefits, Interest Rate Assumption | 0.03 |
Nonparticipating Life Insurance Policy [Member] | Maximum | |
Liability for Future Policy Benefits, Interest Rate Assumption | 0.09 |
Fixed Annuity [Member] | Minimum | |
Liability for Future Policy Benefits, Interest Rate Assumption | 0.02 |
Fixed Annuity [Member] | Maximum | |
Liability for Future Policy Benefits, Interest Rate Assumption | 0.08 |
Other Insurance Product Line [Member] | Minimum | |
Liability for Future Policy Benefits, Interest Rate Assumption | 0.04 |
Other Insurance Product Line [Member] | Maximum | |
Liability for Future Policy Benefits, Interest Rate Assumption | 0.07 |
Disability Insurance Policy [Member] | Minimum | |
Liability for Future Policy Benefits, Interest Rate Assumption | 0.03 |
Disability Insurance Policy [Member] | Maximum | |
Liability for Future Policy Benefits, Interest Rate Assumption | 0.07 |
Insurance (Guarantees Related t
Insurance (Guarantees Related to Annuity Contracts) (Details) - Variable Annuity Guarantees - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Guaranteed Death Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 115,147 | $ 111,719 |
Separate account value | 109,792 | 106,759 |
Net amount at risk | $ 5,261 | $ 6,837 |
Average attained age of contractholders | 68 years | 67 years |
Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 67,110 | $ 64,503 |
Separate account value | 65,782 | 63,025 |
Net amount at risk | $ 2,642 | $ 3,313 |
Average attained age of contractholders | 68 years | 67 years |
Insurance (Guarantees Related58
Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) - Secondary Guarantees - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Universal and Variable Life Contracts | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 6,244 | $ 6,216 |
Net amount at risk (6) | $ 75,304 | $ 76,216 |
Average attained age of policyholders | 64 years | 63 years |
Variable Life [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 3,379 | $ 3,110 |
Net amount at risk (6) | $ 24,546 | $ 26,419 |
Average attained age of policyholders | 49 years | 48 years |
Insurance (Fund Groupings) (Det
Insurance (Fund Groupings) (Details) - Variable Annuity and Variable Life - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | $ 111,869 | $ 106,568 |
Balanced | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | 56,979 | 54,371 |
Equity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | 47,571 | 44,750 |
Bond | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | 6,662 | 6,686 |
Money Market | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | $ 657 | $ 761 |
Insurance (Obligations Under Fu
Insurance (Obligations Under Funding Agreements - FHLB Common Stock) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
FHLB Common Stock [Abstract] | ||
Federal Home Loan Bank Stock | $ 71 | $ 75 |
Insurance (Obligations Under 61
Insurance (Obligations Under Funding Agreements - Liability and Collateral) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
FHLB Liabilities and Collateral [Abstract] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 595 | $ 645 |
Insurance (Obligations Under 62
Insurance (Obligations Under Funding Agreements - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Funding agreements issued to certain SPEs | $ 0 | $ 1,400 | $ 13,000 |
Funding Agreements Repaid To Certain Special Purpose Entities | 6 | 3,400 | $ 14,400 |
Outstanding Funding Agreements To Certain Special Purpose Entities | $ 141 | $ 127 |
Deferred Policy Acquisition C63
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (DAC and VOBA) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |||
Beginning Balance of DAC | $ 5,652 | $ 5,679 | $ 5,819 |
Capitalizations of DAC | 260 | 334 | 399 |
Net investment gains (losses) of DAC and net derivative gains (losses) of DAC | 258 | 1,400 | 109 |
Other expenses of DAC | (445) | (1,656) | (744) |
Total amortization of DAC | (187) | (256) | (635) |
Unrealized investment gains (losses) of DAC | (47) | (56) | 96 |
Effect of foreign currency translation and other of DAC | 0 | (49) | 0 |
Ending Balance of DAC | 5,678 | 5,652 | 5,679 |
Beginning Balance of VOBA | 641 | 711 | 763 |
Net investment gains (losses) of VOBA and net derivative gains (losses) of VOBA | (9) | 2 | (19) |
Other expenses of VOBA | (31) | (117) | (127) |
Total amortization of VOBA | (40) | (115) | (146) |
Unrealized investment gains (losses) of VOBA | 7 | 45 | 94 |
Ending Balance of VOBA | 608 | 641 | 711 |
Balance at December 31, | $ 6,286 | $ 6,293 | $ 6,390 |
Deferred Policy Acquisition C64
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (DAC and VOBA by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | |||
DAC and VOBA | $ 6,286 | $ 6,293 | $ 6,390 |
Annuities | |||
Segment Reporting Information [Line Items] | |||
DAC and VOBA | 5,047 | 4,878 | |
Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
DAC and VOBA | 128 | 148 | |
Life | |||
Segment Reporting Information [Line Items] | |||
DAC and VOBA | 1,106 | 1,261 | |
Run-off | |||
Segment Reporting Information [Line Items] | |||
DAC and VOBA | $ 5 | $ 6 |
Deferred Policy Acquisition C65
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Deferred Sales Inducements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DSI: | |||
Balance at January 1, | $ 445 | $ 532 | $ 586 |
Capitalization | 2 | 3 | 4 |
Amortization | (5) | (88) | (76) |
Unrealized investment gains (losses) | (11) | (2) | 18 |
Balance at December 31, | $ 431 | $ 445 | $ 532 |
Deferred Policy Acquisition C66
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (VODA and VOCRA) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Balance at January 1, | $ 120 | $ 136 | $ 155 |
Amortization | (15) | (16) | (19) |
Balance at December 31, | 105 | 120 | 136 |
Accumulated amortization | $ 155 | $ 140 | $ 124 |
Deferred Policy Acquisition C67
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Estimated Future Amortization) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Estimated future amortization expense allocated to other expenses for VOBA [Abstract] | |
VOBA 2,018 | $ 98 |
VOBA 2,019 | 84 |
VOBA 2,020 | 62 |
VOBA 2,021 | 53 |
VOBA 2,022 | 46 |
Distribution Rights [Member] | |
Value of Distribution Agreements and Customer Relationships Acquired [Abstract] | |
VODA 2,018 | 14 |
VODA 2,019 | 13 |
VODA 2,020 | 12 |
VODA 2,021 | 10 |
VODA 2,022 | $ 9 |
Reinsurance (Effects of Reinsur
Reinsurance (Effects of Reinsurance on Earnings) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premiums: | |||
Direct premiums | $ 1,795 | $ 2,296 | $ 2,472 |
Reinsurance assumed | 11 | 79 | 297 |
Reinsurance ceded | (943) | (1,153) | (1,090) |
Net premiums | 863 | 1,222 | 1,679 |
Universal life and investment-type product policy fees: | |||
Direct universal life and investment-type product policy fees | 4,430 | 4,300 | 4,472 |
Reinsurance assumed | 96 | 119 | 132 |
Reinsurance ceded | (628) | (637) | (594) |
Net universal life and investment-type product policy fees | 3,898 | 3,782 | 4,010 |
Other revenues | |||
Other Income Direct | 576 | 326 | 292 |
Commissions Fees And Other Income Assumed | 28 | 87 | 0 |
Other Income Ceded | 47 | 323 | 130 |
Other Income | 651 | 736 | 422 |
Policyholder benefits and claims: | |||
Direct policyholder benefits and claims | 5,228 | 6,351 | 5,208 |
Reinsurance assumed | 31 | 123 | 298 |
Reinsurance ceded | (1,623) | (2,571) | (2,237) |
Net policyholder benefits and claims | 3,636 | 3,903 | 3,269 |
Interest Credited To Policyholder Account Balances [Abstract] | |||
Interest credited to policyholder account balances | 1,111 | 1,165 | 1,259 |
Deferred Policy Acquisition Costs and Present Value of Future Profits [Abstract] | |||
Amortization of DAC and VOBA | 227 | 371 | 781 |
Other expenses: | |||
Total other expenses | 2,483 | 2,284 | 2,120 |
Accident and Health Insurance Product Line [Member] | |||
Premiums: | |||
Direct premiums | 238 | 229 | 243 |
Reinsurance assumed | 0 | 3 | 9 |
Reinsurance ceded | (232) | (224) | (235) |
Net premiums | $ 6 | $ 8 | $ 17 |
Reinsurance (Effects of Reins69
Reinsurance (Effects of Reinsurance on Balance Sheet) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effects of Reinsurance [Line Items] | |||
Other invested assets | $ 2,436 | $ 4,904 | |
Assets | |||
Premiums and Other Receivables, Net | 13,525 | 14,647 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | 6,286 | 6,293 | $ 6,390 |
Liabilities | |||
Future policy benefits | 36,616 | 33,372 | |
Policyholder account balances | 37,783 | 37,526 | |
Other policy-related balances | 2,985 | 3,045 | |
Other Liabilities | 5,263 | 5,929 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (615) | $ (4,705) | $ 1,462 |
PWL [Member] | |||
Effects of Reinsurance [Line Items] | |||
Percentage Of Participating Whole Life Insurance Policies | 90.00% | ||
Other invested assets | $ 713 | ||
Assets | |||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | 95 | ||
Liabilities | |||
Future policy benefits | 654 | ||
Other Liabilities | 43 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 72 | ||
Direct | |||
Assets | |||
Premiums and Other Receivables, Net | 647 | 1,152 | |
Liabilities | |||
Policyholder account balances | 37,510 | 37,066 | |
Other policy-related balances | 1,311 | 1,368 | |
Other Liabilities | 4,475 | 4,818 | |
Assumed | |||
Assets | |||
Premiums and Other Receivables, Net | 27 | 21 | |
Liabilities | |||
Policyholder account balances | 273 | 460 | |
Other policy-related balances | 1,674 | 1,677 | |
Other Liabilities | 32 | 12 | |
Ceded | |||
Assets | |||
Premiums and Other Receivables, Net | 12,851 | 13,474 | |
Liabilities | |||
Policyholder account balances | 0 | 0 | |
Other policy-related balances | 0 | 0 | |
Other Liabilities | $ 756 | $ 1,099 |
Reinsurance Reinsurance (Effect
Reinsurance Reinsurance (Effects of Reinsurance on Earnings - Related Party) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effects of Reinsurance [Line Items] | |||
Reinsurance assumed | $ 11 | $ 79 | $ 297 |
Ceded Premiums Earned | 943 | 1,153 | 1,090 |
Premiums | 863 | 1,222 | 1,679 |
Assumed Insurance Commissions And Fees | 96 | 119 | 132 |
Ceded Insurance Commissions And Fees | 628 | 637 | 594 |
Insurance Commissions and Fees | 3,898 | 3,782 | 4,010 |
Commissions Fees And Other Income Assumed | 28 | 87 | 0 |
Other Income Ceded | 47 | 323 | 130 |
Other Income | 651 | 736 | 422 |
Policyholder Benefits and Claims Incurred, Assumed | 31 | 123 | 298 |
Reinsurance ceded | (1,623) | (2,571) | (2,237) |
Amortization of DAC and VOBA | 227 | 371 | 781 |
Operating Expenses | 2,483 | 2,284 | 2,120 |
Affiliated Entity [Member] | Assumed Reinsurance [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance assumed | 11 | 34 | 227 |
Assumed Insurance Commissions And Fees | 96 | 119 | 132 |
Commissions Fees And Other Income Assumed | 27 | 56 | 0 |
Policyholder Benefits and Claims Incurred, Assumed | 30 | 86 | 248 |
Affiliated Entity [Member] | Ceded Reinsurance [Member] | |||
Effects of Reinsurance [Line Items] | |||
Ceded Premiums Earned | 537 | 766 | 687 |
Ceded Insurance Commissions And Fees | 14 | 60 | 59 |
Other Income Ceded | 44 | 320 | 130 |
Reinsurance ceded | (420) | (757) | (678) |
Affiliated Entity [Member] | Reinsurance [Member] | |||
Effects of Reinsurance [Line Items] | |||
Premiums | (526) | (732) | (460) |
Insurance Commissions and Fees | 82 | 59 | 73 |
Other Income | 71 | 376 | 130 |
Policyholder Benefits and Claims Incurred, Assumed and Ceded | $ (390) | $ (671) | $ (430) |
Reinsurance (Effects of Reins71
Reinsurance (Effects of Reinsurance on Balance Sheet - Related Party) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Effects of Reinsurance [Line Items] | |||
Premiums and Other Receivables, Net | $ 13,525 | $ 14,647 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | 6,286 | 6,293 | $ 6,390 |
Liability for Future Policy Benefits | 36,616 | 33,372 | |
Policyholder account balances | 37,783 | 37,526 | |
Other liabilities relating to variable interest entities | 5,263 | 5,929 | |
Assumed Reinsurance [Member] | |||
Effects of Reinsurance [Line Items] | |||
Premiums and Other Receivables, Net | 27 | 21 | |
Policyholder account balances | 273 | 460 | |
Other liabilities relating to variable interest entities | 32 | 12 | |
Assumed Reinsurance [Member] | Affiliated Entity [Member] | |||
Effects of Reinsurance [Line Items] | |||
Premiums and Other Receivables, Net | 18 | 21 | |
Policyholder account balances | 0 | 460 | |
Other Policy-Related Balances | 1,674 | 1,677 | |
Other liabilities relating to variable interest entities | 30 | 10 | |
Ceded Reinsurance [Member] | |||
Effects of Reinsurance [Line Items] | |||
Premiums and Other Receivables, Net | 12,851 | 13,474 | |
Policyholder account balances | 0 | 0 | |
Other liabilities relating to variable interest entities | 756 | 1,099 | |
Ceded Reinsurance [Member] | Affiliated Entity [Member] | |||
Effects of Reinsurance [Line Items] | |||
Premiums and Other Receivables, Net | 3,410 | 4,020 | |
Policyholder account balances | 0 | 0 | |
Other Policy-Related Balances | 0 | 0 | |
Other liabilities relating to variable interest entities | $ 401 | $ 715 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Ceded Credit Risk [Line Items] | ||
Deposit assets in premiums, reinsurance, and other receivables or secondary guarantee risk for reinsurance | $ 1,600 | $ 2,000 |
Deposit liabilities in other liabilities for reinsurance | 1 | |
Reinsurance recoverables | 9,300 | 9,300 |
Ceded Credit Risk, Unsecured [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverables | 2,600 | 2,700 |
Five Largest Ceded Reinsurers [Member] | ||
Ceded Credit Risk [Line Items] | ||
Five largest reinsurers, reinsurance recoverables amount | $ 8,000 | $ 7,800 |
Five largest reinsurers, reinsurance recoverables percentage | 86.00% | 84.00% |
Five Largest Ceded Reinsurers [Member] | Ceded Credit Risk, Unsecured [Member] | ||
Ceded Credit Risk [Line Items] | ||
Five largest reinsurers, reinsurance recoverables amount | $ 1,400 | $ 1,500 |
Annuities | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of reinsured risk in excess of stated amount | 100.00% | |
Living And Death Benefit Guarantees [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Reinsured risk percentage | 100.00% | |
Mortality Risk [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of reinsured risk in excess of stated amount | 90.00% | |
Retention amount | $ 2 | |
Mortality Risk on Case by Case Basis [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of reinsured risk in excess of stated amount | 100.00% | |
Retention amount | $ 20 | |
Quota Share Reinsurance for Certain Disability Business [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Reinsured risk percentage | 100.00% | |
Maximum | ||
Ceded Credit Risk [Line Items] | ||
Deposit liabilities in other liabilities for reinsurance | $ 1 |
Reinsurance Reinsurance Transac
Reinsurance Reinsurance Transactions (Detail Narrative) (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Jan. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 01, 2017 | Jan. 01, 2017 | Dec. 01, 2016 | Nov. 01, 2016 | Apr. 01, 2016 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||||||||||||||
Embedded derivatives within liability host contracts | $ 3,011 | $ 1,887 | $ 3,011 | |||||||||||
Other liabilities relating to variable interest entities | 5,929 | 5,263 | 5,929 | |||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (615) | (4,705) | $ 1,462 | |||||||||||
Deferred Policy Acquisition Costs | 5,652 | 5,678 | 5,652 | 5,679 | $ 5,819 | |||||||||
Premiums and Other Receivables, Net | 14,647 | 13,525 | 14,647 | |||||||||||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | 6,293 | 6,286 | 6,293 | 6,390 | ||||||||||
Reinsurance Recoverables, Ceded | 9,300 | 9,300 | 9,300 | |||||||||||
Deposit Contracts, Assets | 2,000 | 1,600 | 2,000 | |||||||||||
Embedded derivatives within asset host contracts | 579 | 175 | 579 | |||||||||||
Liability for Future Policy Benefits | 33,372 | 36,616 | 33,372 | |||||||||||
Policyholder account balances | 37,526 | 37,783 | 37,526 | |||||||||||
Affiliated Entity | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Deposit Contracts, Assets | 1,700 | 1,400 | 1,700 | |||||||||||
Recapture MLUS [Member] | Affiliated Entity | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 246 | |||||||||||||
Cash, Cash Equivalents, and Short-term Investments | $ 4,300 | |||||||||||||
Premiums and Other Receivables, Net | 4,000 | |||||||||||||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | $ 87 | |||||||||||||
Life and Other [Member] | Affiliated Entity | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 17 | |||||||||||||
Cash, Cash Equivalents, and Short-term Investments | $ 214 | |||||||||||||
Premiums and Other Receivables, Net | $ 189 | |||||||||||||
Ceded Guaranteed Minimum Benefit [Member] | Affiliated Entity | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Embedded derivatives gains (losses) | (263) | 62 | 100 | |||||||||||
Embedded derivatives within asset host contracts | 390 | 2 | 390 | |||||||||||
Affiliate Recapture Variable Annuities [Member] | Affiliated Entity | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Other liabilities relating to variable interest entities | $ 274 | |||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 178 | |||||||||||||
Assumed Guaranteed Minimum Benefit [Member] | Affiliated Entity | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Embedded derivatives within liability host contracts | 460 | 0 | 460 | |||||||||||
Embedded derivatives gains (losses) | 110 | (27) | $ (34) | |||||||||||
SPDARecapture [Member] | Affiliated Entity | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 22 | |||||||||||||
Cash, Cash Equivalents, and Short-term Investments | $ 933 | |||||||||||||
Deferred Policy Acquisition Costs | 23 | |||||||||||||
Premiums and Other Receivables, Net | $ 923 | |||||||||||||
MRVTermRecapture [Member] | Affiliated Entity | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Other liabilities relating to variable interest entities | $ 158 | |||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 24 | |||||||||||||
Cash, Cash Equivalents, and Short-term Investments | 27 | |||||||||||||
Premiums and Other Receivables, Net | $ 94 | |||||||||||||
Metropolitan Life Insurance Company [Member] | BHL Recapture GMIB [Member] | Affiliated Entity | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 89 | |||||||||||||
Cash, Cash Equivalents, and Short-term Investments | 568 | |||||||||||||
Premiums and Other Receivables, Net | 140 | |||||||||||||
Liability for Future Policy Benefits | 106 | |||||||||||||
Policyholder account balances | $ 460 | |||||||||||||
Ceded Credit Risk, Unsecured [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Reinsurance Recoverables, Ceded | 2,700 | 2,600 | 2,700 | |||||||||||
Ceded Credit Risk, Unsecured [Member] | Affiliated Entity | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Reinsurance Recoverables, Ceded | $ 3,200 | 2,600 | $ 3,200 | |||||||||||
Ceded Credit Risk, Secured [Member] | Accident and Health Insurance Product Line [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Reinsurance Recoverables, Ceded | $ 6,500 |
Investments (Fixed Maturity and
Investments (Fixed Maturity and Equity Securities Available-For-Sale by Sector) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | $ 60,173 | $ 58,715 | |
Cost or Amortized Cost | 212 | 280 | |
Gross Unrealized OTTI Loss | 2 | 1 | $ (23) |
Available-for-sale Securities, Debt Securities | 64,991 | 61,388 | |
Available-for-sale Securities, Equity Securities | 232 | 300 | |
Fixed Maturity Securities | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 60,173 | 58,715 | |
Gross Unrealized Gain | 5,180 | 3,619 | |
Gross Unrealized Temporary Loss | 365 | 947 | |
Gross Unrealized OTTI Loss | (3) | (1) | |
Available-for-sale Securities, Debt Securities | 64,991 | 61,388 | |
U.S. corporate | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 21,190 | 21,278 | |
Gross Unrealized Gain | 1,859 | 1,324 | |
Gross Unrealized Temporary Loss | 92 | 291 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Available-for-sale Securities, Debt Securities | 22,957 | 22,311 | |
U.S. government and agency | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 14,548 | 12,032 | |
Gross Unrealized Gain | 1,862 | 1,294 | |
Gross Unrealized Temporary Loss | 118 | 236 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Available-for-sale Securities, Debt Securities | 16,292 | 13,090 | |
RMBS | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 7,749 | 7,961 | |
Gross Unrealized Gain | 285 | 206 | |
Gross Unrealized Temporary Loss | 60 | 144 | |
Gross Unrealized OTTI Loss | (3) | 0 | |
Available-for-sale Securities, Debt Securities | 7,977 | 8,023 | |
Foreign corporate | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 6,703 | 6,343 | |
Gross Unrealized Gain | 386 | 230 | |
Gross Unrealized Temporary Loss | 66 | 180 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Available-for-sale Securities, Debt Securities | 7,023 | 6,393 | |
State and political subdivision | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 3,635 | 3,590 | |
Gross Unrealized Gain | 553 | 393 | |
Gross Unrealized Temporary Loss | 6 | 38 | |
Gross Unrealized OTTI Loss | 1 | 0 | |
Available-for-sale Securities, Debt Securities | 4,181 | 3,945 | |
CMBS | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 3,386 | 3,799 | |
Gross Unrealized Gain | 53 | 44 | |
Gross Unrealized Temporary Loss | 17 | 32 | |
Gross Unrealized OTTI Loss | (1) | (1) | |
Available-for-sale Securities, Debt Securities | 3,423 | 3,812 | |
ABS | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 1,810 | 2,654 | |
Gross Unrealized Gain | 21 | 12 | |
Gross Unrealized Temporary Loss | 2 | 14 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Available-for-sale Securities, Debt Securities | 1,829 | 2,652 | |
Foreign government | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 1,152 | 1,058 | |
Gross Unrealized Gain | 161 | 116 | |
Gross Unrealized Temporary Loss | 4 | 12 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Available-for-sale Securities, Debt Securities | 1,309 | 1,162 | |
Equity securities | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 212 | 280 | |
Gross Unrealized Gain | 21 | 29 | |
Gross Unrealized Temporary Loss | 1 | 9 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Available-for-sale Securities, Equity Securities | $ 232 | $ 300 |
Investments (Maturities of Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 1,871 | |
Amortized Cost, Due after one year through five years | 10,548 | |
Amortized Cost, Due after five years through ten years | 11,478 | |
Amortized Cost, Due after ten years | 23,331 | |
Amortized Cost, Structured Securities | 12,945 | |
Amortized Cost, Subtotal | 60,173 | $ 58,715 |
Estimated Fair Value, Due in one year or less | 1,876 | |
Estimated Fair Value, Due after one year through five years | 10,890 | |
Estimated Fair Value, Due after five years through ten years | 11,816 | |
Estimated Fair Value, Due after ten years | 27,180 | |
Estimated fair value, structured securities | 13,229 | |
Available-for-sale Securities, Debt Securities | $ 64,991 | $ 61,388 |
Investments (Continuous Gross U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities Available-For-Sale) (Details) $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Total number of securities in an unrealized loss position less than 12 months | 922 | 1,741 |
Total number of securities in an unrealized loss position equal to or greater than 12 months | 642 | 483 |
Fixed Maturity Securities | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | $ 10,863 | $ 17,244 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 92 | 682 |
Equal to or Greater than 12 Months Estimated Fair Value | 5,543 | 2,863 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 270 | 264 |
U.S. corporate | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 1,783 | 4,676 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 21 | 189 |
Equal to or Greater than 12 Months Estimated Fair Value | 1,451 | 745 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 71 | 102 |
U.S. government and agency | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 4,962 | 4,396 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 38 | 236 |
Equal to or Greater than 12 Months Estimated Fair Value | 1,573 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 80 | 0 |
RMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 2,367 | 3,494 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 14 | 112 |
Equal to or Greater than 12 Months Estimated Fair Value | 1,332 | 818 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 43 | 32 |
Foreign corporate | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 637 | 1,466 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 8 | 66 |
Equal to or Greater than 12 Months Estimated Fair Value | 603 | 633 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 58 | 114 |
State and political subdivision | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 170 | 889 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 3 | 35 |
Equal to or Greater than 12 Months Estimated Fair Value | 106 | 29 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 4 | 3 |
CMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 619 | 1,572 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 6 | 27 |
Equal to or Greater than 12 Months Estimated Fair Value | 335 | 171 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 10 | 4 |
ABS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 170 | 478 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 6 |
Equal to or Greater than 12 Months Estimated Fair Value | 74 | 461 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 2 | 8 |
Foreign government | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 155 | 273 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2 | 11 |
Equal to or Greater than 12 Months Estimated Fair Value | 69 | 6 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 2 | 1 |
Equity securities | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 17 | 57 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 2 |
Equal to or Greater than 12 Months Estimated Fair Value | 10 | 40 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 1 | $ 7 |
Investments (Mortgage Loans by
Investments (Mortgage Loans by Portfolio Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Company-held mortgage loans held-for-investment, net | ||
Commercial mortgage loans | $ 7,260 | $ 6,523 |
Percentage of loans receivable on commercial mortgage loans | 67.50% | 69.60% |
Agricultural mortgage loans | $ 2,276 | $ 1,892 |
Percentage of loans receivable on agricultural mortgage loans | 21.20% | 20.20% |
Residential mortgage loans | $ 1,138 | $ 867 |
Percentage of loans receivable on residential mortgage loans | 10.60% | 9.20% |
Subtotal (1) | $ 10,674 | $ 9,282 |
Percentage of loans receivable on subtotal | 99.30% | 99.00% |
Valuation allowances (2) | $ (47) | $ (40) |
Percentage of loans receivable on valuation allowances | 0.40% | 0.40% |
Subtotal mortgage loans, net | $ 10,627 | $ 9,242 |
Percentage of loans receivable on subtotal mortgage loans held-for-investment, net | 98.90% | 98.60% |
Percentage of loans receivable on commercial mortgage loans held by consolidated securitization entities - fair value option | 1.10% | 1.40% |
Total mortgage loans, net | $ 10,742 | $ 9,378 |
Percentage of total mortgage loans, net | 100.00% | 100.00% |
Variable Interest Entity, Primary Beneficiary, Consolidated Securitization Entities | ||
Company-held mortgage loans held-for-investment, net | ||
Total mortgage loans, net | $ 115 | $ 136 |
Investments (Credit Quality of
Investments (Credit Quality of Commercial Mortgage Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 7,260 | $ 6,523 |
% of Total | 100.00% | 100.00% |
Estimated Fair Value | $ 7,419 | $ 6,595 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 6,520 | $ 6,141 |
% of Total | 89.80% | 94.10% |
Estimated Fair Value | $ 6,681 | $ 6,222 |
% of Total | 90.00% | 94.30% |
65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 656 | $ 310 |
% of Total | 9.00% | 4.80% |
Estimated Fair Value | $ 658 | $ 303 |
% of Total | 8.90% | 4.60% |
76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 51 | $ 34 |
% of Total | 0.70% | 0.50% |
Estimated Fair Value | $ 50 | $ 33 |
% of Total | 0.70% | 0.50% |
Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 33 | $ 38 |
% of Total | 0.50% | 0.60% |
Estimated Fair Value | $ 30 | $ 37 |
% of Total | 0.40% | 0.60% |
Greater than 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 6,878 | $ 6,093 |
Greater than 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 6,194 | 5,744 |
Greater than 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 642 | 291 |
Greater than 1.20x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 42 | 34 |
Greater than 1.20x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 0 | 24 |
1.00x - 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 302 | 244 |
1.00x - 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 293 | 230 |
1.00x - 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 0 | 0 |
1.00x - 1.20x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 0 | 0 |
1.00x - 1.20x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 9 | 14 |
Less than 1.00x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 80 | 186 |
Less than 1.00x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 33 | 167 |
Less than 1.00x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 14 | 19 |
Less than 1.00x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 9 | 0 |
Less than 1.00x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 24 | $ 0 |
Investments (Credit Quality o79
Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 2,276 | $ 1,892 |
% of Total | 100.00% | 100.00% |
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 1,138 | $ 867 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 2,113 | $ 1,849 |
% of Total | 92.80% | 97.70% |
65% to 75% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 163 | $ 43 |
% of Total | 7.20% | 2.30% |
Performing | ||
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 1,106 | $ 856 |
% of Total | 97.20% | 98.70% |
Nonperforming | ||
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 32 | $ 11 |
% of Total | 2.80% | 1.30% |
Investments (Investment in Leve
Investments (Investment in Leverage Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investment in leveraged leases | ||
Rental receivables, net | $ 87 | $ 87 |
Estimated residual values | 14 | 14 |
Subtotal | 101 | 101 |
Unearned income | (35) | (32) |
Investment in leases, net of non-recourse debt | $ 66 | $ 69 |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | |||
Fixed maturity securities | $ 4,806 | $ 2,663 | $ 2,324 |
Fixed maturity securities with noncredit OTTI losses in AOCI | 2 | 1 | (23) |
Total fixed maturity securities | 4,808 | 2,664 | 2,301 |
Equity securities | 39 | 32 | 54 |
Derivatives | 239 | 414 | 388 |
Net Unrealized Investment Gains Losses included in Accumulated Other Comprehensive Income Loss Allocated from short-term investments | 0 | (42) | 0 |
Other | (8) | (26) | 5 |
Subtotal | 5,078 | 3,042 | 2,748 |
Future policy benefits | (2,626) | (802) | (126) |
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | (2) | (2) | (1) |
DAC, VOBA and DSI | (265) | (214) | (202) |
Subtotal | (2,893) | (1,018) | (329) |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 0 | 0 | 9 |
Deferred income tax benefit (expense) | (459) | (712) | (855) |
Net unrealized investment gains (losses) | $ 1,726 | $ 1,312 | $ 1,573 |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract] | |||
Balance at January 1, | $ 1,312 | $ 1,573 | $ 2,745 |
Fixed maturity securities on which noncredit OTTI losses have been recognized | 1 | 24 | 15 |
Unrealized investment gains (losses) during the year | 2,035 | 270 | (2,513) |
Unrealized investment gains (losses) relating to: | |||
Future policy benefits | (1,824) | (676) | 487 |
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | 0 | (1) | 1 |
DAC, VOBA and DSI | (51) | (12) | 207 |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 0 | (9) | (5) |
Deferred income tax benefit (expense) | 253 | 143 | 636 |
Balance at December 31, | 1,726 | 1,312 | 1,573 |
Change in net unrealized investment gains (losses) | $ 414 | $ (261) | $ (1,172) |
Investments (Securities Lending
Investments (Securities Lending) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | $ 3,791 | $ 6,642 |
Security collateral on deposit from counterparties | 29 | 27 |
Reinvestment portfolio — estimated fair value | 3,823 | 6,571 |
Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | 3,085 | 5,895 |
Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | $ 3,748 | $ 6,555 |
Investments (Securities Lendi84
Investments (Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Securities Financing Transaction [Line Items] | ||
Total | $ 3,791 | $ 6,642 |
Open (1) | ||
Securities Financing Transaction [Line Items] | ||
Total | 1,626 | 2,129 |
1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Total | 964 | 2,496 |
1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Total | 1,201 | 2,017 |
U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 3,791 | 5,778 |
U.S. government and agency | Open (1) | ||
Securities Financing Transaction [Line Items] | ||
Total | 1,626 | 2,129 |
U.S. government and agency | 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Total | 964 | 1,906 |
U.S. government and agency | 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Total | 1,201 | 1,743 |
U.S. corporate | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 480 |
U.S. corporate | Open (1) | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 0 |
U.S. corporate | 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 480 |
U.S. corporate | 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 0 |
Agency RMBS | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 274 |
Agency RMBS | Open (1) | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 0 |
Agency RMBS | 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 0 |
Agency RMBS | 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 274 |
Foreign corporate | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 58 |
Foreign corporate | Open (1) | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 0 |
Foreign corporate | 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 58 |
Foreign corporate | 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 0 |
Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 52 |
Foreign government | Open (1) | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 0 |
Foreign government | 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 52 |
Foreign government | 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 0 | $ 0 |
Investments (Invested Assets on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit (regulatory deposits) (1) | $ 8,263 | $ 7,648 |
Invested assets held in trust (reinsurance agreements) (2) | 2,634 | 9,054 |
Invested assets pledged as collateral (3) | 3,199 | 3,548 |
Total invested assets on deposit, held in trust and pledged as collateral | $ 14,096 | $ 20,250 |
Investments (PCI Investments by
Investments (PCI Investments by Invested Asset Class) (Details) - Fixed Maturity Securities - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Purchased credit impaired investments, by invested asset class, held: | ||
Outstanding principal and interest balance | $ 1,270 | $ 1,497 |
Carrying value | $ 1,044 | $ 1,142 |
Investments (PCI Investments Ac
Investments (PCI Investments Acquired) (Details) - Fixed Maturity Securities - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Purchased credit impaired investments as of their respective acquisition dates | ||
Contractually required payments (including interest) | $ 3 | $ 567 |
Cash flows expected to be collected (1) | 3 | 490 |
Fair value of investments acquired | $ 2 | $ 347 |
Investments (Activity For Accre
Investments (Activity For Accretable Yield on PCI Investments) (Details) - Fixed Maturity Securities - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accretable yield on purchased distressed assets acquired | ||
Accretable yield, January 1, | $ 429 | $ 420 |
Accretion recognized in earnings | (69) | (68) |
Disposals | (10) | (13) |
Reclassification (to) from nonaccretable difference | 34 | (53) |
Accretable yield, December 31, | 385 | 429 |
Investments purchased | ||
Accretable yield on purchased distressed assets acquired | ||
Investments purchased | $ 1 | $ 143 |
Investments (Consolidated Varia
Investments (Consolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 116 | $ 3,559 |
Total liabilities | 11 | 24 |
MRSC (collateral financing arrangement (primarily securities)) | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 3,422 |
Total liabilities | 0 | 0 |
Consolidated securitization entities | ||
Variable Interest Entity [Line Items] | ||
Total assets | 116 | 137 |
Total liabilities | $ 11 | $ 24 |
Investments (Unconsolidated Var
Investments (Unconsolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | $ 13,558 | $ 15,165 |
Carrying Amount Liability | 14,517 | 15,973 |
Other limited partnership interests | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 1,511 | 1,495 |
Carrying Amount Liability | 2,463 | 2,292 |
Other | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 82 | 90 |
Carrying Amount Liability | 89 | 101 |
Structured securities | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 11,461 | 13,062 |
Carrying Amount Liability | 11,461 | 13,062 |
U.S. corporate and foreign corporate securities | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 504 | 518 |
Carrying Amount Liability | $ 504 | $ 518 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Investment Income [Line Items] | |||
Less: Investment expenses | $ 178 | $ 176 | $ 128 |
Net investment income | 3,078 | 3,207 | 3,099 |
Securities Investment | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 3,248 | 3,371 | 3,211 |
Net investment income | 3,070 | 3,195 | 3,083 |
Fixed Maturity Securities | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 2,420 | 2,642 | 2,478 |
Mortgage loans | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 446 | 401 | 373 |
Equity securities | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 12 | 19 | 19 |
Policy loans | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 73 | 78 | 78 |
Real estate and real estate joint ventures | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 53 | 32 | 108 |
Other limited partnership interests | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 184 | 163 | 134 |
Cash, cash equivalents and short-term investments | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 35 | 20 | 9 |
Other | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 25 | 16 | 12 |
FVO CSEs — interest income — commercial mortgage loans | Consolidated Securitization Entities | |||
Net Investment Income [Line Items] | |||
Net investment income | $ 8 | $ 12 | $ 16 |
Investments (Components of Net
Investments (Components of Net Investment Gains Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Marketable Securities, Gain (Loss) | |||
Fixed maturity securities — net gains (losses) on sales and disposals | $ (25) | $ (40) | $ (59) |
Equity securities — net gains (losses) on sales and disposals | 26 | 10 | 18 |
Other net investment gains (losses): | |||
Mortgage Loans | (9) | 6 | (11) |
Real estate and real estate joint ventures | 4 | (34) | 98 |
Other limited partnership interests | (11) | (7) | (1) |
Other | (5) | 11 | 0 |
Subtotal portfolio gains (losses) | (25) | (78) | 11 |
FVO CSEs - changes in estimated fair value: | |||
Commercial mortgage loans | (3) | (2) | (7) |
Long-term debt — related to commercial mortgage loans | 1 | 1 | 4 |
Non-investment portfolio gains (losses) | (1) | 1 | (1) |
Subtotal | (3) | 0 | (4) |
Total net investment gains (losses) | (28) | (78) | 7 |
Industrial | |||
Gain (Loss) on Investments [Line Items] | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 0 | (16) | (3) |
Consumer | |||
Gain (Loss) on Investments [Line Items] | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 0 | 0 | (8) |
Utility | |||
Gain (Loss) on Investments [Line Items] | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 0 | 0 | (6) |
Fixed Maturity Securities | |||
Gain (Loss) on Investments [Line Items] | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | (1) | (22) | (31) |
Net investment gains (losses) | (26) | (62) | (90) |
U.S. corporate and foreign corporate securities | |||
Gain (Loss) on Investments [Line Items] | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 0 | (16) | (17) |
RMBS | |||
Gain (Loss) on Investments [Line Items] | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 0 | (6) | (14) |
State and political subdivision | |||
Gain (Loss) on Investments [Line Items] | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | (1) | 0 | 0 |
Equity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | (4) | (2) | (3) |
Net investment gains (losses) | $ 22 | $ 8 | $ 15 |
Investments (Sales or Disposals
Investments (Sales or Disposals and Impairments of Fixed Maturity and Equity Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fixed Maturity Securities | |||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | |||
Proceeds | $ 12,665 | $ 39,800 | $ 32,524 |
Gross investment gains | 59 | 266 | 190 |
Gross investment losses | (84) | (306) | (249) |
Total OTTI losses recognized in earnings: | |||
Total OTTI losses recognized in earnings | (1) | (22) | (31) |
Net investment gains (losses) | (26) | (62) | (90) |
Equity securities | |||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | |||
Proceeds | 68 | 48 | 80 |
Gross investment gains | 27 | 10 | 26 |
Gross investment losses | (1) | 0 | (8) |
Total OTTI losses recognized in earnings: | |||
Total OTTI losses recognized in earnings | (4) | (2) | (3) |
Net investment gains (losses) | $ 22 | $ 8 | $ 15 |
Investments (Credit Loss Rollfo
Investments (Credit Loss Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance at January 1, | $ 28 | $ 66 |
Additions: | ||
Additional impairments — credit loss OTTI on securities previously impaired | 0 | 5 |
Reductions: | ||
Balance at December 31, | 0 | 28 |
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI | (28) | (42) |
Increase in cash flows — accretion of previous credit loss OTTI | $ 0 | $ (1) |
Investments Investments (Relate
Investments Investments (Related Party Investment Transactions) (Details) - Affiliated Entity - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Invested Assets Transferred To and From Affiliates | |||
Estimated fair value of invested assets transferred to affiliates | $ 292 | $ 1,517 | $ 185 |
Amortized cost of invested assets transferred to former affiliates | 294 | 1,419 | 169 |
Net investment gains (losses) recognized on transfers | (2) | 27 | 16 |
Change additional paid-in-capital recognized on transfers | 0 | 71 | 0 |
Estimated fair value of invested assets transferred from former affiliates | $ 0 | $ 5,582 | $ 928 |
Investments (Fixed Maturity a96
Investments (Fixed Maturity and Equity Securities Available-For-Sale - Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of Certain Fixed Maturity Securities | ||
Available-for-sale Securities, Debt Securities | $ 64,991 | $ 61,388 |
Non-Income Producing Debt Securities [Member] | ||
Summary of Certain Fixed Maturity Securities | ||
Available-for-sale Securities, Debt Securities | 4 | 5 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | $ (2) | |
Maximum | Non-Income Producing Debt Securities [Member] | ||
Summary of Certain Fixed Maturity Securities | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | $ 1 |
Investments (Evaluation of Avai
Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)Contracts | |
Schedule of Available-for-sale Securities [Line Items] | |
Fixed Maturities Available For Sale With Gross Unrealized Loss Of Equal To Or Greater Than Stated Percentage | 20.00% |
Fixed Maturity Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Change in Gross Unrealized Temporary Loss | $ 584 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 362 |
20% or more | Six months or greater | Fixed Maturity Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 7 |
Number of Securities | Contracts | 10 |
20% or more | Six months or greater | Fixed Maturity Securities | External Credit Rating, Investment Grade | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 3 |
Investments (Mortgage Loans - N
Investments (Mortgage Loans - Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Contracts | Dec. 31, 2016USD ($)Contracts | Dec. 31, 2015USD ($) | |
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Significant Purchases | $ 420 | $ 619 | |
Percentage of Mortgage Loans Classified as Performing | 99.00% | 99.00% | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | Contracts | 0 | 0 | |
Agricultural | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Estimated fair value of mortgage loans held-for-investment | $ 2,300 | $ 1,900 | |
Financing Receivable Number of Contract of Recorded Investment Past Due | Contracts | 0 | 0 | |
Loans and Leases Receivable, Number of Contract, Nonperforming, Nonaccrual of Interest | Contracts | 0 | 0 | |
Residential | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Estimated fair value of mortgage loans held-for-investment | $ 1,200 | $ 867 | |
Financing Receivable, Recorded Investment, Past Due | $ 32 | 32 | |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 11 | ||
Commercial | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable Number of Contract of Recorded Investment Past Due | Contracts | 0 | 0 | |
Loans and Leases Receivable, Number of Contract, Nonperforming, Nonaccrual of Interest | Contracts | 0 | 0 | |
Affiliated Entity | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Significant Purchases | $ 1,200 | $ 2,400 | $ 2,000 |
Related Party Transaction, Amounts of Transaction | $ 946 | $ 1,600 | $ 1,000 |
Investments (Other Invested Ass
Investments (Other Invested Assets - Narrative) (Details) | Dec. 31, 2017 |
Other invested assets | |
Percentage Estimated Fair Value | 80.00% |
Investments (Leverage Leases -
Investments (Leverage Leases - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Leveraged Leases [Abstract] | ||
Loans and Leases Receivable, Other Information | The payment periods for leveraged leases generally range from one to 15 years. | |
Loans and Leases Receivable, Ratio of Performing Loans to All Loans | 100.00% | 100.00% |
Deferred income tax liability related to leveraged leases | $ 43 | $ 74 |
Investments (Cash Equivalents -
Investments (Cash Equivalents - Narrative) (Details) - USD ($) $ in Billions | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash equivalents | $ 1.4 | $ 4.8 |
Investments (Concentrations of
Investments (Concentrations of Credit Risk - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Fair Value, Concentration of Risk, Investments | $ 0 | $ 0 |
Securities holdings exposure in single issuer greater than stated percentage of Company's equity | 10.00% |
Investments (Securities Lend103
Investments (Securities Lending Remaining Tenor - Narrative) (Details) $ in Billions | Dec. 31, 2017USD ($) |
U.S. government and agency | |
Securities Financing Transaction [Line Items] | |
Percentage Of US Treasury And Agency Securities At Estimated Fair Value Of Securities On Loan Relating To Cash Collateral On Open | 100.00% |
Securities Investment | |
Securities Financing Transaction [Line Items] | |
Percentage of Reinvestment Portfolio in Fixed Maturity Securities | 59.00% |
Estimated fair value | |
Securities Financing Transaction [Line Items] | |
Cash collateral on deposit from counterparties | $ 1.6 |
Investments Invest Assets On De
Investments Invest Assets On Deposit, Held in Trust and Pledged as Collateral ( Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deposit Assets | $ 8,263 | $ 7,648 |
Assets Held-in-trust | 2,634 | 9,054 |
Policyholder Account Balances [Member] | ||
Deposit Assets | 34 | |
Fixed Maturity Securities | Policyholder Account Balances [Member] | ||
Deposit Assets | 34 | |
Fixed Maturity Securities | Reinsurance [Member] | ||
Assets Held-in-trust | $ 42 | $ 15 |
Investments (Collectively Signi
Investments (Collectively Significant Equity Method Investments - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2017 | |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | ||||
Carrying Value of investments accounted for under the equity method | $ 2,200 | $ 89 | ||
Unfunded commitments for investments accounted for under the equity method | $ 1,100 | |||
Aggregate Net income Exceeded Stated Percentage Of The Pre Tax Income (Loss) From Continuing Operations | 10.00% | |||
Total assets for investments accounted for under the equity method | $ 329,200 | $ 285,300 | ||
Total liabilities for investments accounted for under the equity method | 40,000 | 26,400 | ||
Net Income (loss) for investments accounted for under the equity method | $ 36,400 | $ 21,300 | $ 13,700 |
Investments Investments (Consol
Investments Investments (Consolidated Variable Interest Entities - Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Consolidated securitization entities | ||
Variable Interest Entity [Line Items] | ||
Variable Interest, maximum exposure to loss in consolidated securitization entities | $ 86 | $ 95 |
Investments (Unonsolidated Vari
Investments (Unonsolidated Variable Interest Entities - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Financial or other support investees designated as VIEs | $ 0 | $ 0 | $ 0 |
Investments Investments (Rel108
Investments Investments (Related Party Investment Transactions- Narrative) (Details) - USD ($) $ in Millions | Apr. 28, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 01, 2016 | Apr. 30, 2016 | Apr. 01, 2016 |
Related Party Transaction [Line Items] | ||||||||
Increase (Decrease) in Notes Receivable, Related Parties | $ 1,100 | |||||||
Equity Method Investments | $ 89 | $ 2,200 | ||||||
Proceeds from Sale of Equity Method Investments | 286 | |||||||
Adjustments To Additional Paid In Capital, Capital Contribution | $ (202) | |||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 39 | |||||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 390 | $ 868 | 1,100 | |||||
Affiliated Entity | Other | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | 1,100 | |||||||
Related Party Loan One [Member] | Affiliated Entity | Other | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.21% | |||||||
Debt Instrument, Maturity Date | Sep. 30, 2032 | |||||||
Related Party Loan Two [Member] | Affiliated Entity | Other | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | |||||||
Debt Instrument, Maturity Date | Dec. 31, 2033 | |||||||
Recapture MLUS [Member] | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Cash, Cash Equivalents, and Short-term Investments | $ 4,300 | |||||||
Contract Termination [Member] | Recapture MLUS [Member] | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Cash, Cash Equivalents, and Short-term Investments | $ 5,200 | $ 5,200 | ||||||
Metlife Investment Advisors, LLC [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 95 | $ 100 | $ 81 |
Derivatives (Primary Risks) (De
Derivatives (Primary Risks) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | $ 113,549 | $ 131,505 |
Derivative assets | 2,254 | 3,622 |
Estimated Fair Value Liabilities | 3,129 | 3,883 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,029 | 1,848 |
Derivative assets | 143 | 250 |
Estimated Fair Value Liabilities | 75 | 11 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 175 | 310 |
Derivative assets | 44 | 41 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,854 | 1,538 |
Derivative assets | 99 | 209 |
Estimated Fair Value Liabilities | 75 | 11 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 27 | 45 |
Derivative assets | 5 | 7 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,827 | 1,493 |
Derivative assets | 94 | 202 |
Estimated Fair Value Liabilities | 75 | 11 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 111,520 | 129,657 |
Derivative assets | 2,111 | 3,372 |
Estimated Fair Value Liabilities | 3,054 | 3,872 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 20,213 | 28,175 |
Derivative assets | 922 | 1,928 |
Estimated Fair Value Liabilities | 774 | 1,687 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate floors | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 0 | 2,100 |
Derivative assets | 0 | 6 |
Estimated Fair Value Liabilities | 0 | 2 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,671 | 12,042 |
Derivative assets | 7 | 25 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 282 | 1,288 |
Derivative assets | 1 | 9 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 24,600 | 15,520 |
Derivative assets | 133 | 136 |
Estimated Fair Value Liabilities | 63 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,115 | 1,261 |
Derivative assets | 71 | 155 |
Estimated Fair Value Liabilities | 42 | 4 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 130 | 158 |
Derivative assets | 0 | 9 |
Estimated Fair Value Liabilities | 1 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Credit default swaps — purchased | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 65 | 37 |
Derivative assets | 0 | 0 |
Estimated Fair Value Liabilities | 1 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Credit default swaps — written | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,900 | 1,913 |
Derivative assets | 40 | 28 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Equity futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,713 | 8,037 |
Derivative assets | 15 | 38 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 47,066 | 37,501 |
Derivative assets | 794 | 897 |
Estimated Fair Value Liabilities | 1,664 | 934 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Equity variance swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 8,998 | 14,894 |
Derivative assets | 128 | 140 |
Estimated Fair Value Liabilities | 430 | 517 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Total rate of return swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,767 | 2,855 |
Derivative assets | 0 | 1 |
Estimated Fair Value Liabilities | $ 79 | $ 117 |
Derivatives (Net Derivative Gai
Derivatives (Net Derivative Gains Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of Net Derivatives Gains (Losses) | |||
Total net derivative gains (losses) | $ (1,620) | $ (5,851) | $ (326) |
Derivatives (Earned Income On D
Derivatives (Earned Income On Derivatives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | $ 345 | $ 497 | $ 386 |
Derivatives Designated as Hedging Instruments [Member] | Net investment income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | 23 | 21 | 13 |
Derivatives Designated as Hedging Instruments [Member] | Interest credited to policyholder account balances | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | 0 | 0 | (2) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | 314 | 461 | 361 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder benefits and claims | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | $ 8 | $ 15 | $ 14 |
Derivatives (Gains Losses Recog
Derivatives (Gains Losses Recognized in Income Not Designated or Qualifying) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net derivative gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (1,890) | $ (6,293) | $ (681) |
Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 5 | (1) | (1) |
Policyholder benefits and claims | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (349) | (328) | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (1,904) | (6,334) | (687) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (1) | (6) | (4) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder benefits and claims | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (349) | $ (328) | $ 1 |
Derivatives (Fair Value Hedges)
Derivatives (Fair Value Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Hedged Items | $ (44) | $ (19) | $ (6) |
Derivatives (Cash Flow Hedges)
Derivatives (Cash Flow Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | $ (157) | $ 71 | $ 102 |
Cash Flow Hedges [Member] | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | $ (157) | $ 71 | $ 102 |
Derivatives (Hedges of Net Inve
Derivatives (Hedges of Net Investments in Foreign Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | $ (157) | $ 71 | $ 102 |
Derivatives (Credit Derivatives
Derivatives (Credit Derivatives) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 40 | $ 28 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 1,900 | $ 1,913 |
Weighted Average Years to Maturity | 4 years 1 month | 4 years 2 months |
Aaa/Aa/A | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 12 | $ 8 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 558 | $ 478 |
Weighted Average Years to Maturity | 2 years 9 months | 3 years 7 months |
Baa | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 28 | $ 20 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 1,317 | $ 1,415 |
Weighted Average Years to Maturity | 4 years 8 months | 4 years 5 months |
Ba | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 0 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 25 | $ 20 |
Weighted Average Years to Maturity | 4 years 6 months | 2 years 8 months |
Derivatives (Estimated Fair Val
Derivatives (Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | $ 2,303 | $ 3,726 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 3,121 | 3,834 |
Amounts offset in the consolidated balance sheet, Assets | 0 | 0 |
Amounts offset in the consolidated balance sheet, Liabilities | 0 | 0 |
Estimated fair value of derivative assets presented in the consolidated balance sheets | 2,303 | 3,726 |
Estimated fair value of derivative liabilities presented in the consolidated balance sheets | 3,121 | 3,834 |
Net amount of derivative assets after application of master netting agreements and cash collateral | 44 | 156 |
Net amount of derivative liabilities after application of master netting agreements and cash collateral | 1 | 0 |
Over the Counter [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 2,233 | 3,411 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 3,081 | 2,929 |
Gross estimated fair value of derivative assets | (1,942) | (2,231) |
Gross estimated fair value of derivative liabilities | (1,942) | (2,231) |
Cash collateral on derivative assets | (257) | (653) |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | (31) | (429) |
Securities collateral on derivative liabilities | (1,138) | (698) |
Cleared [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 70 | 315 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 40 | 905 |
Gross estimated fair value of derivative assets | (1) | (165) |
Gross estimated fair value of derivative liabilities | (1) | (165) |
Cash collateral on derivative assets | (28) | (92) |
Cash collateral on derivative liabilities | (39) | (740) |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | $ 0 | $ 0 |
Derivatives (Credit Risk on Fre
Derivatives (Credit Risk on Freestanding Derivatives) (Details) - Derivatives Subject to Credit-Contingent Provisions - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Credit Derivatives [Line Items] | ||
Estimated fair value of derivatives in a net liability position (1) | $ 1,138 | $ 698 |
Fixed maturity securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided: | $ 1,414 | $ 777 |
Derivatives (Embedded Derivativ
Derivatives (Embedded Derivatives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||
Embedded derivatives within asset host contracts | $ 175 | $ 579 | |
Embedded derivatives within liability host contracts | 1,887 | 3,011 | |
Ceded guaranteed minimum benefits | Premiums, reinsurance and other receivables | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||
Embedded derivatives within asset host contracts | 227 | 628 | |
Direct guaranteed minimum benefits | Policyholder account balances [Member] | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||
Embedded derivatives within liability host contracts | 1,212 | 2,359 | |
Deferred Fixed Annuity [Member] | Policyholder account balances [Member] | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||
Embedded derivatives within liability host contracts | 1 | 0 | |
Assumed guaranteed minimum benefits | Policyholder account balances [Member] | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||
Embedded derivatives within liability host contracts | 0 | 460 | |
Deferred Fixed Annuity [Member] | Policyholder account balances [Member] | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||
Embedded derivatives within liability host contracts | 674 | ||
Fixed annuities with equity indexed returns | Policyholder account balances | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||
Embedded derivatives within liability host contracts | 192 | ||
Options embedded in debt or equity securities [Member] | Investments | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||
Embedded derivatives within asset host contracts | (52) | (49) | |
Nonperformance Risk [Member] | Ceded guaranteed minimum benefits | |||
Derivatives, Fair Value [Line Items] | |||
Net derivatives gains (losses) | $ 1 | $ (22) | $ (5) |
Derivatives (Changes in Estimat
Derivatives (Changes in Estimated Fair Value Related to Embedded Derivatives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Derivative Gain (Loss) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gains (losses) | $ 1,082 | $ (1,824) | $ (175) |
Policyholder benefits and claims | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gains (losses) | $ (16) | $ (4) | $ 21 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Estimated Fair Value Assets | $ 2,254 | $ 3,622 | |
Estimated Fair Value Liabilities | 3,129 | 3,883 | |
Maximum Amount of Future Payments under Credit Default Swaps | 1,900 | 1,913 | |
Estimated Fair Value of Credit Default Swaps | 40 | 28 | |
Excess cash collateral received on derivatives | 94 | 4 | |
Securities collateral received which the company is permitted to sell or repledge, amount that has been sold or repledged | 0 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net investment gains (losses) | $ (28) | $ (78) | $ 7 |
Derivative Instrument Detail [Abstract] | |||
Immateriality of cash flow effectiveness | not significant | not significant | not significant |
Excess securities collateral provided on derivatives | $ 5 | $ 25 | |
Over the Counter [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 257 | 653 | |
Excess securities collateral received on derivatives | (337) | (135) | |
Excess securities collateral provided on derivatives | (471) | (108) | |
Exchange Cleared [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 28 | 92 | |
Excess securities collateral provided on derivatives | (427) | (630) | |
Exchange Traded [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Excess securities collateral provided on derivatives | (118) | (453) | |
Direct And Assumed Guaranteed Minimum Benefit [Member] | Nonperformance Risk [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gains (losses) | 290 | 246 | $ 26 |
Ceded Guaranteed Minimum Benefit [Member] | Nonperformance Risk [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gains (losses) | 1 | (22) | $ (5) |
Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Estimated Fair Value Assets | 49 | 104 | |
Estimated Fair Value Liabilities | $ (8) | $ (49) |
Derivatives Derivatives (NQ, CF
Derivatives Derivatives (NQ, CF, FV) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Flow Hedge Ineffectiveness is Immaterial | not significant | not significant | not significant |
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | $ 12 | $ 1 | $ 3 |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (44) | (19) | (6) |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | $ (157) | $ 71 | 102 |
Maximum Length of Time Hedged in Cash Flow Hedge | 2 years | 3 years | |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $ 239 | $ 414 | |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (33) | (15) | (6) |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | 0 | 0 | 0 |
Fair Value Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (2) | (1) | (1) |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | 0 | 0 | 0 |
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (9) | (3) | 1 |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | (157) | 71 | 102 |
Net Derivative Gain (Loss) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (1,890) | (6,293) | (681) |
Net Derivative Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (1,904) | (6,334) | (687) |
Net Derivative Gain (Loss) [Member] | Fair Value Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 2 | 1 | 3 |
Net Derivative Gain (Loss) [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 12 | 40 | 3 |
Net investment income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 5 | (1) | (1) |
Net investment income | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (1) | (6) | (4) |
Net investment income | Fair Value Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Net investment income | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 6 | 5 | 3 |
Policyholder Benefit And Claim [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (349) | (328) | 1 |
Policyholder Benefit And Claim [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (349) | (328) | 1 |
Policyholder Benefit And Claim [Member] | Fair Value Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Policyholder Benefit And Claim [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | 0 | 0 | 0 |
Interest Rate Contract [Member] | Fair Value Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (2) | (1) | (1) |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | 0 | 0 | 0 |
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | 3 | 28 | 17 |
Interest Rate Contract [Member] | Net Derivative Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (324) | (2,872) | (67) |
Interest Rate Contract [Member] | Net Derivative Gain (Loss) [Member] | Fair Value Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 2 | 1 | 3 |
Interest Rate Contract [Member] | Net Derivative Gain (Loss) [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 2 | 35 | 3 |
Interest Rate Contract [Member] | Net investment income | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Interest Rate Contract [Member] | Net investment income | Fair Value Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Interest Rate Contract [Member] | Net investment income | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 6 | 5 | 3 |
Interest Rate Contract [Member] | Policyholder Benefit And Claim [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 8 | (4) | 5 |
Interest Rate Contract [Member] | Policyholder Benefit And Claim [Member] | Fair Value Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Interest Rate Contract [Member] | Policyholder Benefit And Claim [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (33) | (15) | (6) |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | 0 | 0 | 0 |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (9) | (3) | 1 |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | (160) | 43 | 85 |
Foreign Exchange Contract [Member] | Net Derivative Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (99) | 76 | 45 |
Foreign Exchange Contract [Member] | Net Derivative Gain (Loss) [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 10 | 5 | 0 |
Foreign Exchange Contract [Member] | Net investment income | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Foreign Exchange Contract [Member] | Net investment income | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Foreign Exchange Contract [Member] | Policyholder Benefit And Claim [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Foreign Exchange Contract [Member] | Policyholder Benefit And Claim [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Credit Risk Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | 0 | 0 | 0 |
Credit Risk Contract [Member] | Net Derivative Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 21 | 10 | (14) |
Credit Risk Contract [Member] | Net investment income | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Credit Risk Contract [Member] | Policyholder Benefit And Claim [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Equity Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | 0 | 0 | 0 |
Equity Contract [Member] | Net Derivative Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (2,584) | (1,724) | (476) |
Equity Contract [Member] | Net investment income | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (1) | (6) | (4) |
Equity Contract [Member] | Policyholder Benefit And Claim [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (341) | (320) | (25) |
Net Embedded Derivatives | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 |
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | 0 | 0 | 0 |
Net Embedded Derivatives | Net Derivative Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 1,082 | (1,824) | (175) |
Net Embedded Derivatives | Net investment income | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Net Embedded Derivatives | Policyholder Benefit And Claim [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (16) | $ (4) | $ 21 |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $ 64,991 | $ 61,388 |
Available-for-sale Securities, Equity Securities | 232 | 300 |
Short-term investments | 312 | 1,288 |
Mortgage loans at estimated fair value | 10,742 | 9,378 |
Derivative assets | 2,254 | 3,622 |
Net embedded derivatives within asset host contracts | 175 | 579 |
Separate account assets | 118,257 | 113,043 |
Liabilities [Abstract] | ||
Derivative liabilities | 3,129 | 3,883 |
Net embedded derivatives within liability host contracts | 1,887 | 3,011 |
Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 115 | 136 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | (52) | (49) |
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 64,991 | 61,388 |
Available-for-sale Securities, Equity Securities | 232 | 300 |
Short-term investments | 312 | 1,288 |
Mortgage loans at estimated fair value | 0 | 1,090 |
Derivative assets | 2,254 | 3,622 |
Net embedded derivatives within asset host contracts | 227 | 628 |
Separate account assets | 118,257 | 113,043 |
Total assets | 186,388 | 181,495 |
Liabilities [Abstract] | ||
Derivative liabilities | 3,129 | 3,883 |
Net embedded derivatives within liability host contracts | 1,887 | 3,011 |
Total liabilities | 5,027 | 6,917 |
Recurring [Member] | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,112 | 2,152 |
Liabilities [Abstract] | ||
Derivative liabilities | 837 | 2,300 |
Recurring [Member] | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 165 | 366 |
Liabilities [Abstract] | ||
Derivative liabilities | 118 | 15 |
Recurring [Member] | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 40 | 28 |
Liabilities [Abstract] | ||
Derivative liabilities | 1 | 0 |
Recurring [Member] | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 937 | 1,076 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,173 | 1,568 |
Recurring [Member] | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 115 | 136 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 11 | 23 |
Recurring [Member] | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 22,957 | 22,311 |
Recurring [Member] | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 16,292 | 13,090 |
Recurring [Member] | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,023 | 6,393 |
Recurring [Member] | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 1,309 | 1,162 |
Recurring [Member] | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,977 | 8,023 |
Recurring [Member] | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 4,181 | 3,945 |
Recurring [Member] | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 1,829 | 2,652 |
Recurring [Member] | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,423 | 3,812 |
Recurring [Member] | Level 1 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 8,304 | 6,210 |
Available-for-sale Securities, Equity Securities | 18 | 39 |
Short-term investments | 142 | 718 |
Mortgage loans at estimated fair value | 0 | 0 |
Derivative assets | 16 | 47 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 410 | 720 |
Total assets | 8,890 | 7,734 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Net embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring [Member] | Level 1 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 1 | 9 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 15 | 38 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 0 | 0 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 0 | 0 |
Recurring [Member] | Level 1 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 8,304 | 6,210 |
Recurring [Member] | Level 1 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 2 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 53,455 | 51,059 |
Available-for-sale Securities, Equity Securities | 90 | 124 |
Short-term investments | 156 | 568 |
Mortgage loans at estimated fair value | 0 | 1,090 |
Derivative assets | 2,079 | 3,388 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 117,842 | 112,313 |
Total assets | 173,737 | 168,678 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,691 | 2,742 |
Net embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 2,702 | 2,765 |
Recurring [Member] | Level 2 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,111 | 2,143 |
Liabilities [Abstract] | ||
Derivative liabilities | 837 | 1,689 |
Recurring [Member] | Level 2 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 165 | 366 |
Liabilities [Abstract] | ||
Derivative liabilities | 117 | 15 |
Recurring [Member] | Level 2 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 30 | 20 |
Liabilities [Abstract] | ||
Derivative liabilities | 1 | 0 |
Recurring [Member] | Level 2 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 773 | 859 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,736 | 1,038 |
Recurring [Member] | Level 2 | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 115 | 136 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 11 | 23 |
Recurring [Member] | Level 2 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 22,048 | 20,828 |
Recurring [Member] | Level 2 | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,988 | 6,880 |
Recurring [Member] | Level 2 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 5,935 | 5,485 |
Recurring [Member] | Level 2 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 1,304 | 1,162 |
Recurring [Member] | Level 2 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 6,989 | 6,703 |
Recurring [Member] | Level 2 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 4,181 | 3,928 |
Recurring [Member] | Level 2 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 1,723 | 2,428 |
Recurring [Member] | Level 2 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,287 | 3,645 |
Recurring [Member] | Level 3 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,232 | 4,119 |
Available-for-sale Securities, Equity Securities | 124 | 137 |
Short-term investments | 14 | 2 |
Mortgage loans at estimated fair value | 0 | 0 |
Derivative assets | 159 | 187 |
Net embedded derivatives within asset host contracts | 227 | 628 |
Separate account assets | 5 | 10 |
Total assets | 3,761 | 5,083 |
Liabilities [Abstract] | ||
Derivative liabilities | 438 | 1,141 |
Net embedded derivatives within liability host contracts | 1,887 | 3,011 |
Total liabilities | 2,325 | 4,152 |
Recurring [Member] | Level 3 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 611 |
Recurring [Member] | Level 3 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 1 | 0 |
Recurring [Member] | Level 3 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 10 | 8 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 149 | 179 |
Liabilities [Abstract] | ||
Derivative liabilities | 437 | 530 |
Recurring [Member] | Level 3 | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 0 | 0 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 0 | 0 |
Recurring [Member] | Level 3 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 909 | 1,483 |
Recurring [Member] | Level 3 | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 3 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 1,088 | 908 |
Recurring [Member] | Level 3 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 5 | 0 |
Recurring [Member] | Level 3 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 988 | 1,320 |
Recurring [Member] | Level 3 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 17 |
Recurring [Member] | Level 3 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 106 | 224 |
Recurring [Member] | Level 3 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $ 136 | $ 167 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Interest rate contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 0.00% | (0.44%) |
Interest rate contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 0.00% | 0.18% |
Credit contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit spreads | 0.00% | 0.97% |
Credit contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit spreads | 0.00% | 0.98% |
Equity market contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Correlation | 10.00% | 40.00% |
Volatility | 11.00% | 14.00% |
Equity market contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Correlation | 30.00% | 40.00% |
Volatility | 31.00% | 32.00% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Utilization rates | 0.00% | 0.00% |
Withdrawal rates | 0.25% | 0.25% |
Long-term equity volatilities | 17.40% | 17.40% |
Nonperformance risk spread | 0.64% | 0.04% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 1 - 10 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 0.25% | 0.25% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 11 - 20 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 1.50% | 2.00% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 21 - 116 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 1.50% | 2.00% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 0 - 40 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.00% | 0.00% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 41 - 60 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.04% | 0.04% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 61 - 115 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.26% | 0.26% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Utilization rates | 25.00% | 25.00% |
Withdrawal rates | 10.00% | 10.00% |
Long-term equity volatilities | 25.00% | 25.00% |
Nonperformance risk spread | 1.43% | 0.57% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 1 - 10 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 11 - 20 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 21 - 116 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 0 - 40 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.09% | 0.09% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 41 - 60 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.65% | 0.65% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 61 - 115 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 100.00% | 100.00% |
U.S. corporate and foreign corporate securities | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Offered Quotes Matrix Pricing | $ 93 | $ 18 |
Offered quotes | 37 | |
Quoted prices | 0 | 13 |
U.S. corporate and foreign corporate securities | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Offered Quotes Matrix Pricing | 142 | 138 |
Offered quotes | 109 | |
Quoted prices | 443 | 700 |
U.S. corporate and foreign corporate securities | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Offered Quotes Matrix Pricing | 111 | 104 |
Offered quotes | 85 | |
Quoted prices | 77 | 99 |
RMBS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 3 | 38 |
RMBS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 107 | 111 |
RMBS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 95 | 91 |
CMBS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 105 | 99 |
Quoted prices | 8 | 20 |
CMBS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 105 | 99 |
Quoted prices | 104 | 104 |
CMBS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 105 | 99 |
Quoted prices | 88 | 104 |
ABS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 100 | 98 |
Quoted prices | 100 | 94 |
ABS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 100 | 100 |
Quoted prices | 104 | 106 |
ABS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 100 | 99 |
Quoted prices | $ 101 | $ 100 |
Fair Value (Unobservable Input
Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Derivatives | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at January 1, | $ (954) | $ (232) | |
Total realized/unrealized gains (losses) included in net income (loss) | 92 | (703) | $ (74) |
Total realized/unrealized gains (losses) included in AOCI | 0 | 4 | 2 |
Purchases | 4 | 10 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 579 | (33) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Balance at December 31, | (279) | (954) | (232) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (52) | (687) | (64) |
Net Embedded Derivatives | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at January 1, | (2,383) | 32 | |
Total realized/unrealized gains (losses) included in net income (loss) | 1,078 | (1,842) | (133) |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (355) | (573) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Balance at December 31, | (1,660) | (2,383) | 32 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 966 | (1,952) | (248) |
U.S. corporate and foreign corporate | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 2,391 | 2,485 | |
Total realized/unrealized gains (losses) included in net income (loss) | (3) | (11) | 16 |
Total realized/unrealized gains (losses) included in AOCI | 131 | (25) | (123) |
Purchases | 441 | 603 | |
Sales | (223) | (448) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 178 | 120 | |
Transfers out of Level 3 | (918) | (333) | |
Balance at December 31, | 1,997 | 2,391 | 2,485 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 1 | 2 | 11 |
Structured securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 1,711 | 2,032 | |
Total realized/unrealized gains (losses) included in net income (loss) | 28 | 30 | 22 |
Total realized/unrealized gains (losses) included in AOCI | 52 | 20 | (14) |
Purchases | 107 | 601 | |
Sales | (535) | (604) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 11 | 12 | |
Transfers out of Level 3 | (144) | (380) | |
Balance at December 31, | 1,230 | 1,711 | 2,032 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 23 | 29 | 21 |
State and political subdivision | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 17 | 13 | |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 9 | |
Transfers out of Level 3 | (17) | (5) | |
Balance at December 31, | 0 | 17 | 13 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 |
Foreign government | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 0 | 26 | |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | (3) |
Purchases | 5 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | (26) | |
Balance at December 31, | 5 | 0 | 26 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 |
Equity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 137 | 97 | |
Total realized/unrealized gains (losses) included in net income (loss) | (3) | 0 | 11 |
Total realized/unrealized gains (losses) included in AOCI | 0 | (11) | (10) |
Purchases | 3 | 0 | |
Sales | (13) | (26) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 131 | |
Transfers out of Level 3 | 0 | (54) | |
Balance at December 31, | 124 | 137 | 97 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 |
Short-term investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 2 | 47 | |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 |
Purchases | 14 | 3 | |
Sales | (1) | (1) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | (1) | (47) | |
Balance at December 31, | 14 | 2 | 47 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 |
Separate account assets | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 10 | 146 | |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | (6) |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 |
Purchases | 2 | 2 | |
Sales | (4) | (134) | |
Issuances | 0 | 0 | |
Settlements | (1) | 0 | |
Transfers into Level 3 | 2 | 0 | |
Transfers out of Level 3 | (4) | (4) | |
Balance at December 31, | 5 | 10 | 146 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | $ 0 | $ 0 | $ 0 |
Fair Value (Fair Value Option f
Fair Value (Fair Value Option for Certain Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Carrying value at estimated fair value | $ 10,742 | $ 9,378 |
Contractual principal balance | 3,612 | 1,910 |
Consolidated Securitization Entities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid principal balance | 70 | 88 |
Difference between estimated fair value and unpaid principal balance | 45 | 48 |
Carrying value at estimated fair value | 115 | 136 |
Long-term Debt, Gross | 10 | 22 |
Contractual principal balance | 11 | 23 |
Difference between estimated fair value and contractual principal balance | $ 1 | $ 1 |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Policy loans | $ 1,523 | $ 1,517 |
Liabilities | ||
Collateral financing arrangement | 0 | 2,797 |
Separate account liabilities | 118,257 | 113,043 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | 10,871 | 9,387 |
Policy loans | 1,740 | 1,758 |
Real estate joint ventures | 22 | 44 |
Other limited partnership interests | 28 | 42 |
Premiums, reinsurance and other receivables | 2,113 | 3,283 |
Liabilities | ||
Policyholder account balances | 15,927 | 17,457 |
Long-term debt | 3,639 | 2,117 |
Collateral financing arrangement | 0 | 2,797 |
Other liabilities | 314 | 323 |
Separate account liabilities | 1,210 | 1,114 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Real estate joint ventures | 0 | 0 |
Other limited partnership interests | 0 | 0 |
Premiums, reinsurance and other receivables | 0 | 0 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 0 | 0 |
Collateral financing arrangement | 0 | 0 |
Other liabilities | 0 | 0 |
Separate account liabilities | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 781 | 780 |
Real estate joint ventures | 0 | 0 |
Other limited partnership interests | 0 | 0 |
Premiums, reinsurance and other receivables | 128 | 834 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 3,039 | 2,117 |
Collateral financing arrangement | 0 | 0 |
Other liabilities | 100 | 110 |
Separate account liabilities | 1,210 | 1,114 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 10,871 | 9,387 |
Policy loans | 959 | 978 |
Real estate joint ventures | 22 | 44 |
Other limited partnership interests | 28 | 42 |
Premiums, reinsurance and other receivables | 1,985 | 2,449 |
Liabilities | ||
Policyholder account balances | 15,927 | 17,457 |
Long-term debt | 600 | 0 |
Collateral financing arrangement | 0 | 2,797 |
Other liabilities | 214 | 213 |
Separate account liabilities | 0 | 0 |
Carrying Value | ||
Assets | ||
Mortgage loans | 10,627 | 9,242 |
Policy loans | 1,523 | 1,517 |
Real estate joint ventures | 5 | 12 |
Other limited partnership interests | 36 | 44 |
Premiums, reinsurance and other receivables | 1,758 | 2,789 |
Liabilities | ||
Policyholder account balances | 15,791 | 16,226 |
Long-term debt | 3,601 | 1,887 |
Collateral financing arrangement | 0 | 2,797 |
Other liabilities | 314 | 323 |
Separate account liabilities | $ 1,210 | $ 1,114 |
Fair Value (Recurring Fair V128
Fair Value (Recurring Fair Value Measurements) (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | $ (52) | $ (49) |
Long-term Debt and Collatera129
Long-term Debt and Collateral Financing Arrangement (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Jun. 22, 2017 | Jun. 16, 2017 | Apr. 28, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||
Long-term debt outstanding | $ 3,612 | $ 1,910 | |||
Variable Interest Entity | |||||
Debt Instrument [Line Items] | |||||
Long-term debt outstanding | $ 11 | 23 | |||
Senior Notes Due 2027 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 3.70% | 3.70% | |||
Long-term debt outstanding | $ 1,489 | 0 | |||
Senior Notes Due 2047 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 4.70% | 4.70% | |||
Long-term debt outstanding | $ 1,477 | 0 | |||
Surplus Notes Due 2038 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 8.595% | 8.595% | |||
Long-term debt outstanding | $ 0 | 750 | |||
Surplus Note Due 2032 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 5.13% | 5.13% | |||
Long-term debt outstanding | $ 0 | 750 | |||
Surplus Note Due 2033 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 6.00% | 6.00% | |||
Long-term debt outstanding | $ 0 | 350 | |||
Non-recourse Debt Due 2030 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 7.028% | ||||
Long-term debt outstanding | $ 35 | 37 | |||
Term Loan Due 2019 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt outstanding | $ 600 | 0 | |||
Debt instrument, basis spread on variable rate debt | 1.50% | ||||
Long-term Debt Excluding CSEs | |||||
Debt Instrument [Line Items] | |||||
Long-term debt outstanding | $ 3,601 | 1,887 | |||
MRSC Collateral Financing Arrangement | |||||
Debt Instrument [Line Items] | |||||
Long-term debt outstanding | $ 0 | $ 2,797 | |||
Debt instrument, basis spread on variable rate debt | 0.70% |
Long-term Debt and Collatera130
Long-term Debt and Collateral Financing Arrangement (Narrative) (Details) - USD ($) $ in Millions | Aug. 14, 2017 | Aug. 02, 2017 | Jul. 21, 2017 | Jun. 16, 2017 | Apr. 28, 2017 | Dec. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2017 | Jun. 22, 2017 |
Debt Instrument [Line Items] | |||||||||||
Long-term debt maturities, year one | $ 2 | ||||||||||
Long-term debt maturities, year two | 602 | ||||||||||
Long-term debt maturities, year three | 2 | ||||||||||
Long-term debt maturities, year four | 2 | ||||||||||
Long-term debt maturities, year five | 2 | ||||||||||
Long-term debt maturities, after year five | 3,000 | ||||||||||
Interest expense | 153 | $ 175 | $ 170 | ||||||||
Debt issuance costs capitalized | $ 23 | ||||||||||
Debt discount capitalized | 12 | ||||||||||
Decrease in notes receivable due from a related party due to exchange of debt for notes receivable due from a related party | $ 1,100 | ||||||||||
Credit facilities, commitment fee amount | 19 | 55 | 61 | ||||||||
Remaining assets held in trust pledged as collateral | 590 | $ 590 | |||||||||
Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facilities, maximum borrowing capacity | $ 2,000 | ||||||||||
Credit facilities, term | 5 years | ||||||||||
Credit facilities, outstanding balance | 0 | ||||||||||
Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facilities, maximum borrowing capacity | $ 600 | $ 3,000 | |||||||||
Credit facilities, term | 3 years | ||||||||||
Credit facilities, proceeds from drawdown | $ 100 | $ 500 | |||||||||
Credit facilities, unamortized debt issuance costs written off | $ 7 | ||||||||||
Credit facilities, outstanding balance | 600 | ||||||||||
BHF Credit Facilities | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facilities, maximum borrowing capacity | 2,600 | ||||||||||
Credit facilities, debt issuance costs capitalized | $ 16 | ||||||||||
Credit facilities, remaining borrowing capacity | 2,000 | ||||||||||
MRV Committed Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facilities, maximum borrowing capacity | 4,300 | ||||||||||
MRSC Committed Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest expense | 19 | 39 | 28 | ||||||||
Credit facilities, maximum borrowing capacity | 3,500 | ||||||||||
Credit facilities, outstanding balance | 2,800 | ||||||||||
Repayment of collateral financing arrangement | 2,800 | ||||||||||
Assets held in trust pledged as collateral | 2,800 | ||||||||||
BRCD Committed Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facilities, maximum borrowing capacity | $ 10,000 | ||||||||||
Credit facilities, term | 20 years | ||||||||||
Credit facilities, outstanding balance | $ 0 | ||||||||||
Credit facilities, remaining borrowing capacity | 8,300 | ||||||||||
Long-term Debt Excluding CSEs | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest expense | $ 135 | $ 133 | $ 134 | ||||||||
Senior Notes Due 2027 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 1,500 | ||||||||||
Debt instrument, stated interest rate | 3.70% | 3.70% | |||||||||
Senior Notes Due 2047 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 1,500 | ||||||||||
Debt instrument, stated interest rate | 4.70% | 4.70% | |||||||||
Surplus Notes Due 2038 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, stated interest rate | 8.595% | 8.595% | |||||||||
Decrease in long-term debt due to debt forgiveness | $ 750 | ||||||||||
MRD Surplus Notes Due 2032 And 2033 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Decrease in long-term debt due to exchange of debt for notes receivable due from a related party | $ 1,100 | ||||||||||
Surplus Note Due 2032 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, stated interest rate | 5.13% | 5.13% | |||||||||
Surplus Note Due 2033 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, stated interest rate | 6.00% | 6.00% |
Equity (Common Stock - Narrativ
Equity (Common Stock - Narrative) (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||||
Amount reclassified from shareholder's net investment to common stock and additional paid-in capital in connection with the Separation | $ 12,400 | $ 0 | ||
Class of Stock [Line Items] | ||||
Common stock, shares issued | 119,773,106 | 100,000 | ||
Common stock, shares outstanding | 119,773,106 | 119,773,106 | 100,000 | |
Spinoff | ||||
Class of Stock [Line Items] | ||||
Common stock, shares outstanding | 96,776,670 | |||
Spinoff | Affiliated Entity | ||||
Class of Stock [Line Items] | ||||
Common stock, shares issued | 119,673,106 | |||
Common stock, shares outstanding | 22,996,436 | |||
Spinoff | Parent shareholders' percentage | ||||
Class of Stock [Line Items] | ||||
Percentage of BHF common stock distributed by parent | 80.80% | 80.80% | ||
Spinoff | Parent percentage | ||||
Class of Stock [Line Items] | ||||
Percentage of BHF common stock retained by parent after distribution | 19.20% |
Equity (Capital Contributions &
Equity (Capital Contributions & Cash Distributions - Narrative) (Details) - USD ($) $ in Millions | Aug. 03, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 28, 2017 |
Capital contributions | $ (202) | ||||||||
Distribution to MetLife, Inc. | $ 1,798 | $ 0 | $ 0 | ||||||
Remaining assets held in trust pledged as collateral | $ 590 | $ 590 | |||||||
Dividends paid to a former affiliate | 0 | 556 | 699 | ||||||
Cash distributions to former affiliates related to a profit sharing agreement | 40 | 78 | 72 | ||||||
Spinoff | |||||||||
Distribution to MetLife, Inc. | $ 1,800 | ||||||||
Non-cash Capital Contribution | |||||||||
Capital contributions | $ 1,100 | $ 750 | $ 60 | 47 | 14 | ||||
Accrued capital contributions | 120 | $ 385 | |||||||
Cash Capital Contribution | |||||||||
Capital contributions | $ 202 | $ 1,600 | $ 10 |
Equity (Noncontrolling Interest
Equity (Noncontrolling Interests - Narrative) (Details) - USD ($) $ in Millions | Jun. 20, 2017 | Apr. 28, 2017 |
Noncontrolling Interest [Abstract] | ||
Noncontrolling interest, amounts represented by preferred stock | $ 50 | $ 15 |
Equity (Statutory Equity & Inco
Equity (Statutory Equity & Income and Dividend Restrictions - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory Accounting Practices [Line Items] | |||
Payments of Dividends | $ 0 | $ 556 | $ 699 |
Minimum | |||
Statutory Accounting Practices [Line Items] | |||
Description of Regulatory Capital Requirements under Insurance Regulations | in excess of 400% | ||
Brighthouse Reinsurance Company of Delaware [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Payments of Dividends | $ 535 | ||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 972 | 2,600 | |
Statutory Accounting Practices, Statutory Net Income Amount | (1,600) | ||
Brighthouse Life Insurance Company [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Payments of Dividends | 0 | 261 | |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 5,594 | 4,374 | |
Statutory Accounting Practices, Statutory Net Income Amount | (425) | 1,186 | (1,022) |
New England Life Insurance Company [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Payments of Dividends | 106 | 295 | |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 483 | 455 | |
Statutory Accounting Practices, Statutory Net Income Amount | $ 68 | $ 109 | $ 157 |
Equity (Dividend Restrictions)
Equity (Dividend Restrictions) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2018 | |
Statutory Accounting Practices [Line Items] | ||||
Payments of Dividends | $ 0 | $ 556 | $ 699 | |
Brighthouse Reinsurance Company of Delaware [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Payments of Dividends | 535 | |||
Brighthouse Life Insurance Company [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Payments of Dividends | 0 | 261 | ||
Brighthouse Life Insurance Company [Member] | Scenario, Forecast | ||||
Statutory Accounting Practices [Line Items] | ||||
Permitted w/o Approval | $ 84 | |||
New England Life Insurance Company [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Payments of Dividends | $ 106 | $ 295 | ||
New England Life Insurance Company [Member] | Scenario, Forecast | ||||
Statutory Accounting Practices [Line Items] | ||||
Permitted w/o Approval | $ 65 |
Equity (Statutory Net Income (L
Equity (Statutory Net Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Brighthouse Reinsurance Company of Delaware [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Prescribed Practice, Amount | $ 8,300 | ||
Statutory net income (loss) | (1,600) | ||
Statutory capital and surplus | $ 972 | $ 2,600 | |
Domestic Captive Life Reinsurance Subsidiaries [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | (363) | $ (372) | |
Metlife Reinsurance Company of Vermont [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Prescribed Practice, Amount | 3,000 | ||
MetLife Reinsurance Company of Delaware [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Prescribed Practice, Amount | $ 260 |
Equity (Components of Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0 | ||
Net investment gains (losses) | (28) | $ (78) | $ 7 |
Balance beginning of period | 1,265 | 1,523 | 2,715 |
OCI before reclassifications | 110 | (391) | (1,908) |
Deferred income tax benefit (expense) | (28) | 132 | 668 |
AOCI before reclassifications, net of income tax | 1,347 | 1,264 | 1,475 |
Amounts reclassified from AOCI | 42 | 0 | 74 |
Deferred income tax benefit (expense) | 287 | 1 | (26) |
Amounts reclassified from AOCI, net of income tax | 329 | 1 | 48 |
Balance end of period | 1,676 | 1,265 | 1,523 |
Unrealized Investment Gains (Losses), Net of Related Offsets | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | 1,044 | 1,322 | 2,555 |
OCI before reclassifications | 276 | (465) | (1,975) |
Deferred income tax benefit (expense) | (94) | 158 | 692 |
AOCI before reclassifications, net of income tax | 1,226 | 1,015 | 1,272 |
Amounts reclassified from AOCI | 60 | 44 | 77 |
Deferred income tax benefit (expense) | 286 | (15) | (27) |
Amounts reclassified from AOCI, net of income tax | 346 | 29 | 50 |
Balance end of period | 1,572 | 1,044 | 1,322 |
Unrealized Gains (Losses) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 306 | ||
Balance beginning of period | 268 | 251 | 190 |
OCI before reclassifications | (157) | 71 | 102 |
Deferred income tax benefit (expense) | 55 | (25) | (36) |
AOCI before reclassifications, net of income tax | 166 | 297 | 256 |
Amounts reclassified from AOCI | (18) | (45) | (7) |
Deferred income tax benefit (expense) | 6 | 16 | 2 |
Amounts reclassified from AOCI, net of income tax | (12) | (29) | (5) |
Balance end of period | 154 | 268 | 251 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | (31) | (32) | (15) |
OCI before reclassifications | 10 | 1 | (25) |
Deferred income tax benefit (expense) | (3) | 0 | 8 |
AOCI before reclassifications, net of income tax | (24) | (31) | (32) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Deferred income tax benefit (expense) | 0 | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 | 0 |
Balance end of period | (24) | (31) | (32) |
Defined Benefit Plans Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | (5) | ||
Balance beginning of period | (16) | (18) | (15) |
OCI before reclassifications | (19) | 2 | (10) |
Deferred income tax benefit (expense) | 14 | (1) | 4 |
AOCI before reclassifications, net of income tax | (21) | (17) | (21) |
Amounts reclassified from AOCI | 0 | 1 | 4 |
Deferred income tax benefit (expense) | (5) | 0 | (1) |
Amounts reclassified from AOCI, net of income tax | (5) | 1 | 3 |
Balance end of period | (26) | (16) | (18) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Investment Gains (Losses), Net of Related Offsets | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net investment gains (losses) | $ (15) | $ (51) | $ (79) |
Equity (Reclassifications Out o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment gains (losses) | $ (28) | $ (78) | $ 7 |
Net derivative gains (losses) | (1,620) | (5,851) | (326) |
Net investment income | 3,078 | 3,207 | 3,099 |
Income (loss) before provision for income tax | (615) | (4,705) | 1,462 |
Provision for income tax expense (benefit) | 237 | 1,766 | (343) |
Net income (loss) | (378) | (2,939) | 1,119 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | (329) | (1) | (48) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Investment Gains (Losses), Net of Related Offsets | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment gains (losses) | (15) | (51) | (79) |
Net derivative gains (losses) | (48) | 4 | (11) |
Net investment income | 3 | 3 | 13 |
Income (loss) before provision for income tax | (60) | (44) | (77) |
Provision for income tax expense (benefit) | (286) | 15 | 27 |
Net income (loss) | (346) | (29) | (50) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (loss) before provision for income tax | 18 | 45 | 7 |
Provision for income tax expense (benefit) | (6) | (16) | (2) |
Net income (loss) | 12 | 29 | 5 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate swaps | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net derivative gains (losses) | 0 | 33 | 1 |
Net investment income | 3 | 3 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate forwards | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net derivative gains (losses) | 2 | 2 | 2 |
Net investment income | 3 | 2 | 2 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Foreign currency swaps | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net derivative gains (losses) | 10 | 5 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Credit forwards [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment income | 0 | 0 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Plans Adjustment | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of net actuarial gains (losses) | 0 | (1) | (2) |
Amortization of prior service (costs) credit | 0 | 0 | 2 |
Income (loss) before provision for income tax | 0 | (1) | (4) |
Provision for income tax expense (benefit) | 5 | 0 | 1 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax | $ 5 | $ (1) | $ (3) |
Other Expenses (Other Expenses)
Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |||
Compensation | $ 287 | $ 400 | $ 455 |
Commissions | 806 | 637 | 715 |
Volume-related costs | 486 | 562 | 552 |
Interest Expense, Related Party | 36 | 22 | 17 |
Capitalization of DAC | (260) | (334) | (399) |
Interest expense on debt | 153 | 175 | 170 |
Goodwill impairment | 0 | 161 | 0 |
Premium taxes, licenses and fees | 64 | 63 | 76 |
Professional services | 292 | 89 | 65 |
Rent and related expenses | 13 | 47 | 56 |
Other | 606 | 462 | 413 |
Total other expenses | $ 2,483 | $ 2,284 | $ 2,120 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 8,000,000 | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 0 | |||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | 0 | $ 31,000,000 | $ 24,000,000 | |
Deferred Compensation Plan Assets | $ 2,000,000 | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% | ||
Assets for Plan Benefits, Defined Benefit Plan | $ 3,000,000 | $ 2,000,000 | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.75% | 5.75% | 5.75% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.90% | 4.30% | ||
Scenario, Forecast [Member] | Minimum | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 4.75% | |||
Scenario, Forecast [Member] | Maximum | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.75% | |||
Fair Value, Inputs, Level 3 [Member] | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets for Plan Benefits, Defined Benefit Plan | $ 18,000,000 | |||
Debt Securities [Member] | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 79.00% | ||
Qualified Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 0 |
Employee Benefit Plans (Obligat
Employee Benefit Plans (Obligations and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits | ||
Change in benefit obligations: | ||
Benefit obligations at January 1, | $ 219 | $ 213 |
Interest costs | 9 | 9 |
Plan participants’ contributions | 0 | 0 |
Net actuarial (gains) losses | 11 | 5 |
Change in benefits | 5 | 0 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (11) | (8) |
Benefit obligations at December 31, | 233 | 219 |
Change in plan assets | ||
Actual return on plan assets | 17 | 11 |
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 0 | 0 |
Defined Benefit Plan, Plan Assets, Benefits Paid | (11) | (8) |
Employer contributions | 4 | 4 |
Estimated fair value of plan assets at January 1, | 155 | 148 |
Estimated fair value of plan assets at December 31, | 165 | 155 |
Over (under) funded status at December 31, | (68) | (64) |
Amounts recognized in the consolidated balance sheets | ||
Other assets | 3 | 2 |
Other liabilities | (71) | (66) |
Net amount recognized | (68) | (64) |
Accumulated other comprehensive (income) loss: | ||
Net actuarial (gains) losses | 31 | 28 |
Prior service costs (credit) | 0 | 0 |
Accumulated other comprehensive (income) loss, before income tax | 31 | 28 |
Accumulated benefit obligation | 233 | 219 |
Other Postretirement Benefits Plan [Member] | ||
Change in benefit obligations: | ||
Benefit obligations at January 1, | 37 | 32 |
Interest costs | 2 | 2 |
Plan participants’ contributions | 3 | 2 |
Net actuarial (gains) losses | 6 | (2) |
Change in benefits | 0 | 9 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (8) | (6) |
Benefit obligations at December 31, | 40 | 37 |
Change in plan assets | ||
Actual return on plan assets | 0 | 0 |
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 3 | 2 |
Defined Benefit Plan, Plan Assets, Benefits Paid | (8) | (6) |
Employer contributions | 5 | 4 |
Estimated fair value of plan assets at January 1, | 0 | 0 |
Estimated fair value of plan assets at December 31, | 0 | 0 |
Over (under) funded status at December 31, | (40) | (37) |
Amounts recognized in the consolidated balance sheets | ||
Other assets | 0 | 0 |
Other liabilities | (40) | (37) |
Net amount recognized | (40) | (37) |
Accumulated other comprehensive (income) loss: | ||
Net actuarial (gains) losses | 3 | (3) |
Prior service costs (credit) | 0 | 0 |
Accumulated other comprehensive (income) loss, before income tax | 3 | (3) |
Unfunded Plan [Member] | Nonqualified Plan [Member] | ||
Change in benefit obligations: | ||
Benefit obligations at January 1, | 66 | |
Benefit obligations at December 31, | $ 71 | $ 66 |
Employee Benefit Plans (Paid Be
Employee Benefit Plans (Paid Benefit Obligations and Accumulated Benefit Obligations in Excess of Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accumulated benefit obligation [Abstract] | ||
Projected benefit obligations | $ 71 | $ 66 |
Accumulated benefit obligations | 71 | 66 |
Estimated fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans (Assumpt
Employee Benefit Plans (Assumptions in Determining Net Periodic Benefit Costs) (Details) - Pension Benefits | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assumptions used in determining net periodic benefit costs [Abstract] | |||
Weighted average discount rate | 4.30% | 4.42% | 4.10% |
Weighted average expected rate of return on plan assets | 5.75% | 5.75% | 5.75% |
Employee Benefit Plans (Actual
Employee Benefit Plans (Actual & Target Allocation of Fair Value by Asset Class) (Details) - Domestic Plan [Member] | Dec. 31, 2017 | Dec. 31, 2016 |
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 100.00% | |
Actual | 100.00% | 100.00% |
Fixed Maturity Securities | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 80.00% | |
Actual | 100.00% | 79.00% |
Equity securities | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 20.00% | |
Actual | 0.00% | 21.00% |
Employee Benefit Plans (Estimat
Employee Benefit Plans (Estimated Fair Value on a Recurring Basis) (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 165 | $ 155 | $ 148 |
Separate account assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 147 | 155 | |
Corporate fixed maturity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18 | 0 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45 | 72 | |
Level 1 | Separate account assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45 | 72 | |
Level 1 | Corporate fixed maturity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 102 | 83 | |
Level 2 | Separate account assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 102 | 83 | |
Level 2 | Corporate fixed maturity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18 | 0 | |
Level 3 | Separate account assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Corporate fixed maturity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 18 | $ 0 |
Employee Benefit Plans (Expecte
Employee Benefit Plans (Expected Gross Benefit Payments) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension Benefits | |
Defined benefit plan estimated future benefit payments [Abstract] | |
2,018 | $ 11 |
2,019 | 11 |
2,020 | 12 |
2,021 | 13 |
2,022 | 13 |
2023-2027 | 68 |
Other Postretirement Benefits Plan [Member] | |
Defined benefit plan estimated future benefit payments [Abstract] | |
2,018 | 4 |
2,019 | 4 |
2,020 | 4 |
2,021 | 4 |
2,022 | 3 |
2023-2027 | $ 14 |
Income Tax (Provision for Incom
Income Tax (Provision for Income Tax from Continuing Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 406 | $ (305) | $ 33 |
State and local | 6 | 0 | 0 |
Foreign | 18 | 0 | 0 |
Subtotal | 430 | (305) | 33 |
Deferred: | |||
Federal | (667) | (1,461) | 310 |
State and local | 0 | 0 | 0 |
Foreign | 0 | 0 | 0 |
Subtotal | (667) | (1,461) | 310 |
Current and Deferred: | |||
Provision for income tax expense (benefit) | $ (237) | $ (1,766) | $ 343 |
Income Tax (Reconciliation of I
Income Tax (Reconciliation of Income Tax Provision between US Statutory Rate and As Reported for Continuing Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0 | ||
Income tax expense benefit continuing operations income tax reconciliation | |||
Adjustments To Additional Paid In Capital, Capital Contribution | 1,088 | $ 0 | $ 0 |
Effective Income Tax Reconciliation, Tax Cuts and Jobs Act of 2017, Amount | (803) | 0 | 0 |
Tax provision at U.S. statutory rate | (215) | (1,647) | 511 |
Income (Loss) from Subsidiaries, Tax Expense (Benefit) | (138) | 0 | 0 |
Dividend received deduction | (130) | (123) | (144) |
Other tax credits | (30) | (18) | (13) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | 0 | 4 | 0 |
Other, net | (9) | 18 | (11) |
Provision for income tax expense (benefit) | (237) | $ (1,766) | $ 343 |
Accumulated Other Comprehensive Income (Loss) | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 301 |
Income Tax (Net Deferred Income
Income Tax (Net Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||
Deferred Tax Assets, Tax Credit Carryforwards | $ 202 | $ 199 |
Deferred Tax Assets, Operating Loss Carryforwards | 422 | |
Employee benefit | 3 | 54 |
Intangibles | 227 | 2 |
Deferred Tax Assets, Investments | 302 | 347 |
Other | 95 | 72 |
Deferred Tax Assets, Net | 1,251 | 674 |
Less: Valuation allowance | 11 | 0 |
Total net deferred income tax assets | 1,240 | 674 |
Deferred income tax liabilities: | ||
Policyholder liabilities and receivables | 819 | 525 |
Net unrealized investment gains | 459 | 712 |
DAC | 889 | 1,493 |
Total deferred income tax liabilities | 2,167 | 2,730 |
Deferred tax assets and liabilities [Abstract] | ||
Net deferred income tax asset (liability) | $ (927) | (2,056) |
Expiration Period Fourth Four Years By Deferred Tax Asset [Member] | ||
Deferred income tax assets: | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 0 |
Income Tax (Reconciliation of U
Income Tax (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at January 1, | $ 58 | $ 64 | $ 60 |
Additions for tax positions of prior years | 0 | 2 | 5 |
Reductions for tax positions of prior years | (4) | (9) | 0 |
Additions for tax positions of current year | 3 | 5 | 3 |
Reductions for tax positions of current year | (2) | 0 | 0 |
Settlements with tax authorities | (32) | (4) | (4) |
Balance at December 31, | 23 | 58 | 64 |
Unrecognized tax benefits that, if recognized would impact the effective rate | $ 23 | $ 58 | $ 53 |
Income Tax (Tax Credit Carryfor
Income Tax (Tax Credit Carryforwards) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Foreign Tax Authority | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | $ 14 |
Foreign Tax Authority | 2018-2022 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
Foreign Tax Authority | 2023-2027 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 14 |
Foreign Tax Authority | 2028-2032 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
Foreign Tax Authority | 2033-2037 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
Foreign Tax Authority | Indefinite | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
General business tax credit carryforward | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 10 |
General business tax credit carryforward | 2018-2022 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
General business tax credit carryforward | 2023-2027 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
General business tax credit carryforward | 2028-2032 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
General business tax credit carryforward | 2033-2037 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 10 |
General business tax credit carryforward | Indefinite | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
Other Tax Credit Carryforward [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 178 |
Other Tax Credit Carryforward [Member] | 2018-2022 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
Other Tax Credit Carryforward [Member] | 2023-2027 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
Other Tax Credit Carryforward [Member] | 2028-2032 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
Other Tax Credit Carryforward [Member] | 2033-2037 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
Other Tax Credit Carryforward [Member] | Indefinite | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | $ 178 |
Income Tax (Narrative) (Details
Income Tax (Narrative) (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 |
Effective Income Tax Reconciliation, Tax Cuts and Jobs Act of 2017, Amount | $ (803,000) | $ 0 | $ 0 | |||
Operating Loss Carryforwards | $ 2,000,000 | |||||
Federal statutory tax rate | 50.00% | |||||
Income tax benefit related to the separate account dividends received deduction | $ 137,000 | 101,000 | 154,000 | |||
Percent of cash savings included in tax receivable agreement | 86.00% | |||||
Other expenses | $ 2,483,000 | 2,284,000 | 2,120,000 | |||
Other net investment gains (losses) | (27,000) | (56,000) | 38,000 | |||
Provision for income tax expense (benefit) | (237,000) | (1,766,000) | 343,000 | |||
Deferred Tax Assets, Operating Loss Carryforwards | 422,000 | |||||
Due from Related Parties | $ 873,000 | |||||
Metlife Inc [Member] | ||||||
Related Party Transaction, Amounts of Transaction | $ 729,000 | |||||
Minimum | ||||||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2033 | |||||
Maximum | ||||||
True-up of the prior year tax return included in current year benefit related to the separate account dividends received deduction | $ 21,000 | $ (7,000) | 21,000 | $ (11,000) | ||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2037 | |||||
Expiration Period Fourth Four Years By Deferred Tax Asset [Member] | ||||||
Deferred Tax Assets, Operating Loss Carryforwards | 0 | 0 | ||||
Spinoff | ||||||
Due to Related Parties | $ 553,000 | |||||
Due to Affiliate | $ 331,000 | |||||
Parent Company [Member] | ||||||
Effective Income Tax Reconciliation, Tax Cuts and Jobs Act of 2017, Amount | (222,000) | |||||
Due to Related Parties | 16,745 | 333,148 | 16,745 | |||
Other expenses | 0 | 75,921 | ||||
Provision for income tax expense (benefit) | (306) | (50,897) | ||||
Due from Related Parties | 0 | 191,570 | 0 | |||
Parent Company [Member] | Spinoff | ||||||
Due to Related Parties | $ 0 | $ 0 | ||||
Alternative Minimum Tax adjustment [Member] | ||||||
Effective Income Tax Reconciliation, Tax Cuts and Jobs Act of 2017, Amount | $ (725,000) |
Earnings Per Common Share (Earn
Earnings Per Common Share (Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 04, 2017 | |
Earnings Per Share [Abstract] | ||||||||||||
Net income (loss) | $ (378) | $ (2,939) | $ 1,119 | |||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Weighted average common shares outstanding - basic | 119,773,106 | |||||||||||
Earnings per common share - basic | $ 5.57 | $ (7.87) | $ (3.16) | |||||||||
Common stock, shares outstanding | 119,773,106 | 100,000 | 119,773,106 | 100,000 | 119,773,106 | |||||||
Pro Forma | ||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Weighted average common shares outstanding - basic | 119,773,106 | 119,773,106 | ||||||||||
Earnings per common share - basic | $ 2.05 | $ (2.91) | $ (14.74) | $ (1.32) | $ (11.88) | $ 3.40 | $ (24.54) | $ 9.34 |
Contingencies, Commitments a154
Contingencies, Commitments and Guarantees (Insolvency Assessments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Assets: | ||
Premium tax offset for future discounted and undiscounted assessments | $ 14 | $ 13 |
Premium tax offsets currently available for paid assessments | 5 | 9 |
Other Liabilities: | ||
Insolvency assessments | 18 | 17 |
Insurance-related Assessments | ||
Loss Contingencies [Line Items] | ||
Total assets held for insolvency assessments | $ 19 | $ 22 |
Contingencies, Commitments a155
Contingencies, Commitments and Guarantees (Contingencies - Narrative) (Details) | Dec. 31, 2017USD ($) |
Minimum | |
Loss Contingencies | |
Aggregate reasonably possible losses in excess of amounts accrued for loss contingency matters as to which an estimate can be made | $ 0 |
Maximum | |
Loss Contingencies | |
Aggregate reasonably possible losses in excess of amounts accrued for loss contingency matters as to which an estimate can be made | $ 10,000,000 |
Contingencies, Commitments a156
Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Contingencies, Commitments and Guarantees (Textuals) [Abstract] | ||
Cumulative maximum indemnities and guarantees contractual limitation | $ 209 | |
Liabilities for indemnities, guarantees and commitments | 2 | $ 2 |
Minimum | ||
Contingencies, Commitments and Guarantees (Textuals) [Abstract] | ||
Indemnities and guarantees contractual limitation range | 1 | |
Maximum | ||
Contingencies, Commitments and Guarantees (Textuals) [Abstract] | ||
Indemnities and guarantees contractual limitation range | 203 | |
Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet commitments | 1,400 | 1,300 |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet commitments | $ 388 | 348 |
Affiliated Entity [Member] | Secured Demand Notes [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet commitments | 20 | |
Fair value of collateral transferred to custody accounts to secure certain demand notes | $ 25 |
Quarterly Results of Operati157
Quarterly Results of Operations (Unaudited) (Quarterly Results of Operations) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Results of Operations (Unaudited) | |||||||||||
Total revenues | $ 1,880 | $ 1,972 | $ 2,025 | $ 965 | $ (553) | $ 1,766 | $ (584) | $ 2,389 | $ 6,842 | $ 3,018 | $ 8,891 |
Total expenses | 2,102 | 2,096 | 1,704 | 1,555 | 2,224 | 2,018 | 1,656 | 1,825 | 7,457 | 7,723 | 7,429 |
Net income (loss) | $ 668 | $ (943) | $ 246 | $ (349) | $ (1,765) | $ (158) | $ (1,423) | $ 407 | (378) | (2,939) | 1,119 |
Net income (loss) | $ (378) | $ (2,939) | $ 1,119 | ||||||||
Basic earnings per common share (1) | |||||||||||
Earnings per common share - basic | $ 5.57 | $ (7.87) | $ (3.16) | ||||||||
Pro Forma | |||||||||||
Basic earnings per common share (1) | |||||||||||
Earnings per common share - basic | $ 2.05 | $ (2.91) | $ (14.74) | $ (1.32) | $ (11.88) | $ 3.40 | $ (24.54) | $ 9.34 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Due from Related Parties | $ 873 | ||
All Services and Transactions Except Broker Dealer Activities [Member] | |||
Related Party Transaction [Line Items] | |||
Due from Related Parties | 2,907 | $ 4,805 | |
Due to Related Parties | 2,178 | 7,763 | |
Income | (606) | (280) | $ (178) |
Expense | 378 | 332 | 802 |
Broker Dealer Activities | |||
Related Party Transaction [Line Items] | |||
Due from Related Parties | 0 | 21 | |
Due to Related Parties | 0 | 20 | |
Income | 43 | 216 | 235 |
Expense | $ 129 | $ 649 | $ 652 |
Related Party Transactions R159
Related Party Transactions Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 5 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 390,000 | $ 868,000 | $ 1,100,000 | |
Income Tax Expense (Benefit) | (237,000) | (1,766,000) | $ 343,000 | |
Due from Related Parties | 873,000 | |||
Spinoff | ||||
Related Party Transaction [Line Items] | ||||
Payable to former affiliate | 331,000 | |||
Parent Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 4,000 | 0 | ||
Income Tax Expense (Benefit) | $ (306) | (50,897) | ||
Due from Related Parties | $ 0 | $ 191,570 | $ 0 |
Consolidated Summary of Inve160
Consolidated Summary of Investments - Other Than Investments in Related Parties (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | $ 77,500 | |
Estimated Fair Value | 82,338 | |
Mortgage Loans on Real Estate | 10,742 | $ 9,378 |
Policy loans | 1,523 | 1,517 |
Real Estate Investments, Net | 433 | 215 |
Other limited partnership interests | 1,669 | 1,642 |
Short-term investments | 312 | 1,288 |
Other invested assets | 2,436 | $ 4,904 |
Fixed Maturities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 60,173 | |
Estimated Fair Value | 64,991 | |
Amount at Which Shown on Balance Sheet | 64,991 | |
U.S. government and agency | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 14,548 | |
Estimated Fair Value | 16,292 | |
Amount at Which Shown on Balance Sheet | 16,292 | |
State and political subdivision | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 3,635 | |
Estimated Fair Value | 4,181 | |
Amount at Which Shown on Balance Sheet | 4,181 | |
Public utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 2,145 | |
Estimated Fair Value | 2,447 | |
Amount at Which Shown on Balance Sheet | 2,447 | |
Foreign government | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 1,152 | |
Estimated Fair Value | 1,309 | |
Amount at Which Shown on Balance Sheet | 1,309 | |
All other corporate bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 25,510 | |
Estimated Fair Value | 27,190 | |
Amount at Which Shown on Balance Sheet | 27,190 | |
Total bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 46,990 | |
Estimated Fair Value | 51,419 | |
Amount at Which Shown on Balance Sheet | 51,419 | |
Mortgage-backed and asset-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 12,945 | |
Estimated Fair Value | 13,229 | |
Amount at Which Shown on Balance Sheet | 13,229 | |
Redeemable preferred stock | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 238 | |
Estimated Fair Value | 343 | |
Amount at Which Shown on Balance Sheet | 343 | |
Equity Securities, Investment Summary [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 212 | |
Estimated Fair Value | 232 | |
Amount at Which Shown on Balance Sheet | 232 | |
Non-redeemable preferred stock | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 129 | |
Estimated Fair Value | 138 | |
Amount at Which Shown on Balance Sheet | 138 | |
Industrial, miscellaneous and all other | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 83 | |
Estimated Fair Value | 92 | |
Amount at Which Shown on Balance Sheet | 92 | |
Public utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 0 | |
Estimated Fair Value | 2 | |
Amount at Which Shown on Balance Sheet | 2 | |
Held-for-investment | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Estimated Fair Value | 10,742 | |
Policy loans | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Estimated Fair Value | 1,523 | |
Real estate joint ventures | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Estimated Fair Value | 433 | |
Other limited partnership interests | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Estimated Fair Value | 1,669 | |
Short-term investments | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Estimated Fair Value | 312 | |
Other invested assets | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Estimated Fair Value | $ 2,436 |
Condensed Financial Informat161
Condensed Financial Information (Parent Company) (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Investments: | |||||
Available-for-sale Securities, Debt Securities | $ 64,991,000 | $ 61,388,000 | |||
Total investments | 82,338,000 | 80,632,000 | |||
Cash and Cash Equivalents, at Carrying Value | 1,857,000 | 5,228,000 | $ 1,570,000 | $ 1,603,000 | |
Accrued Investment Income Receivable | 601,000 | 693,000 | |||
Due from Related Parties | 873,000 | ||||
Current income tax recoverable | 740,000 | 778,000 | |||
Other Assets | 588,000 | 616,000 | |||
Total assets | 224,192,000 | 221,930,000 | |||
Liabilities | |||||
Deferred income tax liability | 927,000 | 2,056,000 | |||
Other Liabilities | 5,263,000 | 5,929,000 | |||
Total liabilities | 209,612,000 | 207,068,000 | |||
Stockholders’ Equity | |||||
Common stock, par value $0.01 per share; 1,000,000,000 and 100,000 shares authorized, respectively; 119,773,106 and 100,000 shares issued and outstanding, respectively | 1,000 | 0 | |||
Additional paid-in capital | 12,432,000 | 0 | |||
Retained earnings (deficit) | 406,000 | 0 | |||
Accumulated other comprehensive income (loss) | 1,676,000 | 1,265,000 | $ 1,523,000 | $ 2,715,000 | |
Total stockholders’ equity | 14,515,000 | 14,862,000 | |||
Total liabilities and stockholders’ equity | 224,192,000 | 221,930,000 | |||
Parent Company | |||||
Investments: | |||||
Available-for-sale Securities, Debt Securities | 236,946 | 0 | |||
Investment in subsidiaries | 17,810,226 | 0 | |||
Total investments | 18,047,172 | 0 | |||
Cash and Cash Equivalents, at Carrying Value | 325,528 | 1 | $ 0 | ||
Accrued Investment Income Receivable | 945 | 0 | |||
Due from Related Parties | 191,570 | 0 | |||
Current income tax recoverable | 20,714 | 306 | |||
Other Assets | 8,205 | 15,870 | |||
Total assets | 18,594,134 | 16,177 | |||
Liabilities | |||||
Long-term and short-term debt | 3,702,071 | 0 | |||
Payable to former affiliate | 333,148 | 16,745 | |||
Deferred income tax liability | 33,166 | 0 | |||
Other Liabilities | 10,083 | 0 | |||
Total liabilities | 4,078,468 | 16,745 | |||
Stockholders’ Equity | |||||
Common stock, par value $0.01 per share; 1,000,000,000 and 100,000 shares authorized, respectively; 119,773,106 and 100,000 shares issued and outstanding, respectively | 1,198 | 1 | |||
Additional paid-in capital | 12,432,449 | 0 | |||
Retained earnings (deficit) | 405,853 | (569) | |||
Accumulated other comprehensive income (loss) | 1,676,166 | 0 | |||
Total stockholders’ equity | 14,515,666 | (568) | |||
Total liabilities and stockholders’ equity | $ 18,594,134 | $ 16,177 |
Condensed Financial Informat162
Condensed Financial Information (Parent Company) (Condensed Balance Sheets - Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2017 | Aug. 04, 2017 | Dec. 31, 2016 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Amortized cost of fixed maturity securities available-for-sale | $ 60,173,000 | $ 58,715,000 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 1,000,000,000 | 100,000 | |
Common stock, shares issued | 119,773,106 | 100,000 | |
Common stock, shares outstanding | 119,773,106 | 119,773,106 | 100,000 |
Parent Company | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Amortized cost of fixed maturity securities available-for-sale | $ 238,948 | $ 0 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 1,000,000,000 | 100,000 | |
Common stock, shares issued | 119,773,106 | 100,000 | |
Common stock, shares outstanding | 119,773,106 | 100,000 |
Condensed Financial Informat163
Condensed Financial Information (Parent Company) (Condensed Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Net investment income | $ 3,078,000 | $ 3,207,000 | $ 3,099,000 | |||||||||
Other revenues | 651,000 | 736,000 | 422,000 | |||||||||
Net investment gains (losses) | (28,000) | (78,000) | 7,000 | |||||||||
Net derivative gains (losses) | (1,620,000) | (5,851,000) | (326,000) | |||||||||
Total revenues | $ 1,880,000 | $ 1,972,000 | $ 2,025,000 | $ 965,000 | $ (553,000) | $ 1,766,000 | $ (584,000) | $ 2,389,000 | 6,842,000 | 3,018,000 | 8,891,000 | |
Expenses | ||||||||||||
Other expenses | 2,483,000 | 2,284,000 | 2,120,000 | |||||||||
Total expenses | $ 2,102,000 | $ 2,096,000 | $ 1,704,000 | $ 1,555,000 | $ 2,224,000 | $ 2,018,000 | $ 1,656,000 | $ 1,825,000 | 7,457,000 | 7,723,000 | 7,429,000 | |
Income (loss) before provision for income tax | (615,000) | (4,705,000) | 1,462,000 | |||||||||
Provision for income tax expense (benefit) | (237,000) | (1,766,000) | 343,000 | |||||||||
Comprehensive income (loss) | 411,000 | $ (258,000) | $ (1,192,000) | |||||||||
Parent Company | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Equity in earnings (losses) of subsidiaries | $ 0 | (565,979) | ||||||||||
Net investment income | 0 | 5,573 | ||||||||||
Other revenues | 0 | 221,834 | ||||||||||
Net investment gains (losses) | 0 | (237) | ||||||||||
Net derivative gains (losses) | 0 | 1,729 | ||||||||||
Total revenues | 0 | (337,080) | ||||||||||
Expenses | ||||||||||||
Credit facility fees | 875 | 16,014 | ||||||||||
Other expenses | 0 | 75,921 | ||||||||||
Total expenses | 875 | 91,935 | ||||||||||
Income (loss) before provision for income tax | (875) | (429,015) | ||||||||||
Provision for income tax expense (benefit) | (306) | (50,897) | ||||||||||
Net income (loss) | (569) | (378,118) | ||||||||||
Comprehensive income (loss) | $ (569,000) | $ 33,000 |
Condensed Financial Informat164
Condensed Financial Information (Parent Company) (Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 5 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | ||||
Other, net | $ 129,000 | $ 132,000 | $ 29,000 | |
Net cash provided by (used in) operating activities | 3,396,000 | 3,736,000 | 4,631,000 | |
Cash flows from investing activities | ||||
Sales of fixed maturity securities | 17,214,000 | 46,130,000 | 38,885,000 | |
Purchases of fixed maturity securities | (18,782,000) | (39,687,000) | (44,058,000) | |
Net cash provided by (used in) investing activities | (3,915,000) | 4,674,000 | (7,042,000) | |
Cash flows from financing activities | ||||
Distribution to MetLife, Inc. | (1,798,000) | 0 | 0 | |
Net cash provided by (used in) financing activities | (2,852,000) | (4,752,000) | 2,380,000 | |
Change in cash and cash equivalents | (3,371,000) | 3,658,000 | (33,000) | |
Cash and cash equivalents, beginning of year | 5,228,000 | 1,570,000 | 1,603,000 | |
Cash and cash equivalents, end of year | $ 5,228,000 | 1,857,000 | 5,228,000 | 1,570,000 |
Supplemental disclosures of cash flow information | ||||
Net cash paid (received) for interest | 155,000 | 186,000 | 195,000 | |
Net cash paid (received) for income tax | (637,000) | 189,000 | $ (405,000) | |
Parent Company | ||||
Cash flows from operating activities | ||||
Net income (loss) | (569) | (378,118) | ||
Equity in (earnings) losses of subsidiaries | 0 | 565,979 | ||
Distribution from subsidiary | 0 | 50,000 | ||
Other, net | 569 | (252,310) | ||
Net cash provided by (used in) operating activities | 0 | (14,449) | ||
Cash flows from investing activities | ||||
Sales of fixed maturity securities | 0 | 509,814 | ||
Purchases of fixed maturity securities | 0 | (748,972) | ||
Capital contributions to subsidiaries | 0 | (1,300,000) | ||
Net cash provided by (used in) investing activities | 0 | (1,539,158) | ||
Cash flows from financing activities | ||||
Long-term and short-term debt issued | 0 | 3,724,375 | ||
Debt issuance costs | 0 | (39,187) | ||
Issuance of common stock | 1 | 0 | ||
Distribution to MetLife, Inc. | 0 | (1,798,000) | ||
Credit facility fees | 0 | (8,054) | ||
Net cash provided by (used in) financing activities | 1 | 1,879,134 | ||
Change in cash and cash equivalents | 1 | 325,527 | ||
Cash and cash equivalents, beginning of year | 0 | 1 | ||
Cash and cash equivalents, end of year | 1 | 325,528 | $ 1 | |
Supplemental disclosures of cash flow information | ||||
Net cash paid (received) for interest | 0 | 67,135 | ||
Cash received from MetLife, Inc. for income tax | 0 | (40) | ||
Income tax paid by Brighthouse Financial, Inc. | 0 | 888 | ||
Net cash paid (received) for income tax | $ 0 | $ 848 |
Condensed Financial Informat165
Condensed Financial Information (Parent Company) (Investment in Subsidiaries Footnote) (Details) - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Capital contributions | $ (202,000) | ||
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Capital contributions | $ 1,300,000 | ||
Distribution from subsidiary | $ 0 | $ 50,000 |
Condensed Financial Informat166
Condensed Financial Information (Parent Company) (Long-term and Short-term Debt Footnote) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 11, 2017 | Nov. 01, 2017 | Jun. 22, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||||||
Long-term debt outstanding | $ 3,612,000 | $ 1,910,000 | ||||
Interest expense | 153,000 | 175,000 | $ 170,000 | |||
Long-term debt maturities, year one | 2,000 | |||||
Long-term debt maturities, year two | 602,000 | |||||
Long-term debt maturities, year three | 2,000 | |||||
Long-term debt maturities, year four | 2,000 | |||||
Long-term debt maturities, year five | 2,000 | |||||
Long-term debt maturities, after year five | $ 3,000,000 | |||||
Senior Notes Due 2027 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt instrument, stated interest rate | 3.70% | 3.70% | ||||
Long-term debt outstanding | $ 1,489,000 | 0 | ||||
Senior Notes Due 2047 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt instrument, stated interest rate | 4.70% | 4.70% | ||||
Long-term debt outstanding | $ 1,477,000 | 0 | ||||
Term Loan Due 2019 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Long-term debt outstanding | $ 600,000 | 0 | ||||
Debt instrument, basis spread on variable rate debt | 1.50% | |||||
Parent Company | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Long-term debt outstanding | $ 3,566,000 | 0 | ||||
Short-term debt outstanding | 136,000 | 0 | $ 56,000 | $ 80,000 | ||
Long-term and short-term debt outstanding | 3,702,071 | 0 | ||||
Debt instrument, unamortized debt issuance costs and debt discount | 34,000 | |||||
Interest expense | 75,000 | |||||
Long-term debt maturities, year one | 136,000 | |||||
Long-term debt maturities, year two | 600,000 | |||||
Long-term debt maturities, year three | 0 | |||||
Long-term debt maturities, year four | 0 | |||||
Long-term debt maturities, year five | 0 | |||||
Long-term debt maturities, after year five | $ 3,000,000 | |||||
Weighted average interest rate | 0.73% | |||||
Maximum borrowing and lending limit applied to the respective insurance subsidiary's statutory admitted assets | 3.00% | |||||
Parent Company | Senior Notes Due 2027 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt instrument, stated interest rate | 3.70% | |||||
Long-term debt outstanding | $ 1,489,000 | 0 | ||||
Parent Company | Senior Notes Due 2047 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt instrument, stated interest rate | 4.70% | |||||
Long-term debt outstanding | $ 1,477,000 | 0 | ||||
Parent Company | Term Loan Due 2019 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Long-term debt outstanding | $ 600,000 | $ 0 | ||||
Debt instrument, basis spread on variable rate debt | 1.50% |
Condensed Financial Informat167
Condensed Financial Information Condensed Financial Information (Parent Company) (Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Percent of cash savings included in tax receivable agreement | 86.00% | |||
Effective Income Tax Reconciliation, Tax Cuts and Jobs Act of 2017, Amount | $ (803,000) | $ 0 | $ 0 | |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Due to Related Parties | 333,148 | 16,745 | ||
Effective Income Tax Reconciliation, Tax Cuts and Jobs Act of 2017, Amount | $ (222,000) | |||
Spinoff | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Due to Related Parties | $ 553,000 | |||
Spinoff | Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Due to Related Parties | $ 0 |
Condensed Financial Informat168
Condensed Financial Information Condensed Financial Information (Parent Company) (Related Party Transactions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||
Due to Related Parties | $ 390,000 | $ 868,000 | $ 1,100,000 |
Due from Related Parties | 873,000 | ||
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Due to Related Parties | 4,000 | 0 | |
Due from Related Parties | $ 191,570 | $ 0 |
Consolidated Supplementary I169
Consolidated Supplementary Insurance Information (Balance Sheet Items) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | $ 6,286 | $ 6,293 | $ 6,390 |
Future Policy Benefits and Other Policy-Related Balances | 39,601 | 36,417 | |
Policyholder account balances | 37,783 | 37,526 | |
Unearned Premiums | 19 | 20 | |
Unearned Revenue | 469 | 531 | |
Annuities | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 5,047 | 4,878 | |
Future Policy Benefits and Other Policy-Related Balances | 8,347 | 7,724 | |
Policyholder account balances | 25,934 | 25,431 | |
Unearned Premiums | 0 | 0 | |
Unearned Revenue | 96 | 89 | |
Life | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 1,106 | 1,261 | |
Future Policy Benefits and Other Policy-Related Balances | 5,200 | 4,951 | |
Policyholder account balances | 3,342 | 3,588 | |
Unearned Premiums | 14 | 14 | |
Unearned Revenue | 278 | 363 | |
Run-off | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 5 | 6 | |
Future Policy Benefits and Other Policy-Related Balances | 18,521 | 16,313 | |
Policyholder account balances | 8,506 | 8,506 | |
Unearned Premiums | 0 | 0 | |
Unearned Revenue | 95 | 79 | |
Corporate & Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 128 | 148 | |
Future Policy Benefits and Other Policy-Related Balances | 7,533 | 7,429 | |
Policyholder account balances | 1 | 1 | |
Unearned Premiums | 5 | 6 | |
Unearned Revenue | $ 0 | $ 0 |
Consolidated Supplementary I170
Consolidated Supplementary Insurance Information (Income Statement Items) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | $ 4,761 | $ 5,004 | $ 5,689 |
Net Investment Income | 3,078 | 3,207 | 3,099 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 4,747 | 5,068 | 4,528 |
Amortization of DAC and VOBA | 227 | 371 | 781 |
Other Expenses | 2,483 | 2,284 | 2,120 |
Annuities | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 3,000 | 3,259 | 3,856 |
Net Investment Income | 1,252 | 1,329 | 1,156 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 2,130 | 2,347 | 2,359 |
Amortization of DAC and VOBA | (23) | (896) | 523 |
Other Expenses | 1,565 | 1,248 | 1,301 |
Life | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 951 | 739 | 752 |
Net Investment Income | 327 | 350 | 352 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 820 | 681 | 650 |
Amortization of DAC and VOBA | 223 | 282 | 169 |
Other Expenses | 265 | 273 | 276 |
Run-off | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 714 | 878 | 793 |
Net Investment Income | 1,358 | 1,341 | 1,461 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 1,735 | 1,953 | 1,301 |
Amortization of DAC and VOBA | 7 | 961 | 65 |
Other Expenses | 279 | 437 | 284 |
Corporate & Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 96 | 128 | 288 |
Net Investment Income | 141 | 187 | 130 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 62 | 87 | 218 |
Amortization of DAC and VOBA | 20 | 24 | 24 |
Other Expenses | $ 374 | $ 326 | $ 259 |
Consolidated Reinsurance (Conso
Consolidated Reinsurance (Consolidated Reinsurance) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct Premiums, Life Insurance in Force | $ 629,367 | $ 653,270 | $ 637,410 |
Life Insurance in Force, Ceded | 206,304 | 465,841 | 483,569 |
Life Insurance in Force, Assumed | 6,879 | 7,006 | 94,863 |
Premiums, Net, Life Insurance in Force | $ 429,942 | $ 194,435 | $ 248,704 |
Life Insurance in Force Premiums, Percentage Assumed to Net | 1.60% | 3.60% | 38.10% |
Consolidated Reinsurance | |||
Gross Amount | $ 1,795 | $ 2,296 | $ 2,472 |
Reinsurance ceded | 943 | 1,153 | 1,090 |
Assumed | 11 | 79 | 297 |
Net premiums | $ 863 | $ 1,222 | $ 1,679 |
% Amount Assumed to Net | 1.30% | 6.50% | 17.70% |
Life insurance (1) | |||
Consolidated Reinsurance | |||
Gross Amount | $ 1,557 | $ 2,067 | $ 2,229 |
Reinsurance ceded | 711 | 929 | 855 |
Assumed | 11 | 76 | 288 |
Net premiums | $ 857 | $ 1,214 | $ 1,662 |
% Amount Assumed to Net | 1.30% | 6.30% | 17.30% |
Accident and Health Insurance Product Line [Member] | |||
Consolidated Reinsurance | |||
Gross Amount | $ 238 | $ 229 | $ 243 |
Reinsurance ceded | 232 | 224 | 235 |
Assumed | 0 | 3 | 9 |
Net premiums | $ 6 | $ 8 | $ 17 |
% Amount Assumed to Net | 0.00% | 37.50% | 52.90% |
Consolidated Reinsurance Consol
Consolidated Reinsurance Consolidated Reinsurance (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Life Insurance in Force, Ceded | $ 206,304 | $ 465,841 | $ 483,569 |
Life Insurance in Force, Assumed | 6,879 | 7,006 | 94,863 |
Ceded Premiums Earned | 943 | 1,153 | 1,090 |
Reinsurance assumed | 11 | 79 | 297 |
Affiliated Entity [Member] | |||
Life Insurance in Force, Ceded | 17,100 | 266,400 | 278,500 |
Life Insurance in Force, Assumed | 6,900 | 7,000 | 86,400 |
Life insurance (1) | |||
Ceded Premiums Earned | 711 | 929 | 855 |
Reinsurance assumed | 11 | 76 | 288 |
Life insurance (1) | Affiliated Entity [Member] | |||
Ceded Premiums Earned | 537 | 766 | 687 |
Reinsurance assumed | $ 11 | $ 34 | $ 227 |