Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity File Number | 001-37905 | |
Entity Central Index Key | 0001685040 | |
Entity Registrant Name | Brighthouse Financial, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-3846992 | |
Entity Address, Address Line One | 11225 North Community House Road | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28277 | |
City Area Code | 980 | |
Local Phone Number | 365-7100 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 60,755,949 | |
Common Stock, par value $0.01 per share | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | BHF | |
Security Exchange Name | NASDAQ | |
Depositary Shares, each representing a 1/1,000th interest in a share of 6.600% Non-Cumulative Preferred Stock, Series A | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of 6.600% Non-Cumulative Preferred Stock, Series A | |
Trading Symbol | BHFAP | |
Security Exchange Name | NASDAQ | |
Depositary Shares, each representing a 1/1,000th interest in a share of 6.750% Non-Cumulative Preferred Stock, Series B | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of 6.750% Non-Cumulative Preferred Stock, Series B | |
Trading Symbol | BHFAO | |
Security Exchange Name | NASDAQ | |
Depositary Shares, each representing a 1/1,000th interest in a share of 5.375% Non-Cumulative Preferred Stock, Series C | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of 5.375% Non-Cumulative Preferred Stock, Series C | |
Trading Symbol | BHFAN | |
Security Exchange Name | NASDAQ | |
Depositary Shares, each representing a 1/1,000th interest in a share of 4.625% Non-Cumulative Preferred Stock, Series D | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of 4.625% Non-Cumulative Preferred Stock, Series D | |
Trading Symbol | BHFAM | |
Security Exchange Name | NASDAQ | |
6.250% Junior Subordinated Debentures due 2058 | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 6.250% Junior Subordinated Debentures due 2058 | |
Trading Symbol | BHFAL | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $88,176 and $87,131, respectively; allowance for credit losses of $45 and $21, respectively) | $ 80,581 | $ 80,991 |
Equity securities, at estimated fair value | 85 | 102 |
Mortgage loans (net of allowance for credit losses of $155 and $137, respectively) | 22,641 | 22,508 |
Policy loans | 1,470 | 1,331 |
Limited partnerships and limited liability companies | 4,938 | 4,946 |
Short-term investments, principally at estimated fair value | 1,390 | 1,169 |
Other invested assets, principally at estimated fair value (net of allowance for credit losses of $12 and $13, respectively) | 4,194 | 4,409 |
Total investments | 115,299 | 115,456 |
Cash and cash equivalents | 4,441 | 3,851 |
Accrued investment income | 1,169 | 1,183 |
Premiums, reinsurance and other receivables (net of allowance for credit losses of $3 and $3, respectively) | 20,043 | 19,761 |
Deferred policy acquisition costs and value of business acquired | 4,791 | 4,872 |
Current income tax recoverable | 28 | 27 |
Deferred income tax asset | 2,087 | 1,893 |
Market risk benefit assets | 916 | 656 |
Other assets | 404 | 370 |
Separate account assets | 88,260 | 88,271 |
Total assets | 237,438 | 236,340 |
Liabilities | ||
Future policy benefits | 31,886 | 32,569 |
Policyholder account balances | 85,865 | 81,068 |
Market risk benefit liabilities | 8,708 | 10,323 |
Other policy-related balances | 3,796 | 3,836 |
Payables for collateral under securities loaned and other transactions | 3,906 | 3,670 |
Long-term debt | 3,155 | 3,156 |
Other liabilities | 7,656 | 8,439 |
Separate account liabilities | 88,260 | 88,271 |
Total liabilities | 233,232 | 231,332 |
Contingencies, Commitments and Guarantees (Note 13) | ||
Brighthouse Financial, Inc.’s stockholders’ equity: | ||
Preferred stock, par value $0.01 per share; $1,753 aggregate liquidation preference | 0 | 0 |
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 123,434,240 and 122,818,568 shares issued, respectively; 61,243,957 and 63,503,355 shares outstanding, respectively | 1 | 1 |
Additional paid-in capital | 13,972 | 14,004 |
Retained earnings (deficit) | (1,966) | (1,507) |
Treasury stock, at cost; 62,190,283 and 59,315,213 shares, respectively | (2,447) | (2,309) |
Accumulated other comprehensive income (loss) | (5,419) | (5,246) |
Total Brighthouse Financial, Inc.’s stockholders’ equity | 4,141 | 4,943 |
Noncontrolling interests | 65 | 65 |
Total equity | 4,206 | 5,008 |
Total liabilities and equity | $ 237,438 | $ 236,340 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $ 88,176 | $ 87,131 |
Fixed maturity securities, allowance for credit losses | 45 | 21 |
Mortgage loans valuation allowances | 155 | 137 |
Leveraged leases, allowance for credit losses | 12 | 13 |
Premiums, reinsurance and other, allowance for credit losses | $ 3 | $ 3 |
Equity | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, aggregate liquidation preference | $ 1,753 | $ 1,753 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 123,434,240 | 122,818,568 |
Common stock, shares outstanding | 61,243,957 | 63,503,355 |
Treasury Stock, Common, Shares | 62,190,283 | 59,315,213 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues | ||||
Premiums | $ 181 | $ 211 | $ 383 | $ 408 |
Universal life and investment-type product policy fees | 580 | 601 | 1,016 | 1,207 |
Net investment income | 1,307 | 1,196 | 2,561 | 2,255 |
Other revenues | 141 | 130 | 286 | 223 |
Net investment gains (losses) | (120) | (64) | (162) | (160) |
Net derivative gains (losses) | (662) | (1,811) | (2,583) | (2,386) |
Total revenues | 1,427 | 263 | 1,501 | 1,547 |
Expenses | ||||
Policyholder benefits and claims (including liability remeasurement gains (losses) of $0, $0, $0 and $0, respectively) | 642 | 689 | 1,610 | 1,376 |
Interest credited to policyholder account balances | 509 | 452 | 1,011 | 874 |
Amortization of deferred policy acquisition costs and value of business acquired | 150 | 157 | 301 | 313 |
Change in market risk benefits | (356) | (1,300) | (1,796) | (1,106) |
Other expenses | 468 | 502 | 975 | 980 |
Total expenses | 1,413 | 500 | 2,101 | 2,437 |
Income (loss) before provision for income tax | 14 | (237) | (600) | (890) |
Provision for income tax expense (benefit) | (20) | (62) | (143) | (218) |
Net income (loss) | 34 | (175) | (457) | (672) |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 2 | 2 |
Net income (loss) attributable to Brighthouse Financial, Inc. | 34 | (175) | (459) | (674) |
Less: Preferred stock dividends | 25 | 25 | 51 | 51 |
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | 9 | (200) | (510) | (725) |
Comprehensive income (loss) | 28 | (768) | (630) | (447) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 2 | 2 |
Comprehensive income (loss) attributable to Brighthouse Financial, Inc. | $ 28 | $ (768) | $ (632) | $ (449) |
Earnings per common share | ||||
Basic | $ 0.12 | $ (3.01) | $ (8.17) | $ (10.77) |
Diluted | $ 0.12 | $ (3.01) | $ (8.17) | $ (10.77) |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Liability for Future Policy Benefit, Remeasurement Gain (Loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Treasury Stock, Common | Accumulated Other Comprehensive Income (Loss) | Brighthouse Financial, Inc.’s Stockholders’ Equity | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2022 | $ 5,598 | $ 0 | $ 1 | $ 14,075 | $ (395) | $ (2,042) | $ (6,106) | $ 5,533 | $ 65 |
Treasury stock acquired in connection with share repurchases | (62) | (62) | (62) | ||||||
Share-based compensation | (10) | 0 | 5 | (15) | (10) | ||||
Adjustments to Additional Paid in Capital, Dividends in Excess of Retained Earnings | (26) | (26) | (26) | ||||||
Change in noncontrolling interests | (2) | 0 | (2) | ||||||
Net Income (Loss) Attributable to Parent | (499) | (499) | |||||||
Net income (loss) | (497) | 2 | |||||||
Other comprehensive income (loss), net of income tax | 818 | 818 | 818 | ||||||
Ending Balance at Mar. 31, 2023 | 5,819 | 0 | 1 | 14,054 | (894) | (2,119) | (5,288) | 5,754 | 65 |
Beginning Balance at Dec. 31, 2022 | 5,598 | 0 | 1 | 14,075 | (395) | (2,042) | (6,106) | 5,533 | 65 |
Net Income (Loss) Attributable to Parent | (674) | ||||||||
Net income (loss) | (672) | ||||||||
Ending Balance at Jun. 30, 2023 | 4,972 | 0 | 1 | 14,039 | (1,069) | (2,183) | (5,881) | 4,907 | 65 |
Beginning Balance at Mar. 31, 2023 | 5,819 | 0 | 1 | 14,054 | (894) | (2,119) | (5,288) | 5,754 | 65 |
Treasury stock acquired in connection with share repurchases | (64) | (64) | (64) | ||||||
Share-based compensation | 10 | 0 | 10 | 0 | 10 | ||||
Adjustments to Additional Paid in Capital, Dividends in Excess of Retained Earnings | (25) | (25) | (25) | ||||||
Change in noncontrolling interests | 0 | 0 | 0 | ||||||
Net Income (Loss) Attributable to Parent | (175) | (175) | (175) | ||||||
Net income (loss) | (175) | 0 | |||||||
Other comprehensive income (loss), net of income tax | (593) | (593) | (593) | ||||||
Ending Balance at Jun. 30, 2023 | 4,972 | 0 | 1 | 14,039 | (1,069) | (2,183) | (5,881) | 4,907 | 65 |
Beginning Balance at Dec. 31, 2023 | 5,008 | 0 | 1 | 14,004 | (1,507) | (2,309) | (5,246) | 4,943 | 65 |
Treasury stock acquired in connection with share repurchases | (62) | (62) | (62) | ||||||
Share-based compensation | 0 | 0 | 11 | (11) | 0 | ||||
Adjustments to Additional Paid in Capital, Dividends in Excess of Retained Earnings | (26) | (26) | (26) | ||||||
Change in noncontrolling interests | (2) | 0 | (2) | ||||||
Net Income (Loss) Attributable to Parent | (493) | (493) | |||||||
Net income (loss) | (491) | 2 | |||||||
Other comprehensive income (loss), net of income tax | (167) | (167) | (167) | ||||||
Ending Balance at Mar. 31, 2024 | 4,260 | 0 | 1 | 13,989 | (2,000) | (2,382) | (5,413) | 4,195 | 65 |
Beginning Balance at Dec. 31, 2023 | 5,008 | 0 | 1 | 14,004 | (1,507) | (2,309) | (5,246) | 4,943 | 65 |
Net Income (Loss) Attributable to Parent | (459) | ||||||||
Net income (loss) | (457) | ||||||||
Ending Balance at Jun. 30, 2024 | 4,206 | 0 | 1 | 13,972 | (1,966) | (2,447) | (5,419) | 4,141 | 65 |
Beginning Balance at Mar. 31, 2024 | 4,260 | 0 | 1 | 13,989 | (2,000) | (2,382) | (5,413) | 4,195 | 65 |
Treasury stock acquired in connection with share repurchases | (64) | (64) | (64) | ||||||
Share-based compensation | 7 | 0 | 8 | (1) | 7 | ||||
Adjustments to Additional Paid in Capital, Dividends in Excess of Retained Earnings | (25) | (25) | (25) | ||||||
Change in noncontrolling interests | 0 | 0 | 0 | ||||||
Net Income (Loss) Attributable to Parent | 34 | 34 | 34 | ||||||
Net income (loss) | 34 | 0 | |||||||
Other comprehensive income (loss), net of income tax | (6) | (6) | (6) | ||||||
Ending Balance at Jun. 30, 2024 | $ 4,206 | $ 0 | $ 1 | $ 13,972 | $ (1,966) | $ (2,447) | $ (5,419) | $ 4,141 | $ 65 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by (used in) operating activities | $ (196) | $ (628) |
Cash flows from investing activities | ||
Sales, maturities and repayments of fixed maturity securities | 5,550 | 2,970 |
Sales, maturities and repayments of equity securities | 32 | 10 |
Sales, maturities and repayments of mortgage loans | 685 | 574 |
Sales, maturities and repayments of limited partnerships and limited liability companies | 155 | 81 |
Purchases of fixed maturity securities | (6,423) | (4,186) |
Purchases of equity securities | (2) | (6) |
Purchases of mortgage loans | (886) | (342) |
Purchases of limited partnerships and limited liability companies | (153) | (254) |
Cash received in connection with freestanding derivatives | 5,627 | 2,634 |
Cash paid in connection with freestanding derivatives | (5,743) | (3,024) |
Net change in policy loans | (138) | (6) |
Net change in short-term investments | (220) | (22) |
Net change in other invested assets | (191) | (88) |
Net cash provided by (used in) investing activities | (1,707) | (1,659) |
Cash flows from financing activities | ||
Policyholder account balances: Deposits | 20,632 | 11,670 |
Policyholder account balances: Withdrawals | (18,009) | (9,086) |
Net change in payables for collateral under securities loaned and other transactions | 236 | (427) |
Long-term debt repaid | (1) | (1) |
Dividends on preferred stock | (51) | (51) |
Treasury stock acquired in connection with share repurchases | (126) | (126) |
Financing element on certain derivative instruments and other derivative related transactions, net | (175) | (54) |
Other, net | (13) | (16) |
Net cash provided by (used in) financing activities | 2,493 | 1,909 |
Change in cash, cash equivalents and restricted cash | 590 | (378) |
Cash, cash equivalents and restricted cash, beginning of period | 3,851 | 4,115 |
Cash, cash equivalents and restricted cash, end of period | 4,441 | 3,737 |
Supplemental disclosures of cash flow information | ||
Net cash paid (received) for interest | 75 | 75 |
Net cash paid (received) for income tax | $ 6 | $ (3) |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business Brighthouse Financial, Inc. (“BHF” and together with its subsidiaries, “Brighthouse Financial” or the “Company”) is a holding company formed in 2016 to own the legal entities that historically operated a substantial portion of MetLife, Inc.’s former retail segment until becoming a separate, publicly-traded company in August 2017. Brighthouse Financial is one of the largest providers of annuity and life insurance products in the U.S. through multiple independent distribution channels and marketing arrangements with a diverse network of distribution partners. 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. 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 interim condensed 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 accompanying interim condensed consolidated financial statements include the accounts of Brighthouse Financial, as well as partnerships and limited liability companies (“LLC”) that the Company controls. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for investments in limited partnerships and LLCs 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. When the Company has virtually no influence over the investee’s operations, the investment is carried at fair value. The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2023 consolidated balance sheet data was derived from audited consolidated financial statements included in Brighthouse Financial, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2023 Annual Report. Adoption of New Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“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. There were no significant ASUs adopted during the period ended June 30, 2024. Future Adoption of New Accounting Pronouncements In December 2023, the FASB issued new guidance on Income Tax Disclosures (ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures) . This ASU updates the required income tax disclosures to include disclosure of income taxes paid disaggregated by jurisdiction and greater disaggregation of information in the required rate reconciliation. This ASU is effective for fiscal years starting January 1, 2025, and will be applied on a prospective basis. The Company is currently evaluating the impact of this guidance on its financial statements. In November 2023, the FASB issued new guidance on Segment Reporting Disclosures (ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures) . This ASU updates reportable segment disclosures primarily through enhanced disclosures about significant segment expenses. This ASU does not change how a company identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. This ASU is effective for fiscal years starting January 1, 2024, and for interim periods starting January 1, 2025, and will be applied on a retrospective basis. The Company is currently evaluating the impact of this guidance on its financial statements. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
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 consists of 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 consists of insurance products, including term, universal, whole and variable life products designed to address policyholders’ needs for financial security and protected wealth transfer, which may be on a tax-advantaged basis. Run-off The Run-off segment consists primarily of products that are no longer actively sold and are separately managed, including universal life with secondary guarantees (“ULSG”), structured settlements, pension risk transfer contracts, certain company-owned life insurance policies and certain funding agreements. Corporate & Other Corporate & Other contains the excess capital not allocated to the segments and interest expense related to the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes long-term care business reinsured through 100% quota share reinsurance agreements and activities related to funding agreements associated with the Company’s institutional spread margin business. Financial Measures and Segment Accounting Policies Adjusted earnings is a financial measure used by management to evaluate performance 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 by highlighting the results of operations and the underlying profitability drivers of the business. Adjusted earnings, which may be positive or negative, focuses on the Company’s primary businesses by excluding the impact of market volatility, which could distort trends. The Company uses the term “adjusted loss” throughout this report to refer to negative adjusted earnings values. The following are significant items excluded from total revenues in calculating adjusted earnings: • Net investment gains (losses); and • Net derivative gains (losses), excluding earned income 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 (“Investment Hedge Adjustments”). The following are significant items excluded from total expenses in calculating adjusted earnings: • Change in market risk benefits (“MRB”); and • Change in fair value of the crediting rate on experience-rated contracts (“Market Value Adjustments”). The provision for income tax related to adjusted earnings is calculated using the statutory tax rate of 21%, net of impacts related to the dividends received deduction, tax credits and current period non-recurring items. The segment accounting policies are the same as those used to prepare the Company’s interim condensed consolidated financial statements, except for the adjustments to calculate adjusted earnings described above. In addition, segment accounting policies include the methods of capital allocation described below. Segment investment and capitalization targets are based on statutory oriented risk principles and metrics. Segment invested assets backing liabilities are based on net statutory liabilities plus excess capital. For the variable annuity business, the excess capital held is based on the target statutory total asset requirement consistent with the Company’s variable annuity risk management strategy. For insurance businesses other than variable annuities, excess capital held is based on a percentage of required statutory risk-based capital. Assets in excess of those allocated to the segments, if any, are held in Corporate & Other. Segment net investment income reflects the performance of each segment’s respective invested assets. Operating results by segment, as well as Corporate & Other, were as follows: Three Months Ended June 30, 2024 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings (loss) $ 410 $ 52 $ (37) $ 18 $ 443 Provision for income tax expense (benefit) 78 10 (7) (9) 72 Post-tax adjusted earnings (loss) 332 42 (30) 27 371 Less: Net income (loss) attributable to noncontrolling interests — — — — — Less: Preferred stock dividends — — — 25 25 Adjusted earnings (loss) $ 332 $ 42 $ (30) $ 2 346 Adjustments for: Net investment gains (losses) (120) Net derivative gains (losses), excluding investment hedge adjustments of $9 (671) Change in market risk benefits 356 Market value adjustments 6 Provision for income tax (expense) benefit 92 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ 9 Interest revenue $ 702 $ 121 $ 315 $ 178 Interest expense $ — $ — $ — $ 38 Three Months Ended June 30, 2023 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings (loss) $ 357 $ 18 $ (21) $ 5 $ 359 Provision for income tax expense (benefit) 66 3 (5) (1) 63 Post-tax adjusted earnings (loss) 291 15 (16) 6 296 Less: Net income (loss) attributable to noncontrolling interests — — — — — Less: Preferred stock dividends — — — 25 25 Adjusted earnings (loss) $ 291 $ 15 $ (16) $ (19) 271 Adjustments for: Net investment gains (losses) (64) Net derivative gains (losses), excluding investment hedge adjustments of $23 (1,834) Change in market risk benefits 1,300 Market value adjustments 2 Provision for income tax (expense) benefit 125 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ (200) Interest revenue $ 633 $ 119 $ 316 $ 151 Interest expense $ — $ — $ — $ 38 Six Months Ended June 30, 2024 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings (loss) $ 795 $ 6 $ (469) $ 29 $ 361 Provision for income tax expense (benefit) 150 — (98) 8 60 Post-tax adjusted earnings (loss) 645 6 (371) 21 301 Less: Net income (loss) attributable to noncontrolling interests — — — 2 2 Less: Preferred stock dividends — — — 51 51 Adjusted earnings (loss) $ 645 $ 6 $ (371) $ (32) 248 Adjustments for: Net investment gains (losses) (162) Net derivative gains (losses), excluding investment hedge adjustments of $22 (2,605) Change in market risk benefits 1,796 Market value adjustments 10 Provision for income tax (expense) benefit 203 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ (510) Interest revenue $ 1,378 $ 228 $ 631 $ 346 Interest expense $ — $ — $ — $ 76 Six Months Ended June 30, 2023 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings (loss) $ 744 $ 18 $ (155) $ 10 $ 617 Provision for income tax expense (benefit) 139 2 (33) (10) 98 Post-tax adjusted earnings (loss) 605 16 (122) 20 519 Less: Net income (loss) attributable to noncontrolling interests — — — 2 2 Less: Preferred stock dividends — — — 51 51 Adjusted earnings (loss) $ 605 $ 16 $ (122) $ (33) 466 Adjustments for: Net investment gains (losses) (160) Net derivative gains (losses), excluding investment hedge adjustments of $61 (2,447) Change in market risk benefits 1,106 Market value adjustments (6) Provision for income tax (expense) benefit 316 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ (725) Interest revenue $ 1,227 $ 219 $ 570 $ 300 Interest expense $ — $ — $ — $ 76 Total revenues by segment, as well as Corporate & Other, were as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (In millions) Annuities $ 1,314 $ 1,246 $ 2,618 $ 2,416 Life 297 312 514 616 Run-off 429 448 785 828 Corporate & Other 178 155 351 294 Adjustments (791) (1,898) (2,767) (2,607) Total $ 1,427 $ 263 $ 1,501 $ 1,547 Total assets by segment, as well as Corporate & Other, were as follows at: June 30, 2024 December 31, 2023 (In millions) Annuities $ 162,276 $ 160,775 Life 25,131 25,504 Run-off 25,579 26,828 Corporate & Other 24,452 23,233 Total $ 237,438 $ 236,340 |
Insurance Liabilities
Insurance Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
Insurance Liabilities | 3. Insurance Liabilities Liability for Future Policy Benefits Information regarding liability for future policy benefits (“LFPB”) for non-participating traditional and limited-payment contracts was as follows: Six Months Ended June 30, 2024 2023 Term and Whole Life Insurance Income Annuities Structured Settlement and Pension Risk Transfer Annuities Term and Whole Life Insurance Income Annuities Structured Settlement and Pension Risk Transfer Annuities (Dollars in millions) Present value of expected net premiums: Balance, beginning of period $ 2,974 $ — $ — $ 2,871 $ — $ — Beginning balance at original discount rate 3,234 — — 3,212 — — Effect of model refinements 4 — — — — — Effect of actual variances from expected experience 19 — — (8) — — Adjusted beginning of period balance 3,257 — — 3,204 — — Issuances 41 — — 49 — — Interest accrual 57 — — 55 — — Net premiums collected (189) — — (184) — — Ending balance at original discount rate 3,166 — — 3,124 — — Effect of changes in discount rate assumptions (341) — — (315) — — Balance, end of period $ 2,825 $ — $ — $ 2,809 $ — $ — Present value of expected future policy benefits: Balance, beginning of period $ 5,507 $ 3,754 $ 6,697 $ 5,279 $ 3,512 $ 6,793 Beginning balance at original discount rate 6,023 4,031 7,085 5,922 3,897 7,410 Effect of model refinements 9 — — — — — Effect of actual variances from expected experience 28 (1) (3) (10) (4) (37) Adjusted beginning of period balance 6,060 4,030 7,082 5,912 3,893 7,373 Issuances 43 197 — 50 182 — Interest accrual 110 76 152 107 72 158 Benefit payments (311) (201) (288) (251) (192) (301) Ending balance at original discount rate 5,902 4,102 6,946 5,818 3,955 7,230 Effect of changes in discount rate assumptions (688) (404) (721) (597) (355) (519) Balance, end of period $ 5,214 $ 3,698 $ 6,225 $ 5,221 $ 3,600 $ 6,711 Net liability for future policy benefits, end of period $ 2,389 $ 3,698 $ 6,225 $ 2,412 $ 3,600 $ 6,711 Less: Reinsurance recoverable, end of period 37 30 61 41 25 66 Net liability for future policy benefits, after reinsurance recoverable $ 2,352 $ 3,668 $ 6,164 $ 2,371 $ 3,575 $ 6,645 Weighted-average duration of liability 8.7 years 8.1 years 11.5 years 8.3 years 8.4 years 11.6 years Weighted-average interest accretion rate 3.95 % 4.00 % 4.46 % 3.95 % 3.92 % 4.46 % Current discount rate 5.46 % 5.46 % 5.56 % 5.18 % 5.19 % 5.20 % Gross premiums or assessments recognized during period $ 284 $ 247 $ — $ 307 $ 224 $ — Expected future gross premiums, undiscounted $ 5,953 $ — $ — $ 6,531 $ — $ — Expected future gross premiums, discounted $ 4,477 $ — $ — $ 4,837 $ — $ — Expected future benefit payments, undiscounted $ 8,163 $ 5,809 $ 13,483 $ 8,044 $ 5,608 $ 14,062 Expected future benefit payments, discounted $ 5,902 $ 4,102 $ 6,946 $ 5,818 $ 3,955 $ 7,230 Information regarding the additional insurance liabilities for universal life-type contracts with secondary guarantees was as follows: Six Months Ended June 30, 2024 2023 (Dollars in millions) Balance, beginning of period $ 7,607 $ 6,935 Beginning balance before the effect of unrealized gains and losses 7,784 7,175 Effect of actual variances from expected experience 67 60 Adjusted beginning of period balance 7,851 7,235 Interest accrual 190 175 Net assessments collected 215 206 Benefit payments (201) (195) Ending balance before the effect of unrealized gains and losses 8,055 7,421 Effect of unrealized gains and losses (250) (211) Balance, end of period 7,805 7,210 Less: Reinsurance recoverable, end of period 1,466 1,414 Net additional liability, after reinsurance recoverable $ 6,339 $ 5,796 Weighted-average duration of liability 6.6 years 6.7 years Weighted-average interest accretion rate 4.93 % 4.91 % Gross assessments recognized during period $ 542 $ 531 A reconciliation of the net LFPBs for non-participating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees reported in the preceding rollforward tables to LFPBs on the consolidated balance sheets was as follows at: June 30, 2024 2023 (In millions) Liabilities reported in the preceding rollforward tables $ 20,117 $ 19,933 Long-term care insurance (1) 5,224 5,606 ULSG liabilities, including liability for profits followed by losses 2,525 2,565 Participating whole life insurance (2) 3,161 3,031 Deferred profit liabilities 476 373 Other 383 391 Total liability for future policy benefits $ 31,886 $ 31,899 _______________ (1) Includes liabilities related to fully reinsured individual long-term care insurance. See Note 2. (2) Participating whole life insurance uses an interest assumption based on the non-forfeiture interest rate, ranging from 3.5% to 4.5%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts, and also includes a liability for terminal dividends. Participating whole life insurance represented 3% of the Company’s life insurance in-force at both June 30, 2024 and 2023, and 41% of gross traditional life insurance premiums for both the six months ended June 30, 2024 and 2023. Policyholder Account Balances Information regarding policyholder account balances was as follows: Universal Life Insurance Variable Annuities (1) Index-linked Annuities Fixed Rate Annuities ULSG Company-Owned Life Insurance (1) (Dollars in millions) Six Months Ended June 30, 2024 Balance, beginning of period $ 2,550 $ 4,307 $ 41,627 $ 14,672 $ 5,052 $ 653 Premiums and deposits 121 34 4,236 687 328 — Surrenders and withdrawals (49) (351) (2,510) (736) (10) — Benefit payments (27) (47) (151) (178) (39) (5) Net transfers from (to) separate account 31 59 — — — (1) Interest credited 48 54 291 281 82 18 Policy charges (108) (12) (9) — (499) (6) Changes related to embedded derivatives — — 2,605 — — — Balance, end of period $ 2,566 $ 4,044 $ 46,089 $ 14,726 $ 4,914 $ 659 Weighted-average crediting rate (2) 1.88 % 1.29 % 0.85 % 1.90 % 1.65 % 2.49 % Six Months Ended June 30, 2023 Balance, beginning of period $ 2,658 $ 4,908 $ 33,897 $ 14,274 $ 5,307 $ 641 Premiums and deposits 113 43 3,390 1,479 339 — Surrenders and withdrawals (90) (326) (1,613) (874) (12) — Benefit payments (42) (61) (117) (203) (55) (4) Net transfers from (to) separate account 22 11 — — — — Interest credited 8 78 203 229 122 15 Policy charges (110) (14) (4) — (513) (6) Changes related to embedded derivatives — — 2,793 — — — Balance, end of period $ 2,559 $ 4,639 $ 38,549 $ 14,905 $ 5,188 $ 646 Weighted-average crediting rate (2) 0.31 % 1.63 % 0.66 % 1.57 % 2.33 % 2.33 % _______________ (1) Includes liabilities related to separate account products where the contract holder elected a general account investment option. (2) Excludes the effects of embedded derivatives related to index-linked crediting rates. A reconciliation of policyholder account balances reported in the preceding rollforward table to the liability for policyholder account balances on the consolidated balance sheets was as follows at: June 30, 2024 2023 (In millions) Policyholder account balances reported in the preceding rollforward table $ 72,998 $ 66,486 Funding agreements classified as investment contracts 11,502 11,041 Institutional group annuities 343 — Other investment contract liabilities 1,022 1,116 Total policyholder account balances $ 85,865 $ 78,643 The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums was as follows at: Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 to 50 Basis Points Above 51 to 150 Basis Points Above Greater than 150 Basis Points Above Total (In millions) June 30, 2024 Annuities (1): Less than 2.00% $ 616 $ 145 $ 282 $ 8,323 $ 9,366 2.00% to 3.99% 8,034 327 167 502 9,030 Greater than 3.99% 828 — — — 828 Total $ 9,478 $ 472 $ 449 $ 8,825 $ 19,224 Life insurance (2) (3): Less than 2.00% $ — $ — $ — $ 275 $ 275 2.00% to 3.99% — 500 49 134 683 Greater than 3.99% 1,566 — — — 1,566 Total $ 1,566 $ 500 $ 49 $ 409 $ 2,524 ULSG (3): Less than 2.00% $ — $ — $ — $ — $ — 2.00% to 3.99% 1,093 1,439 1,633 247 4,412 Greater than 3.99% 493 — — — 493 Total $ 1,586 $ 1,439 $ 1,633 $ 247 $ 4,905 December 31, 2023 Annuities (1): Less than 2.00% $ 697 $ 223 $ 310 $ 7,652 $ 8,882 2.00% to 3.99% 8,827 242 225 356 9,650 Greater than 3.99% 874 — — — 874 Total $ 10,398 $ 465 $ 535 $ 8,008 $ 19,406 Life insurance (2) (3): Less than 2.00% $ — $ — $ — $ 236 $ 236 2.00% to 3.99% — 492 49 136 677 Greater than 3.99% 1,595 — — — 1,595 Total $ 1,595 $ 492 $ 49 $ 372 $ 2,508 ULSG (3): Less than 2.00% $ — $ — $ — $ — $ — 2.00% to 3.99% 1,135 1,485 1,663 254 4,537 Greater than 3.99% 506 — — — 506 Total $ 1,641 $ 1,485 $ 1,663 $ 254 $ 5,043 _______________ (1) Includes policyholder account balances for fixed rate annuities and the fixed account portion of variable annuities. (2) Includes policyholder account balances for retained asset accounts, universal life policies and the fixed account portion of universal variable life insurance policies. (3) Amounts are gross of policy loans. |
Market Risk Benefits
Market Risk Benefits | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
Market Risk Benefits | 4. Market Risk Benefits Information regarding MRB assets and liabilities associated with variable annuities was as follows: Six Months Ended June 30, 2024 2023 (Dollars in millions) Balance, beginning of period $ 9,701 $ 9,974 Balance, beginning of period, before effect of changes in nonperformance risk 7,326 8,230 Decrements (66) (54) Effect of actual different from expected experience 88 170 Effect of changes in interest rates (1,547) (147) Effect of changes in fund returns (649) (1,529) Issuances — (5) Effect of changes in risk margin (53) (18) Aging of the block and other 665 713 Balance, end of period, before effect of changes in nonperformance risk 5,764 7,360 Effect of changes in nonperformance risk 2,049 1,868 Balance, end of period 7,813 9,228 Less: Reinsurance recoverable, end of period 21 50 Balance, end of period, net of reinsurance (1) $ 7,792 $ 9,178 Weighted-average attained age of contract holder 73.4 years 72.5 years _______________ (1) Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at June 30, 2024 and 2023, with the exception of $0 and $3 million, respectively, of index-linked annuities not included in this table. |
Separate Accounts
Separate Accounts | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
Separate Accounts | 5. Separate Accounts Separate Accounts Information regarding separate account liabilities was as follows: Six Months Ended June 30, 2024 2023 Variable Annuities Universal Life Insurance Company-Owned Life Insurance Variable Annuities Universal Life Insurance Company-Owned Life Insurance (In millions) Balance, beginning of period $ 79,990 $ 5,921 $ 2,162 $ 77,653 $ 5,218 $ 1,932 Premiums and deposits 417 77 — 408 83 — Surrenders and withdrawals (3,990) (112) (5) (3,010) (91) (7) Benefit payments (788) (31) (12) (740) (33) (16) Investment performance 5,028 510 148 7,211 654 212 Policy charges (1,060) (103) (26) (1,076) (104) (24) Net transfers from (to) general account (59) (31) 1 (11) (22) — Other (16) — (1) (12) — (4) Balance, end of period $ 79,522 $ 6,231 $ 2,267 $ 80,423 $ 5,705 $ 2,093 A reconciliation of separate account liabilities reported in the preceding rollforward table to the separate account liabilities balance on the consolidated balance sheets was as follows at: June 30, 2024 2023 (In millions) Separate account liabilities reported in the preceding rollforward table $ 88,020 $ 88,221 Variable income annuities 218 152 Pension risk transfer annuities 22 19 Total separate account liabilities $ 88,260 $ 88,392 The aggregate estimated fair value of assets, by major investment asset category, supporting separate accounts was as follows at: June 30, 2024 December 31, 2023 (In millions) Equity securities $ 87,996 $ 87,999 Fixed maturity securities 253 258 Cash and cash equivalents 7 7 Other assets 4 7 Total aggregate estimated fair value of assets $ 88,260 $ 88,271 Net Amount at Risk and Cash Surrender Values Information regarding the net amount at risk and cash surrender value for insurance products was as follows at: Universal Life Insurance Variable Annuities Index-linked Annuities Fixed Rate Annuities ULSG Company-Owned Life Insurance (In millions) June 30, 2024 Account balances reported in the preceding rollforward tables: Policyholder account balances $ 2,566 $ 4,044 $ 46,089 $ 14,726 $ 4,914 $ 659 Separate account liabilities 6,231 79,522 — — — 2,267 Total account balances $ 8,797 $ 83,566 $ 46,089 $ 14,726 $ 4,914 $ 2,926 Net amount at risk $ 34,485 $ 12,642 N/A N/A $ 64,450 $ 2,675 Cash surrender value $ 8,224 $ 83,155 $ 43,846 $ 14,063 $ 4,414 $ 2,598 June 30, 2023 Account balances reported in the preceding rollforward tables: Policyholder account balances $ 2,559 $ 4,639 $ 38,549 $ 14,905 $ 5,188 $ 646 Separate account liabilities 5,705 80,423 — — — 2,093 Total account balances $ 8,264 $ 85,062 $ 38,549 $ 14,905 $ 5,188 $ 2,739 Net amount at risk $ 36,753 $ 13,672 N/A N/A $ 69,602 $ 2,647 Cash surrender value $ 7,676 $ 84,644 $ 35,860 $ 14,281 $ 6,160 $ 2,539 Products may contain both separate account and general account fund options; accordingly, net amount at risk and cash surrender value reported in the table above relate to the total account balance for each respective product grouping. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles | 6. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles Deferred Policy Acquisition Costs and Value of Business Acquired Information regarding deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”) was as follows: Variable Annuities Fixed Rate Annuities Index-linked Annuities Term and Whole Life Insurance Universal Life Insurance (In millions) Six Months Ended June 30, 2024 DAC: Balance, beginning of period $ 2,301 $ 110 $ 1,331 $ 354 $ 360 Capitalization 19 4 190 1 6 Amortization (114) (2) (119) (25) (21) Balance, end of period 2,206 112 1,402 330 345 VOBA: Balance, beginning of period 309 60 — 4 43 Amortization (15) (2) — — (3) Balance, end of period 294 58 — 4 40 Total DAC and VOBA: Balance, end of period $ 2,500 $ 170 $ 1,402 $ 334 $ 385 Six Months Ended June 30, 2023 DAC: Balance, beginning of period $ 2,508 $ 107 $ 1,213 $ 405 $ 392 Capitalization 19 7 165 — 6 Amortization (124) (5) (111) (27) (23) Balance, end of period 2,403 109 1,267 378 375 VOBA: Balance, beginning of period 341 65 — 5 48 Amortization (17) (2) — (1) (3) Balance, end of period 324 63 — 4 45 Total DAC and VOBA: Balance, end of period $ 2,727 $ 172 $ 1,267 $ 382 $ 420 Deferred Sales Inducements Information regarding deferred sales inducements, included in other assets, was as follows: Six Months Ended June 30, 2024 2023 Variable Annuities Fixed Rate Annuities Variable Annuities Fixed Rate Annuities (In millions) Balance, beginning of period $ 220 $ 8 $ 245 $ 9 Amortization (11) (1) (13) (1) Balance, end of period $ 209 $ 7 $ 232 $ 8 Unearned Revenue Information regarding unearned revenue, included in other policy-related balances, was as follows: Six Months Ended June 30, 2024 2023 Universal Life Insurance ULSG Variable Annuities Universal Life Insurance ULSG Variable Annuities (In millions) Balance, beginning of period $ 356 $ 612 $ 67 $ 356 $ 488 $ 74 Capitalization 18 84 — 20 88 — Amortization (18) (29) (4) (20) (23) (4) Balance, end of period $ 356 $ 667 $ 63 $ 356 $ 553 $ 70 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 7. Investments See Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2023 Annual Report for a description of the Company’s accounting policies for investments and the fair value hierarchy for investments and the related valuation methodologies. Fixed Maturity Securities Available-For-Sale Fixed Maturity Securities by Sector Fixed maturity securities by sector were as follows at: June 30, 2024 December 31, 2023 Amortized Allowance for Credit Losses Gross Unrealized Estimated Amortized Allowance for Credit Losses Gross Unrealized Estimated Gains Losses Gains Losses (In millions) U.S. corporate $ 39,956 $ 31 $ 223 $ 3,978 $ 36,170 $ 38,778 $ 15 $ 388 $ 3,396 $ 35,755 Foreign corporate 13,458 4 47 1,495 12,006 12,865 — 89 1,289 11,665 U.S. government and agency 7,750 — 97 621 7,226 8,656 — 286 523 8,419 Residential mortgage-backed securities 8,691 5 43 935 7,794 8,199 5 48 812 7,430 Commercial mortgage-backed securities 6,920 5 3 535 6,383 7,023 1 2 614 6,410 Asset-backed securities 6,532 — 28 98 6,462 6,514 — 23 131 6,406 State and political subdivision 3,814 — 100 355 3,559 4,019 — 159 304 3,874 Foreign government 1,055 — 28 102 981 1,077 — 42 87 1,032 Total fixed maturity securities $ 88,176 $ 45 $ 569 $ 8,119 $ 80,581 $ 87,131 $ 21 $ 1,037 $ 7,156 $ 80,991 The Company held non-income producing fixed maturity securities with an estimated fair value of $45 million and $52 million at June 30, 2024 and December 31, 2023, 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 June 30, 2024: Due in One Due After One Due After Five Due After Ten Structured Total Fixed (In millions) Amortized cost $ 3,788 $ 18,698 $ 14,088 $ 29,459 $ 22,143 $ 88,176 Estimated fair value $ 3,746 $ 18,050 $ 12,715 $ 25,431 $ 20,639 $ 80,581 _______________ (1) Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”). 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 Securities by Sector The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at: June 30, 2024 December 31, 2023 Less than 12 Months 12 Months or Greater Less than 12 Months 12 Months or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) U.S. corporate $ 7,800 $ 646 $ 21,587 $ 3,332 $ 4,554 $ 409 $ 22,796 $ 2,987 Foreign corporate 2,002 101 8,054 1,394 1,010 73 8,311 1,216 U.S. government and agency 1,867 71 2,299 550 518 9 3,477 514 RMBS 1,049 30 5,474 905 413 20 5,774 792 CMBS 479 25 5,549 510 411 33 5,786 581 ABS 721 4 1,798 94 572 3 3,360 128 State and political subdivision 658 56 1,624 299 471 32 1,634 272 Foreign government 57 1 670 101 112 6 620 81 Total fixed maturity securities $ 14,633 $ 934 $ 47,055 $ 7,185 $ 8,061 $ 585 $ 51,758 $ 6,571 Total number of securities in an unrealized loss position 2,179 6,512 1,347 7,038 Allowance for Credit Losses for Fixed Maturity Securities Evaluation and Measurement Methodologies For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. 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 allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in other comprehensive income (“OCI”). Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses). Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses. Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $673 million and $655 million at June 30, 2024 and December 31, 2023, respectively, and is included in accrued investment income. Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities. Current Period Evaluation Based on the Company’s current evaluation of its fixed maturity securities in an unrealized loss position and the current intent or requirement to sell, the Company recorded an allowance for credit losses of $45 million, relating to 27 securities, at June 30, 2024. Management concluded that for all other fixed maturity securities in an unrealized loss position, the unrealized loss was not due to issuer-specific credit-related factors and as a result was recognized in OCI. Where unrealized losses have not been recognized into income, it is primarily because the securities’ bond issuer(s) are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in estimated fair value is largely due to changes in interest rates and non-issuer specific credit spreads. These issuers continued to make timely principal and interest payments and the estimated fair value is expected to recover as the securities approach maturity. Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector The changes in the allowance for credit losses for fixed maturity securities by sector were as follows: U.S. Corporate Foreign Corporate RMBS CMBS Total (In millions) Six Months Ended June 30, 2024 Balance, beginning of period $ 15 $ — $ 5 $ 1 $ 21 Allowance on securities where credit losses were not previously recorded 12 4 — 3 19 Reductions for securities sold — — — — — Change in allowance on securities with an allowance recorded in a previous period 4 — — 1 5 Write-offs charged against allowance (1) — — — — — Balance, end of period $ 31 $ 4 $ 5 $ 5 $ 45 Six Months Ended June 30, 2023 Balance, beginning of period $ 1 $ 1 $ 2 $ 3 $ 7 Allowance on securities where credit losses were not previously recorded 4 — 3 — 7 Reductions for securities sold (1) — — — (1) Change in allowance on securities with an allowance recorded in a previous period — — — — — Write-offs charged against allowance (1) — (1) — — (1) Balance, end of period $ 4 $ — $ 5 $ 3 $ 12 _______________ (1) The Company recorded total write-offs of $1 million and $7 million for the six months ended June 30, 2024 and 2023, respectively. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: June 30, 2024 December 31, 2023 Carrying % of Carrying % of (Dollars in millions) Commercial $ 13,130 58.0 % $ 13,193 58.6 % Agricultural 4,533 20.0 4,445 19.8 Residential 5,133 22.7 5,007 22.2 Total mortgage loans (1) 22,796 100.7 22,645 100.6 Allowance for credit losses (155) (0.7) (137) (0.6) Total mortgage loans, net $ 22,641 100.0 % $ 22,508 100.0 % _______________ (1) Purchases of mortgage loans from third parties were $188 million and $349 million for the three months and six months ended June 30, 2024, respectively, and $0 and $32 million for the three months and six months ended June 30, 2023, respectively, and were primarily comprised of residential mortgage loans. Allowance for Credit Losses for Mortgage Loans Evaluation and Measurement Methodologies The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible. Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $122 million and $123 million at June 30, 2024 and December 31, 2023, respectively. The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two years is used with an input reversion period of one year. Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, modifications, foreclosure probable loans, and loans with dissimilar risk characteristics. Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components. For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a non-credit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments. Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment The changes in the allowance for credit losses by portfolio segment were as follows: Commercial Agricultural Residential Total (In millions) Six Months Ended June 30, 2024 Balance, beginning of period $ 69 $ 19 $ 49 $ 137 Current period provision 38 (1) (11) 26 Charge-offs, net of recoveries (8) — — (8) Balance, end of period $ 99 $ 18 $ 38 $ 155 Six Months Ended June 30, 2023 Balance, beginning of period $ 49 $ 15 $ 55 $ 119 Current period provision 26 — 1 27 Charge-offs, net of recoveries — (1) — (1) Balance, end of period $ 75 $ 14 $ 56 $ 145 Credit Quality of Mortgage Loans by Portfolio Segment The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at: 2024 2023 2022 2021 2020 Prior Total (In millions) June 30, 2024 Commercial mortgage loans Loan-to-value ratios: Less than 65% $ 264 $ 199 $ 654 $ 1,817 $ 176 $ 3,410 $ 6,520 65% to 75% 23 — 935 1,022 121 1,199 3,300 76% to 80% — — 427 258 138 794 1,617 Greater than 80% — — 400 103 — 1,190 1,693 Total commercial mortgage loans 287 199 2,416 3,200 435 6,593 13,130 Agricultural mortgage loans Loan-to-value ratios: Less than 65% 191 214 574 1,140 414 1,744 4,277 65% to 75% 6 1 126 78 12 33 256 Total agricultural mortgage loans 197 215 700 1,218 426 1,777 4,533 Residential mortgage loans Performing 32 215 1,309 1,703 141 1,638 5,038 Nonperforming — 1 27 18 1 48 95 Total residential mortgage loans 32 216 1,336 1,721 142 1,686 5,133 Total $ 516 $ 630 $ 4,452 $ 6,139 $ 1,003 $ 10,056 $ 22,796 2023 2022 2021 2020 2019 Prior Total (In millions) December 31, 2023 Commercial mortgage loans Loan-to-value ratios: Less than 65% $ 206 $ 655 $ 1,823 $ 177 $ 1,239 $ 2,630 $ 6,730 65% to 75% — 935 1,079 222 261 1,158 3,655 76% to 80% — 427 76 39 209 564 1,315 Greater than 80% — 400 227 — 150 716 1,493 Total commercial mortgage loans 206 2,417 3,205 438 1,859 5,068 13,193 Agricultural mortgage loans Loan-to-value ratios: Less than 65% 202 571 1,132 454 505 1,292 4,156 65% to 75% 1 127 108 6 30 17 289 Total agricultural mortgage loans 203 698 1,240 460 535 1,309 4,445 Residential mortgage loans Performing 105 1,286 1,669 145 204 1,508 4,917 Nonperforming — 22 22 1 2 43 90 Total residential mortgage loans 105 1,308 1,691 146 206 1,551 5,007 Total $ 514 $ 4,423 $ 6,136 $ 1,044 $ 2,600 $ 7,928 $ 22,645 The loan-to-value ratio is a measure commonly used to assess the quality of commercial and agricultural mortgage loans. The loan-to-value ratio compares the amount of the loan to the estimated fair value of the underlying property collateralizing the loan and is commonly expressed as a percentage. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. Performing status is a measure commonly used to assess the quality of residential mortgage loans. A loan is considered performing when the borrower makes consistent and timely payments. The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at: June 30, 2024 December 31, 2023 Amortized Cost % of Amortized Cost % of (Dollars in millions) Debt-service coverage ratios: Greater than 1.20x $ 12,078 92.0 % $ 12,086 91.6 % 1.00x - 1.20x 728 5.5 702 5.3 Less than 1.00x 324 2.5 405 3.1 Total $ 13,130 100.0 % $ 13,193 100.0 % The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios less than 1.00 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt-service coverage ratio greater than 1.00 times indicates an excess of net operating income over the debt-service payments. Past Due Mortgage Loans by Portfolio Segment The Company has a high-quality, well-performing mortgage loan portfolio, with over 99% of all mortgage loans classified as performing at both June 30, 2024 and December 31, 2023. Delinquency is defined 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 aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at: June 30, 2024 December 31, 2023 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Current $ 13,031 $ 4,513 $ 4,954 $ 22,498 $ 13,176 $ 4,429 $ 4,915 $ 22,520 30-59 days past due — — 84 84 — — 2 2 60-89 days past due 99 — 31 130 — — 30 30 90-179 days past due — 4 23 27 — — 23 23 180+ days past due — 16 41 57 17 16 37 70 Total $ 13,130 $ 4,533 $ 5,133 $ 22,796 $ 13,193 $ 4,445 $ 5,007 $ 22,645 Mortgage Loans in Nonaccrual Status by Portfolio Segment Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized. The amortized cost of mortgage loans in a nonaccrual status by portfolio segment was as follows at: Commercial Agricultural Residential (1) Total (In millions) June 30, 2024 $ 99 $ 16 $ 95 $ 210 December 31, 2023 $ 17 $ — $ 90 $ 107 _______________ (1) The Company had $30 million of mortgage loans in nonaccrual status for which there was no related allowance for credit losses at June 30, 2024. The Company had no mortgage loans in nonaccrual status for which there was no related allowance for credit losses at December 31, 2023. Current period investment income on mortgage loans in nonaccrual status was $1 million and less than $1 million for the six months ended June 30, 2024 and 2023, respectively. Modified Mortgage Loans by Portfolio Segment Under certain circumstances, modifications are granted to nonperforming mortgage loans. Generally, the types of concessions may include interest rate reduction, term extension, principal forgiveness, or a combination of all three. The Company did not have a significant amount of mortgage loans modified during both the six months ended June 30, 2024 and 2023. Other Invested Assets Over 75% of other invested assets is comprised of freestanding derivatives with positive estimated fair values. See Note 8 for information about freestanding derivatives with positive estimated fair values. Other invested assets also includes the Company’s investment in company-owned life insurance, Federal Home Loan Bank (“FHLB”) stock, tax credit and renewable energy partnerships and leveraged leases. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity securities, and the effect on future policy benefits that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in accumulated other comprehensive income (loss) (“AOCI”). The components of net unrealized investment gains (losses), included in AOCI, were as follows at: June 30, 2024 December 31, 2023 (In millions) Fixed maturity securities $ (7,550) $ (6,119) Derivatives 443 351 Other (9) 2 Subtotal (7,116) (5,766) Amounts allocated from: Future policy benefits 920 652 Deferred income tax benefit (expense) 1,301 1,074 Net unrealized investment gains (losses) $ (4,895) $ (4,040) The changes in net unrealized investment gains (losses) were as follows: Six Months Ended June 30, 2024 (In millions) Balance at December 31, 2023 $ (4,040) Unrealized investment gains (losses) during the period (1,350) Unrealized investment gains (losses) relating to: Future policy benefits 268 Deferred income tax benefit (expense) 227 Balance at June 30, 2024 $ (4,895) Change in net unrealized investment gains (losses) $ (855) 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 June 30, 2024 and December 31, 2023. Securities Lending Elements of the securities lending program are presented below at: June 30, 2024 December 31, 2023 (In millions) Securities on loan: (1) Amortized cost $ 3,562 $ 3,420 Estimated fair value $ 3,178 $ 3,194 Cash collateral received from counterparties (2) $ 3,279 $ 3,277 Reinvestment portfolio — estimated fair value $ 3,260 $ 3,246 _______________ (1) Included in fixed maturity securities. (2) Included in payables for collateral under securities loaned and other transactions. The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at: June 30, 2024 December 31, 2023 Open (1) 1 Month or Less 1 to 6 Months Total Open (1) 1 Month or Less 1 to 6 Months Total (In millions) U.S. government and agency $ 622 $ 896 $ 1,379 $ 2,897 $ 647 $ 655 $ 1,584 $ 2,886 U.S. corporate — 268 — 268 — 252 — 252 Foreign corporate — 100 — 100 — 130 — 130 Foreign government — 14 — 14 — 9 — 9 Total $ 622 $ 1,278 $ 1,379 $ 3,279 $ 647 $ 1,046 $ 1,584 $ 3,277 _______________ (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 in normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at June 30, 2024 was $606 million, primarily comprised of 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, ABS, U.S. and foreign corporate securities, U.S. government and agency securities, non-agency RMBS and CMBS) with 53% invested in agency RMBS, U.S. government and agency securities and cash and cash equivalents at June 30, 2024. 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 at estimated fair value were as follows at: June 30, 2024 December 31, 2023 (In millions) Invested assets on deposit (regulatory deposits) (1) $ 6,150 $ 8,593 Invested assets held in trust (reinsurance agreements) (2) 7,207 7,142 Invested assets pledged as collateral (3) 13,473 13,979 Total invested assets on deposit, held in trust and pledged as collateral $ 26,830 $ 29,714 _______________ (1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $50 million and $102 million of the assets on deposit represents restricted cash and cash equivalents at June 30, 2024 and December 31, 2023, respectively. (2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $199 million and $120 million of the assets held in trust balance represents restricted cash and cash equivalents at June 30, 2024 and December 31, 2023, respectively. (3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2023 Annual Report) and derivative transactions (see Note 8). Variable Interest Entities A variable interest entity (“VIE”) is a legal entity that does not have sufficient equity at risk to finance its activities or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. The Company enters into various arrangements with VIEs in the normal course of business and has invested in legal entities that are VIEs. VIEs are consolidated when it is determined that the Company is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both (i) the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In addition, the evaluation of whether a legal entity is a VIE and if the Company is a primary beneficiary includes a review of the capital structure of the VIE, the related contractual relationships and terms, the nature of the operations and purpose of the VIE, the nature of the VIE interests issued and the Company’s involvement with the entity. There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either June 30, 2024 or December 31, 2023. The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at: June 30, 2024 December 31, 2023 Carrying Maximum Carrying Maximum (In millions) Fixed maturity securities $ 15,657 $ 16,934 $ 15,526 $ 16,771 Limited partnerships and LLCs 4,297 5,355 4,233 5,255 Total $ 19,954 $ 22,289 $ 19,759 $ 22,026 The Company’s investments in unconsolidated VIEs are described below. Fixed Maturity Securities The Company invests in U.S. corporate bonds, foreign corporate bonds and Structured Securities issued by VIEs. The Company is not obligated to provide any financial or other support to these VIEs, other than the original investment. The Company’s involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed as having the power to direct the activities that most significantly impact the economic performance of the VIE, nor does the Company function in any of these roles. The Company does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity; as a result, the Company has determined it is not the primary beneficiary, or consolidator, of the VIE. The Company’s maximum exposure to loss on these fixed maturity securities is limited to the amortized cost of these investments. See “— Fixed Maturity Securities Available-For-Sale” for information on these securities. Limited Partnerships and LLCs The Company holds investments in certain limited partnerships and LLCs which are VIEs. These ventures include limited partnerships, LLCs, private equity funds, and, to a lesser extent, tax credit and renewable energy partnerships. The Company is not considered the primary beneficiary, or consolidator, when its involvement takes the form of a limited partner interest and is restricted to a role of a passive investor, as a limited partner’s interest does not provide the Company with any substantive kick-out or participating rights, nor does it provide the Company with the power to direct the activities of the fund. The Company’s maximum exposure to loss on these investments is limited to: (i) the amount invested in debt or equity of the VIE and (ii) commitments to the VIE, as described in Note 13. Net Investment Income The components of net investment income were as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (In millions) Investment income: Fixed maturity securities $ 937 $ 868 $ 1,856 $ 1,705 Equity securities — 1 2 1 Mortgage loans 250 237 495 476 Policy loans 19 18 33 33 Limited partnerships and LLCs (1) 99 89 173 76 Cash, cash equivalents and short-term investments 63 55 124 105 Other 26 20 51 42 Total investment income 1,394 1,288 2,734 2,438 Less: Investment expenses 87 92 173 183 Net investment income $ 1,307 $ 1,196 $ 2,561 $ 2,255 _______________ (1) Includes net investment income pertaining to other limited partnership interests of $102 million and $195 million for the three months and six months ended June 30, 2024, respectively, and $93 million and $92 million for the three months and six months ended June 30, 2023, respectively. Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (In millions) Fixed maturity securities $ (97) $ (55) $ (135) $ (131) Equity securities (1) 2 — (1) Mortgage loans (22) (10) (27) (27) Limited partnerships and LLCs (1) — (1) — Other 1 (1) 1 (1) Total net investment gains (losses) $ (120) $ (64) $ (162) $ (160) Gains (losses) from foreign currency transactions included within net investment gains (losses) were not significant for the three months and six months ended June 30, 2024 and 2023. Sales or Disposals of Fixed Maturity Securities Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (In millions) Proceeds $ 1,175 $ 505 $ 1,855 $ 1,277 Gross investment gains $ 8 $ 8 $ 10 $ 11 Gross investment losses (86) (56) (120) (129) Net investment gains (losses) $ (78) $ (48) $ (110) $ (118) |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 8. Derivatives Accounting for Derivatives See Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2023 Annual Report for a description of the Company’s accounting policies for derivatives and the fair value hierarchy for derivatives. Types of Derivative Instruments and Derivative Strategies The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks. Commonly used derivative instruments include, but are not necessarily limited to: • Interest rate derivatives: swaps, floors, caps, futures, swaptions and forwards; • Foreign currency exchange rate derivatives: forwards and swaps; • Equity market derivatives: options, total return swaps and hybrid options; and • Credit derivatives: single and index reference credit default swaps. For detailed information on these contracts and the related strategies, see Note 7 of the Notes to the Consolidated Financial Statements included in the 2023 Annual Report. In the second quarter of 2024, the Company utilized interest rate futures to manage risk related to policyholder liabilities for institutional group annuities. These interest rate futures are non-qualified hedges. In the first quarter of 2024, the Company entered into interest rate swaps to manage the interest rate risk in funding agreement liabilities. These interest rate swaps are qualifying hedges. Primary Risks Managed by Derivatives The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives, excluding embedded derivatives, held were as follows at: June 30, 2024 December 31, 2023 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate swaps Interest rate $ 500 $ 12 $ — $ — $ — $ — Foreign currency swaps Foreign currency exchange rate 3,913 409 23 3,939 348 45 Total qualifying hedges 4,413 421 23 3,939 348 45 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 53,524 130 179 31,252 140 103 Interest rate floors Interest rate 3,500 2 — 3,500 7 1 Interest rate caps Interest rate 6,800 12 2 7,050 19 1 Interest rate futures Interest rate 80 — — — — — Interest rate options Interest rate 23,050 38 222 33,680 47 167 Interest rate forwards Interest rate 13,886 25 1,653 17,017 32 1,937 Foreign currency swaps Foreign currency exchange rate 723 106 — 747 101 1 Foreign currency forwards Foreign currency exchange rate 726 2 — 535 — 9 Credit default swaps — written Credit 1,096 20 — 1,405 27 — Equity index options Equity market 20,883 1,234 940 20,099 757 687 Equity total return swaps Equity market 68,976 1,316 1,110 53,742 2,236 2,137 Hybrid options Equity market 20 — — 270 — — Total non-designated or non-qualifying derivatives 193,264 2,885 4,106 169,297 3,366 5,043 Total $ 197,677 $ 3,306 $ 4,129 $ 173,236 $ 3,714 $ 5,088 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 June 30, 2024 and December 31, 2023. The Company’s use of derivatives includes (i) derivatives that serve as hedges of the Company’s exposure to various risks and generally do not qualify for hedge accounting because they do not meet the criteria required under portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities and generally do not qualify for hedge accounting because they do not meet the criteria of being “highly effective” as outlined in Accounting Standards Codification 815 — Derivatives and Hedging; (iii) derivatives that economically hedge MRBs that do not qualify for hedge accounting because the changes in estimated fair value of the MRBs 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. The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items reported in net derivative gains (losses) were as follows: Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Policyholder Benefits and Claims Amount of Gains (Losses) Deferred in AOCI (In millions) Three Months Ended June 30, 2024 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ — $ — $ 1 $ 2 $ 3 Foreign currency exchange rate 1 (1) 13 — 41 Total cash flow hedges 1 (1) 14 2 44 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (319) — — — — Foreign currency exchange rate 14 (6) — — — Credit 1 — — — — Equity market 362 — — — — Embedded (714) — — — — Total non-qualifying hedges (656) (6) — — — Total $ (655) $ (7) $ 14 $ 2 $ 44 Three Months Ended June 30, 2023 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ (2) $ — $ 1 $ — $ (1) Foreign currency exchange rate 5 (5) 13 — (49) Total cash flow hedges 3 (5) 14 — (50) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (551) — — — — Foreign currency exchange rate 9 (6) — — — Credit 9 — — — — Equity market 433 — — — — Embedded (1,703) — — — — Total non-qualifying hedges (1,803) (6) — — — Total $ (1,800) $ (11) $ 14 $ — $ (50) Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Policyholder Benefits and Claims Amount of Gains (Losses) Deferred in AOCI (In millions) Six Months Ended June 30, 2024 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ 3 $ — $ 1 $ 4 $ 12 Foreign currency exchange rate 1 (2) 26 — 85 Total cash flow hedges 4 (2) 27 4 97 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (1,101) — — — — Foreign currency exchange rate 45 (9) — — — Credit 7 — — — — Equity market 1,073 — — — — Embedded (2,600) — — — — Total non-qualifying hedges (2,576) (9) — — — Total $ (2,572) $ (11) $ 27 $ 4 $ 97 Six Months Ended June 30, 2023 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ (2) $ — $ 2 $ — $ 1 Foreign currency exchange rate 4 (5) 27 — (91) Total cash flow hedges 2 (5) 29 — (90) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate 59 — — — — Foreign currency exchange rate 4 4 — — — Credit 19 — — — — Equity market 324 — — — — Embedded (2,793) — — — — Total non-qualifying hedges (2,387) 4 — — — Total $ (2,385) $ (1) $ 29 $ — $ (90) At June 30, 2024 and December 31, 2023, the Company held no qualified derivatives hedging exposure to future cash flows for forecasted asset purchases. At June 30, 2024 and December 31, 2023, the balance in AOCI associated with cash flow hedges was $443 million and $351 million, respectively. 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. 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 estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at: June 30, 2024 December 31, 2023 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Maximum Weighted Estimated Maximum Weighted (Dollars in millions) Aaa/Aa/A $ 4 $ 416 1.1 $ 6 $ 419 1.6 Baa 14 652 4.8 19 958 4.9 Ba 2 24 2.5 2 24 3.0 Caa and Lower — 4 1.5 — 4 2.0 Total $ 20 $ 1,096 3.4 $ 27 $ 1,405 3.9 _______________ (1) The Company has written credit protection on both single name and index references. The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P and Fitch. 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. Counterparty Credit Risk The Company may be exposed to credit-related losses in the event of counterparty nonperformance on derivative instruments. Generally, the credit exposure is the fair value at the reporting date less any collateral received from the counterparty. The Company manages its credit risk by: (i) entering into derivative transactions with creditworthy counterparties governed by master netting agreements; (ii) trading through regulated exchanges and central clearing counterparties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review. See Note 9 for a description of the impact of credit risk on the valuation of derivatives. The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: Gross Amounts Not Offset on the Consolidated Balance Sheets Gross Amount Recognized Financial Instruments (1) Collateral Received/Pledged (2) Net Amount Securities Collateral Received/Pledged (3) Net Amount After Securities Collateral (In millions) June 30, 2024 Derivative assets $ 3,105 $ (2,480) $ (453) $ 172 $ (107) $ 65 Derivative liabilities $ 4,033 $ (2,480) $ — $ 1,553 $ (1,544) $ 9 December 31, 2023 Derivative assets $ 3,506 $ (3,112) $ (164) $ 230 $ (194) $ 36 Derivative liabilities $ 4,925 $ (3,112) $ (8) $ 1,805 $ (1,805) $ — _______________ (1) Represents amounts subject to an enforceable master netting agreement or similar agreement. (2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement. (3) Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received. The Company’s collateral arrangements 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. Certain of these arrangements also include credit-contingent provisions which permit the party with positive fair value to terminate the derivative at the current fair value or demand immediate full collateralization from the party in a net liability position, in the event that the financial strength or credit rating of the party in a net liability position falls below a certain level. The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at: June 30, 2024 December 31, 2023 (In millions) Estimated fair value of derivatives in a net liability position (1) $ 1,553 $ 1,813 Estimated fair value of collateral provided (2): Fixed maturity securities $ 3,943 $ 4,811 _______________ (1) After taking into consideration the existence of netting agreements. (2) Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately. Additionally, the Company is required to pledge initial margin for certain new over-the-counter (“OTC”) bilateral contracts between two counterparties (“OTC-bilateral”) derivative transactions to third-party custodians. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 9. Fair Value Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. 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 are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy. June 30, 2024 Fair Value Hierarchy Total Estimated Level 1 Level 2 Level 3 (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 35,266 $ 904 $ 36,170 Foreign corporate — 11,545 461 12,006 U.S. government and agency 2,798 4,428 — 7,226 RMBS — 7,771 23 7,794 CMBS — 6,315 68 6,383 ABS — 6,047 415 6,462 State and political subdivision — 3,559 — 3,559 Foreign government — 960 21 981 Total fixed maturity securities 2,798 75,891 1,892 80,581 Equity securities 52 9 24 85 Short-term investments 779 611 — 1,390 Derivative assets: (1) Interest rate — 219 — 219 Foreign currency exchange rate — 511 6 517 Credit — 16 4 20 Equity market — 2,550 — 2,550 Total derivative assets — 3,296 10 3,306 Embedded derivatives on index-linked annuities (2) — — 38 38 Market risk benefit assets — — 916 916 Separate account assets 21 88,239 — 88,260 Total assets $ 3,650 $ 168,046 $ 2,880 $ 174,576 Liabilities Market risk benefit liabilities $ — $ — $ 8,708 $ 8,708 Derivative liabilities: (1) Interest rate — 2,056 — 2,056 Foreign currency exchange rate — 23 — 23 Equity market — 2,050 — 2,050 Total derivative liabilities — 4,129 — 4,129 Embedded derivatives on index-linked annuities (2) — — 10,621 10,621 Total liabilities $ — $ 4,129 $ 19,329 $ 23,458 December 31, 2023 Fair Value Hierarchy Total Estimated Level 1 Level 2 Level 3 (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 34,760 $ 995 $ 35,755 Foreign corporate — 11,340 325 11,665 U.S. government and agency 3,786 4,633 — 8,419 RMBS — 7,415 15 7,430 CMBS — 6,371 39 6,410 ABS — 6,080 326 6,406 State and political subdivision — 3,874 — 3,874 Foreign government — 996 36 1,032 Total fixed maturity securities 3,786 75,469 1,736 80,991 Equity securities 55 22 25 102 Short-term investments 614 555 — 1,169 Derivative assets: (1) Interest rate — 245 — 245 Foreign currency exchange rate — 437 12 449 Credit — 21 6 27 Equity market — 2,993 — 2,993 Total derivative assets — 3,696 18 3,714 Embedded derivatives on index-linked annuities (2) — — — — Market risk benefit assets — — 656 656 Separate account assets 20 88,251 — 88,271 Total assets $ 4,475 $ 167,993 $ 2,435 $ 174,903 Liabilities Market risk benefit liabilities $ — $ — $ 10,323 $ 10,323 Derivative liabilities: (1) Interest rate — 2,209 — 2,209 Foreign currency exchange rate — 55 — 55 Equity market — 2,824 — 2,824 Total derivative liabilities — 5,088 — 5,088 Embedded derivatives on index-linked annuities (2) — — 8,186 8,186 Total liabilities $ — $ 5,088 $ 18,509 $ 23,597 _______________ (1) Derivative assets are reported in other invested assets and derivative liabilities are reported in other liabilities. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets. (2) 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 its valuation service providers. 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. In addition, the Chief Accounting Officer periodically reports to the Audit Committee of Brighthouse Financial, Inc.’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. Prices received are assessed to determine if they represent a reasonable estimate of fair value. Several controls are performed, 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 a 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. A formal process is also applied 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, the last available price will be used. Additional controls are performed, such as, 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 six months ended June 30, 2024. Determination of Fair Value Fixed Maturity Securities 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 maturity securities 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 and Short-term Investments The fair value for actively traded equity securities 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, fair values are determined using a market approach and are valued based on a variety of observable inputs as described below. Equity securities and short-term investments: Fair value is determined using third-party commercial pricing services, with the primary input being quoted prices in markets that are not active. 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 OTC market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are OTC-bilateral. 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. Market Risk Benefits MRBs principally include guaranteed minimum benefits on variable annuity contracts including benefits reinsured related to these guarantees. The estimated fair value of variable annuity guarantees accounted for as MRBs is determined based on the present value of projected future benefits less the present value of projected future fees attributable to the guarantees. At policy inception, the Company determines an attributed fee ratio by solving for a percentage of projected future rider fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. To the extent the rider fees are insufficient, the Company may also include fees related to mortality and expense charges in the attributed fee ratio, provided the total fees included in the calculation do not exceed total contract fees and assessments collected from the contract holder. Any additional fees not included in the attributed fee ratio are considered revenue and reported in universal life and investment-type product policy fees. The attributed fee ratio is not updated in subsequent periods. The Company updates the estimated fair value of variable annuity guarantees in subsequent periods by projecting future benefits using capital markets inputs and actuarial assumptions including expectations of policyholder behavior. A risk neutral valuation methodology is used to project the cash flows from the guarantees under multiple capital markets scenarios. The reported estimated fair value is then determined by taking the present value of these 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. The valuation of MRBs includes an adjustment for the risk that the Company fails to satisfy its obligations, which is referred to as nonperformance risk. The nonperformance risk adjustment is captured as an additional spread applied to the risk-free rate in determining the rate to discount the cash flows of the liability. The spread over the risk-free rate is based on the Company’s creditworthiness taking into consideration publicly available information relating to spreads in the secondary market for Brighthouse Financial’s debt. These observable spreads are then adjusted, as necessary, to reflect the financial strength ratings of the issuing insurance subsidiaries as compared to the credit rating of Brighthouse Financial. Risk margins are established to capture the non-capital markets risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties in certain actuarial assumptions. The establishment of risk margins requires the use of significant actuarial judgment, including assumptions of the amount needed to cover the guarantees. Actuarial assumptions are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of variable annuity guarantees are updated quarterly through net income, except for the change attributable to the Company’s nonperformance risk, which is reported in OCI. Embedded Derivatives Embedded derivatives include crediting rates associated with index-linked annuity contracts. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The crediting rates associated with these features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract. These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets. The estimated fair value of crediting rates associated with index-linked annuities is determined using a combination of an option pricing model and an option-budget approach. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk. Actuarial assumptions including policyholder behavior and expectations for renewals at the end of the term period are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of crediting rate embedded derivatives are updated quarterly through net income. 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) 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) were as follows at: June 30, 2024 December 31, 2023 Impact of Valuation Techniques Significant Range Range Market Risk Benefits Variable annuity guaranteed minimum benefits • Option pricing techniques • Mortality rates 0.04% - 12.90% 0.04% - 12.90% Decrease (1) • Lapse rates 1.00% - 22.80% 1.00% - 22.80% Decrease (2) • Utilization rates 0.00% - 25.00% 0.00% - 25.00% Increase (3) • Withdrawal rates 0.00% - 10.00% 0.00% - 10.00% (4) • Long-term equity volatilities 11.83% - 27.29% 12.59% - 22.50% Increase (5) • Nonperformance risk spread 0.56% - 1.47% 0.76% - 1.63% Decrease (6) Embedded Derivatives Index-linked annuity crediting rates • Option pricing techniques • Mortality rates 0.03% - 9.24% 0.03% - 9.24% Decrease (1) • Lapse rates 1.00% - 62.30% 1.00% - 62.30% Decrease (2) • Withdrawal rates 0.50% - 9.00% 0.50% - 9.00% (4) • Nonperformance risk spread 0.30% - 1.82% 0.45% - 1.74% Decrease (6) _______________ (1) Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement. (2) The lapse rate range reflects base lapse rates for major product categories for duration 1-20. 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. For variable annuity guarantees, 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. (3) The utilization rate assumption for variable annuity guarantees estimates the percentage of contract holders with a guaranteed minimum income benefit (“GMIB”) or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization 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. (4) 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 variable annuity guaranteed minimum withdrawal benefits, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For variable annuity guaranteed minimum accumulation benefits and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (5) 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 MRBs. (6) Nonperformance risk spread varies by duration. 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 MRB or embedded derivative. The Company does not develop unobservable inputs used in measuring fair value for all other assets and liabilities classified within Level 3; therefore, these are not included in the table above. The other Level 3 assets and liabilities primarily included fixed maturity securities and derivatives. For fixed maturity securities valued based on non-binding broker quotes, an increase (decrease) in credit spreads would result in a (lower) higher fair value. For derivatives valued based on third-party pricing models, an increase (decrease) in credit spreads would generally result in a (lower) higher fair value. The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (excluding MRBs disclosed in Note 4) were summarized as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) Structured Securities Foreign Equity Net Embedded Derivatives on Index-Linked Annuities (In millions) Three Months Ended June 30, 2024 Balance, beginning of period $ 1,267 $ 482 $ 21 $ 25 $ 11 $ (9,941) Total realized/unrealized gains (losses) included in net income (loss) (3) (4) (15) — — (1) (1) (714) Total realized/unrealized gains (losses) included in AOCI (2) 2 — — — — Purchases (5) 199 129 — — — — Sales (5) (43) (26) — — — — Issuances (5) — — — — — — Settlements (5) — — — — — 72 Transfers into Level 3 (6) 41 — — — — — Transfers out of Level 3 (6) (82) (81) — — — — Balance, end of period $ 1,365 $ 506 $ 21 $ 24 $ 10 $ (10,583) Three Months Ended June 30, 2023 Balance, beginning of period $ 1,936 $ 350 $ 39 $ 25 $ 33 $ (5,164) Total realized/unrealized gains (losses) included in net income (loss) (3) (4) (4) — — (1) (5) (1,703) Total realized/unrealized gains (losses) included in AOCI (22) (1) — — — — Purchases (5) 68 36 — 1 9 — Sales (5) (42) (3) (1) — — — Issuances (5) — — — — — — Settlements (5) — — — — — (19) Transfers into Level 3 (6) 26 2 — — — — Transfers out of Level 3 (6) (31) (13) — — (10) — Balance, end of period $ 1,931 $ 371 $ 38 $ 25 $ 27 $ (6,886) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2024 (7) $ (15) $ — $ — $ (2) $ (1) $ (881) Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2024 (7) $ (2) $ 1 $ — $ — $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2023 (7) $ (3) $ — $ — $ (2) $ (5) $ (1,802) Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2023 (7) $ (24) $ (1) $ — $ — $ — $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) Structured Securities Foreign Equity Net Embedded Derivatives on Index-Linked Annuities (In millions) Six Months Ended June 30, 2024 Balance, beginning of period $ 1,320 $ 380 $ 36 $ 25 $ 18 $ (8,186) Total realized/unrealized gains (losses) included in net income (loss) (3) (4) (19) 1 — (1) (3) (2,600) Total realized/unrealized gains (losses) included in AOCI (9) 2 — — — — Purchases (5) 238 207 — — 1 — Sales (5) (84) (31) — — — — Issuances (5) — — — — — — Settlements (5) — — — — — 203 Transfers into Level 3 (6) 55 — — — — — Transfers out of Level 3 (6) (136) (53) (15) — (6) — Balance, end of period $ 1,365 $ 506 $ 21 $ 24 $ 10 $ (10,583) Six Months Ended June 30, 2023 Balance, beginning of period $ 1,787 $ 365 $ 38 $ 27 $ 35 $ (3,932) Total realized/unrealized gains (losses) included in net income (loss) (3) (4) (3) — — (3) (5) (2,793) Total realized/unrealized gains (losses) included in AOCI 7 1 1 — — — Purchases (5) 210 52 — 1 9 — Sales (5) (73) (7) (1) — — — Issuances (5) — — — — — — Settlements (5) — — — — — (161) Transfers into Level 3 (6) 56 2 — — — — Transfers out of Level 3 (6) (53) (42) — — (12) — Balance, end of period $ 1,931 $ 371 $ 38 $ 25 $ 27 $ (6,886) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2024 (7) $ (18) $ — $ — $ (2) $ (3) $ (2,921) Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2024 (7) $ (19) $ — $ — $ — $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2023 (7) $ (2) $ (1) $ — $ (3) $ (5) $ (2,968) Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2023 (7) $ 1 $ — $ 1 $ — $ — $ — _______________ (1) Comprised of U.S. and foreign corporate securities. (2) Freestanding derivative assets and liabilities are reported net for purposes of the rollforward. (3) Amortization of premium/accretion of discount is included in net investment income. Changes in the allowance for credit losses and direct write-offs are 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 derivative gains (losses). (4) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (5) 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. (6) 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 out of Level 3 in the same period are excluded from the rollforward. (7) Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). 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 of Financial Instruments Carried at Other Than Fair Value The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income and payables for collateral under securities loaned and other transactions. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure. 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: June 30, 2024 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 22,641 $ — $ — $ 20,592 $ 20,592 Policy loans $ 1,470 $ — $ 642 $ 925 $ 1,567 Other invested assets $ 240 $ — $ 238 $ 2 $ 240 Premiums, reinsurance and other receivables $ 8,206 $ — $ 118 $ 8,380 $ 8,498 Liabilities Policyholder account balances $ 32,467 $ — $ — $ 32,050 $ 32,050 Long-term debt $ 3,155 $ — $ 2,728 $ — $ 2,728 Other liabilities $ 1,327 $ — $ 660 $ 667 $ 1,327 Separate account liabilities $ 1,259 $ — $ 1,259 $ — $ 1,259 December 31, 2023 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 22,508 $ — $ — $ 20,609 $ 20,609 Policy loans $ 1,331 $ — $ 518 $ 937 $ 1,455 Other invested assets $ 257 $ — $ 245 $ 12 $ 257 Premiums, reinsurance and other receivables $ 7,577 $ — $ 88 $ 7,636 $ 7,724 Liabilities Policyholder account balances $ 31,471 $ — $ — $ 30,606 $ 30,606 Long-term debt $ 3,156 $ — $ 2,769 $ — $ 2,769 Other liabilities $ 1,142 $ — $ 463 $ 679 $ 1,142 Separate account liabilities $ 1,150 $ — $ 1,150 $ — $ 1,150 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Equity | 10. Equity Preferred Stock Preferred stock shares authorized, issued and outstanding were as follows at both June 30, 2024 and December 31, 2023: Shares Authorized Shares Issued Shares Outstanding 6.600% Non-Cumulative Preferred Stock, Series A 17,000 17,000 17,000 6.750% Non-Cumulative Preferred Stock, Series B 16,100 16,100 16,100 5.375% Non-Cumulative Preferred Stock, Series C 23,000 23,000 23,000 4.625% Non-Cumulative Preferred Stock, Series D 14,000 14,000 14,000 Not designated 99,929,900 — — Total 100,000,000 70,100 70,100 The per share and aggregate dividends declared for BHF’s preferred stock by series were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Series Per Share Aggregate Per Share Aggregate Per Share Aggregate Per Share Aggregate (In millions, except per share data) A $ 412.50 $ 7 $ 412.50 $ 7 $ 825.00 $ 14 $ 825.00 $ 14 B $ 421.88 7 $ 421.88 7 $ 843.76 14 $ 843.76 14 C $ 335.94 7 $ 335.94 7 $ 671.88 15 $ 671.88 15 D $ 289.06 4 $ 289.06 4 $ 578.12 8 $ 578.12 8 Total $ 25 $ 25 $ 51 $ 51 Common Stock Repurchase Program During the six months ended June 30, 2024 and 2023, BHF repurchased 2,634,041 and 2,684,792 shares, respectively, of its common stock through open market purchases pursuant to Rule 10b5-1 plans for $126 million for both periods. At June 30, 2024, BHF had $667 million remaining under its common stock repurchase program. Accumulated Other Comprehensive Income (Loss) Information regarding changes in the balances of each component of AOCI was as follows: Three Months Ended June 30, 2024 Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Changes in Nonperformance Risk on Market Risk Benefits Changes in Discount Rates on the Liability for Future Policy Benefits Other (2) Total (In millions) Balance at March 31, 2024 $ (4,937) $ 317 $ (1,711) $ 969 $ (51) $ (5,413) OCI before reclassifications (475) 44 110 233 (2) (90) Deferred income tax benefit (expense) (3) 100 (9) (23) (49) — 19 AOCI before reclassifications, net of income tax (5,312) 352 (1,624) 1,153 (53) (5,484) Amounts reclassified from AOCI 85 (2) — — 1 84 Deferred income tax benefit (expense) (3) (18) — — — (1) (19) Amounts reclassified from AOCI, net of income tax 67 (2) — — — 65 Balance at June 30, 2024 $ (5,245) $ 350 $ (1,624) $ 1,153 $ (53) $ (5,419) Three Months Ended June 30, 2023 Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Changes in Nonperformance Risk on Market Risk Benefits Changes in Discount Rates on the Liability for Future Policy Benefits Other (2) Total (In millions) Balance at March 31, 2023 $ (5,028) $ 472 $ (1,383) $ 706 $ (55) $ (5,288) OCI before reclassifications (895) (50) (116) 251 1 (809) Deferred income tax benefit (expense) (3) 187 11 24 (52) — 170 AOCI before reclassifications, net of income tax (5,736) 433 (1,475) 905 (54) (5,927) Amounts reclassified from AOCI 59 (4) — — 2 57 Deferred income tax benefit (expense) (3) (12) 1 — — — (11) Amounts reclassified from AOCI, net of income tax 47 (3) — — 2 46 Balance at June 30, 2023 $ (5,689) $ 430 $ (1,475) $ 905 $ (52) $ (5,881) Six Months Ended June 30, 2024 Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Changes in Nonperformance Risk on Market Risk Benefits Changes in Discount Rates on the Liability for Future Policy Benefits Other (2) Total (In millions) Balance at December 31, 2023 $ (4,317) $ 277 $ (1,881) $ 720 $ (45) $ (5,246) OCI before reclassifications (1,295) 97 325 548 (11) (336) Deferred income tax benefit (expense) (3) 271 (20) (68) (115) 2 70 AOCI before reclassifications, net of income tax (5,341) 354 (1,624) 1,153 (54) (5,512) Amounts reclassified from AOCI 121 (5) — — 2 118 Deferred income tax benefit (expense) (3) (25) 1 — — (1) (25) Amounts reclassified from AOCI, net of income tax 96 (4) — — 1 93 Balance at June 30, 2024 $ (5,245) $ 350 $ (1,624) $ 1,153 $ (53) $ (5,419) Six Months Ended June 30, 2023 Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Changes in Nonperformance Risk on Market Risk Benefits Changes in Discount Rates on the Liability for Future Policy Benefits Other (2) Total (In millions) Balance at December 31, 2022 $ (6,194) $ 504 $ (1,378) $ 1,020 $ (58) $ (6,106) OCI before reclassifications 519 (90) (123) (146) 3 163 Deferred income tax benefit (expense) (3) (109) 19 26 31 (1) (34) AOCI before reclassifications, net of income tax (5,784) 433 (1,475) 905 (56) (5,977) Amounts reclassified from AOCI 120 (4) — — 5 121 Deferred income tax benefit (expense) (3) (25) 1 — — (1) (25) Amounts reclassified from AOCI, net of income tax 95 (3) — — 4 96 Balance at June 30, 2023 $ (5,689) $ 430 $ (1,475) $ 905 $ (52) $ (5,881) __________________ (1) See Note 7 for information on offsets to investments related to future policy benefits. (2) Includes OCI related to foreign currency translation and defined benefit plan gains and losses. (3) The effects of income taxes on amounts recorded to AOCI are also recognized in AOCI. These income tax effects are released from AOCI when the related activity is reclassified into results from operations. Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statements of Operations and Comprehensive Income (Loss) Locations Three Months Ended Six Months Ended 2024 2023 2024 2023 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ (78) $ (46) $ (112) $ (114) Net investment gains (losses) Net unrealized investment gains (losses) (7) (13) (9) (6) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax (85) (59) (121) (120) Income tax (expense) benefit 18 12 25 25 Net unrealized investment gains (losses), net of income tax (67) (47) (96) (95) Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps — (2) 3 (2) Net derivative gains (losses) Interest rate swaps 1 1 1 2 Net investment income Foreign currency swaps 1 5 1 4 Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax 2 4 5 4 Income tax (expense) benefit — (1) (1) (1) Gains (losses) on cash flow hedges, net of income tax 2 3 4 3 Defined benefit plans adjustment: Amortization of net actuarial gains (losses) (1) (2) (2) (5) Amortization of defined benefit plans, before income tax (1) (2) (2) (5) Income tax (expense) benefit 1 — 1 1 Amortization of defined benefit plans, net of income tax — (2) (1) (4) Total reclassifications, net of income tax $ (65) $ (46) $ (93) $ (96) |
Other Revenues and Other Expens
Other Revenues and Other Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Other Revenues and Other Expenses | 11. Other Revenues and Other Expenses Other Revenues The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b-1 fees”) for providing certain services to customers and distributors of the Funds. The 12b-1 fees are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund. The percentage is specified in the contract between the Company and the Funds. Payments are generally collected when due and are neither refundable nor able to offset future fees. To earn these fees, the Company performs services such as responding to phone inquiries, maintaining records, providing information to distributors and shareholders about fund performance and providing training to account managers and sales agents. The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b-1 fees. Other revenues consisted primarily of 12b-1 fees of $69 million and $136 million for the three months and six months ended June 30, 2024, respectively, and $66 million and $133 million for the three months and six months ended June 30, 2023, respectively, of which substantially all were reported in the Annuities segment. Other Expenses Information on other expenses was as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (In millions) Compensation $ 101 $ 106 $ 212 $ 204 Contracted services and other labor costs 70 79 133 148 Transition services agreements 5 8 12 19 Premium and other taxes, licenses and fees 13 20 24 34 Separate account fees 91 92 183 184 Volume related costs, excluding compensation, net of DAC capitalization 138 143 285 280 Interest expense on debt 38 38 76 76 Other 12 16 50 35 Total other expenses $ 468 $ 502 $ 975 $ 980 Capitalization of DAC See Note 6 for additional information on the capitalization of DAC. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 12. Earnings Per Common Share The calculation of earnings per common share was as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (In millions, except share and per share data) Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ 9 $ (200) $ (510) $ (725) Weighted average common shares outstanding — basic 61,956,829 66,722,046 62,496,801 67,294,437 Dilutive effect of share-based awards 298,501 — — — Weighted average common shares outstanding — diluted 62,255,330 66,722,046 62,496,801 67,294,437 Earnings per common share: Basic $ 0.12 $ (3.01) $ (8.17) $ (10.77) Diluted $ 0.12 $ (3.01) $ (8.17) $ (10.77) For the three months ended June 30, 2024, weighted average shares used for calculating diluted earnings per common share excludes 187,371 shares underlying out-of-the-money stock options, as the inclusion of such shares would be antidilutive under the treasury stock method to the earnings per common share calculation due to the average share price for the three months ended June 30, 2024. For the six months ended June 30, 2024 and the three months and six months ended June 30, 2023, basic loss per common share equaled diluted loss per common share. The diluted shares were not included in the per share calculation for these periods as the inclusion of such shares would have an antidilutive effect. |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Commitments and Guarantees | 13. Contingencies, Commitments and Guarantees Contingencies Litigation The Company is a defendant in a number of litigation matters. In some of the matters, large 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. The Company also receives and responds to subpoenas or other inquiries seeking a broad range of information from various state and federal regulators, agencies and officials. The issues involved in information requests and regulatory matters vary widely, but can include inquiries or investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. The Company cooperates in these inquiries. 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 June 30, 2024. 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. In addition to amounts accrued for probable and reasonably estimable losses, as of June 30, 2024, the Company estimates the aggregate range of reasonably possible losses to be up to approximately $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. 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 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 consolidated financial statements for all probable and reasonably estimable losses for sales practices matters. Cost of Insurance Class Actions Richard A. Newton v. Brighthouse Life Insurance Company (U.S. District Court, Northern District of Georgia, Atlanta Division, filed May 8, 2020). Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company, a subsidiary of Brighthouse Financial, Inc. Plaintiff was the owner of a universal life insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff seeks to certify a class of all persons who own or owned life insurance policies issued where the terms of the life insurance policy provide or provided, among other things, a guarantee that the cost of insurance rates would not be increased by more than a specified percentage in any contract year. Plaintiff also alleges that cost of insurance charges were based on improper factors and should have decreased over time due to improving mortality but did not . Plaintiff alleges, among other things, causes of action for breach of contract, fraud, suppression and concealment, and violation of the Georgia Racketeer Influenced and Corrupt Organizations Act. Plaintiff seeks to recover damages, including punitive damages, interest and treble damages, attorneys’ fees, and injunctive and declaratory relief. Brighthouse Life Insurance Company filed a motion to dismiss in June 2020, which was granted in part and denied in part in March 2021. Plaintiff was granted leave to amend the complaint. On January 18, 2023, plaintiff filed a motion on consent to amend the second amended class action complaint to narrow the scope of the class sought to those persons who own or owned life insurance policies issued in Georgia. The motion was granted on January 23, 2023, and the third amended class action complaint was filed on January 23, 2023. The Company intends to vigorously defend this matter. Lawrence Martin v. Brighthouse Life Insurance Company (U.S. District Court, Southern District of New York, filed April 6, 2021). Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company. Plaintiff is the owner of a universal life insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff seeks to certify a class of similarly situated owners of universal life insurance policies issued or administered by defendants and alleges that cost of insurance charges were based on improper factors and should have decreased over time due to improving mortality but did not. Plaintiff alleges, among other things, causes of action for breach of contract, breach of the covenant of good faith and fair dealing, and unjust enrichment. Plaintiff seeks to recover compensatory damages, attorney’s fees, interest, and equitable relief including a constructive trust. Brighthouse Life Insurance Company filed a motion to dismiss in June 2021, which was denied in February 2022. Brighthouse Life Insurance Company of NY, a subsidiary of Brighthouse Life Insurance Company, was initially named as a defendant when the lawsuit was filed, but was dismissed as a defendant, without prejudice, in April 2022. The Company intends to vigorously defend this matter. MOVEit Data Security Incident Litigation Kennedy v. Progress Software Corporation, et al . (U.S. District Court, District of Massachusetts, filed October 3, 2023). BHF has been named as a defendant in a purported class action lawsuit. The action relates to a data security incident at an alleged third-party vendor, PBI Research Services (“PBI”), and allegedly involves the MOVEit file transfer system that PBI uses in its provision of services (“MOVEit Incident”). As it relates to BHF, plaintiff seeks to certify a subclass of persons whose private information was allegedly maintained by BHF and accessed or acquired in connection with the MOVEit Incident. Plaintiff alleges, among other things, that BHF negligently chose to utilize PBI to store and transfer plaintiff’s and purported class members’ private information despite PBI’s use of the MOVEit software which plaintiff contends contained security vulnerabilities. The complaint asserts claims against BHF for negligence, negligence per se, and unjust enrichment, and plaintiff seeks declaratory and injunctive relief, damages, attorneys’ fees and prejudgment interest. The Company intends to vigorously defend this matter. Summary Various litigations, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s 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 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 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 consolidated net income or cash flows in particular quarterly or annual periods. Other Loss Contingencies As with litigation and regulatory loss contingencies, the Company considers establishing liabilities for loss contingencies associated with disputes or other matters involving third parties, including counterparties to contractual arrangements entered into by the Company (e.g., third-party vendors and reinsurers), as well as with tax or other authorities (“other loss contingencies”). The Company establishes liabilities for such other loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In matters where it is not probable, but is reasonably possible that a loss will be incurred and the amount of loss can be reasonably estimated, such losses or range of losses are disclosed, and no accrual is made. In the absence of sufficient information to support an assessment of the reasonably possible loss or range of loss, no accrual is made and no loss or range of loss is disclosed. On a quarterly basis, the Company reviews relevant information with respect to other loss contingencies and, when applicable, updates its accruals, disclosures and estimates of reasonably possible losses or estimated ranges of loss based on such reviews. The Company’s tax-related matters have involved disputes with taxing authorities, ongoing audits, evaluation of filing positions and any potential assessments related thereto. In the matters where the Company’s subsidiaries are acting as the reinsured or the reinsurer, such reinsurance matters have involved assertions by third parties primarily related to rates, fees or reinsured benefit calculations, and certain of such reinsurance matters have resulted in arbitration. As of June 30, 2024, the Company estimates the range of reasonably possible losses in excess of the amounts accrued for certain other loss contingencies to be from zero up to approximately $75 million relating to certain tax matters, as described above. For certain other matters, the Company may not currently be able to estimate the reasonably possible loss or estimated range of loss until developments in such matters have provided sufficient information to support an assessment of such loss. During the first quarter of 2024, an arbitration panel ruled in favor of a reinsurer seeking a premium rate increase retroactive to September 2019 resulting in a $187 million loss, of which $167 million was reported in universal life and investment product-type policy fees and $20 million was reported in other expenses. Commitments Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $307 million and $377 million at June 30, 2024 and December 31, 2023, respectively. Commitments to Fund Partnership Investments, Bank Credit Facilities 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 at both June 30, 2024 and December 31, 2023. 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 with a cumulative maximum of up to $87 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 bylaws. 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 $1 million at both June 30, 2024 and December 31, 2023 for indemnities, guarantees and commitments. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 34 | $ (175) | $ (459) | $ (674) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Business, Basis of Presentati_2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | 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 interim condensed 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 accompanying interim condensed consolidated financial statements include the accounts of Brighthouse Financial, as well as partnerships and limited liability companies (“LLC”) that the Company controls. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for investments in limited partnerships and LLCs 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. When the Company has virtually no influence over the investee’s operations, the investment is carried at fair value. The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2023 consolidated balance sheet data was derived from audited consolidated financial statements included in Brighthouse Financial, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2023 Annual Report. |
New Accounting Pronouncements, Policy [Policy Text Block] | Adoption of New Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“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. There were no significant ASUs adopted during the period ended June 30, 2024. Future Adoption of New Accounting Pronouncements In December 2023, the FASB issued new guidance on Income Tax Disclosures (ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures) . This ASU updates the required income tax disclosures to include disclosure of income taxes paid disaggregated by jurisdiction and greater disaggregation of information in the required rate reconciliation. This ASU is effective for fiscal years starting January 1, 2025, and will be applied on a prospective basis. The Company is currently evaluating the impact of this guidance on its financial statements. In November 2023, the FASB issued new guidance on Segment Reporting Disclosures (ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures) . This ASU updates reportable segment disclosures primarily through enhanced disclosures about significant segment expenses. This ASU does not change how a company identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. This ASU is effective for fiscal years starting January 1, 2024, and for interim periods starting January 1, 2025, and will be applied on a retrospective basis. The Company is currently evaluating the impact of this guidance on its financial statements. |
Investments, Policy [Policy Text Block] | 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. For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. 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 allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in other comprehensive income (“OCI”). Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses). Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses. Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities. The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible. The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two years is used with an input reversion period of one year. Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, modifications, foreclosure probable loans, and loans with dissimilar risk characteristics. Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components. For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a non-credit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments. Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized. |
Derivatives, Policy [Policy Text Block] | Types of Derivative Instruments and Derivative Strategies The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks. Commonly used derivative instruments include, but are not necessarily limited to: • Interest rate derivatives: swaps, floors, caps, futures, swaptions and forwards; • Foreign currency exchange rate derivatives: forwards and swaps; • Equity market derivatives: options, total return swaps and hybrid options; and • Credit derivatives: single and index reference credit default swaps. Counterparty Credit Risk |
Income Tax, Policy [Policy Text Block] | The effects of income taxes on amounts recorded to AOCI are also recognized in AOCI. These income tax effects are released from AOCI when the related activity is reclassified into results from operations. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Operating results by segment, as well as Corporate & Other, were as follows: Three Months Ended June 30, 2024 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings (loss) $ 410 $ 52 $ (37) $ 18 $ 443 Provision for income tax expense (benefit) 78 10 (7) (9) 72 Post-tax adjusted earnings (loss) 332 42 (30) 27 371 Less: Net income (loss) attributable to noncontrolling interests — — — — — Less: Preferred stock dividends — — — 25 25 Adjusted earnings (loss) $ 332 $ 42 $ (30) $ 2 346 Adjustments for: Net investment gains (losses) (120) Net derivative gains (losses), excluding investment hedge adjustments of $9 (671) Change in market risk benefits 356 Market value adjustments 6 Provision for income tax (expense) benefit 92 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ 9 Interest revenue $ 702 $ 121 $ 315 $ 178 Interest expense $ — $ — $ — $ 38 Three Months Ended June 30, 2023 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings (loss) $ 357 $ 18 $ (21) $ 5 $ 359 Provision for income tax expense (benefit) 66 3 (5) (1) 63 Post-tax adjusted earnings (loss) 291 15 (16) 6 296 Less: Net income (loss) attributable to noncontrolling interests — — — — — Less: Preferred stock dividends — — — 25 25 Adjusted earnings (loss) $ 291 $ 15 $ (16) $ (19) 271 Adjustments for: Net investment gains (losses) (64) Net derivative gains (losses), excluding investment hedge adjustments of $23 (1,834) Change in market risk benefits 1,300 Market value adjustments 2 Provision for income tax (expense) benefit 125 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ (200) Interest revenue $ 633 $ 119 $ 316 $ 151 Interest expense $ — $ — $ — $ 38 Six Months Ended June 30, 2024 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings (loss) $ 795 $ 6 $ (469) $ 29 $ 361 Provision for income tax expense (benefit) 150 — (98) 8 60 Post-tax adjusted earnings (loss) 645 6 (371) 21 301 Less: Net income (loss) attributable to noncontrolling interests — — — 2 2 Less: Preferred stock dividends — — — 51 51 Adjusted earnings (loss) $ 645 $ 6 $ (371) $ (32) 248 Adjustments for: Net investment gains (losses) (162) Net derivative gains (losses), excluding investment hedge adjustments of $22 (2,605) Change in market risk benefits 1,796 Market value adjustments 10 Provision for income tax (expense) benefit 203 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ (510) Interest revenue $ 1,378 $ 228 $ 631 $ 346 Interest expense $ — $ — $ — $ 76 Six Months Ended June 30, 2023 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings (loss) $ 744 $ 18 $ (155) $ 10 $ 617 Provision for income tax expense (benefit) 139 2 (33) (10) 98 Post-tax adjusted earnings (loss) 605 16 (122) 20 519 Less: Net income (loss) attributable to noncontrolling interests — — — 2 2 Less: Preferred stock dividends — — — 51 51 Adjusted earnings (loss) $ 605 $ 16 $ (122) $ (33) 466 Adjustments for: Net investment gains (losses) (160) Net derivative gains (losses), excluding investment hedge adjustments of $61 (2,447) Change in market risk benefits 1,106 Market value adjustments (6) Provision for income tax (expense) benefit 316 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ (725) Interest revenue $ 1,227 $ 219 $ 570 $ 300 Interest expense $ — $ — $ — $ 76 Total assets by segment, as well as Corporate & Other, were as follows at: June 30, 2024 December 31, 2023 (In millions) Annuities $ 162,276 $ 160,775 Life 25,131 25,504 Run-off 25,579 26,828 Corporate & Other 24,452 23,233 Total $ 237,438 $ 236,340 |
Reconciliation of Revenue from Segments to Consolidated | Total revenues by segment, as well as Corporate & Other, were as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (In millions) Annuities $ 1,314 $ 1,246 $ 2,618 $ 2,416 Life 297 312 514 616 Run-off 429 448 785 828 Corporate & Other 178 155 351 294 Adjustments (791) (1,898) (2,767) (2,607) Total $ 1,427 $ 263 $ 1,501 $ 1,547 |
Insurance Liabilities (Tables)
Insurance Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
Schedule of Liability for Future Policy Benefits, by Product Segment | Information regarding liability for future policy benefits (“LFPB”) for non-participating traditional and limited-payment contracts was as follows: Six Months Ended June 30, 2024 2023 Term and Whole Life Insurance Income Annuities Structured Settlement and Pension Risk Transfer Annuities Term and Whole Life Insurance Income Annuities Structured Settlement and Pension Risk Transfer Annuities (Dollars in millions) Present value of expected net premiums: Balance, beginning of period $ 2,974 $ — $ — $ 2,871 $ — $ — Beginning balance at original discount rate 3,234 — — 3,212 — — Effect of model refinements 4 — — — — — Effect of actual variances from expected experience 19 — — (8) — — Adjusted beginning of period balance 3,257 — — 3,204 — — Issuances 41 — — 49 — — Interest accrual 57 — — 55 — — Net premiums collected (189) — — (184) — — Ending balance at original discount rate 3,166 — — 3,124 — — Effect of changes in discount rate assumptions (341) — — (315) — — Balance, end of period $ 2,825 $ — $ — $ 2,809 $ — $ — Present value of expected future policy benefits: Balance, beginning of period $ 5,507 $ 3,754 $ 6,697 $ 5,279 $ 3,512 $ 6,793 Beginning balance at original discount rate 6,023 4,031 7,085 5,922 3,897 7,410 Effect of model refinements 9 — — — — — Effect of actual variances from expected experience 28 (1) (3) (10) (4) (37) Adjusted beginning of period balance 6,060 4,030 7,082 5,912 3,893 7,373 Issuances 43 197 — 50 182 — Interest accrual 110 76 152 107 72 158 Benefit payments (311) (201) (288) (251) (192) (301) Ending balance at original discount rate 5,902 4,102 6,946 5,818 3,955 7,230 Effect of changes in discount rate assumptions (688) (404) (721) (597) (355) (519) Balance, end of period $ 5,214 $ 3,698 $ 6,225 $ 5,221 $ 3,600 $ 6,711 Net liability for future policy benefits, end of period $ 2,389 $ 3,698 $ 6,225 $ 2,412 $ 3,600 $ 6,711 Less: Reinsurance recoverable, end of period 37 30 61 41 25 66 Net liability for future policy benefits, after reinsurance recoverable $ 2,352 $ 3,668 $ 6,164 $ 2,371 $ 3,575 $ 6,645 Weighted-average duration of liability 8.7 years 8.1 years 11.5 years 8.3 years 8.4 years 11.6 years Weighted-average interest accretion rate 3.95 % 4.00 % 4.46 % 3.95 % 3.92 % 4.46 % Current discount rate 5.46 % 5.46 % 5.56 % 5.18 % 5.19 % 5.20 % Gross premiums or assessments recognized during period $ 284 $ 247 $ — $ 307 $ 224 $ — Expected future gross premiums, undiscounted $ 5,953 $ — $ — $ 6,531 $ — $ — Expected future gross premiums, discounted $ 4,477 $ — $ — $ 4,837 $ — $ — Expected future benefit payments, undiscounted $ 8,163 $ 5,809 $ 13,483 $ 8,044 $ 5,608 $ 14,062 Expected future benefit payments, discounted $ 5,902 $ 4,102 $ 6,946 $ 5,818 $ 3,955 $ 7,230 Information regarding the additional insurance liabilities for universal life-type contracts with secondary guarantees was as follows: Six Months Ended June 30, 2024 2023 (Dollars in millions) Balance, beginning of period $ 7,607 $ 6,935 Beginning balance before the effect of unrealized gains and losses 7,784 7,175 Effect of actual variances from expected experience 67 60 Adjusted beginning of period balance 7,851 7,235 Interest accrual 190 175 Net assessments collected 215 206 Benefit payments (201) (195) Ending balance before the effect of unrealized gains and losses 8,055 7,421 Effect of unrealized gains and losses (250) (211) Balance, end of period 7,805 7,210 Less: Reinsurance recoverable, end of period 1,466 1,414 Net additional liability, after reinsurance recoverable $ 6,339 $ 5,796 Weighted-average duration of liability 6.6 years 6.7 years Weighted-average interest accretion rate 4.93 % 4.91 % Gross assessments recognized during period $ 542 $ 531 A reconciliation of the net LFPBs for non-participating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees reported in the preceding rollforward tables to LFPBs on the consolidated balance sheets was as follows at: June 30, 2024 2023 (In millions) Liabilities reported in the preceding rollforward tables $ 20,117 $ 19,933 Long-term care insurance (1) 5,224 5,606 ULSG liabilities, including liability for profits followed by losses 2,525 2,565 Participating whole life insurance (2) 3,161 3,031 Deferred profit liabilities 476 373 Other 383 391 Total liability for future policy benefits $ 31,886 $ 31,899 _______________ (1) Includes liabilities related to fully reinsured individual long-term care insurance. See Note 2. (2) Participating whole life insurance uses an interest assumption based on the non-forfeiture interest rate, ranging from 3.5% to 4.5%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts, and also includes a liability for terminal dividends. Participating whole life insurance represented 3% of the Company’s life insurance in-force at both June 30, 2024 and 2023, and 41% of gross traditional life insurance premiums for both the six months ended June 30, 2024 and 2023. |
Policyholder Account Balance | Information regarding policyholder account balances was as follows: Universal Life Insurance Variable Annuities (1) Index-linked Annuities Fixed Rate Annuities ULSG Company-Owned Life Insurance (1) (Dollars in millions) Six Months Ended June 30, 2024 Balance, beginning of period $ 2,550 $ 4,307 $ 41,627 $ 14,672 $ 5,052 $ 653 Premiums and deposits 121 34 4,236 687 328 — Surrenders and withdrawals (49) (351) (2,510) (736) (10) — Benefit payments (27) (47) (151) (178) (39) (5) Net transfers from (to) separate account 31 59 — — — (1) Interest credited 48 54 291 281 82 18 Policy charges (108) (12) (9) — (499) (6) Changes related to embedded derivatives — — 2,605 — — — Balance, end of period $ 2,566 $ 4,044 $ 46,089 $ 14,726 $ 4,914 $ 659 Weighted-average crediting rate (2) 1.88 % 1.29 % 0.85 % 1.90 % 1.65 % 2.49 % Six Months Ended June 30, 2023 Balance, beginning of period $ 2,658 $ 4,908 $ 33,897 $ 14,274 $ 5,307 $ 641 Premiums and deposits 113 43 3,390 1,479 339 — Surrenders and withdrawals (90) (326) (1,613) (874) (12) — Benefit payments (42) (61) (117) (203) (55) (4) Net transfers from (to) separate account 22 11 — — — — Interest credited 8 78 203 229 122 15 Policy charges (110) (14) (4) — (513) (6) Changes related to embedded derivatives — — 2,793 — — — Balance, end of period $ 2,559 $ 4,639 $ 38,549 $ 14,905 $ 5,188 $ 646 Weighted-average crediting rate (2) 0.31 % 1.63 % 0.66 % 1.57 % 2.33 % 2.33 % _______________ (1) Includes liabilities related to separate account products where the contract holder elected a general account investment option. (2) Excludes the effects of embedded derivatives related to index-linked crediting rates. A reconciliation of policyholder account balances reported in the preceding rollforward table to the liability for policyholder account balances on the consolidated balance sheets was as follows at: June 30, 2024 2023 (In millions) Policyholder account balances reported in the preceding rollforward table $ 72,998 $ 66,486 Funding agreements classified as investment contracts 11,502 11,041 Institutional group annuities 343 — Other investment contract liabilities 1,022 1,116 Total policyholder account balances $ 85,865 $ 78,643 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums was as follows at: Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 to 50 Basis Points Above 51 to 150 Basis Points Above Greater than 150 Basis Points Above Total (In millions) June 30, 2024 Annuities (1): Less than 2.00% $ 616 $ 145 $ 282 $ 8,323 $ 9,366 2.00% to 3.99% 8,034 327 167 502 9,030 Greater than 3.99% 828 — — — 828 Total $ 9,478 $ 472 $ 449 $ 8,825 $ 19,224 Life insurance (2) (3): Less than 2.00% $ — $ — $ — $ 275 $ 275 2.00% to 3.99% — 500 49 134 683 Greater than 3.99% 1,566 — — — 1,566 Total $ 1,566 $ 500 $ 49 $ 409 $ 2,524 ULSG (3): Less than 2.00% $ — $ — $ — $ — $ — 2.00% to 3.99% 1,093 1,439 1,633 247 4,412 Greater than 3.99% 493 — — — 493 Total $ 1,586 $ 1,439 $ 1,633 $ 247 $ 4,905 December 31, 2023 Annuities (1): Less than 2.00% $ 697 $ 223 $ 310 $ 7,652 $ 8,882 2.00% to 3.99% 8,827 242 225 356 9,650 Greater than 3.99% 874 — — — 874 Total $ 10,398 $ 465 $ 535 $ 8,008 $ 19,406 Life insurance (2) (3): Less than 2.00% $ — $ — $ — $ 236 $ 236 2.00% to 3.99% — 492 49 136 677 Greater than 3.99% 1,595 — — — 1,595 Total $ 1,595 $ 492 $ 49 $ 372 $ 2,508 ULSG (3): Less than 2.00% $ — $ — $ — $ — $ — 2.00% to 3.99% 1,135 1,485 1,663 254 4,537 Greater than 3.99% 506 — — — 506 Total $ 1,641 $ 1,485 $ 1,663 $ 254 $ 5,043 _______________ (1) Includes policyholder account balances for fixed rate annuities and the fixed account portion of variable annuities. (2) Includes policyholder account balances for retained asset accounts, universal life policies and the fixed account portion of universal variable life insurance policies. (3) Amounts are gross of policy loans. |
Market Risk Benefits (Tables)
Market Risk Benefits (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
Market Risk Benefit, Activity | Information regarding MRB assets and liabilities associated with variable annuities was as follows: Six Months Ended June 30, 2024 2023 (Dollars in millions) Balance, beginning of period $ 9,701 $ 9,974 Balance, beginning of period, before effect of changes in nonperformance risk 7,326 8,230 Decrements (66) (54) Effect of actual different from expected experience 88 170 Effect of changes in interest rates (1,547) (147) Effect of changes in fund returns (649) (1,529) Issuances — (5) Effect of changes in risk margin (53) (18) Aging of the block and other 665 713 Balance, end of period, before effect of changes in nonperformance risk 5,764 7,360 Effect of changes in nonperformance risk 2,049 1,868 Balance, end of period 7,813 9,228 Less: Reinsurance recoverable, end of period 21 50 Balance, end of period, net of reinsurance (1) $ 7,792 $ 9,178 Weighted-average attained age of contract holder 73.4 years 72.5 years _______________ (1) Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at June 30, 2024 and 2023, with the exception of $0 and $3 million, respectively, of index-linked annuities not included in this table. |
Separate Accounts (Tables)
Separate Accounts (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
Separate Account, Liability | Information regarding separate account liabilities was as follows: Six Months Ended June 30, 2024 2023 Variable Annuities Universal Life Insurance Company-Owned Life Insurance Variable Annuities Universal Life Insurance Company-Owned Life Insurance (In millions) Balance, beginning of period $ 79,990 $ 5,921 $ 2,162 $ 77,653 $ 5,218 $ 1,932 Premiums and deposits 417 77 — 408 83 — Surrenders and withdrawals (3,990) (112) (5) (3,010) (91) (7) Benefit payments (788) (31) (12) (740) (33) (16) Investment performance 5,028 510 148 7,211 654 212 Policy charges (1,060) (103) (26) (1,076) (104) (24) Net transfers from (to) general account (59) (31) 1 (11) (22) — Other (16) — (1) (12) — (4) Balance, end of period $ 79,522 $ 6,231 $ 2,267 $ 80,423 $ 5,705 $ 2,093 A reconciliation of separate account liabilities reported in the preceding rollforward table to the separate account liabilities balance on the consolidated balance sheets was as follows at: June 30, 2024 2023 (In millions) Separate account liabilities reported in the preceding rollforward table $ 88,020 $ 88,221 Variable income annuities 218 152 Pension risk transfer annuities 22 19 Total separate account liabilities $ 88,260 $ 88,392 |
Fair Value, Separate Account Investment | The aggregate estimated fair value of assets, by major investment asset category, supporting separate accounts was as follows at: June 30, 2024 December 31, 2023 (In millions) Equity securities $ 87,996 $ 87,999 Fixed maturity securities 253 258 Cash and cash equivalents 7 7 Other assets 4 7 Total aggregate estimated fair value of assets $ 88,260 $ 88,271 |
Guarantees related to Annuity, Universal and Variable Life Contracts | Information regarding the net amount at risk and cash surrender value for insurance products was as follows at: Universal Life Insurance Variable Annuities Index-linked Annuities Fixed Rate Annuities ULSG Company-Owned Life Insurance (In millions) June 30, 2024 Account balances reported in the preceding rollforward tables: Policyholder account balances $ 2,566 $ 4,044 $ 46,089 $ 14,726 $ 4,914 $ 659 Separate account liabilities 6,231 79,522 — — — 2,267 Total account balances $ 8,797 $ 83,566 $ 46,089 $ 14,726 $ 4,914 $ 2,926 Net amount at risk $ 34,485 $ 12,642 N/A N/A $ 64,450 $ 2,675 Cash surrender value $ 8,224 $ 83,155 $ 43,846 $ 14,063 $ 4,414 $ 2,598 June 30, 2023 Account balances reported in the preceding rollforward tables: Policyholder account balances $ 2,559 $ 4,639 $ 38,549 $ 14,905 $ 5,188 $ 646 Separate account liabilities 5,705 80,423 — — — 2,093 Total account balances $ 8,264 $ 85,062 $ 38,549 $ 14,905 $ 5,188 $ 2,739 Net amount at risk $ 36,753 $ 13,672 N/A N/A $ 69,602 $ 2,647 Cash surrender value $ 7,676 $ 84,644 $ 35,860 $ 14,281 $ 6,160 $ 2,539 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
Deferred Policy Acquisition Costs | Information regarding deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”) was as follows: Variable Annuities Fixed Rate Annuities Index-linked Annuities Term and Whole Life Insurance Universal Life Insurance (In millions) Six Months Ended June 30, 2024 DAC: Balance, beginning of period $ 2,301 $ 110 $ 1,331 $ 354 $ 360 Capitalization 19 4 190 1 6 Amortization (114) (2) (119) (25) (21) Balance, end of period 2,206 112 1,402 330 345 VOBA: Balance, beginning of period 309 60 — 4 43 Amortization (15) (2) — — (3) Balance, end of period 294 58 — 4 40 Total DAC and VOBA: Balance, end of period $ 2,500 $ 170 $ 1,402 $ 334 $ 385 Six Months Ended June 30, 2023 DAC: Balance, beginning of period $ 2,508 $ 107 $ 1,213 $ 405 $ 392 Capitalization 19 7 165 — 6 Amortization (124) (5) (111) (27) (23) Balance, end of period 2,403 109 1,267 378 375 VOBA: Balance, beginning of period 341 65 — 5 48 Amortization (17) (2) — (1) (3) Balance, end of period 324 63 — 4 45 Total DAC and VOBA: Balance, end of period $ 2,727 $ 172 $ 1,267 $ 382 $ 420 |
Present Value of Future Insurance Profits | Information regarding deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”) was as follows: Variable Annuities Fixed Rate Annuities Index-linked Annuities Term and Whole Life Insurance Universal Life Insurance (In millions) Six Months Ended June 30, 2024 DAC: Balance, beginning of period $ 2,301 $ 110 $ 1,331 $ 354 $ 360 Capitalization 19 4 190 1 6 Amortization (114) (2) (119) (25) (21) Balance, end of period 2,206 112 1,402 330 345 VOBA: Balance, beginning of period 309 60 — 4 43 Amortization (15) (2) — — (3) Balance, end of period 294 58 — 4 40 Total DAC and VOBA: Balance, end of period $ 2,500 $ 170 $ 1,402 $ 334 $ 385 Six Months Ended June 30, 2023 DAC: Balance, beginning of period $ 2,508 $ 107 $ 1,213 $ 405 $ 392 Capitalization 19 7 165 — 6 Amortization (124) (5) (111) (27) (23) Balance, end of period 2,403 109 1,267 378 375 VOBA: Balance, beginning of period 341 65 — 5 48 Amortization (17) (2) — (1) (3) Balance, end of period 324 63 — 4 45 Total DAC and VOBA: Balance, end of period $ 2,727 $ 172 $ 1,267 $ 382 $ 420 |
Deferred Sales Inducement Cost | Information regarding deferred sales inducements, included in other assets, was as follows: Six Months Ended June 30, 2024 2023 Variable Annuities Fixed Rate Annuities Variable Annuities Fixed Rate Annuities (In millions) Balance, beginning of period $ 220 $ 8 $ 245 $ 9 Amortization (11) (1) (13) (1) Balance, end of period $ 209 $ 7 $ 232 $ 8 |
Unearned Revenue | Information regarding unearned revenue, included in other policy-related balances, was as follows: Six Months Ended June 30, 2024 2023 Universal Life Insurance ULSG Variable Annuities Universal Life Insurance ULSG Variable Annuities (In millions) Balance, beginning of period $ 356 $ 612 $ 67 $ 356 $ 488 $ 74 Capitalization 18 84 — 20 88 — Amortization (18) (29) (4) (20) (23) (4) Balance, end of period $ 356 $ 667 $ 63 $ 356 $ 553 $ 70 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity Securities by Sector | Fixed maturity securities by sector were as follows at: June 30, 2024 December 31, 2023 Amortized Allowance for Credit Losses Gross Unrealized Estimated Amortized Allowance for Credit Losses Gross Unrealized Estimated Gains Losses Gains Losses (In millions) U.S. corporate $ 39,956 $ 31 $ 223 $ 3,978 $ 36,170 $ 38,778 $ 15 $ 388 $ 3,396 $ 35,755 Foreign corporate 13,458 4 47 1,495 12,006 12,865 — 89 1,289 11,665 U.S. government and agency 7,750 — 97 621 7,226 8,656 — 286 523 8,419 Residential mortgage-backed securities 8,691 5 43 935 7,794 8,199 5 48 812 7,430 Commercial mortgage-backed securities 6,920 5 3 535 6,383 7,023 1 2 614 6,410 Asset-backed securities 6,532 — 28 98 6,462 6,514 — 23 131 6,406 State and political subdivision 3,814 — 100 355 3,559 4,019 — 159 304 3,874 Foreign government 1,055 — 28 102 981 1,077 — 42 87 1,032 Total fixed maturity securities $ 88,176 $ 45 $ 569 $ 8,119 $ 80,581 $ 87,131 $ 21 $ 1,037 $ 7,156 $ 80,991 |
Maturities of Fixed Maturity Securities | The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at June 30, 2024: Due in One Due After One Due After Five Due After Ten Structured Total Fixed (In millions) Amortized cost $ 3,788 $ 18,698 $ 14,088 $ 29,459 $ 22,143 $ 88,176 Estimated fair value $ 3,746 $ 18,050 $ 12,715 $ 25,431 $ 20,639 $ 80,581 _______________ (1) Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”). |
Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector | The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at: June 30, 2024 December 31, 2023 Less than 12 Months 12 Months or Greater Less than 12 Months 12 Months or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) U.S. corporate $ 7,800 $ 646 $ 21,587 $ 3,332 $ 4,554 $ 409 $ 22,796 $ 2,987 Foreign corporate 2,002 101 8,054 1,394 1,010 73 8,311 1,216 U.S. government and agency 1,867 71 2,299 550 518 9 3,477 514 RMBS 1,049 30 5,474 905 413 20 5,774 792 CMBS 479 25 5,549 510 411 33 5,786 581 ABS 721 4 1,798 94 572 3 3,360 128 State and political subdivision 658 56 1,624 299 471 32 1,634 272 Foreign government 57 1 670 101 112 6 620 81 Total fixed maturity securities $ 14,633 $ 934 $ 47,055 $ 7,185 $ 8,061 $ 585 $ 51,758 $ 6,571 Total number of securities in an unrealized loss position 2,179 6,512 1,347 7,038 |
Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector | The changes in the allowance for credit losses for fixed maturity securities by sector were as follows: U.S. Corporate Foreign Corporate RMBS CMBS Total (In millions) Six Months Ended June 30, 2024 Balance, beginning of period $ 15 $ — $ 5 $ 1 $ 21 Allowance on securities where credit losses were not previously recorded 12 4 — 3 19 Reductions for securities sold — — — — — Change in allowance on securities with an allowance recorded in a previous period 4 — — 1 5 Write-offs charged against allowance (1) — — — — — Balance, end of period $ 31 $ 4 $ 5 $ 5 $ 45 Six Months Ended June 30, 2023 Balance, beginning of period $ 1 $ 1 $ 2 $ 3 $ 7 Allowance on securities where credit losses were not previously recorded 4 — 3 — 7 Reductions for securities sold (1) — — — (1) Change in allowance on securities with an allowance recorded in a previous period — — — — — Write-offs charged against allowance (1) — (1) — — (1) Balance, end of period $ 4 $ — $ 5 $ 3 $ 12 _______________ (1) |
Mortgage Loans by Portfolio Segment | Mortgage loans are summarized as follows at: June 30, 2024 December 31, 2023 Carrying % of Carrying % of (Dollars in millions) Commercial $ 13,130 58.0 % $ 13,193 58.6 % Agricultural 4,533 20.0 4,445 19.8 Residential 5,133 22.7 5,007 22.2 Total mortgage loans (1) 22,796 100.7 22,645 100.6 Allowance for credit losses (155) (0.7) (137) (0.6) Total mortgage loans, net $ 22,641 100.0 % $ 22,508 100.0 % _______________ (1) Purchases of mortgage loans from third parties were $188 million and $349 million for the three months and six months ended June 30, 2024, respectively, and $0 and $32 million for the three months and six months ended June 30, 2023, respectively, and were primarily comprised of residential mortgage loans. |
Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment | The changes in the allowance for credit losses by portfolio segment were as follows: Commercial Agricultural Residential Total (In millions) Six Months Ended June 30, 2024 Balance, beginning of period $ 69 $ 19 $ 49 $ 137 Current period provision 38 (1) (11) 26 Charge-offs, net of recoveries (8) — — (8) Balance, end of period $ 99 $ 18 $ 38 $ 155 Six Months Ended June 30, 2023 Balance, beginning of period $ 49 $ 15 $ 55 $ 119 Current period provision 26 — 1 27 Charge-offs, net of recoveries — (1) — (1) Balance, end of period $ 75 $ 14 $ 56 $ 145 |
Credit Quality of Mortgage Loans by Portfolio Segment | The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at: 2024 2023 2022 2021 2020 Prior Total (In millions) June 30, 2024 Commercial mortgage loans Loan-to-value ratios: Less than 65% $ 264 $ 199 $ 654 $ 1,817 $ 176 $ 3,410 $ 6,520 65% to 75% 23 — 935 1,022 121 1,199 3,300 76% to 80% — — 427 258 138 794 1,617 Greater than 80% — — 400 103 — 1,190 1,693 Total commercial mortgage loans 287 199 2,416 3,200 435 6,593 13,130 Agricultural mortgage loans Loan-to-value ratios: Less than 65% 191 214 574 1,140 414 1,744 4,277 65% to 75% 6 1 126 78 12 33 256 Total agricultural mortgage loans 197 215 700 1,218 426 1,777 4,533 Residential mortgage loans Performing 32 215 1,309 1,703 141 1,638 5,038 Nonperforming — 1 27 18 1 48 95 Total residential mortgage loans 32 216 1,336 1,721 142 1,686 5,133 Total $ 516 $ 630 $ 4,452 $ 6,139 $ 1,003 $ 10,056 $ 22,796 2023 2022 2021 2020 2019 Prior Total (In millions) December 31, 2023 Commercial mortgage loans Loan-to-value ratios: Less than 65% $ 206 $ 655 $ 1,823 $ 177 $ 1,239 $ 2,630 $ 6,730 65% to 75% — 935 1,079 222 261 1,158 3,655 76% to 80% — 427 76 39 209 564 1,315 Greater than 80% — 400 227 — 150 716 1,493 Total commercial mortgage loans 206 2,417 3,205 438 1,859 5,068 13,193 Agricultural mortgage loans Loan-to-value ratios: Less than 65% 202 571 1,132 454 505 1,292 4,156 65% to 75% 1 127 108 6 30 17 289 Total agricultural mortgage loans 203 698 1,240 460 535 1,309 4,445 Residential mortgage loans Performing 105 1,286 1,669 145 204 1,508 4,917 Nonperforming — 22 22 1 2 43 90 Total residential mortgage loans 105 1,308 1,691 146 206 1,551 5,007 Total $ 514 $ 4,423 $ 6,136 $ 1,044 $ 2,600 $ 7,928 $ 22,645 The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at: June 30, 2024 December 31, 2023 Amortized Cost % of Amortized Cost % of (Dollars in millions) Debt-service coverage ratios: Greater than 1.20x $ 12,078 92.0 % $ 12,086 91.6 % 1.00x - 1.20x 728 5.5 702 5.3 Less than 1.00x 324 2.5 405 3.1 Total $ 13,130 100.0 % $ 13,193 100.0 % |
Past Due Mortgage Loans by Portfolio Segment | The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at: June 30, 2024 December 31, 2023 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Current $ 13,031 $ 4,513 $ 4,954 $ 22,498 $ 13,176 $ 4,429 $ 4,915 $ 22,520 30-59 days past due — — 84 84 — — 2 2 60-89 days past due 99 — 31 130 — — 30 30 90-179 days past due — 4 23 27 — — 23 23 180+ days past due — 16 41 57 17 16 37 70 Total $ 13,130 $ 4,533 $ 5,133 $ 22,796 $ 13,193 $ 4,445 $ 5,007 $ 22,645 |
Mortgage Loans in Nonaccrual Status by Portfolio Segment | The amortized cost of mortgage loans in a nonaccrual status by portfolio segment was as follows at: Commercial Agricultural Residential (1) Total (In millions) June 30, 2024 $ 99 $ 16 $ 95 $ 210 December 31, 2023 $ 17 $ — $ 90 $ 107 _______________ (1) |
Net Unrealized Investment Gains (Losses) | The components of net unrealized investment gains (losses), included in AOCI, were as follows at: June 30, 2024 December 31, 2023 (In millions) Fixed maturity securities $ (7,550) $ (6,119) Derivatives 443 351 Other (9) 2 Subtotal (7,116) (5,766) Amounts allocated from: Future policy benefits 920 652 Deferred income tax benefit (expense) 1,301 1,074 Net unrealized investment gains (losses) $ (4,895) $ (4,040) The changes in net unrealized investment gains (losses) were as follows: Six Months Ended June 30, 2024 (In millions) Balance at December 31, 2023 $ (4,040) Unrealized investment gains (losses) during the period (1,350) Unrealized investment gains (losses) relating to: Future policy benefits 268 Deferred income tax benefit (expense) 227 Balance at June 30, 2024 $ (4,895) Change in net unrealized investment gains (losses) $ (855) |
Securities Lending | Elements of the securities lending program are presented below at: June 30, 2024 December 31, 2023 (In millions) Securities on loan: (1) Amortized cost $ 3,562 $ 3,420 Estimated fair value $ 3,178 $ 3,194 Cash collateral received from counterparties (2) $ 3,279 $ 3,277 Reinvestment portfolio — estimated fair value $ 3,260 $ 3,246 _______________ (1) Included in fixed maturity securities. (2) Included in payables for collateral under securities loaned and other transactions. The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at: June 30, 2024 December 31, 2023 Open (1) 1 Month or Less 1 to 6 Months Total Open (1) 1 Month or Less 1 to 6 Months Total (In millions) U.S. government and agency $ 622 $ 896 $ 1,379 $ 2,897 $ 647 $ 655 $ 1,584 $ 2,886 U.S. corporate — 268 — 268 — 252 — 252 Foreign corporate — 100 — 100 — 130 — 130 Foreign government — 14 — 14 — 9 — 9 Total $ 622 $ 1,278 $ 1,379 $ 3,279 $ 647 $ 1,046 $ 1,584 $ 3,277 _______________ (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 | Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at: June 30, 2024 December 31, 2023 (In millions) Invested assets on deposit (regulatory deposits) (1) $ 6,150 $ 8,593 Invested assets held in trust (reinsurance agreements) (2) 7,207 7,142 Invested assets pledged as collateral (3) 13,473 13,979 Total invested assets on deposit, held in trust and pledged as collateral $ 26,830 $ 29,714 _______________ (1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $50 million and $102 million of the assets on deposit represents restricted cash and cash equivalents at June 30, 2024 and December 31, 2023, respectively. (2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $199 million and $120 million of the assets held in trust balance represents restricted cash and cash equivalents at June 30, 2024 and December 31, 2023, respectively. (3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2023 Annual Report) and derivative transactions (see Note 8). |
Variable Interest Entities | The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at: June 30, 2024 December 31, 2023 Carrying Maximum Carrying Maximum (In millions) Fixed maturity securities $ 15,657 $ 16,934 $ 15,526 $ 16,771 Limited partnerships and LLCs 4,297 5,355 4,233 5,255 Total $ 19,954 $ 22,289 $ 19,759 $ 22,026 |
Components of Net Investment Income | The components of net investment income were as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (In millions) Investment income: Fixed maturity securities $ 937 $ 868 $ 1,856 $ 1,705 Equity securities — 1 2 1 Mortgage loans 250 237 495 476 Policy loans 19 18 33 33 Limited partnerships and LLCs (1) 99 89 173 76 Cash, cash equivalents and short-term investments 63 55 124 105 Other 26 20 51 42 Total investment income 1,394 1,288 2,734 2,438 Less: Investment expenses 87 92 173 183 Net investment income $ 1,307 $ 1,196 $ 2,561 $ 2,255 _______________ (1) Includes net investment income pertaining to other limited partnership interests of $102 million and $195 million for the three months and six months ended June 30, 2024, respectively, and $93 million and $92 million for the three months and six months ended June 30, 2023, respectively. |
Components of Net Investment Gains (Losses) | The components of net investment gains (losses) were as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (In millions) Fixed maturity securities $ (97) $ (55) $ (135) $ (131) Equity securities (1) 2 — (1) Mortgage loans (22) (10) (27) (27) Limited partnerships and LLCs (1) — (1) — Other 1 (1) 1 (1) Total net investment gains (losses) $ (120) $ (64) $ (162) $ (160) |
Sales or Disposals of Fixed Maturity Securities | Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (In millions) Proceeds $ 1,175 $ 505 $ 1,855 $ 1,277 Gross investment gains $ 8 $ 8 $ 10 $ 11 Gross investment losses (86) (56) (120) (129) Net investment gains (losses) $ (78) $ (48) $ (110) $ (118) |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position | The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives, excluding embedded derivatives, held were as follows at: June 30, 2024 December 31, 2023 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate swaps Interest rate $ 500 $ 12 $ — $ — $ — $ — Foreign currency swaps Foreign currency exchange rate 3,913 409 23 3,939 348 45 Total qualifying hedges 4,413 421 23 3,939 348 45 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 53,524 130 179 31,252 140 103 Interest rate floors Interest rate 3,500 2 — 3,500 7 1 Interest rate caps Interest rate 6,800 12 2 7,050 19 1 Interest rate futures Interest rate 80 — — — — — Interest rate options Interest rate 23,050 38 222 33,680 47 167 Interest rate forwards Interest rate 13,886 25 1,653 17,017 32 1,937 Foreign currency swaps Foreign currency exchange rate 723 106 — 747 101 1 Foreign currency forwards Foreign currency exchange rate 726 2 — 535 — 9 Credit default swaps — written Credit 1,096 20 — 1,405 27 — Equity index options Equity market 20,883 1,234 940 20,099 757 687 Equity total return swaps Equity market 68,976 1,316 1,110 53,742 2,236 2,137 Hybrid options Equity market 20 — — 270 — — Total non-designated or non-qualifying derivatives 193,264 2,885 4,106 169,297 3,366 5,043 Total $ 197,677 $ 3,306 $ 4,129 $ 173,236 $ 3,714 $ 5,088 |
Derivative Instruments, Gain (Loss) | The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items reported in net derivative gains (losses) were as follows: Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Policyholder Benefits and Claims Amount of Gains (Losses) Deferred in AOCI (In millions) Three Months Ended June 30, 2024 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ — $ — $ 1 $ 2 $ 3 Foreign currency exchange rate 1 (1) 13 — 41 Total cash flow hedges 1 (1) 14 2 44 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (319) — — — — Foreign currency exchange rate 14 (6) — — — Credit 1 — — — — Equity market 362 — — — — Embedded (714) — — — — Total non-qualifying hedges (656) (6) — — — Total $ (655) $ (7) $ 14 $ 2 $ 44 Three Months Ended June 30, 2023 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ (2) $ — $ 1 $ — $ (1) Foreign currency exchange rate 5 (5) 13 — (49) Total cash flow hedges 3 (5) 14 — (50) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (551) — — — — Foreign currency exchange rate 9 (6) — — — Credit 9 — — — — Equity market 433 — — — — Embedded (1,703) — — — — Total non-qualifying hedges (1,803) (6) — — — Total $ (1,800) $ (11) $ 14 $ — $ (50) Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Policyholder Benefits and Claims Amount of Gains (Losses) Deferred in AOCI (In millions) Six Months Ended June 30, 2024 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ 3 $ — $ 1 $ 4 $ 12 Foreign currency exchange rate 1 (2) 26 — 85 Total cash flow hedges 4 (2) 27 4 97 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (1,101) — — — — Foreign currency exchange rate 45 (9) — — — Credit 7 — — — — Equity market 1,073 — — — — Embedded (2,600) — — — — Total non-qualifying hedges (2,576) (9) — — — Total $ (2,572) $ (11) $ 27 $ 4 $ 97 Six Months Ended June 30, 2023 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ (2) $ — $ 2 $ — $ 1 Foreign currency exchange rate 4 (5) 27 — (91) Total cash flow hedges 2 (5) 29 — (90) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate 59 — — — — Foreign currency exchange rate 4 4 — — — Credit 19 — — — — Equity market 324 — — — — Embedded (2,793) — — — — Total non-qualifying hedges (2,387) 4 — — — Total $ (2,385) $ (1) $ 29 $ — $ (90) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items reported in net derivative gains (losses) were as follows: Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Policyholder Benefits and Claims Amount of Gains (Losses) Deferred in AOCI (In millions) Three Months Ended June 30, 2024 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ — $ — $ 1 $ 2 $ 3 Foreign currency exchange rate 1 (1) 13 — 41 Total cash flow hedges 1 (1) 14 2 44 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (319) — — — — Foreign currency exchange rate 14 (6) — — — Credit 1 — — — — Equity market 362 — — — — Embedded (714) — — — — Total non-qualifying hedges (656) (6) — — — Total $ (655) $ (7) $ 14 $ 2 $ 44 Three Months Ended June 30, 2023 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ (2) $ — $ 1 $ — $ (1) Foreign currency exchange rate 5 (5) 13 — (49) Total cash flow hedges 3 (5) 14 — (50) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (551) — — — — Foreign currency exchange rate 9 (6) — — — Credit 9 — — — — Equity market 433 — — — — Embedded (1,703) — — — — Total non-qualifying hedges (1,803) (6) — — — Total $ (1,800) $ (11) $ 14 $ — $ (50) Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Policyholder Benefits and Claims Amount of Gains (Losses) Deferred in AOCI (In millions) Six Months Ended June 30, 2024 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ 3 $ — $ 1 $ 4 $ 12 Foreign currency exchange rate 1 (2) 26 — 85 Total cash flow hedges 4 (2) 27 4 97 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate (1,101) — — — — Foreign currency exchange rate 45 (9) — — — Credit 7 — — — — Equity market 1,073 — — — — Embedded (2,600) — — — — Total non-qualifying hedges (2,576) (9) — — — Total $ (2,572) $ (11) $ 27 $ 4 $ 97 Six Months Ended June 30, 2023 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ (2) $ — $ 2 $ — $ 1 Foreign currency exchange rate 4 (5) 27 — (91) Total cash flow hedges 2 (5) 29 — (90) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate 59 — — — — Foreign currency exchange rate 4 4 — — — Credit 19 — — — — Equity market 324 — — — — Embedded (2,793) — — — — Total non-qualifying hedges (2,387) 4 — — — Total $ (2,385) $ (1) $ 29 $ — $ (90) |
Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps | The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at: June 30, 2024 December 31, 2023 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Maximum Weighted Estimated Maximum Weighted (Dollars in millions) Aaa/Aa/A $ 4 $ 416 1.1 $ 6 $ 419 1.6 Baa 14 652 4.8 19 958 4.9 Ba 2 24 2.5 2 24 3.0 Caa and Lower — 4 1.5 — 4 2.0 Total $ 20 $ 1,096 3.4 $ 27 $ 1,405 3.9 _______________ (1) The Company has written credit protection on both single name and index references. The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P and Fitch. 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 after Master Netting Agreements and Cash Collateral | The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: Gross Amounts Not Offset on the Consolidated Balance Sheets Gross Amount Recognized Financial Instruments (1) Collateral Received/Pledged (2) Net Amount Securities Collateral Received/Pledged (3) Net Amount After Securities Collateral (In millions) June 30, 2024 Derivative assets $ 3,105 $ (2,480) $ (453) $ 172 $ (107) $ 65 Derivative liabilities $ 4,033 $ (2,480) $ — $ 1,553 $ (1,544) $ 9 December 31, 2023 Derivative assets $ 3,506 $ (3,112) $ (164) $ 230 $ (194) $ 36 Derivative liabilities $ 4,925 $ (3,112) $ (8) $ 1,805 $ (1,805) $ — _______________ (1) Represents amounts subject to an enforceable master netting agreement or similar agreement. (2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement. (3) Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received. |
Estimated Fair Value of Derivative Liabilities after Master Netting Agreements and Cash Collateral | The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: Gross Amounts Not Offset on the Consolidated Balance Sheets Gross Amount Recognized Financial Instruments (1) Collateral Received/Pledged (2) Net Amount Securities Collateral Received/Pledged (3) Net Amount After Securities Collateral (In millions) June 30, 2024 Derivative assets $ 3,105 $ (2,480) $ (453) $ 172 $ (107) $ 65 Derivative liabilities $ 4,033 $ (2,480) $ — $ 1,553 $ (1,544) $ 9 December 31, 2023 Derivative assets $ 3,506 $ (3,112) $ (164) $ 230 $ (194) $ 36 Derivative liabilities $ 4,925 $ (3,112) $ (8) $ 1,805 $ (1,805) $ — _______________ (1) Represents amounts subject to an enforceable master netting agreement or similar agreement. (2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement. (3) Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received. |
Schedule of Derivative Instruments | The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at: June 30, 2024 December 31, 2023 (In millions) Estimated fair value of derivatives in a net liability position (1) $ 1,553 $ 1,813 Estimated fair value of collateral provided (2): Fixed maturity securities $ 3,943 $ 4,811 _______________ (1) After taking into consideration the existence of netting agreements. (2) Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately. Additionally, the Company is required to pledge initial margin for certain new over-the-counter (“OTC”) bilateral contracts between two counterparties (“OTC-bilateral”) derivative transactions to third-party custodians. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy. June 30, 2024 Fair Value Hierarchy Total Estimated Level 1 Level 2 Level 3 (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 35,266 $ 904 $ 36,170 Foreign corporate — 11,545 461 12,006 U.S. government and agency 2,798 4,428 — 7,226 RMBS — 7,771 23 7,794 CMBS — 6,315 68 6,383 ABS — 6,047 415 6,462 State and political subdivision — 3,559 — 3,559 Foreign government — 960 21 981 Total fixed maturity securities 2,798 75,891 1,892 80,581 Equity securities 52 9 24 85 Short-term investments 779 611 — 1,390 Derivative assets: (1) Interest rate — 219 — 219 Foreign currency exchange rate — 511 6 517 Credit — 16 4 20 Equity market — 2,550 — 2,550 Total derivative assets — 3,296 10 3,306 Embedded derivatives on index-linked annuities (2) — — 38 38 Market risk benefit assets — — 916 916 Separate account assets 21 88,239 — 88,260 Total assets $ 3,650 $ 168,046 $ 2,880 $ 174,576 Liabilities Market risk benefit liabilities $ — $ — $ 8,708 $ 8,708 Derivative liabilities: (1) Interest rate — 2,056 — 2,056 Foreign currency exchange rate — 23 — 23 Equity market — 2,050 — 2,050 Total derivative liabilities — 4,129 — 4,129 Embedded derivatives on index-linked annuities (2) — — 10,621 10,621 Total liabilities $ — $ 4,129 $ 19,329 $ 23,458 December 31, 2023 Fair Value Hierarchy Total Estimated Level 1 Level 2 Level 3 (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 34,760 $ 995 $ 35,755 Foreign corporate — 11,340 325 11,665 U.S. government and agency 3,786 4,633 — 8,419 RMBS — 7,415 15 7,430 CMBS — 6,371 39 6,410 ABS — 6,080 326 6,406 State and political subdivision — 3,874 — 3,874 Foreign government — 996 36 1,032 Total fixed maturity securities 3,786 75,469 1,736 80,991 Equity securities 55 22 25 102 Short-term investments 614 555 — 1,169 Derivative assets: (1) Interest rate — 245 — 245 Foreign currency exchange rate — 437 12 449 Credit — 21 6 27 Equity market — 2,993 — 2,993 Total derivative assets — 3,696 18 3,714 Embedded derivatives on index-linked annuities (2) — — — — Market risk benefit assets — — 656 656 Separate account assets 20 88,251 — 88,271 Total assets $ 4,475 $ 167,993 $ 2,435 $ 174,903 Liabilities Market risk benefit liabilities $ — $ — $ 10,323 $ 10,323 Derivative liabilities: (1) Interest rate — 2,209 — 2,209 Foreign currency exchange rate — 55 — 55 Equity market — 2,824 — 2,824 Total derivative liabilities — 5,088 — 5,088 Embedded derivatives on index-linked annuities (2) — — 8,186 8,186 Total liabilities $ — $ 5,088 $ 18,509 $ 23,597 _______________ (1) Derivative assets are reported in other invested assets and derivative liabilities are reported in other liabilities. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets. (2) Embedded derivative assets on index-linked annuities are reported in premiums and other receivables. Embedded derivative liabilities on index-linked annuities are reported in policyholder account balances. |
Fair Value Measurement Inputs and Valuation Techniques | 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) were as follows at: June 30, 2024 December 31, 2023 Impact of Valuation Techniques Significant Range Range Market Risk Benefits Variable annuity guaranteed minimum benefits • Option pricing techniques • Mortality rates 0.04% - 12.90% 0.04% - 12.90% Decrease (1) • Lapse rates 1.00% - 22.80% 1.00% - 22.80% Decrease (2) • Utilization rates 0.00% - 25.00% 0.00% - 25.00% Increase (3) • Withdrawal rates 0.00% - 10.00% 0.00% - 10.00% (4) • Long-term equity volatilities 11.83% - 27.29% 12.59% - 22.50% Increase (5) • Nonperformance risk spread 0.56% - 1.47% 0.76% - 1.63% Decrease (6) Embedded Derivatives Index-linked annuity crediting rates • Option pricing techniques • Mortality rates 0.03% - 9.24% 0.03% - 9.24% Decrease (1) • Lapse rates 1.00% - 62.30% 1.00% - 62.30% Decrease (2) • Withdrawal rates 0.50% - 9.00% 0.50% - 9.00% (4) • Nonperformance risk spread 0.30% - 1.82% 0.45% - 1.74% Decrease (6) _______________ (1) Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement. (2) The lapse rate range reflects base lapse rates for major product categories for duration 1-20. 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. For variable annuity guarantees, 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. (3) The utilization rate assumption for variable annuity guarantees estimates the percentage of contract holders with a guaranteed minimum income benefit (“GMIB”) or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization 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. (4) 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 variable annuity guaranteed minimum withdrawal benefits, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For variable annuity guaranteed minimum accumulation benefits and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (5) 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 MRBs. (6) Nonperformance risk spread varies by duration. 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 MRB or embedded derivative. |
Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation | The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (excluding MRBs disclosed in Note 4) were summarized as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) Structured Securities Foreign Equity Net Embedded Derivatives on Index-Linked Annuities (In millions) Three Months Ended June 30, 2024 Balance, beginning of period $ 1,267 $ 482 $ 21 $ 25 $ 11 $ (9,941) Total realized/unrealized gains (losses) included in net income (loss) (3) (4) (15) — — (1) (1) (714) Total realized/unrealized gains (losses) included in AOCI (2) 2 — — — — Purchases (5) 199 129 — — — — Sales (5) (43) (26) — — — — Issuances (5) — — — — — — Settlements (5) — — — — — 72 Transfers into Level 3 (6) 41 — — — — — Transfers out of Level 3 (6) (82) (81) — — — — Balance, end of period $ 1,365 $ 506 $ 21 $ 24 $ 10 $ (10,583) Three Months Ended June 30, 2023 Balance, beginning of period $ 1,936 $ 350 $ 39 $ 25 $ 33 $ (5,164) Total realized/unrealized gains (losses) included in net income (loss) (3) (4) (4) — — (1) (5) (1,703) Total realized/unrealized gains (losses) included in AOCI (22) (1) — — — — Purchases (5) 68 36 — 1 9 — Sales (5) (42) (3) (1) — — — Issuances (5) — — — — — — Settlements (5) — — — — — (19) Transfers into Level 3 (6) 26 2 — — — — Transfers out of Level 3 (6) (31) (13) — — (10) — Balance, end of period $ 1,931 $ 371 $ 38 $ 25 $ 27 $ (6,886) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2024 (7) $ (15) $ — $ — $ (2) $ (1) $ (881) Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2024 (7) $ (2) $ 1 $ — $ — $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2023 (7) $ (3) $ — $ — $ (2) $ (5) $ (1,802) Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2023 (7) $ (24) $ (1) $ — $ — $ — $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) Structured Securities Foreign Equity Net Embedded Derivatives on Index-Linked Annuities (In millions) Six Months Ended June 30, 2024 Balance, beginning of period $ 1,320 $ 380 $ 36 $ 25 $ 18 $ (8,186) Total realized/unrealized gains (losses) included in net income (loss) (3) (4) (19) 1 — (1) (3) (2,600) Total realized/unrealized gains (losses) included in AOCI (9) 2 — — — — Purchases (5) 238 207 — — 1 — Sales (5) (84) (31) — — — — Issuances (5) — — — — — — Settlements (5) — — — — — 203 Transfers into Level 3 (6) 55 — — — — — Transfers out of Level 3 (6) (136) (53) (15) — (6) — Balance, end of period $ 1,365 $ 506 $ 21 $ 24 $ 10 $ (10,583) Six Months Ended June 30, 2023 Balance, beginning of period $ 1,787 $ 365 $ 38 $ 27 $ 35 $ (3,932) Total realized/unrealized gains (losses) included in net income (loss) (3) (4) (3) — — (3) (5) (2,793) Total realized/unrealized gains (losses) included in AOCI 7 1 1 — — — Purchases (5) 210 52 — 1 9 — Sales (5) (73) (7) (1) — — — Issuances (5) — — — — — — Settlements (5) — — — — — (161) Transfers into Level 3 (6) 56 2 — — — — Transfers out of Level 3 (6) (53) (42) — — (12) — Balance, end of period $ 1,931 $ 371 $ 38 $ 25 $ 27 $ (6,886) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2024 (7) $ (18) $ — $ — $ (2) $ (3) $ (2,921) Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2024 (7) $ (19) $ — $ — $ — $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2023 (7) $ (2) $ (1) $ — $ (3) $ (5) $ (2,968) Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2023 (7) $ 1 $ — $ 1 $ — $ — $ — _______________ (1) Comprised of U.S. and foreign corporate securities. (2) Freestanding derivative assets and liabilities are reported net for purposes of the rollforward. (3) Amortization of premium/accretion of discount is included in net investment income. Changes in the allowance for credit losses and direct write-offs are 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 derivative gains (losses). (4) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (5) 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. (6) 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 out of Level 3 in the same period are excluded from the rollforward. (7) Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). 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 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: June 30, 2024 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 22,641 $ — $ — $ 20,592 $ 20,592 Policy loans $ 1,470 $ — $ 642 $ 925 $ 1,567 Other invested assets $ 240 $ — $ 238 $ 2 $ 240 Premiums, reinsurance and other receivables $ 8,206 $ — $ 118 $ 8,380 $ 8,498 Liabilities Policyholder account balances $ 32,467 $ — $ — $ 32,050 $ 32,050 Long-term debt $ 3,155 $ — $ 2,728 $ — $ 2,728 Other liabilities $ 1,327 $ — $ 660 $ 667 $ 1,327 Separate account liabilities $ 1,259 $ — $ 1,259 $ — $ 1,259 December 31, 2023 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 22,508 $ — $ — $ 20,609 $ 20,609 Policy loans $ 1,331 $ — $ 518 $ 937 $ 1,455 Other invested assets $ 257 $ — $ 245 $ 12 $ 257 Premiums, reinsurance and other receivables $ 7,577 $ — $ 88 $ 7,636 $ 7,724 Liabilities Policyholder account balances $ 31,471 $ — $ — $ 30,606 $ 30,606 Long-term debt $ 3,156 $ — $ 2,769 $ — $ 2,769 Other liabilities $ 1,142 $ — $ 463 $ 679 $ 1,142 Separate account liabilities $ 1,150 $ — $ 1,150 $ — $ 1,150 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Preferred Stock Authorized, Issued and Outstanding | Preferred stock shares authorized, issued and outstanding were as follows at both June 30, 2024 and December 31, 2023: Shares Authorized Shares Issued Shares Outstanding 6.600% Non-Cumulative Preferred Stock, Series A 17,000 17,000 17,000 6.750% Non-Cumulative Preferred Stock, Series B 16,100 16,100 16,100 5.375% Non-Cumulative Preferred Stock, Series C 23,000 23,000 23,000 4.625% Non-Cumulative Preferred Stock, Series D 14,000 14,000 14,000 Not designated 99,929,900 — — Total 100,000,000 70,100 70,100 |
Preferred Stock Dividends Declared | The per share and aggregate dividends declared for BHF’s preferred stock by series were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Series Per Share Aggregate Per Share Aggregate Per Share Aggregate Per Share Aggregate (In millions, except per share data) A $ 412.50 $ 7 $ 412.50 $ 7 $ 825.00 $ 14 $ 825.00 $ 14 B $ 421.88 7 $ 421.88 7 $ 843.76 14 $ 843.76 14 C $ 335.94 7 $ 335.94 7 $ 671.88 15 $ 671.88 15 D $ 289.06 4 $ 289.06 4 $ 578.12 8 $ 578.12 8 Total $ 25 $ 25 $ 51 $ 51 |
Components of Accumulated Other Comprehensive Income (Loss) | Information regarding changes in the balances of each component of AOCI was as follows: Three Months Ended June 30, 2024 Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Changes in Nonperformance Risk on Market Risk Benefits Changes in Discount Rates on the Liability for Future Policy Benefits Other (2) Total (In millions) Balance at March 31, 2024 $ (4,937) $ 317 $ (1,711) $ 969 $ (51) $ (5,413) OCI before reclassifications (475) 44 110 233 (2) (90) Deferred income tax benefit (expense) (3) 100 (9) (23) (49) — 19 AOCI before reclassifications, net of income tax (5,312) 352 (1,624) 1,153 (53) (5,484) Amounts reclassified from AOCI 85 (2) — — 1 84 Deferred income tax benefit (expense) (3) (18) — — — (1) (19) Amounts reclassified from AOCI, net of income tax 67 (2) — — — 65 Balance at June 30, 2024 $ (5,245) $ 350 $ (1,624) $ 1,153 $ (53) $ (5,419) Three Months Ended June 30, 2023 Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Changes in Nonperformance Risk on Market Risk Benefits Changes in Discount Rates on the Liability for Future Policy Benefits Other (2) Total (In millions) Balance at March 31, 2023 $ (5,028) $ 472 $ (1,383) $ 706 $ (55) $ (5,288) OCI before reclassifications (895) (50) (116) 251 1 (809) Deferred income tax benefit (expense) (3) 187 11 24 (52) — 170 AOCI before reclassifications, net of income tax (5,736) 433 (1,475) 905 (54) (5,927) Amounts reclassified from AOCI 59 (4) — — 2 57 Deferred income tax benefit (expense) (3) (12) 1 — — — (11) Amounts reclassified from AOCI, net of income tax 47 (3) — — 2 46 Balance at June 30, 2023 $ (5,689) $ 430 $ (1,475) $ 905 $ (52) $ (5,881) Six Months Ended June 30, 2024 Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Changes in Nonperformance Risk on Market Risk Benefits Changes in Discount Rates on the Liability for Future Policy Benefits Other (2) Total (In millions) Balance at December 31, 2023 $ (4,317) $ 277 $ (1,881) $ 720 $ (45) $ (5,246) OCI before reclassifications (1,295) 97 325 548 (11) (336) Deferred income tax benefit (expense) (3) 271 (20) (68) (115) 2 70 AOCI before reclassifications, net of income tax (5,341) 354 (1,624) 1,153 (54) (5,512) Amounts reclassified from AOCI 121 (5) — — 2 118 Deferred income tax benefit (expense) (3) (25) 1 — — (1) (25) Amounts reclassified from AOCI, net of income tax 96 (4) — — 1 93 Balance at June 30, 2024 $ (5,245) $ 350 $ (1,624) $ 1,153 $ (53) $ (5,419) Six Months Ended June 30, 2023 Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Changes in Nonperformance Risk on Market Risk Benefits Changes in Discount Rates on the Liability for Future Policy Benefits Other (2) Total (In millions) Balance at December 31, 2022 $ (6,194) $ 504 $ (1,378) $ 1,020 $ (58) $ (6,106) OCI before reclassifications 519 (90) (123) (146) 3 163 Deferred income tax benefit (expense) (3) (109) 19 26 31 (1) (34) AOCI before reclassifications, net of income tax (5,784) 433 (1,475) 905 (56) (5,977) Amounts reclassified from AOCI 120 (4) — — 5 121 Deferred income tax benefit (expense) (3) (25) 1 — — (1) (25) Amounts reclassified from AOCI, net of income tax 95 (3) — — 4 96 Balance at June 30, 2023 $ (5,689) $ 430 $ (1,475) $ 905 $ (52) $ (5,881) __________________ (1) See Note 7 for information on offsets to investments related to future policy benefits. (2) Includes OCI related to foreign currency translation and defined benefit plan gains and losses. (3) The effects of income taxes on amounts recorded to AOCI are also recognized in AOCI. These income tax effects are released from AOCI when the related activity is reclassified into results from operations. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statements of Operations and Comprehensive Income (Loss) Locations Three Months Ended Six Months Ended 2024 2023 2024 2023 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ (78) $ (46) $ (112) $ (114) Net investment gains (losses) Net unrealized investment gains (losses) (7) (13) (9) (6) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax (85) (59) (121) (120) Income tax (expense) benefit 18 12 25 25 Net unrealized investment gains (losses), net of income tax (67) (47) (96) (95) Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps — (2) 3 (2) Net derivative gains (losses) Interest rate swaps 1 1 1 2 Net investment income Foreign currency swaps 1 5 1 4 Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax 2 4 5 4 Income tax (expense) benefit — (1) (1) (1) Gains (losses) on cash flow hedges, net of income tax 2 3 4 3 Defined benefit plans adjustment: Amortization of net actuarial gains (losses) (1) (2) (2) (5) Amortization of defined benefit plans, before income tax (1) (2) (2) (5) Income tax (expense) benefit 1 — 1 1 Amortization of defined benefit plans, net of income tax — (2) (1) (4) Total reclassifications, net of income tax $ (65) $ (46) $ (93) $ (96) |
Other Revenues and Other Expe_2
Other Revenues and Other Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Other Expenses | Information on other expenses was as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (In millions) Compensation $ 101 $ 106 $ 212 $ 204 Contracted services and other labor costs 70 79 133 148 Transition services agreements 5 8 12 19 Premium and other taxes, licenses and fees 13 20 24 34 Separate account fees 91 92 183 184 Volume related costs, excluding compensation, net of DAC capitalization 138 143 285 280 Interest expense on debt 38 38 76 76 Other 12 16 50 35 Total other expenses $ 468 $ 502 $ 975 $ 980 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | The calculation of earnings per common share was as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (In millions, except share and per share data) Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ 9 $ (200) $ (510) $ (725) Weighted average common shares outstanding — basic 61,956,829 66,722,046 62,496,801 67,294,437 Dilutive effect of share-based awards 298,501 — — — Weighted average common shares outstanding — diluted 62,255,330 66,722,046 62,496,801 67,294,437 Earnings per common share: Basic $ 0.12 $ (3.01) $ (8.17) $ (10.77) Diluted $ 0.12 $ (3.01) $ (8.17) $ (10.77) |
Business, Basis of Presentati_3
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2024 Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | 3 |
Segment Information (Operating
Segment Information (Operating Results) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||||
Pre-tax adjusted earnings (loss) | $ 14 | $ (237) | $ (600) | $ (890) | ||
Provision for income tax expense (benefit) | (20) | (62) | (143) | (218) | ||
Post-tax adjusted earnings (loss) | 34 | $ (491) | (175) | $ (497) | (457) | (672) |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 2 | 2 | ||
Less: Preferred stock dividends | 25 | 25 | 51 | 51 | ||
Net investment gains (losses) | (120) | (64) | (162) | (160) | ||
Investment Hedge Adjustment | (1,307) | (1,196) | (2,561) | (2,255) | ||
Change in market risk benefits | 356 | 1,300 | 1,796 | 1,106 | ||
Market value adjustments | 509 | 452 | 1,011 | 874 | ||
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | 9 | (200) | (510) | (725) | ||
Annuities | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest revenue | 702 | 633 | 1,378 | 1,227 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Life | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest revenue | 121 | 119 | 228 | 219 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Run-off | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest revenue | 315 | 316 | 631 | 570 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Corporate & Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest revenue | 178 | 151 | 346 | 300 | ||
Interest expense | 38 | 38 | 76 | 76 | ||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax adjusted earnings (loss) | 443 | 359 | 361 | 617 | ||
Provision for income tax expense (benefit) | 72 | 63 | 60 | 98 | ||
Post-tax adjusted earnings (loss) | 371 | 296 | 301 | 519 | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 2 | 2 | ||
Less: Preferred stock dividends | 25 | 25 | 51 | 51 | ||
Adjusted earnings (loss) | 346 | 271 | 248 | 466 | ||
Operating Segments | Annuities | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax adjusted earnings (loss) | 410 | 357 | 795 | 744 | ||
Provision for income tax expense (benefit) | 78 | 66 | 150 | 139 | ||
Post-tax adjusted earnings (loss) | 332 | 291 | 645 | 605 | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Less: Preferred stock dividends | 0 | 0 | 0 | 0 | ||
Adjusted earnings (loss) | 332 | 291 | 645 | 605 | ||
Operating Segments | Life | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax adjusted earnings (loss) | 52 | 18 | 6 | 18 | ||
Provision for income tax expense (benefit) | 10 | 3 | 0 | 2 | ||
Post-tax adjusted earnings (loss) | 42 | 15 | 6 | 16 | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Less: Preferred stock dividends | 0 | 0 | 0 | 0 | ||
Adjusted earnings (loss) | 42 | 15 | 6 | 16 | ||
Operating Segments | Run-off | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax adjusted earnings (loss) | (37) | (21) | (469) | (155) | ||
Provision for income tax expense (benefit) | (7) | (5) | (98) | (33) | ||
Post-tax adjusted earnings (loss) | (30) | (16) | (371) | (122) | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Less: Preferred stock dividends | 0 | 0 | 0 | 0 | ||
Adjusted earnings (loss) | (30) | (16) | (371) | (122) | ||
Operating Segments | Corporate & Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax adjusted earnings (loss) | 18 | 5 | 29 | 10 | ||
Provision for income tax expense (benefit) | (9) | (1) | 8 | (10) | ||
Post-tax adjusted earnings (loss) | 27 | 6 | 21 | 20 | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 2 | 2 | ||
Less: Preferred stock dividends | 25 | 25 | 51 | 51 | ||
Adjusted earnings (loss) | 2 | (19) | (32) | (33) | ||
Segment Reconciling Items | ||||||
Segment Reporting Information [Line Items] | ||||||
Provision for income tax expense (benefit) | 92 | 125 | 203 | 316 | ||
Net investment gains (losses) | (120) | (64) | (162) | (160) | ||
Net derivative gains (losses), excluding investment hedge adjustments | (671) | (1,834) | (2,605) | (2,447) | ||
Investment Hedge Adjustment | (9) | (23) | (22) | (61) | ||
Change in market risk benefits | 356 | 1,300 | 1,796 | 1,106 | ||
Market value adjustments | $ 6 | $ 2 | $ 10 | $ (6) |
Segment Information (Reconcilia
Segment Information (Reconciliation of Operating Revenues to Total Revenues) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 1,427 | $ 263 | $ 1,501 | $ 1,547 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (791) | (1,898) | (2,767) | (2,607) |
Operating Segments | Annuities | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,314 | 1,246 | 2,618 | 2,416 |
Operating Segments | Life | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 297 | 312 | 514 | 616 |
Operating Segments | Run-off | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 429 | 448 | 785 | 828 |
Operating Segments | Corporate & Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 178 | $ 155 | $ 351 | $ 294 |
Segment Information (Total Asse
Segment Information (Total Assets by Segment) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 237,438 | $ 236,340 |
Annuities | ||
Segment Reporting Information [Line Items] | ||
Total assets | 162,276 | 160,775 |
Life | ||
Segment Reporting Information [Line Items] | ||
Total assets | 25,131 | 25,504 |
Run-off | ||
Segment Reporting Information [Line Items] | ||
Total assets | 25,579 | 26,828 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 24,452 | $ 23,233 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2024 Segment | |
Segment Reporting [Abstract] | |
Number of segments | 3 |
Insurance Liabilities (Future P
Insurance Liabilities (Future Policy Benefits Information by Product) (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Liability for Future Policy Benefit, before Reinsurance | $ 31,886 | $ 31,899 | ||
Future policy benefits | 31,886 | $ 32,569 | ||
Term and Whole Life Insurance | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Liability for Future Policy Benefit, Expected Net Premium, before Reinsurance, after Discount Rate Change | 2,825 | 2,809 | 2,974 | $ 2,871 |
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | 3,166 | 3,124 | 3,234 | 3,212 |
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) from Model Refinements | 4 | 0 | ||
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) of Actual Variance from Expected Experience | 19 | (8) | ||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Reinsurance, after Cash Flow Change | 3,257 | 3,204 | ||
Liability for Future Policy Benefit, Expected Net Premium, Issuance | 41 | 49 | ||
Liability for Future Policy Benefit, Expected Net Premium, Interest Income | 57 | 55 | ||
Liability for Future Policy Benefit, Expected Net Premium, Net Premium Collected | (189) | (184) | ||
AOCI, Liability for Future Policy Benefit, Expected Net Premium, before Tax | (341) | (315) | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit, before Reinsurance, after Discount Rate Change | 5,214 | 5,221 | 5,507 | 5,279 |
Liability for Future Policy Benefit, Expected Future Policy Benefit, Original Discount Rate, before Cash Flow and Reinsurance | 5,902 | 5,818 | 6,023 | 5,922 |
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Model Refinements | 9 | 0 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) of Actual Variance from Expected Experience | 28 | (10) | ||
Liability for Future Policy Benefit, Expected Future Benefit, Original Discount Rate, before Reinsurance, after Cash Flow Change | 6,060 | 5,912 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Issuance | 43 | 50 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Interest Expense | 110 | 107 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Benefit Payment | (311) | (251) | ||
AOCI, Liability for Future Policy Benefit, Expected Future Policy Benefit, before Tax | (688) | (597) | ||
Liability for Future Policy Benefit, before Reinsurance | 2,389 | 2,412 | ||
Liability for Future Policy Benefit, Reinsurance Recoverable, after Allowance | 37 | 41 | ||
Future policy benefits | $ 2,352 | $ 2,371 | ||
Liability for Future Policy Benefit, Weighted-Average Duration | 8 years 8 months 12 days | 8 years 3 months 18 days | ||
Liability for Future Policy Benefit, Weighted-Average Interest Accretion Rate | 3.95% | 3.95% | ||
Liability for Future Policy Benefit, Current Weighted-Average Discount Rate | 5.46% | 5.18% | ||
Liability for Future Policy Benefit, Gross Premium Income | $ 284 | $ 307 | ||
Liability for Future Policy Benefit, Expected Future Gross Premium, Undiscounted, before Reinsurance | 5,953 | 6,531 | ||
Liability for Future Policy Benefit, Expected Future Gross Premium, Discounted, before Reinsurance | 4,477 | 4,837 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted, before Reinsurance | 8,163 | 8,044 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Discounted, before Reinsurance | 5,902 | 5,818 | ||
Income Annuities | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Liability for Future Policy Benefit, Expected Net Premium, before Reinsurance, after Discount Rate Change | 0 | 0 | 0 | 0 |
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | 0 | 0 | 0 | 0 |
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) from Model Refinements | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) of Actual Variance from Expected Experience | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Reinsurance, after Cash Flow Change | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Net Premium, Issuance | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Net Premium, Interest Income | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Net Premium, Net Premium Collected | 0 | 0 | ||
AOCI, Liability for Future Policy Benefit, Expected Net Premium, before Tax | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit, before Reinsurance, after Discount Rate Change | 3,698 | 3,600 | 3,754 | 3,512 |
Liability for Future Policy Benefit, Expected Future Policy Benefit, Original Discount Rate, before Cash Flow and Reinsurance | 4,102 | 3,955 | 4,031 | 3,897 |
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Model Refinements | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) of Actual Variance from Expected Experience | (1) | (4) | ||
Liability for Future Policy Benefit, Expected Future Benefit, Original Discount Rate, before Reinsurance, after Cash Flow Change | 4,030 | 3,893 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Issuance | 197 | 182 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Interest Expense | 76 | 72 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Benefit Payment | (201) | (192) | ||
AOCI, Liability for Future Policy Benefit, Expected Future Policy Benefit, before Tax | (404) | (355) | ||
Liability for Future Policy Benefit, before Reinsurance | 3,698 | 3,600 | ||
Liability for Future Policy Benefit, Reinsurance Recoverable, after Allowance | 30 | 25 | ||
Future policy benefits | $ 3,668 | $ 3,575 | ||
Liability for Future Policy Benefit, Weighted-Average Duration | 8 years 1 month 6 days | 8 years 4 months 24 days | ||
Liability for Future Policy Benefit, Weighted-Average Interest Accretion Rate | 4% | 3.92% | ||
Liability for Future Policy Benefit, Current Weighted-Average Discount Rate | 5.46% | 5.19% | ||
Liability for Future Policy Benefit, Gross Premium Income | $ 247 | $ 224 | ||
Liability for Future Policy Benefit, Expected Future Gross Premium, Undiscounted, before Reinsurance | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Future Gross Premium, Discounted, before Reinsurance | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted, before Reinsurance | 5,809 | 5,608 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Discounted, before Reinsurance | 4,102 | 3,955 | ||
Structured Settlement and Pension Risk Transfer Annuities | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Liability for Future Policy Benefit, Expected Net Premium, before Reinsurance, after Discount Rate Change | 0 | 0 | 0 | 0 |
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | 0 | 0 | 0 | 0 |
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) from Model Refinements | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) of Actual Variance from Expected Experience | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Reinsurance, after Cash Flow Change | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Net Premium, Issuance | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Net Premium, Interest Income | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Net Premium, Net Premium Collected | 0 | 0 | ||
AOCI, Liability for Future Policy Benefit, Expected Net Premium, before Tax | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit, before Reinsurance, after Discount Rate Change | 6,225 | 6,711 | 6,697 | 6,793 |
Liability for Future Policy Benefit, Expected Future Policy Benefit, Original Discount Rate, before Cash Flow and Reinsurance | 6,946 | 7,230 | 7,085 | 7,410 |
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Model Refinements | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) of Actual Variance from Expected Experience | (3) | (37) | ||
Liability for Future Policy Benefit, Expected Future Benefit, Original Discount Rate, before Reinsurance, after Cash Flow Change | $ 7,082 | $ 7,373 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Issuance | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Interest Expense | 152 | 158 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Benefit Payment | (288) | (301) | ||
AOCI, Liability for Future Policy Benefit, Expected Future Policy Benefit, before Tax | (721) | (519) | ||
Liability for Future Policy Benefit, before Reinsurance | 6,225 | 6,711 | ||
Liability for Future Policy Benefit, Reinsurance Recoverable, after Allowance | 61 | 66 | ||
Future policy benefits | $ 6,164 | $ 6,645 | ||
Liability for Future Policy Benefit, Weighted-Average Duration | 11 years 6 months | 11 years 7 months 6 days | ||
Liability for Future Policy Benefit, Weighted-Average Interest Accretion Rate | 4.46% | 4.46% | ||
Liability for Future Policy Benefit, Current Weighted-Average Discount Rate | 5.56% | 5.20% | ||
Liability for Future Policy Benefit, Gross Premium Income | $ 0 | $ 0 | ||
Liability for Future Policy Benefit, Expected Future Gross Premium, Undiscounted, before Reinsurance | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Future Gross Premium, Discounted, before Reinsurance | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted, before Reinsurance | 13,483 | 14,062 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Discounted, before Reinsurance | $ 6,946 | $ 7,230 |
Insurance Liabilities (Future_2
Insurance Liabilities (Future Policy Benefits - SOP) (Details) - ULSG - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Additional Liability, Long-Duration Insurance [Line Items] | ||||
Additional Liability, Long-Duration Insurance, before Reinsurance, after Discount Rate Change | $ 7,805 | $ 7,210 | $ 7,607 | $ 6,935 |
Additional Liability, Long-Duration Insurance, Original Discount Rate, before Cash Flow and Reinsurance | 8,055 | 7,421 | 7,784 | 7,175 |
Additional Liability, Long-Duration Insurance, Cumulative Increase (Decrease) of Actual Variance from Expected Experience | 67 | 60 | ||
Additional Liability, Long-Duration Insurance, Original Discount Rate, before Reinsurance, after Cash Flow Change | $ 7,851 | $ 7,235 | ||
Additional Liability, Long-Duration Insurance, Interest Income (Expense) | 190 | 175 | ||
Additional Liability, Long-Duration Insurance, Net Premium Collected | 215 | 206 | ||
Additional Liability, Long-Duration Insurance, Benefit Payment | (201) | (195) | ||
AOCI, Liability for Future Policy Benefit, before Tax | (250) | (211) | ||
Additional Liability, Long-Duration Insurance, Reinsurance Recoverable, after Allowance | 1,466 | 1,414 | ||
Additional Liability, Long-Duration Insurance, after Reinsurance | $ 6,339 | $ 5,796 | ||
Additional Liability, Long-Duration Insurance, Weighted-Average Duration | 6 years 7 months 6 days | 6 years 8 months 12 days | ||
Additional Liability, Long-Duration Insurance, Weighted-Average Interest Accretion Rate | 4.93% | 4.91% | ||
Additional Liability, Long-Duration Insurance, Gross Premium Income | $ 542 | $ 531 |
Insurance Liabilities (Future_3
Insurance Liabilities (Future Policy Benefits - Reconciliation) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | $ 31,886 | $ 31,899 |
Liabilities reported in the preceding rollforward tables | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | 20,117 | 19,933 |
Long-term care insurance (1) | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | 5,224 | 5,606 |
ULSG liabilities, including liability for profits followed by losses | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | 2,525 | 2,565 |
Participating whole life insurance (2) | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | 3,161 | 3,031 |
Deferred profit liabilities | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | 476 | 373 |
Other | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | $ 383 | $ 391 |
Insurance Liabilities (Policyho
Insurance Liabilities (Policyholder Account Balances) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Policyholder Account Balance [Line Items] | ||||
Interest credited to policyholder account balances | $ 509 | $ 452 | $ 1,011 | $ 874 |
Policyholder Account Balance, Ending Balance | 85,865 | 78,643 | 85,865 | 78,643 |
Universal Life Insurance | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder Account Balance, Beginning Balance | 2,550 | 2,658 | ||
Premiums and deposits | 121 | 113 | ||
Surrenders and withdrawals | (49) | (90) | ||
Benefit payments | (27) | (42) | ||
Net transfers from (to) separate account | 31 | 22 | ||
Interest credited to policyholder account balances | 48 | 8 | ||
Policy charges | (108) | (110) | ||
Changes related to embedded derivatives | 0 | 0 | ||
Policyholder Account Balance, Ending Balance | $ 2,566 | $ 2,559 | $ 2,566 | $ 2,559 |
Weighted-average crediting rate (2) | 1.88% | 0.31% | 1.88% | 0.31% |
Variable Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder Account Balance, Beginning Balance | $ 4,307 | $ 4,908 | ||
Premiums and deposits | 34 | 43 | ||
Surrenders and withdrawals | (351) | (326) | ||
Benefit payments | (47) | (61) | ||
Net transfers from (to) separate account | 59 | 11 | ||
Interest credited to policyholder account balances | 54 | 78 | ||
Policy charges | (12) | (14) | ||
Changes related to embedded derivatives | 0 | 0 | ||
Policyholder Account Balance, Ending Balance | $ 4,044 | $ 4,639 | $ 4,044 | $ 4,639 |
Weighted-average crediting rate (2) | 1.29% | 1.63% | 1.29% | 1.63% |
Index-linked Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder Account Balance, Beginning Balance | $ 41,627 | $ 33,897 | ||
Premiums and deposits | 4,236 | 3,390 | ||
Surrenders and withdrawals | (2,510) | (1,613) | ||
Benefit payments | (151) | (117) | ||
Net transfers from (to) separate account | 0 | 0 | ||
Interest credited to policyholder account balances | 291 | 203 | ||
Policy charges | (9) | (4) | ||
Changes related to embedded derivatives | 2,605 | 2,793 | ||
Policyholder Account Balance, Ending Balance | $ 46,089 | $ 38,549 | $ 46,089 | $ 38,549 |
Weighted-average crediting rate (2) | 0.85% | 0.66% | 0.85% | 0.66% |
Fixed Rate Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder Account Balance, Beginning Balance | $ 14,672 | $ 14,274 | ||
Premiums and deposits | 687 | 1,479 | ||
Surrenders and withdrawals | (736) | (874) | ||
Benefit payments | (178) | (203) | ||
Net transfers from (to) separate account | 0 | 0 | ||
Interest credited to policyholder account balances | 281 | 229 | ||
Policy charges | 0 | 0 | ||
Changes related to embedded derivatives | 0 | 0 | ||
Policyholder Account Balance, Ending Balance | $ 14,726 | $ 14,905 | $ 14,726 | $ 14,905 |
Weighted-average crediting rate (2) | 1.90% | 1.57% | 1.90% | 1.57% |
ULSG | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder Account Balance, Beginning Balance | $ 5,052 | $ 5,307 | ||
Premiums and deposits | 328 | 339 | ||
Surrenders and withdrawals | (10) | (12) | ||
Benefit payments | (39) | (55) | ||
Net transfers from (to) separate account | 0 | 0 | ||
Interest credited to policyholder account balances | 82 | 122 | ||
Policy charges | (499) | (513) | ||
Changes related to embedded derivatives | 0 | 0 | ||
Policyholder Account Balance, Ending Balance | $ 4,914 | $ 5,188 | $ 4,914 | $ 5,188 |
Weighted-average crediting rate (2) | 1.65% | 2.33% | 1.65% | 2.33% |
Company-Owned Life Insurance | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder Account Balance, Beginning Balance | $ 653 | $ 641 | ||
Premiums and deposits | 0 | 0 | ||
Surrenders and withdrawals | 0 | 0 | ||
Benefit payments | (5) | (4) | ||
Net transfers from (to) separate account | (1) | 0 | ||
Interest credited to policyholder account balances | 18 | 15 | ||
Policy charges | (6) | (6) | ||
Changes related to embedded derivatives | 0 | 0 | ||
Policyholder Account Balance, Ending Balance | $ 659 | $ 646 | $ 659 | $ 646 |
Weighted-average crediting rate (2) | 2.49% | 2.33% | 2.49% | 2.33% |
Insurance Liabilities (Reconcil
Insurance Liabilities (Reconciliation of Policyholder Account Balances) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Policyholder Account Balance [Line Items] | ||
Policyholder Account Balance | $ 85,865 | $ 78,643 |
Rollforwards Total | ||
Policyholder Account Balance [Line Items] | ||
Policyholder Account Balance | 72,998 | 66,486 |
Funding agreements classified as investment contracts | ||
Policyholder Account Balance [Line Items] | ||
Policyholder Account Balance | 11,502 | 11,041 |
Institutional group annuities | ||
Policyholder Account Balance [Line Items] | ||
Policyholder Account Balance | 343 | 0 |
Other investment contract liabilities | ||
Policyholder Account Balance [Line Items] | ||
Policyholder Account Balance | $ 1,022 | $ 1,116 |
Insurance Liabilities (Balance
Insurance Liabilities (Balance of Account Values by range of guaranteed minimum crediting rates) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | $ 19,224 | $ 19,406 |
Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 2,524 | 2,508 |
ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 4,905 | 5,043 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 9,366 | 8,882 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 275 | 236 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 9,030 | 9,650 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 683 | 677 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 4,412 | 4,537 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 828 | 874 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 1,566 | 1,595 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 493 | 506 |
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 9,478 | 10,398 |
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 1,566 | 1,595 |
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 1,586 | 1,641 |
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 616 | 697 |
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 8,034 | 8,827 |
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 1,093 | 1,135 |
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 828 | 874 |
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 1,566 | 1,595 |
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 493 | 506 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 472 | 465 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 500 | 492 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 1,439 | 1,485 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 145 | 223 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 327 | 242 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 500 | 492 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 1,439 | 1,485 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 449 | 535 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 49 | 49 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 1,633 | 1,663 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 282 | 310 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 167 | 225 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 49 | 49 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 1,633 | 1,663 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 8,825 | 8,008 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 409 | 372 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 247 | 254 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 8,323 | 7,652 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 275 | 236 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 502 | 356 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 134 | 136 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 247 | 254 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Variable Annuities | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Life | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | 0 | 0 |
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | ULSG | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves | $ 0 | $ 0 |
Insurance Liabilities (Liabilit
Insurance Liabilities (Liability for Future Policy Benefits - Narrative) (Details) - Participating whole life insurance (2) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Participating Insurance, Percentage of Gross Insurance in Force | 3% | 3% |
Participating Insurance, Percentage of Premium Income | 41% | 41% |
Minimum | ||
Liability for Future Policy Benefits, Interest Rate | 3.50% | |
Maximum | ||
Liability for Future Policy Benefits, Interest Rate | 4.50% |
Market Risk Benefits (Details)
Market Risk Benefits (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Variable Annuities | ||||
Market Risk Benefit [Line Items] | ||||
Market Risk Benefit, after Increase (Decrease) from Instrument-Specific Credit Risk | $ 7,813 | $ 9,228 | $ 9,701 | $ 9,974 |
Market Risk Benefit, before Reinsurance and Cumulative Increase (Decrease) from Instrument-Specific Credit Risk Change | 5,764 | 7,360 | $ 7,326 | $ 8,230 |
Market Risk Benefit, Decrements | (66) | (54) | ||
Market Risk Benefit, Increase (Decrease) from Actual Policyholder Behavior Different from Expected | 88 | 170 | ||
Market Risk Benefit, Increase (Decrease) from Interest Rate Change | (1,547) | (147) | ||
Market Risk Benefit, Increase (Decrease) from Equity Market Change | (649) | (1,529) | ||
Market Risk Benefit, Issuance | 0 | (5) | ||
Market Risk Benefit, Effect of changes in risk margin | (53) | (18) | ||
Market Risk Benefit, Aging of the Block and Other | 665 | 713 | ||
AOCI, Market Risk Benefit, Instrument-Specific Credit Risk, before Tax | 2,049 | 1,868 | ||
Market Risk Benefit, Reinsurance Recoverable, after Allowance | 21 | 50 | ||
Market Risk Benefit, after Reinsurance and Cumulative Increase (Decrease) from Instrument-Specific Credit Risk Change | $ 7,792 | $ 9,178 | ||
Market Risk Benefit, Weighted-Average Attained Age of Contract holder | 73 years 4 months 24 days | 72 years 6 months | ||
Index-linked Annuities | ||||
Market Risk Benefit [Line Items] | ||||
Market Risk Benefit, after Increase (Decrease) from Instrument-Specific Credit Risk | $ 0 | $ 3 |
Separate Accounts (Separate Acc
Separate Accounts (Separate Account Liability) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Separate Account, Liability [Line Items] | ||
Separate Account, Liability, Beginning Balance | $ 88,271 | |
Separate Account, Liability, Ending Balance | 88,260 | $ 88,392 |
Variable Annuities | ||
Separate Account, Liability [Line Items] | ||
Separate Account, Liability, Beginning Balance | 79,990 | 77,653 |
Premiums and deposits | 417 | 408 |
Surrenders and withdrawals | (3,990) | (3,010) |
Benefit payments | (788) | (740) |
Investment performance | 5,028 | 7,211 |
Policy charges | (1,060) | (1,076) |
Net transfers from (to) general account | (59) | (11) |
Other | (16) | (12) |
Separate Account, Liability, Ending Balance | 79,522 | 80,423 |
Universal Life Insurance | ||
Separate Account, Liability [Line Items] | ||
Separate Account, Liability, Beginning Balance | 5,921 | 5,218 |
Premiums and deposits | 77 | 83 |
Surrenders and withdrawals | (112) | (91) |
Benefit payments | (31) | (33) |
Investment performance | 510 | 654 |
Policy charges | (103) | (104) |
Net transfers from (to) general account | (31) | (22) |
Other | 0 | 0 |
Separate Account, Liability, Ending Balance | 6,231 | 5,705 |
Company-Owned Life Insurance | ||
Separate Account, Liability [Line Items] | ||
Separate Account, Liability, Beginning Balance | 2,162 | 1,932 |
Premiums and deposits | 0 | 0 |
Surrenders and withdrawals | (5) | (7) |
Benefit payments | (12) | (16) |
Investment performance | 148 | 212 |
Policy charges | (26) | (24) |
Net transfers from (to) general account | 1 | 0 |
Other | (1) | (4) |
Separate Account, Liability, Ending Balance | $ 2,267 | $ 2,093 |
Separate Accounts (Reconciliati
Separate Accounts (Reconciliation of Separate Account Liability) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Separate Account, Liability [Line Items] | |||
Separate account liabilities | $ 88,260 | $ 88,271 | $ 88,392 |
Variable income annuities | 218 | 152 | |
Pension risk transfer annuities | 22 | 19 | |
Rollforwards Total | |||
Separate Account, Liability [Line Items] | |||
Separate account liabilities | $ 88,020 | $ 88,221 |
Separate Accounts (Aggregate FV
Separate Accounts (Aggregate FV of Assets Supporting Separate Accounts) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Separate Account, Liability [Line Items] | ||
Separate account assets | $ 88,260 | $ 88,271 |
Equity securities | ||
Separate Account, Liability [Line Items] | ||
Separate account assets | 87,996 | 87,999 |
Fixed maturity securities | ||
Separate Account, Liability [Line Items] | ||
Separate account assets | 253 | 258 |
Cash and cash equivalents | ||
Separate Account, Liability [Line Items] | ||
Separate account assets | 7 | 7 |
Other assets | ||
Separate Account, Liability [Line Items] | ||
Separate account assets | $ 4 | $ 7 |
Separate Accounts (Net Amount a
Separate Accounts (Net Amount at Risk and Cash Surrender Values) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Policyholder Account Balance | $ 85,865 | $ 78,643 | ||
Separate account liabilities | 88,260 | $ 88,271 | 88,392 | |
Universal Life Insurance | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Policyholder Account Balance | 2,566 | 2,550 | 2,559 | $ 2,658 |
Separate account liabilities | 6,231 | 5,705 | ||
Total account balances | 8,797 | 8,264 | ||
Net amount at risk | 34,485 | 36,753 | ||
Cash surrender value | 8,224 | 7,676 | ||
Variable Annuities | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Policyholder Account Balance | 4,044 | 4,307 | 4,639 | 4,908 |
Separate account liabilities | 79,522 | 79,990 | 80,423 | 77,653 |
Total account balances | 83,566 | 85,062 | ||
Net amount at risk | 12,642 | 13,672 | ||
Cash surrender value | 83,155 | 84,644 | ||
Index-linked Annuities | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Policyholder Account Balance | 46,089 | 41,627 | 38,549 | 33,897 |
Separate account liabilities | 0 | 0 | ||
Total account balances | 46,089 | 38,549 | ||
Cash surrender value | 43,846 | 35,860 | ||
Fixed Rate Annuities | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Policyholder Account Balance | 14,726 | 14,672 | 14,905 | 14,274 |
Separate account liabilities | 0 | 0 | ||
Total account balances | 14,726 | 14,905 | ||
Cash surrender value | 14,063 | 14,281 | ||
ULSG | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Policyholder Account Balance | 4,914 | 5,052 | 5,188 | 5,307 |
Separate account liabilities | 0 | 0 | ||
Total account balances | 4,914 | 5,188 | ||
Net amount at risk | 64,450 | 69,602 | ||
Cash surrender value | 4,414 | 6,160 | ||
Company-Owned Life Insurance | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Policyholder Account Balance | 659 | 653 | 646 | 641 |
Separate account liabilities | 2,267 | $ 2,162 | 2,093 | $ 1,932 |
Total account balances | 2,926 | 2,739 | ||
Net amount at risk | 2,675 | 2,647 | ||
Cash surrender value | $ 2,598 | $ 2,539 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (Information Regarding DAC and VOBA) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items] | ||
Balance, end of period, Total DAC and VOBA | $ 4,791 | |
Variable Annuities | ||
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items] | ||
Balance, beginning of period, DAC | 2,301 | $ 2,508 |
Capitalization | 19 | 19 |
Amortization | (114) | (124) |
Balance, end of period, DAC | 2,206 | 2,403 |
Balance, beginning of period, VOBA | 309 | 341 |
Amortization | (15) | (17) |
Balance, end of period, VOBA | 294 | 324 |
Balance, end of period, Total DAC and VOBA | 2,500 | 2,727 |
Fixed Rate Annuities | ||
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items] | ||
Balance, beginning of period, DAC | 110 | 107 |
Capitalization | 4 | 7 |
Amortization | (2) | (5) |
Balance, end of period, DAC | 112 | 109 |
Balance, beginning of period, VOBA | 60 | 65 |
Amortization | (2) | (2) |
Balance, end of period, VOBA | 58 | 63 |
Balance, end of period, Total DAC and VOBA | 170 | 172 |
Index-linked Annuities | ||
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items] | ||
Balance, beginning of period, DAC | 1,331 | 1,213 |
Capitalization | 190 | 165 |
Amortization | (119) | (111) |
Balance, end of period, DAC | 1,402 | 1,267 |
Balance, beginning of period, VOBA | 0 | 0 |
Amortization | 0 | 0 |
Balance, end of period, VOBA | 0 | 0 |
Balance, end of period, Total DAC and VOBA | 1,402 | 1,267 |
Term and Whole Life Insurance | ||
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items] | ||
Balance, beginning of period, DAC | 354 | 405 |
Capitalization | 1 | 0 |
Amortization | (25) | (27) |
Balance, end of period, DAC | 330 | 378 |
Balance, beginning of period, VOBA | 4 | 5 |
Amortization | 0 | (1) |
Balance, end of period, VOBA | 4 | 4 |
Balance, end of period, Total DAC and VOBA | 334 | 382 |
Universal Life Insurance | ||
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items] | ||
Balance, beginning of period, DAC | 360 | 392 |
Capitalization | 6 | 6 |
Amortization | (21) | (23) |
Balance, end of period, DAC | 345 | 375 |
Balance, beginning of period, VOBA | 43 | 48 |
Amortization | (3) | (3) |
Balance, end of period, VOBA | 40 | 45 |
Balance, end of period, Total DAC and VOBA | $ 385 | $ 420 |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (Information Regarding DSI) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Variable Annuities | ||
Deferred Sale Inducement Cost [Line Items] | ||
Balance, beginning of period | $ 220 | $ 245 |
Amortization | (11) | (13) |
Balance, end of period | 209 | 232 |
Fixed Rate Annuities | ||
Deferred Sale Inducement Cost [Line Items] | ||
Balance, beginning of period | 8 | 9 |
Amortization | (1) | (1) |
Balance, end of period | $ 7 | $ 8 |
Deferred Policy Acquisition C_5
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (Unearned Revenue) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Universal Life Insurance | ||
Deferred Revenue Arrangement [Line Items] | ||
Balance, beginning of period | $ 356 | $ 356 |
Capitalization | 18 | 20 |
Amortization | (18) | (20) |
Balance, end of period | 356 | 356 |
ULSG | ||
Deferred Revenue Arrangement [Line Items] | ||
Balance, beginning of period | 612 | 488 |
Capitalization | 84 | 88 |
Amortization | (29) | (23) |
Balance, end of period | 667 | 553 |
Variable Annuities | ||
Deferred Revenue Arrangement [Line Items] | ||
Balance, beginning of period | 67 | 74 |
Capitalization | 0 | 0 |
Amortization | (4) | (4) |
Balance, end of period | $ 63 | $ 70 |
Investments (Fixed Maturity Sec
Investments (Fixed Maturity Securities by Sector) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, amortized cost | $ 88,176 | $ 87,131 | ||
Fixed maturity securities, allowance for credit losses | 45 | 21 | $ 12 | $ 7 |
Fixed maturity securities, gross unrealized gains | 569 | 1,037 | ||
Fixed maturity securities, gross unrealized losses | 8,119 | 7,156 | ||
Fixed maturity securities, estimated fair value | 80,581 | 80,991 | ||
U.S. corporate | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, amortized cost | 39,956 | 38,778 | ||
Fixed maturity securities, allowance for credit losses | 31 | 15 | 4 | 1 |
Fixed maturity securities, gross unrealized gains | 223 | 388 | ||
Fixed maturity securities, gross unrealized losses | 3,978 | 3,396 | ||
Fixed maturity securities, estimated fair value | 36,170 | 35,755 | ||
Foreign corporate | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, amortized cost | 13,458 | 12,865 | ||
Fixed maturity securities, allowance for credit losses | 4 | 0 | 0 | 1 |
Fixed maturity securities, gross unrealized gains | 47 | 89 | ||
Fixed maturity securities, gross unrealized losses | 1,495 | 1,289 | ||
Fixed maturity securities, estimated fair value | 12,006 | 11,665 | ||
U.S. government and agency | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, amortized cost | 7,750 | 8,656 | ||
Fixed maturity securities, allowance for credit losses | 0 | 0 | ||
Fixed maturity securities, gross unrealized gains | 97 | 286 | ||
Fixed maturity securities, gross unrealized losses | 621 | 523 | ||
Fixed maturity securities, estimated fair value | 7,226 | 8,419 | ||
Residential mortgage-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, amortized cost | 8,691 | 8,199 | ||
Fixed maturity securities, allowance for credit losses | 5 | 5 | 5 | 2 |
Fixed maturity securities, gross unrealized gains | 43 | 48 | ||
Fixed maturity securities, gross unrealized losses | 935 | 812 | ||
Fixed maturity securities, estimated fair value | 7,794 | 7,430 | ||
Commercial mortgage-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, amortized cost | 6,920 | 7,023 | ||
Fixed maturity securities, allowance for credit losses | 5 | 1 | $ 3 | $ 3 |
Fixed maturity securities, gross unrealized gains | 3 | 2 | ||
Fixed maturity securities, gross unrealized losses | 535 | 614 | ||
Fixed maturity securities, estimated fair value | 6,383 | 6,410 | ||
Asset-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, amortized cost | 6,532 | 6,514 | ||
Fixed maturity securities, allowance for credit losses | 0 | 0 | ||
Fixed maturity securities, gross unrealized gains | 28 | 23 | ||
Fixed maturity securities, gross unrealized losses | 98 | 131 | ||
Fixed maturity securities, estimated fair value | 6,462 | 6,406 | ||
State and political subdivision | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, amortized cost | 3,814 | 4,019 | ||
Fixed maturity securities, allowance for credit losses | 0 | 0 | ||
Fixed maturity securities, gross unrealized gains | 100 | 159 | ||
Fixed maturity securities, gross unrealized losses | 355 | 304 | ||
Fixed maturity securities, estimated fair value | 3,559 | 3,874 | ||
Foreign government | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, amortized cost | 1,055 | 1,077 | ||
Fixed maturity securities, allowance for credit losses | 0 | 0 | ||
Fixed maturity securities, gross unrealized gains | 28 | 42 | ||
Fixed maturity securities, gross unrealized losses | 102 | 87 | ||
Fixed maturity securities, estimated fair value | $ 981 | $ 1,032 |
Investments (Maturities of Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost, due in one year or less | $ 3,788 | |
Amortized cost, due after one year through five years | 18,698 | |
Amortized cost, due after five years through ten years | 14,088 | |
Amortized cost, due after ten years | 29,459 | |
Amortized cost, Structured Securities | 22,143 | |
Fixed maturity securities, amortized cost | 88,176 | $ 87,131 |
Estimated fair value, due in one year or less | 3,746 | |
Estimated fair value, due after one year through five years | 18,050 | |
Estimated fair value, due after five years through ten years | 12,715 | |
Estimated fair value, due after ten years | 25,431 | |
Estimated fair value, Structured Securities | 20,639 | |
Fixed maturity securities, estimated fair value | $ 80,581 | $ 80,991 |
Investments (Continuous Gross U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector) (Details) $ in Millions | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | $ 14,633 | $ 8,061 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | $ 934 | $ 585 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, number of securities | 2,179 | 1,347 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | $ 47,055 | $ 51,758 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | $ 7,185 | $ 6,571 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, number of securities | 6,512 | 7,038 |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | $ 7,800 | $ 4,554 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 646 | 409 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 21,587 | 22,796 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 3,332 | 2,987 |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 2,002 | 1,010 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 101 | 73 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 8,054 | 8,311 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 1,394 | 1,216 |
U.S. government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 1,867 | 518 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 71 | 9 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 2,299 | 3,477 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 550 | 514 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 1,049 | 413 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 30 | 20 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 5,474 | 5,774 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 905 | 792 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 479 | 411 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 25 | 33 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 5,549 | 5,786 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 510 | 581 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 721 | 572 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 4 | 3 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 1,798 | 3,360 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 94 | 128 |
State and political subdivision | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 658 | 471 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 56 | 32 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 1,624 | 1,634 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 299 | 272 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 57 | 112 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 1 | 6 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 670 | 620 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | $ 101 | $ 81 |
Investments (Rollforward of the
Investments (Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | $ 21 | $ 7 |
Allowance on securities where credit losses were not previously recorded | 19 | 7 |
Reductions for securities sold | 0 | (1) |
Change in allowance on securities with an allowance recorded in a previous period | 5 | 0 |
Write-offs charged against allowance (1) | 0 | (1) |
Balance, end of period | 45 | 12 |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 15 | 1 |
Allowance on securities where credit losses were not previously recorded | 12 | 4 |
Reductions for securities sold | 0 | (1) |
Change in allowance on securities with an allowance recorded in a previous period | 4 | 0 |
Write-offs charged against allowance (1) | 0 | 0 |
Balance, end of period | 31 | 4 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 5 | 2 |
Allowance on securities where credit losses were not previously recorded | 0 | 3 |
Reductions for securities sold | 0 | 0 |
Change in allowance on securities with an allowance recorded in a previous period | 0 | 0 |
Write-offs charged against allowance (1) | 0 | 0 |
Balance, end of period | 5 | 5 |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 0 | 1 |
Allowance on securities where credit losses were not previously recorded | 4 | 0 |
Reductions for securities sold | 0 | 0 |
Change in allowance on securities with an allowance recorded in a previous period | 0 | 0 |
Write-offs charged against allowance (1) | 0 | (1) |
Balance, end of period | 4 | 0 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 1 | 3 |
Allowance on securities where credit losses were not previously recorded | 3 | 0 |
Reductions for securities sold | 0 | 0 |
Change in allowance on securities with an allowance recorded in a previous period | 1 | 0 |
Write-offs charged against allowance (1) | 0 | 0 |
Balance, end of period | $ 5 | $ 3 |
Investments (Mortgage Loans by
Investments (Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, before allowance for credit losses | $ 22,796 | $ 22,645 | ||
Financing receivable, allowance for credit losses | (155) | (137) | $ (145) | $ (119) |
Financing receivable, net of allowance for credit losses | $ 22,641 | $ 22,508 | ||
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 100.70% | 100.60% | ||
Financing receivable, allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | (0.70%) | (0.60%) | ||
Financing receivable, after allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 100% | 100% | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, before allowance for credit losses | $ 13,130 | $ 13,193 | ||
Financing receivable, allowance for credit losses | $ (99) | $ (69) | (75) | (49) |
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 58% | 58.60% | ||
Agricultural | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, before allowance for credit losses | $ 4,533 | $ 4,445 | ||
Financing receivable, allowance for credit losses | $ (18) | $ (19) | (14) | (15) |
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 20% | 19.80% | ||
Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, before allowance for credit losses | $ 5,133 | $ 5,007 | ||
Financing receivable, allowance for credit losses | $ (38) | $ (49) | $ (56) | $ (55) |
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 22.70% | 22.20% |
Investments (Rollforward of t_2
Investments (Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Financing receivable, allowance for credit losses, beginning of period | $ 137 | $ 119 |
Current period provision | 26 | 27 |
Charge-offs, net of recoveries | (8) | (1) |
Financing receivable, allowance for credit losses, end of period | 155 | 145 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Financing receivable, allowance for credit losses, beginning of period | 69 | 49 |
Current period provision | 38 | 26 |
Charge-offs, net of recoveries | (8) | 0 |
Financing receivable, allowance for credit losses, end of period | 99 | 75 |
Agricultural | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Financing receivable, allowance for credit losses, beginning of period | 19 | 15 |
Current period provision | (1) | 0 |
Charge-offs, net of recoveries | 0 | (1) |
Financing receivable, allowance for credit losses, end of period | 18 | 14 |
Residential | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Financing receivable, allowance for credit losses, beginning of period | 49 | 55 |
Current period provision | (11) | 1 |
Charge-offs, net of recoveries | 0 | 0 |
Financing receivable, allowance for credit losses, end of period | $ 38 | $ 56 |
Investments (Credit Quality of
Investments (Credit Quality of Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | $ 516 | $ 514 |
Financing receivable, originated in FY before latest FY | 630 | 4,423 |
Financing receivable, originated two years before latest FY | 4,452 | 6,136 |
Financing receivable, originated three years before latest FY | 6,139 | 1,044 |
Financing receivable, originated four years before latest FY | 1,003 | 2,600 |
Financing receivable, originated five or more years before latest FY | 10,056 | 7,928 |
Financing receivable, before allowance for credit losses | 22,796 | 22,645 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 287 | 206 |
Financing receivable, originated in FY before latest FY | 199 | 2,417 |
Financing receivable, originated two years before latest FY | 2,416 | 3,205 |
Financing receivable, originated three years before latest FY | 3,200 | 438 |
Financing receivable, originated four years before latest FY | 435 | 1,859 |
Financing receivable, originated five or more years before latest FY | 6,593 | 5,068 |
Financing receivable, before allowance for credit losses | $ 13,130 | $ 13,193 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 100% | 100% |
Commercial | Debt Service Coverage Ratio, Greater than 1.20x | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 12,078 | $ 12,086 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 92% | 91.60% |
Commercial | Debt Service Coverage Ratio, 1.00x to 1.20x | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 728 | $ 702 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 5.50% | 5.30% |
Commercial | Debt Service Coverage Ratio, Less than 1.00x | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 324 | $ 405 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 2.50% | 3.10% |
Commercial | Loan-to-Value Ratio, Less than 65% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | $ 264 | $ 206 |
Financing receivable, originated in FY before latest FY | 199 | 655 |
Financing receivable, originated two years before latest FY | 654 | 1,823 |
Financing receivable, originated three years before latest FY | 1,817 | 177 |
Financing receivable, originated four years before latest FY | 176 | 1,239 |
Financing receivable, originated five or more years before latest FY | 3,410 | 2,630 |
Financing receivable, before allowance for credit losses | 6,520 | 6,730 |
Commercial | Loan-to-Value Ratio, 65% to 75% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 23 | 0 |
Financing receivable, originated in FY before latest FY | 0 | 935 |
Financing receivable, originated two years before latest FY | 935 | 1,079 |
Financing receivable, originated three years before latest FY | 1,022 | 222 |
Financing receivable, originated four years before latest FY | 121 | 261 |
Financing receivable, originated five or more years before latest FY | 1,199 | 1,158 |
Financing receivable, before allowance for credit losses | 3,300 | 3,655 |
Commercial | Loan-to-Value Ratio, 76% to 80% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 0 | 0 |
Financing receivable, originated in FY before latest FY | 0 | 427 |
Financing receivable, originated two years before latest FY | 427 | 76 |
Financing receivable, originated three years before latest FY | 258 | 39 |
Financing receivable, originated four years before latest FY | 138 | 209 |
Financing receivable, originated five or more years before latest FY | 794 | 564 |
Financing receivable, before allowance for credit losses | 1,617 | 1,315 |
Commercial | Loan-to-Value Ratio, Greater than 80% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 0 | 0 |
Financing receivable, originated in FY before latest FY | 0 | 400 |
Financing receivable, originated two years before latest FY | 400 | 227 |
Financing receivable, originated three years before latest FY | 103 | 0 |
Financing receivable, originated four years before latest FY | 0 | 150 |
Financing receivable, originated five or more years before latest FY | 1,190 | 716 |
Financing receivable, before allowance for credit losses | 1,693 | 1,493 |
Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 197 | 203 |
Financing receivable, originated in FY before latest FY | 215 | 698 |
Financing receivable, originated two years before latest FY | 700 | 1,240 |
Financing receivable, originated three years before latest FY | 1,218 | 460 |
Financing receivable, originated four years before latest FY | 426 | 535 |
Financing receivable, originated five or more years before latest FY | 1,777 | 1,309 |
Financing receivable, before allowance for credit losses | 4,533 | 4,445 |
Agricultural | Loan-to-Value Ratio, Less than 65% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 191 | 202 |
Financing receivable, originated in FY before latest FY | 214 | 571 |
Financing receivable, originated two years before latest FY | 574 | 1,132 |
Financing receivable, originated three years before latest FY | 1,140 | 454 |
Financing receivable, originated four years before latest FY | 414 | 505 |
Financing receivable, originated five or more years before latest FY | 1,744 | 1,292 |
Financing receivable, before allowance for credit losses | 4,277 | 4,156 |
Agricultural | Loan-to-Value Ratio, 65% to 75% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 6 | 1 |
Financing receivable, originated in FY before latest FY | 1 | 127 |
Financing receivable, originated two years before latest FY | 126 | 108 |
Financing receivable, originated three years before latest FY | 78 | 6 |
Financing receivable, originated four years before latest FY | 12 | 30 |
Financing receivable, originated five or more years before latest FY | 33 | 17 |
Financing receivable, before allowance for credit losses | 256 | 289 |
Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 32 | 105 |
Financing receivable, originated in FY before latest FY | 216 | 1,308 |
Financing receivable, originated two years before latest FY | 1,336 | 1,691 |
Financing receivable, originated three years before latest FY | 1,721 | 146 |
Financing receivable, originated four years before latest FY | 142 | 206 |
Financing receivable, originated five or more years before latest FY | 1,686 | 1,551 |
Financing receivable, before allowance for credit losses | 5,133 | 5,007 |
Residential | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 32 | 105 |
Financing receivable, originated in FY before latest FY | 215 | 1,286 |
Financing receivable, originated two years before latest FY | 1,309 | 1,669 |
Financing receivable, originated three years before latest FY | 1,703 | 145 |
Financing receivable, originated four years before latest FY | 141 | 204 |
Financing receivable, originated five or more years before latest FY | 1,638 | 1,508 |
Financing receivable, before allowance for credit losses | 5,038 | 4,917 |
Residential | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 0 | 0 |
Financing receivable, originated in FY before latest FY | 1 | 22 |
Financing receivable, originated two years before latest FY | 27 | 22 |
Financing receivable, originated three years before latest FY | 18 | 1 |
Financing receivable, originated four years before latest FY | 1 | 2 |
Financing receivable, originated five or more years before latest FY | 48 | 43 |
Financing receivable, before allowance for credit losses | $ 95 | $ 90 |
Investments (Past Due Mortgage
Investments (Past Due Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 22,796 | $ 22,645 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 22,498 | 22,520 |
30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 84 | 2 |
60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 130 | 30 |
90 to 179 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 27 | 23 |
180 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 57 | 70 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 13,130 | 13,193 |
Commercial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 13,031 | 13,176 |
Commercial | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 0 | 0 |
Commercial | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 99 | 0 |
Commercial | 90 to 179 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 0 | 0 |
Commercial | 180 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 0 | 17 |
Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 4,533 | 4,445 |
Agricultural | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 4,513 | 4,429 |
Agricultural | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 0 | 0 |
Agricultural | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 0 | 0 |
Agricultural | 90 to 179 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 4 | 0 |
Agricultural | 180 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 16 | 16 |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 5,133 | 5,007 |
Residential | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 4,954 | 4,915 |
Residential | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 84 | 2 |
Residential | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 31 | 30 |
Residential | 90 to 179 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | 23 | 23 |
Residential | 180 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 41 | $ 37 |
Investments (Mortgage Loans in
Investments (Mortgage Loans in Nonaccrual Status by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Nonaccrual [Line Items] | ||
Financing receivable in nonaccrual status | $ 210 | $ 107 |
Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing receivable in nonaccrual status | 99 | 17 |
Agricultural | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing receivable in nonaccrual status | 16 | 0 |
Residential | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing receivable in nonaccrual status | $ 95 | $ 90 |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains (Losses)) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | ||
Fixed maturity securities | $ (7,550) | $ (6,119) |
Derivatives | 443 | 351 |
Other | (9) | 2 |
Subtotal | (7,116) | (5,766) |
Amounts allocated from: Future policy benefits | 920 | 652 |
Deferred income tax benefit (expense) | 1,301 | 1,074 |
Net unrealized investment gains (losses) | $ (4,895) | $ (4,040) |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Investment Gains (Losses)) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized investment gains (losses), beginning of period | $ (4,040) |
Unrealized investment gains (losses) during the period | (1,350) |
Unrealized investment gains (losses) relating to: Future policy benefits | 268 |
Unrealized investment gains (losses) relating to: Deferred income tax benefit (expense) | 227 |
Unrealized investment gains (losses), end of period | (4,895) |
Change in net unrealized investment gains (losses) | $ (855) |
Investments (Securities Lending
Investments (Securities Lending) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | $ 3,279 | $ 3,277 |
Reinvestment portfolio — estimated fair value | 3,260 | 3,246 |
Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities on loan | 3,562 | 3,420 |
Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities on loan | $ 3,178 | $ 3,194 |
Investments (Securities Lendi_2
Investments (Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | $ 3,279 | $ 3,277 |
Remaining Tenor of Securities Lending Agreements: Open | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 622 | 647 |
Remaining Tenor of Securities Lending Agreements: 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 1,278 | 1,046 |
Remaining Tenor of Securities Lending Agreements: 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 1,379 | 1,584 |
U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 2,897 | 2,886 |
U.S. government and agency | Remaining Tenor of Securities Lending Agreements: Open | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 622 | 647 |
U.S. government and agency | Remaining Tenor of Securities Lending Agreements: 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 896 | 655 |
U.S. government and agency | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 1,379 | 1,584 |
U.S. corporate | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 268 | 252 |
U.S. corporate | Remaining Tenor of Securities Lending Agreements: Open | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 0 | 0 |
U.S. corporate | Remaining Tenor of Securities Lending Agreements: 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 268 | 252 |
U.S. corporate | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 0 | 0 |
Foreign corporate | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 100 | 130 |
Foreign corporate | Remaining Tenor of Securities Lending Agreements: Open | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 0 | 0 |
Foreign corporate | Remaining Tenor of Securities Lending Agreements: 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 100 | 9 |
Foreign corporate | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 0 | 0 |
Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 14 | 9 |
Foreign government | Remaining Tenor of Securities Lending Agreements: Open | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 0 | 0 |
Foreign government | Remaining Tenor of Securities Lending Agreements: 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 14 | 130 |
Foreign government | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | $ 0 | $ 0 |
Investments (Invested Assets on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit (regulatory deposits) | $ 6,150 | $ 8,593 |
Invested assets held in trust (reinsurance agreements) | 7,207 | 7,142 |
Invested assets pledged as collateral | 13,473 | 13,979 |
Total invested assets on deposit, held in trust and pledged as collateral | $ 26,830 | $ 29,714 |
Investments (Variable Interest
Investments (Variable Interest Entities) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Carrying amount | $ 237,438 | $ 236,340 |
VIE, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 19,954 | 19,759 |
Maximum exposure to loss | 22,289 | 22,026 |
VIE, Not Primary Beneficiary | Fixed maturity securities | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 15,657 | 15,526 |
Maximum exposure to loss | 16,934 | 16,771 |
VIE, Not Primary Beneficiary | Limited partnerships and LLCs | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 4,297 | 4,233 |
Maximum exposure to loss | $ 5,355 | $ 5,255 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 1,394 | $ 1,288 | $ 2,734 | $ 2,438 |
Less: Investment expenses | 87 | 92 | 173 | 183 |
Net investment income | 1,307 | 1,196 | 2,561 | 2,255 |
Fixed maturity securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 937 | 868 | 1,856 | 1,705 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 0 | 1 | 2 | 1 |
Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 250 | 237 | 495 | 476 |
Policy loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 19 | 18 | 33 | 33 |
Limited partnerships and LLCs | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 99 | 89 | 173 | 76 |
Cash, cash equivalents and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 63 | 55 | 124 | 105 |
Other assets | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ 26 | $ 20 | $ 51 | $ 42 |
Investments (Components of Net
Investments (Components of Net Investment Gains (Losses)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net Investment Gains (Losses) [Line Items] | ||||
Net investment gains (losses) | $ (120) | $ (64) | $ (162) | $ (160) |
Fixed maturity securities | ||||
Net Investment Gains (Losses) [Line Items] | ||||
Net investment gains (losses) | (97) | (55) | (135) | (131) |
Equity securities | ||||
Net Investment Gains (Losses) [Line Items] | ||||
Net investment gains (losses) | (1) | 2 | 0 | (1) |
Mortgage loans | ||||
Net Investment Gains (Losses) [Line Items] | ||||
Net investment gains (losses) | (22) | (10) | (27) | (27) |
Limited partnerships and LLCs | ||||
Net Investment Gains (Losses) [Line Items] | ||||
Net investment gains (losses) | (1) | 0 | (1) | 0 |
Other assets | ||||
Net Investment Gains (Losses) [Line Items] | ||||
Net investment gains (losses) | $ 1 | $ (1) | $ 1 | $ (1) |
Investments (Sales or Disposals
Investments (Sales or Disposals of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales or disposals of fixed maturity securities | $ 1,175 | $ 505 | $ 1,855 | $ 1,277 |
Fixed maturity securities, gross investment gains | 8 | 8 | 10 | 11 |
Fixed maturity securities, gross investment losses | (86) | (56) | (120) | (129) |
Fixed maturity securities, net investment gains (losses) | $ (78) | $ (48) | $ (110) | $ (118) |
Investments (Fixed Maturity S_2
Investments (Fixed Maturity Securities - Narrative) (Details) $ in Millions | 6 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, estimated fair value | $ 80,581 | $ 80,991 | ||
Fixed maturity securities, allowance for credit losses | $ 45 | $ 12 | 21 | $ 7 |
Fixed maturity securities with allowance for credit losses, number of securities | 27 | |||
Fixed maturity securities, total write-offs | $ 1 | $ 7 | ||
Non-Income Producing | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, estimated fair value | 45 | 52 | ||
Fixed maturity securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Accrued interest receivable | $ 673 | $ 655 |
Investments (Mortgage Loans - N
Investments (Mortgage Loans - Narrative) (Details) - Mortgage Loans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accrued interest receivable | $ 122 | $ 122 | $ 123 | ||
Financing receivables in nonaccrual status with no allowance for credit losses | $ 30 | $ 30 | $ 0 | ||
Minimum | Performing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, before allowance for credit losses by performance status as a percentage of financing receivables, before allowance for credit losses | 99% | 99% | 99% | ||
Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivables in nonaccrual status, investment income | $ 1 | $ 1 | |||
Residential | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivables purchased from third parties | $ 188 | $ 0 | $ 349 | $ 32 |
Investments (Other Invested Ass
Investments (Other Invested Assets - Narrative) (Details) | Jun. 30, 2024 |
Minimum | |
Derivative [Line Items] | |
Percentage of other invested assets comprised of freestanding derivatives with positive estimated fair values | 75% |
Investments (Securities Lendi_3
Investments (Securities Lending - Narrative) (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Cash collateral on deposit from counterparties | $ 606 |
Percentage of reinvestment portfolio invested in liquid assets | 53% |
Investments (Invested Assets _2
Investments (Invested Assets on Deposit, Held in Trust and Pledged as Collateral - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Invested assets on deposit (regulatory deposits) | $ 6,150 | $ 8,593 |
Invested assets held in trust (reinsurance agreements) | 7,207 | 7,142 |
Restricted Cash and Cash Equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Invested assets on deposit (regulatory deposits) | 50 | 102 |
Invested assets held in trust (reinsurance agreements) | 199 | 120 |
FHLB common stock | $ 238 | $ 245 |
Investments (Net Investment I_2
Investments (Net Investment Income - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net Investment Income [Line Items] | ||||
Net investment income | $ 1,307 | $ 1,196 | $ 2,561 | $ 2,255 |
Other limited partnership interests | ||||
Net Investment Income [Line Items] | ||||
Net investment income | $ 102 | $ 93 | $ 195 | $ 92 |
Derivatives (Primary Risks Mana
Derivatives (Primary Risks Managed by Derivatives) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 197,677 | $ 173,236 |
Derivative assets | 3,306 | 3,714 |
Derivative liabilities | 4,129 | 5,088 |
Derivatives Designated as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 4,413 | 3,939 |
Derivative assets | 421 | 348 |
Derivative liabilities | 23 | 45 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 193,264 | 169,297 |
Derivative assets | 2,885 | 3,366 |
Derivative liabilities | 4,106 | 5,043 |
Interest rate swaps | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 53,524 | 31,252 |
Derivative assets | 130 | 140 |
Derivative liabilities | 179 | 103 |
Interest rate floors | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 3,500 | 3,500 |
Derivative assets | 2 | 7 |
Derivative liabilities | 0 | 1 |
Interest rate caps | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 6,800 | 7,050 |
Derivative assets | 12 | 19 |
Derivative liabilities | 2 | 1 |
Interest rate futures | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 80 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Interest rate options | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 23,050 | 33,680 |
Derivative assets | 38 | 47 |
Derivative liabilities | 222 | 167 |
Interest rate forwards | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 13,886 | 17,017 |
Derivative assets | 25 | 32 |
Derivative liabilities | 1,653 | 1,937 |
Interest rate forwards | Cash flow hedges: | Derivatives Designated as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 500 | 0 |
Derivative assets | 12 | 0 |
Derivative liabilities | 0 | 0 |
Foreign currency swaps | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 723 | 747 |
Derivative assets | 106 | 101 |
Derivative liabilities | 0 | 1 |
Foreign currency swaps | Cash flow hedges: | Derivatives Designated as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 3,913 | 3,939 |
Derivative assets | 409 | 348 |
Derivative liabilities | 23 | 45 |
Foreign currency forwards | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 726 | 535 |
Derivative assets | 2 | 0 |
Derivative liabilities | 0 | 9 |
Credit default swaps — written | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,096 | 1,405 |
Derivative assets | 20 | 27 |
Derivative liabilities | 0 | 0 |
Equity index options | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 20,883 | 20,099 |
Derivative assets | 1,234 | 757 |
Derivative liabilities | 940 | 687 |
Equity total return swaps | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 68,976 | 53,742 |
Derivative assets | 1,316 | 2,236 |
Derivative liabilities | 1,110 | 2,137 |
Hybrid options | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 20 | 270 |
Derivative assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Derivatives (Derivatives Pertai
Derivatives (Derivatives Pertaining to Hedged Items) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | $ (662) | $ (1,811) | $ (2,583) | $ (2,386) |
Net Derivative Gains (Losses) Recognized for Hedged Items | (7) | (11) | (11) | (1) |
Net Investment Income | 1,307 | 1,196 | 2,561 | 2,255 |
Policyholder Benefits and Claims | 2 | 0 | 4 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 44 | (50) | 97 | (90) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | (6) | (6) | (9) | 4 |
Policyholder Benefits and Claims | 0 | 0 | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 | 0 | 0 |
Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | (1) | (5) | (2) | (5) |
Policyholder Benefits and Claims | 2 | 0 | 4 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 44 | (50) | 97 | (90) |
Net Derivative Gains (Losses) Recognized for Derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (655) | (1,800) | (2,572) | (2,385) |
Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (656) | (1,803) | (2,576) | (2,387) |
Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 1 | 3 | 4 | 2 |
Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Investment Income | 14 | 14 | 27 | 29 |
Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Investment Income | 0 | 0 | 0 | 0 |
Net Investment Income | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Investment Income | 14 | 14 | 27 | 29 |
Interest rate | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 | 0 |
Policyholder Benefits and Claims | 0 | 0 | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 | 0 | 0 |
Interest rate | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 | 0 |
Policyholder Benefits and Claims | 2 | 0 | 4 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 3 | (1) | 12 | 1 |
Interest rate | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (319) | (551) | (1,101) | 59 |
Interest rate | Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | (2) | 3 | (2) |
Interest rate | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Investment Income | 0 | 0 | 0 | 0 |
Interest rate | Net Investment Income | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Investment Income | 1 | 1 | 1 | 2 |
Foreign currency exchange rate | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | (6) | (6) | (9) | 4 |
Policyholder Benefits and Claims | 0 | 0 | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 | 0 | 0 |
Foreign currency exchange rate | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | (1) | (5) | (2) | (5) |
Policyholder Benefits and Claims | 0 | 0 | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 41 | (49) | 85 | (91) |
Foreign currency exchange rate | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 14 | 9 | 45 | 4 |
Foreign currency exchange rate | Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 1 | 5 | 1 | 4 |
Foreign currency exchange rate | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Investment Income | 0 | 0 | 0 | 0 |
Foreign currency exchange rate | Net Investment Income | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Investment Income | 13 | 13 | 26 | 27 |
Credit | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 | 0 |
Policyholder Benefits and Claims | 0 | 0 | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 | 0 | 0 |
Credit | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 1 | 9 | 7 | 19 |
Credit | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Investment Income | 0 | 0 | 0 | 0 |
Equity market | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 | 0 |
Policyholder Benefits and Claims | 0 | 0 | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 | 0 | 0 |
Equity market | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 362 | 433 | 1,073 | 324 |
Equity market | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Investment Income | 0 | 0 | 0 | 0 |
Embedded | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 | 0 |
Policyholder Benefits and Claims | 0 | 0 | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 | 0 | 0 |
Embedded | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (714) | (1,703) | (2,600) | (2,793) |
Embedded | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Investment Income | $ 0 | $ 0 | $ 0 | $ 0 |
Derivatives (Credit Derivatives
Derivatives (Credit Derivatives) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 20 | $ 27 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 1,096 | $ 1,405 |
Weighted Average Years to Maturity (2) | 3 years 4 months 24 days | 3 years 10 months 24 days |
Credit default swaps | Aaa/Aa/A | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 4 | $ 6 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 416 | $ 419 |
Weighted Average Years to Maturity (2) | 1 year 1 month 6 days | 1 year 7 months 6 days |
Credit default swaps | Baa | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 14 | $ 19 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 652 | $ 958 |
Weighted Average Years to Maturity (2) | 4 years 9 months 18 days | 4 years 10 months 24 days |
Credit default swaps | Ba | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 2 | $ 2 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 24 | $ 24 |
Weighted Average Years to Maturity (2) | 2 years 6 months | 3 years |
Credit default swaps | Caa and Lower | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 0 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 4 | $ 4 |
Weighted Average Years to Maturity (2) | 1 year 6 months | 2 years |
Derivatives (Estimated Fair Val
Derivatives (Estimated Fair Value of Derivatives Assets and Liabilities after Master Netting Agreements and Cash Collateral) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Offsetting Derivative Assets [Abstract] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 3,105 | $ 3,506 |
Derivative Asset, Not Offset, Policy Election Deduction | (2,480) | (3,112) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (453) | (164) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 172 | 230 |
Derivative Asset, Collateral, Obligation to Return Securities, Offset | (107) | (194) |
Derivative Asset, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 65 | 36 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 4,033 | 4,925 |
Derivative Liability, Not Offset, Policy Election Deduction | (2,480) | (3,112) |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | (8) |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 1,553 | 1,805 |
Derivative Liability, Collateral, Right to Reclaim Securities, Offset | (1,544) | (1,805) |
Derivative Liability, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | $ 9 | $ 0 |
Derivatives (Credit Risk on Fre
Derivatives (Credit Risk on Freestanding Derivatives) (Details) - Derivatives Subject To Credit-Contingent Provisions - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Credit Derivatives [Line Items] | ||
Estimated fair value of derivatives in a net liability position (1) | $ 1,553 | $ 1,813 |
Fixed maturity securities | ||
Credit Derivatives [Line Items] | ||
Estimated fair value of collateral provided (2): | $ 3,943 | $ 4,811 |
Derivatives (Derivatives - Narr
Derivatives (Derivatives - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative AOCI associated with Cash Flow Hedges Pre Tax | $ 443 | $ 351 |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | $ 80,581 | $ 80,991 |
Equity securities | 85 | 102 |
Short-term investments | 1,390 | 1,169 |
Derivative assets | 3,306 | 3,714 |
Market risk benefit assets | 916 | 656 |
Separate account assets | 88,260 | 88,271 |
Liabilities [Abstract] | ||
Market risk benefit liabilities | 8,708 | 10,323 |
Derivative liabilities | 4,129 | 5,088 |
Recurring | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 80,581 | 80,991 |
Equity securities | 85 | 102 |
Short-term investments | 1,390 | 1,169 |
Derivative assets | 3,306 | 3,714 |
Embedded derivatives on index-linked annuities | 38 | 0 |
Market risk benefit assets | 916 | 656 |
Separate account assets | 88,260 | 88,271 |
Total assets | 174,576 | 174,903 |
Liabilities [Abstract] | ||
Market risk benefit liabilities | 8,708 | 10,323 |
Derivative liabilities | 4,129 | 5,088 |
Embedded derivatives on index-linked annuities (2) | 10,621 | 8,186 |
Total liabilities | 23,458 | 23,597 |
Recurring | Interest rate | ||
Assets [Abstract] | ||
Derivative assets | 219 | 245 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,056 | 2,209 |
Recurring | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets | 517 | 449 |
Liabilities [Abstract] | ||
Derivative liabilities | 23 | 55 |
Recurring | Credit | ||
Assets [Abstract] | ||
Derivative assets | 20 | 27 |
Recurring | Equity market | ||
Assets [Abstract] | ||
Derivative assets | 2,550 | 2,993 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,050 | 2,824 |
Recurring | U.S. corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 36,170 | 35,755 |
Recurring | Foreign corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 12,006 | 11,665 |
Recurring | U.S. government and agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 7,226 | 8,419 |
Recurring | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 7,794 | 7,430 |
Recurring | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 6,383 | 6,410 |
Recurring | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 6,462 | 6,406 |
Recurring | State and political subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 3,559 | 3,874 |
Recurring | Foreign government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 981 | 1,032 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 2,798 | 3,786 |
Equity securities | 52 | 55 |
Short-term investments | 779 | 614 |
Derivative assets | 0 | 0 |
Embedded derivatives on index-linked annuities | 0 | 0 |
Market risk benefit assets | 0 | 0 |
Separate account assets | 21 | 20 |
Total assets | 3,650 | 4,475 |
Liabilities [Abstract] | ||
Market risk benefit liabilities | 0 | 0 |
Derivative liabilities | 0 | 0 |
Embedded derivatives on index-linked annuities (2) | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 1 | Interest rate | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Credit | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Recurring | Level 1 | Equity market | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | U.S. corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | Foreign corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | U.S. government and agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 2,798 | 3,786 |
Recurring | Level 1 | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | State and political subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | Foreign government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 75,891 | 75,469 |
Equity securities | 9 | 22 |
Short-term investments | 611 | 555 |
Derivative assets | 3,296 | 3,696 |
Embedded derivatives on index-linked annuities | 0 | 0 |
Market risk benefit assets | 0 | 0 |
Separate account assets | 88,239 | 88,251 |
Total assets | 168,046 | 167,993 |
Liabilities [Abstract] | ||
Market risk benefit liabilities | 0 | 0 |
Derivative liabilities | 4,129 | 5,088 |
Embedded derivatives on index-linked annuities (2) | 0 | 0 |
Total liabilities | 4,129 | 5,088 |
Recurring | Level 2 | Interest rate | ||
Assets [Abstract] | ||
Derivative assets | 219 | 245 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,056 | 2,209 |
Recurring | Level 2 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets | 511 | 437 |
Liabilities [Abstract] | ||
Derivative liabilities | 23 | 55 |
Recurring | Level 2 | Credit | ||
Assets [Abstract] | ||
Derivative assets | 16 | 21 |
Recurring | Level 2 | Equity market | ||
Assets [Abstract] | ||
Derivative assets | 2,550 | 2,993 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,050 | 2,824 |
Recurring | Level 2 | U.S. corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 35,266 | 34,760 |
Recurring | Level 2 | Foreign corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 11,545 | 11,340 |
Recurring | Level 2 | U.S. government and agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 4,428 | 4,633 |
Recurring | Level 2 | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 7,771 | 7,415 |
Recurring | Level 2 | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 6,315 | 6,371 |
Recurring | Level 2 | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 6,047 | 6,080 |
Recurring | Level 2 | State and political subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 3,559 | 3,874 |
Recurring | Level 2 | Foreign government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 960 | 996 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 1,892 | 1,736 |
Equity securities | 24 | 25 |
Short-term investments | 0 | 0 |
Derivative assets | 10 | 18 |
Embedded derivatives on index-linked annuities | 38 | 0 |
Market risk benefit assets | 916 | 656 |
Separate account assets | 0 | 0 |
Total assets | 2,880 | 2,435 |
Liabilities [Abstract] | ||
Market risk benefit liabilities | 8,708 | 10,323 |
Derivative liabilities | 0 | 0 |
Embedded derivatives on index-linked annuities (2) | 10,621 | 8,186 |
Total liabilities | 19,329 | 18,509 |
Recurring | Level 3 | Interest rate | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets | 6 | 12 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Credit | ||
Assets [Abstract] | ||
Derivative assets | 4 | 6 |
Recurring | Level 3 | Equity market | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | U.S. corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 904 | 995 |
Recurring | Level 3 | Foreign corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 461 | 325 |
Recurring | Level 3 | U.S. government and agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 3 | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 23 | 15 |
Recurring | Level 3 | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 68 | 39 |
Recurring | Level 3 | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 415 | 326 |
Recurring | Level 3 | State and political subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 3 | Foreign government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | $ 21 | $ 36 |
Fair Value (Assets and Liabilit
Fair Value (Assets and Liabilities Measured - Quantitative Information) (Details) - Level 3 | Jun. 30, 2024 | Dec. 31, 2023 |
Measurement Input, Mortality Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Market Risk Benefit, Measurement Input | 0.0004 | 0.0004 |
Embedded Derivative Liability, Measurement Input | 0.0003 | 0.0003 |
Measurement Input, Mortality Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Market Risk Benefit, Measurement Input | 0.1290 | 0.1290 |
Embedded Derivative Liability, Measurement Input | 0.0924 | 0.0924 |
Measurement Input, Lapse Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Market Risk Benefit, Measurement Input | 0.0100 | 0.0100 |
Embedded Derivative Liability, Measurement Input | 0.0100 | 0.0100 |
Measurement Input, Lapse Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Market Risk Benefit, Measurement Input | 0.2280 | 0.2280 |
Embedded Derivative Liability, Measurement Input | 0.6230 | 0.6230 |
Measurement Input, Utilization Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Market Risk Benefit, Measurement Input | 0 | 0 |
Measurement Input, Utilization Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Market Risk Benefit, Measurement Input | 0.2500 | 0.2500 |
Measurement Input, Withdrawal Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Market Risk Benefit, Measurement Input | 0 | 0 |
Embedded Derivative Liability, Measurement Input | 0.0050 | 0.0050 |
Measurement Input, Withdrawal Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Market Risk Benefit, Measurement Input | 0.1000 | 0.1000 |
Embedded Derivative Liability, Measurement Input | 0.0900 | 0.0900 |
Measurement Input, Long Term Equity Volatilities | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Market Risk Benefit, Measurement Input | 0.1183 | 0.1259 |
Measurement Input, Long Term Equity Volatilities | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Market Risk Benefit, Measurement Input | 0.2729 | 0.2250 |
Measurement Input, Entity Credit Risk | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Market Risk Benefit, Measurement Input | 0.0056 | 0.0076 |
Embedded Derivative Liability, Measurement Input | 0.0030 | 0.0045 |
Measurement Input, Entity Credit Risk | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Market Risk Benefit, Measurement Input | 0.0147 | 0.0163 |
Embedded Derivative Liability, Measurement Input | 0.0182 | 0.0174 |
Fair Value (Unobservable Input
Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net Derivatives (2) | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance, beginning of period | $ 11 | $ 33 | $ 18 | $ 35 |
Total realized/unrealized gains (losses) included in net income (loss) (3) (4) | (1) | (5) | (3) | (5) |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases (5) | 0 | 9 | 1 | 9 |
Sales (5) | 0 | 0 | 0 | 0 |
Issuances (5) | 0 | 0 | 0 | 0 |
Settlements (5) | 0 | 0 | 0 | 0 |
Transfers into Level 3 (6) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (6) | 0 | (10) | (6) | (12) |
Balance, end of period | 10 | 27 | 10 | 27 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (1) | (5) | (3) | (5) |
Changes in unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Embedded Derivatives on Index-Linked Annuities | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance, beginning of period | (9,941) | (5,164) | (8,186) | (3,932) |
Total realized/unrealized gains (losses) included in net income (loss) (3) (4) | (714) | (1,703) | (2,600) | (2,793) |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases (5) | 0 | 0 | 0 | 0 |
Sales (5) | 0 | 0 | 0 | 0 |
Issuances (5) | 0 | 0 | 0 | 0 |
Settlements (5) | 72 | (19) | 203 | (161) |
Transfers into Level 3 (6) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (6) | 0 | 0 | 0 | 0 |
Balance, end of period | (10,583) | (6,886) | (10,583) | (6,886) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (881) | (1,802) | (2,921) | (2,968) |
Changes in unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 |
Corporate (1) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 1,267 | 1,936 | 1,320 | 1,787 |
Total realized/unrealized gains (losses) included in net income (loss) (3) (4) | (15) | (4) | (19) | (3) |
Total realized/unrealized gains (losses) included in AOCI | (2) | (22) | (9) | 7 |
Purchases (5) | 199 | 68 | 238 | 210 |
Sales (5) | (43) | (42) | (84) | (73) |
Issuances (5) | 0 | 0 | 0 | 0 |
Settlements (5) | 0 | 0 | 0 | 0 |
Transfers into Level 3 (6) | 41 | 26 | 55 | 56 |
Transfers out of Level 3 (6) | (82) | (31) | (136) | (53) |
Balance, end of period | 1,365 | 1,931 | 1,365 | 1,931 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (15) | (3) | (18) | (2) |
Changes in unrealized gains (losses) included in OCI | (2) | (24) | (19) | 1 |
Structured Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 482 | 350 | 380 | 365 |
Total realized/unrealized gains (losses) included in net income (loss) (3) (4) | 0 | 0 | 1 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 2 | (1) | 2 | 1 |
Purchases (5) | 129 | 36 | 207 | 52 |
Sales (5) | (26) | (3) | (31) | (7) |
Issuances (5) | 0 | 0 | 0 | 0 |
Settlements (5) | 0 | 0 | 0 | 0 |
Transfers into Level 3 (6) | 0 | 2 | 0 | 2 |
Transfers out of Level 3 (6) | (81) | (13) | (53) | (42) |
Balance, end of period | 506 | 371 | 506 | 371 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | (1) |
Changes in unrealized gains (losses) included in OCI | 1 | (1) | 0 | 0 |
Foreign government | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 21 | 39 | 36 | 38 |
Total realized/unrealized gains (losses) included in net income (loss) (3) (4) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 1 |
Purchases (5) | 0 | 0 | 0 | 0 |
Sales (5) | 0 | (1) | 0 | (1) |
Issuances (5) | 0 | 0 | 0 | 0 |
Settlements (5) | 0 | 0 | 0 | 0 |
Transfers into Level 3 (6) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (6) | 0 | 0 | (15) | 0 |
Balance, end of period | 21 | 38 | 21 | 38 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Changes in unrealized gains (losses) included in OCI | 0 | 0 | 0 | 1 |
Equity Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 25 | 25 | 25 | 27 |
Total realized/unrealized gains (losses) included in net income (loss) (3) (4) | (1) | (1) | (1) | (3) |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases (5) | 0 | 1 | 0 | 1 |
Sales (5) | 0 | 0 | 0 | 0 |
Issuances (5) | 0 | 0 | 0 | 0 |
Settlements (5) | 0 | 0 | 0 | 0 |
Transfers into Level 3 (6) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (6) | 0 | 0 | 0 | 0 |
Balance, end of period | 24 | 25 | 24 | 25 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (2) | (2) | (2) | (3) |
Changes in unrealized gains (losses) included in OCI | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Assets | |||
Policy loans | $ 1,470 | $ 1,331 | |
Liabilities | |||
Separate account liabilities | 88,260 | 88,271 | $ 88,392 |
Carrying Value | |||
Assets | |||
Mortgage loans | 22,641 | 22,508 | |
Policy loans | 1,470 | 1,331 | |
Other invested assets | 240 | 257 | |
Premiums, reinsurance and other receivables | 8,206 | 7,577 | |
Liabilities | |||
Policyholder account balances | 32,467 | 31,471 | |
Long-term debt | 3,155 | 3,156 | |
Other liabilities | 1,327 | 1,142 | |
Separate account liabilities | 1,259 | 1,150 | |
Estimated Fair Value | |||
Assets | |||
Mortgage loans | 20,592 | 20,609 | |
Policy loans | 1,567 | 1,455 | |
Other invested assets | 240 | 257 | |
Premiums, reinsurance and other receivables | 8,498 | 7,724 | |
Liabilities | |||
Policyholder account balances | 32,050 | 30,606 | |
Long-term debt | 2,728 | 2,769 | |
Other liabilities | 1,327 | 1,142 | |
Separate account liabilities | 1,259 | 1,150 | |
Estimated Fair Value | Level 1 | |||
Assets | |||
Mortgage loans | 0 | 0 | |
Policy loans | 0 | 0 | |
Other invested assets | 0 | 0 | |
Premiums, reinsurance and other receivables | 0 | 0 | |
Liabilities | |||
Policyholder account balances | 0 | 0 | |
Long-term debt | 0 | 0 | |
Other liabilities | 0 | 0 | |
Separate account liabilities | 0 | 0 | |
Estimated Fair Value | Level 2 | |||
Assets | |||
Mortgage loans | 0 | 0 | |
Policy loans | 642 | 518 | |
Other invested assets | 238 | 245 | |
Premiums, reinsurance and other receivables | 118 | 88 | |
Liabilities | |||
Policyholder account balances | 0 | 0 | |
Long-term debt | 2,728 | 2,769 | |
Other liabilities | 660 | 463 | |
Separate account liabilities | 1,259 | 1,150 | |
Estimated Fair Value | Level 3 | |||
Assets | |||
Mortgage loans | 20,592 | 20,609 | |
Policy loans | 925 | 937 | |
Other invested assets | 2 | 12 | |
Premiums, reinsurance and other receivables | 8,380 | 7,636 | |
Liabilities | |||
Policyholder account balances | 32,050 | 30,606 | |
Long-term debt | 0 | 0 | |
Other liabilities | 667 | 679 | |
Separate account liabilities | $ 0 | $ 0 |
Equity (Preferred Stock) (Detai
Equity (Preferred Stock) (Details) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 70,100 | 70,100 |
Preferred stock, shares outstanding | 70,100 | 70,100 |
6.600% Non-Cumulative Preferred Stock, Series A | ||
Class of Stock [Line Items] | ||
Preferred stock, annual dividend rate | 6.60% | 6.60% |
Preferred stock, shares authorized | 17,000 | 17,000 |
Preferred stock, shares issued | 17,000 | 17,000 |
Preferred stock, shares outstanding | 17,000 | 17,000 |
6.750% Non-Cumulative Preferred Stock, Series B | ||
Class of Stock [Line Items] | ||
Preferred stock, annual dividend rate | 6.75% | 6.75% |
Preferred stock, shares authorized | 16,100 | 16,100 |
Preferred stock, shares issued | 16,100 | 16,100 |
Preferred stock, shares outstanding | 16,100 | 16,100 |
5.375% Non-Cumulative Preferred Stock, Series C | ||
Class of Stock [Line Items] | ||
Preferred stock, annual dividend rate | 5.375% | 5.375% |
Preferred stock, shares authorized | 23,000 | 23,000 |
Preferred stock, shares issued | 23,000 | 23,000 |
Preferred stock, shares outstanding | 23,000 | 23,000 |
4.625% Non-Cumulative Preferred Stock, Series D | ||
Class of Stock [Line Items] | ||
Preferred stock, annual dividend rate | 4.625% | 4.625% |
Preferred stock, shares authorized | 14,000 | 14,000 |
Preferred stock, shares issued | 14,000 | 14,000 |
Preferred stock, shares outstanding | 14,000 | 14,000 |
Not designated | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized | 99,929,900 | 99,929,900 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Equity (Preferred Stock Dividen
Equity (Preferred Stock Dividends) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Class of Stock [Line Items] | ||||
Preferred stock, aggregate dividends declared | $ 25 | $ 25 | $ 51 | $ 51 |
6.600% Non-Cumulative Preferred Stock, Series A | ||||
Class of Stock [Line Items] | ||||
Preferred stock, dividends declared per share | $ 412.50 | $ 412.50 | $ 825 | $ 825 |
Preferred stock, aggregate dividends declared | $ 7 | $ 7 | $ 14 | $ 14 |
6.750% Non-Cumulative Preferred Stock, Series B | ||||
Class of Stock [Line Items] | ||||
Preferred stock, dividends declared per share | $ 421.88 | $ 421.88 | $ 843.76 | $ 843.76 |
Preferred stock, aggregate dividends declared | $ 7 | $ 7 | $ 14 | $ 14 |
5.375% Non-Cumulative Preferred Stock, Series C | ||||
Class of Stock [Line Items] | ||||
Preferred stock, dividends declared per share | $ 335.94 | $ 335.94 | $ 671.88 | $ 671.88 |
Preferred stock, aggregate dividends declared | $ 7 | $ 7 | $ 15 | $ 15 |
4.625% Non-Cumulative Preferred Stock, Series D | ||||
Class of Stock [Line Items] | ||||
Preferred stock, dividends declared per share | $ 289.06 | $ 289.06 | $ 578.12 | $ 578.12 |
Preferred stock, aggregate dividends declared | $ 4 | $ 4 | $ 8 | $ 8 |
Equity (Components of Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | $ (5,413) | $ (5,288) | $ (5,246) | $ (6,106) |
OCI before reclassifications | (90) | (809) | (336) | 163 |
Deferred income tax benefit (expense) (3) | 19 | 170 | 70 | (34) |
AOCI before reclassifications, net of income tax | (5,484) | (5,927) | (5,512) | (5,977) |
Amounts reclassified from AOCI | 84 | 57 | 118 | 121 |
Deferred income tax benefit (expense) (3) | (19) | (11) | (25) | (25) |
Amounts reclassified from AOCI, net of income tax | 65 | 46 | 93 | 96 |
Balance, end of period | (5,419) | (5,881) | (5,419) | (5,881) |
Unrealized Investment Gains (Losses), Net of Related Offsets (1) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | (4,937) | (5,028) | (4,317) | (6,194) |
OCI before reclassifications | (475) | (895) | (1,295) | 519 |
Deferred income tax benefit (expense) (3) | 100 | 187 | 271 | (109) |
AOCI before reclassifications, net of income tax | (5,312) | (5,736) | (5,341) | (5,784) |
Amounts reclassified from AOCI | 85 | 59 | 121 | 120 |
Deferred income tax benefit (expense) (3) | (18) | (12) | (25) | (25) |
Amounts reclassified from AOCI, net of income tax | 67 | 47 | 96 | 95 |
Balance, end of period | (5,245) | (5,689) | (5,245) | (5,689) |
Unrealized Gains (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 317 | 472 | 277 | 504 |
OCI before reclassifications | 44 | (50) | 97 | (90) |
Deferred income tax benefit (expense) (3) | (9) | 11 | (20) | 19 |
AOCI before reclassifications, net of income tax | 352 | 433 | 354 | 433 |
Amounts reclassified from AOCI | (2) | (4) | (5) | (4) |
Deferred income tax benefit (expense) (3) | 0 | 1 | 1 | 1 |
Amounts reclassified from AOCI, net of income tax | (2) | (3) | (4) | (3) |
Balance, end of period | 350 | 430 | 350 | 430 |
Changes in Nonperformance Risk on Market Risk Benefits | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | (1,711) | (1,383) | (1,881) | (1,378) |
OCI before reclassifications | 110 | (116) | 325 | (123) |
Deferred income tax benefit (expense) (3) | (23) | 24 | (68) | 26 |
AOCI before reclassifications, net of income tax | (1,624) | (1,475) | (1,624) | (1,475) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Deferred income tax benefit (expense) (3) | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 | 0 | 0 |
Balance, end of period | (1,624) | (1,475) | (1,624) | (1,475) |
Changes in Discount Rates on the Liability for Future Policy Benefits | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 969 | 706 | 720 | 1,020 |
OCI before reclassifications | 233 | 251 | 548 | (146) |
Deferred income tax benefit (expense) (3) | (49) | (52) | (115) | 31 |
AOCI before reclassifications, net of income tax | 1,153 | 905 | 1,153 | 905 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Deferred income tax benefit (expense) (3) | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 | 0 | 0 |
Balance, end of period | 1,153 | 905 | 1,153 | 905 |
Other (2) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | (51) | (55) | (45) | (58) |
OCI before reclassifications | (2) | 1 | (11) | 3 |
Deferred income tax benefit (expense) (3) | 0 | 0 | 2 | (1) |
AOCI before reclassifications, net of income tax | (53) | (54) | (54) | (56) |
Amounts reclassified from AOCI | 1 | 2 | 2 | 5 |
Deferred income tax benefit (expense) (3) | (1) | 0 | (1) | (1) |
Amounts reclassified from AOCI, net of income tax | 0 | 2 | 1 | 4 |
Balance, end of period | $ (53) | $ (52) | $ (53) | $ (52) |
Equity (Reclassifications Out o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net investment gains (losses) | $ (120) | $ (64) | $ (162) | $ (160) |
Net derivative gains (losses) | (662) | (1,811) | (2,583) | (2,386) |
Net investment income | 1,307 | 1,196 | 2,561 | 2,255 |
Pre-tax adjusted earnings (loss) | 14 | (237) | (600) | (890) |
Income tax (expense) benefit | 20 | 62 | 143 | 218 |
Net income (loss) | 9 | (200) | (510) | (725) |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income (loss) | (65) | (46) | (93) | (96) |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized investment gains (losses): | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net investment gains (losses) | (78) | (46) | (112) | (114) |
Net derivative gains (losses) | (7) | (13) | (9) | (6) |
Pre-tax adjusted earnings (loss) | (85) | (59) | (121) | (120) |
Income tax (expense) benefit | 18 | 12 | 25 | 25 |
Net income (loss) | (67) | (47) | (96) | (95) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pre-tax adjusted earnings (loss) | 2 | 4 | 5 | 4 |
Income tax (expense) benefit | 0 | (1) | (1) | (1) |
Net income (loss) | 2 | 3 | 4 | 3 |
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 | (2) | 3 | (2) |
Net investment income | 1 | 1 | 1 | 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) | 1 | 5 | 1 | 4 |
Reclassification out of Accumulated Other Comprehensive Income | Defined benefit plans adjustment: | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pre-tax adjusted earnings (loss) | (1) | (2) | (2) | (5) |
Income tax (expense) benefit | 1 | 0 | 1 | 1 |
Amortization of net actuarial gains (losses) | (1) | (2) | (2) | (5) |
Amortization of defined benefit plans, net of income tax | $ 0 | $ (2) | $ (1) | $ (4) |
Equity (Common Stock Repurchase
Equity (Common Stock Repurchase Program - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Class of Stock [Line Items] | ||||||
Stock repurchase program, aggregate amount repurchased | $ 64 | $ 62 | $ 64 | $ 62 | ||
Authorization Under 10b5-1 Plan | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program, shares repurchased | 2,634,041 | 2,684,792 | ||||
Stock repurchase program, aggregate amount repurchased | $ 126 | $ 126 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 667 | $ 667 |
Other Revenues and Other Expe_3
Other Revenues and Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | ||||
Compensation | $ 101 | $ 106 | $ 212 | $ 204 |
Contracted services and other labor costs | 70 | 79 | 133 | 148 |
Transition services agreements | 5 | 8 | 12 | 19 |
Premium and other taxes, licenses and fees | 13 | 20 | 24 | 34 |
Separate account fees | 91 | 92 | 183 | 184 |
Volume related costs, excluding compensation, net of DAC capitalization | 138 | 143 | 285 | 280 |
Interest expense on debt | 38 | 38 | 76 | 76 |
Other | 12 | 16 | 50 | 35 |
Total other expenses | $ 468 | $ 502 | $ 975 | $ 980 |
Other Revenues and Other Expe_4
Other Revenues and Other Expenses (Other Revenues - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Distribution service | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 69 | $ 66 | $ 136 | $ 133 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | $ 9 | $ (200) | $ (510) | $ (725) |
Weighted average common shares outstanding - basic | 61,956,829 | 66,722,046 | 62,496,801 | 67,294,437 |
Dilutive effect of share-based awards | 298,501 | 0 | 0 | 0 |
Weighted average common shares outstanding - diluted | 62,255,330 | 66,722,046 | 62,496,801 | 67,294,437 |
Earnings per common share - basic | $ 0.12 | $ (3.01) | $ (8.17) | $ (10.77) |
Earnings per common share - diluted | $ 0.12 | $ (3.01) | $ (8.17) | $ (10.77) |
Antidilutive stock options excluded from the computation of earnings per common share | 187,371 |
Contingencies, Commitments an_2
Contingencies, Commitments and Guarantees (Contingencies, Commitments and Guarantees - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Cumulative maximum indemnities and guarantees contractual limitation | $ 87 | |
Liabilities for indemnities, guarantees and commitments | 1 | $ 1 |
Premium Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 187 | |
Universal Life Insurance | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Premium Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 167 | |
Other Expense | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Premium Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 20 | |
Minimum | Non-litigation loss | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loss contingency, range of possible loss, portion not accrued | 0 | |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loss contingency, range of possible loss, portion not accrued | 10 | |
Maximum | Non-litigation loss | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loss contingency, range of possible loss, portion not accrued | 75 | |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value disclosure, off-balance sheet risks, face amount, liability | 307 | 377 |
Commitments to Fund Partnership Investments and Private Corporate Bond Investments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value disclosure, off-balance sheet risks, face amount, liability | $ 1,400 | $ 1,400 |