Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Sep. 16, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-40274 | |
Entity Registrant Name | Jackson Financial Inc. | |
Entity Central Index Key | 0001822993 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-0486152 | |
Entity Address, Address Line One | 1 Corporate Way | |
Entity Address, City or Town | Lansing | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48951 | |
City Area Code | 517 | |
Local Phone Number | 381-5500 | |
Title of 12(b) Security | Class A Common Stock, Par Value $0.01 Per Share | |
Trading Symbol | JXN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 93,099,859 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,364,484 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Investments: | ||
Debt Securities, available for sale, net of allowance for credit losses of $6.8 and $13.6 at June 30, 2021 and December 31, 2020, respectively (amortized cost: 2021 $49,453.2; 2020 $54,141.0) | $ 52,472.6 | $ 59,075 |
Debt Securities, at fair value under fair value option | 1,433.5 | 1,276.7 |
Debt Securities, trading, at fair value | 114.7 | 105.7 |
Equity securities, at fair value | 239.3 | 193.1 |
Mortgage loans, net of allowance for credit losses of $135.3 and $179.2 at June 30, 2021 and December 31, 2020, respectively | 11,649.1 | 10,727.5 |
Policy loans (including $3,537.8 and $3,454.2 at fair value under the fair value option at June 30, 2021 and December 31, 2020, respectively) | 4,581.1 | 4,523.5 |
Freestanding derivative instruments | 1,482.9 | 2,219.8 |
Other invested assets | 2,763.1 | 2,366.7 |
Total investments | 74,736.3 | 80,488 |
Cash and cash equivalents | 1,534.6 | 2,018.7 |
Accrued investment income | 519.2 | 557.9 |
Deferred acquisition costs | 13,813.3 | 13,897 |
Reinsurance recoverable, net of allowance for credit losses of $12.5 and $12.6 at June 30, 2021 and December 31, 2020, respectively | 34,246.7 | 35,269.5 |
Deferred income taxes, net | 892.5 | 1,057.8 |
Other assets | 1,108.7 | 1,103.7 |
Separate account assets | 239,806.1 | 219,062.9 |
Total assets | 366,657.4 | 353,455.5 |
Liabilities | ||
Reserves for future policy benefits and claims payable | 17,561.1 | 21,490.1 |
Other contract holder funds | 60,897.8 | 64,538.4 |
Funds withheld payable under reinsurance treaties (including $3,708.6 and $3,626.5 at fair value under the fair value option at June 30, 2021 and December 31, 2020, respectively) | 30,321.8 | 31,971.5 |
Debt | 317.7 | 322 |
Securities lending payable | 23.5 | 13.3 |
Freestanding derivative instruments | 55.2 | 56.4 |
Other liabilities | 6,684.6 | 6,078.7 |
Separate account liabilities | 239,806.1 | 219,062.9 |
Total liabilities | 355,667.8 | 343,533.3 |
Equity | ||
Common stock, (i) Class A common stock 900,000,000 shares authorized, $0.01 par value per share and 93,099,859 shares issued and outstanding at both June 30, 2021 and December 31, 2020, respectively and (ii) Class B common stock 100,000,000 shares authorized, $0.01 par value per share and 1,364,484 shares issued and outstanding at both June 30, 2021 and December 31, 2020, respectively (See Note 18) | 0.9 | 0.9 |
Additional paid-in capital | 5,926.9 | 5,926.9 |
Shares held in trust | (4.3) | (4.3) |
Equity compensation reserve | 8.5 | 7.7 |
Accumulated other comprehensive income, net of tax expense of $370.0 in 2021 and $765.9 in 2020 | 2,390.2 | 3,820.6 |
Retained earnings | 2,068.3 | (323.2) |
Total stockholders' equity | 10,390.5 | 9,428.6 |
Noncontrolling interests | 599.1 | 493.6 |
Total equity | 10,989.6 | 9,922.2 |
Total liabilities and equity | $ 366,657.4 | $ 353,455.5 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available for sale, Allowance for credit losses | $ 6.8 | $ 13.6 |
Debt Securities, Available for sale, Amortized cost | 49,453.2 | 54,141 |
Mortgage loans, Allowance for credit losses | 135.3 | 179.2 |
Fair value option, Loans held as assets, Insurance policy loans | 3,537.8 | 3,454.2 |
Reinsurance recoverable, Allowance for credit losses | 12.5 | 12.6 |
Fair value option, Liabilities, Reinsurance payable | 3,708.6 | 3,626.5 |
AOCI tax, Attributable to parent | $ 370 | $ 765.9 |
Common Class A [Member] | ||
Common stock, Shares authorized | 900,000,000 | 900,000,000 |
Common stock, Par or stated value per share | $ 0.01 | $ 0.01 |
Common stock, Shares issued | 93,099,859 | 93,099,859 |
Common stock, Shares outstanding | 93,099,859 | 93,099,859 |
Common Class B [Member] | ||
Common stock, Shares authorized | 100,000,000 | 100,000,000 |
Common stock, Par or stated value per share | $ 0.01 | $ 0.01 |
Common stock, Shares issued | 1,364,484 | 1,364,484 |
Common stock, Shares outstanding | 1,364,484 | 1,364,484 |
Condensed Consolidated Income S
Condensed Consolidated Income Statements - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||||
Fee income | $ 1,895.6 | $ 1,563.2 | $ 3,711.6 | $ 3,181.4 |
Premium | 30.7 | 20.9 | 65.2 | 87.5 |
Net investment income | 795.9 | 436.4 | 1,723.6 | 1,224.2 |
Net gains (losses) on derivatives and investments | (2,520.7) | (4,371.3) | 184.9 | (2,012.9) |
Other income | 30.4 | 17.9 | 53.6 | 14.1 |
Total revenues | 231.9 | (2,332.9) | 5,738.9 | 2,494.3 |
Benefits and Expenses | ||||
Death, other policy benefits and change in policy reserves, net of deferrals | 210.3 | (140.9) | 493 | 847.2 |
Interest credited on other contract holder funds, net of deferrals | 217.5 | 342.9 | 440 | 749 |
Interest expense | 6.6 | 31.4 | 12.7 | 73.2 |
Operating costs and other expenses, net of deferrals | 599.6 | (729.2) | 1,197.9 | (206.1) |
Cost of reinsurance | 2,513.9 | 2,513.9 | ||
Amortization of deferred acquisition and sales inducement costs | (263.7) | (731) | 548.3 | 313 |
Total benefits and expenses | 770.3 | 1,287.1 | 2,691.9 | 4,290.2 |
Pretax income (loss) before noncontrolling interests | (538.4) | (3,620) | 3,047 | (1,795.9) |
Income tax expense (benefit) | (54.5) | (457) | 531.1 | (423.8) |
Net income (loss) | (483.9) | (3,163) | 2,515.9 | (1,372.1) |
Less: Net income (loss) attributable to noncontrolling interests | 56.1 | (53.7) | 124.4 | (59.5) |
Net income (loss) attributable to Jackson Financial Inc. | $ (540) | $ (3,109.3) | $ 2,391.5 | $ (1,312.6) |
Earnings per share | ||||
Basic | $ (5.72) | $ (69.98) | $ 25.32 | $ (31.75) |
Diluted | $ (5.72) | $ (69.98) | $ 25.32 | $ (31.75) |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net income (loss) | $ (483.9) | $ (3,163) | $ 2,515.9 | $ (1,372.1) |
Other comprehensive income (loss), net of tax: | ||||
Change in net unrealized gains (losses) on securities not impaired (net of tax expense (benefit) | 1,062.9 | 1,987.5 | (1,240.8) | 1,592.8 |
Change in unrealized gains (losses) on securities for which an allowance for credit losses has been recorded (net of tax expense (benefit) | (0.1) | 0.7 | 2.2 | 3.9 |
Reclassification adjustment for gains (losses) included in net income (loss) (net of tax expense (benefit) | (115.1) | (521.8) | (191.8) | (564) |
Total other comprehensive income (loss) | 947.7 | 1,466.4 | (1,430.4) | 1,032.7 |
Comprehensive income (loss) | 463.8 | (1,696.6) | 1,085.5 | (339.4) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 56.1 | (53.7) | 124.4 | (59.5) |
Comprehensive income (loss) attributable to Jackson Financial Inc. | $ 407.7 | $ (1,642.9) | $ 961.1 | $ (279.9) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, Tax, Including Portion Attributable to Noncontrolling Interest, Held-to-maturity Securities | $ 292.4 | $ 528.3 | $ (343.7) | $ 423.4 |
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, Tax | 0 | 0.2 | 0.6 | 1 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | $ (32.4) | $ (138.7) | $ (52.8) | $ (149.9) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Change in accounting principle [Member] | Common Stock | Additional Paid-In Capital | Shares Held In Trust | Equity Compensation Reserve | Accumulated Other Comprehensive Income | Retained Earnings | Retained EarningsChange in accounting principle [Member] | Total Stockholders' Equity | Total Stockholders' EquityChange in accounting principle [Member] | Non- Controlling Interests |
Beginning balance at Dec. 31, 2019 | $ 7,320.6 | $ (48) | $ 0.4 | $ 3,077.4 | $ (4.3) | $ 0.5 | $ 2,396.7 | $ 1,365.8 | $ (48) | $ 6,836.5 | $ (48) | $ 484.1 |
Net income (loss) | (1,372.1) | 0 | (1,312.6) | (1,312.6) | (59.5) | |||||||
Change in unrealized investment gains and losses, net of tax | 1,032.7 | 1,032.7 | 1,032.7 | |||||||||
Change in equity of noncontrolling interests | 13.7 | 13.7 | ||||||||||
Common stock issuance—debt restructure | 2,350 | 0.4 | 2,349.6 | 0 | 2,350 | |||||||
Ending balance at Jun. 30, 2020 | 9,296.9 | 0.8 | 5,427 | (4.3) | 0.5 | 3,429.4 | 5.2 | 8,858.6 | 438.3 | |||
Beginning balance at Mar. 31, 2020 | 8,646.8 | $ (2.5) | 0.4 | 3,077.4 | (4.3) | 0.5 | 1,963 | 3,117 | $ (2.5) | 8,154 | $ (2.5) | 492.8 |
Net income (loss) | (3,163) | (3,109.3) | (3,109.3) | (53.7) | ||||||||
Change in unrealized investment gains and losses, net of tax | 1,466.4 | 1,466.4 | 1,466.4 | |||||||||
Change in equity of noncontrolling interests | (0.8) | (0.8) | ||||||||||
Common stock issuance—debt restructure | 2,350 | 0.4 | 2,349.6 | 2,350 | ||||||||
Ending balance at Jun. 30, 2020 | 9,296.9 | 0.8 | 5,427 | (4.3) | 0.5 | 3,429.4 | 5.2 | 8,858.6 | 438.3 | |||
Beginning balance at Dec. 31, 2020 | 9,922.2 | 0.9 | 5,926.9 | (4.3) | 7.7 | 3,820.6 | (323.2) | 9,428.6 | 493.6 | |||
Net income (loss) | 2,515.9 | 2,391.5 | 2,391.5 | 124.4 | ||||||||
Change in unrealized investment gains and losses, net of tax | (1,430.4) | (1,430.4) | (1,430.4) | |||||||||
Change in equity of noncontrolling interests | (18.9) | (18.9) | ||||||||||
Reserve for equity compensation plans | 0.8 | 0.8 | 0.8 | |||||||||
Ending balance at Jun. 30, 2021 | 10,989.6 | 0.9 | 5,926.9 | (4.3) | 8.5 | 2,390.2 | 2,068.3 | 10,390.5 | 599.1 | |||
Beginning balance at Mar. 31, 2021 | 10,568.5 | 0.9 | 5,926.9 | (4.3) | 9.6 | 1,442.5 | 2,608.3 | 9,983.9 | 584.6 | |||
Net income (loss) | (483.9) | (540) | (540) | 56.1 | ||||||||
Change in unrealized investment gains and losses, net of tax | 947.7 | 947.7 | 947.7 | |||||||||
Change in equity of noncontrolling interests | (41.6) | (41.6) | ||||||||||
Reserve for equity compensation plans | (1.1) | (1.1) | (1.1) | |||||||||
Ending balance at Jun. 30, 2021 | $ 10,989.6 | $ 0.9 | $ 5,926.9 | $ (4.3) | $ 8.5 | $ 2,390.2 | $ 2,068.3 | $ 10,390.5 | $ 599.1 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,515.9 | $ (1,372.1) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net realized losses (gains) on investments | (167.5) | (161.2) |
Net losses (gains) on derivatives | 112.9 | 3,342.8 |
Net losses (gains) on funds withheld reinsurance | (130.3) | (1,168.7) |
Interest credited on other contract holder funds, gross | 440 | 751.6 |
Mortality, expense and surrender charges | (280) | (308.7) |
Amortization of discount and premium on investments | 27.1 | 16.8 |
Deferred income tax expense (benefit) | 562.5 | (448.6) |
Share-based compensation | ||
Cash received (paid to) from reinsurance transaction | (31.7) | |
Change in: | ||
Accrued investment income | 38.8 | 17.8 |
Deferred acquisition costs and sales inducements | 148.4 | (269.4) |
Other assets and liabilities, net | (1,120.4) | 1,033 |
Net cash provided by (used in) operating activities | 2,147.4 | 1,401.6 |
Sales, maturities and repayments of: | ||
Debt securities | 10,325.4 | 17,412.7 |
Equity securities | 24.5 | 24.8 |
Mortgage loans | 681.7 | 792.5 |
Purchases of: | ||
Debt securities | (5,501.6) | (17,020) |
Equity securities | (51.4) | (16.1) |
Mortgage loans | (1,556.5) | (689.8) |
Settlements related to derivatives and collateral on investments | (2,947.7) | 2,302.2 |
Other investing activities | (394.4) | 2,430.3 |
Net cash provided by (used in) investing activities | 580 | 5,236.6 |
Policyholders' account balances: | ||
Deposits | 9,758.5 | 10,008.8 |
Withdrawals | (15,184.1) | (11,224.4) |
Net transfers to separate accounts | 1,191.3 | 1,790.5 |
Net proceeds from (payments on) borrowings | 1,157.1 | |
Net proceeds from (payments on) Federal Home Loan Bank notes | (130) | (300.1) |
Net proceeds from (payments on) borrowings | (4.3) | (36.5) |
Net cash provided by (used in) financing activities | (3,211.5) | 238.3 |
Net increase (decrease) in cash and cash equivalents | (484.1) | 6,876.5 |
Cash and cash equivalents, beginning of period | 2,018.7 | 1,934.5 |
Total cash and cash equivalents, end of period | 1,534.6 | 8,811 |
Supplemental cash flow information | ||
Income taxes paid | 34.1 | 38.9 |
Interest paid | 10 | 47.7 |
Non-cash investing activities | ||
Debt securities acquired from exchanges, payments-in-kind, and similar transactions | 116.6 | 193.5 |
Other invested assets acquired from stock splits and stock distributions | $ 98.8 | $ 4.1 |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Business and Basis of Presentation | 1. Business and Basis of Presentation Jackson Financial Inc. (“Jackson Financial”) along with its subsidiaries (collectively, the “Company,” which also may be referred to as “we,” “our” or “us”), is a financial services company focused on helping Americans grow and protect their retirement savings and income to enable them to pursue financial freedom for life in the United States (“U.S.”). Jackson Financial, domiciled in the U.S., was, as of June 30, 2021, a majority-owned subsidiary of Prudential plc (“Prudential”), London, England and was the holding company for Prudential’s U.S. operations. As described below under “Other,” the Company’s demerger from Prudential was completed on September 13, 2021 (“Demerger”), and the Company is no longer a majority-owned subsidiary of Prudential. Jackson Financial’s primary life insurance subsidiary, Jackson National Life Insurance Company and its insurance subsidiaries (“Jackson”), is licensed to sell group and individual annuity products (including immediate, index linked, deferred fixed, and variable annuities), and individual life insurance products, including variable universal life, in all 50 states and the District of Columbia. Jackson also participates in the institutional products market through the issuance of guaranteed investment contracts (“GICs”), funding agreements and medium term note funding agreements. In addition to Jackson, Jackson Financial’s primary operating subsidiaries are as follows: • PPM Holdings, Inc. (“PPM”), is the Company’s investment management operation that manages the life insurance companies’ general account investment funds. PPM also provides investment services to other affiliated and unaffiliated institutional clients. • Brooke Life Insurance Company (“Brooke Life”), Jackson’s direct parent, is a life insurance company licensed to sell life insurance and annuity products in the state of Michigan. Other subsidiaries, which are wholly owned by Jackson, consist of the following: • Life insurers: Jackson National Life Insurance Company of New York (“JNY”), Squire Reassurance Company LLC (“Squire Re”), Squire Reassurance Company II, Inc. (“Squire Re II”), VFL International Life Company SPC, LTD and Jackson National Life (Bermuda) LTD; • Broker-dealer, investment management and investment advisor subsidiaries: Jackson National Life Distributors, LLC; Jackson National Asset Management, LLC (“JNAM”); • PGDS (US One) LLC (“PGDS”), which provides certain services to the Company and certain affiliates; and • Other insignificant wholly owned subsidiaries. The condensed consolidated financial statements also include other insignificant partnerships, limited liability companies (“LLCs”) and variable interest entities (“VIEs”) in which the Company is deemed the primary beneficiary. Other On August 6, 2021, the registration statement on Form 10 of the Company’s Class A common stock, par value per share, filed with the U.S. Securities and Exchange Commission (the “SEC”), became effective under the Securities Exchange Act of 1934, as amended. We refer to that effective Form 10 registration as the “Form 10.” The Demerger transaction described in the Form 10 was consummated on September 13, 2021. Post-demerger, Prudential retained a percent remaining interest in the Company. On September 9, 2021, the Company effected a 1 04,9 60.3836276-for-1 paid-in split. On June in-force In addition, we entered into an investment agreement with Athene Life Re Ltd., pursuant to which Athene would invest $500.0 million of capital into the Company in return for a 9.9% voting interest corresponding to a 11.1 % economic interest in the Company. The transaction was completed on July 17, 2020. In August 2020, the Company made a $500.0 We continue to closely monitor developments related to the COVID-19 COVID-19 COVID-19 Basis of Presentation The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but is not required for interim reporting purposes, has been condensed or omitted. The information contained in the Notes to Consolidated Financial Statements for the year ended December 31, 2020 in the Company’s Form 10, should be read in connection with the reading of these interim unaudited condensed consolidated financial statements. Certain accounting policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in the Company’s Notes to Consolidated Financial Statements for the year ended December 31, 2020 in the Company’s Form 10. In the opinion of management, these financial statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three and six months ended June 30, 2021, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021. All material inter-company accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions about future events that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes. Significant estimates or assumptions, as further discussed in the notes, include: 1) Valuation of investments and derivative instruments, including fair values of securities deemed to be in an illiquid market and the determination of when an impairment is necessary; 2) Assessments as to whether certain entities are variable interest entities, the existence of reconsideration events and the determination of which party, if any, should consolidate the entity; 3) Assumptions impacting estimated future gross profits, including policyholder behavior, mortality rates, expenses, projected hedging costs, investment returns and policy crediting rates, used in the calculation of amortization of deferred acquisition costs and deferred sales inducements; 4) Assumptions used in calculating policy reserves and liabilities, including policyholder behavior, mortality rates, expenses, investment returns and policy crediting rates; 5) Assumptions as to future earnings levels being sufficient to realize deferred tax benefits; 6) Estimates related to expectations of credit losses on certain financial assets and off balance sheet exposures; 7) Assumptions and estimates associated with the Company’s tax positions, including an estimate of the dividends received deduction, which impact the amount of recognized tax benefits recorded by the Company; 8) Value of guaranteed benefits; and, 9) Value of business acquired, its recoverability and amortization. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors deemed appropriate. As facts and circumstances dictate, these estimates and assumptions may be adjusted. Since future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates, including those resulting from continuing changes in the economic environment, will be reflected in the consolidated financial statements in the periods the estimates are changed. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | 2. New Accounting Standards Changes in Accounting Principles – Adopted in Current Year In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, In October 2020, the FASB issued ASU No. 2020-08, 310-20, 2020-08, On December 18, 2019, FASB issued ASU No. 2019-12, step-up 2019-12, Changes in Accounting Principles – Issued but Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, 2018-12 No. 2018-12 the initial balance sheet impact upon adoption, the Company also expects a change in the pattern of future profit emergence. Subsequent Events The Company has evaluated events through September 20, 2021, which is the date the condensed consolidated financial statements were available to be issued. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 3. Investments Investments are comprised primarily of fixed-income securities and loans, primarily publicly-traded corporate and government bonds, asset-backed securities and mortgage loans. Asset-backed securities include mortgage-backed and other structured securities. The Company generates the majority of its general account deposits from interest-sensitive individual annuity contracts, life insurance products and guaranteed investment contracts on which it has committed to pay a declared rate of interest. The Company’s strategy of investing in fixed-income securities and loans aims to ensure matching of the asset yield with the amounts credited to the interest-sensitive liabilities and to earn a stable return on its investments. Debt Securities The following table sets forth the composition of the fair value of debt securities at June 30, 2021, classified by rating categories as assigned by nationally recognized statistical rating organizations (“NRSRO”), the National Association of Insurance Commissioners (“NAIC”), or if not rated by such organizations, the Company’s consolidated investment advisor, PPM. The Company uses the second lowest rating by an NRSRO when NRSRO ratings are not equivalent and, for purposes of the table, if not otherwise rated by a NRSRO, the NAIC rating of a security is converted to an equivalent NRSRO-style rating. At June 30, 2021, the carrying value of investments rated by the Company’s consolidated investment advisor totaled $128.2 million. Investment Rating Percent of Total AAA 16.8 % AA 9.0 % A 29.1 % BBB 39.2 % Investment grade 94.1 % BB 3.3 % B and below 2.6 % Below investment grade 5.9 % Total debt securities 100.0 % At June 30, 2021, based on ratings by NRSROs, of the total carrying value of debt securities in an unrealized loss position, 75% were investment grade, 5% were below investment grade and 20% were not rated. Unrealized losses on debt securities that were below investment grade or not rated were approximately 11% of the aggregate gross unrealized losses on available for sale debt securities. Corporate securities in an unrealized loss position were diversified across industries. As of June 30, 2021, the industries accounting for the largest percentage of unrealized losses included financial services (18% of corporate gross unrealized losses) and consumer goods (16%). The largest unrealized loss related to a single corporate obligor was $16.8 million at June 30, 2021. At June 30, 2021 and December 31, 2020, the amortized cost, gross unrealized gains and losses, fair value, and allowance for credit loss (“ACL”) of debt securities, including trading securities and securities carried at fair value under the fair value option, were as follows (in millions): June 30, 2021 Amortized (1) Allowance Credit Loss Gross Gross Fair Value U.S. government securities $ 4,783.9 $ — $ 88.0 $ 403.4 $ 4,468.5 Other government securities 1,510.5 — 152.3 13.8 1,649.0 Public utilities 5,892.8 — 770.0 16.3 6,646.5 Corporate securities 29,717.1 — 2,307.3 179.9 31,844.5 Residential mortgage-backed 770.5 0.8 66.6 1.7 834.6 Commercial mortgage-backed 2,702.2 — 171.0 2.2 2,871.0 Other asset-backed securities 5,624.4 6.0 106.4 18.1 5,706.7 Total debt securities $ 51,001.4 $ 6.8 $ 3,661.6 $ 635.4 $ 54,020.8 December 31, 2020 Amortized (1) Allowance Credit Loss Gross Gross Fair Value U.S. government securities $ 5,078.9 $ — $ 162.0 $ 114.9 $ 5,126.0 Other government securities 1,497.1 — 200.6 0.8 1,696.9 Public utilities 6,270.4 — 1,029.2 1.9 7,297.7 Corporate securities 33,180.3 — 3,301.6 41.9 36,440.0 Residential mortgage-backed 911.7 — 74.4 1.2 984.9 Commercial mortgage-backed 3,077.6 — 248.5 3.5 3,322.6 Other asset-backed securities 5,507.4 13.6 100.2 4.7 5,589.3 Total debt securities $ 55,523.4 $ 13.6 $ 5,116.5 $ 168.9 $ 60,457.4 (1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities. The amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value of debt securities at June 30, 2021, by contractual maturity, are shown below (in millions). Actual maturities may differ from contractual maturities where securities can be called or prepaid with or without early redemption penalties. Amortized (1) Cost Allowance Credit Loss Gross Gross Fair Value Due in 1 year or less $ 1,032.4 $ — $ 19.1 $ — $ 1,051.5 Due after 1 year through 5 years 8,414.3 — 542.2 18.4 8,938.1 Due after 5 years through 10 years 16,976.7 — 1,111.9 68.9 18,019.7 Due after 10 years through 20 years 5,810.1 — 946.3 169.9 6,586.5 Due after 20 years 9,670.8 — 698.1 356.2 10,012.7 Residential mortgage-backed 770.5 0.8 66.6 1.7 834.6 Commercial mortgage-backed 2,702.2 — 171.0 2.2 2,871.0 Other asset-backed securities 5,624.4 6.0 106.4 18.1 5,706.7 Total $ 51,001.4 $ 6.8 $ 3,661.6 $ 635.4 $ 54,020.8 (1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities. Securities with a carrying value of $115.7 million and $123.4 million at June 30, 2021 and December 31, 2020, respectively, were on deposit with regulatory authorities, as required by law in various states in which business is conducted. Residential mortgage-backed securities (“RMBS”) include certain RMBS that are collateralized by residential mortgage loans and are neither explicitly nor implicitly guaranteed by U.S. government agencies (“non-agency non-agency Alt-A, June 30, 2021 Amortized (1) Allowance Credit Loss Gross Gross Fair Prime $ 248.2 $ 0.7 $ 14.0 $ 1.0 $ 260.5 Alt-A 108.2 0.1 25.7 0.2 133.6 Subprime 49.4 — 14.9 — 64.3 Total non-agency $ 405.8 $ 0.8 $ 54.6 $ 1.2 $ 458.4 December 31, 2020 Amortized (1) Allowance Credit Loss Gross Gross Fair Prime $ 287.4 $ — $ 17.1 $ 0.7 $ 303.8 Alt-A 122.9 — 25.6 0.3 148.2 Subprime 61.0 — 13.9 0.2 74.7 Total non-agency $ 471.3 $ — $ 56.6 $ 1.2 $ 526.7 (1) Amortized cost, apart from carrying value for securities carried at fair value under the fair value option and trading securities. The Company defines its exposure to non-agency • Prime loan-backed securities are collateralized by mortgage loans made to the highest rated borrowers. • Alt-A • Subprime loan-backed securities are collateralized by mortgage loans made to borrowers that have a FICO score of 680 or lower. The following table summarizes the number of securities, fair value and the gross unrealized losses of debt securities, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position (dollars in millions): June 30, 2021 December 31, 2020 Less than 12 months Less than 12 months Gross Fair Value # of Gross Fair Value # of U.S. government securities $ 403.4 $ 3,407.2 20 $ 114.9 $ 3,944.7 7 Other government securities 13.8 231.0 25 0.8 89.4 7 Public utilities 16.3 436.8 56 1.8 146.5 8 Corporate securities 173.7 4,499.6 438 41.5 1,391.1 161 Residential mortgage-backed 1.6 137.0 78 1.2 35.4 28 Commercial mortgage-backed 2.2 162.5 15 3.2 151.9 13 Other asset-backed securities 10.4 1,150.2 157 1.4 796.4 91 Total temporarily impaired securities $ 621.4 $ 10,024.3 789 $ 164.8 $ 6,555.4 315 12 months or longer 12 months or longer Gross Fair Value # of Gross Fair Value # of U.S. government securities $ — $ — — $ — $ — — Other government securities — — — — — — Public utilities — 0.5 2 — — — Corporate securities 6.2 164.9 23 0.5 2.9 3 Residential mortgage-backed 0.1 3.0 11 — 1.8 4 Commercial mortgage-backed — 19.9 2 0.3 9.7 1 Other asset-backed securities 7.7 19.3 4 3.3 29.8 4 Total temporarily impaired securities $ 14.0 $ 207.6 42 $ 4.1 $ 44.2 12 Total Total Gross Fair Value # of Gross Fair Value # of U.S. government securities $ 403.4 $ 3,407.2 20 $ 114.9 $ 3,944.7 7 Other government securities 13.8 231.0 25 0.8 89.4 7 Public utilities 16.3 437.3 58 1.8 146.5 8 Corporate securities (1) 179.9 4,664.5 453 42.0 1,394.0 164 Residential mortgage-backed 1.7 140.0 89 1.2 37.2 32 Commercial mortgage-backed 2.2 182.4 16 3.5 161.6 14 Other asset-backed securities 18.1 1,169.5 161 4.7 826.2 95 Total temporarily impaired securities $ 635.4 $ 10,231.9 822 $ 168.9 $ 6,599.6 327 (1) Certain corporate securities contain multiple lots and fit the criteria of both aging groups. Debt securities in an unrealized loss position as of June 30, 2021 did not require an impairment recognized in earnings as the Company did not intend to sell these debt securities, as it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost basis and the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation, the Company believes it has the ability to generate adequate amounts of cash from normal operations to meet cash requirements with a reasonable margin of safety without requiring the sale of impaired securities. As of June 30, 2021, unrealized losses associated with debt securities are primarily due to widening credit spreads or rising risk free rates since purchase. The Company performed a detailed analysis of the financial performance of the underlying issues in an unrealized loss position and determined that recovery of the entire amortized cost of each impaired security is expected. In addition, mortgage-backed and asset-backed securities were assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities, and prepayment rates. The Company estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. The forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts, and other independent market data. Based upon this assessment of the expected credit losses of the security given the performance of the underlying collateral compared to subordination or other credit enhancement, the Company expects to recover the entire amortized cost of each impaired security. Evaluation of Available For Sale Debt Securities for Credit Loss For debt securities in an unrealized loss position, management first assesses whether the Company has the intent to sell, or whether it is more likely than not it will be required to sell the security before the amortized cost basis is fully recovered. If either criteria is met, the amortized cost is written down to fair value through net gains on derivatives and investments as an impairment. Debt securities in an unrealized loss position for which the Company does not have the intent to sell or is not more likely than not to sell the security before recovery to amortized cost are further evaluated to determine if the cause of the decline in fair value resulted from credit losses or other factors, which includes estimates about the operations of the issuer and future earnings potential. The credit loss evaluation may consider the extent to which the fair value is below amortized cost; changes in ratings of the security; whether a significant covenant related to the security has been breached; or an issuer has filed or indicated a possibility of filing for bankruptcy, has missed or announced it intends to miss a scheduled interest or principal payment, or has experienced a specific material adverse change that may impair its creditworthiness; judgments about an obligor’s current and projected financial position; an issuer’s current and projected ability to service and repay its debt obligations; the existence of, and realizable value of, any collateral backing the obligations; and the macro-economic and micro-economic outlooks for specific industries and issuers. In addition to the above, the credit loss review of investments in asset-backed securities includes the review of future estimated cash flows, including expected and stress case scenarios, to identify potential shortfalls in contractual payments. These estimated cash flows are developed using available performance indicators from the underlying assets including current and projected default or delinquency rates, levels of credit enhancement, current subordination levels, vintage, expected loss severity and other relevant characteristics. These estimates reflect a combination of data derived by third parties and internally developed assumptions. Where possible, this data is benchmarked against third-party sources. For mortgage-backed securities, credit losses are assessed using a cash flow model that estimates the cash flows on the underlying mortgages, using the security-specific collateral characteristics and transaction structure. The model estimates cash flows from the underlying mortgage loans and distributes those cash flows to various tranches of securities, considering the transaction structure and any subordination and credit enhancements existing in that structure. The cash flow model incorporates actual cash flows on the mortgage-backed securities through the current period and then projects the remaining cash flows using a number of assumptions, including prepayment timing, default rates and loss severity. Specifically, for prime and Alt-A These estimates reflect a combination of data derived by third parties and internally developed assumptions. Where possible, this data is benchmarked against other third-party sources. In addition, these estimates are extrapolated along a default timing curve to estimate the total lifetime pool default rate. When a credit loss is determined to exist and the present value of cash flows expected to be collected is less than the amortized cost of the security, an allowance for credit loss is recorded along with a charge to net gains (losses) on derivatives and investments, limited by the amount that the fair value is less than amortized cost. Any remaining unrealized loss after recording the allowance for credit loss is the non-credit The allowance for credit loss for specific debt securities may be increased or reversed in subsequent periods due to changes in the assessment of the present value of cash flows that are expected to be collected. Any changes to the allowance for credit loss is recorded as a provision for (or reversal of) credit loss expense in net gains (losses) on derivatives and investments. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off Accrued interest receivables are presented separate from the amortized cost basis of debt securities. Accrued interest receivables that are determined to be uncollectible are written off with a corresponding reduction to net investment income. No accrued interest was written off during the three and six months ended June 30, 2021 and 2020. The rollforward of the allowance for credit loss for available for sale securities by sector is as follows (in millions): Three Months Ended June 30, 2021 US government securities Other Public utilities Corporate Residential Commercial Other asset- Total Balance at April 1, 2021 $ — $ — $ — $ — $ 0.7 $ — $ 4.2 $ 4.9 Additions for which credit loss was not previously recorded — — — — 0.5 — — 0.5 Changes for securities with previously recorded credit loss — — — — (0.4 ) — 1.8 1.4 Additions for purchases of PCD debt securities (1) — — — — — — — — Reductions from charge-offs — — — — — — — — Reductions for securities disposed — — — — — — — — Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — — Balance at June 30, 2021 (2) $ — $ — $ — $ — $ 0.8 $ — $ 6.0 $ 6.8 Three Months Ended June 30, 2020 US government securities Other Public utilities Corporate Residential Commercial Other asset- Total Balance at April 1, 2020 $ — $ — $ — $ — $ — $ — $ — $ — Additions for which credit loss was not previously recorded — — — — 0.3 — 17.2 17.5 Changes for securities with previously recorded credit loss — — — — — — — — Additions for purchases of PCD debt securities (1) — — — — — — — — Reductions from charge-offs — — — — — — — — Reductions for securities disposed — — — — — — — — Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — — Balance at June 30, 2020 (2) $ — $ — $ — $ — $ 0.3 $ — $ 17.2 $ 17.5 Six Months Ended June 30, 2021 US government securities Other Public utilities Corporate Residential Commercial Other asset- securities Total Balance at January 1, 2021 $ — $ — $ — $ — $ — $ — $ 13.6 $ 13.6 Additions for which credit loss was not previously recorded — — — — 1.2 — — 1.2 Changes for securities with previously recorded credit loss — — — — (0.4 ) — (7.6 ) (8.0 ) Additions for purchases of PCD debt securities (1) — — — — — — — — Reductions from charge-offs — — — — — — — — Reductions for securities disposed — — — — — — — — Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — — Balance at June 30, 2021 (2) $ — $ — $ — $ — $ 0.8 $ — $ 6.0 $ 6.8 Six Months Ended June 30, 2020 US government securities Other Public utilities Corporate Residential Commercial Other asset- Total Balance at January 1, 2020 $ — $ — $ — $ — $ — $ — $ — $ — Additions for which credit loss was not previously recorded — — — — 0.3 — 17.2 17.5 Changes for securities with previously recorded credit loss — — — — — — — — Additions for purchases of PCD debt securities (1) — — — — — — — — Reductions from charge-offs — — — — — — — — Reductions for securities disposed — — — — — — — — Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — — Balance at June 30, 2020 (2) $ — $ — $ — $ — $ 0.3 $ — $ 17.2 $ 17.5 (1) R e (2) Accrued interest receivable on debt securities totaled $397.2 million and $454.9 million as of June 30, 2021 and 2020, respectively, and was excluded from the estimate of credit losses for the three and six months ended June 30, 2021 and 2020. Net Investment Income The sources of net investment income were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Debt securities $ 277.2 $ 404.6 $ 600.5 $ 921.9 Equity securities 7.0 1.7 6.6 (13.7 ) Mortgage loans 80.3 91.1 162.1 201.7 Policy loans 17.0 17.1 35.7 37.9 Limited partnerships 150.0 (168.8 ) 392.9 (139.3 ) Other investment income 4.6 6.6 8.1 17.7 Total investment income excluding funds withheld assets 536.1 352.3 1,205.9 1,026.2 Net investment income on funds withheld assets (see Note 7) 293.8 144.2 584.9 228.9 Investment expenses: Derivative trading commission (0.5 ) (1.5 ) (1.3 ) (3.1 ) Depreciation on real estate (2.0 ) (2.8 ) (4.8 ) (5.5 ) Expenses related to consolidated entities (1) (9.0 ) (11.1 ) (16.6 ) (20.3 ) Other investment expenses (2) (22.5 ) (44.7 ) (44.5 ) (2.0 ) Total investment expenses $ (34.0 ) $ (60.1 ) (67.2 ) (30.9 ) Net investment income $ 795.9 $ 436.4 $ 1,723.6 $ 1,224.2 (1) Includes management fees, administrative fees, legal fees, and other expenses related to the consolidation of certain investments. (2) Includes interest expense and market appreciation on deferred compensation; investment software expense, custodial fees, and other bank fees; institutional product issuance related expenses; and other expenses. Unrealized gains (losses) included in investment income that were recognized on equity securities held were $10.3 million and $15.4 million for the three and six months ended June 30, 2021, respectively. Investment income (expense) of $(2.4) million and $36.9 million was recognized on securities carried at fair value recorded through income for the three and six months ended June 30, 2021, respectively. Unrealized gains (losses) included in investment income that were recognized on equity securities held were $(13.7) million and $(43.6) million for the three and six months ended June 30, 2020, respectively. Investment income (expense) of $(67.0) million and $(91.2) million was recognized on securities carried at fair value recorded through income for the three and six months ended June 30, 2020, respectively. Net Gains (Losses) on Derivatives and Investments The following table summarizes net gains (losses) on derivatives and investments (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Available-for-sale Realized gains on sale $ 95.7 $ 358.3 $ 120.8 $ 420.0 Realized losses on sale (51.7 ) (57.7 ) (57.7 ) (183.7 ) Credit loss income (expense) (1.4 ) 0.4 7.2 (17.1 ) Gross impairments — (1.0 ) — (26.4 ) Credit loss income (expense) on mortgage loans (10.1 ) 14.6 48.4 (33.9 ) Other (1) (17.5 ) (48.8 ) 48.8 2.3 Net gains (losses) excluding derivatives and funds withheld assets 15.0 265.8 167.5 161.2 Net gains (losses) on derivative instruments (see Note 4) (1,768.3 ) (5,890.5 ) (112.9 ) (3,342.8 ) Net gains (losses) on funds withheld reinsurance treaties (see Note 7) (767.4 ) 1,253.4 130.3 1,168.7 Total net gains (losses) on derivatives and investments $ (2,520.7 ) $ (4,371.3 ) $ 184.9 $ (2,012.9 ) (1) Includes the foreign currency gain or loss related to foreign denominated trust instruments supporting funding agreements. Net gains (losses) on funds withheld reinsurance treaties represents income (loss) from the sale of investments held in segregated funds withheld accounts in support of reinsurance agreements for which Jackson retains legal ownership of the underlying investments. These gains (losses) are increased or decreased by changes in the embedded derivative liability related to the Athene Reinsurance Agreement and also includes (i) changes in the related funds withheld payable, as all economic performance of the investments held in the segregated accounts inure to the benefit of the reinsurers under the respective reinsurance agreements with each reinsurer, and (ii) amortization of the difference between book value and fair value of the investments as of the effective date of the reinsurance agreements with each reinsurer. The aggregate fair value of securities sold at a loss for the three and six months ended June 30, 2021 was $887.5 million and $1,184.4 million, respectively, which was approximately 94% of book value in both periods, respectively. The aggregate fair value of securities sold at a loss for the three and six months ended June 30, 2020 was $568.7 million and $7,138.7 million, respectively, which was approximately 98% of book value in both periods, respectively. Proceeds from sales of available-for-sale available-for-sale There are inherent uncertainties in assessing the fair values assigned to the Company’s investments and in determining whether a decline in fair value is other-than-temporary. The Company’s reviews of net present value and fair value involve several criteria including economic conditions, credit loss experience, other issuer-specific developments and estimated future cash flows. These assessments are based on the best available information at the time. Factors such as market liquidity, the widening of bid/ask spreads and a change in the cash flow assumptions can contribute to future price volatility. If actual experience differs negatively from the assumptions and other considerations used in the consolidated financial statements, unrealized losses currently reported in accumulated other comprehensive income may be recognized in the consolidated income statements in future periods. The Company currently has no intent to sell securities with unrealized losses considered to be temporary until they mature or recover in value and believes that it has the ability to do so. However, if the specific facts and circumstances surrounding an individual security, or the outlook for its industry sector change, the Company may sell the security prior to its maturity or recovery and realize a loss. Consolidated VIEs In 2017, the Company funded PPM Loan Holding Management Company, LLC, an affiliated investment entity facilitating the issuance of collateralized loan obligations. The Company concluded that PPM Loan Management Holding Company, LLC is a VIE and that the Company is the primary beneficiary as it has the power to direct the most significant activities affecting the performance of the fund as well as the obligation to absorb losses or the right to receive benefits that could potentially be significant to the fund. In 2020, PPM Loan Holding Management Company, LLC sold the interest in one of the four CLO issuances resulting in the reduction of consolidated assets and liabilities. The Company’s exposure to loss is limited to the capital invested and unfunded capital commitments related to PPM Loan Holding Management Company, LLC. Private Equity Funds III – VII are limited partnership structures that invest the ownership capital in portfolios of various other limited partnership structures. The Company concluded that the Private Equity Funds are VIEs and that the Company is the primary beneficiary as it has the power to direct the most significant activities affecting the performance of the funds as well as the obligation to absorb losses or the right to receive benefits that could potentially be significant to the funds. The Company’s exposure to loss is limited to the capital invested and unfunded capital commitments related to Private Equity Funds III – VII. In 2018, PPM created and began managing institutional share class mutual funds. Jackson seeds new funds, or new share classes within a fund, when deemed necessary to develop the requisite track record prior to allowing investment by external parties. Jackson may sell its interest in the fund once opened to investment by external parties. The Company concluded that these funds are VIEs and that the Company is the primary beneficiary as it has both the power to direct the most significant activities of the VIE as well as the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Asset and liability information for the consolidated VIEs included on the condensed consolidated balance sheets are as follows (in millions): June 30, 2021 December 31, 2020 Assets Debt securities, available for sale $ 1,267.6 $ 1,108.9 Debt securities, trading 114.7 105.7 Equity securities 121.9 125.8 Limited partnerships 1,126.2 958.7 Cash 57.5 57.1 Other assets 14.8 10.2 Total assets $ 2,702.7 $ 2,366.4 Liabilities Debt owed to non-controlling $ 1,013.6 $ 943.7 Other liabilities 276.0 200.5 Total other liabilities 1,289.6 1,144.2 Securities lending payable — 1.0 Total liabilities $ 1,289.6 $ 1,145.2 Equity Noncontrolling equity $ 599.1 $ 493.6 Unconsolidated VIEs The Company invests in certain LPs and LLCs that they have concluded are VIEs. Based on the analysis of these entities, the Company is not the primary beneficiary of the VIEs as it does not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. In addition, the Company does not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entities. Therefore the Company does not consolidate these VIEs and the carrying amounts of the Company’s investments in these LPs and LLCs are recognized in other invested assets on the consolidated balance sheets. Unfunded capital commitments for these investments are detailed in Note 14. The Company’s exposure to loss is limited to the capital invested and unfunded capital commitments related to the LPs/LLCs, which was $3,317.8 million and $2,976.4 million as of June 30, 2021 and December 31, 2020, respectively. The capital invested in an LP or LLC equals the original capital contributed, increased for additional capital contributed after the initial investment, and reduced for any returns of capital from the LP or LLC. LPs and LLCs are carried at fair value. The Company invests in certain mutual funds that it has concluded are VIEs. Based on the analysis of these entities, the Company is not the primary beneficiary of the VIEs. Mutual funds for which the Company does not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entities are recognized in equity securities on the consolidated balance sheets and were $31.3 million and $23.6 million as of June 30, 2021 and December 31, 2020, respectively. The Company’s maximum exposure to loss on these mutual funds is limited to the amortized cost for these investments. The Company makes investments in structured debt securities issued by VIEs for which they are not the manager. These structured debt securities include RMBS, CMBS, and ABS. The Company does not consolidate the securitization trusts utilized in these transactions because they do not have the power to direct the activities that most significantly impact the economic performance of these securitization trusts. The Company does not consider its continuing involvement with these VIEs to be significant because they either invest in securities issued by the VIE and were not involved in the design of the VIE or no transfers have occurred between the Company and the VIE. The Company’s maximum exposure to loss on these structured debt securities is limited to the amortized cost of these investments. The Company does not have any further contractual obligations to the VIE. The Company recognizes the variable interest in these VIEs at fair value on the consolidated balance sheets. Commercial Mortgage Loans Commercial mortgage loans of $11.1 billion and $10.2 billion at June 30, 2021 and December 31, 2020, respectively, are reported net of an allowance for credit losses of $113.9 million and $164.7 million at each date, respectively. At June 30, 2021, commercial mortgage loans were collateralized by properties located in 38 states, the District of Columbia, and Europe. Accrued interest receivable on commercial mortgage loans was $36.7 million and $32.3 million at June 30, 2021 and December 31, 2020, respectively. Residential Mortgage Loans Residential mortgage loans of $571.8 million and $448.6 million at June 30, 2021 and December 31, 2020, respectively, are reported net of an allowance for credit losses of $21.4 million and $14.5 million at each date, respectively. Loans were collateralized by properties located in 48 states, the District of Columbia, and Europe. Accrued interest receivable on residential mortgage loans was $3.1 million and $2.9 million at June 30, 2021 and December 31, 2020, respectively. Mortgage Loan Concessions In response to the adverse economic impact of the COVID-19 COVID-19 Evaluation for Credit Losses on Mortgage Loans The Company reviews mortgage loans on a quarterly basis to estimate the ACL with changes in the ACL recorded in net gains (losses) on derivatives and investments. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. The Company utilizes a third-party forecasting model to estimate lifetime expected credit losses at a loan level. The model forecasts net operating income and property values for the economic scenario selected. The debt service coverage ratios (“DSCR”) and loan to values (“LTV”) are calculated over the forecastable period by comparing the projected net operating income and property valuations to the loan payment and principal amounts of each loan. The model utilizes historical mortgage loan performance based on DSCRs and LTV to derive probability of default and expected losses based on the economic scenario that is similar to the Company’s expectations of economic factors such as unemployment, GDP growth, and interest rates. The Company determined the forecastable period to be reasonable and supportable for a period of two years beyond the end of the reporting period. Over the following one-year Unfunded commitments are included in the model and an ACL is determined accordingly. Credit loss estimates are pooled by property type and the Company does not include accrued interest in the determination of ACL. For individual loans or for types of loans for which the third-party model is deemed not suitable, the Company utilizes relevant current market data, industry data, and publicly available historical loss rates to calculate an estimate of the lifetime expected credit loss. Mortgage loans on real estate deemed uncollectible are charged against the ACL, and subsequent recoveries, if any, are credited to the ACL, limited to the aggregate of amounts previously charged-off charged-off. The following table provides a summary of the allowance for credit los |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 4. Derivative Instruments The Company’s business model includes the acceptance, monitoring and mitigation of risk. Specifically, the Company considers, among other factors, exposures to interest rate and equity market movements, foreign exchange rates and other asset or liability prices. The Company uses derivative instruments to mitigate or reduce these risks in accordance with established policies and goals. The Company’s derivative holdings, while effective in managing defined risks, are not structured to meet accounting requirements to be designated as hedging instruments. As a result, freestanding derivatives are carried at fair value with changes recorded in net gains (losses) on derivatives and investments. A summary of the aggregate contractual or notional amounts and fair values of the Company’s freestanding and embedded derivative instruments are as follows (in millions): June 30, 2021 Assets Liabilities Contractual/ (1) Fair Contractual/ (1) Fair Net Fair Value Freestanding derivatives Cross-currency swaps $ 1,113.3 $ 45.7 $ 654.1 $ 34.3 $ 11.4 Equity index call options 19,000.0 597.6 — — 597.6 Equity index futures (2) — — 15,900.0 — — Equity index put options 35,000.0 127.2 — — 127.2 Interest rate swaps 7,978.1 516.5 — — 516.5 Interest rate swaps - cleared (2) 1,500.0 — — — — Put-swaptions 16,000.0 179.1 2,000.0 17.5 161.6 Treasury futures (2) 1,611.7 — 10.6 — — Total freestanding derivatives 82,203.1 1,466.1 18,564.7 51.8 1,414.3 Embedded derivatives-product liabilities VA embedded derivatives (3) N/A — N/A 2,235.7 (2,235.7 ) FIA embedded derivatives (4) N/A — N/A 1,489.9 (1,489.9 ) Total embedded derivatives N/A — N/A 3,725.6 (3,725.6 ) Derivatives related to funds withheld under reinsurance treaties Cross-currency swaps 73.0 3.4 84.9 3.3 0.1 Cross-currency forwards 1,039.3 13.4 76.1 0.1 13.3 Funds withheld embedded derivative (5) N/A — N/A 372.9 (372.9 ) Total derivatives related to funds withheld under reinsurance treaties 1,112.3 16.8 161.0 376.3 (359.5 ) Total $ 83,315.4 $ 1,482.9 $ 18,725.7 $ 4,153.7 $ (2,670.8 ) (1) The notional amount for swaps and swaptions represents the stated principal balance used as a basis for calculating payments. The contractual amount for futures and options represents the market exposure of open positions. (2) Variation margin is considered settlement resulting in the netting of cash received/paid for variation margin against the fair value of the trades. (3) Included within reserves for future policy benefits and claims payable on the condensed consolidated balance sheets. The nonperformance risk adjustment is included in the balance above. (4) Included within other contract holder funds on the condensed consolidated balance sheets. The nonperformance risk adjustment is included in the balance above. (5) Included within funds withheld payable under reinsurance treaties on the condensed consolidated balance sheets. December 31, 2020 Assets Liabilities Contractual/ (1) Fair Contractual/ (1) Fair Net Fair Value Freestanding derivatives Cross-currency swaps $ 1,228.1 $ 93.0 $ 516.0 $ 34.0 $ 59.0 Equity index call options 26,300.0 1,127.3 — — 1,127.3 Equity index futures (2) — — 27,651.0 — — Equity index put options 27,000.0 178.0 — — 178.0 Interest rate swaps 4,250.0 721.8 500.0 0.9 720.9 Interest rate swaps - cleared (2) — — 1,500.0 8.2 (8.2 ) Put-swaptions 1,000.0 99.5 — — 99.5 Treasury futures (2) 8,520.5 — 3.8 — — Credit default swaps 0.5 — — — — Total freestanding derivatives 68,299.1 2,219.6 30,170.8 43.1 2,176.5 Embedded derivatives VA embedded derivatives (3) N/A — N/A 5,592.1 (5,592.1 ) FIA embedded derivatives (4) N/A — N/A 1,483.9 (1,483.9 ) Total embedded derivatives N/A — N/A 7,076.0 (7,076.0 ) Derivatives related to funds withheld under reinsurance treaties Cross-currency swaps 7.4 — 100.7 5.2 (5.2 ) Cross-currency forwards 75.3 0.2 668.3 8.1 (7.9 ) Funds withheld embedded derivative (5) N/A — N/A $ 826.6 $ (826.6 ) Total derivatives related to funds withheld under reinsurance treaties 82.7 0.2 769.0 839.9 (839.7 ) Total $ 68,381.8 $ 2,219.8 $ 30,939.8 $ 7,959.0 $ (5,739.2 ) (1) The notional amount for swaps and swaptions represents the stated principal balance used as a basis for calculating payments. The contractual amount for futures and options represents the market exposure of open positions. (2) Variation margin is considered settlement resulting in the netting of cash received/paid for variation margin against the fair value of the trades. (3) Included within reserves for future policy benefits and claims payable on the condensed consolidated balance sheets. The nonperformance risk adjustment is included in the balance above. (4) Included within other contract holder funds on the condensed consolidated balance sheets. The nonperformance risk adjustment is included in the balance above. (5) Included within funds withheld payable under reinsurance treaties on the condensed consolidated balance sheets. The following table reflects the results of the Company’s derivatives, including gains (losses) and change in fair value of freestanding derivative instruments and embedded derivatives (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Derivatives excluding funds withheld under reinsurance treaties Cross-currency swaps $ 21.1 $ 42.5 $ (44.3 ) $ 28.4 Equity index call options 666.6 347.8 798.6 122.2 Equity index futures (1,376.9 ) (6,699.1 ) (2,669.7 ) (1,067.5 ) Equity index put options (259.6 ) (3,038.5 ) (610.8 ) 752.2 Interest rate swaps 116.7 45.6 (148.2 ) 690.8 Interest rate swaps - 35.4 — (50.3 ) — Put-swaptions 394.9 12.0 103.2 265.1 Treasury futures (0.1 ) 90.6 (772.7 ) 1,978.8 Fixed index annuity embedded derivatives (1.7 ) (202.3 ) (2.1 ) 31.9 Variable annuity embedded derivatives (1,364.7 ) 3,510.9 3,283.4 (6,144.7 ) Total net gains (losses) on derivative instruments excluding derivative instruments related to funds withheld under reinsurance treaties (1,768.3 ) (5,890.5 ) (112.9 ) (3,342.8 ) Derivatives related to funds withheld under reinsurance treaties Cross-currency swaps 7.7 — 5.9 — Cross-currency forwards (5.4 ) — 13.4 — Treasury futures — (204.2 ) — (204.2 ) Funds withheld embedded derivative (544.3 ) (279.0 ) 453.7 (279.0 ) Total net gains (losses) on derivative instruments related to funds withheld under reinsurance treaties (542.0 ) (483.2 ) 473.0 (483.2 ) Total net gains (losses) on derivative instruments including derivative instruments related to funds withheld under reinsurance treaties $ (2,310.3 ) $ (6,373.7 ) $ 360.1 $ (3,826.0 ) All of the over-the-counter non-cleared, over-the-counter non-cleared, over-the-counter Offsetting Assets and Liabilities T The following tables present the gross and net information about the Company’s financial instruments subject to master netting arrangements (in millions): June 30, 2021 Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Condensed Balance Sheets Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Securities Collateral (2) Net Amount Financial Assets: Freestanding derivative assets $ 1,482.9 $ — $ 1,482.9 $ 55.2 $ 752.3 $ 641.1 $ 34.3 Financial Liabilities: Freestanding derivative liabilities $ 55.2 $ — $ 55.2 $ 55.2 $ — $ — $ — Securities loaned 23.5 — 23.5 — 23.5 — — Repurchase agreements 2,257.1 — 2,257.1 — — 2,257.1 — Total financial liabilities $ 2,335.8 $ — $ 2,335.8 $ 55.2 $ 23.5 $ 2,257.1 $ — (1) Represents the amount that could be offset under master netting or similar arrangements that management elects not to offset on the condensed consolidated balance sheet s (2) Excludes initial margin amounts for exchange-traded derivatives. December 31, 2020 Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Condensed Balance Sheets Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Securities Collateral (2) Net Amount Financial Assets: Freestanding derivative assets $ 2,219.8 $ — $ 2,219.8 $ 35.1 $ 1,097.9 $ 890.0 $ 196.8 Financial Liabilities: Freestanding derivative liabilities $ 56.4 $ — $ 56.4 $ 35.1 $ 13.1 $ — $ 8.2 Securities loaned 13.3 — 13.3 — 13.3 — — Repurchase agreements 1,100.0 — 1,100.0 — — 1,100.0 — Total financial liabilities $ 1,169.7 $ — $ 1,169.7 $ 35.1 $ 26.4 $ 1,100.0 $ 8.2 (1) R (2) Excludes initial margin amounts for exchange-traded derivatives. In the above tables, the amounts of assets or liabilities presented in the Company’s condensed consolidated balance sheets are offset first by financial instruments that have the right of offset under master netting or similar arrangements with any remaining amount reduced by the amount of cash and securities collateral. The actual amount of collateral may be greater than amounts presented in the tables. The above tables exclude net embedded derivative liabilities of $3,725.6 million and $7,076.0 million as of June 30, 2021 and December 31, 2020, respectively, as these derivatives are not subject to master netting arrangements. The above tables also exclude the funds withheld embedded derivative liability of $372.9 million and $826.6 million at June 30, 2021 and December 31, 2020. In addition, repurchase agreements are presented within other liabilities in the condensed consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements T June 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Assets Debt securities (1) $ 54,020.8 $ 54,020.8 $ 60,457.4 $ 60,457.4 Equity securities 239.3 239.3 193.1 193.1 Mortgage loans 11,649.1 12,151.4 10,727.5 11,348.9 Limited partnerships 2,391.6 2,391.6 1,991.3 1,991.3 Policy loans (1) 4,581.1 4,581.1 4,523.5 4,523.5 Freestanding derivative instruments 1,482.9 1,482.9 2,219.8 2,219.8 Federal Home Loan Bank of Indianapolis (“FHLBI”) capital stock 125.4 125.4 125.4 125.4 Cash and cash equivalents 1,534.6 1,534.6 2,018.7 2,018.7 GMIB reinsurance recoverable 267.2 267.2 340.4 340.4 Separate account assets 239,806.1 239,806.1 219,062.9 219,062.9 Liabilities Annuity reserves (2) $ 40,989.1 $ 49,051.4 $ 45,638.8 $ 54,005.7 Reserves for guaranteed investment contracts (3) 1,099.8 1,143.3 1,275.5 1,332.1 Trust instruments supported by funding agreements (3) 6,331.7 6,587.9 8,383.9 8,701.8 Federal Home Loan Bank funding agreements (3) 1,478.4 1,468.3 1,478.4 1,421.3 Funds withheld payable under reinsurance treaties (1) 30,321.8 30,321.8 31,971.5 31,971.5 Debt 317.7 397.7 322.0 412.3 Securities lending payable 23.5 23.5 13.3 13.3 Freestanding derivative instruments 55.2 55.2 56.4 56.4 Repurchase agreements 2,257.1 2,257.1 1,100.0 1,100.0 Federal Home Loan Bank advances 250.0 250.0 380.0 380.0 Separate account liabilities 239,806.1 239,806.1 219,062.9 219,062.9 (1) Includes items carried at fair value under the fair value option and trading securities. (2) Annuity reserves represent only the components of other contract holder funds and reserves for future policy benefits and claims payable that are considered to be financial instruments. (3) Included as a component of other contract holder funds on the condensed consolidated balance sheets. The following is a discussion of the methodologies used to determine fair values of the financial instruments measured on both a recurring and nonrecurring basis reported in the following tables. D The fair values for debt and equity securities are determined using information available from independent pricing services, broker-dealer quotes, or internally derived estimates. Priority is given to publicly available prices from independent sources, when available. Securities for which the independent pricing service does not provide a quotation are either submitted to independent broker-dealers for prices or priced internally. Typical inputs used by these three pricing methods include reported trades, benchmark yields, credit spreads, liquidity premiums and/or estimated cash flows based on default and prepayment assumptions. As a result of typical trading volumes and the lack of specific quoted market prices for most debt securities, independent pricing services will normally derive the security prices through recently reported trades for identical or similar securities, making adjustments through the reporting date based upon available market observable information as outlined above. If there are no recently reported trades, the independent pricing services and broker-dealers may use matrix or pricing model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at relevant market rates. Certain securities are priced using broker-dealer quotes, which may utilize proprietary inputs and models. Additionally, the majority of these quotes are non-binding. Included in the pricing of asset-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment assumptions believed to be relevant for the underlying collateral. Actual prepayment experience may vary from these estimates. Internally derived estimates may be used to develop a fair value for securities for which the Company is unable to obtain either a reliable price from an independent pricing service or a suitable broker-dealer quote. These fair value estimates may incorporate Level 2 and Level 3 inputs and are generally derived using expected future cash flows, discounted at market interest rates available from market sources based on the credit quality and duration of the instrument. For securities that may not be reliably priced using these internally developed pricing models, a fair value may be estimated using indicative market prices. These prices are indicative of an exit price, but the assumptions used to establish the fair value may not be observable or corroborated by market observable information and, therefore, represent Level 3 inputs. The Company performs an analysis on the prices and credit spreads received from third parties to ensure that the prices represent a reasonable estimate of the fair value. This process involves quantitative and qualitative analysis and is overseen by investment and accounting professionals. Examples of procedures performed include, but are not limited to, initial and ongoing review of third-party pricing service methodologies, review of pricing statistics and trends, back testing recent trades and monitoring of trading volumes. In addition, the Company considers whether prices received from independent broker-dealers represent a reasonable estimate of fair value through the use of internal and external cash flow models, which are developed based on spreads and, when available, market indices. As a result of this analysis, if the Company determines there is a more appropriate fair value based upon the available market data, the price received from the third party may be adjusted accordingly. For those securities that were internally valued at June 30, 2021 and December 31, 2020, the pricing model used by the Company utilizes current spread levels of similarly rated securities to determine the market discount rate for the security. Furthermore, appropriate risk premiums for illiquidity and non-performance On an ongoing basis, the Company reviews the independent pricing services’ valuation methodologies and related inputs, and evaluates the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy distribution based upon trading activity and the observability of market inputs. Based on the results of this evaluation, each price is classified into Level 1, 2, or 3. Most prices provided by independent pricing services, including broker-dealer quotes, are classified into Level 2 due to their use of market observable inputs. Limited Partnerships Fair values for limited partnership interests, which are included in other invested assets, is generally determined using the proportion of the Company’s investment in the value of the net assets of each fund (“NAV equivalent”) as a practical expedient for fair value, and generally, are recorded on a three-month lag. No adjustments to these amounts were deemed necessary at June 30, 2021 and December 31, 2020. As a result of using the net asset value per share practical expedient, limited partnership interests are not classified in the fair value hierarchy. The Company’s limited partnership interests are not redeemable and distributions received are generally the result of liquidation of the underlying assets of the partnerships. The Company generally has the ability under the partnership agreements to sell its interest to another limited partner with the prior written consent of the general partner. In cases when the Company expects to sell the limited partnership interest, the estimated sales price is used to determine the fair value. These limited partnership interests are classified as Level 2 in the fair value hierarchy. In cases when a limited partnership’s financial statements are unavailable and a NAV equivalent is not available or practical, an internally developed model is used to determine fair value for that fund. These investments are classified as Level 3 in the fair value hierarchy. M Fair values are generally determined by discounting expected future cash flows at current market interest rates, inclusive of a credit spread, for similar quality loans. For loans whose value is dependent upon the underlying property, fair value is determined to be the estimated value of the collateral. Certain characteristics considered significant in determining the spread or collateral value may be based on internally developed estimates. As a result, these investments have been classified as Level 3 within the fair value hierarchy. Policy Loans Policy loans are funds provided to policyholders in return for a claim on the policies values and function like demand deposits which are redeemable upon repayment, death or surrender, and there is only one market price at which the transaction could be settled – the then current carrying value. The funds provided are limited to the cash surrender value of the underlying policy. The nature of policy loans is to have a negligible default risk as the loans are fully collateralized by the value of the policy. Policy loans do not have a stated maturity and the balances and accrued interest are repaid either by the policyholder or with proceeds from the policy. Due to the collateralized nature of policy loans and unpredictable timing of payments, the Company believes the carrying value of policy loans approximates fair value. Policy loans have been classified as Level 3 within the fair value hierarchy. Freestanding Derivative Instruments Freestanding derivative instruments are reported at fair value, which reflects the estimated amounts, net of payment accruals, which the Company would receive or pay upon sale or termination of the contracts at the reporting date. Changes in fair value are included in net gains (losses) on derivatives and investments. Freestanding derivatives priced using third party pricing services incorporate inputs that are predominantly observable in the market. Inputs used to value derivatives include, but are not limited to, interest rate swap curves, credit spreads, interest rates, counterparty credit risk, equity volatility and equity index levels. Freestanding derivative instruments classified as Level 1 include futures, which are traded on active exchanges. Freestanding derivative instruments classified as Level 2 include interest rate swaps, cross currency swaps, cross-currency forwards, credit default swaps, put-swaptions and certain equity index call and put options. These derivative valuations are determined by third-party pricing services using pricing models with inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Freestanding derivative instruments classified as Level 3 include interest rate contingent options that are valued by third-party pricing services utilizing significant unobservable inputs. F FHLBI capital stock, which is included in other invested assets, can only be sold to FHLBI at a constant price of $100 per share. Due to the lack of valuation uncertainty, the investment has been classified as Level 1. Cash and Cash Equivalents Cash and cash equivalents primarily include money market instruments and bank deposits. Certain money market instruments are valued using unadjusted quoted prices in active markets and are classified as Level 1. Funds Withheld Payable Under Reinsurance Treaties T embedded derivatives associated with funds withheld reinsurance contracts is determined based upon a total return swap technique referencing the fair value of the investments held under the reinsurance contract and included in the Company’s condensed consolidated balance sheet. Separate Account Assets and Liabilities Separate account assets are comprised of investments in mutual funds that transact regularly, but do not trade in active markets as they are not publicly available, and, are categorized as Level 2 assets. The values of separate account liabilities are set equal to the values of separate account assets. Other Contract Holder Funds Fair values for immediate annuities without mortality features are derived by discounting the future estimated cash flows using current market interest rates for similar maturities. Fair values for deferred annuities, including fixed index annuities, are determined using projected future cash flows discounted at current market interest rates. The fair value of the fixed index annuities embedded option, incorporating such factors as the volatility of returns, the level of interest rates and the time remaining until the option expires, is calculated using the closed form Black-Scholes Option Pricing model or Monte Carlo simulations, as appropriate for the type of option. Additionally, assumed withdrawal rates are used to estimate the expected volume of embedded options that will be realized by policyholders. Fair values for guaranteed investment contracts are based on the present value of future cash flows discounted at current market interest rates. Fair values for trust instruments supported by funding agreements are based on the present value of future cash flows discounted at current market interest rates. Fair values of the FHLBI funding agreements are based on the present value of future cash flows discounted at current market interest rates. Variable Annuity Guarantees Variable annuity contracts issued by the Company offer various guaranteed minimum death, withdrawal, income and accumulation benefits. Certain benefits, including non-life GMABs and non-life The Company’s GMIB book is reinsured through an unrelated party, and due to the net settlement provisions of the reinsurance agreement, this contract meets the definition of a derivative. Accordingly, the GMIB reinsurance agreement is recorded at fair value, with changes in fair value recorded in net gains (losses) on derivatives and investments. Due to the Fair values for GMWB, GMWB for Life, and GMAB embedded derivatives, as well as GMIB reinsurance recoverables, are calculated using internally developed models because active, observable markets do not exist for those guaranteed benefits. The fair value calculation is based on the present value of future cash flows comprised of future expected benefit payments, less future attributed rider fees, over the lives of the contracts. Estimating these cash flows requires numerous estimates and subjective judgments related to capital market inputs, as well as actuarially determined assumptions related to expectations concerning policyholder behavior. Capital market inputs include expected market rates of return, market volatility, correlations of market index returns to funds, fund performance and discount rates. The more significant actuarial assumptions include benefit utilization by policyholders, lapse, mortality, and withdrawal rates. Best estimate assumptions plus risk margins are used as applicable. At each valuation date, the fair value calculation reflects expected returns based on the greater of LIBOR swap rates and constant maturity treasury rates as of that date to determine the value of expected future cash flows produced in a stochastic process. Volatility assumptions are based on a weighting of available market data for implied market volatility for durations up to 10 years, grading to a historical volatility level by year 15, where such long-term historical volatility levels contain an explicit risk margin. Additionally, non-performance As markets change, mature and evolve and actual policyholder behavior emerges, management continually evaluates the appropriateness of its assumptions for this component of the fair value model. The use of the models and assumptions described above requires a significant amount of judgment. Management believes the aggregation of each of these components results in an amount that the Company would be required to transfer for a liability, or receive for an asset, to or from a willing buyer or seller, if one existed, for those market participants to assume the risks associated with the guaranteed benefits and the related reinsurance. However, the ultimate settlement amount of the asset or liability, which is currently unknown, could likely be significantly different than this fair value. Debt Fair values for the Company’s surplus notes and other long-term debt are generally determined by prices obtained from independent broker dealers or discounted cash flow models. Such prices are derived from market observable inputs and are classified as Level 2. Securities Lending Payable The Company’s securities lending payable is set equal to the cash collateral received. Due to the short-term nature of the loans, carrying value is a reasonable estimate of fair value and is classified as Level 2. Repurchase Agreements Carrying value of the Company’s repurchase agreements, which are included in other liabilities, is considered a reasonable estimate of fair value due to their short-term maturities and are classified as Level 2. Federal Home Loan Bank Advances Carrying value of the Company’s Federal Home Loan Bank advances, which are included in other liabilities, is considered a reasonable estimate of fair value due to their short-term maturities and are classified as Level 2. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables summarize the Company’s assets and liabilities that are carried at fair value by hierarchy levels (in millions): June 30, 2021 Total Level 1 Level 2 Level 3 Assets Debt securities U.S. government securities $ 4,468.5 $ 4,468.5 $ — $ — Other government securities 1,649.0 — 1,649.0 — Public utilities 6,646.5 — 6,646.5 — Corporate securities 31,844.5 — 31,813.3 31.2 Residential mortgage-backed 834.6 — 834.6 — Commercial mortgage-backed 2,871.0 — 2,871.0 — Other asset-backed securities 5,706.7 — 5,706.6 0.1 Equity securities 239.3 92.3 43.8 103.2 Limited partnerships 185.3 — 184.6 0.7 Policy loans 3,537.8 — — 3,537.8 Freestanding derivative instruments 1,482.9 — 1,482.9 — Cash and cash equivalents 1,534.6 1,534.6 — — GMIB reinsurance recoverable 267.2 — — 267.2 Separate account assets 239,806.1 — 239,806.1 — Total $ 301,074.0 $ 6,095.4 $ 291,038.4 $ 3,940.2 Liabilities Embedded derivative liabilities (1) $ 3,725.6 $ — $ 1,489.9 $ 2,235.7 Funds withheld payable under reinsurance treaties (2) 4,081.5 — — 4,081.5 Freestanding derivative instruments 55.2 — 55.2 — Total $ 7,862.3 $ — $ 1,545.1 $ 6,317.2 (1) Includes the embedded derivative liabilities of $2,235.7 million related to GMWB reserves included in reserves for future policy benefits and claims payable and $1,489.9 million of fixed index annuities included in other contract holder funds on the condensed consolidated balance sheets. (2) Includes the Athene embedded derivative liability of $372.9 million and funds withheld payable under reinsurance treaties at fair value under the fair value option. December 31, 2020 Total Level 1 Level 2 Level 3 Assets Debt securities U.S. government securities $ 5,126.0 $ 5,126.0 $ — $ — Other government securities 1,696.9 — 1,696.9 — Public utilities 7,297.7 — 7,297.7 — Corporate securities 36,440.0 — 36,411.3 28.7 Residential mortgage-backed 984.9 — 984.9 — Commercial mortgage-backed 3,322.6 — 3,322.6 — Other asset-backed securities 5,589.3 — 5,589.2 0.1 Equity securities 193.1 65.4 24.1 103.6 Limited partnerships 0.8 — — 0.8 Policy loans 3,454.2 — — 3,454.2 Freestanding derivative instruments 2,219.8 — 2,219.8 — Cash and cash equivalents 2,018.7 2,018.7 — — GMIB reinsurance recoverable 340.4 — — 340.4 Separate account assets 219,062.9 — 219,062.9 — Total $ 287,747.3 $ 7,210.1 $ 276,609.4 $ 3,927.8 Liabilities Embedded derivative liabilities (1) $ 7,076.0 $ — $ 1,483.9 $ 5,592.1 Funds withheld payable under reinsurance treaties (2) 4,453.1 — — 4,453.1 Freestanding derivative instruments 56.4 — 56.4 — Total $ 11,585.5 $ — $ 1,540.3 $ 10,045.2 (1) Includes the embedded derivative liabilities of $5,592.1 million related to GMWB reserves included in reserves for future policy benefits and claims payable and $1,483.9 million of fixed index annuities included in other contract holder funds on the condensed consolidated balance sheets. (2) Includes the Athene embedded derivative liability of $826.6 million and funds withheld payable under reinsurance treaties at fair value under the fair value option. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) Level 3 Assets and Liabilities by Price Source The t June 30, 2021 Total Internal External Asset s Debt securities: Corporate $ 31.2 $ — $ 31.2 Other asset-backed securities 0.1 0.1 — Equity securities 103.2 1.2 102.0 Limited partnerships 0.7 0.7 — Policy loans 3,537.8 3,537.8 — GMIB reinsurance recoverable 267.2 267.2 — Total $ 3,940.2 $ 3,807.0 $ 133.2 Liabilities Embedded derivative liabilities (1) $ 2,235.7 $ 2,235.7 $ — Funds withheld payable under reinsurance treaties 4,081.5 4,081.5 — Total $ 6,317.2 $ 6,317.2 $ — (1) Includes the embedded derivative related to GMWB reserves. December 31, 2020 Total Internal External Asset s Debt securities: Corporate $ 28.7 $ — $ 28.7 Other asset-backed securities 0.1 — 0.1 Equity securities 103.6 1.2 102.4 Limited partnerships 0.8 0.8 — Policy loans 3,454.2 3,454.2 — GMIB reinsurance recoverable 340.4 340.4 — Total $ 3,927.8 $ 3,796.6 $ 131.2 Liabilities Embedded derivative liabilities (1) $ 5,592.1 $ 5,592.1 $ — Funds withheld payable under reinsurance treaties 4,453.1 4,453.1 — Total $ 10,045.2 $ 10,045.2 $ — (1) Includes the embedded derivative related to GMWB reserves. External pricing sources for securities represent unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available. Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities The table below presents quantitative information on significant internally-priced Level 3 assets and liabilities (in millions): As of June 30, 2021 Fair Value Valuation Technique(s) Significant Unobservable Assumption or Impact of Increase in Assets GMIB reinsurance recoverable $ 267.2 Discounted cash flow Mortality (1) 0.01% - 23.52% Decrease Lapse (2) 3.33% - 9.23% Decrease Utilization (3) 0.00% - 20.00% Increase Withdrawal (4) 3.75% - 4.50% Increase Nonperformance risk (5) 0.09% - 1.41% Decrease Long-term Equity Volatility (6) 18.50% - Increase Liabilities Embedded derivative liabilities $ 2,235.7 Discounted cash flow Mortality (1) 0.04% - 21.53% Decrease Lapse (2) 0.16% - 30.26% Decrease Utilization (3) 5.00% - 100.00% Increase Withdrawal (4) 56.00% - 94.75% Increase Nonperformance risk (5) 0.09% - 1.41% Decrease Long-term Equity Volatility (6) 18.50% - 22.04% Increase (1) Mortality rates vary by attained age, tax qualification status, GMWB benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied. (2) Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and optional benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, in-the-money. (3) The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money. (4) The withdrawal rate represents the utilization rate of the contract’s free partial withdrawal provision (GMIB) or the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount (GMWB). Withdrawal rates on contracts with a GMIB vary based on the product type and duration. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions. (5) Nonperformance risk spread varies by duration. (6) Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available. As of December 31, 2020 Fair Value Valuation Technique(s) Significant Unobservable Assumption or Impact of Increase in Assets GMIB reinsurance recoverable $ 340.4 Discounted cash flow Mortality (1) 0.01% - 23.52% Decrease Lapse (2) 3.30% - 9.20% Decrease Utilization (3) 0.00% - 20.00% Increase Withdrawal (4) 3.75% - 4.50% Increase Nonperformance risk (5) 0.33% - 1.57% Decrease Long-term Equity Volatility (6) 18.50% - 22.47% Increase Liabilities Embedded derivative liabilities $ 5,592.1 Discounted cash flow Mortality (1) 0.04% - 21.53% Decrease Lapse (2) 0.20% - 30.30% Decrease Utilization (3) 5.00% - 100.00% Increase Withdrawal (4) 56.00% - 95.00% Increase Nonperformance risk (5) 0.33% - 1.57% Decrease Long-term Equity (6) 18.50% - 22.47% Increase (1) Mortality rates vary by attained age, tax qualification status, GMWB benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied. (2) Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and optional benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, in-the-money. (3) The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money. (4) The withdrawal rate represents the utilization rate of the contract’s free partial withdrawal provision (GMIB) or the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount (GMWB). Withdrawal rates on contracts with a GMIB vary based on the product type and duration. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions. (5) Nonperformance risk spread varies by duration. (6) Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available. Sensitivity to Changes in Unobservable Inputs The following is a general description of sensitivities of significant unobservable inputs and their impact on the fair value measurement for the assets and liabilities reflected in the table above. At both Policy loans that support funds withheld reinsurance agreements that are held at fair value under the fair value option on the Company’s condensed consolidated balance sheet are excluded from the table above. These policy loans do not have a stated maturity and the balances, plus accrued investment income, are repaid either by the policyholder or with proceeds from the policy. Due to the collateralized nature of policy loans and unpredictable timing of payments, the Company believes the carrying value of policy loans, which includes accrued investment income, approximates fair value and have been classified as Level 3 within the fair value hierarchy. Funds withheld payable under reinsurance treaties, for funds withheld payable held at fair value under the fair value option and the Athene embedded derivative, are excluded from the table above. The fair value of Funds withheld payable under reinsurance treaties, excluding the Athene embedded derivative, is determined based upon the fair value of the investments held by the Company related to the Company’s funds withheld payable under reinsurance treaties. The fair value of these underlying assets is generally based on market observable inputs using industry standard valuation techniques. The Athene embedded derivative utilizes a total return swap technique which incorporates the fair value of the invested assets supporting the reinsurance agreement as a component of the valuation. In addition, these valuations for the funds withheld payable under reinsurance treaties and the Athene embedded derivative also require certain significant inputs which are generally not observable and, accordingly, the valuation is considered Level 3 in the fair value hierarchy. The GMIB reinsurance recoverable fair value calculation is based on the present value of future cash flows comprised of future expected reinsurance benefit receipts, less future attributed premium payments to reinsurers, over the lives of the contracts. Estimating these cash flows requires actuarially determined assumptions related to expectations concerning policyholder behavior and long-term market volatility. The more significant policyholder behavior actuarial assumptions include benefit utilization, fund allocation, lapse, and mortality. Embedded derivative liabilities classified in Level 3 represent the fair value of guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum accumulation benefits (“GMAB”) liabilities. These fair value calculations are based on the present value of future cash flows comprised of future expected benefit payments, less future attributed rider fees, over the lives of the contracts. Estimating these cash flows requires actuarially determined assumptions related to expectations concerning policyholder behavior and long-term market volatility. The more significant policyholder behavior actuarial assumptions include benefit utilization, fund allocation, lapse, and mortality. The tables below provide rollforwards for the three and six months ended June 30, 2021 and 2020 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement. Gains and losses in the table below include changes in fair value due partly to observable and unobservable factors. The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instruments hedging the related risks may not be classified within the same fair value hierarchy level as the associated assets and liabilities. Therefore, the impact of the derivative instruments reported in Level 3 may vary significantly from the total income effect of the hedged instruments. Total Realized/Unrealized Three Months Ended June 30, 2021 Fair Net Income Other Purchases, Transfers in of) Level 3 Fair Value as Assets Debt securities Corporate securities $ 17.7 $ 1.2 $ — $ 4.9 $ 7.4 $ 31.2 Other asset-backed securities 0.1 — — — — 0.1 Equity securities 101.5 8.9 — (7.5 ) 0.3 103.2 Limited partnerships 0.8 — — (0.1 ) — 0.7 GMIB reinsurance recoverable 266.0 1.2 — — — 267.2 Policy Loans 3,486.1 69.9 — (18.2 ) — 3,537.8 Liabilities Embedded derivative liabilities $ (869.6 ) $ (1,366.1 ) $ — $ — $ — $ (2,235.7 ) Funds withheld payable under reinsurance treaties (3,485.9 ) (584.6 ) 0.2 (11.2 ) — (4,081.5 ) Total Realized/Unrealized Three Months Ended June 30, 2020 Fair Value as Net Income Other Purchases, Transfers in Fair Value as Assets Debt securities Corporate securities $ 45.8 $ (6.2 ) $ — $ 38.9 $ (27.6 ) $ 50.9 Equity securities 154.7 (12.6 ) — (23.2 ) (0.1 ) 118.8 Limited partnerships 1.1 (0.2 ) — — — 0.9 GMIB reinsurance recoverable 502.1 (66.6 ) — — — 435.5 Policy loans 3,602.2 66.1 — (63.3 ) — 3,605.0 Liabilities Embedded derivative liabilities $ (12,645.4 ) $ 3,577.6 $ — $ — $ — $ (9,067.8 ) Funds withheld payable under reinsurance (3,773.0 ) (346.4 ) 1.2 62.9 — (4,055.3 ) Total Realized/Unrealized Six Months Ended June 30, 2021 Fair Value as Net Income Other Purchases, Transfers in Fair Value as Assets Debt securities Corporate securities $ 28.7 $ 1.8 $ — $ 5.7 $ (5.0 ) $ 31.2 Other asset-backed securities 0.1 — — — — 0.1 Equity securities 103.6 6.8 — (7.5 ) 0.3 103.2 Limited partnerships 0.8 — — (0.1 ) — 0.7 GMIB reinsurance recoverable 340.4 (73.2 ) — — — 267.2 Policy loans 3,454.2 125.1 — (41.5 ) — 3,537.8 Liabilities Embedded derivative liabilities $ (5,592.1 ) $ 3,356.4 $ — $ — $ — $ (2,235.7 ) Funds withheld payable under reinsurance treaties (4,453.1 ) 329.7 1.8 40.1 — (4,081.5 ) Total Realized/Unrealized Six Months Ended June 30, 2020 Fair Value as of January 1, Net Income Other Purchases, Transfers in Fair Value as Assets Debt securities Corporate securities $ — $ (5.3 ) $ — $ 17.3 $ 38.9 $ 50.9 Equity securities 182.9 (33.1 ) — (30.9 ) (0.1 ) 118.8 Limited partnerships 1.1 (0.2 ) — — — 0.9 GMIB |
Deferred Acquisition Costs
Deferred Acquisition Costs | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Acquisition Costs | 6. Deferred Acquisition Costs The balances of and changes in deferred acquisition costs were as follows (in millions): Six Months Ended June 30, 2021 2020 Balance, beginning of period $ 13,897.0 $ 12,336.8 Deferrals of acquisition costs 400.3 351.5 Amortization related to: Operating amortization (94.4 ) (175.1 ) Non-operating amortization (453.1 ) 631.1 Write-off — (625.8 ) Total amortization (expense) benefit (547.5 ) (169.8 ) Unrealized investment (gains) losses 63.5 90.8 Balance, end of period $ 13,813.3 $ 12,609.3 |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | 7. Reinsurance The Company assumes and cedes reinsurance from and to other insurance companies in order to limit losses from large exposures. However, if the reinsurer is unable to meet its obligations, the originating issuer of the coverage retains the liability. The Company reinsures certain of its risks to other reinsurers under a coinsurance, modified coinsurance, or yearly renewable term basis. The Company regularly monitors the financial strength ratings of its reinsurers. The Company has also acquired certain lines of business that are wholly ceded to non-affiliates. As indicated in Note 1, on June 18, 2020, the Company’s subsidiary, Jackson, entered into a funds withheld coinsurance agreement with Athene effective June 1, 2020 to reinsure on 100% quota share basis, a block of Jackson’s in-force Pursuant to the Athene coinsurance agreement, the Company holds certain assets as collateral. At June 30, 2021 and December 31, 2020, assets held as collateral in the segregated custody account were $26.6 billion and $28.3 billion, respectively. The Company’s GMIBs are reinsured with an unrelated party and due to the net settlement provisions of the reinsurance agreement, meet the definition of a derivative. Accordingly, the GMIB reinsurance agreement is recorded at fair value on the Company’s consolidated balance sheets, with changes in fair value recorded in net gains (losses) on derivatives and investments. GMIB reinsured benefits are subject to aggregate annual claim limits. Deductibles also apply on reinsurance of GMIB business issued since March 1, 2005. The Company has three retro treaties with Swiss Reinsurance Company Ltd. (“SRZ”). Pursuant to these retro treaties, the Company ceded to SRZ on a 100% coinsurance basis, subject to pre-existing The following assets and liabilities were held in support of reserves associated with the Company’s funds withheld reinsurance agreements and were reported in the respective financial statement line items in the condensed consolidated balance sheets (in millions): June 30, 2021 December 31, 2020 Assets Debt securities $ 21,170.3 $ 24,642.4 Equity securities 84.5 42.2 Mortgage loans 4,389.6 2,985.5 Policy loans 3,553.8 3,470.8 Derivative instruments, net 13.4 (13.1 ) Limited partnerships 423.5 124.9 Cash and cash equivalents 345.6 394.1 Accrued investment income 175.6 190.3 Other assets and liabilities, net 38.4 22.8 Total assets (2) $ 30,194.7 $ 31,859.9 Liabilities Funds held under reinsurance treaties (1) 30,321.8 31,971.5 Total liabilities $ 30,321.8 $ 31,971.5 (1) Includes funds withheld embedded derivative of $372.9 million and $826.6 million at June 30, 2021 and December 31, 2020, respectively. (2) Certain assets are reported at amortized cost while the fair value of those assets are reported in the embedded derivative in the funds withheld liability. The sources of income related to funds withheld under reinsurance treaties reported in net investment income in the consolidated income statements were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Debt securities $ 194.4 $ 67.7 $ 397.5 $ 71.9 Equity securities 3.5 — 2.4 — Mortgage loans 43.4 10.5 78.0 10.5 Policy loans 80.6 74.0 161.7 154.5 Limited partnerships (2.1 ) — 0.6 — Other investment income — 0.1 0.2 0.1 Total investment income on funds withheld assets 319.8 152.3 640.4 237.0 Other investment expenses on funds withheld assets (1) (26.0 ) (8.1 ) (55.5 ) (8.1 ) Total net investment income on funds withheld reinsurance treaties $ 293.8 $ 144.2 $ 584.9 $ 228.9 (1) Includes management fees. The gains and losses on funds withheld reinsurance treaties as a component of net gains (losses) on derivatives and investments in the condensed consolidated income statements were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Available-for-sale Realized gains on sale $ 85.0 $ 1,598.1 $ 258.3 $ 1,598.1 Realized losses on sale (10.9 ) (2.2 ) (12.8 ) (2.2 ) Credit loss expense (0.5 ) — (0.5 ) — Gross impairments — (1.6 ) — (1.6 ) Credit loss expense on mortgage loans (11.6 ) (17.7 ) (4.6 ) (17.7 ) Other (3.1 ) — (12.1 ) — Net gains (losses) on non-derivative 58.9 1,576.6 228.3 1,576.6 Net gains (losses) on derivative instruments 2.3 (204.2 ) 19.3 (204.2 ) Net gains (losses) on funds withheld payable under reinsurance treaties (1) (828.6 ) (119.0 ) (117.3 ) (203.7 ) Total net gains (losses) on derivatives and investments $ (767.4 ) $ 1,253.4 $ 130.3 $ 1,168.7 (1) Includes the Athene embedded derivative gain (loss) of $(544.3) million and $453.7 million for the three and six months ended June 30, 2021, respectively, and $(279.0) million for both the three and six months ended June 30, 2020. While the economic benefits of the funds withheld assets flow to the respective reinsurers, Jackson retains physical possession and legal ownership of the investments supporting the reserves. Net Investment Income and Net Gains (Losses) on Derivatives and Investments related to the funds withheld assets are included in periodic settlements under the reinsurance agreements which results in the flow of returns on the assets to the reinsurers. Net gains (losses) on the funds withheld assets are increased or decreased by changes in the embedded derivative liability related to the Athene Reinsurance Agreement and also include (i) changes in the related funds withheld payable and (ii) amortization of the basis difference between book value and fair value of the investments as of the effective date of the reinsurance agreements. Components of the Company’s reinsurance recoverable were as follows (in millions): June 30, 2021 December 31, 2020 Reserves: Life $ 5,920.9 $ 5,963.9 Accident and health 557.8 568.7 Guaranteed minimum income benefits 267.2 340.3 Other annuity benefits (1) 26,687.8 27,535.8 Claims liability and other 813.0 860.8 Total $ 34,246.7 $ 35,269.5 (1) Other annuity benefits primarily attributable to fixed and fixed index annuities reinsured with Athene. |
Reserves for Future Policy Bene
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds | 6 Months Ended |
Jun. 30, 2021 | |
Insurance Loss Reserves [Abstract] | |
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds | 8. Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds T June 30, December 31, Traditional life $ 4,358.8 $ 4,535.3 Guaranteed benefits (1) 5,046.1 8,508.5 Claims payable 1,029.8 1,109.5 Accident and health 1,225.8 1,257.2 Group payout annuities 5,077.2 5,220.3 Other 823.4 859.3 Total $ 17,561.1 $ 21,490.1 (1) Primarily includes the embedded derivative liabilities related to the GMWB reserve. For traditional life insurance contracts, which include term and whole life, reserves are determined using the net level premium method and assumptions as of the issue date or acquisition date as to mortality, interest rates, lapse and expenses plus provisions for adverse deviation. These assumptions are not unlocked unless the reserve is determined to be deficient. The Company’s liability for future policy benefits also includes liabilities for guaranteed benefits related to certain nontraditional long-duration life and annuity contracts, which are further discussed in Note 9. The following table sets forth the Company’s liabilities for other contract holder funds balances (in millions): June 30, December Interest-sensitive life $ 11,725.4 $ 11,835.5 Variable annuity fixed option 10,168.2 10,609.6 Fixed annuity 16,284.6 16,746.3 Fixed index annuity (1) 13,809.6 14,209.2 GICs, funding agreements and FHLB advances 8,910.0 11,137.8 Total $ 60,897.8 $ 64,538.4 (1) Includes the embedded derivative liabilities related to fixed index annuity of $1,489.9 million and $1,483.9 million at June 30, 2021 and December 31, 2020, respectively. For interest-sensitive life contracts, liabilities approximate the policyholder’s account value, plus the remaining balance of the fair value adjustment related to previously acquired business, which is further discussed below. The liability for fixed index annuities is based on three components, 1) the imputed value of the underlying guaranteed host contract, 2) the fair value of the embedded option component of the contract, and 3) the liability for guaranteed benefits related to the optional lifetime income rider. For fixed annuities, variable annuity fixed option, and other investment contracts, as detailed in the above table, the liability is the policyholder’s account value, plus the unamortized balance of the fair value adjustment related to previously acquired business. At June 30, 2021, the Company had interest sensitive life business with minimum guaranteed interest rates ranging from 2.5% to 6.0% with a 4.68% average guaranteed rate and fixed interest rate annuities with minimum guaranteed rates ranging from 1.0% to 5.5% and a 2.03% average guaranteed rate. in-force in-force e fixed int June 30, 2021 Account Value Minimum Guaranteed Interest Rate Fixed Fixed Index Variable Total 1.0% $ 124.5 $ 232.7 $ 6,097.2 $ 6,454.4 >1.0% - 2.0% 59.6 1.5 226.5 287.6 >2.0% - 3.0% 1,130.6 185.4 3,291.3 4,607.3 >3.0% - 4.0% 607.6 — — 607.6 >4.0% - 5.0% 278.0 — — 278.0 >5.0% - 5.5% 72.2 — — 72.2 Subtotal 2,272.5 419.6 9,615.0 12,307.1 Ceded reinsurance 12,529.5 13,390.0 — 25,919.5 Total $ 14,802.0 $ 13,809.6 $ 9,615.0 $ 38,226.6 December 31, 2020 Account Value Minimum Guaranteed Interest Rate Fixed Fixed Index Variable Total 1.0% $ 92.1 $ 164.5 $ 6,501.6 $ 6,758.2 >1.0% - 2.0% 63.3 2.7 235.7 301.7 >2.0% - 3.0% 1,162.1 189.9 3,356.6 4,708.6 >3.0% - 4.0% 622.5 — — 622.5 >4.0% - 5.0% 280.3 — — 280.3 >5.0% - 5.5% 73.2 — — 73.2 Subtotal 2,293.5 357.1 10,093.9 12,744.5 Ceded reinsurance 12,923.7 13,852.1 — 26,775.8 Total $ 15,217.2 $ 14,209.2 $ 10,093.9 $ 39,520.3 At June 30, 2021 and December 31, 2020, approximately 81% and 80%, respectively, of the Company’s interest sensitive life business account values correspond to crediting rates that are at the minimum guaranteed interest rates. The following table shows the distribution of the interest sensitive life business account values within the presented ranges of minimum guaranteed interest rates, excluding the business that is subject to the previously mentioned retro treaties (in millions): June 30, 2021 December 31, 2020 Minimum Guaranteed Interest Rate Account Value - Interest Sensitive Life >2.0% - 3.0% $ 258.0 $ 269.6 >3.0% - 4.0% 2,775.4 2,819.5 >4.0% - 5.0% 2,439.9 2,488.2 >5.0% - 6.0% 2,001.3 2,044.6 Subtotal 7,474.6 7,621.9 Retro treaties 4,250.8 4,213.6 Total $ 11,725.4 $ 11,835.5 The Company has established a $23.0 billion aggregate Global Medium Term Note program. Jackson National Life Global Funding was formed as a statutory business trust, solely for the purpose of issuing Medium Term Note instruments to institutional investors, the proceeds of which are deposited with the Company and secured by the issuance of funding agreements. The carrying values at June 30, 2021 and December 31, 2020 totaled $6.3 billion and $8.4 billion, respectively. Those Medium Term Note instruments issued in a foreign currency have been hedged for changes in exchange rates using cross-currency swaps. The unrealized foreign currency gains and losses on those Medium Term Note instruments are included in the carrying value of the trust instruments supported by funding agreements. Trust instrument liabilities are adjusted to reflect the effects of foreign currency translation gains and losses using exchange rates as of the reporting date. Foreign currency translation gains and losses are included in net gains (losses) on derivatives and investments. Jackson and Squire Re are members of the FHLBI primarily for the purpose of participating in the bank’s mortgage-collateralized loan advance program with short-term and long-term funding facilities. Advances are in the form of short-term or long-term notes or funding agreements issued to FHLBI. At both June 30, 2021 and December 31, 2020, the Company held $125.4 million of FHLBI capital stock, supporting $1.8 billion and $1.9 billion in funding agreements, short-term and long-term borrowing capacity at June 30, 2021 and December 31, 2020, respectively. |
Certain Nontraditional Long-Dur
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees | 6 Months Ended |
Jun. 30, 2021 | |
Certain Nontraditional LongDuration Contracts and Variable Annuity Guarantees [Abstract] | |
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees | 9. Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees The Company issues variable contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (“traditional variable annuities”). The Company also issues variable annuity and life contracts through separate accounts where the Company contractually guarantees to the contract holder (“variable contracts with guarantees”) either a) return of no less than total deposits made to the account adjusted for any partial withdrawals, b) total deposits made to the account adjusted for any partial withdrawals plus a minimum return, or c) the highest account value on a specified anniversary date adjusted for any withdrawals following the contract anniversary. These guarantees include benefits that are payable in the event of death (guaranteed minimum death benefits, or “GMDB”), at annuitization (GMIB), upon the depletion of funds (GMWB) or at the end of a specified period (GMAB). The assets supporting the variable portion of both traditional variable annuities and variable contracts with guarantees are carried at fair value and reported as summary total separate account assets with an equivalent summary total reported for separate account liabilities. Liabilities for guaranteed benefits are general account obligations and are reported in reserves for future policy benefits and claims payable. Amounts assessed against the contract holders for mortality, administrative, and other services are reported in revenue as fee income. Changes in liabilities for minimum guarantees are reported within death, other policy benefits and change in policy reserves within the condensed consolidated income statements with the exception of changes in embedded derivatives, which are included in net gains (losses) on derivatives and investments. Separate account net investment income, net investment realized and unrealized gains and losses, and the related liability changes are offset within the same line item in the condensed consolidated income statements. At June 30, 2021 and December 31, 2020, the Company provided variable annuity contracts with guarantees, for which the net amount at risk is defined as the amount of guaranteed benefit in excess of current account value, as follows (dollars in millions): June 30, 2021 Minimum Account Value Net Amount at Weighted Average Period until Expected Annuitization Return of net deposits plus a minimum return GMDB 0-6 % $ 186,886.5 $ 2,078.7 68.5 years GMWB - Premium only 0 % 2,993.0 8.4 GMWB 0-5 %* 249.9 8.5 GMAB - Premium only 0 % — — Highest specified anniversary account value minus withdrawals post-anniversary GMDB 14,555.7 65.0 69.6 years GMWB - Highest anniversary only 3,783.6 31.6 GMWB 663.5 47.7 Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary GMDB 0-6 % 9,628.8 498.9 71.7 years GMIB 0-6 % 1,718.0 466.2 0.6 years GMWB 0-8 %* 175,081.0 4,174.3 December 31, 2020 Minimum Account Net Amount at Weighted Average Attained Age Average Period until Expected Annuitization Return of net deposits plus a minimum return GMDB 0-6 % $ 170,510.2 $ 2,339.5 67.3 years GMWB - Premium only 0 % 2,858.1 11.7 GMWB 0-5 %* 247.5 10.8 GMAB - Premium only 0 % 39.4 — Highest specified anniversary account value minus withdrawals post-anniversary GMDB 13,511.9 86.1 68.3 years GMWB - Highest anniversary only 3,459.2 41.1 GMWB 646.0 55.4 Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary GMDB 0-6 % 8,890.8 614.8 70.5 years GMIB 0-6 % 1,675.3 555.5 0.5 years GMWB 0-8 %* 159,856.9 5,655.7 * R a 5 8 10-year bonus period. The combination GMWB category also includes benefits with a defined increase in the withdrawal percentage under pre-defined non-market conditions. A ‘not-for-life’ ‘for-life’ ‘not-for-life’ ‘for-life’ ‘not-for-life’ ‘for-life’ Account balances of contracts with guarantees were invested in variable separate accounts as follows (in millions): June 30, December 31, 2021 2020 Fund type: Equity $ 147,776.6 $ 132,213.0 Bond 20,288.8 20,202.9 Balanced 42,117.4 39,626.1 Money market 1,745.0 1,861.6 Total $ 211,927.8 $ 193,903.6 GMDB liabilities reflected in the general account were as follows (in millions): Six Months Ended June 30, 2021 2020 Balance as of beginning of period $ 1,418.2 $ 1,282.9 Incurred guaranteed benefits 47.0 340.9 Paid guaranteed benefits (56.7 ) (81.4 ) Balance as of end of period $ 1,408.5 $ 1,542.4 The GMDB liability is determined by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the liability balance through the condensed consolidated income statement, within death, other policy benefits and change in policy reserves, if actual experience or other evidence suggests that earlier assumptions should be revised. The following assumptions and methodology were used to determine the GMDB liability at both June 30, 2021 and December 31, 2020 (except where otherwise noted): 1) Use of a series of stochastic investment performance scenarios, based on historical average market volatility. 2) Mean investment performance assumption of 7.15%, after investment management fees, but before external investment advisory fees and mortality and expense charges. 3) Mortality equal to 38% to 100% of the IAM 2012 basic table improved using Scale G through 2019. 4) Lapse rates varying by contract type, duration and degree the benefit is in-the-money 5) Discount rates: 7.15% on 2020 and later issues, 7.4% on 2013 through 2019 issues, 8.4% on 2012 and prior issues. Most GMWB reserves are considered to be derivatives under current accounting guidance and are recognized at fair value, as previously defined, with the change in fair value reported in net income (as net gains (losses) on derivatives and investments). The fair value of these liabilities is determined using stochastic modeling and inputs as further described in Note 5. The fair valued GMWB had a reserve liability of $2,235.7 million and $5,592.1 million at June 30, 2021 and December 31, 2020, respectively, and was reported in reserves for future policy benefits and claims payable. T $185.6 million and $181.3 million, respectively, and were reported in reserves for future policy benefits and claims payable. GMAB benefits were offered on some variable annuity plans. However, the Company no longer offers these benefits and all have expired as of June 30, 2021. The GMAB had an asset value that was immaterial to the consolidated financial statements at December 31, 2020. The direct GMIB liability is determined at each period end by estimating the expected value of the annuitization benefits in excess of the projected account balance at the date of annuitization and recognizing the excess ratably over the accumulation period based on total expected assessments. The assumptions used for calculating the direct GMIB liability are consistent with those used for calculating the GMDB liability. At June 30, 2021 and December 31, 2020, GMIB reserves before reinsurance totaled $76.4 million and $86.9 million, respectively. Other Liabilities – Insurance and Annuitization Benefits The Company has established additional reserves for life insurance business for universal life plans with secondary guarantees, interest-sensitive life plans that exhibit “profits followed by loss” patterns and account balance adjustments to tabular guaranteed cash values on one interest-sensitive life plan. Liabilities for these benefits have been established according to the methodologies described below: June 30, 2021 December 31, 2020 Benefit Type Liability Net Amount Weighted Liability Net Amount Weighted Insurance benefits * $ 935.0 $ 19,032.3 63.9 years $ 939.6 $ 19,483.0 63.5 years Account balance adjustments 136.7 N/A N/A 133.6 N/A N/A * Amounts for the universal life benefits are for the total of the plans containing any policies having projected non-zero The following assumptions and methodology were used to determine the universal life insurance benefit liability for the periods referenced in the table above: 1) Use of a series of deterministic premium persistency scenarios. 2) Other experience assumptions similar to those used in amortization of deferred acquisition costs. 3) Discount rates equal to credited interest rates, approximately 3.0% to 5.5% at both June 30, 2021 and December 31, 2020. two-tier 18.1 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt The aggregate carrying value of borrowings was as follows (in millions): June 30, December 31, 2021 2020 Surplus note s $ 249.7 $ 249.7 FHLBI bank loans 68.0 72.3 Total $ 317.7 $ 322.0 A On February 22, 2021, the Company entered into loan facilities including a $1.0 billion revolving credit facility (the “Revolving Facility”), a $1.7 billion senior unsecured delayed draw term loan facility that matures in May 2022 (the “2022 DDTL Facility”) and the $1.0 billion senior unsecured delayed draw term loan facility that matures in February 2023 (the “2023 DDTL Facility”, and together with the Revolving Facility and the 2022 DDTL Facility, the “Credit Facilities”) with a syndicate of banks. The Revolving Facility provides liquidity backstop after separation from Prudential, and the delayed draw term loans will be used for general corporate purposes, including liquidity at the holding company and capitalization of the insurance subsidiaries. On September 10, 2021, we borrowed an aggregate principal amount of $ 2.35 billion as follows: $1.6 billion under the 2022 DDTL Facility and $750 million under the 2023 DDTL Facility. Under the terms of the credit agreement for the DDTL Facilities, subject to certain exceptions, 100% of the net cash proceeds from any debt issuance, preferred equity issuance or hybrid instrument issuance by us or our subsidiaries is required to be applied (i) first to prepay the then outstanding principal amount and accrued interest thereon, if any, under the 2022 DDTL Facility (ii) thereafter, to prepay the then outstanding principal amount and accrued interest thereon, if any, under the 2023 DDTL Facility. Surplus Notes Under Michigan Insurance Law, for statutory reporting purposes, the surplus notes are not part of the legal liabilities of the Company and are considered surplus funds. Payments of interest or principal may only be made with the prior approval of the commissioner of insurance of the state of Michigan and only out of surplus earnings which the commissioner determines to be available for such payments under Michigan Insurance Law. On March 15, 1997, the Company, through its subsidiary, Jackson, issued 8.15% surplus notes in the principal amount of $250.0 million due March 15, 2027. These surplus notes were issued pursuant to Rule 144A under the Securities Act of 1933, and are unsecured and subordinated to all present and future indebtedness, policy claims and other creditor claims and may not be redeemed at the option of the Company or any holder prior to maturity. Interest is payable semi-annually on March 15th and September 15th of each year. Interest expense on the notes was $5.1 million and $10.2 million for both the three and six months ended June 30, 2021 and 2020, respectively. On November 6, 2019, the Company, through its subsidiary, Brooke Life, issued a 4.5% surplus note payable to its ultimate parent, Prudential, plc, in the principal amount of $2.0 billion due November 6, 2059. In exchange, the Company remitted a return of capital of $2.0 billion to Prudential, plc. In June 2020, Prudential transferred this note to the Company’s newly formed subsidiary, Jackson Finance, LLC (“Jackson Finance”). As settlement, the Company issued shares as further described in Note 18. As a result of the transfer, this note is considered intercompany and is eliminated in consolidation. This surplus note was issued pursuant to Rule 144A under the Securities Act of 1933, and is unsecured and subordinated to all present and future indebtedness, policy claims and other creditor claims. This note may be redeemed subject to prior approval of the Michigan Department of Insurance and Financial Services and at the mutual agreement of the Company and the holder after the thirtieth anniversary of the note’s issuance. Interest is payable semi-annually on March 15th and September 15th of each year. Interest expense on the notes was $18.5 million and $41.0 million for the three and six months ended June 30, 2020. Federal Home Loan Bank Loans The Company received loans of $50.0 million from the FHLBI under its community investment program in both 2015 and 2014, which amortize on a straight line basis over the loan term. The weighted average interest rate on these loans was 0.10% and 0.80% for the for the six months ended June 30, 2021 and 2020. The outstanding balance on these loans was $68.1 million and $72.3 million at June 30, 2021 and December 31, 2020, respectively. At June 30, 2021, the loans were collateralized by mortgage-related securities and commercial mortgage loans with a carrying value of $92.9 million. Bank Loan On November 7, 2019, the Company, issued a $350.0 million short-term note payable to Standard Chartered Bank, which was guaranteed by the Company’s ultimate parent, Prudential, plc. In exchange, the Company paid a dividend of $350.0 million to Prudential. This note accrued interest at LIBOR plus 0.20 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 6 Months Ended |
Jun. 30, 2021 | |
Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank Advances | 11. Federal Home Loan Bank Advances The Company, through its subsidiary, Jackson, entered into a short-term advance program with the FHLBI in which interest rates were either fixed or variable based on the FHLBI cost of funds or market rates. Advances of $250.0 million and $380.0 million were outstanding at June 30, 2021 and December 31, 2020, respectively, and were recorded in other liabilities. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes On March 27, 2020, H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law and included a tax provision allowing a five-year carryback of net operating losses for years 2018 through 2020. As a result of this provision, the Company recognized a tax expense of $33.0 million and a benefit of $16.3 million for the three and six months ended June 30, 2020, respectively. On June 18, 2020, the Company’s subsidiary announced the funds withheld coinsurance agreement with Athene effective June 1, 2020. As a result of the impact on forecasted taxable earnings the Company recorded a $33.0 million reduction to the impact of the CARES Act during the three months ended June 30, 2020. The Company uses the estimated annual effective tax rate (“ETR”) method in computing the interim tax provision. Certain items, including those deemed unusual, infrequent, or that cannot be reliably estimated, are treated as discrete items and excluded from the estimated annual ETR. The actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual ETR, primarily certain changes in the realizability of deferred tax assets and uncertain tax positions and are recorded in the period in which the change occurs. The estimated annual ETR is revised, as necessary, at the end of successive interim reporting periods. The Company’s effective income tax rate was 9.2% for the three months ended June 30, 2021, compared with 12.8% for the same period in 2020. The Company’s effective income tax rate was 18.2% for the six months ended June 30, 2021, compared with 24.4% for the same period in 2020. The reduction in the effective tax rate for the three and six months ended June 30, 2021 was due to the relationship of income subject to tax compared to consolidated income before taxes and the impact of the CARES Act. The effective tax rate differs from the statutory rate of 21% primarily due to the dividends received deduction and utilization of tax credits. The effective tax rate of 18.2% for the six months ended June 30, 2021 differs from the effective tax rate of 34.3% for the full year-ended December 31, 2020 due to the relationship of income subject to tax compared to consolidated income and losses before taxes, and for 2020, the impact of the CARES Act and tax true-ups related to prior years. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information The Company has three reportable segments consisting of Retail Annuities, Institutional Products, Closed Life and Annuity Block, plus its Corporate and Other segment. These segments reflect the manner by which the Company’s chief operating decision maker views and manages the business. The following is a brief description of the Company’s reportable segments. Retail Annuities The Company’s Retail Annuities segment offers a variety of retirement income and savings products through its diverse suite of products, consisting primarily of variable annuities, fixed index annuities, and fixed annuities. These products are distributed through various wirehouses, insurance brokers and independent broker-dealers, as well as through banks and financial institutions, primarily to high net worth investors and the mass and affluent markets. The Company’s variable annuities, represent an attractive option for retirees and soon-to-be add-on for investors who desire principal protection with the opportunity to participate in capped upside investment returns linked to a reference market index. The Company also provides access to guaranteed lifetime income as an add-on The financial results of the variable annuity business within the Company’s Retail Annuities segment are largely dependent on the performance of the contract holder account value, which impacts both the level of fees collected and the benefits paid to the contract holder. The financial results of the Company’s fixed annuities, including the fixed portion of its variable annuity account values and fixed index annuities, are largely dependent on the Company’s ability to earn a spread between earned investment rates on general account assets and the interest credited to contract holders. Institutional Products The Company’s Institutional Products consist of traditional GICs, funding agreements (including agreements issued in conjunction with the Company’s participation in the U.S. Federal Home Loan Bank of Indianapolis program) and medium-term note funding agreements. The Company’s GIC products are marketed to defined contribution pension and profit sharing retirement plans. Funding agreements are marketed to institutional investors, including corporate cash accounts and securities lending funds, as well as money market funds, and are issued to the FHLBI in connection with its program. The financial results of the Company’s institutional products business are primarily dependent on the Company’s ability to earn Closed Life and Annuity Blocks Although the Company historically offered traditional life insurance products, it discontinued new sales of life insurance products in 2012. The Company’s Closed Life and Annuity Blocks segment includes life insurance products offered through that point, including various protection products, such as whole life, universal life, variable universal life and term life insurance products that provide financial safety for individuals and their families. This segment distributed these products primarily through independent insurance agents; independent broker-dealers; regional broker-dealers; wirehouses; registered investment advisers; and banks, credit unions and other financial institutions, primarily to the mass market. This segment also includes acquired closed blocks consisting primarily of life insurance. The Company’s Closed Life and Annuity Blocks segment also includes group pay-out The profitability of the Company’s Closed Life and Annuity Blocks segment is largely driven by its historical ability to appropriately price its products and purchase appropriately priced blocks of business, as realized through underwriting, expense and net gains (losses) on derivatives and investments, and the ability to earn an assumed rate of return on the assets supporting that business. Corporate and Other The Company’s Corporate and Other segment primarily consists of the operations of its investment management company, VIE’s and unallocated corporate income and expenses. The Corporate and Other segment also includes certain eliminations and consolidation adjustments. Segment Performance Measurement Segment operating revenues and pretax adjusted operating earnings are non-GAAP accounting treatment under GAAP, or that are non-recurring Pretax adjusted operating earnings equals net income adjusted to eliminate the impact of the following items: • Fees attributable to guarantee benefits: fees paid in conjunction with guaranteed benefit features offered for certain of the Company’s variable annuities and fixed index annuities are set at a level intended to mitigate the cost of hedging and funding the liabilities associated with such guaranteed benefit features. The full amount of the fees attributable to guarantee benefit features have been excluded from pretax adjusted operating earnings as the related net movements in freestanding derivatives and net reserve and embedded derivative movements, as described below, have been excluded from pretax adjusted operating earnings. This presentation of earnings is intended to directly align revenue and related expenses associated with the guaranteed benefit features; • Net movement in freestanding derivatives, except earned income (periodic settlements and changes in settlement accruals) on derivatives that are hedges of investments, but do not qualify for hedge accounting treatment: changes in the fair value of freestanding derivatives used to manage the risk associated with life and annuity reserves, including those arising from the guaranteed benefit features offered for certain variable annuities and fixed index annuities. Net movements in freestanding derivatives have been excluded from pretax adjusted operating earnings because the market value of these derivatives may vary significantly from period to period as a result of near-term market conditions and therefore are not directly comparable or reflective of the underlying profitability of the business; • Net reserve and embedded derivative movements: changes in the valuation of certain life and annuity reserves, a portion of which are accounted for as embedded derivative instruments and which primarily comprise of variable and fixed index annuity reserves, including those guaranteed benefit features offered for certain of the Company’s variable annuities. Net reserve and embedded derivative movements have been excluded from pretax adjusted operating earnings because the carrying values of these derivatives may vary significantly from period to period as the result of near-term market conditions and policyholder behavior-related inputs and therefore are not directly comparable or reflective of the underlying profitability of the business. Movements in reserves attributable to the current period claims and benefit payments in excess of a customer’s account value on these policies are also excluded from pretax adjusted operating earnings as these benefit payments are affected by near-term market conditions and policyholder behavior-related inputs and therefore may vary significantly from period to period; • Net Realized Investment Gains and Losses including change in fair value of funds withheld embedded derivative: Realized investment gains and losses associated with the periodic sales or disposals of securities, excluding those held within our trading portfolio, as well as impairments of securities, after adjustment for the non-credit • DAC and DSI impact: amortization of deferred acquisition costs and deferred sales inducements associated with the items excluded from pretax adjusted operating earnings; • Net investment income on funds withheld assets: Includes net investment income on funds withheld assets related to the reinsurance transaction; • Other items: one-time non-recurring • Income taxes. As detailed above, the fees attributed to guaranteed benefits, the associated movements in optional guaranteed benefit liabilities, and related claims and benefit payments are excluded from pretax adjusted operating earnings, as the Company believes this approach appropriately removes the impact to both revenue and expenses associated with the guaranteed benefit features that are offered for certain variable annuities and fixed index annuities. Set forth in the tables below is certain information with respect to the Company’s segments, as described above (in millions): Three Months Ended June 30, 2021 Retail Closed Life Institutional Corporate Intersegment Total Operating Revenues Fee income $ 1,050.0 $ 122.8 $ — $ 33.3 $ (14.5 ) $ 1,191.6 Premium — 33.8 — — — 33.8 Net investment income 143.6 204.9 56.7 (8.5 ) 48.4 445.1 Income on operating derivatives 14.6 17.5 — 8.1 — 40.2 Other income 12.0 12.0 — 6.4 — 30.4 Total Operating Revenues 1,220.2 391.0 56.7 39.3 33.9 1,741.1 Operating Benefits and Expenses Death, other policy benefits and change in policy reserves, net of deferrals 11.5 191.5 — — — 203.0 Interest credited on other contract holder funds, net of deferrals 66.3 103.0 48.2 — — 217.5 Interest expense 5.6 — 1.0 — — 6.6 Operating costs and other expenses, net of deferrals 484.6 37.9 1.2 50.5 — 574.2 Deferred acquisition and sales inducements amortization (31.0 ) 2.2 — — 7.8 (21.0 ) Total Operating Benefits and Expenses 537.0 334.6 50.4 50.5 7.8 980.3 Pretax Adjusted Operating Earnings $ 683.2 $ 56.4 $ 6.3 $ (11.2 ) $ 26.1 $ 760.8 Three Months Ended June 30, 2020 Retail Closed Life Institutional Corporate Intersegment Total Operating Revenues Fee income $ 792.2 $ 128.5 $ — $ 43.0 $ (21.5 ) $ 942.2 Premium — 24.0 — — — 24.0 Net investment income 230.1 105.8 84.5 (61.0 ) 42.8 402.2 Income on operating derivatives 14.7 10.5 — 5.3 — 30.5 Other income 4.4 12.3 — 1.2 — 17.9 Total Operating Revenues 1,041.4 281.1 84.5 (11.5 ) 21.3 1,416.8 Operating Benefits and Expenses Death, other policy benefits and change in policy reserves, net of deferrals 9.5 256.8 — — — 266.3 Interest credited on other contract holder funds, net of deferrals 173.8 106.3 62.8 — — 342.9 Interest expense 7.0 — 4.2 20.2 — 31.4 Operating costs and other expenses, net of deferrals 406.2 36.6 1.3 54.1 — 498.2 Deferred acquisition and sales inducements amortization (241.3 ) 4.0 — — 5.9 (231.4 ) Total Operating Benefits and Expenses 355.2 403.7 68.3 74.3 5.9 907.4 Pretax Adjusted Operating Earnings $ 686.2 $ (122.6 ) $ 16.2 $ (85.8 ) $ 15.4 $ 509.4 Six Months Ended June 30, 2021 Retail Closed Life Institutional Corporate Intersegment Total Operating Revenues Fee income $ 2,045.7 $ 248.0 $ — $ 68.9 $ (29.7 ) $ 2,332.9 Premium — 71.3 — — — 71.3 Net investment income 348.7 461.4 120.4 (44.6 ) 97.1 983.0 Income on operating derivatives 28.6 37.7 — 12.4 — 78.7 Other income 23.6 21.7 — 8.3 — 53.6 Total Operating Revenues 2,446.6 840.1 120.4 45.0 67.4 3,519.5 Operating Benefits and Expenses Death, other policy benefits and change in policy reserves, net of deferrals 17.5 412.7 — — — 430.2 Interest credited on other contract holder funds, net of deferrals 133.6 206.6 99.8 — — 440.0 Interest expense 10.8 — 1.9 — — 12.7 Operating costs and other expenses, net of deferrals 960.0 78.6 2.5 106.4 — 1,147.5 Deferred acquisition and sales inducements amortization 73.2 7.0 — — 14.9 95.1 Total Operating Benefits and Expenses 1,195.1 704.9 104.2 106.4 14.9 2,125.5 Pretax Adjusted Operating Earnings $ 1,251.5 $ 135.2 $ 16.2 $ (61.4 ) $ 52.5 $ 1,394.0 Six Months Ended June 30, 2020 Retail Closed Life Institutional Corporate Intersegment Total Operating Revenues Fee income $ 1,649.7 $ 258.5 $ — $ 87.1 $ (45.0 ) $ 1,950.3 Premium — 93.9 — — — 93.9 Net investment income 626.8 298.3 196.8 (77.4 ) 77.2 1,121.7 Income on operating derivatives 25.7 17.8 — 8.5 — 52.0 Other income 4.5 5.7 1.6 2.3 — 14.1 Total Operating Revenues 2,306.7 674.2 198.4 20.5 32.2 3,232.0 Operating Benefits and Expenses Death, other policy benefits and change in policy reserves, net of deferrals 17.8 405.5 — — — 423.3 Interest credited on other contract holder funds, net of deferrals 398.0 214.6 136.4 — — 749.0 Interest expense 15.8 — 12.8 44.6 — 73.2 Operating costs and other expenses, net of deferrals 849.3 76.3 2.6 92.8 — 1,021.0 Deferred acquisition and sales inducements amortization 163.8 7.8 — — 9.1 180.7 Total Operating Benefits and Expenses 1,444.7 704.2 151.8 137.4 9.1 2,447.2 Pretax Adjusted Operating Earnings $ 862.0 $ (30.0 ) $ 46.6 $ (116.9 ) $ 23.1 $ 784.8 The following table summarizes the reconciling items from the non-GAAP Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Total operating revenues $ 1,741.1 $ 1,416.8 $ 3,519.5 $ 3,232.0 Fees attributed to variable annuity benefit reserves 701.0 617.7 1,372.6 1,224.6 Net gains (losses) on derivatives and investments (2,560.9 ) (4,401.9 ) 106.2 (2,065.1 ) Net investment income related to noncontrolling interests 56.1 (53.7 ) 124.4 (59.5 ) Consolidated investments 0.8 (56.0 ) 31.3 (66.6 ) Net investment income on funds withheld assets 293.8 144.2 584.9 228.9 Total revenues $ 231.9 $ (2,332.9 ) $ 5,738.9 $ 2,494.3 The following table summarizes the reconciling items from the non-GAAP Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Total operating benefits and expenses $ 980.3 $ 907.4 $ 2,125.5 $ 2,447.2 Benefits attributed to variable annuity benefit reserves 28.5 50.3 66.4 89.9 Amortization of DAC and DSI related to non-operating (242.7 ) (1,263.5 ) 453.1 (631.7 ) SOP 03-1 (21.2 ) (457.5 ) (3.6 ) 334.1 Athene reinsurance transaction — 2,046.7 — 2,046.7 Other items 25.4 3.7 50.5 4.0 Total benefits and expenses $ 770.3 $ 1,287.1 $ 2,691.9 $ 4,290.2 The following table summarizes the reconciling items, net of deferred acquisition costs and deferred sales inducements, from the non-GAAP Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Pretax adjusted operating earnings $ 760.8 $ 509.4 $ 1,394.0 $ 784.8 Non-operating Fees attributable to guarantee benefit reserves 701.0 617.7 1,372.6 1,224.6 Net movement in freestanding derivatives (442.2 ) (9,340.3 ) (3,472.9 ) 2,717.9 Net reserve and embedded derivative movements (1,373.7 ) 3,715.9 3,218.5 (6,536.7 ) DAC and DSI impact 242.8 1,264.6 (453.1 ) 631.8 Net realized investment gains (losses) including change in fair value of funds withheld embedded derivative (752.4 ) 1,629.8 297.8 1,329.9 Loss on funds withheld reinsurance transaction — (2,046.7 ) — (2,046.7 ) Net investment income on funds withheld assets 293.8 144.2 584.9 228.9 Other items (24.6 ) (60.9 ) (19.2 ) (70.9 ) Pretax income (loss) attributable to Jackson Financial Inc. (594.5 ) (3,566.3 ) 2,922.6 (1,736.4 ) Income tax expense (benefit) (54.5 ) (457.0 ) 531.1 (423.8 ) Net income (loss) attributable to Jackson Financial, Inc. $ (540.0 ) $ (3,109.3 ) $ 2,391.5 $ (1,312.6 ) |
Commitments, Contingencies, and
Commitments, Contingencies, and Guarantees | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Guarantees | 14. Commitments, Contingencies, and Guarantees The Company and its subsidiaries are involved in litigation arising in the ordinary course of business. It is the opinion of management that the ultimate disposition of such litigation will not have a material adverse effect on the Company’s financial condition. Jackson has been named in civil litigation proceedings, which appear to be substantially similar to other class action litigation brought against many life insurers including allegations of misconduct in the sale of insurance products. The Company accrues for legal contingencies once the contingency is deemed to be probable and reasonably estimable. At June 30, 2021 and December 31, 2020, the Company recorded accruals totaling $6.4 million and $13.1 million, respectively. At June 30, 2021, the Company had unfunded commitments related to its investments in limited partnerships and limited liability companies totaling $1,451.5 million. At June 30, 2021, unfunded commitments related to fixed-rate commercial mortgage loans and other debt securities totaled $1,335.6 million. |
Other Related Party Transaction
Other Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Other Related Party Transactions | 15. Other Related Party Transactions The Company’s investment management operation, PPM, provides investment services to other non-consolidated The Company, through its PGDS subsidiary, provides various information security and technology services to certain non-consolidated As a result of the previously mentioned investment management agreement between Jackson and Apollo, an affiliate of Athene, the Company pays Apollo management fees which are calculated and paid monthly in arrears. The Company incurred $25.8 million and $4.1 million during the three months ended June 30, 2021 and 2020, and $53.9 million and $4.1 million during the six months ended June 30, 2021 and 2020, associated with these services. |
Operating Costs and Other Expen
Operating Costs and Other Expenses | 6 Months Ended |
Jun. 30, 2021 | |
Operating Costs And Other Expenses [Abstract] | |
Operating Costs And Other Expenses | 16. Operating Costs and Other Expenses The following table is a summary of the Company’s operating costs and other expenses (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Asset-based commission expenses $ 281.1 $ 213.5 $ 548.2 $ 425.5 Other commission expenses 263.0 206.0 529.5 483.4 Athene ceding commission (1) — (1,231.1 ) — (1,231.1 ) General and administrative expenses 256.5 227.6 520.6 466.4 Deferral of acquisition costs (201.0 ) (145.2 ) (400.4 ) (350.3 ) Total operating costs and other expenses $ 599.6 $ (729.2 ) $ 1,197.9 $ (206.1 ) (1) See Note 7 for further information |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2021 | |
AOCI Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income | 17. Accumulated Other Comprehensive Income The following table represents changes in the balance of accumulated other comprehensive income (“ Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Balance, beginning of period (1) $ 1,442.5 $ 1,963.0 $ 3,820.6 $ 2,396.7 OCI before reclassifications 1,062.8 1,988.2 (1,238.6 ) 1,596.7 Amounts reclassified from AOCI (115.1 ) (521.8 ) (191.8 ) (564.0 ) Balance, end of period (1) $ 2,390.2 $ 3,429.4 $ 2,390.2 $ 3,429.4 (1) Includes $632.1 million, $1,212.8 million, and $1,107.9 million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of June 30, 2021, December 31, 2020, and June 30, 2020, respectively. The following table represents amounts reclassified out of AOCI (in millions): AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Consolidated Income Statement Three Months Ended June 30, 2021 2020 Net unrealized investment gain (loss): Net realized gain (loss) on investments $ (147.5 ) $ (663.5 ) Net gains (losses) on derivatives and investments Other impaired securities — 3.0 Net gains (losses) on derivatives and investments Net unrealized gain (loss), before income taxes (147.5 ) (660.5 ) Income tax expense (benefit) (32.4 ) (138.7 ) Reclassifications, net of income taxes $ (115.1 ) $ (521.8 ) AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Consolidated Income Statement Six Months Ended June 30, 2021 2020 Net unrealized investment gain (loss): Net realized gain (loss) on investments $ (244.6 ) $ (721.4 ) Net gains (losses) on derivatives and investments Other impaired securities — 7.5 Net gains (losses) on derivatives and investments Net unrealized gain (loss), before income taxes (244.6 ) (713.9 ) Income tax expense (benefit) (52.8 ) (149.9 ) Reclassifications, net of income taxes $ (191.8 ) $ (564.0 ) |
Equity
Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Equity | 18. Equity Common Stock The Company has two classes of common stock: Class A common stock and Class B common stock. Both classes have a par value of $0.01 per share. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to one-tenth of one vote per share. Except for voting rights, the Company’s Class A common stock and Class B common stock have the same dividend rights, are equal in all respects, and are otherwise treated as if they were one class of shares. At both June 30, 2021 and December 31, 2020, the Company was authorized to issue up to 900 million shares of Class A stock and 100 million shares of Class B stock. On September 9, 2021, the Company effected a 104,960.3836276-for-1 paid-in information presented herein have been retroactively adjusted to reflect the stock split. At both June 30, 2021 and December 31, 2020, there were 93,099,859 shares of Class A common stock and 1,364,484 shares of Class B common stock issued and outstanding, as all share information presented herein has been retroactively adjusted to reflect the stock split. In June 2020, the Company formed a new subsidiary, Jackson Finance, LLC (“Jackson Finance”), a Michigan limited liability company. Subsequently, Prudential and Jackson Finance entered into an Assignment and Assumption Agreement, whereby Prudential assigned to Jackson Finance all of its right, title, and interest in a $2.0 billion surplus note issued by Brooke Life, an affiliate of the Company, to Prudential in exchange for Jackson Finance giving an undertaking to Prudential to pay the $2.0 billion principal plus accrued interest (“JF Receivable”). Subsequently, the Company issued 39,255,183 shares of Class A common stock to a Prudential affiliate, adjusted for the effect of the stock split, pursuant to a share subscription and accepted the JF Receivable in settlement of the share subscription, ultimately resulting in a cashless transaction in which the surplus note was contributed to Jackson Finance. On June 24, 2020, the Company entered into a Supplemental Agreement in respect to its outstanding $350.0 million loan with Standard Chartered Bank, pursuant to which the Company transferred the loan to its ultimate parent, Prudential, the former guarantor of the loan. The Company established a payable to Prudential for the $350.0 million, plus all outstanding interest due, and Prudential, in turn, set up a receivable, which was contributed to the Company’s parent. Subsequently, the Company issued 6,927,385 shares of Class A common stock to Prudential, adjusted for the effect of the stock split, pursuant to a subscription agreement and accepted the receivable in settlement of the share subscription under a deed of assignment and settlement, ultimately resulting in a cashless transaction. On June 18, 2020, the Company entered into an investment agreement with Athene Life Re Ltd., pursuant to which Athene would invest $500.0 million of capital into the Company in return for a 9.9 percent voting interest corresponding to a 11.1 percent economic interest in the Company. The agreement was completed on July 17, 2020 and the Company issued 9,131,553 shares of Class A common stock and 1,364,484 shares of Class B common stock to Athene, adjusted for the effect of the stock split. Subsequently, in August 2020, the Company ultimately made a $500.0 million capital contribution to its insurance company subsidiary, Jackson. Effective July 17, 2020, the 83,968,306 split-adjusted shares of Class A common stock issued to the Company’s parent, Prudential, with a par value of $125.00 per share, were reclassified and converted into Class A common stock with a par value of $0.01 per share. Dividends to Shareholders There were no dividends declared or paid to the Company’s stockholders for three and six months ended June 30, 2021 and 2020, respectively. Incentive Stock Plan In April 2021, the Company’s board of directors adopted, and the Company’s stockholders approved, the Jackson Financial Inc. 2021 Omnibus Incentive Plan (the “Incentive Plan”). This Incentive Plan became effective following the completion of the Demerger, and will replace the Prudential PLTIP and Retention Share Plans. Cumulative Effect of Changes in Accounting Principles In 2020, the Company adopted ASU No. 2016-13 pre-tax |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 19. Earnings Per Share Basic earnings per share is calculated by dividing net income (loss) attributable to Jackson Financial Inc. shareholders by the weighted-average number of Class A and Class B common shares outstanding during the period. Diluted earnings per share would be calculated by dividing the net income (loss) attributable to Jackson Financial Inc. shareholders, by the weighted-average number of shares of Class A common stock and Class B common stock outstanding for the period, plus shares representing the dilutive effect of share-based awards. For the three and six months ended June 30, 2021 and 2020, the Company did not have any share-based plans involving the issuance of the Company’s equity and, therefore, no impact to the diluted earnings per share calculation. Following the completion of the Demerger, the Company expects to have dilutive shares as a result of the conversion of existing Prudential share-based incentive plans and issuance of new awards as described above. The following table sets forth the calculation of earnings per common share: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions, except share and per share data) Net income (loss) attributable to Jackson Financial Inc. $ (540.0 ) $ (3,109.3 ) $ 2,391.5 $ (1,312.6 ) Weighted average shares of common stock outstanding - basic 94,464,343 44,433,998 94,464,343 41,336,994 Weighted average shares of common stock outstanding - diluted 94,464,343 44,433,998 94,464,343 41,336,994 Earnings per share—common stock Basic $ (5.72 ) $ (69.98 ) $ 25.32 $ (31.75 ) Diluted $ (5.72 ) $ (69.98 ) $ 25.32 $ (31.75 ) |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but is not required for interim reporting purposes, has been condensed or omitted. The information contained in the Notes to Consolidated Financial Statements for the year ended December 31, 2020 in the Company’s Form 10, should be read in connection with the reading of these interim unaudited condensed consolidated financial statements. Certain accounting policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in the Company’s Notes to Consolidated Financial Statements for the year ended December 31, 2020 in the Company’s Form 10. In the opinion of management, these financial statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three and six months ended June 30, 2021, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021. All material inter-company accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions about future events that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes. Significant estimates or assumptions, as further discussed in the notes, include: 1) Valuation of investments and derivative instruments, including fair values of securities deemed to be in an illiquid market and the determination of when an impairment is necessary; 2) Assessments as to whether certain entities are variable interest entities, the existence of reconsideration events and the determination of which party, if any, should consolidate the entity; 3) Assumptions impacting estimated future gross profits, including policyholder behavior, mortality rates, expenses, projected hedging costs, investment returns and policy crediting rates, used in the calculation of amortization of deferred acquisition costs and deferred sales inducements; 4) Assumptions used in calculating policy reserves and liabilities, including policyholder behavior, mortality rates, expenses, investment returns and policy crediting rates; 5) Assumptions as to future earnings levels being sufficient to realize deferred tax benefits; 6) Estimates related to expectations of credit losses on certain financial assets and off balance sheet exposures; 7) Assumptions and estimates associated with the Company’s tax positions, including an estimate of the dividends received deduction, which impact the amount of recognized tax benefits recorded by the Company; 8) Value of guaranteed benefits; and, 9) Value of business acquired, its recoverability and amortization. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors deemed appropriate. As facts and circumstances dictate, these estimates and assumptions may be adjusted. Since future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates, including those resulting from continuing changes in the economic environment, will be reflected in the consolidated financial statements in the periods the estimates are changed. |
Other | Other On August 6, 2021, the registration statement on Form 10 of the Company’s Class A common stock, par value per share, filed with the U.S. Securities and Exchange Commission (the “SEC”), became effective under the Securities Exchange Act of 1934, as amended. We refer to that effective Form 10 registration as the “Form 10.” The Demerger transaction described in the Form 10 was consummated on September 13, 2021. Post-demerger, Prudential retained a percent remaining interest in the Company. On September 9, 2021, the Company effected a 1 04,9 60.3836276-for-1 paid-in split. On June in-force In addition, we entered into an investment agreement with Athene Life Re Ltd., pursuant to which Athene would invest $500.0 million of capital into the Company in return for a 9.9% voting interest corresponding to a 11.1 % economic interest in the Company. The transaction was completed on July 17, 2020. In August 2020, the Company made a $500.0 We continue to closely monitor developments related to the COVID-19 COVID-19 COVID-19 |
Changes in Accounting Principles – Adopted in Current Year | Changes in Accounting Principles – Adopted in Current Year In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, In October 2020, the FASB issued ASU No. 2020-08, 310-20, 2020-08, On December 18, 2019, FASB issued ASU No. 2019-12, step-up 2019-12, |
Changes in Accounting Principles – Issued but Not Yet Adopted | Changes in Accounting Principles – Issued but Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, 2018-12 No. 2018-12 the initial balance sheet impact upon adoption, the Company also expects a change in the pattern of future profit emergence. |
Subsequent Events | Subsequent Events The Company has evaluated events through September 20, 2021, which is the date the condensed consolidated financial statements were available to be issued. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | |
Schedule of Composition of Fair Value of Debt Securities Classified by Rating | Investment Rating Percent of Total AAA 16.8 % AA 9.0 % A 29.1 % BBB 39.2 % Investment grade 94.1 % BB 3.3 % B and below 2.6 % Below investment grade 5.9 % Total debt securities 100.0 % |
Schedule of Debt Securities Available for Sale | At June 30, 2021 and December 31, 2020, the amortized cost, gross unrealized gains and losses, fair value, and allowance for credit loss (“ACL”) of debt securities, including trading securities and securities carried at fair value under the fair value option, were as follows (in millions): June 30, 2021 Amortized (1) Allowance Credit Loss Gross Gross Fair Value U.S. government securities $ 4,783.9 $ — $ 88.0 $ 403.4 $ 4,468.5 Other government securities 1,510.5 — 152.3 13.8 1,649.0 Public utilities 5,892.8 — 770.0 16.3 6,646.5 Corporate securities 29,717.1 — 2,307.3 179.9 31,844.5 Residential mortgage-backed 770.5 0.8 66.6 1.7 834.6 Commercial mortgage-backed 2,702.2 — 171.0 2.2 2,871.0 Other asset-backed securities 5,624.4 6.0 106.4 18.1 5,706.7 Total debt securities $ 51,001.4 $ 6.8 $ 3,661.6 $ 635.4 $ 54,020.8 December 31, 2020 Amortized (1) Allowance Credit Loss Gross Gross Fair Value U.S. government securities $ 5,078.9 $ — $ 162.0 $ 114.9 $ 5,126.0 Other government securities 1,497.1 — 200.6 0.8 1,696.9 Public utilities 6,270.4 — 1,029.2 1.9 7,297.7 Corporate securities 33,180.3 — 3,301.6 41.9 36,440.0 Residential mortgage-backed 911.7 — 74.4 1.2 984.9 Commercial mortgage-backed 3,077.6 — 248.5 3.5 3,322.6 Other asset-backed securities 5,507.4 13.6 100.2 4.7 5,589.3 Total debt securities $ 55,523.4 $ 13.6 $ 5,116.5 $ 168.9 $ 60,457.4 (1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities. |
Debt Securities Available for Sale by Contractual Maturity | The amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value of debt securities at June 30, 2021, by contractual maturity, are shown below (in millions). Actual maturities may differ from contractual maturities where securities can be called or prepaid with or without early redemption penalties. Amortized (1) Cost Allowance Credit Loss Gross Gross Fair Value Due in 1 year or less $ 1,032.4 $ — $ 19.1 $ — $ 1,051.5 Due after 1 year through 5 years 8,414.3 — 542.2 18.4 8,938.1 Due after 5 years through 10 years 16,976.7 — 1,111.9 68.9 18,019.7 Due after 10 years through 20 years 5,810.1 — 946.3 169.9 6,586.5 Due after 20 years 9,670.8 — 698.1 356.2 10,012.7 Residential mortgage-backed 770.5 0.8 66.6 1.7 834.6 Commercial mortgage-backed 2,702.2 — 171.0 2.2 2,871.0 Other asset-backed securities 5,624.4 6.0 106.4 18.1 5,706.7 Total $ 51,001.4 $ 6.8 $ 3,661.6 $ 635.4 $ 54,020.8 (1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities. |
Schedule of Available for Sale Securities Unrealized Continuous Loss Position | The following table summarizes the number of securities, fair value and the gross unrealized losses of debt securities, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position (dollars in millions): June 30, 2021 December 31, 2020 Less than 12 months Less than 12 months Gross Fair Value # of Gross Fair Value # of U.S. government securities $ 403.4 $ 3,407.2 20 $ 114.9 $ 3,944.7 7 Other government securities 13.8 231.0 25 0.8 89.4 7 Public utilities 16.3 436.8 56 1.8 146.5 8 Corporate securities 173.7 4,499.6 438 41.5 1,391.1 161 Residential mortgage-backed 1.6 137.0 78 1.2 35.4 28 Commercial mortgage-backed 2.2 162.5 15 3.2 151.9 13 Other asset-backed securities 10.4 1,150.2 157 1.4 796.4 91 Total temporarily impaired securities $ 621.4 $ 10,024.3 789 $ 164.8 $ 6,555.4 315 12 months or longer 12 months or longer Gross Fair Value # of Gross Fair Value # of U.S. government securities $ — $ — — $ — $ — — Other government securities — — — — — — Public utilities — 0.5 2 — — — Corporate securities 6.2 164.9 23 0.5 2.9 3 Residential mortgage-backed 0.1 3.0 11 — 1.8 4 Commercial mortgage-backed — 19.9 2 0.3 9.7 1 Other asset-backed securities 7.7 19.3 4 3.3 29.8 4 Total temporarily impaired securities $ 14.0 $ 207.6 42 $ 4.1 $ 44.2 12 Total Total Gross Fair Value # of Gross Fair Value # of U.S. government securities $ 403.4 $ 3,407.2 20 $ 114.9 $ 3,944.7 7 Other government securities 13.8 231.0 25 0.8 89.4 7 Public utilities 16.3 437.3 58 1.8 146.5 8 Corporate securities (1) 179.9 4,664.5 453 42.0 1,394.0 164 Residential mortgage-backed 1.7 140.0 89 1.2 37.2 32 Commercial mortgage-backed 2.2 182.4 16 3.5 161.6 14 Other asset-backed securities 18.1 1,169.5 161 4.7 826.2 95 Total temporarily impaired securities $ 635.4 $ 10,231.9 822 $ 168.9 $ 6,599.6 327 (1) Certain corporate securities contain multiple lots and fit the criteria of both aging groups. |
Schedule of Allowance For Credit Losses of Debt Securities Available for Sale | The rollforward of the allowance for credit loss for available for sale securities by sector is as follows (in millions): Three Months Ended June 30, 2021 US government securities Other Public utilities Corporate Residential Commercial Other asset- Total Balance at April 1, 2021 $ — $ — $ — $ — $ 0.7 $ — $ 4.2 $ 4.9 Additions for which credit loss was not previously recorded — — — — 0.5 — — 0.5 Changes for securities with previously recorded credit loss — — — — (0.4 ) — 1.8 1.4 Additions for purchases of PCD debt securities (1) — — — — — — — — Reductions from charge-offs — — — — — — — — Reductions for securities disposed — — — — — — — — Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — — Balance at June 30, 2021 (2) $ — $ — $ — $ — $ 0.8 $ — $ 6.0 $ 6.8 Three Months Ended June 30, 2020 US government securities Other Public utilities Corporate Residential Commercial Other asset- Total Balance at April 1, 2020 $ — $ — $ — $ — $ — $ — $ — $ — Additions for which credit loss was not previously recorded — — — — 0.3 — 17.2 17.5 Changes for securities with previously recorded credit loss — — — — — — — — Additions for purchases of PCD debt securities (1) — — — — — — — — Reductions from charge-offs — — — — — — — — Reductions for securities disposed — — — — — — — — Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — — Balance at June 30, 2020 (2) $ — $ — $ — $ — $ 0.3 $ — $ 17.2 $ 17.5 Six Months Ended June 30, 2021 US government securities Other Public utilities Corporate Residential Commercial Other asset- securities Total Balance at January 1, 2021 $ — $ — $ — $ — $ — $ — $ 13.6 $ 13.6 Additions for which credit loss was not previously recorded — — — — 1.2 — — 1.2 Changes for securities with previously recorded credit loss — — — — (0.4 ) — (7.6 ) (8.0 ) Additions for purchases of PCD debt securities (1) — — — — — — — — Reductions from charge-offs — — — — — — — — Reductions for securities disposed — — — — — — — — Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — — Balance at June 30, 2021 (2) $ — $ — $ — $ — $ 0.8 $ — $ 6.0 $ 6.8 Six Months Ended June 30, 2020 US government securities Other Public utilities Corporate Residential Commercial Other asset- Total Balance at January 1, 2020 $ — $ — $ — $ — $ — $ — $ — $ — Additions for which credit loss was not previously recorded — — — — 0.3 — 17.2 17.5 Changes for securities with previously recorded credit loss — — — — — — — — Additions for purchases of PCD debt securities (1) — — — — — — — — Reductions from charge-offs — — — — — — — — Reductions for securities disposed — — — — — — — — Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — — Balance at June 30, 2020 (2) $ — $ — $ — $ — $ 0.3 $ — $ 17.2 $ 17.5 (1) R e (2) Accrued interest receivable on debt securities totaled $397.2 million and $454.9 million as of June 30, 2021 and 2020, respectively, and was excluded from the estimate of credit losses for the three and six months ended June 30, 2021 and 2020. |
Schedule of Sources of Investment Income | The sources of income related to funds withheld under reinsurance treaties reported in net investment income in the consolidated income statements were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Debt securities $ 194.4 $ 67.7 $ 397.5 $ 71.9 Equity securities 3.5 — 2.4 — Mortgage loans 43.4 10.5 78.0 10.5 Policy loans 80.6 74.0 161.7 154.5 Limited partnerships (2.1 ) — 0.6 — Other investment income — 0.1 0.2 0.1 Total investment income on funds withheld assets 319.8 152.3 640.4 237.0 Other investment expenses on funds withheld assets (1) (26.0 ) (8.1 ) (55.5 ) (8.1 ) Total net investment income on funds withheld reinsurance treaties $ 293.8 $ 144.2 $ 584.9 $ 228.9 (1) Includes management fees. |
Summary of Derivative Instruments Gain Loss in Statement of Financial Performance and Investments | The following table summarizes net gains (losses) on derivatives and investments (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Available-for-sale Realized gains on sale $ 95.7 $ 358.3 $ 120.8 $ 420.0 Realized losses on sale (51.7 ) (57.7 ) (57.7 ) (183.7 ) Credit loss income (expense) (1.4 ) 0.4 7.2 (17.1 ) Gross impairments — (1.0 ) — (26.4 ) Credit loss income (expense) on mortgage loans (10.1 ) 14.6 48.4 (33.9 ) Other (1) (17.5 ) (48.8 ) 48.8 2.3 Net gains (losses) excluding derivatives and funds withheld assets 15.0 265.8 167.5 161.2 Net gains (losses) on derivative instruments (see Note 4) (1,768.3 ) (5,890.5 ) (112.9 ) (3,342.8 ) Net gains (losses) on funds withheld reinsurance treaties (see Note 7) (767.4 ) 1,253.4 130.3 1,168.7 Total net gains (losses) on derivatives and investments $ (2,520.7 ) $ (4,371.3 ) $ 184.9 $ (2,012.9 ) (1) Includes the foreign currency gain or loss related to foreign denominated trust instruments supporting funding agreements. |
Summary of financing receivable, Allowance for credit loss | The following table provides a summary of the allowance for credit losses in the Company’s mortgage loan portfolios (in millions): Three Months Ended June 30, 2021 Apartment Hotel Office Retail Warehouse Residential (2) Total Balance at April 1, 2021 $ 26.7 $ 22.1 $ 16.3 $ 15.0 $ 13.3 $ 20.3 $ 113.7 Charge offs, net of recoveries — — — — — — — Additions from purchase of PCD — mortgage loans — — — — — — — Provision — 10.9 3.4 7.7 (1.5 ) 1.1 21.6 Balance at June 30, 2021 (1) $ 26.7 $ 33.0 $ 19.7 $ 22.7 $ 11.8 $ 21.4 $ 135.3 Three Months Ended June 30, 2020 Apartment Hotel Office Retail Warehouse Total Balance at April 1, 2020 $ 51.2 $ 8.0 $ 14.7 $ 21.9 $ 23.6 $ 119.4 Cumulative effect of change in accounting principle — Charge offs, net of recoveries — — — — — — Additions from purchase of PCD mortgage loans — — — — — — Provision (17.1 ) 3.4 7.3 (3.9 ) (4.3 ) (14.6 ) Balance at June 30, 2020 (1) $ 34.1 $ 11.4 $ 22.0 $ 18.0 $ 19.3 $ 104.8 Six Months Ended June 30, 2021 Apartment Hotel Office Retail Warehouse Residential (2) Total Balance at January 1, 2021 $ 57.9 $ 33.9 $ 24.9 $ 24.2 $ 23.8 $ 14.5 $ 179.2 Charge offs, net of recoveries — — — — — — — Additions from purchase of PCD — mortgage loans — — — — — — — Provision (31.2 ) (0.9 ) (5.2 ) (1.5 ) (12.0 ) 6.9 (43.9 ) Balance at June 30, 2021 (1) $ 26.7 $ 33.0 $ 19.7 $ 22.7 $ 11.8 $ 21.4 $ 135.3 Six Months Ended June 30, 2020 Apartment Hotel Office Retail Warehouse Total Balance at January 1, 2020 $ 3.7 $ 0.8 $ 1.1 $ 2.0 $ 1.3 $ 8.9 Cumulative effect of change in accounting principle 23.6 5.0 7.8 10.3 15.3 62.0 Charge offs, net of recoveries — — — — — — Additions from purchase of PCD mortgage loans — — — — — — Provision 6.8 5.6 13.1 5.7 2.7 33.9 Balance at June 30, 2020 (1) $ 34.1 $ 11.4 $ 22.0 $ 18.0 $ 19.3 $ 104.8 (1) Accrued interest receivable totaled $39.8 million and $29.9 million as of June 30, 2021 and 2020, respectively, and was excluded from the estimate of credit losses. (2) During the three and six months ended June 30, 2021, $136 thousand of accrued interest was written off relating to loans that were greater than 90 |
Summary Of credit quality and vintage year of commercial mortgage loans | The following tables provide information about the credit quality and vintage year of commercial mortgage loans (in millions): June 30, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Total % of Total Loan to value ratios: Less than 70% $ 1,148.2 $ 1,451.3 $ 1,441.0 $ 1,585.7 $ 1,505.2 $ 2,872.6 $ 4.1 $ 10,008.1 90 % 70% - 85.0 133.1 236.7 127.0 100.2 160.9 — 842.9 8 % 80% - — — 63.2 4.8 47.5 26.4 — 141.9 1 % Greater than 100% 69.4 — 15.0 — — — — 84.4 1 % Total $ 1,302.6 $ 1,584.4 $ 1,755.9 $ 1,717.5 $ 1,652.9 $ 3,059.9 $ 4.1 $ 11,077.3 100 % Debt service coverage ratios: Greater than 1.20x $ 796.6 $ 1,095.5 $ 1,569.5 $ 1,400.4 $ 1,537.5 $ 2,763.3 $ 4.1 $ 9,166.9 83 % 1.00x - 506.0 361.1 56.0 95.1 11.1 96.3 — 1,125.6 10 % Less than 1.00x — 127.8 130.4 222.0 104.3 200.3 — 784.8 7 % Total $ 1,302.6 $ 1,584.4 $ 1,755.9 $ 1,717.5 $ 1,652.9 $ 3,059.9 $ 4.1 $ 11,077.3 100 % December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Total % of Total Loan to value ratios: Less than 70% $ 1,346.5 $ 1,315.0 $ 1,752.8 $ 1,678.7 $ 1,320.5 $ 1,846.3 $ 4.0 $ 9,263.8 90 % 70% - 66.2 348.1 127.9 80.0 94.3 128.5 — 845.0 8 % 80% - — 91.7 4.9 46.8 — 26.7 — 170.1 2 % Greater than 100% — — — — — — — — — % Total 1,412.7 1,754.8 1,885.6 1,805.5 1,414.8 2,001.5 4 10,278.9 1.00 Debt service coverage ratios: Greater than 1.20x $ 1,078.4 $ 1,601.7 $ 1,738.0 $ 1,794.4 $ 1,408.8 $ 1,880.6 $ 4.0 $ 9,505.9 93 % 1.00x - 334.3 137.9 89.7 11.1 — 88.8 — 661.8 6 % Less than 1.00x — 15.2 57.9 — 6.0 32.1 — 111.2 1 % Total $ 1,412.7 $ 1,754.8 $ 1,885.6 $ 1,805.5 $ 1,414.8 $ 2,001.5 $ 4.0 $ 10,278.9 100 % |
Summary of Mortgage Loans on Real Estate Industry by Type of Property | June 30, 2021 In Good (1) Restructured Greater than 90 Days In the Process of Total Carrying Apartment $ 4,217.3 $ — $ — $ — $ 4,217.3 Hotel 1,043.7 — — — 1,043.7 Office 1,966.3 — — — 1,966.3 Retail 2,132.8 — — — 2,132.8 Warehouse 1,717.2 — — — 1,717.2 Total commercial $ 11,077.3 $ — $ — $ — $ 11,077.3 Residential (2) 495.7 — 75.1 (2) 1.0 571.8 Total $ 11,573.0 $ — $ 75.1 $ 1.0 $ 11,649.1 December 31, 2020 In Good (1) Restructured Greater than 90 Days In the Process of Total Carrying Apartment $ 3,905.3 $ — $ — $ — $ 3,905.3 Hotel 882.7 — — — 882.7 Office 1,569.7 — — — 1,569.7 Retail 1,942.4 — — — 1,942.4 Warehouse 1,978.8 — — — 1,978.8 Total commercial $ 10,278.9 $ — $ — $ — $ 10,278.9 Residential (2) 448.6 — — — 448.6 Total $ 10,727.5 $ — $ — $ — $ 10,727.5 (1) At June 30, 2021 and December 31, 2020, includes mezzanine loans of $73.3 million and $44.6 million in the Apartment category, $207.7 million and $116.8 million in the Office category, $38.9 million and $33.4 million in the Hotel category, and $49.6 million and $48.1 million in the Warehouse category, respectively. (2) Includes $69.1 million of loans purchased when the loans were greater than 90 days delinquent and are supported with insurance or other guarantees provided by various governmental programs. |
Variable Interest Entity, Primary Beneficiary [Member] | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | |
Summary of Assets and Liability Information for the Consolidated VIEs | June 30, 2021 December 31, 2020 Assets Debt securities, available for sale $ 1,267.6 $ 1,108.9 Debt securities, trading 114.7 105.7 Equity securities 121.9 125.8 Limited partnerships 1,126.2 958.7 Cash 57.5 57.1 Other assets 14.8 10.2 Total assets $ 2,702.7 $ 2,366.4 Liabilities Debt owed to non-controlling $ 1,013.6 $ 943.7 Other liabilities 276.0 200.5 Total other liabilities 1,289.6 1,144.2 Securities lending payable — 1.0 Total liabilities $ 1,289.6 $ 1,145.2 Equity Noncontrolling equity $ 599.1 $ 493.6 |
Net Investment Income [Member] | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | |
Schedule of Sources of Investment Income | The sources of net investment income were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Debt securities $ 277.2 $ 404.6 $ 600.5 $ 921.9 Equity securities 7.0 1.7 6.6 (13.7 ) Mortgage loans 80.3 91.1 162.1 201.7 Policy loans 17.0 17.1 35.7 37.9 Limited partnerships 150.0 (168.8 ) 392.9 (139.3 ) Other investment income 4.6 6.6 8.1 17.7 Total investment income excluding funds withheld assets 536.1 352.3 1,205.9 1,026.2 Net investment income on funds withheld assets (see Note 7) 293.8 144.2 584.9 228.9 Investment expenses: Derivative trading commission (0.5 ) (1.5 ) (1.3 ) (3.1 ) Depreciation on real estate (2.0 ) (2.8 ) (4.8 ) (5.5 ) Expenses related to consolidated entities (1) (9.0 ) (11.1 ) (16.6 ) (20.3 ) Other investment expenses (2) (22.5 ) (44.7 ) (44.5 ) (2.0 ) Total investment expenses $ (34.0 ) $ (60.1 ) (67.2 ) (30.9 ) Net investment income $ 795.9 $ 436.4 $ 1,723.6 $ 1,224.2 (1) Includes management fees, administrative fees, legal fees, and other expenses related to the consolidation of certain investments. (2) Includes interest expense and market appreciation on deferred compensation; investment software expense, custodial fees, and other bank fees; institutional product issuance related expenses; and other expenses. |
Non Agency Residential Mortgage Backed Securities [Member] | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | |
Schedule of Debt Securities Available for Sale | The Company’s non-agency Alt-A, June 30, 2021 Amortized (1) Allowance Credit Loss Gross Gross Fair Prime $ 248.2 $ 0.7 $ 14.0 $ 1.0 $ 260.5 Alt-A 108.2 0.1 25.7 0.2 133.6 Subprime 49.4 — 14.9 — 64.3 Total non-agency $ 405.8 $ 0.8 $ 54.6 $ 1.2 $ 458.4 December 31, 2020 Amortized (1) Allowance Credit Loss Gross Gross Fair Prime $ 287.4 $ — $ 17.1 $ 0.7 $ 303.8 Alt-A 122.9 — 25.6 0.3 148.2 Subprime 61.0 — 13.9 0.2 74.7 Total non-agency $ 471.3 $ — $ 56.6 $ 1.2 $ 526.7 (1) Amortized cost, apart from carrying value for securities carried at fair value under the fair value option and trading securities. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary Of Derivatives Notional Amount Outstanding And Fair Value | A summary of the aggregate contractual or notional amounts and fair values of the Company’s freestanding and embedded derivative instruments are as follows (in millions): June 30, 2021 Assets Liabilities Contractual/ (1) Fair Contractual/ (1) Fair Net Fair Value Freestanding derivatives Cross-currency swaps $ 1,113.3 $ 45.7 $ 654.1 $ 34.3 $ 11.4 Equity index call options 19,000.0 597.6 — — 597.6 Equity index futures (2) — — 15,900.0 — — Equity index put options 35,000.0 127.2 — — 127.2 Interest rate swaps 7,978.1 516.5 — — 516.5 Interest rate swaps - cleared (2) 1,500.0 — — — — Put-swaptions 16,000.0 179.1 2,000.0 17.5 161.6 Treasury futures (2) 1,611.7 — 10.6 — — Total freestanding derivatives 82,203.1 1,466.1 18,564.7 51.8 1,414.3 Embedded derivatives-product liabilities VA embedded derivatives (3) N/A — N/A 2,235.7 (2,235.7 ) FIA embedded derivatives (4) N/A — N/A 1,489.9 (1,489.9 ) Total embedded derivatives N/A — N/A 3,725.6 (3,725.6 ) Derivatives related to funds withheld under reinsurance treaties Cross-currency swaps 73.0 3.4 84.9 3.3 0.1 Cross-currency forwards 1,039.3 13.4 76.1 0.1 13.3 Funds withheld embedded derivative (5) N/A — N/A 372.9 (372.9 ) Total derivatives related to funds withheld under reinsurance treaties 1,112.3 16.8 161.0 376.3 (359.5 ) Total $ 83,315.4 $ 1,482.9 $ 18,725.7 $ 4,153.7 $ (2,670.8 ) (1) The notional amount for swaps and swaptions represents the stated principal balance used as a basis for calculating payments. The contractual amount for futures and options represents the market exposure of open positions. (2) Variation margin is considered settlement resulting in the netting of cash received/paid for variation margin against the fair value of the trades. (3) Included within reserves for future policy benefits and claims payable on the condensed consolidated balance sheets. The nonperformance risk adjustment is included in the balance above. (4) Included within other contract holder funds on the condensed consolidated balance sheets. The nonperformance risk adjustment is included in the balance above. (5) Included within funds withheld payable under reinsurance treaties on the condensed consolidated balance sheets. December 31, 2020 Assets Liabilities Contractual/ (1) Fair Contractual/ (1) Fair Net Fair Value Freestanding derivatives Cross-currency swaps $ 1,228.1 $ 93.0 $ 516.0 $ 34.0 $ 59.0 Equity index call options 26,300.0 1,127.3 — — 1,127.3 Equity index futures (2) — — 27,651.0 — — Equity index put options 27,000.0 178.0 — — 178.0 Interest rate swaps 4,250.0 721.8 500.0 0.9 720.9 Interest rate swaps - cleared (2) — — 1,500.0 8.2 (8.2 ) Put-swaptions 1,000.0 99.5 — — 99.5 Treasury futures (2) 8,520.5 — 3.8 — — Credit default swaps 0.5 — — — — Total freestanding derivatives 68,299.1 2,219.6 30,170.8 43.1 2,176.5 Embedded derivatives VA embedded derivatives (3) N/A — N/A 5,592.1 (5,592.1 ) FIA embedded derivatives (4) N/A — N/A 1,483.9 (1,483.9 ) Total embedded derivatives N/A — N/A 7,076.0 (7,076.0 ) Derivatives related to funds withheld under reinsurance treaties Cross-currency swaps 7.4 — 100.7 5.2 (5.2 ) Cross-currency forwards 75.3 0.2 668.3 8.1 (7.9 ) Funds withheld embedded derivative (5) N/A — N/A $ 826.6 $ (826.6 ) Total derivatives related to funds withheld under reinsurance treaties 82.7 0.2 769.0 839.9 (839.7 ) Total $ 68,381.8 $ 2,219.8 $ 30,939.8 $ 7,959.0 $ (5,739.2 ) (1) The notional amount for swaps and swaptions represents the stated principal balance used as a basis for calculating payments. The contractual amount for futures and options represents the market exposure of open positions. (2) Variation margin is considered settlement resulting in the netting of cash received/paid for variation margin against the fair value of the trades. (3) Included within reserves for future policy benefits and claims payable on the condensed consolidated balance sheets. The nonperformance risk adjustment is included in the balance above. (4) Included within other contract holder funds on the condensed consolidated balance sheets. The nonperformance risk adjustment is included in the balance above. (5) Included within funds withheld payable under reinsurance treaties on the condensed consolidated balance sheets. |
Summary Of Derivative Instruments | The following table reflects the results of the Company’s derivatives, including gains (losses) and change in fair value of freestanding derivative instruments and embedded derivatives (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Derivatives excluding funds withheld under reinsurance treaties Cross-currency swaps $ 21.1 $ 42.5 $ (44.3 ) $ 28.4 Equity index call options 666.6 347.8 798.6 122.2 Equity index futures (1,376.9 ) (6,699.1 ) (2,669.7 ) (1,067.5 ) Equity index put options (259.6 ) (3,038.5 ) (610.8 ) 752.2 Interest rate swaps 116.7 45.6 (148.2 ) 690.8 Interest rate swaps - 35.4 — (50.3 ) — Put-swaptions 394.9 12.0 103.2 265.1 Treasury futures (0.1 ) 90.6 (772.7 ) 1,978.8 Fixed index annuity embedded derivatives (1.7 ) (202.3 ) (2.1 ) 31.9 Variable annuity embedded derivatives (1,364.7 ) 3,510.9 3,283.4 (6,144.7 ) Total net gains (losses) on derivative instruments excluding derivative instruments related to funds withheld under reinsurance treaties (1,768.3 ) (5,890.5 ) (112.9 ) (3,342.8 ) Derivatives related to funds withheld under reinsurance treaties Cross-currency swaps 7.7 — 5.9 — Cross-currency forwards (5.4 ) — 13.4 — Treasury futures — (204.2 ) — (204.2 ) Funds withheld embedded derivative (544.3 ) (279.0 ) 453.7 (279.0 ) Total net gains (losses) on derivative instruments related to funds withheld under reinsurance treaties (542.0 ) (483.2 ) 473.0 (483.2 ) Total net gains (losses) on derivative instruments including derivative instruments related to funds withheld under reinsurance treaties $ (2,310.3 ) $ (6,373.7 ) $ 360.1 $ (3,826.0 ) |
Summary Of Offsetting Financial Assets And Liabilities | The following tables present the gross and net information about the Company’s financial instruments subject to master netting arrangements (in millions): June 30, 2021 Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Condensed Balance Sheets Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Securities Collateral (2) Net Amount Financial Assets: Freestanding derivative assets $ 1,482.9 $ — $ 1,482.9 $ 55.2 $ 752.3 $ 641.1 $ 34.3 Financial Liabilities: Freestanding derivative liabilities $ 55.2 $ — $ 55.2 $ 55.2 $ — $ — $ — Securities loaned 23.5 — 23.5 — 23.5 — — Repurchase agreements 2,257.1 — 2,257.1 — — 2,257.1 — Total financial liabilities $ 2,335.8 $ — $ 2,335.8 $ 55.2 $ 23.5 $ 2,257.1 $ — (1) Represents the amount that could be offset under master netting or similar arrangements that management elects not to offset on the condensed consolidated balance sheet s (2) Excludes initial margin amounts for exchange-traded derivatives. December 31, 2020 Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Condensed Balance Sheets Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Securities Collateral (2) Net Amount Financial Assets: Freestanding derivative assets $ 2,219.8 $ — $ 2,219.8 $ 35.1 $ 1,097.9 $ 890.0 $ 196.8 Financial Liabilities: Freestanding derivative liabilities $ 56.4 $ — $ 56.4 $ 35.1 $ 13.1 $ — $ 8.2 Securities loaned 13.3 — 13.3 — 13.3 — — Repurchase agreements 1,100.0 — 1,100.0 — — 1,100.0 — Total financial liabilities $ 1,169.7 $ — $ 1,169.7 $ 35.1 $ 26.4 $ 1,100.0 $ 8.2 (1) R (2) Excludes initial margin amounts for exchange-traded derivatives. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary Of Fair Value And Carrying Value Of The Financial Instruments | T June 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Assets Debt securities (1) $ 54,020.8 $ 54,020.8 $ 60,457.4 $ 60,457.4 Equity securities 239.3 239.3 193.1 193.1 Mortgage loans 11,649.1 12,151.4 10,727.5 11,348.9 Limited partnerships 2,391.6 2,391.6 1,991.3 1,991.3 Policy loans (1) 4,581.1 4,581.1 4,523.5 4,523.5 Freestanding derivative instruments 1,482.9 1,482.9 2,219.8 2,219.8 Federal Home Loan Bank of Indianapolis (“FHLBI”) capital stock 125.4 125.4 125.4 125.4 Cash and cash equivalents 1,534.6 1,534.6 2,018.7 2,018.7 GMIB reinsurance recoverable 267.2 267.2 340.4 340.4 Separate account assets 239,806.1 239,806.1 219,062.9 219,062.9 Liabilities Annuity reserves (2) $ 40,989.1 $ 49,051.4 $ 45,638.8 $ 54,005.7 Reserves for guaranteed investment contracts (3) 1,099.8 1,143.3 1,275.5 1,332.1 Trust instruments supported by funding agreements (3) 6,331.7 6,587.9 8,383.9 8,701.8 Federal Home Loan Bank funding agreements (3) 1,478.4 1,468.3 1,478.4 1,421.3 Funds withheld payable under reinsurance treaties (1) 30,321.8 30,321.8 31,971.5 31,971.5 Debt 317.7 397.7 322.0 412.3 Securities lending payable 23.5 23.5 13.3 13.3 Freestanding derivative instruments 55.2 55.2 56.4 56.4 Repurchase agreements 2,257.1 2,257.1 1,100.0 1,100.0 Federal Home Loan Bank advances 250.0 250.0 380.0 380.0 Separate account liabilities 239,806.1 239,806.1 219,062.9 219,062.9 (1) Includes items carried at fair value under the fair value option and trading securities. (2) Annuity reserves represent only the components of other contract holder funds and reserves for future policy benefits and claims payable that are considered to be financial instruments. (3) Included as a component of other contract holder funds on the condensed consolidated balance sheets. |
Summary Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following tables summarize the Company’s assets and liabilities that are carried at fair value by hierarchy levels (in millions): June 30, 2021 Total Level 1 Level 2 Level 3 Assets Debt securities U.S. government securities $ 4,468.5 $ 4,468.5 $ — $ — Other government securities 1,649.0 — 1,649.0 — Public utilities 6,646.5 — 6,646.5 — Corporate securities 31,844.5 — 31,813.3 31.2 Residential mortgage-backed 834.6 — 834.6 — Commercial mortgage-backed 2,871.0 — 2,871.0 — Other asset-backed securities 5,706.7 — 5,706.6 0.1 Equity securities 239.3 92.3 43.8 103.2 Limited partnerships 185.3 — 184.6 0.7 Policy loans 3,537.8 — — 3,537.8 Freestanding derivative instruments 1,482.9 — 1,482.9 — Cash and cash equivalents 1,534.6 1,534.6 — — GMIB reinsurance recoverable 267.2 — — 267.2 Separate account assets 239,806.1 — 239,806.1 — Total $ 301,074.0 $ 6,095.4 $ 291,038.4 $ 3,940.2 Liabilities Embedded derivative liabilities (1) $ 3,725.6 $ — $ 1,489.9 $ 2,235.7 Funds withheld payable under reinsurance treaties (2) 4,081.5 — — 4,081.5 Freestanding derivative instruments 55.2 — 55.2 — Total $ 7,862.3 $ — $ 1,545.1 $ 6,317.2 (1) Includes the embedded derivative liabilities of $2,235.7 million related to GMWB reserves included in reserves for future policy benefits and claims payable and $1,489.9 million of fixed index annuities included in other contract holder funds on the condensed consolidated balance sheets. (2) Includes the Athene embedded derivative liability of $372.9 million and funds withheld payable under reinsurance treaties at fair value under the fair value option. December 31, 2020 Total Level 1 Level 2 Level 3 Assets Debt securities U.S. government securities $ 5,126.0 $ 5,126.0 $ — $ — Other government securities 1,696.9 — 1,696.9 — Public utilities 7,297.7 — 7,297.7 — Corporate securities 36,440.0 — 36,411.3 28.7 Residential mortgage-backed 984.9 — 984.9 — Commercial mortgage-backed 3,322.6 — 3,322.6 — Other asset-backed securities 5,589.3 — 5,589.2 0.1 Equity securities 193.1 65.4 24.1 103.6 Limited partnerships 0.8 — — 0.8 Policy loans 3,454.2 — — 3,454.2 Freestanding derivative instruments 2,219.8 — 2,219.8 — Cash and cash equivalents 2,018.7 2,018.7 — — GMIB reinsurance recoverable 340.4 — — 340.4 Separate account assets 219,062.9 — 219,062.9 — Total $ 287,747.3 $ 7,210.1 $ 276,609.4 $ 3,927.8 Liabilities Embedded derivative liabilities (1) $ 7,076.0 $ — $ 1,483.9 $ 5,592.1 Funds withheld payable under reinsurance treaties (2) 4,453.1 — — 4,453.1 Freestanding derivative instruments 56.4 — 56.4 — Total $ 11,585.5 $ — $ 1,540.3 $ 10,045.2 (1) Includes the embedded derivative liabilities of $5,592.1 million related to GMWB reserves included in reserves for future policy benefits and claims payable and $1,483.9 million of fixed index annuities included in other contract holder funds on the condensed consolidated balance sheets. (2) Includes the Athene embedded derivative liability of $826.6 million and funds withheld payable under reinsurance treaties at fair value under the fair value option. |
Summary Of Level 3 Assets And Liabilities Measured At Fair Value With Their Corresponding Pricing Sources | The t June 30, 2021 Total Internal External Asset s Debt securities: Corporate $ 31.2 $ — $ 31.2 Other asset-backed securities 0.1 0.1 — Equity securities 103.2 1.2 102.0 Limited partnerships 0.7 0.7 — Policy loans 3,537.8 3,537.8 — GMIB reinsurance recoverable 267.2 267.2 — Total $ 3,940.2 $ 3,807.0 $ 133.2 Liabilities Embedded derivative liabilities (1) $ 2,235.7 $ 2,235.7 $ — Funds withheld payable under reinsurance treaties 4,081.5 4,081.5 — Total $ 6,317.2 $ 6,317.2 $ — (1) Includes the embedded derivative related to GMWB reserves. December 31, 2020 Total Internal External Asset s Debt securities: Corporate $ 28.7 $ — $ 28.7 Other asset-backed securities 0.1 — 0.1 Equity securities 103.6 1.2 102.4 Limited partnerships 0.8 0.8 — Policy loans 3,454.2 3,454.2 — GMIB reinsurance recoverable 340.4 340.4 — Total $ 3,927.8 $ 3,796.6 $ 131.2 Liabilities Embedded derivative liabilities (1) $ 5,592.1 $ 5,592.1 $ — Funds withheld payable under reinsurance treaties 4,453.1 4,453.1 — Total $ 10,045.2 $ 10,045.2 $ — (1) Includes the embedded derivative related to GMWB reserves. |
Schedule Of Significant Unobservable Inputs Used To Calculate Level 3 Fair Value Assets And Liabilities | The table below presents quantitative information on significant internally-priced Level 3 assets and liabilities (in millions): As of June 30, 2021 Fair Value Valuation Technique(s) Significant Unobservable Assumption or Impact of Increase in Assets GMIB reinsurance recoverable $ 267.2 Discounted cash flow Mortality (1) 0.01% - 23.52% Decrease Lapse (2) 3.33% - 9.23% Decrease Utilization (3) 0.00% - 20.00% Increase Withdrawal (4) 3.75% - 4.50% Increase Nonperformance risk (5) 0.09% - 1.41% Decrease Long-term Equity Volatility (6) 18.50% - Increase Liabilities Embedded derivative liabilities $ 2,235.7 Discounted cash flow Mortality (1) 0.04% - 21.53% Decrease Lapse (2) 0.16% - 30.26% Decrease Utilization (3) 5.00% - 100.00% Increase Withdrawal (4) 56.00% - 94.75% Increase Nonperformance risk (5) 0.09% - 1.41% Decrease Long-term Equity Volatility (6) 18.50% - 22.04% Increase (1) Mortality rates vary by attained age, tax qualification status, GMWB benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied. (2) Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and optional benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, in-the-money. (3) The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money. (4) The withdrawal rate represents the utilization rate of the contract’s free partial withdrawal provision (GMIB) or the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount (GMWB). Withdrawal rates on contracts with a GMIB vary based on the product type and duration. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions. (5) Nonperformance risk spread varies by duration. (6) Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available. As of December 31, 2020 Fair Value Valuation Technique(s) Significant Unobservable Assumption or Impact of Increase in Assets GMIB reinsurance recoverable $ 340.4 Discounted cash flow Mortality (1) 0.01% - 23.52% Decrease Lapse (2) 3.30% - 9.20% Decrease Utilization (3) 0.00% - 20.00% Increase Withdrawal (4) 3.75% - 4.50% Increase Nonperformance risk (5) 0.33% - 1.57% Decrease Long-term Equity Volatility (6) 18.50% - 22.47% Increase Liabilities Embedded derivative liabilities $ 5,592.1 Discounted cash flow Mortality (1) 0.04% - 21.53% Decrease Lapse (2) 0.20% - 30.30% Decrease Utilization (3) 5.00% - 100.00% Increase Withdrawal (4) 56.00% - 95.00% Increase Nonperformance risk (5) 0.33% - 1.57% Decrease Long-term Equity (6) 18.50% - 22.47% Increase (1) Mortality rates vary by attained age, tax qualification status, GMWB benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied. (2) Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and optional benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, in-the-money. (3) The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money. (4) The withdrawal rate represents the utilization rate of the contract’s free partial withdrawal provision (GMIB) or the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount (GMWB). Withdrawal rates on contracts with a GMIB vary based on the product type and duration. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions. (5) Nonperformance risk spread varies by duration. (6) Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available. |
Summary Of Reconciliation Of Level 3 Assets And Liabilities Measured On A Recurring Basis | Therefore, the impact of the derivative instruments reported in Level 3 may vary significantly from the total income effect of the hedged instruments. Total Realized/Unrealized Three Months Ended June 30, 2021 Fair Net Income Other Purchases, Transfers in of) Level 3 Fair Value as Assets Debt securities Corporate securities $ 17.7 $ 1.2 $ — $ 4.9 $ 7.4 $ 31.2 Other asset-backed securities 0.1 — — — — 0.1 Equity securities 101.5 8.9 — (7.5 ) 0.3 103.2 Limited partnerships 0.8 — — (0.1 ) — 0.7 GMIB reinsurance recoverable 266.0 1.2 — — — 267.2 Policy Loans 3,486.1 69.9 — (18.2 ) — 3,537.8 Liabilities Embedded derivative liabilities $ (869.6 ) $ (1,366.1 ) $ — $ — $ — $ (2,235.7 ) Funds withheld payable under reinsurance treaties (3,485.9 ) (584.6 ) 0.2 (11.2 ) — (4,081.5 ) Total Realized/Unrealized Three Months Ended June 30, 2020 Fair Value as Net Income Other Purchases, Transfers in Fair Value as Assets Debt securities Corporate securities $ 45.8 $ (6.2 ) $ — $ 38.9 $ (27.6 ) $ 50.9 Equity securities 154.7 (12.6 ) — (23.2 ) (0.1 ) 118.8 Limited partnerships 1.1 (0.2 ) — — — 0.9 GMIB reinsurance recoverable 502.1 (66.6 ) — — — 435.5 Policy loans 3,602.2 66.1 — (63.3 ) — 3,605.0 Liabilities Embedded derivative liabilities $ (12,645.4 ) $ 3,577.6 $ — $ — $ — $ (9,067.8 ) Funds withheld payable under reinsurance (3,773.0 ) (346.4 ) 1.2 62.9 — (4,055.3 ) Total Realized/Unrealized Six Months Ended June 30, 2021 Fair Value as Net Income Other Purchases, Transfers in Fair Value as Assets Debt securities Corporate securities $ 28.7 $ 1.8 $ — $ 5.7 $ (5.0 ) $ 31.2 Other asset-backed securities 0.1 — — — — 0.1 Equity securities 103.6 6.8 — (7.5 ) 0.3 103.2 Limited partnerships 0.8 — — (0.1 ) — 0.7 GMIB reinsurance recoverable 340.4 (73.2 ) — — — 267.2 Policy loans 3,454.2 125.1 — (41.5 ) — 3,537.8 Liabilities Embedded derivative liabilities $ (5,592.1 ) $ 3,356.4 $ — $ — $ — $ (2,235.7 ) Funds withheld payable under reinsurance treaties (4,453.1 ) 329.7 1.8 40.1 — (4,081.5 ) Total Realized/Unrealized Six Months Ended June 30, 2020 Fair Value as of January 1, Net Income Other Purchases, Transfers in Fair Value as Assets Debt securities Corporate securities $ — $ (5.3 ) $ — $ 17.3 $ 38.9 $ 50.9 Equity securities 182.9 (33.1 ) — (30.9 ) (0.1 ) 118.8 Limited partnerships 1.1 (0.2 ) — — — 0.9 GMIB reinsurance recoverable 302.8 132.7 — — — 435.5 Policy loans 3,585.8 120.9 — (101.7 ) — 3,605.0 Liabilities Embedded derivative liabilities $ (2,790.4 ) $ (6,277.4 ) $ — $ — $ — $ (9,067.8 ) Funds withheld payable under reinsurance treaties (3,760.3 ) (402.2 ) (1.4 ) 108.6 — (4,055.3 ) |
Summary Of Gross Components Of Purchases, Sales, Issuances And Settlements, Net | The components of the amounts included in purchases, sales, issuances and settlements for the three and six months ended June 30, 2021 and 2020 shown above are as follows (in millions): Three Months Ended June 30, 2021 Purchases Sales Issuances Settlements Total Assets Debt securities Corporate securities $ 5.2 $ (0.3 ) $ — $ — $ 4.9 Equity securities — (7.5 ) — — (7.5 ) Limited partnerships — (0.1 ) — — (0.1 ) Policy loans — — 8.1 (26.3 ) (18.2 ) Total $ 5.2 $ (7.9 ) $ 8.1 $ (26.3 ) $ (20.9 ) Liabilities Funds withheld payable under reinsurance treaties $ — $ — $ (128.7 ) $ 117.5 $ (11.2 ) Three Months Ended June 30, 2020 Purchases Sales Issuances Settlements Total Assets Debt securities Corporate securities $ 39.0 $ (0.1 ) $ — $ — $ 38.9 Equity securities 1.6 (24.8 ) — — (23.2 ) Policy loans — — 9.6 (72.9 ) (63.3 ) Total $ 40.6 $ (24.9 ) $ 9.6 $ (72.9 ) $ (47.6 ) Liabilities Funds withheld payable under reinsurance treaties $ — $ — $ (10.0 ) $ 72.9 $ 62.9 Six Months Ended June 30, 2021 Purchases Sales Issuances Settlements Total Assets Debt securities Corporate securities $ 6.1 $ (0.4 ) $ — $ — $ 5.7 Equity securities — (7.5 ) — — (7.5 ) Limited partnerships — (0.1 ) — — (0.1 ) Policy loans — — 36.2 (77.7 ) (41.5 ) Total $ 6.1 $ (8.0 ) $ 36.2 $ (77.7 ) $ (43.4 ) Liabilities Funds withheld payable under reinsurance treaties $ — $ — $ (211.2 ) $ 251.3 $ 40.1 Six Months Ended June 30, 2020 Purchases Sales Issuances Settlements Total Assets Debt securities Corporate securities $ 19.6 $ (2.3 ) $ — $ — $ 17.3 Equity securities 1.6 (32.5 ) — — (30.9 ) Policy loans — — 51.7 (153.4 ) (101.7 ) Total $ 21.2 $ (34.8 ) $ 51.7 $ (153.4 ) $ (115.3 ) Liabilities Funds withheld payable under reinsurance treaties $ — $ — $ (52.8 ) $ 161.4 $ 108.6 |
Summary Of Fair Value Of Financial Instruments Carried At Other Than Fair Value | The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value (in millions). June 30, 2021 December 31, 2020 Fair Value Hierarchy Carrying Value Fair Value Carrying Value Fair Value Assets Mortgage loans Level 3 $ 11,649.1 $ 12,151.4 $ 10,727.5 $ 11,348.9 Policy loans Level 3 1,043.3 1,043.3 1,069.3 1,069.3 FHLB capital stock Level 1 125.4 125.4 125.4 125.4 Liabilities Annuity reserves (1) Level 3 $ 37,263.5 $ 45,325.8 $ 38,562.8 $ 46,929.7 Reserves for guaranteed investment contracts (2) Level 3 1,099.8 1,143.3 1,275.5 1,332.1 Trust instruments supported by funding agreements (2) Level 3 6,331.7 6,587.9 8,383.9 8,701.8 Federal Home Loan Bank funding agreements (2) Level 3 1,478.4 1,468.3 1,478.4 1,421.3 Funds withheld payable under reinsurance treaties Level 2 26,240.3 26,240.3 27,518.4 27,518.4 Debt- all other Level 2 317.7 397.7 322.0 412.3 Securities lending payable Level 2 23.5 23.5 13.3 13.3 Federal Home Loan Bank advances Level 2 250.0 250.0 380.0 380.0 Repurchase agreements Level 2 2,257.1 2,257.1 1,100.0 1,100.0 Separate account liabilities (3) Level 2 239,806.1 239,806.1 219,062.9 219,062.9 (1) Annuity reserves represent only the components of other contract holder funds that are considered to be financial instruments. (2) Included as a component of other contract holder funds on the condensed consolidated balance sheets. (3) The values of separate account liabilities are set equal to the values of separate account assets. |
Summary Of Portion Of Gain Losses Included In Net Income Or Other Comprehensive Income Attributable To The Change In Unrealized Gain And Losses On Level 3 Financial Instruments Still Held | The portion of gains (losses) included in net income or other comprehensive income (“OCI”) attributable to the change in unrealized gains and losses on Level 3 financial instruments still held was as follows (in millions): Three Months Ended June 30, 2021 2020 Included in Net Income Included in OCI Included in Net Income Included in OCI Assets Debt securities Corporate securities $ 1.1 $ — $ (5.9 ) $ — Other asset-backed securities — — — — Equity securities 8.9 — (12.7 ) — Limited partnerships — — (0.2 ) — GMIB reinsurance recoverable 1.2 — (66.6 ) — Funds withheld reinsurance assets 69.9 — 66.1 — Liabilities Embedded derivative liabilities $ (1,366.1 ) $ — $ 3,577.6 $ — Funds withheld payable under reinsurance treaties (542.5 ) — (277.9 ) — Six Months Ended June 30, 2021 2020 Included in Net Income Included in OCI Included in Net Income Included in OCI Assets Debt securities Corporate securities $ 1.7 $ — $ (5.3 ) $ — Other asset-backed securities — — — — Equity securities 6.8 — (33.0 ) — Limited partnerships — — (0.2 ) — GMIB reinsurance recoverable (73.2 ) — 132.7 — Funds withheld reinsurance assets 125.1 — 120.9 — Liabilities Embedded derivative liabilities $ 3,356.4 $ — $ (6,277.4 ) $ — Funds withheld payable under reinsurance treaties 455.5 — (280.5 ) — |
Deferred Acquisition Costs (Tab
Deferred Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Summary of Acquisition Costs | The balances of and changes in deferred acquisition costs were as follows (in millions): Six Months Ended June 30, 2021 2020 Balance, beginning of period $ 13,897.0 $ 12,336.8 Deferrals of acquisition costs 400.3 351.5 Amortization related to: Operating amortization (94.4 ) (175.1 ) Non-operating amortization (453.1 ) 631.1 Write-off — (625.8 ) Total amortization (expense) benefit (547.5 ) (169.8 ) Unrealized investment (gains) losses 63.5 90.8 Balance, end of period $ 13,813.3 $ 12,609.3 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Reinsurance Disclosures [Abstract] | |
Summary of Assets and Liabilities Were Held in Support of Reserves Under Funds Withheld Reinsurance Agreements | The following assets and liabilities were held in support of reserves associated with the Company’s funds withheld reinsurance agreements and were reported in the respective financial statement line items in the condensed consolidated balance sheets (in millions): June 30, 2021 December 31, 2020 Assets Debt securities $ 21,170.3 $ 24,642.4 Equity securities 84.5 42.2 Mortgage loans 4,389.6 2,985.5 Policy loans 3,553.8 3,470.8 Derivative instruments, net 13.4 (13.1 ) Limited partnerships 423.5 124.9 Cash and cash equivalents 345.6 394.1 Accrued investment income 175.6 190.3 Other assets and liabilities, net 38.4 22.8 Total assets (2) $ 30,194.7 $ 31,859.9 Liabilities Funds held under reinsurance treaties (1) 30,321.8 31,971.5 Total liabilities $ 30,321.8 $ 31,971.5 (1) Includes funds withheld embedded derivative of $372.9 million and $826.6 million at June 30, 2021 and December 31, 2020, respectively. (2) Certain assets are reported at amortized cost while the fair value of those assets are reported in the embedded derivative in the funds withheld liability. |
Summary Of Sources Of Income Related To Funds Withheld Under Reinsurance Treaties Reported In Net Investment Income | The sources of income related to funds withheld under reinsurance treaties reported in net investment income in the consolidated income statements were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Debt securities $ 194.4 $ 67.7 $ 397.5 $ 71.9 Equity securities 3.5 — 2.4 — Mortgage loans 43.4 10.5 78.0 10.5 Policy loans 80.6 74.0 161.7 154.5 Limited partnerships (2.1 ) — 0.6 — Other investment income — 0.1 0.2 0.1 Total investment income on funds withheld assets 319.8 152.3 640.4 237.0 Other investment expenses on funds withheld assets (1) (26.0 ) (8.1 ) (55.5 ) (8.1 ) Total net investment income on funds withheld reinsurance treaties $ 293.8 $ 144.2 $ 584.9 $ 228.9 (1) Includes management fees. |
Summary of Gains and Losses on Funds Withheld Reinsurance Treaties as a Component of Net Gains Losses on Derivatives and Investment | The gains and losses on funds withheld reinsurance treaties as a component of net gains (losses) on derivatives and investments in the condensed consolidated income statements were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Available-for-sale Realized gains on sale $ 85.0 $ 1,598.1 $ 258.3 $ 1,598.1 Realized losses on sale (10.9 ) (2.2 ) (12.8 ) (2.2 ) Credit loss expense (0.5 ) — (0.5 ) — Gross impairments — (1.6 ) — (1.6 ) Credit loss expense on mortgage loans (11.6 ) (17.7 ) (4.6 ) (17.7 ) Other (3.1 ) — (12.1 ) — Net gains (losses) on non-derivative 58.9 1,576.6 228.3 1,576.6 Net gains (losses) on derivative instruments 2.3 (204.2 ) 19.3 (204.2 ) Net gains (losses) on funds withheld payable under reinsurance treaties (1) (828.6 ) (119.0 ) (117.3 ) (203.7 ) Total net gains (losses) on derivatives and investments $ (767.4 ) $ 1,253.4 $ 130.3 $ 1,168.7 (1) Includes the Athene embedded derivative gain (loss) of $(544.3) million and $453.7 million for the three and six months ended June 30, 2021, respectively, and $(279.0) million for both the three and six months ended June 30, 2020. |
Summary Of Components Of Reinsurance Recoverable | Components of the Company’s reinsurance recoverable were as follows (in millions): June 30, 2021 December 31, 2020 Reserves: Life $ 5,920.9 $ 5,963.9 Accident and health 557.8 568.7 Guaranteed minimum income benefits 267.2 340.3 Other annuity benefits (1) 26,687.8 27,535.8 Claims liability and other 813.0 860.8 Total $ 34,246.7 $ 35,269.5 (1) Other annuity benefits primarily attributable to fixed and fixed index annuities reinsured with Athene. |
Reserves for Future Policy Be_2
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Insurance Loss Reserves [Abstract] | |
Summary of Company's reserves for future policy benefits and claims payable balances | T June 30, December 31, Traditional life $ 4,358.8 $ 4,535.3 Guaranteed benefits (1) 5,046.1 8,508.5 Claims payable 1,029.8 1,109.5 Accident and health 1,225.8 1,257.2 Group payout annuities 5,077.2 5,220.3 Other 823.4 859.3 Total $ 17,561.1 $ 21,490.1 (1) Primarily includes the embedded derivative liabilities related to the GMWB reserve. |
Summary of Company's liabilities for other contract holder funds balances | The following table sets forth the Company’s liabilities for other contract holder funds balances (in millions): June 30, December Interest-sensitive life $ 11,725.4 $ 11,835.5 Variable annuity fixed option 10,168.2 10,609.6 Fixed annuity 16,284.6 16,746.3 Fixed index annuity (1) 13,809.6 14,209.2 GICs, funding agreements and FHLB advances 8,910.0 11,137.8 Total $ 60,897.8 $ 64,538.4 (1) Includes the embedded derivative liabilities related to fixed index annuity of $1,489.9 million and $1,483.9 million at June 30, 2021 and December 31, 2020, respectively. |
Summary of distribution of the fixed interest rate annuities' account values | The following tables show the distribution of th e fixed int June 30, 2021 Account Value Minimum Guaranteed Interest Rate Fixed Fixed Index Variable Total 1.0% $ 124.5 $ 232.7 $ 6,097.2 $ 6,454.4 >1.0% - 2.0% 59.6 1.5 226.5 287.6 >2.0% - 3.0% 1,130.6 185.4 3,291.3 4,607.3 >3.0% - 4.0% 607.6 — — 607.6 >4.0% - 5.0% 278.0 — — 278.0 >5.0% - 5.5% 72.2 — — 72.2 Subtotal 2,272.5 419.6 9,615.0 12,307.1 Ceded reinsurance 12,529.5 13,390.0 — 25,919.5 Total $ 14,802.0 $ 13,809.6 $ 9,615.0 $ 38,226.6 December 31, 2020 Account Value Minimum Guaranteed Interest Rate Fixed Fixed Index Variable Total 1.0% $ 92.1 $ 164.5 $ 6,501.6 $ 6,758.2 >1.0% - 2.0% 63.3 2.7 235.7 301.7 >2.0% - 3.0% 1,162.1 189.9 3,356.6 4,708.6 >3.0% - 4.0% 622.5 — — 622.5 >4.0% - 5.0% 280.3 — — 280.3 >5.0% - 5.5% 73.2 — — 73.2 Subtotal 2,293.5 357.1 10,093.9 12,744.5 Ceded reinsurance 12,923.7 13,852.1 — 26,775.8 Total $ 15,217.2 $ 14,209.2 $ 10,093.9 $ 39,520.3 |
Summary of distribution of the interest sensitive life business account values | The following table shows the distribution of the interest sensitive life business account values within the presented ranges of minimum guaranteed interest rates, excluding the business that is subject to the previously mentioned retro treaties (in millions): June 30, 2021 December 31, 2020 Minimum Guaranteed Interest Rate Account Value - Interest Sensitive Life >2.0% - 3.0% $ 258.0 $ 269.6 >3.0% - 4.0% 2,775.4 2,819.5 >4.0% - 5.0% 2,439.9 2,488.2 >5.0% - 6.0% 2,001.3 2,044.6 Subtotal 7,474.6 7,621.9 Retro treaties 4,250.8 4,213.6 Total $ 11,725.4 $ 11,835.5 |
Certain Nontraditional Long-D_2
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Certain Nontraditional LongDuration Contracts and Variable Annuity Guarantees [Line Items] | |
Schedule of Net Amount of Risk by Product and Guarantee | At June 30, 2021 and December 31, 2020, the Company provided variable annuity contracts with guarantees, for which the net amount at risk is defined as the amount of guaranteed benefit in excess of current account value, as follows (dollars in millions): June 30, 2021 Minimum Account Value Net Amount at Weighted Average Period until Expected Annuitization Return of net deposits plus a minimum return GMDB 0-6 % $ 186,886.5 $ 2,078.7 68.5 years GMWB - Premium only 0 % 2,993.0 8.4 GMWB 0-5 %* 249.9 8.5 GMAB - Premium only 0 % — — Highest specified anniversary account value minus withdrawals post-anniversary GMDB 14,555.7 65.0 69.6 years GMWB - Highest anniversary only 3,783.6 31.6 GMWB 663.5 47.7 Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary GMDB 0-6 % 9,628.8 498.9 71.7 years GMIB 0-6 % 1,718.0 466.2 0.6 years GMWB 0-8 %* 175,081.0 4,174.3 December 31, 2020 Minimum Account Net Amount at Weighted Average Attained Age Average Period until Expected Annuitization Return of net deposits plus a minimum return GMDB 0-6 % $ 170,510.2 $ 2,339.5 67.3 years GMWB - Premium only 0 % 2,858.1 11.7 GMWB 0-5 %* 247.5 10.8 GMAB - Premium only 0 % 39.4 — Highest specified anniversary account value minus withdrawals post-anniversary GMDB 13,511.9 86.1 68.3 years GMWB - Highest anniversary only 3,459.2 41.1 GMWB 646.0 55.4 Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary GMDB 0-6 % 8,890.8 614.8 70.5 years GMIB 0-6 % 1,675.3 555.5 0.5 years GMWB 0-8 %* 159,856.9 5,655.7 * R a 5 8 10-year bonus period. The combination GMWB category also includes benefits with a defined increase in the withdrawal percentage under pre-defined non-market conditions. |
Summary of Account Balances of Contracts With Guarantees Were Invested in Variable Separate Account | Account balances of contracts with guarantees were invested in variable separate accounts as follows (in millions): June 30, December 31, 2021 2020 Fund type: Equity $ 147,776.6 $ 132,213.0 Bond 20,288.8 20,202.9 Balanced 42,117.4 39,626.1 Money market 1,745.0 1,861.6 Total $ 211,927.8 $ 193,903.6 |
Summary of GMDB Liabilities Reflected in General Account | GMDB liabilities reflected in the general account were as follows (in millions): Six Months Ended June 30, 2021 2020 Balance as of beginning of period $ 1,418.2 $ 1,282.9 Incurred guaranteed benefits 47.0 340.9 Paid guaranteed benefits (56.7 ) (81.4 ) Balance as of end of period $ 1,408.5 $ 1,542.4 |
Insurance And Annuitization Benefits [Member] | |
Certain Nontraditional LongDuration Contracts and Variable Annuity Guarantees [Line Items] | |
Schedule of Net Amount of Risk by Product and Guarantee | Liabilities for these benefits have been established according to the methodologies described below: June 30, 2021 December 31, 2020 Benefit Type Liability Net Amount Weighted Liability Net Amount Weighted Insurance benefits * $ 935.0 $ 19,032.3 63.9 years $ 939.6 $ 19,483.0 63.5 years Account balance adjustments 136.7 N/A N/A 133.6 N/A N/A * Amounts for the universal life benefits are for the total of the plans containing any policies having projected non-zero |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Value of Borrowings | The aggregate carrying value of borrowings was as follows (in millions): June 30, December 31, 2021 2020 Surplus note s $ 249.7 $ 249.7 FHLBI bank loans 68.0 72.3 Total $ 317.7 $ 322.0 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Segment Reporting Information | Set forth in the tables below is certain information with respect to the Company’s segments, as described above (in millions): Three Months Ended June 30, 2021 Retail Closed Life Institutional Corporate Intersegment Total Operating Revenues Fee income $ 1,050.0 $ 122.8 $ — $ 33.3 $ (14.5 ) $ 1,191.6 Premium — 33.8 — — — 33.8 Net investment income 143.6 204.9 56.7 (8.5 ) 48.4 445.1 Income on operating derivatives 14.6 17.5 — 8.1 — 40.2 Other income 12.0 12.0 — 6.4 — 30.4 Total Operating Revenues 1,220.2 391.0 56.7 39.3 33.9 1,741.1 Operating Benefits and Expenses Death, other policy benefits and change in policy reserves, net of deferrals 11.5 191.5 — — — 203.0 Interest credited on other contract holder funds, net of deferrals 66.3 103.0 48.2 — — 217.5 Interest expense 5.6 — 1.0 — — 6.6 Operating costs and other expenses, net of deferrals 484.6 37.9 1.2 50.5 — 574.2 Deferred acquisition and sales inducements amortization (31.0 ) 2.2 — — 7.8 (21.0 ) Total Operating Benefits and Expenses 537.0 334.6 50.4 50.5 7.8 980.3 Pretax Adjusted Operating Earnings $ 683.2 $ 56.4 $ 6.3 $ (11.2 ) $ 26.1 $ 760.8 Three Months Ended June 30, 2020 Retail Closed Life Institutional Corporate Intersegment Total Operating Revenues Fee income $ 792.2 $ 128.5 $ — $ 43.0 $ (21.5 ) $ 942.2 Premium — 24.0 — — — 24.0 Net investment income 230.1 105.8 84.5 (61.0 ) 42.8 402.2 Income on operating derivatives 14.7 10.5 — 5.3 — 30.5 Other income 4.4 12.3 — 1.2 — 17.9 Total Operating Revenues 1,041.4 281.1 84.5 (11.5 ) 21.3 1,416.8 Operating Benefits and Expenses Death, other policy benefits and change in policy reserves, net of deferrals 9.5 256.8 — — — 266.3 Interest credited on other contract holder funds, net of deferrals 173.8 106.3 62.8 — — 342.9 Interest expense 7.0 — 4.2 20.2 — 31.4 Operating costs and other expenses, net of deferrals 406.2 36.6 1.3 54.1 — 498.2 Deferred acquisition and sales inducements amortization (241.3 ) 4.0 — — 5.9 (231.4 ) Total Operating Benefits and Expenses 355.2 403.7 68.3 74.3 5.9 907.4 Pretax Adjusted Operating Earnings $ 686.2 $ (122.6 ) $ 16.2 $ (85.8 ) $ 15.4 $ 509.4 Six Months Ended June 30, 2021 Retail Closed Life Institutional Corporate Intersegment Total Operating Revenues Fee income $ 2,045.7 $ 248.0 $ — $ 68.9 $ (29.7 ) $ 2,332.9 Premium — 71.3 — — — 71.3 Net investment income 348.7 461.4 120.4 (44.6 ) 97.1 983.0 Income on operating derivatives 28.6 37.7 — 12.4 — 78.7 Other income 23.6 21.7 — 8.3 — 53.6 Total Operating Revenues 2,446.6 840.1 120.4 45.0 67.4 3,519.5 Operating Benefits and Expenses Death, other policy benefits and change in policy reserves, net of deferrals 17.5 412.7 — — — 430.2 Interest credited on other contract holder funds, net of deferrals 133.6 206.6 99.8 — — 440.0 Interest expense 10.8 — 1.9 — — 12.7 Operating costs and other expenses, net of deferrals 960.0 78.6 2.5 106.4 — 1,147.5 Deferred acquisition and sales inducements amortization 73.2 7.0 — — 14.9 95.1 Total Operating Benefits and Expenses 1,195.1 704.9 104.2 106.4 14.9 2,125.5 Pretax Adjusted Operating Earnings $ 1,251.5 $ 135.2 $ 16.2 $ (61.4 ) $ 52.5 $ 1,394.0 Six Months Ended June 30, 2020 Retail Closed Life Institutional Corporate Intersegment Total Operating Revenues Fee income $ 1,649.7 $ 258.5 $ — $ 87.1 $ (45.0 ) $ 1,950.3 Premium — 93.9 — — — 93.9 Net investment income 626.8 298.3 196.8 (77.4 ) 77.2 1,121.7 Income on operating derivatives 25.7 17.8 — 8.5 — 52.0 Other income 4.5 5.7 1.6 2.3 — 14.1 Total Operating Revenues 2,306.7 674.2 198.4 20.5 32.2 3,232.0 Operating Benefits and Expenses Death, other policy benefits and change in policy reserves, net of deferrals 17.8 405.5 — — — 423.3 Interest credited on other contract holder funds, net of deferrals 398.0 214.6 136.4 — — 749.0 Interest expense 15.8 — 12.8 44.6 — 73.2 Operating costs and other expenses, net of deferrals 849.3 76.3 2.6 92.8 — 1,021.0 Deferred acquisition and sales inducements amortization 163.8 7.8 — — 9.1 180.7 Total Operating Benefits and Expenses 1,444.7 704.2 151.8 137.4 9.1 2,447.2 Pretax Adjusted Operating Earnings $ 862.0 $ (30.0 ) $ 46.6 $ (116.9 ) $ 23.1 $ 784.8 |
Summary of Non-GAAP Measure of Operating Revenues To Total Revenues | The following table summarizes the reconciling items from the non-GAAP Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Total operating revenues $ 1,741.1 $ 1,416.8 $ 3,519.5 $ 3,232.0 Fees attributed to variable annuity benefit reserves 701.0 617.7 1,372.6 1,224.6 Net gains (losses) on derivatives and investments (2,560.9 ) (4,401.9 ) 106.2 (2,065.1 ) Net investment income related to noncontrolling interests 56.1 (53.7 ) 124.4 (59.5 ) Consolidated investments 0.8 (56.0 ) 31.3 (66.6 ) Net investment income on funds withheld assets 293.8 144.2 584.9 228.9 Total revenues $ 231.9 $ (2,332.9 ) $ 5,738.9 $ 2,494.3 |
Summary of Non-GAAP Measure of Operating Expenses To Total Expenses | The following table summarizes the reconciling items from the non-GAAP Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Total operating benefits and expenses $ 980.3 $ 907.4 $ 2,125.5 $ 2,447.2 Benefits attributed to variable annuity benefit reserves 28.5 50.3 66.4 89.9 Amortization of DAC and DSI related to non-operating (242.7 ) (1,263.5 ) 453.1 (631.7 ) SOP 03-1 (21.2 ) (457.5 ) (3.6 ) 334.1 Athene reinsurance transaction — 2,046.7 — 2,046.7 Other items 25.4 3.7 50.5 4.0 Total benefits and expenses $ 770.3 $ 1,287.1 $ 2,691.9 $ 4,290.2 |
Summary of Non-GAAP Measure of Pretax Operating Profit Loss To Net Income Loss | The following table summarizes the reconciling items, net of deferred acquisition costs and deferred sales inducements, from the non-GAAP Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Pretax adjusted operating earnings $ 760.8 $ 509.4 $ 1,394.0 $ 784.8 Non-operating Fees attributable to guarantee benefit reserves 701.0 617.7 1,372.6 1,224.6 Net movement in freestanding derivatives (442.2 ) (9,340.3 ) (3,472.9 ) 2,717.9 Net reserve and embedded derivative movements (1,373.7 ) 3,715.9 3,218.5 (6,536.7 ) DAC and DSI impact 242.8 1,264.6 (453.1 ) 631.8 Net realized investment gains (losses) including change in fair value of funds withheld embedded derivative (752.4 ) 1,629.8 297.8 1,329.9 Loss on funds withheld reinsurance transaction — (2,046.7 ) — (2,046.7 ) Net investment income on funds withheld assets 293.8 144.2 584.9 228.9 Other items (24.6 ) (60.9 ) (19.2 ) (70.9 ) Pretax income (loss) attributable to Jackson Financial Inc. (594.5 ) (3,566.3 ) 2,922.6 (1,736.4 ) Income tax expense (benefit) (54.5 ) (457.0 ) 531.1 (423.8 ) Net income (loss) attributable to Jackson Financial, Inc. $ (540.0 ) $ (3,109.3 ) $ 2,391.5 $ (1,312.6 ) |
Operating Costs and Other Exp_2
Operating Costs and Other Expenses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Operating Costs And Other Expenses [Abstract] | |
Summary of Operating Costs and Other Expenses | The following table is a summary of the Company’s operating costs and other expenses (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Asset-based commission expenses $ 281.1 $ 213.5 $ 548.2 $ 425.5 Other commission expenses 263.0 206.0 529.5 483.4 Athene ceding commission (1) — (1,231.1 ) — (1,231.1 ) General and administrative expenses 256.5 227.6 520.6 466.4 Deferral of acquisition costs (201.0 ) (145.2 ) (400.4 ) (350.3 ) Total operating costs and other expenses $ 599.6 $ (729.2 ) $ 1,197.9 $ (206.1 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
AOCI Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table represents changes in the balance of accumulated other comprehensive income (“ Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Balance, beginning of period (1) $ 1,442.5 $ 1,963.0 $ 3,820.6 $ 2,396.7 OCI before reclassifications 1,062.8 1,988.2 (1,238.6 ) 1,596.7 Amounts reclassified from AOCI (115.1 ) (521.8 ) (191.8 ) (564.0 ) Balance, end of period (1) $ 2,390.2 $ 3,429.4 $ 2,390.2 $ 3,429.4 (1) Includes $632.1 million, $1,212.8 million, and $1,107.9 million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of June 30, 2021, December 31, 2020, and June 30, 2020, respectively. |
Summary of Reclassification Out of Accumulated Other Comprehensive Income | The following table represents amounts reclassified out of AOCI (in millions): AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Consolidated Income Statement Three Months Ended June 30, 2021 2020 Net unrealized investment gain (loss): Net realized gain (loss) on investments $ (147.5 ) $ (663.5 ) Net gains (losses) on derivatives and investments Other impaired securities — 3.0 Net gains (losses) on derivatives and investments Net unrealized gain (loss), before income taxes (147.5 ) (660.5 ) Income tax expense (benefit) (32.4 ) (138.7 ) Reclassifications, net of income taxes $ (115.1 ) $ (521.8 ) AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Consolidated Income Statement Six Months Ended June 30, 2021 2020 Net unrealized investment gain (loss): Net realized gain (loss) on investments $ (244.6 ) $ (721.4 ) Net gains (losses) on derivatives and investments Other impaired securities — 7.5 Net gains (losses) on derivatives and investments Net unrealized gain (loss), before income taxes (244.6 ) (713.9 ) Income tax expense (benefit) (52.8 ) (149.9 ) Reclassifications, net of income taxes $ (191.8 ) $ (564.0 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the calculation of earnings per common share: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions, except share and per share data) Net income (loss) attributable to Jackson Financial Inc. $ (540.0 ) $ (3,109.3 ) $ 2,391.5 $ (1,312.6 ) Weighted average shares of common stock outstanding - basic 94,464,343 44,433,998 94,464,343 41,336,994 Weighted average shares of common stock outstanding - diluted 94,464,343 44,433,998 94,464,343 41,336,994 Earnings per share—common stock Basic $ (5.72 ) $ (69.98 ) $ 25.32 $ (31.75 ) Diluted $ (5.72 ) $ (69.98 ) $ 25.32 $ (31.75 ) |
Business and Basis of Present_2
Business and Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Millions | Sep. 10, 2021 | Jul. 17, 2020USD ($) | Jun. 18, 2020USD ($) | Jun. 30, 2021$ / shares | Aug. 06, 2021$ / shares | Dec. 31, 2020$ / shares | Aug. 31, 2020USD ($) |
Jackson [Member] | |||||||
Business And Basis Of Presentation [Line Items] | |||||||
Investment in subsidiaries | $ | $ 500 | ||||||
Funds With Held Coinsurance Agreement [Member] | Athene Life Re Ltd [Member] | Jackson [Member] | |||||||
Business And Basis Of Presentation [Line Items] | |||||||
Percentage of basis of reinsurance | 100.00% | ||||||
Ceding commission | $ | $ 1,200 | ||||||
Investment Agreement [Member] | Athene Life Re Ltd [Member] | |||||||
Business And Basis Of Presentation [Line Items] | |||||||
Equity method investment, Ownership percentage | 11.10% | ||||||
Proceeds from capital contribution | $ | $ 500 | ||||||
Investment Agreement [Member] | Athene Life Re Ltd [Member] | Jackson [Member] | |||||||
Business And Basis Of Presentation [Line Items] | |||||||
Equity method investment, Ownership percentage | 9.90% | ||||||
Common Class A [Member] | |||||||
Business And Basis Of Presentation [Line Items] | |||||||
Common stock par or stated value per share | $ / shares | $ 0.01 | $ 0.01 | |||||
Stock split | 104,960.38 | ||||||
Common Class B [Member] | |||||||
Business And Basis Of Presentation [Line Items] | |||||||
Common stock par or stated value per share | $ / shares | $ 0.01 | $ 0.01 | |||||
Stock split | 104,960.38 | ||||||
Subsequent Event [Member] | |||||||
Business And Basis Of Presentation [Line Items] | |||||||
Percentage of basis of reinsurance | 19.90% | ||||||
Subsequent Event [Member] | Common Class A [Member] | |||||||
Business And Basis Of Presentation [Line Items] | |||||||
Common stock par or stated value per share | $ / shares | $ 0.01 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)States | Jun. 30, 2020USD ($)States | Dec. 31, 2020USD ($) | ||
Marketable Securities [Line Items] | |||||||
Debt securities carrying value | $ 128.2 | $ 128.2 | |||||
Fair value, investments, entities that calculate net asset value per share, percent debt securities | 100.00% | 100.00% | |||||
Debt securities, available for sale, gross unrealized losses | $ 635.4 | $ 635.4 | $ 168.9 | ||||
Securities reserve deposit required and made | 115.7 | 115.7 | 123.4 | ||||
Temporary impairment losses on debt securities held for maturity | 0 | ||||||
Debt securities, held-to-maturity, accrued interest, writeoff | 0 | $ 0 | 0 | $ 0 | |||
Unrealized gain (loss) on investments | 10.3 | 15.4 | |||||
Gain (loss) on sale of debt investments | $ 887.5 | $ 568.7 | $ 1,184.4 | $ 7,138.7 | |||
Percentage of book value of debt securities | 94 | 98 | 94 | 98 | |||
Proceeds from sale of available-for-sale securities | $ 2,800 | $ 13,900 | $ 5,600 | $ 15,500 | |||
Investments | 74,736.3 | 74,736.3 | 80,488 | ||||
Debt securities, available-for-sale | 11,649.1 | 11,649.1 | 10,727.5 | ||||
Debt securities, available for sale, allowance for credit losses | 135.3 | 135.3 | 179.2 | ||||
Debt securities, available-for-sale, accrued interest, after allowance for credit loss | 397.2 | 454.9 | 397.2 | 454.9 | |||
Deferred commercial mortgage loan interest and principal payments amount | 18.6 | ||||||
Other invested assets | 2,763.1 | 2,763.1 | 2,366.7 | ||||
Payments to acquire limited partnership interests | 420.4 | ||||||
Proceeds from limited partnership investments | 235.8 | ||||||
Securities loaned, fair value of collateral | 22.9 | $ 22.9 | 12.9 | ||||
Percent of fair value of loaned securities to be held as collateral | 102.00% | ||||||
Securities loaned, collateral, right to reclaim cash | 23.5 | $ 23.5 | 13.3 | ||||
Short-term Debt | $ 1,785.3 | $ 1,785.3 | $ 454.9 | ||||
Debt, weighted average interest rate | 0.07% | 0.07% | 0.16% | ||||
Securities sold under agreements to repurchase, asset | $ 2,257.1 | $ 2,257.1 | $ 1,100 | ||||
Repurchase agreements interest expense amount | 0.3 | 0 | 0.6 | 0.2 | |||
Subsequent Event [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Proceeds from limited partnership investments | $ 168 | ||||||
Investments In Limited Partnerships [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Other invested assets | 2,391.6 | 2,391.6 | 1,991.3 | ||||
Federal Home Loan Bank Capital Stock [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Other invested assets | 125.4 | 125.4 | 125.4 | ||||
Real Estate [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Other invested assets | 246.2 | 246.2 | 250 | ||||
Foreclosed Properties [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Other invested assets | 0.7 | 0.7 | 0.7 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Contractual obligation | 3,317.8 | 3,317.8 | 2,976.4 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | Equity Securities [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Investments | 31.3 | 31.3 | 23.6 | ||||
Investment Income [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Unrealized gain (loss) on investments | (13.7) | $ (43.6) | |||||
Corporate Debt Securities [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Debt securities, available for sale, gross unrealized losses | 179.9 | 179.9 | 41.9 | ||||
Commercial Mortgage Backed Securities [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Debt securities, available for sale, gross unrealized losses | 2.2 | 2.2 | 3.5 | ||||
Debt securities, available-for-sale | 11,100 | 11,100 | 10,200 | ||||
Debt securities, available for sale, allowance for credit losses | 113.9 | $ 113.9 | 164.7 | ||||
Number of operating segments | States | 38 | 38 | |||||
Debt securities, available-for-sale, accrued interest, after allowance for credit loss | 36.7 | $ 36.7 | 32.3 | ||||
Residential Mortgage Backed Securities [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Debt securities, available for sale, gross unrealized losses | 1.7 | 1.7 | 1.2 | ||||
Debt securities, available-for-sale | 571.8 | 571.8 | 448.6 | ||||
Debt securities, available for sale, allowance for credit losses | 21.4 | $ 21.4 | 14.5 | ||||
Number of operating segments | States | 48 | ||||||
Debt securities, available-for-sale, accrued interest, after allowance for credit loss | 3.1 | $ 3.1 | 2.9 | ||||
Impaired financing receivable, recorded investment | 1 | 1 | 0 | ||||
Impaired financing receivable, unpaid principal balance | 1 | 1 | 0 | ||||
Impaired financing receivable, average recorded investment | 0 | 0 | |||||
Impaired financing receivable, interest income, cash basis method | 0.4 | 0 | |||||
Financing receivable, troubled debt restructuring, premodification | 0 | 0 | |||||
Mortgage loans in process of foreclosure, amount | 1 | $ 1 | 0 | ||||
Maximum [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Mortgage loan concessions granted on interest and principal payment deferrals period | 14 months | ||||||
Short-term Debt | 2,257.2 | 0 | $ 2,257.2 | $ 0 | |||
Maximum [Member] | Corporate Debt Securities [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Debt securities, available for sale, gross unrealized losses | $ 16.8 | $ 16.8 | |||||
Minimum [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Mortgage loan concessions granted on interest and principal payment deferrals period | 6 months | ||||||
External Credit Rating, Investment Grade [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Fair value, investments, entities that calculate net asset value per share, percent debt securities | 94.10% | 94.10% | |||||
External Credit Rating, Investment Grade [Member] | Corporate Gross Unrealized Losses [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Fair value, investments, entities that calculate net asset value per share, percent debt securities | 18.00% | 18.00% | |||||
External Credit Rating, Investment Grade [Member] | Consumer Goods [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Fair value, investments, entities that calculate net asset value per share, percent debt securities | 16.00% | 16.00% | |||||
External Credit Rating, Non Investment Grade [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Fair value, investments, entities that calculate net asset value per share, percent debt securities | 5.90% | 5.90% | |||||
Nationally Recognized Statistical Rating Organization [Member] | External Credit Rating, Non Investment Grade [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Fair value, investments, entities that calculate net asset value per share, percent debt securities | 11.00% | 11.00% | |||||
Reported Value Measurement [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Debt securities carrying value | [1] | $ 54,020.8 | $ 54,020.8 | $ 60,457.4 | |||
Investment income, investment expense | $ (2.4) | $ (67) | $ (36.9) | $ (91.2) | |||
Reported Value Measurement [Member] | Nationally Recognized Statistical Rating Organization [Member] | External Credit Rating, Investment Grade [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Fair value, investments, entities that calculate net asset value per share, percent debt securities | 75.00% | 75.00% | |||||
Reported Value Measurement [Member] | Nationally Recognized Statistical Rating Organization [Member] | External Credit Rating Below Investment Grade [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Fair value, investments, entities that calculate net asset value per share, percent debt securities | 5.00% | 5.00% | |||||
Reported Value Measurement [Member] | Nationally Recognized Statistical Rating Organization [Member] | External Credit Rating, Non Investment Grade [Member] | |||||||
Marketable Securities [Line Items] | |||||||
Fair value, investments, entities that calculate net asset value per share, percent debt securities | 20.00% | 20.00% | |||||
[1] | Includes items carried at fair value under the fair value option and trading securities. |
Investments - Schedule of Compo
Investments - Schedule of Composition of Fair Value of Debt Securities Classified by Rating (Detail) | Jun. 30, 2021 |
Schedule Of Composition Of Fair Value Of Debt Securities Classified By Rating [Line Items] | |
Percent of Total Debt Securities Carrying Value | 100.00% |
Investment Grade [Member] | |
Schedule Of Composition Of Fair Value Of Debt Securities Classified By Rating [Line Items] | |
Percent of Total Debt Securities Carrying Value | 94.10% |
Investment Grade [Member] | AAA | |
Schedule Of Composition Of Fair Value Of Debt Securities Classified By Rating [Line Items] | |
Percent of Total Debt Securities Carrying Value | 16.80% |
Investment Grade [Member] | AA | |
Schedule Of Composition Of Fair Value Of Debt Securities Classified By Rating [Line Items] | |
Percent of Total Debt Securities Carrying Value | 9.00% |
Investment Grade [Member] | A | |
Schedule Of Composition Of Fair Value Of Debt Securities Classified By Rating [Line Items] | |
Percent of Total Debt Securities Carrying Value | 29.10% |
Investment Grade [Member] | BBB | |
Schedule Of Composition Of Fair Value Of Debt Securities Classified By Rating [Line Items] | |
Percent of Total Debt Securities Carrying Value | 39.20% |
Below Investment Grade [Member] | |
Schedule Of Composition Of Fair Value Of Debt Securities Classified By Rating [Line Items] | |
Percent of Total Debt Securities Carrying Value | 5.90% |
Below Investment Grade [Member] | BB | |
Schedule Of Composition Of Fair Value Of Debt Securities Classified By Rating [Line Items] | |
Percent of Total Debt Securities Carrying Value | 3.30% |
Below Investment Grade [Member] | B and below | |
Schedule Of Composition Of Fair Value Of Debt Securities Classified By Rating [Line Items] | |
Percent of Total Debt Securities Carrying Value | 2.60% |
Investments - Schedule of Debt
Investments - Schedule of Debt Securities Available for Sale (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | ||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | [1] | $ 51,001.4 | $ 55,523.4 | |||
Allowance for credit losses | 6.8 | $ 4.9 | 13.6 | $ 17.5 | ||
Gross Unrealized Gains | 3,661.6 | 5,116.5 | ||||
Gross Unrealized Losses | 635.4 | 168.9 | ||||
Fair Value | 54,020.8 | 60,457.4 | ||||
U.S. Government Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | [1] | 4,783.9 | 5,078.9 | |||
Gross Unrealized Gains | 88 | 162 | ||||
Gross Unrealized Losses | 403.4 | 114.9 | ||||
Fair Value | 4,468.5 | 5,126 | ||||
Other government securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | [1] | 1,510.5 | 1,497.1 | |||
Gross Unrealized Gains | 152.3 | 200.6 | ||||
Gross Unrealized Losses | 13.8 | 0.8 | ||||
Fair Value | 1,649 | 1,696.9 | ||||
Public utilities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | [1] | 5,892.8 | 6,270.4 | |||
Gross Unrealized Gains | 770 | 1,029.2 | ||||
Gross Unrealized Losses | 16.3 | 1.9 | ||||
Fair Value | 6,646.5 | 7,297.7 | ||||
Corporate Debt Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | [1] | 29,717.1 | 33,180.3 | |||
Gross Unrealized Gains | 2,307.3 | 3,301.6 | ||||
Gross Unrealized Losses | 179.9 | 41.9 | ||||
Fair Value | 31,844.5 | 36,440 | ||||
Residential mortgage-backed | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | [1] | 770.5 | 911.7 | |||
Allowance for credit losses | 0.8 | 0.7 | 0.3 | |||
Gross Unrealized Gains | 66.6 | 74.4 | ||||
Gross Unrealized Losses | 1.7 | 1.2 | ||||
Fair Value | 834.6 | 984.9 | ||||
Commercial mortgage-backed | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | [1] | 2,702.2 | 3,077.6 | |||
Gross Unrealized Gains | 171 | 248.5 | ||||
Gross Unrealized Losses | 2.2 | 3.5 | ||||
Fair Value | 2,871 | 3,322.6 | ||||
Other asset-backed securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | [1] | 5,624.4 | 5,507.4 | |||
Allowance for credit losses | 6 | $ 4.2 | 13.6 | $ 17.2 | ||
Gross Unrealized Gains | 106.4 | 100.2 | ||||
Gross Unrealized Losses | 18.1 | 4.7 | ||||
Fair Value | 5,706.7 | 5,589.3 | ||||
Non Agency Residential Mortgage Backed Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 405.8 | 471.3 | [2] | |||
Allowance for credit losses | 0.8 | |||||
Gross Unrealized Gains | 54.6 | 56.6 | ||||
Gross Unrealized Losses | 1.2 | 1.2 | ||||
Fair Value | 458.4 | 526.7 | ||||
Non Agency Residential Mortgage Backed Securities [Member] | Prime [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 248.2 | 287.4 | [2] | |||
Allowance for credit losses | 0.7 | |||||
Gross Unrealized Gains | 14 | 17.1 | ||||
Gross Unrealized Losses | 1 | 0.7 | ||||
Fair Value | 260.5 | 303.8 | ||||
Non Agency Residential Mortgage Backed Securities [Member] | Alt A [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 108.2 | 122.9 | [2] | |||
Allowance for credit losses | 0.1 | |||||
Gross Unrealized Gains | 25.7 | 25.6 | ||||
Gross Unrealized Losses | 0.2 | 0.3 | ||||
Fair Value | 133.6 | 148.2 | ||||
Non Agency Residential Mortgage Backed Securities [Member] | Subprime [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 49.4 | 61 | [2] | |||
Gross Unrealized Gains | 14.9 | 13.9 | ||||
Gross Unrealized Losses | 0.2 | |||||
Fair Value | $ 64.3 | $ 74.7 | ||||
[1] | Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities. | |||||
[2] | Amortized cost, apart from carrying value for securities carried at fair value under the fair value option and trading securities. |
Investments - Schedule of Avail
Investments - Schedule of Available for Sale Securities Unrealized Continuous Loss Position (Detail) $ in Millions | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Gross Unrealized Losses | $ 621.4 | $ 164.8 | |
Less than 12 months, Fair Value | $ 10,024.3 | $ 6,555.4 | |
Less than 12 months, # of securities | 789 | 315 | |
12 months or longer, Gross Unrealized Losses | $ 14 | $ 4.1 | |
12 months or longer, Fair Value | $ 207.6 | $ 44.2 | |
12 months or longer, # of securities | 42 | 12 | |
Gross Unrealized Losses | $ 635.4 | $ 168.9 | |
Fair Value | $ 10,231.9 | $ 6,599.6 | |
Number Of Securities | 822 | 327 | |
US Government Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Gross Unrealized Losses | $ 403.4 | $ 114.9 | |
Less than 12 months, Fair Value | $ 3,407.2 | $ 3,944.7 | |
Less than 12 months, # of securities | 20 | 7 | |
Gross Unrealized Losses | $ 403.4 | $ 114.9 | |
Fair Value | $ 3,407.2 | $ 3,944.7 | |
Number Of Securities | 20 | 7 | |
US Government Agencies Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Gross Unrealized Losses | $ 13.8 | $ 0.8 | |
Less than 12 months, Fair Value | $ 231 | $ 89.4 | |
Less than 12 months, # of securities | 25 | 7 | |
Gross Unrealized Losses | $ 13.8 | $ 0.8 | |
Fair Value | $ 231 | $ 89.4 | |
Number Of Securities | 25 | 7 | |
Public Utilities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Gross Unrealized Losses | $ 16.3 | $ 1.8 | |
Less than 12 months, Fair Value | $ 436.8 | $ 146.5 | |
Less than 12 months, # of securities | 56 | 8 | |
12 months or longer, Fair Value | $ 0.5 | ||
12 months or longer, # of securities | 2 | ||
Gross Unrealized Losses | $ 16.3 | $ 1.8 | |
Fair Value | $ 437.3 | $ 146.5 | |
Number Of Securities | 58 | 8 | |
Corporate Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Gross Unrealized Losses | $ 173.7 | $ 41.5 | |
Less than 12 months, Fair Value | $ 4,499.6 | $ 1,391.1 | |
Less than 12 months, # of securities | 438 | 161 | |
12 months or longer, Gross Unrealized Losses | $ 6.2 | $ 0.5 | |
12 months or longer, Fair Value | $ 164.9 | $ 2.9 | |
12 months or longer, # of securities | 23 | 3 | |
Gross Unrealized Losses | [1] | $ 179.9 | $ 42 |
Fair Value | [1] | $ 4,664.5 | $ 1,394 |
Number Of Securities | [1] | 453 | 164 |
Residential Mortgage Backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Gross Unrealized Losses | $ 1.6 | $ 1.2 | |
Less than 12 months, Fair Value | $ 137 | $ 35.4 | |
Less than 12 months, # of securities | 78 | 28 | |
12 months or longer, Gross Unrealized Losses | $ 0.1 | ||
12 months or longer, Fair Value | $ 3 | $ 1.8 | |
12 months or longer, # of securities | 11 | 4 | |
Gross Unrealized Losses | $ 1.7 | $ 1.2 | |
Fair Value | $ 140 | $ 37.2 | |
Number Of Securities | 89 | 32 | |
Commercial Mortgage Backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Gross Unrealized Losses | $ 2.2 | $ 3.2 | |
Less than 12 months, Fair Value | $ 162.5 | $ 151.9 | |
Less than 12 months, # of securities | 15 | 13 | |
12 months or longer, Gross Unrealized Losses | $ 0.3 | ||
12 months or longer, Fair Value | $ 19.9 | $ 9.7 | |
12 months or longer, # of securities | 2 | 1 | |
Gross Unrealized Losses | $ 2.2 | $ 3.5 | |
Fair Value | $ 182.4 | $ 161.6 | |
Number Of Securities | 16 | 14 | |
Asset-backed Securities, Securitized Loans and Receivables [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Gross Unrealized Losses | $ 10.4 | $ 1.4 | |
Less than 12 months, Fair Value | $ 1,150.2 | $ 796.4 | |
Less than 12 months, # of securities | 157 | 91 | |
12 months or longer, Gross Unrealized Losses | $ 7.7 | $ 3.3 | |
12 months or longer, Fair Value | $ 19.3 | $ 29.8 | |
12 months or longer, # of securities | 4 | 4 | |
Gross Unrealized Losses | $ 18.1 | $ 4.7 | |
Fair Value | $ 1,169.5 | $ 826.2 | |
Number Of Securities | 161 | 95 | |
[1] | Certain corporate securities contain multiple lots and fit the criteria of both aging groups. |
Investments - Schedule of Allow
Investments - Schedule of Allowance for Credit Losses of Debt Securities Available for Sale (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | $ 4.9 | $ 13.6 | ||
Additions for which credit loss was not previously recorded | 0.5 | $ 17.5 | 1.2 | $ 17.5 |
Changes for securities with previously recorded credit loss | 1.4 | (8) | ||
Ending balance | 6.8 | 17.5 | 6.8 | 17.5 |
Residential mortgage-backed | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 0.7 | |||
Additions for which credit loss was not previously recorded | 0.5 | 0.3 | 1.2 | 0.3 |
Changes for securities with previously recorded credit loss | (0.4) | (0.4) | ||
Ending balance | 0.8 | 0.3 | 0.8 | 0.3 |
Other asset-backed securities | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 4.2 | 13.6 | ||
Additions for which credit loss was not previously recorded | 17.2 | 17.2 | ||
Changes for securities with previously recorded credit loss | 1.8 | (7.6) | ||
Ending balance | $ 6 | $ 17.2 | $ 6 | $ 17.2 |
Investments - Schedule of All_2
Investments - Schedule of Allowance for Credit Losses of Debt Securities Available for Sale (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Jun. 30, 2020 |
Debt Securities, Available-for-sale [Abstract] | ||
Accrued interest receivable on debt securities | $ 397.2 | $ 454.9 |
Investments - Schedule of Sourc
Investments - Schedule of Sources of Investment Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Net Investment Income [Line Items] | |||||
Total investment income excluding funds withheld assets | $ 536.1 | $ 352.3 | $ 1,205.9 | $ 1,026.2 | |
Net investment income on funds withheld assets | 293.8 | 144.2 | 584.9 | 228.9 | |
Investment expenses: | |||||
Derivative trading commission | (0.5) | (1.5) | (1.3) | (3.1) | |
Expenses related to consolidated entities | [1] | (9) | (11.1) | (16.6) | (20.3) |
Other investment expenses | [2] | (22.5) | (44.7) | (44.5) | (2) |
Total investment expenses | (34) | (60.1) | (67.2) | (30.9) | |
Net investment income | 795.9 | 436.4 | 1,723.6 | 1,224.2 | |
Real Estate [Member] | |||||
Investment expenses: | |||||
Depreciation on real estate | (2) | (2.8) | (4.8) | (5.5) | |
Debt Securities [Member] | |||||
Net Investment Income [Line Items] | |||||
Gross investment income, Operating expenses | 277.2 | 404.6 | 600.5 | 921.9 | |
Equity Securities [Member] | |||||
Net Investment Income [Line Items] | |||||
Gross investment income, Operating expenses | 7 | 1.7 | 6.6 | (13.7) | |
Mortgage Loans [Member] | |||||
Net Investment Income [Line Items] | |||||
Gross investment income, Operating expenses | 80.3 | 91.1 | 162.1 | 201.7 | |
Policy Loans [Member] | |||||
Net Investment Income [Line Items] | |||||
Gross investment income, Operating expenses | 17 | 17.1 | 35.7 | 37.9 | |
Limited Partnerships [Member] | |||||
Net Investment Income [Line Items] | |||||
Gross investment income, Operating expenses | 150 | (168.8) | 392.9 | (139.3) | |
Other Investment Income [Member] | |||||
Net Investment Income [Line Items] | |||||
Gross investment income, Operating expenses | $ 4.6 | $ 6.6 | $ 8.1 | $ 17.7 | |
[1] | Includes management fees, administrative fees, legal fees, and other expenses related to the consolidation of certain investments. | ||||
[2] | Includes interest expense and market appreciation on deferred compensation; investment software expense, custodial fees, and other bank fees; institutional product issuance related expenses; and other expenses. |
Investments - Debt Securities A
Investments - Debt Securities Available for Sale by Contractual Maturity (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost | [1] | $ 51,001.4 | |||
Allowance for credit losses | 6.8 | $ 4.9 | $ 13.6 | $ 17.5 | |
Gross Unrealized Gains | 3,661.6 | 5,116.5 | |||
Gross Unrealized Losses | 635.4 | $ 168.9 | |||
Fair Value | 54,020.8 | ||||
Due in 1 year or less | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost | [1] | 1,032.4 | |||
Gross Unrealized Gains | 19.1 | ||||
Fair Value | 1,051.5 | ||||
Due after 1 year through 5 years | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost | [1] | 8,414.3 | |||
Gross Unrealized Gains | 542.2 | ||||
Gross Unrealized Losses | 18.4 | ||||
Fair Value | 8,938.1 | ||||
Due after 5 years through 10 years | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost | [1] | 16,976.7 | |||
Gross Unrealized Gains | 1,111.9 | ||||
Gross Unrealized Losses | 68.9 | ||||
Fair Value | 18,019.7 | ||||
Due after 10 years through 20 years | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost | [1] | 5,810.1 | |||
Gross Unrealized Gains | 946.3 | ||||
Gross Unrealized Losses | 169.9 | ||||
Fair Value | 6,586.5 | ||||
Due after 20 years | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost | [1] | 9,670.8 | |||
Gross Unrealized Gains | 698.1 | ||||
Gross Unrealized Losses | 356.2 | ||||
Fair Value | 10,012.7 | ||||
Residential mortgage-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost | [1] | 770.5 | |||
Allowance for credit losses | 0.8 | ||||
Gross Unrealized Gains | 66.6 | ||||
Gross Unrealized Losses | 1.7 | ||||
Fair Value | 834.6 | ||||
Commercial mortgage-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost | [1] | 2,702.2 | |||
Gross Unrealized Gains | 171 | ||||
Gross Unrealized Losses | 2.2 | ||||
Fair Value | 2,871 | ||||
Other asset-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost | [1] | 5,624.4 | |||
Allowance for credit losses | 6 | ||||
Gross Unrealized Gains | 106.4 | ||||
Gross Unrealized Losses | 18.1 | ||||
Fair Value | $ 5,706.7 | ||||
[1] | Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities. |
Investment - Summary of Assets
Investment - Summary of Assets and Liability Information for the Consolidated VIEs (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Debt securities, available-for-sale | $ 52,472.6 | $ 59,075 |
Debt securities, trading | 114.7 | 105.7 |
Equity securities | 239.3 | 193.1 |
Other assets | 1,108.7 | 1,103.7 |
Total assets | 366,657.4 | 353,455.5 |
Liabilities | ||
Total other liabilities | 6,684.6 | 6,078.7 |
Securities lending payable | 23.5 | 13.3 |
Total liabilities | 355,667.8 | 343,533.3 |
Equity | ||
Noncontrolling interests | 599.1 | 493.6 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Assets | ||
Debt securities, available-for-sale | 1,267.6 | 1,108.9 |
Debt securities, trading | 114.7 | 105.7 |
Equity securities | 121.9 | 125.8 |
Limited Partnership | 1,126.2 | 958.7 |
Cash | 57.5 | 57.1 |
Other assets | 14.8 | 10.2 |
Total assets | 2,702.7 | 2,366.4 |
Liabilities | ||
Debt owed to non-controlling interests | 1,013.6 | 943.7 |
Other liabilities | 276 | 200.5 |
Total other liabilities | 1,289.6 | 1,144.2 |
Securities lending payable | 1 | |
Total liabilities | 1,289.6 | 1,145.2 |
Equity | ||
Noncontrolling interests | $ 599.1 | $ 493.6 |
Investments - Summary of Net Ga
Investments - Summary of Net Gain Losses on Derivatives and Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Available-for-sale securities | |||||
Realized gains on sale | $ 95.7 | $ 358.3 | $ 120.8 | $ 420 | |
Realized losses on sale | (51.7) | (57.7) | (57.7) | (183.7) | |
Credit loss income (expense) | (1.4) | 0.4 | 7.2 | (17.1) | |
Gross impairments | (1) | (26.4) | |||
Credit loss income (expense) on mortgage loans | (10.1) | 14.6 | 48.4 | (33.9) | |
Other (1) | [1] | (17.5) | (48.8) | 48.8 | 2.3 |
Net gains (losses) excluding derivatives and funds withheld assets | 15 | 265.8 | 167.5 | 161.2 | |
Net gains (losses) on derivative instruments (see Note 4) | (1,768.3) | (5,890.5) | (112.9) | (3,342.8) | |
Net gains (losses) on funds withheld reinsurance treaties (see Note 7) | (767.4) | 1,253.4 | 130.3 | 1,168.7 | |
Total net gains (losses) on derivatives and investments | $ (2,520.7) | $ (4,371.3) | $ 184.9 | $ (2,012.9) | |
[1] | Includes the foreign currency gain or loss related to foreign denominated trust instruments supporting funding agreements. |
Investments - Summary of Allowa
Investments - Summary of Allowance for Credit Losses in the Company's Mortgage Loan Portfolios (Detail) - Mortgage Loan Portfolios [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning Balance | $ 113.7 | $ 119.4 | $ 179.2 | $ 8.9 | |
Cumulative effect of change in accounting principle | 62 | ||||
Provision | 21.6 | (14.6) | (43.9) | 33.9 | |
Ending Balance | [1] | 135.3 | 104.8 | 135.3 | 104.8 |
Apartment [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning Balance | 26.7 | 51.2 | 57.9 | 3.7 | |
Cumulative effect of change in accounting principle | 23.6 | ||||
Provision | (17.1) | (31.2) | 6.8 | ||
Ending Balance | [1] | 26.7 | 34.1 | 26.7 | 34.1 |
Hotel [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning Balance | 22.1 | 8 | 33.9 | 0.8 | |
Cumulative effect of change in accounting principle | 5 | ||||
Provision | 10.9 | 3.4 | (0.9) | 5.6 | |
Ending Balance | [1] | 33 | 11.4 | 33 | 11.4 |
Office [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning Balance | 16.3 | 14.7 | 24.9 | 1.1 | |
Cumulative effect of change in accounting principle | 7.8 | ||||
Provision | 3.4 | 7.3 | (5.2) | 13.1 | |
Ending Balance | [1] | 19.7 | 22 | 19.7 | 22 |
Retail [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning Balance | 15 | 21.9 | 24.2 | 2 | |
Cumulative effect of change in accounting principle | 10.3 | ||||
Provision | 7.7 | (3.9) | (1.5) | 5.7 | |
Ending Balance | [1] | 22.7 | 18 | 22.7 | 18 |
Warehouse [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning Balance | 13.3 | 23.6 | 23.8 | 1.3 | |
Cumulative effect of change in accounting principle | 15.3 | ||||
Provision | (1.5) | (4.3) | (12) | 2.7 | |
Ending Balance | [1] | 11.8 | $ 19.3 | 11.8 | $ 19.3 |
Residential Mortgage [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning Balance | [2] | 20.3 | 14.5 | ||
Provision | [2] | 1.1 | 6.9 | ||
Ending Balance | [1],[2] | $ 21.4 | $ 21.4 | ||
[1] | Accrued interest receivable totaled $39.8 million and $29.9 million as of June 30, 2021 and 2020, respectively, and was excluded from the estimate of credit losses. | ||||
[2] | During the three and six months ended June 30, 2021, $136 thousand of accrued interest was written off relating to loans that were greater than 90 days delinquent or in the process of foreclosure. |
Investments - Summary of Allo_2
Investments - Summary of Allowance for Credit Losses in the Company's Mortgage Loan Portfolios (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Allowance for Credit Loss [Abstract] | |||
Accrued interest receivable | $ 39,800 | $ 39,800 | $ 29,900 |
Accrued interest written off amount | $ 136 | $ 136 |
Investments - Summary of Credit
Investments - Summary of Credit Quality and Vintage Year of Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | $ 1,302.6 | $ 1,412.7 |
2020 | 1,584.4 | 1,754.8 |
2019 | 1,755.9 | 1,885.6 |
2018 | 1,717.5 | 1,805.5 |
2017 | 1,652.9 | 1,414.8 |
Prior | 3,059.9 | 2,001.5 |
Revolving Loans | 4.1 | 4 |
total | $ 11,077.3 | $ 10,278.9 |
Financing Receivable Total percent | 100.00% | 1.00% |
Debt Service Coverage Ratios Greater Than 1.20 Times [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | $ 796.6 | $ 1,078.4 |
2020 | 1,095.5 | 1,601.7 |
2019 | 1,569.5 | 1,738 |
2018 | 1,400.4 | 1,794.4 |
2017 | 1,537.5 | 1,408.8 |
Prior | 2,763.3 | 1,880.6 |
Revolving Loans | 4.1 | 4 |
total | $ 9,166.9 | $ 9,505.9 |
Financing Receivable Total percent | 83.00% | 93.00% |
Debt Service Coverage Ratios 1 To 1.20 Times [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | $ 506 | $ 334.3 |
2020 | 361.1 | 137.9 |
2019 | 56 | 89.7 |
2018 | 95.1 | 11.1 |
2017 | 11.1 | |
Prior | 96.3 | 88.8 |
total | $ 1,125.6 | $ 661.8 |
Financing Receivable Total percent | 10.00% | 6.00% |
Debt Service Coverage Ratios Less Than 1 Times [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 127.8 | $ 15.2 |
2019 | 130.4 | 57.9 |
2018 | 222 | |
2017 | 104.3 | 6 |
Prior | 200.3 | 32.1 |
total | $ 784.8 | $ 111.2 |
Financing Receivable Total percent | 7.00% | 1.00% |
Ltv Less Than 70 Percent [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | $ 1,148.2 | $ 1,346.5 |
2020 | 1,451.3 | 1,315 |
2019 | 1,441 | 1,752.8 |
2018 | 1,585.7 | 1,678.7 |
2017 | 1,505.2 | 1,320.5 |
Prior | 2,872.6 | 1,846.3 |
Revolving Loans | 4.1 | 4 |
total | $ 10,008.1 | $ 9,263.8 |
Financing Receivable Total percent | 90.00% | 90.00% |
Ltv 70 To 80 Percent [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | $ 85 | $ 66.2 |
2020 | 133.1 | 348.1 |
2019 | 236.7 | 127.9 |
2018 | 127 | 80 |
2017 | 100.2 | 94.3 |
Prior | 160.9 | 128.5 |
total | $ 842.9 | $ 845 |
Financing Receivable Total percent | 8.00% | 8.00% |
Debt-to-Value Ratio, 80 to 100 Percent [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 91.7 | |
2019 | $ 63.2 | 4.9 |
2018 | 4.8 | 46.8 |
2017 | 47.5 | |
Prior | 26.4 | 26.7 |
total | $ 141.9 | $ 170.1 |
Financing Receivable Total percent | 1.00% | 2.00% |
Ltv Greater Than 100 Percent [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | $ 69.4 | |
2019 | 15 | |
total | $ 84.4 | |
Financing Receivable Total percent | 1.00% |
Investment - Summary of Mortgag
Investment - Summary of Mortgage Loans on Real Estate Industry by Type of Property (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | |||
Loans Receivable Not Part Of Disposal Group Commercial Real Estate ,Gross | $ 11,077.3 | $ 10,278.9 | |
Loans Receivable Not Part Of Disposal Group Residential Industry | [1] | 571.8 | 448.6 |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 11,649.1 | 10,727.5 | |
Apartment [Member] | |||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | |||
Loans Receivable Not Part Of Disposal Group Commercial Real Estate ,Gross | 4,217.3 | 3,905.3 | |
Hotel [Member] | |||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | |||
Loans Receivable Not Part Of Disposal Group Commercial Real Estate ,Gross | 1,043.7 | 882.7 | |
Office [Member] | |||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | |||
Loans Receivable Not Part Of Disposal Group Commercial Real Estate ,Gross | 1,966.3 | 1,569.7 | |
Retail [Member] | |||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | |||
Loans Receivable Not Part Of Disposal Group Commercial Real Estate ,Gross | 2,132.8 | 1,942.4 | |
Warehouse [Member] | |||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | |||
Loans Receivable Not Part Of Disposal Group Commercial Real Estate ,Gross | 1,717.2 | 1,978.8 | |
In Good Standing [Member] | |||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | |||
Loans Receivable Not Part Of Disposal Group Commercial Real Estate ,Gross | [2] | 11,077.3 | 10,278.9 |
Loans Receivable Not Part Of Disposal Group Residential Industry | [1],[2] | 495.7 | 448.6 |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | [2] | 11,573 | 10,727.5 |
In Good Standing [Member] | Apartment [Member] | |||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | |||
Loans Receivable Not Part Of Disposal Group Commercial Real Estate ,Gross | [2] | 4,217.3 | 3,905.3 |
In Good Standing [Member] | Hotel [Member] | |||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | |||
Loans Receivable Not Part Of Disposal Group Commercial Real Estate ,Gross | [2] | 1,043.7 | 882.7 |
In Good Standing [Member] | Office [Member] | |||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | |||
Loans Receivable Not Part Of Disposal Group Commercial Real Estate ,Gross | [2] | 1,966.3 | 1,569.7 |
In Good Standing [Member] | Retail [Member] | |||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | |||
Loans Receivable Not Part Of Disposal Group Commercial Real Estate ,Gross | [2] | 2,132.8 | 1,942.4 |
In Good Standing [Member] | Warehouse [Member] | |||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | |||
Loans Receivable Not Part Of Disposal Group Commercial Real Estate ,Gross | [2] | 1,717.2 | $ 1,978.8 |
Greater Than 90 Days Delinquent [Member] | |||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | |||
Loans Receivable Not Part Of Disposal Group Residential Industry | [1] | 75.1 | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 75.1 | ||
In Process Foreclosure [Member] | |||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | |||
Loans Receivable Not Part Of Disposal Group Residential Industry | [1] | 1 | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 1 | ||
[1] | Includes $69.1 million of loans purchased when the loans were greater than 90 days delinquent and are supported with insurance or other guarantees provided by various governmental programs. | ||
[2] | At June 30, 2021 and December 31, 2020, includes mezzanine loans of $73.3 million and $44.6 million in the Apartment category, $207.7 million and $116.8 million in the Office category, $38.9 million and $33.4 million in the Hotel category, and $49.6 million and $48.1 million in the Warehouse category, respectively. |
Investment - Summary of Mortg_2
Investment - Summary of Mortgage Loans on Real Estate Industry by Type of Property (Parenthetical) (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Greater Than 90 Days Delinquent [Member] | ||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | ||
Loans purchases amount | $ 69.1 | |
Apartment Building [Member] | ||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | ||
Loans in good standing amount | $ 44.6 | |
Office Building [Member] | ||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | ||
Loans in good standing amount | 207.7 | 116.8 |
Hotel [Member] | ||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | ||
Loans in good standing amount | 38.9 | 33.4 |
Warehouse [Member] | ||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | ||
Loans in good standing amount | 49.6 | $ 48.1 |
Mezzaine Loans [Member] | ||
Disclosure Of Loans On Real Estate By Type of Property [Line Items] | ||
Loans in good standing amount | $ 73.3 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative assets, Fair value | $ 1,427.8 | $ 2,184.7 |
Derivative assets, Fair value of collateral | 1,465.1 | 2,124.2 |
Derivative liabilities, Fair value | 0 | 13.1 |
Derivative liabilities, Fair value of collateral | 0.1 | 25.7 |
Derivative, Disbursement obligation | 37.3 | 0 |
Embedded Derivative Financial Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative liability, Not subject to master netting arrangement | 3,725.6 | 7,076 |
Funds Withheld Embedded Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative liability, Not subject to master netting arrangement | $ 372.9 | $ 826.6 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Derivatives Notional Amount Outstanding and Fair Value (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Freestanding derivatives | ||
Assets, Fair Value | $ 1,482.9 | $ 2,219.8 |
Liabilities, Fair Value | 55.2 | 56.4 |
Derivatives related to funds withheld under reinsurance treaties | ||
Assets, Contractual/ Notional Amount | 83,315.4 | 68,381.8 |
Assets, Fair Value | 1,482.9 | 2,219.8 |
Liabilities, Contractual/ Notional Amount | 18,725.7 | 30,939.8 |
Liabilities, Fair Value | 4,153.7 | 7,959 |
Net Fair Value | (2,670.8) | (5,739.2) |
Freestanding Derivatives [Member] | ||
Freestanding derivatives | ||
Assets, Contractual/ Notional Amount | 82,203.1 | 68,299.1 |
Assets, Fair Value | 1,466.1 | 2,219.6 |
Liabilities, Contractual/ Notional Amount | 18,564.7 | 30,170.8 |
Liabilities, Fair Value | 51.8 | 43.1 |
Net Fair Value | 1,414.3 | 2,176.5 |
Freestanding Derivatives [Member] | Cross-Currency Swaps [Member] | ||
Freestanding derivatives | ||
Assets, Contractual/ Notional Amount | 1,113.3 | 1,228.1 |
Assets, Fair Value | 45.7 | 93 |
Liabilities, Contractual/ Notional Amount | 654.1 | 516 |
Liabilities, Fair Value | 34.3 | 34 |
Net Fair Value | 11.4 | 59 |
Freestanding Derivatives [Member] | Equity Index Call Options [Member] | ||
Freestanding derivatives | ||
Assets, Contractual/ Notional Amount | 19,000 | 26,300 |
Assets, Fair Value | 597.6 | 1,127.3 |
Net Fair Value | 597.6 | 1,127.3 |
Freestanding Derivatives [Member] | Equity Index Futures [Member] | ||
Freestanding derivatives | ||
Liabilities, Contractual/ Notional Amount | 15,900 | 27,651 |
Freestanding Derivatives [Member] | Equity Index Put Options [Member] | ||
Freestanding derivatives | ||
Assets, Contractual/ Notional Amount | 35,000 | 27,000 |
Assets, Fair Value | 127.2 | 178 |
Net Fair Value | 127.2 | 178 |
Freestanding Derivatives [Member] | Interest Rate Swaps [Member] | ||
Freestanding derivatives | ||
Assets, Contractual/ Notional Amount | 7,978.1 | 4,250 |
Assets, Fair Value | 516.5 | 721.8 |
Liabilities, Contractual/ Notional Amount | 500 | |
Liabilities, Fair Value | 0.9 | |
Net Fair Value | 516.5 | 720.9 |
Freestanding Derivatives [Member] | Interest Rate Swaps—Cleared [Member] | ||
Freestanding derivatives | ||
Assets, Contractual/ Notional Amount | 1,500 | |
Assets, Fair Value | 0 | |
Liabilities, Contractual/ Notional Amount | 1,500 | |
Liabilities, Fair Value | 8.2 | |
Net Fair Value | 0 | (8.2) |
Freestanding Derivatives [Member] | Put-Swaptions [Member] | ||
Freestanding derivatives | ||
Assets, Contractual/ Notional Amount | 16,000 | 1,000 |
Assets, Fair Value | 179.1 | 99.5 |
Liabilities, Contractual/ Notional Amount | 2,000 | |
Liabilities, Fair Value | 17.5 | |
Net Fair Value | 161.6 | 99.5 |
Freestanding Derivatives [Member] | Treasury Futures [Member] | ||
Freestanding derivatives | ||
Assets, Contractual/ Notional Amount | 1,611.7 | 8,520.5 |
Liabilities, Contractual/ Notional Amount | 10.6 | 3.8 |
Freestanding Derivatives [Member] | Credit Default Swaps [Member] | ||
Freestanding derivatives | ||
Assets, Contractual/ Notional Amount | 0.5 | |
Embedded Derivatives-Product Liabilities [Member] | ||
Embedded derivatives-product liabilities | ||
Liabilities, Fair Value | 3,725.6 | 7,076 |
Net Fair Value | (3,725.6) | (7,076) |
Embedded Derivatives-Product Liabilities [Member] | Va Embedded Derivatives [Member] | ||
Embedded derivatives-product liabilities | ||
Liabilities, Fair Value | 2,235.7 | 5,592.1 |
Net Fair Value | (2,235.7) | (5,592.1) |
Embedded Derivatives-Product Liabilities [Member] | Fia Embedded Derivatives [Member] | ||
Embedded derivatives-product liabilities | ||
Liabilities, Fair Value | 1,489.9 | 1,483.9 |
Net Fair Value | (1,489.9) | (1,483.9) |
Derivatives Related To Funds Withheld Under Reinsurance Treaties [Member] | ||
Derivatives related to funds withheld under reinsurance treaties | ||
Assets, Contractual/ Notional Amount | 1,112.3 | 82.7 |
Assets, Fair Value | 16.8 | 0.2 |
Liabilities, Contractual/ Notional Amount | 161 | 769 |
Liabilities, Fair Value | 376.3 | 839.9 |
Net Fair Value | (359.5) | (839.7) |
Derivatives Related To Funds Withheld Under Reinsurance Treaties [Member] | Cross-Currency Swaps [Member] | ||
Derivatives related to funds withheld under reinsurance treaties | ||
Assets, Contractual/ Notional Amount | 73 | 7.4 |
Assets, Fair Value | 3.4 | |
Liabilities, Contractual/ Notional Amount | 84.9 | 100.7 |
Liabilities, Fair Value | 3.3 | 5.2 |
Net Fair Value | 0.1 | (5.2) |
Derivatives Related To Funds Withheld Under Reinsurance Treaties [Member] | Cross-Currency Forwards [Member] | ||
Derivatives related to funds withheld under reinsurance treaties | ||
Assets, Contractual/ Notional Amount | 1,039.3 | 75.3 |
Assets, Fair Value | 13.4 | 0.2 |
Liabilities, Contractual/ Notional Amount | 76.1 | 668.3 |
Liabilities, Fair Value | 0.1 | 8.1 |
Net Fair Value | 13.3 | (7.9) |
Derivatives Related To Funds Withheld Under Reinsurance Treaties [Member] | Funds Withheld Embedded Derivative [Member] | ||
Derivatives related to funds withheld under reinsurance treaties | ||
Liabilities, Fair Value | 372.9 | 826.6 |
Net Fair Value | $ (372.9) | $ (826.6) |
Derivative Instruments - Summ_2
Derivative Instruments - Summary of Derivative Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivatives excluding funds withheld under reinsurance treaties | $ (1,768.3) | $ (5,890.5) | $ (112.9) | $ (3,342.8) |
Gain (loss) on embedded derivative | (1,373.7) | 3,715.9 | 3,218.5 | (6,536.7) |
Derivatives related to funds withheld under reinsurance treaties | ||||
Total net gains (losses) on derivative instruments including derivative instruments related to funds withheld under reinsurance treaties | (2,310.3) | (6,373.7) | 360.1 | (3,826) |
Derivatives Excluding Funds Withheld Under Reinsurance Treaties [Member] | ||||
Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivatives excluding funds withheld under reinsurance treaties | (1,768.3) | (5,890.5) | (112.9) | (3,342.8) |
Derivatives Excluding Funds Withheld Under Reinsurance Treaties [Member] | Cross-Currency Swaps [Member] | ||||
Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivatives excluding funds withheld under reinsurance treaties | 21.1 | 42.5 | (44.3) | 28.4 |
Derivatives Excluding Funds Withheld Under Reinsurance Treaties [Member] | Equity Index Call Options [Member] | ||||
Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivatives excluding funds withheld under reinsurance treaties | 666.6 | 347.8 | 798.6 | 122.2 |
Derivatives Excluding Funds Withheld Under Reinsurance Treaties [Member] | Equity Index Futures [Member] | ||||
Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivatives excluding funds withheld under reinsurance treaties | (1,376.9) | (6,699.1) | (2,669.7) | (1,067.5) |
Derivatives Excluding Funds Withheld Under Reinsurance Treaties [Member] | Equity Index Put Options [Member] | ||||
Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivatives excluding funds withheld under reinsurance treaties | (259.6) | (3,038.5) | (610.8) | 752.2 |
Derivatives Excluding Funds Withheld Under Reinsurance Treaties [Member] | Interest Rate Swaps [Member] | ||||
Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivatives excluding funds withheld under reinsurance treaties | 116.7 | 45.6 | (148.2) | 690.8 |
Derivatives Excluding Funds Withheld Under Reinsurance Treaties [Member] | Interest Rate Swaps—Cleared [Member] | ||||
Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivatives excluding funds withheld under reinsurance treaties | 35.4 | (50.3) | ||
Derivatives Excluding Funds Withheld Under Reinsurance Treaties [Member] | Put-Swaptions [Member] | ||||
Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivatives excluding funds withheld under reinsurance treaties | 394.9 | 12 | 103.2 | 265.1 |
Derivatives Excluding Funds Withheld Under Reinsurance Treaties [Member] | Treasury Futures [Member] | ||||
Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivatives excluding funds withheld under reinsurance treaties | (0.1) | 90.6 | (772.7) | 1,978.8 |
Derivatives Excluding Funds Withheld Under Reinsurance Treaties [Member] | Fia Embedded Derivatives [Member] | ||||
Derivatives excluding funds withheld under reinsurance treaties | ||||
Gain (loss) on embedded derivative | (1.7) | (202.3) | (2.1) | 31.9 |
Derivatives Excluding Funds Withheld Under Reinsurance Treaties [Member] | Va Embedded Derivatives [Member] | ||||
Derivatives excluding funds withheld under reinsurance treaties | ||||
Gain (loss) on embedded derivative | (1,364.7) | 3,510.9 | 3,283.4 | (6,144.7) |
Derivatives Related To Funds Withheld Under Reinsurance Treaties [Member] | ||||
Derivatives related to funds withheld under reinsurance treaties | ||||
Derivatives related to funds withheld under reinsurance treaties | (542) | (483.2) | 473 | (483.2) |
Derivatives Related To Funds Withheld Under Reinsurance Treaties [Member] | Cross-Currency Swaps [Member] | ||||
Derivatives related to funds withheld under reinsurance treaties | ||||
Derivatives related to funds withheld under reinsurance treaties | 7.7 | 5.9 | ||
Derivatives Related To Funds Withheld Under Reinsurance Treaties [Member] | Treasury Futures [Member] | ||||
Derivatives related to funds withheld under reinsurance treaties | ||||
Derivatives related to funds withheld under reinsurance treaties | (204.2) | (204.2) | ||
Derivatives Related To Funds Withheld Under Reinsurance Treaties [Member] | Cross-Currency Forwards [Member] | ||||
Derivatives related to funds withheld under reinsurance treaties | ||||
Derivatives related to funds withheld under reinsurance treaties | (5.4) | 13.4 | ||
Derivatives Related To Funds Withheld Under Reinsurance Treaties [Member] | Funds Withheld Embedded Derivative [Member] | ||||
Derivatives related to funds withheld under reinsurance treaties | ||||
Derivatives related to funds withheld under reinsurance treaties | $ (544.3) | $ (279) | $ 453.7 | $ (279) |
Derivative Instruments - Summ_3
Derivative Instruments - Summary of Offsetting Financial Assets and Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Financial Assets: | ||
Gross Amounts Recognized | $ 1,482.9 | $ 2,219.8 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 1,482.9 | 2,219.8 |
Financial Instruments | 55.2 | 35.1 |
Cash Collateral | 752.3 | 1,097.9 |
Securities Collateral | 641.1 | 890 |
Net Amount | 34.3 | 196.8 |
Financial Liabilities: | ||
Gross Amounts Recognized, Freestanding derivative liabilities | 55.2 | 56.4 |
Gross Amounts Recognized, Securities loaned | 23.5 | 13.3 |
Gross Amounts Recognized, Repurchase agreements | 2,257.1 | 1,100 |
Gross Amounts Recognized, Total financial liabilities | 2,335.8 | 1,169.7 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets, Freestanding derivative liabilities | 55.2 | 56.4 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets, Securities loaned | 23.5 | 13.3 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets, Repurchase agreements | 2,257.1 | 1,100 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets, Total financial liabilities | 2,335.8 | 1,169.7 |
Financial Instruments, Freestanding derivative liabilities | 55.2 | 35.1 |
Financial Instruments, Total financial liabilities | 55.2 | 35.1 |
Cash Collateral, Freestanding derivative liabilities | 13.1 | |
Cash Collateral, Securities loaned | 23.5 | 13.3 |
Cash Collateral, Total financial liabilities | 23.5 | 26.4 |
Securities Collateral, Repurchase agreements | 2,257.1 | 1,100 |
Securities Collateral, Total financial liabilities | $ 2,257.1 | 1,100 |
Net Amount, Freestanding derivative liabilities | 8.2 | |
Net Amount, Total financial liabilities | $ 8.2 |
Fair Value Measurements - Addi
Fair Value Measurements - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Fair Value Disclosures [Line Items] | |||||
Debt Securities, Available-for-sale | $ 52,472.6 | $ 52,472.6 | $ 59,075 | ||
Fair value of assets, Transfers out of Level 3 | 13.4 | $ 27.7 | 22.9 | $ 0.1 | |
Fair value of assets, Transfers into Level 3 | 21.1 | $ 0 | $ 18.2 | $ 38.9 | |
Volatility measurement assumption duration | 10 years | ||||
Historical volatility measurement assumption duration | 15 years | ||||
PPM America [Member] | |||||
Fair Value Disclosures [Line Items] | |||||
Fair value option fair value carrying amount Debt Securities | 1,267.6 | $ 1,267.6 | 1,108.9 | ||
Funds Withheld Assets [Member] | |||||
Fair Value Disclosures [Line Items] | |||||
Fair value option fair value carrying amount assets | $ 3,703.6 | $ 3,703.6 | 3,622 | ||
Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value Disclosures [Line Items] | |||||
Federal home loan bank Capital stock share Price | $ 100 | $ 100 | |||
Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value Disclosures [Line Items] | |||||
Debt Securities, Available-for-sale | $ 2 | $ 2 | $ 2 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Reconciliation of Level 3 Assets and Liabilities Measured on a Recurring Basis (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Purchases, Sales,Issuances and Settlements, assets | $ (20.9) | $ (47.6) | $ (43.4) | $ (115.3) |
Embedded Derivative Liabilities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Opening Fair Value, liabilities | (869.6) | (12,645.4) | (5,592.1) | (2,790.4) |
Net Income, liabilities | (1,366.1) | 3,577.6 | 3,356.4 | (6,277.4) |
Ending Fair Value, liabilities | (2,235.7) | (9,067.8) | (2,235.7) | (9,067.8) |
Funds Withheld Payable Under Reinsurance Treaties [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Opening Fair Value, liabilities | (3,485.9) | (3,773) | (4,453.1) | (3,760.3) |
Net Income, liabilities | (584.6) | (346.4) | 329.7 | (402.2) |
Other Comprehensive Income, liabilities | 0.2 | 1.2 | 1.8 | (1.4) |
Purchases, Sales,Issuances and Settlements, liabilities | (11.2) | 62.9 | 40.1 | 108.6 |
Ending Fair Value, liabilities | (4,081.5) | (4,055.3) | (4,081.5) | (4,055.3) |
Debt Securities [Member] | Corporate Debt Securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Opening Fair Value ,assets | 17.7 | 45.8 | 28.7 | |
Net Income, assets | 1.2 | (6.2) | 1.8 | (5.3) |
Purchases, Sales,Issuances and Settlements, assets | 4.9 | 38.9 | 5.7 | 17.3 |
Transfers in and/or (outof) Level 3, assets | 7.4 | (27.6) | (5) | 38.9 |
Ending Fair Value ,assets | 31.2 | 50.9 | 31.2 | 50.9 |
Debt Securities [Member] | Other Asset-Backed Securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Opening Fair Value ,assets | 0.1 | 0.1 | ||
Ending Fair Value ,assets | 0.1 | 0.1 | ||
Equity Securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Opening Fair Value ,assets | 101.5 | 154.7 | 103.6 | 182.9 |
Net Income, assets | 8.9 | (12.6) | 6.8 | (33.1) |
Purchases, Sales,Issuances and Settlements, assets | (7.5) | (23.2) | (7.5) | (30.9) |
Transfers in and/or (outof) Level 3, assets | 0.3 | (0.1) | 0.3 | (0.1) |
Ending Fair Value ,assets | 103.2 | 118.8 | 103.2 | 118.8 |
Limited Partnerships [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Opening Fair Value ,assets | 0.8 | 1.1 | 0.8 | 1.1 |
Net Income, assets | (0.2) | (0.2) | ||
Purchases, Sales,Issuances and Settlements, assets | (0.1) | (0.1) | ||
Ending Fair Value ,assets | 0.7 | 0.9 | 0.7 | 0.9 |
GMIB Reinsurance Recoverable [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Opening Fair Value ,assets | 266 | 502.1 | 340.4 | 302.8 |
Net Income, assets | 1.2 | (66.6) | (73.2) | 132.7 |
Ending Fair Value ,assets | 267.2 | 435.5 | 267.2 | 435.5 |
Policy Loans [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Opening Fair Value ,assets | 3,486.1 | 3,602.2 | 3,454.2 | 3,585.8 |
Net Income, assets | 69.9 | 66.1 | 125.1 | 120.9 |
Purchases, Sales,Issuances and Settlements, assets | (18.2) | (63.3) | (41.5) | (101.7) |
Ending Fair Value ,assets | $ 3,537.8 | $ 3,605 | $ 3,537.8 | $ 3,605 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Fair Value and Carrying Value of the Financial Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Assets | |||
Debt securities | $ 128.2 | ||
Equity securities | 239.3 | $ 193.1 | |
Policy loans | 4,581.1 | 4,523.5 | |
Freestanding derivative instruments | 1,482.9 | 2,219.8 | |
GMIB reinsurance recoverable | 34,246.7 | 35,269.5 | |
Separate account assets | 239,806.1 | 219,062.9 | |
Liabilities | |||
Annuity reserves | 823.4 | 859.3 | |
Securities lending payable | 2,257.1 | 1,100 | |
Freestanding derivative instruments | 55.2 | 56.4 | |
Separate account liabilities | 239,806.1 | 219,062.9 | |
Carrying Value | |||
Assets | |||
Debt securities | [1] | 54,020.8 | 60,457.4 |
Equity securities | 239.3 | 193.1 | |
Mortgage loans | 11,649.1 | 10,727.5 | |
Limited partnerships | 2,391.6 | 1,991.3 | |
Policy loans | [1] | 4,581.1 | 4,523.5 |
Freestanding derivative instruments | 1,482.9 | 2,219.8 | |
Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock | 125.4 | 125.4 | |
Cash and cash equivalents | 1,534.6 | 2,018.7 | |
GMIB reinsurance recoverable | 267.2 | 340.4 | |
Separate account assets | 239,806.1 | 219,062.9 | |
Liabilities | |||
Annuity reserves | [2] | 40,989.1 | 45,638.8 |
Reserves for guaranteed investment contracts | [3] | 1,099.8 | 1,275.5 |
Trust instruments supported by funding agreements | [3] | 6,331.7 | 8,383.9 |
Federal Home Loan Bank funding agreements | [3] | 1,478.4 | 1,478.4 |
Funds withheld payable under reinsurance treaties | [1] | 30,321.8 | 31,971.5 |
Debt | 317.7 | 322 | |
Securities lending payable | 23.5 | 13.3 | |
Freestanding derivative instruments | 55.2 | 56.4 | |
Repurchase agreements | 2,257.1 | 1,100 | |
Federal Home Loan Bank advances | 250 | 380 | |
Separate account liabilities | 239,806.1 | 219,062.9 | |
Fair Value | |||
Assets | |||
Debt securities | [1] | 54,020.8 | 60,457.4 |
Equity securities | 239.3 | 193.1 | |
Mortgage loans | 12,151.4 | 11,348.9 | |
Limited partnerships | 2,391.6 | 1,991.3 | |
Policy loans | [1] | 4,581.1 | 4,523.5 |
Freestanding derivative instruments | 1,482.9 | 2,219.8 | |
Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock | 125.4 | 125.4 | |
Cash and cash equivalents | 1,534.6 | 2,018.7 | |
GMIB reinsurance recoverable | 267.2 | 340.4 | |
Separate account assets | 239,806.1 | 219,062.9 | |
Liabilities | |||
Annuity reserves | [2] | 49,051.4 | 54,005.7 |
Reserves for guaranteed investment contracts | [3] | 1,143.3 | 1,332.1 |
Trust instruments supported by funding agreements | [3] | 6,587.9 | 8,701.8 |
Federal Home Loan Bank funding agreements | [3] | 1,468.3 | 1,421.3 |
Funds withheld payable under reinsurance treaties | [1] | 30,321.8 | 31,971.5 |
Debt | 397.7 | 412.3 | |
Securities lending payable | 23.5 | 13.3 | |
Freestanding derivative instruments | 55.2 | 56.4 | |
Repurchase agreements | 2,257.1 | 1,100 | |
Federal Home Loan Bank advances | 250 | 380 | |
Separate account liabilities | $ 239,806.1 | $ 219,062.9 | |
[1] | Includes items carried at fair value under the fair value option and trading securities. | ||
[2] | Annuity reserves represent only the components of other contract holder funds and reserves for future policy benefits and claims payable that are considered to be financial instruments. | ||
[3] | Included as a component of other contract holder funds on the condensed consolidated balance sheets. |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | ||
Assets | ||||
Debt securities | $ 128.2 | |||
Equity securities | 239.3 | $ 193.1 | ||
Policy loans | 4,581.1 | 4,523.5 | ||
Freestanding derivative instruments | 1,482.9 | 2,219.8 | ||
GMIB reinsurance recoverable | 34,246.7 | 35,269.5 | ||
Separate account assets | 239,806.1 | 219,062.9 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Freestanding derivative instruments | 55.2 | 56.4 | ||
Fair Value, Recurring [Member] | ||||
Assets | ||||
Equity securities | 239.3 | 193.1 | ||
Limited partnerships | 185.3 | 0.8 | ||
Policy loans | 3,537.8 | 3,454.2 | ||
Freestanding derivative instruments | 1,482.9 | 2,219.8 | ||
Cash and cash equivalents | 1,534.6 | 2,018.7 | ||
GMIB reinsurance recoverable | 267.2 | 340.4 | ||
Separate account assets | 239,806.1 | 219,062.9 | ||
Total | 301,074 | 287,747.3 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Embedded derivative liabilities | 3,725.6 | [1] | 7,076 | [2] |
Funds withheld payable under reinsurance treaties | 4,081.5 | [3] | 4,453.1 | [1] |
Freestanding derivative instruments | 55.2 | 56.4 | ||
Total | 7,862.3 | 11,585.5 | ||
Fair Value, Recurring [Member] | U.S. Government Securities [Member] | ||||
Assets | ||||
Debt securities | 4,468.5 | 5,126 | ||
Fair Value, Recurring [Member] | Other Government Securities [Member] | ||||
Assets | ||||
Debt securities | 1,649 | 1,696.9 | ||
Fair Value, Recurring [Member] | Public Utilities [Member] | ||||
Assets | ||||
Debt securities | 6,646.5 | 7,297.7 | ||
Fair Value, Recurring [Member] | Corporate Securities [Member] | ||||
Assets | ||||
Debt securities | 31,844.5 | 36,440 | ||
Fair Value, Recurring [Member] | Residential Mortgage Backed Securities [Member] | ||||
Assets | ||||
Debt securities | 834.6 | 984.9 | ||
Fair Value, Recurring [Member] | Commercial Mortgage Backed Securities [Member] | ||||
Assets | ||||
Debt securities | 2,871 | 3,322.6 | ||
Fair Value, Recurring [Member] | Asset-backed Securities, Securitized Loans and Receivables [Member] | ||||
Assets | ||||
Debt securities | 5,706.7 | 5,589.3 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Assets | ||||
Equity securities | 92.3 | 65.4 | ||
Cash and cash equivalents | 1,534.6 | 2,018.7 | ||
Total | 6,095.4 | 7,210.1 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Government Securities [Member] | ||||
Assets | ||||
Debt securities | 4,468.5 | 5,126 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Assets | ||||
Equity securities | 43.8 | 24.1 | ||
Limited partnerships | 184.6 | |||
Freestanding derivative instruments | 1,482.9 | 2,219.8 | ||
Separate account assets | 239,806.1 | 219,062.9 | ||
Total | 291,038.4 | 276,609.4 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Embedded derivative liabilities | 1,489.9 | [1] | 1,483.9 | [2] |
Freestanding derivative instruments | 55.2 | 56.4 | ||
Total | 1,545.1 | 1,540.3 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Government Securities [Member] | ||||
Assets | ||||
Debt securities | 1,649 | 1,696.9 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Public Utilities [Member] | ||||
Assets | ||||
Debt securities | 6,646.5 | 7,297.7 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Securities [Member] | ||||
Assets | ||||
Debt securities | 31,813.3 | 36,411.3 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Residential Mortgage Backed Securities [Member] | ||||
Assets | ||||
Debt securities | 834.6 | 984.9 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Mortgage Backed Securities [Member] | ||||
Assets | ||||
Debt securities | 2,871 | 3,322.6 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities, Securitized Loans and Receivables [Member] | ||||
Assets | ||||
Debt securities | 5,706.6 | 5,589.2 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Assets | ||||
Equity securities | 103.2 | 103.6 | ||
Limited partnerships | 0.7 | 0.8 | ||
Policy loans | 3,537.8 | 3,454.2 | ||
GMIB reinsurance recoverable | 267.2 | 340.4 | ||
Total | 3,940.2 | 3,927.8 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Embedded derivative liabilities | 2,235.7 | [1],[4] | 5,592.1 | [2],[5] |
Funds withheld payable under reinsurance treaties | 4,081.5 | [3] | 4,453.1 | [1] |
Total | 6,317.2 | 10,045.2 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Securities [Member] | ||||
Assets | ||||
Debt securities | 31.2 | 28.7 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Asset-backed Securities, Securitized Loans and Receivables [Member] | ||||
Assets | ||||
Debt securities | $ 0.1 | $ 0.1 | ||
[1] | Includes the embedded derivative liabilities of $2,235.7 million related to GMWB reserves included in reserves for future policy benefits and claims payable and $1,489.9 million of fixed index annuities included in other contract holder funds on the condensed consolidated balance sheets. | |||
[2] | Includes the embedded derivative liabilities of $5,592.1 million related to GMWB reserves included in reserves for future policy benefits and claims payable and $1,483.9 million of fixed index annuities included in other contract holder funds on the condensed consolidated balance sheets. | |||
[3] | Includes the Athene embedded derivative liability of $372.9 million and funds withheld payable under reinsurance treaties at fair value under the fair value option. | |||
[4] | Includes the embedded derivative related to GMWB reserves. | |||
[5] | Includes the embedded derivative related to GMAB reserves. |
Fair Value Measurements - Sum_4
Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Reinsurance Agreement with Athene [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Funds Held under Reinsurance Agreements, Liability | $ 372.9 | $ 826.6 |
Guaranteed Minimum Withdrawal Benefit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded derivative liabilities | 2,235.7 | 5,592.1 |
Annuitization Benefit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded derivative liabilities | $ 1,489.9 | $ 1,483.9 |
Fair Value Measurements - Sum_5
Fair Value Measurements - Summary of Level 3 Assets and Liabilities Measured at Fair Value with their Corresponding Pricing Sources (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | ||
Assets | ||||
Debt securities | $ 128.2 | |||
Equity securities | 239.3 | $ 193.1 | ||
Policy loans | 4,581.1 | 4,523.5 | ||
GMIB reinsurance recoverable | 34,246.7 | 35,269.5 | ||
Fair Value, Recurring [Member] | ||||
Assets | ||||
Equity securities | 239.3 | 193.1 | ||
Limited partnerships | 185.3 | 0.8 | ||
Policy loans | 3,537.8 | 3,454.2 | ||
GMIB reinsurance recoverable | 267.2 | 340.4 | ||
Total | 301,074 | 287,747.3 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Embedded derivative liabilities | 3,725.6 | [1] | 7,076 | [2] |
Funds withheld payable under reinsurance treaties | 4,081.5 | [3] | 4,453.1 | [1] |
Total | 7,862.3 | 11,585.5 | ||
Fair Value, Recurring [Member] | Corporate Securities [Member] | ||||
Assets | ||||
Debt securities | 31,844.5 | 36,440 | ||
Fair Value, Recurring [Member] | Other Asset-Backed Securities [Member] | ||||
Assets | ||||
Debt securities | 5,706.7 | 5,589.3 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Assets | ||||
Equity securities | 103.2 | 103.6 | ||
Limited partnerships | 0.7 | 0.8 | ||
Policy loans | 3,537.8 | 3,454.2 | ||
GMIB reinsurance recoverable | 267.2 | 340.4 | ||
Total | 3,940.2 | 3,927.8 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Embedded derivative liabilities | 2,235.7 | [1],[4] | 5,592.1 | [2],[5] |
Funds withheld payable under reinsurance treaties | 4,081.5 | [3] | 4,453.1 | [1] |
Total | 6,317.2 | 10,045.2 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Securities [Member] | ||||
Assets | ||||
Debt securities | 31.2 | 28.7 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other Asset-Backed Securities [Member] | ||||
Assets | ||||
Debt securities | 0.1 | 0.1 | ||
Internal [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Assets | ||||
Equity securities | 1.2 | 1.2 | ||
Limited partnerships | 0.7 | 0.8 | ||
Policy loans | 3,537.8 | 3,454.2 | ||
GMIB reinsurance recoverable | 267.2 | 340.4 | ||
Total | 3,807 | 3,796.6 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Embedded derivative liabilities | 2,235.7 | [4] | 5,592.1 | [5] |
Funds withheld payable under reinsurance treaties | 4,081.5 | 4,453.1 | ||
Total | 6,317.2 | 10,045.2 | ||
Internal [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other Asset-Backed Securities [Member] | ||||
Assets | ||||
Debt securities | 0.1 | |||
External [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Assets | ||||
Equity securities | 102 | 102.4 | ||
Total | 133.2 | 131.2 | ||
External [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Securities [Member] | ||||
Assets | ||||
Debt securities | $ 31.2 | 28.7 | ||
External [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other Asset-Backed Securities [Member] | ||||
Assets | ||||
Debt securities | $ 0.1 | |||
[1] | Includes the embedded derivative liabilities of $2,235.7 million related to GMWB reserves included in reserves for future policy benefits and claims payable and $1,489.9 million of fixed index annuities included in other contract holder funds on the condensed consolidated balance sheets. | |||
[2] | Includes the embedded derivative liabilities of $5,592.1 million related to GMWB reserves included in reserves for future policy benefits and claims payable and $1,483.9 million of fixed index annuities included in other contract holder funds on the condensed consolidated balance sheets. | |||
[3] | Includes the Athene embedded derivative liability of $372.9 million and funds withheld payable under reinsurance treaties at fair value under the fair value option. | |||
[4] | Includes the embedded derivative related to GMWB reserves. | |||
[5] | Includes the embedded derivative related to GMAB reserves. |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Significant Unobservable Inputs Used to Calculate Level 3 Fair Value Assets and Liabilities (Detail) $ in Millions | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
GMIB Reinsurance Recoverable, Fair value | $ 34,246.7 | $ 35,269.5 | |
Valuation Technique, Discounted Cash Flow [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
GMIB Reinsurance Recoverable, Fair value | 267.2 | 340.4 | |
Embedded derivative liabilities, Fair Value | $ 2,235.7 | $ 5,592.1 | |
Valuation Technique, Discounted Cash Flow [Member] | Maximum [Member] | Measurement Input, Mortality Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
GMIB reinsurance recoverable | [1] | 23.52 | 23.52 |
Embedded derivative liabilities | [1] | 21.53 | 21.53 |
Valuation Technique, Discounted Cash Flow [Member] | Maximum [Member] | Measurement Input, Lapse Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
GMIB reinsurance recoverable | [2] | 9.23 | 9.20 |
Embedded derivative liabilities | [2] | 30.26 | 30.30 |
Valuation Technique, Discounted Cash Flow [Member] | Maximum [Member] | Measurement Input, Utilization Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
GMIB reinsurance recoverable | [3] | 20 | 20 |
Embedded derivative liabilities | [3] | 100 | 100 |
Valuation Technique, Discounted Cash Flow [Member] | Maximum [Member] | Measurement Input, Withdrawal Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
GMIB reinsurance recoverable | [4] | 4.50 | 4.50 |
Embedded derivative liabilities | [4] | 94.75 | 95 |
Valuation Technique, Discounted Cash Flow [Member] | Maximum [Member] | Measurement Input, Entity Credit Risk [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
GMIB reinsurance recoverable | [5] | 1.41 | 1.57 |
Embedded derivative liabilities | [5] | 1.41 | 1.57 |
Valuation Technique, Discounted Cash Flow [Member] | Maximum [Member] | Measurement Input Long Term Equity Volatilities | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
GMIB reinsurance recoverable | [6] | 22.04 | 22.47 |
Embedded derivative liabilities | [6] | 22.04 | 22.47 |
Valuation Technique, Discounted Cash Flow [Member] | Minimum [Member] | Measurement Input, Mortality Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
GMIB reinsurance recoverable | [1] | 0.01 | 0.01 |
Embedded derivative liabilities | [1] | 0.04 | 0.04 |
Valuation Technique, Discounted Cash Flow [Member] | Minimum [Member] | Measurement Input, Lapse Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
GMIB reinsurance recoverable | [2] | 3.33 | 3.30 |
Embedded derivative liabilities | [2] | 0.16 | 0.20 |
Valuation Technique, Discounted Cash Flow [Member] | Minimum [Member] | Measurement Input, Utilization Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
GMIB reinsurance recoverable | [3] | 0 | 0 |
Embedded derivative liabilities | [3] | 5 | 5 |
Valuation Technique, Discounted Cash Flow [Member] | Minimum [Member] | Measurement Input, Withdrawal Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
GMIB reinsurance recoverable | [4] | 3.75 | 3.75 |
Embedded derivative liabilities | [4] | 56 | 56 |
Valuation Technique, Discounted Cash Flow [Member] | Minimum [Member] | Measurement Input, Entity Credit Risk [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
GMIB reinsurance recoverable | [5] | 0.09 | 0.33 |
Embedded derivative liabilities | [5] | 0.09 | 0.33 |
Valuation Technique, Discounted Cash Flow [Member] | Minimum [Member] | Measurement Input Long Term Equity Volatilities | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
GMIB reinsurance recoverable | [6] | 18.50 | 18.50 |
Embedded derivative liabilities | [6] | 18.50 | 18.50 |
[1] | Mortality rates vary by attained age, tax qualification status, GMWB benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied. | ||
[2] | Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and optional benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, with lower lapse applying when contracts are more in-the-money. Lapse rates are also adjusted to reflect lower lapse expectations when GMWB benefits are utilized. | ||
[3] | The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money. | ||
[4] | The withdrawal rate represents the utilization rate of the contract’s free partial withdrawal provision (GMIB) or the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount (GMWB). Withdrawal rates on contracts with a GMIB vary based on the product type and duration. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions. | ||
[5] | Nonperformance risk spread varies by duration. | ||
[6] | Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available. |
Fair Value Measurements - Sum_6
Fair Value Measurements - Summary of Gross Components of Purchases, Sales, Issuances and Settlements, net (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Assets | ||||
Purchases, Assets | $ 5.2 | $ 40.6 | $ 6.1 | $ 21.2 |
Sales, Assets | (7.9) | (24.9) | (8) | (34.8) |
Issuances, Assets | 8.1 | 9.6 | 36.2 | |
Settlements, Assets | (26.3) | (72.9) | (77.7) | |
Total Assets | (20.9) | (47.6) | (43.4) | (115.3) |
Funds Withheld Payable under Reinsurance Treaties [Member] | ||||
Liabilities | ||||
Issuances, liabilities | (128.7) | (10) | (211.2) | (52.8) |
Settlements, liabilities | 117.5 | 72.9 | 251.3 | 161.4 |
Total, liabilities | (11.2) | 62.9 | 40.1 | 108.6 |
Debt Securities [Member] | Corporate Debt Securities [Member] | ||||
Assets | ||||
Purchases, Assets | 5.2 | 39 | 6.1 | 19.6 |
Sales, Assets | (0.3) | (0.1) | (0.4) | (2.3) |
Total Assets | 4.9 | 38.9 | 5.7 | 17.3 |
Equity Securities [Member] | ||||
Assets | ||||
Purchases, Assets | 1.6 | 1.6 | ||
Sales, Assets | (7.5) | (24.8) | (7.5) | (32.5) |
Total Assets | (7.5) | (23.2) | (7.5) | (30.9) |
Limited partnerships [Member] | ||||
Assets | ||||
Sales, Assets | (0.1) | (0.1) | ||
Total Assets | (0.1) | (0.1) | ||
Policy Loans [Member] | ||||
Assets | ||||
Issuances, Assets | 8.1 | 9.6 | 36.2 | 51.7 |
Settlements, Assets | (26.3) | (72.9) | (77.7) | (153.4) |
Total Assets | $ (18.2) | $ (63.3) | $ (41.5) | $ (101.7) |
Fair Value Measurements - Sum_7
Fair Value Measurements - Summary of Portion of Gain Losses included in Net Income or Other Comprehensive Income Attributable to the Change in Unrealized Gain and Losses on Level 3 Financial Instruments Still Held (Detail) - Level 3 - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Embedded Derivative Financial Instruments | ||||
Liabilities | ||||
Included in Net Income | $ (1,366.1) | $ 3,577.6 | $ 3,356.4 | $ (6,277.4) |
Funds Withheld Payable under Reinsurance Treaties [Member] | ||||
Liabilities | ||||
Included in Net Income | (542.5) | (277.9) | 455.5 | (280.5) |
Equity Securities [Member] | ||||
Assets | ||||
Included in Net Income | 8.9 | (12.7) | 6.8 | (33) |
Limited Partnerships [Member] | ||||
Assets | ||||
Included in Net Income | (0.2) | (0.2) | ||
GMIB Reinsurance Recoverable [Member] | ||||
Assets | ||||
Included in Net Income | 1.2 | (66.6) | (73.2) | 132.7 |
Funds Withheld Reinsurance Assets [Member] | ||||
Assets | ||||
Included in Net Income | 69.9 | 66.1 | 125.1 | 120.9 |
Corporate Debt Securities [Member] | Debt Securities [Member] | ||||
Assets | ||||
Included in Net Income | $ 1.1 | $ (5.9) | $ 1.7 | $ (5.3) |
Fair Value Measurements - Sum_8
Fair Value Measurements - Summary of Fair Value of Financial Instruments Carried at Other Than Fair Value (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Assets | |||
Policy loans | $ 4,581.1 | $ 4,523.5 | |
Liabilities | |||
Annuity reserves | 823.4 | 859.3 | |
Securities lending payable | 2,257.1 | 1,100 | |
Separate account liabilities | 239,806.1 | 219,062.9 | |
Carrying Value | |||
Assets | |||
Mortgage loans | 11,649.1 | 10,727.5 | |
Policy loans | [1] | 4,581.1 | 4,523.5 |
FHLB capital stock | 125.4 | 125.4 | |
Liabilities | |||
Annuity reserves | [2] | 40,989.1 | 45,638.8 |
Reserves for guaranteed investment contracts | [3] | 1,099.8 | 1,275.5 |
Trust instruments supported by funding agreements | [3] | 6,331.7 | 8,383.9 |
Federal Home Loan Bank funding agreements | [3] | 1,478.4 | 1,478.4 |
Funds withheld payable under reinsurance treaties | [1] | 30,321.8 | 31,971.5 |
Debt- all other | 317.7 | 322 | |
Securities lending payable | 23.5 | 13.3 | |
Federal Home Loan Bank advances | 250 | 380 | |
Repurchase agreements | 2,257.1 | 1,100 | |
Separate account liabilities | 239,806.1 | 219,062.9 | |
Carrying Value | Level 1 | |||
Assets | |||
FHLB capital stock | 125.4 | 125.4 | |
Carrying Value | Level 2 | |||
Liabilities | |||
Funds withheld payable under reinsurance treaties | 26,240.3 | 27,518.4 | |
Debt- all other | 317.7 | 322 | |
Securities lending payable | 23.5 | 13.3 | |
Federal Home Loan Bank advances | 250 | 380 | |
Repurchase agreements | 2,257.1 | 1,100 | |
Separate account liabilities | [4] | 239,806.1 | 219,062.9 |
Carrying Value | Level 3 | |||
Assets | |||
Mortgage loans | 11,649.1 | 10,727.5 | |
Policy loans | 1,043.3 | 1,069.3 | |
Liabilities | |||
Annuity reserves | [2] | 37,263.5 | 38,562.8 |
Reserves for guaranteed investment contracts | [3] | 1,099.8 | 1,275.5 |
Trust instruments supported by funding agreements | [3] | 6,331.7 | 8,383.9 |
Federal Home Loan Bank funding agreements | [3] | 1,478.4 | 1,478.4 |
Fair Value | Level 1 | |||
Assets | |||
FHLB capital stock | 125.4 | 125.4 | |
Fair Value | Level 2 | |||
Liabilities | |||
Funds withheld payable under reinsurance treaties | 26,240.3 | 27,518.4 | |
Debt- all other | 397.7 | 412.3 | |
Securities lending payable | 23.5 | 13.3 | |
Federal Home Loan Bank advances | 250 | 380 | |
Repurchase agreements | 2,257.1 | 1,100 | |
Separate account liabilities | [4] | 239,806.1 | 219,062.9 |
Fair Value | Level 3 | |||
Assets | |||
Mortgage loans | 12,151.4 | 11,348.9 | |
Policy loans | 1,043.3 | 1,069.3 | |
Liabilities | |||
Annuity reserves | [2] | 45,325.8 | 46,929.7 |
Reserves for guaranteed investment contracts | [3] | 1,143.3 | 1,332.1 |
Trust instruments supported by funding agreements | [3] | 6,587.9 | 8,701.8 |
Federal Home Loan Bank funding agreements | [3] | $ 1,468.3 | $ 1,421.3 |
[1] | Includes items carried at fair value under the fair value option and trading securities. | ||
[2] | Annuity reserves represent only the components of other contract holder funds and reserves for future policy benefits and claims payable that are considered to be financial instruments. | ||
[3] | Included as a component of other contract holder funds on the condensed consolidated balance sheets. | ||
[4] | The values of separate account liabilities are set equal to the values of separate account assets. |
Deferred Acquisition Costs - Su
Deferred Acquisition Costs - Summary of Acquisition Costs (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||
Balance, beginning of period | $ 13,897 | $ 12,336.8 |
Deferrals of acquisition costs | 400.3 | 351.5 |
Amortization related to: | ||
Operating amortization | (94.4) | (175.1) |
Non-operating amortization | (453.1) | 631.1 |
Write-off related to Athene transaction | (625.8) | |
Total amortization (expense) benefit | (547.5) | (169.8) |
Unrealized investment (gains) losses | 63.5 | 90.8 |
Balance, end of period | $ 13,813.3 | $ 12,609.3 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) $ in Millions | Jun. 18, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)treaties | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Effects of Reinsurance [Line Items] | ||||||
Ceded premium | $ 2,046.7 | $ 2,046.7 | ||||
Funds With Held Coinsurance Agreement [Member] | ||||||
Effects of Reinsurance [Line Items] | ||||||
Ceded premium | $ 6.3 | |||||
Assets held as collateral in the segregated custody account | $ 26,600 | $ 28,300 | ||||
Funds held under reinsurance agreements, Asset, Additions | $ 25,600 | |||||
Reinsurance, Loss on uncollectible accounts in period, Amount | $ 28.5 | |||||
Swiss Reinsurance Company Ltd [Member] | ||||||
Effects of Reinsurance [Line Items] | ||||||
Percentage of basis of reinsurance | 100.00% | |||||
Number of treaties | treaties | 3 | |||||
Jackson [Member] | Athene Life Re Ltd [Member] | Funds With Held Coinsurance Agreement [Member] | ||||||
Effects of Reinsurance [Line Items] | ||||||
Percentage of basis of reinsurance | 100.00% | |||||
Ceding commission | $ 1,200 | |||||
Funds held under reinsurance agreements, Asset, Additions | 69.5 | |||||
Jackson [Member] | Athene Life Re Ltd [Member] | Funds With Held Coinsurance Agreement [Member] | Letter of Credit [Member] | ||||||
Effects of Reinsurance [Line Items] | ||||||
Line of credit facility, Maximum borrowing capacity | $ 1,200 |
Reinsurance - Summary of Assets
Reinsurance - Summary of Assets and Liabilities were Held in Support of Reserves Under Funds Withheld Reinsurance Agreements (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Disclosure Of Assets And Liabilities Were Held In Support Of Reserves Under Funds Withheld Reinsurance Agreements [Line Items] | |||
Assets | [1] | $ 30,194.7 | $ 31,859.9 |
Funds Withheld Assets [Member] | |||
Disclosure Of Assets And Liabilities Were Held In Support Of Reserves Under Funds Withheld Reinsurance Agreements [Line Items] | |||
Liabilities | [2] | 30,321.8 | 31,971.5 |
Funds Withheld Assets [Member] | Debt Securities [Member] | |||
Disclosure Of Assets And Liabilities Were Held In Support Of Reserves Under Funds Withheld Reinsurance Agreements [Line Items] | |||
Assets | 21,170.3 | 24,642.4 | |
Funds Withheld Assets [Member] | Equity Securities [Member] | |||
Disclosure Of Assets And Liabilities Were Held In Support Of Reserves Under Funds Withheld Reinsurance Agreements [Line Items] | |||
Assets | 84.5 | 42.2 | |
Funds Withheld Assets [Member] | Mortgage Loans [Member] | |||
Disclosure Of Assets And Liabilities Were Held In Support Of Reserves Under Funds Withheld Reinsurance Agreements [Line Items] | |||
Assets | 4,389.6 | 2,985.5 | |
Funds Withheld Assets [Member] | Policy Loans [Member] | |||
Disclosure Of Assets And Liabilities Were Held In Support Of Reserves Under Funds Withheld Reinsurance Agreements [Line Items] | |||
Assets | 3,553.8 | 3,470.8 | |
Funds Withheld Assets [Member] | Derivative Instruments, Net [Member] | |||
Disclosure Of Assets And Liabilities Were Held In Support Of Reserves Under Funds Withheld Reinsurance Agreements [Line Items] | |||
Assets | 13.4 | (13.1) | |
Funds Withheld Assets [Member] | Limited Partnerships [Member] | |||
Disclosure Of Assets And Liabilities Were Held In Support Of Reserves Under Funds Withheld Reinsurance Agreements [Line Items] | |||
Assets | 423.5 | 124.9 | |
Funds Withheld Assets [Member] | Cash and Cash Equivalents [Member] | |||
Disclosure Of Assets And Liabilities Were Held In Support Of Reserves Under Funds Withheld Reinsurance Agreements [Line Items] | |||
Assets | 345.6 | 394.1 | |
Funds Withheld Assets [Member] | Accrued Investment Income [Member] | |||
Disclosure Of Assets And Liabilities Were Held In Support Of Reserves Under Funds Withheld Reinsurance Agreements [Line Items] | |||
Assets | 175.6 | 190.3 | |
Funds Withheld Assets [Member] | Other Assets and Liabilities, Net [Member] | |||
Disclosure Of Assets And Liabilities Were Held In Support Of Reserves Under Funds Withheld Reinsurance Agreements [Line Items] | |||
Assets | $ 38.4 | $ 22.8 | |
[1] | Includes funds withheld embedded derivative of $372.9 million and $826.6 million at June 30, 2021 and December 31, 2020, respectively. | ||
[2] | Certain assets are reported at amortized cost while the fair value of those assets are reported in the embedded derivative in the funds withheld liability. |
Reinsurance - Summary of Asse_2
Reinsurance - Summary of Assets and Liabilities were Held in Support of Reserves Under Funds Withheld Reinsurance Agreements (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Funds Withheld Embedded Derivative [Member] | ||
Disclosure Of Assets And Liabilities Were Held In Support Of Reserves Under Funds Withheld Reinsurance Agreements [Line Items] | ||
Derivative funds held under reinsurance agreements, Liability | $ 372.9 | $ 826.6 |
Reinsurance - Summary of Source
Reinsurance - Summary of Sources of Income Related to Funds Withheld Under Reinsurance Treaties Reported in Net Investment Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Net Investment Income [Line Items] | |||||
Total net investment income on funds withheld reinsurance treaties | $ 795.9 | $ 436.4 | $ 1,723.6 | $ 1,224.2 | |
Funds Withheld Assets [Member] | |||||
Net Investment Income [Line Items] | |||||
Total investment income on funds withheld assets | 319.8 | 152.3 | 640.4 | 237 | |
Other investment expenses on funds withheld assets | [1] | (26) | (8.1) | (55.5) | (8.1) |
Total net investment income on funds withheld reinsurance treaties | 293.8 | 144.2 | 584.9 | 228.9 | |
Funds Withheld Assets [Member] | Debt Securities [Member] | |||||
Net Investment Income [Line Items] | |||||
Total investment income on funds withheld assets | 194.4 | 67.7 | 397.5 | 71.9 | |
Funds Withheld Assets [Member] | Equity Securities [Member] | |||||
Net Investment Income [Line Items] | |||||
Total investment income on funds withheld assets | 3.5 | 2.4 | |||
Funds Withheld Assets [Member] | Mortgage Loans [Member] | |||||
Net Investment Income [Line Items] | |||||
Total investment income on funds withheld assets | 43.4 | 10.5 | 78 | 10.5 | |
Funds Withheld Assets [Member] | Policy Loans [Member] | |||||
Net Investment Income [Line Items] | |||||
Total investment income on funds withheld assets | 80.6 | 74 | 161.7 | 154.5 | |
Funds Withheld Assets [Member] | Limited Partnerships [Member] | |||||
Net Investment Income [Line Items] | |||||
Total investment income on funds withheld assets | $ (2.1) | 0.6 | |||
Funds Withheld Assets [Member] | Other Investment Income [Member] | |||||
Net Investment Income [Line Items] | |||||
Total investment income on funds withheld assets | $ 0.1 | $ 0.2 | $ 0.1 | ||
[1] | Includes management fees. |
Reinsurance - Summary of Gains
Reinsurance - Summary of Gains and Losses on Funds Withheld Reinsurance Treaties as a Component of Net Gains Losses on Derivatives and Investment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of Gains and Losses on Funds Withheld Reinsurance Treaties as a Component of Net Gains Losses on Derivatives and investment Line Items [Line Items] | |||||||
Realized gains on sale | $ 95.7 | $ 358.3 | $ 120.8 | $ 420 | |||
Realized losses on sale | (51.7) | (57.7) | (57.7) | (183.7) | |||
Credit loss expense | 6.8 | 17.5 | 6.8 | 17.5 | $ 4.9 | $ 13.6 | |
Net gains (losses) on non-derivative investments | (2,520.7) | (4,371.3) | 184.9 | (2,012.9) | |||
Funds Withheld Assets [Member] | |||||||
Disclosure of Gains and Losses on Funds Withheld Reinsurance Treaties as a Component of Net Gains Losses on Derivatives and investment Line Items [Line Items] | |||||||
Realized gains on sale | 85 | 1,598.1 | 258.3 | 1,598.1 | |||
Realized losses on sale | (10.9) | (2.2) | (12.8) | (2.2) | |||
Credit loss expense | (0.5) | (0.5) | |||||
Gross impairments | (1.6) | (1.6) | |||||
Credit loss expense on mortgage loans | (11.6) | (17.7) | (4.6) | (17.7) | |||
Other | (3.1) | (12.1) | |||||
Net gains (losses) on non-derivative investments | 58.9 | 1,576.6 | 228.3 | 1,576.6 | |||
Net gains (losses) on derivative instruments | 2.3 | (204.2) | 19.3 | (204.2) | |||
Net gains (losses) on funds withheld payable under reinsurance treaties | [1] | (828.6) | (119) | (117.3) | (203.7) | ||
Total net gains (losses) on derivatives and investments | $ (767.4) | $ 1,253.4 | $ 130.3 | $ 1,168.7 | |||
[1] | Includes the Athene embedded derivative gain (loss) of $(544.3) million and $453.7 million for the three and six months ended June 30, 2021, respectively, and $(279.0) million for both the three and six months ended June 30, 2020. |
Reinsurance - Summary of Gain_2
Reinsurance - Summary of Gains and Losses on Funds Withheld Reinsurance Treaties as a Component of Net Gains Losses on Derivatives and Investment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of Gains and Losses on Funds Withheld Reinsurance Treaties as a Component of Net Gains Losses on Derivatives and investment Line Items [Line Items] | ||||
Gain (loss) on embedded derivative | $ (1,373.7) | $ 3,715.9 | $ 3,218.5 | $ (6,536.7) |
Athene Life Re Ltd [Member] | ||||
Disclosure of Gains and Losses on Funds Withheld Reinsurance Treaties as a Component of Net Gains Losses on Derivatives and investment Line Items [Line Items] | ||||
Gain (loss) on embedded derivative | $ (544.3) | $ (279) | $ 453.7 | $ (279) |
Reinsurance - Summary of Compon
Reinsurance - Summary of Components of Reinsurance Recoverable (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Effects of Reinsurance [Line Items] | |||
Reserves | [1] | $ 30,194.7 | $ 31,859.9 |
Claims liability and other | 813 | 860.8 | |
Total | 34,246.7 | 35,269.5 | |
Guaranteed Minimum Income Benefits [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reserves | 267.2 | 340.3 | |
Other Annuity Benefits [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reserves | [2] | 26,687.8 | 27,535.8 |
Life [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reserves | 5,920.9 | 5,963.9 | |
Accident and Health [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reserves | $ 557.8 | $ 568.7 | |
[1] | Includes funds withheld embedded derivative of $372.9 million and $826.6 million at June 30, 2021 and December 31, 2020, respectively. | ||
[2] | Other annuity benefits primarily attributable to fixed and fixed index annuities reinsured with Athene. |
Reserves for Future Policy Be_3
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Insurance Loss Reserves [Line Items] | ||
Federal home loan bank capital stock | $ 125.4 | $ 125.4 |
Funding agreement support | $ 1,800 | $ 1,900 |
Percentage of interest sensitive life business at the minimum guaranteed interest rates | 81.00% | 80.00% |
Interest Sensitive Life [Member] | Maximum [Member] | ||
Insurance Loss Reserves [Line Items] | ||
Net amount by product and guarantee guaranteed minimum return rate | 6.00% | |
Interest Sensitive Life [Member] | Minimum [Member] | ||
Insurance Loss Reserves [Line Items] | ||
Net amount by product and guarantee guaranteed minimum return rate | 2.50% | |
Interest Sensitive Life [Member] | Arithmetic Average [Member] | ||
Insurance Loss Reserves [Line Items] | ||
Net amount by product and guarantee guaranteed minimum return rate | 4.68% | |
Fixed Annuity [Member] | Maximum [Member] | ||
Insurance Loss Reserves [Line Items] | ||
Net amount by product and guarantee guaranteed minimum return rate | 5.50% | |
Fixed Annuity [Member] | Minimum [Member] | ||
Insurance Loss Reserves [Line Items] | ||
Net amount by product and guarantee guaranteed minimum return rate | 1.00% | |
Fixed Annuity [Member] | Arithmetic Average [Member] | ||
Insurance Loss Reserves [Line Items] | ||
Net amount by product and guarantee guaranteed minimum return rate | 2.03% | |
Fixed And Variable Annuities [Member] | ||
Insurance Loss Reserves [Line Items] | ||
Percentage of the companies values at the minimum guaranteed rates | 95.00% | 95.00% |
Jackson National Life Global Funding [Member] | ||
Insurance Loss Reserves [Line Items] | ||
Medium term notes carrying value | $ 6,300 | $ 8,400 |
Jackson National Life Global Funding [Member] | Medium-term Notes [Member] | ||
Insurance Loss Reserves [Line Items] | ||
Debt instrument face value | $ 23,000 |
Reserves for Future Policy Be_4
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Summary of Company's Reserves for Future Policy Benefits and Claims Payable Balances (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Insurance Loss Reserves [Abstract] | |||
Traditional life | $ 4,358.8 | $ 4,535.3 | |
Guaranteed benefits | [1] | 5,046.1 | 8,508.5 |
Claims payable | 1,029.8 | 1,109.5 | |
Accident and health | 1,225.8 | 1,257.2 | |
Group payout annuities | 5,077.2 | 5,220.3 | |
Other | 823.4 | 859.3 | |
Total | $ 17,561.1 | $ 21,490.1 | |
[1] | Includes the embedded derivative liabilities related to the GMWB reserve. |
Reserves for Future Policy Be_5
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Summary of Company's Liabilities for Other Contract Holder Funds Balances (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Disclosure Details Of Companies Liabilities For Other Contract Holders Funds [Line Items] | |||
Separate account liabilities | $ 239,806.1 | $ 219,062.9 | |
For Other Contract Account Holders Fund Balances [Member] | |||
Disclosure Details Of Companies Liabilities For Other Contract Holders Funds [Line Items] | |||
Separate account liabilities | 60,897.8 | 64,538.4 | |
For Other Contract Account Holders Fund Balances [Member] | Interest Sensitive Life [Member] | |||
Disclosure Details Of Companies Liabilities For Other Contract Holders Funds [Line Items] | |||
Separate account liabilities | 11,725.4 | 11,835.5 | |
For Other Contract Account Holders Fund Balances [Member] | Variable Annuity Fixed Option [Member] | |||
Disclosure Details Of Companies Liabilities For Other Contract Holders Funds [Line Items] | |||
Separate account liabilities | 10,168.2 | 10,609.6 | |
For Other Contract Account Holders Fund Balances [Member] | Fixed Annuity [Member] | |||
Disclosure Details Of Companies Liabilities For Other Contract Holders Funds [Line Items] | |||
Separate account liabilities | 16,284.6 | 16,746.3 | |
For Other Contract Account Holders Fund Balances [Member] | Fixed Index Annuity [Member] | |||
Disclosure Details Of Companies Liabilities For Other Contract Holders Funds [Line Items] | |||
Separate account liabilities | [1] | 13,809.6 | 14,209.2 |
For Other Contract Account Holders Fund Balances [Member] | GICs, Funding Agreement And FHLB Advances [Member] | |||
Disclosure Details Of Companies Liabilities For Other Contract Holders Funds [Line Items] | |||
Separate account liabilities | $ 8,910 | $ 11,137.8 | |
[1] | Includes the embedded derivative liabilities related to fixed index annuity of $1,489.9 million and $1,483.9 million at June 30, 2021 and December 31, 2020, respectively. |
Reserves for Future Policy Be_6
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Summary of Company's Liabilities for Other Contract Holder Funds Balances (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
For Other Contract Account Holders Fund Balances [Member] | Fixed Index Annuity [Member] | ||
Disclosure Details Of Companies Liabilities For Other Contract Holders Funds [Line Items] | ||
Embedded derivative liabilities | $ 1,489.9 | $ 1,483.9 |
Reserves for Future Policy Be_7
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Summary of Distribution of the Fixed Interest Rate Annuities' Account Values (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | $ 12,307.1 | $ 12,744.5 |
Ceded reinsurance | 25,919.5 | 26,775.8 |
Total | 38,226.6 | 39,520.3 |
1.00% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 6,454.4 | 6,758.2 |
>1.0% - 2.0% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 287.6 | 301.7 |
>2.0% - 3.0% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 4,607.3 | 4,708.6 |
>3.0% - 4.0% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 607.6 | 622.5 |
>4.0% - 5.0% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 278 | 280.3 |
>5.0% - 5.5% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 72.2 | 73.2 |
Fixed [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 2,272.5 | 2,293.5 |
Ceded reinsurance | 12,529.5 | 12,923.7 |
Total | 14,802 | 15,217.2 |
Fixed [Member] | 1.00% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 124.5 | 92.1 |
Fixed [Member] | >1.0% - 2.0% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 59.6 | 63.3 |
Fixed [Member] | >2.0% - 3.0% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 1,130.6 | 1,162.1 |
Fixed [Member] | >3.0% - 4.0% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 607.6 | 622.5 |
Fixed [Member] | >4.0% - 5.0% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 278 | 280.3 |
Fixed [Member] | >5.0% - 5.5% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 72.2 | 73.2 |
Fixed Index [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 419.6 | 357.1 |
Ceded reinsurance | 13,390 | 13,852.1 |
Total | 13,809.6 | 14,209.2 |
Fixed Index [Member] | 1.00% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 232.7 | 164.5 |
Fixed Index [Member] | >1.0% - 2.0% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 1.5 | 2.7 |
Fixed Index [Member] | >2.0% - 3.0% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 185.4 | 189.9 |
Fixed Variable [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 9,615 | 10,093.9 |
Total | 9,615 | 10,093.9 |
Fixed Variable [Member] | 1.00% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 6,097.2 | 6,501.6 |
Fixed Variable [Member] | >1.0% - 2.0% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | 226.5 | 235.7 |
Fixed Variable [Member] | >2.0% - 3.0% [Member] | ||
Distribution Of Fixed Interest Rate Annuity Values Based On The Given Ranges Of Guaranteed Interest Rates [Line Items] | ||
Annuity Account Values | $ 3,291.3 | $ 3,356.6 |
Reserves for Future Policy Be_8
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Summary of Distribution of the Interest Sensitive Life Business Account Values (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Disclosure Of Distribution Of Interest Sensitive Life Business Account Based On The Range Of Minimum Guaranteed Interest Rates [Line Items] | ||
Account Value Interest Sensitive Life Insurance | $ 7,474.6 | $ 7,621.9 |
Retro Treaties | 4,250.8 | 4,213.6 |
Total | 11,725.4 | 11,835.5 |
>2.0% - 3.0% [Member] | ||
Disclosure Of Distribution Of Interest Sensitive Life Business Account Based On The Range Of Minimum Guaranteed Interest Rates [Line Items] | ||
Account Value Interest Sensitive Life Insurance | 258 | 269.6 |
>3.0% - 4.0% [Member] | ||
Disclosure Of Distribution Of Interest Sensitive Life Business Account Based On The Range Of Minimum Guaranteed Interest Rates [Line Items] | ||
Account Value Interest Sensitive Life Insurance | 2,775.4 | 2,819.5 |
>4.0% - 5.0% [Member] | ||
Disclosure Of Distribution Of Interest Sensitive Life Business Account Based On The Range Of Minimum Guaranteed Interest Rates [Line Items] | ||
Account Value Interest Sensitive Life Insurance | 2,439.9 | 2,488.2 |
>5.0% - 6.0% [Member] | ||
Disclosure Of Distribution Of Interest Sensitive Life Business Account Based On The Range Of Minimum Guaranteed Interest Rates [Line Items] | ||
Account Value Interest Sensitive Life Insurance | $ 2,001.3 | $ 2,044.6 |
Certain Nontraditional Long-D_3
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Certain Nontraditional LongDuration Contracts and Variable Annuity Guarantees [Line Items] | ||
Long-Duration Contracts, Assumptions by Product and Guarantee, Estimated Average Investment Yield | 7.15% | |
Reserves for future policy benefits and claims payable | $ 17,561.1 | $ 21,490.1 |
Liability for Policyholder Contract Deposits, Interest Rate | 3.00% | 5.50% |
Liability established for this rider before reinsurance | $ 26.2 | $ 18.1 |
Liability for future policy benefits, compound interest period | 10 years | |
Period one [Member] | ||
Certain Nontraditional LongDuration Contracts and Variable Annuity Guarantees [Line Items] | ||
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate | 7.15% | |
Period Two [Member] | ||
Certain Nontraditional LongDuration Contracts and Variable Annuity Guarantees [Line Items] | ||
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate | 7.40% | |
Period Three [Member] | ||
Certain Nontraditional LongDuration Contracts and Variable Annuity Guarantees [Line Items] | ||
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate | 8.40% | |
Maximum [Member] | ||
Certain Nontraditional LongDuration Contracts and Variable Annuity Guarantees [Line Items] | ||
Long-Duration Contracts, Assumptions by Product and Guarantee, Mortality Rate | 100.00% | |
Long-Duration Contracts, Assumptions by Product and Guarantee, Lapse Rate | 27.90% | |
Minimum [Member] | ||
Certain Nontraditional LongDuration Contracts and Variable Annuity Guarantees [Line Items] | ||
Long-Duration Contracts, Assumptions by Product and Guarantee, Mortality Rate | 38.00% | |
Long-Duration Contracts, Assumptions by Product and Guarantee, Lapse Rate | 0.30% | |
Guaranteed Minimum Withdrawal Benefit [Member] | ||
Certain Nontraditional LongDuration Contracts and Variable Annuity Guarantees [Line Items] | ||
Fair value of reserves for future policy benefits and claims payable | $ 2,235.7 | 5,592.1 |
Reserves for future policy benefits and claims payable | 185.6 | 181.3 |
Guaranteed Minimum Income Benefit [Member] | ||
Certain Nontraditional LongDuration Contracts and Variable Annuity Guarantees [Line Items] | ||
Liability for Future Policy Benefit, before Reinsurance | $ 76.4 | $ 86.9 |
Upper Limits Eight Percent Simple Interest [Member] | ||
Certain Nontraditional LongDuration Contracts and Variable Annuity Guarantees [Line Items] | ||
Liability for Future Policy Benefits, Interest Rate | 6.00% | |
Upper Limits Five Percent Simple Interest [Member] | ||
Certain Nontraditional LongDuration Contracts and Variable Annuity Guarantees [Line Items] | ||
Liability for Future Policy Benefits, Interest Rate | 4.10% |
Certain Nontraditional Long-D_4
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - Schedule of Net Amount of Risk by Product and Guarantee (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Return Of Minimum Deposits Plus Minimum Return [Member] | Guaranteed Minimum Death Benefit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | $ 186,886.5 | $ 170,510.2 |
Net Amount at Risk | $ 2,078.7 | $ 2,339.5 |
Weighted Average Attained Age | 68 years 6 months | 67 years 3 months 18 days |
Return Of Minimum Deposits Plus Minimum Return [Member] | Guaranteed Minimum Death Benefit [Member] | Minimum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | 0.00% |
Return Of Minimum Deposits Plus Minimum Return [Member] | Guaranteed Minimum Death Benefit [Member] | Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 6.00% | 6.00% |
Return Of Minimum Deposits Plus Minimum Return [Member] | Guarantee Minimum Withdrawal Benefit Premium Only Member [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | 0.00% |
Account Value | $ 2,993 | $ 2,858.1 |
Net Amount at Risk | 8.4 | 11.7 |
Return Of Minimum Deposits Plus Minimum Return [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | 249.9 | 247.5 |
Net Amount at Risk | $ 8.5 | $ 10.8 |
Return Of Minimum Deposits Plus Minimum Return [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Minimum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | 0.00% |
Return Of Minimum Deposits Plus Minimum Return [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 5.00% | 5.00% |
Return Of Minimum Deposits Plus Minimum Return [Member] | Guaranteed Minimum Accumulated Benefit Premium Only Member [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | 0.00% |
Account Value | $ 39.4 | |
Highest Specified Anniversary Value Less Withdrawal Post Anniversary [Member] | Guaranteed Minimum Death Benefit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | $ 14,555.7 | 13,511.9 |
Net Amount at Risk | $ 65 | $ 86.1 |
Weighted Average Attained Age | 69 years 7 months 6 days | 68 years 3 months 18 days |
Highest Specified Anniversary Value Less Withdrawal Post Anniversary [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | $ 663.5 | $ 646 |
Net Amount at Risk | $ 47.7 | 55.4 |
Highest Specified Anniversary Value Less Withdrawal Post Anniversary [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Minimum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | |
Highest Specified Anniversary Value Less Withdrawal Post Anniversary [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 8.00% | |
Highest Specified Anniversary Value Less Withdrawal Post Anniversary [Member] | Guaranteed Minimum Withdrawal Benefit Highest Anniversary Only [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | $ 3,783.6 | 3,459.2 |
Net Amount at Risk | 31.6 | 41.1 |
Combination Net Deposits Plus Minimum Return Highest Specified Anniversary Account Value Minus Withdrawals Post Anniversary [Member] | Guaranteed Minimum Death Benefit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | 9,628.8 | 8,890.8 |
Net Amount at Risk | $ 498.9 | $ 614.8 |
Weighted Average Attained Age | 71 years 8 months 12 days | 70 years 6 months |
Combination Net Deposits Plus Minimum Return Highest Specified Anniversary Account Value Minus Withdrawals Post Anniversary [Member] | Guaranteed Minimum Death Benefit [Member] | Minimum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | 0.00% |
Combination Net Deposits Plus Minimum Return Highest Specified Anniversary Account Value Minus Withdrawals Post Anniversary [Member] | Guaranteed Minimum Death Benefit [Member] | Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 6.00% | 6.00% |
Combination Net Deposits Plus Minimum Return Highest Specified Anniversary Account Value Minus Withdrawals Post Anniversary [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | $ 175,081 | $ 159,856.9 |
Net Amount at Risk | 4,174.3 | $ 5,655.7 |
Combination Net Deposits Plus Minimum Return Highest Specified Anniversary Account Value Minus Withdrawals Post Anniversary [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Minimum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | |
Combination Net Deposits Plus Minimum Return Highest Specified Anniversary Account Value Minus Withdrawals Post Anniversary [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 8.00% | |
Combination Net Deposits Plus Minimum Return Highest Specified Anniversary Account Value Minus Withdrawals Post Anniversary [Member] | Guaranteed Minimum Income Benefit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | 1,718 | $ 1,675.3 |
Net Amount at Risk | $ 466.2 | $ 555.5 |
Average Period until Expected Annuitization | 7 months 6 days | 6 months |
Combination Net Deposits Plus Minimum Return Highest Specified Anniversary Account Value Minus Withdrawals Post Anniversary [Member] | Guaranteed Minimum Income Benefit [Member] | Minimum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | 0.00% |
Combination Net Deposits Plus Minimum Return Highest Specified Anniversary Account Value Minus Withdrawals Post Anniversary [Member] | Guaranteed Minimum Income Benefit [Member] | Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 6.00% | 6.00% |
Certain Nontraditional Long-D_5
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - Summary of Account Balances of Contracts With Guarantees Were Invested in Variable Separate Account (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Separate Account Investment [Line Items] | ||
Account balances of contracts with guarantees were invested in variable separate accounts | $ 211,927.8 | $ 193,903.6 |
Equity Securities [Member] | ||
Fair Value, Separate Account Investment [Line Items] | ||
Account balances of contracts with guarantees were invested in variable separate accounts | 147,776.6 | 132,213 |
Bonds [Member] | ||
Fair Value, Separate Account Investment [Line Items] | ||
Account balances of contracts with guarantees were invested in variable separate accounts | 20,288.8 | 20,202.9 |
Balanced Funds [Member] | ||
Fair Value, Separate Account Investment [Line Items] | ||
Account balances of contracts with guarantees were invested in variable separate accounts | 42,117.4 | 39,626.1 |
Money Market Funds [Member] | ||
Fair Value, Separate Account Investment [Line Items] | ||
Account balances of contracts with guarantees were invested in variable separate accounts | $ 1,745 | $ 1,861.6 |
Certain Nontraditional Long-D_6
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - Summary of GMDB Liabilities Reflected in General Account (Detail) - Guaranteed Minimum Death Benefit [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||
Balance as of beginning of period | $ 1,418.2 | $ 1,282.9 |
Incurred guaranteed benefits | 47 | 340.9 |
Paid guaranteed benefits | (56.7) | (81.4) |
Balance as of end of period | $ 1,408.5 | $ 1,542.4 |
Certain Nontraditional Long-D_7
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - Summary of Liabilities For Benefits To Methodologies Described (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Insurance Benefits [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Liability | $ 935 | $ 939.6 |
Net Amount at Risk | $ 19,032.3 | $ 19,483 |
Weighted Average Attained Age | 63 years 10 months 24 days | 63 years 6 months |
Account Balance Adjustments [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Liability | $ 136.7 | $ 133.6 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | Sep. 10, 2021 | Feb. 22, 2021 | Nov. 07, 2020 | Nov. 07, 2019 | Nov. 06, 2019 | Mar. 15, 1997 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||||||||
Interest expense | $ 6.6 | $ 31.4 | $ 12.7 | $ 73.2 | |||||||
Debt, Weighted Average Interest Rate | 0.07% | 0.07% | 0.16% | ||||||||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 2,350 | ||||||||||
Two Thousand and Twenty Two Senior Unsecured Delayed Draw Term Loan Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, Maximum borrowing capacity | $ 1,700 | ||||||||||
Debt Instrument, Maturity Date, Description | May 2022 | ||||||||||
Line of Credit Facility, Maximum Amount Outstanding During Period | 1,600 | ||||||||||
Two Thousand and Twenty Three Senior Unsecured Delayed Draw Term Loan Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, Maximum borrowing capacity | $ 1,000 | ||||||||||
Debt Instrument, Maturity Date, Description | February 2023 | ||||||||||
Line of Credit Facility, Maximum Amount Outstanding During Period | 750 | ||||||||||
Short-term Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from Issuance of Debt | $ 350 | ||||||||||
Debt Instrument, Maturity Date | Nov. 7, 2020 | ||||||||||
Interest expense | 1.7 | 3.6 | |||||||||
Dividends, Paid-in-kind | $ 350 | ||||||||||
Debt Instrument, Interest Rate, Basis for Effective Rate | LIBOR plus 0.20% | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 0.20% | ||||||||||
Federal Home Loan Bank of Indianapolis [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from Issuance of Debt | $ 50 | ||||||||||
Debt, Weighted Average Interest Rate | 0.10% | 0.10% | 0.80% | ||||||||
Long-term debt | $ 68.1 | $ 68.1 | $ 72.3 | ||||||||
Federal Home Loan Bank of Indianapolis [Member] | Collateralized Mortgage Backed Securities [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | 92.9 | 92.9 | |||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, Maximum borrowing capacity | $ 1,000 | ||||||||||
Term Loan And Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from Issuance of Debt | $ 2,350 | ||||||||||
Eight Point One Five Percent Surplus Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from Issuance of Debt | $ 250 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.15% | ||||||||||
Debt Instrument, Maturity Date | Mar. 15, 2027 | ||||||||||
Interest expense | $ 5.1 | 10.2 | $ 5.1 | 10.2 | |||||||
Four Point Five Percent surplus Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from Issuance of Debt | $ 2,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||||||||
Debt Instrument, Maturity Date | Nov. 6, 2059 | ||||||||||
Interest expense | 18.5 | 41 | |||||||||
In exchange a return of capital | $ 2,000 | $ 2,000 |
Debt - Summary of Carrying Valu
Debt - Summary of Carrying Value of Borrowings (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt, Gross | $ 317.7 | $ 322 |
FHLBI bank loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Gross | 68 | 72.3 |
Surplus notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Gross | $ 249.7 | $ 249.7 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Other Liabilities [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Advances from Federal home loan bank | $ 250 | $ 380 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax [Line Items] | |||||
Income tax expense benefit | $ (54.5) | $ (457) | $ 531.1 | $ (423.8) | |
Effective income tax rate percentage | 9.20% | 12.80% | 18.20% | 24.40% | 34.30% |
Statutory income tax rate percentage | 21.00% | 21.00% | 21.00% | ||
CARES Act [Member] | |||||
Income Tax [Line Items] | |||||
Income tax expense benefit | $ 33 | $ 16.3 |
Segment Information - Summary o
Segment Information - Summary of Segment Reporting Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Revenues | ||||
Total operating revenues | $ 1,741.1 | $ 1,416.8 | $ 3,519.5 | $ 3,232 |
Operating Benefits and Expenses | ||||
Interest expense | 6.6 | 31.4 | 12.7 | 73.2 |
Total operating benefits and expenses | 980.3 | 907.4 | 2,125.5 | 2,447.2 |
Pretax adjusted operating earnings | 760.8 | 509.4 | 1,394 | 784.8 |
Operating Segments [Member] | ||||
Operating Revenues | ||||
Fee income | 1,191.6 | 942.2 | 2,332.9 | 1,950.3 |
Premium | 33.8 | 24 | 71.3 | 93.9 |
Net investment income | 445.1 | 402.2 | 983 | 1,121.7 |
Income on operating derivatives | 40.2 | 30.5 | 78.7 | 52 |
Other income | 30.4 | 17.9 | 53.6 | 14.1 |
Total operating revenues | 1,741.1 | 1,416.8 | 3,519.5 | 3,232 |
Operating Benefits and Expenses | ||||
Death, other policy benefits and change in policy | 203 | 266.3 | 430.2 | 423.3 |
Interest credited on other contract holder funds, net of deferrals | 217.5 | 342.9 | 440 | 749 |
Interest expense | 6.6 | 31.4 | 12.7 | 73.2 |
Operating costs and other expenses, net of deferrals | 574.2 | 498.2 | 1,147.5 | 1,021 |
Deferred acquisition and sales inducements amortization | (21) | (231.4) | 95.1 | 180.7 |
Total operating benefits and expenses | 980.3 | 907.4 | 2,125.5 | 2,447.2 |
Pretax adjusted operating earnings | 760.8 | 509.4 | 1,394 | 784.8 |
Operating Segments [Member] | Retail Annuities [Member] | ||||
Operating Revenues | ||||
Fee income | 1,050 | 792.2 | 2,045.7 | 1,649.7 |
Net investment income | 143.6 | 230.1 | 348.7 | 626.8 |
Income on operating derivatives | 14.6 | 14.7 | 28.6 | 25.7 |
Other income | 12 | 4.4 | 23.6 | 4.5 |
Total operating revenues | 1,220.2 | 1,041.4 | 2,446.6 | 2,306.7 |
Operating Benefits and Expenses | ||||
Death, other policy benefits and change in policy | 11.5 | 9.5 | 17.5 | 17.8 |
Interest credited on other contract holder funds, net of deferrals | 66.3 | 173.8 | 133.6 | 398 |
Interest expense | 5.6 | 7 | 10.8 | 15.8 |
Operating costs and other expenses, net of deferrals | 484.6 | 406.2 | 960 | 849.3 |
Deferred acquisition and sales inducements amortization | (31) | (241.3) | 73.2 | 163.8 |
Total operating benefits and expenses | 537 | 355.2 | 1,195.1 | 1,444.7 |
Pretax adjusted operating earnings | 683.2 | 686.2 | 1,251.5 | 862 |
Operating Segments [Member] | Closed Life and Annuity Blocks [Member] | ||||
Operating Revenues | ||||
Fee income | 122.8 | 128.5 | 248 | 258.5 |
Premium | 33.8 | 24 | 71.3 | 93.9 |
Net investment income | 204.9 | 105.8 | 461.4 | 298.3 |
Income on operating derivatives | 17.5 | 10.5 | 37.7 | 17.8 |
Other income | 12 | 12.3 | 21.7 | 5.7 |
Total operating revenues | 391 | 281.1 | 840.1 | 674.2 |
Operating Benefits and Expenses | ||||
Death, other policy benefits and change in policy | 191.5 | 256.8 | 412.7 | 405.5 |
Interest credited on other contract holder funds, net of deferrals | 103 | 106.3 | 206.6 | 214.6 |
Operating costs and other expenses, net of deferrals | 37.9 | 36.6 | 78.6 | 76.3 |
Deferred acquisition and sales inducements amortization | 2.2 | 4 | 7 | 7.8 |
Total operating benefits and expenses | 334.6 | 403.7 | 704.9 | 704.2 |
Pretax adjusted operating earnings | 56.4 | (122.6) | 135.2 | (30) |
Operating Segments [Member] | Institutional Products [Member] | ||||
Operating Revenues | ||||
Net investment income | 56.7 | 84.5 | 120.4 | 196.8 |
Other income | 1.6 | |||
Total operating revenues | 56.7 | 84.5 | 120.4 | 198.4 |
Operating Benefits and Expenses | ||||
Interest credited on other contract holder funds, net of deferrals | 48.2 | 62.8 | 99.8 | 136.4 |
Interest expense | 1 | 4.2 | 1.9 | 12.8 |
Operating costs and other expenses, net of deferrals | 1.2 | 1.3 | 2.5 | 2.6 |
Total operating benefits and expenses | 50.4 | 68.3 | 104.2 | 151.8 |
Pretax adjusted operating earnings | 6.3 | 16.2 | 16.2 | 46.6 |
Corporate and Other [Member] | ||||
Operating Revenues | ||||
Fee income | 33.3 | 43 | 68.9 | 87.1 |
Net investment income | (8.5) | (61) | (44.6) | (77.4) |
Income on operating derivatives | 8.1 | 5.3 | 12.4 | 8.5 |
Other income | 6.4 | 1.2 | 8.3 | 2.3 |
Total operating revenues | 39.3 | (11.5) | 45 | 20.5 |
Operating Benefits and Expenses | ||||
Interest expense | 20.2 | 44.6 | ||
Operating costs and other expenses, net of deferrals | 50.5 | 54.1 | 106.4 | 92.8 |
Total operating benefits and expenses | 50.5 | 74.3 | 106.4 | 137.4 |
Pretax adjusted operating earnings | (11.2) | (85.8) | (61.4) | (116.9) |
Intersegment Eliminations [Member] | ||||
Operating Revenues | ||||
Fee income | (14.5) | (21.5) | (29.7) | (45) |
Net investment income | 48.4 | 42.8 | 97.1 | 77.2 |
Total operating revenues | 33.9 | 21.3 | 67.4 | 32.2 |
Operating Benefits and Expenses | ||||
Deferred acquisition and sales inducements amortization | 7.8 | 5.9 | 14.9 | 9.1 |
Total operating benefits and expenses | 7.8 | 5.9 | 14.9 | 9.1 |
Pretax adjusted operating earnings | $ 26.1 | $ 15.4 | $ 52.5 | $ 23.1 |
Segment Information - Summary_2
Segment Information - Summary of Non-GAAP Measure of Operating Expenses to Total Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting [Abstract] | ||||
Total operating benefits and expenses | $ 980.3 | $ 907.4 | $ 2,125.5 | $ 2,447.2 |
Benefits attributed to variable annuity benefit reserves | 28.5 | 50.3 | 66.4 | 89.9 |
Amortization of DAC and DSI related to non-operating revenues and expenses | (242.7) | (1,263.5) | 453.1 | (631.7) |
SOP 03-1 reserve movements | (21.2) | (457.5) | (3.6) | 334.1 |
Athene reinsurance transaction | 2,046.7 | 2,046.7 | ||
Other items | 25.4 | 3.7 | 50.5 | 4 |
Total benefits and expenses | $ 770.3 | $ 1,287.1 | $ 2,691.9 | $ 4,290.2 |
Segment Information - Summary_3
Segment Information - Summary of Non-GAAP Measure of Operating Revenues to Total Revenues (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting [Abstract] | ||||
Total operating revenues | $ 1,741.1 | $ 1,416.8 | $ 3,519.5 | $ 3,232 |
Fees attributed to variable annuity benefit reserves | 701 | 617.7 | 1,372.6 | 1,224.6 |
Net gains (losses) on derivatives and investments | (2,560.9) | (4,401.9) | 106.2 | (2,065.1) |
Net investment income related to noncontrolling interests | 56.1 | (53.7) | 124.4 | (59.5) |
Consolidated investments | 0.8 | (56) | 31.3 | (66.6) |
Net investment income on funds withheld assets | 293.8 | 144.2 | 584.9 | 228.9 |
Total revenues | $ 231.9 | $ (2,332.9) | $ 5,738.9 | $ 2,494.3 |
Segment Information - Summary_4
Segment Information - Summary of Non-GAAP Measure of Pretax Operating Profit Loss to Net Income Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting [Abstract] | ||||
Pretax adjusted operating earnings | $ 760.8 | $ 509.4 | $ 1,394 | $ 784.8 |
Non-operating adjustments (income) loss: | ||||
Fees attributable to guarantee benefit reserves | 701 | 617.7 | 1,372.6 | 1,224.6 |
Net movement in freestanding derivatives | (442.2) | (9,340.3) | (3,472.9) | 2,717.9 |
Net reserve and embedded derivative movements | (1,373.7) | 3,715.9 | 3,218.5 | (6,536.7) |
DAC and DSI impact | 242.8 | 1,264.6 | (453.1) | 631.8 |
Net realized investment gains (losses) including change in fair value of funds withheld embedded derivative | (752.4) | 1,629.8 | 297.8 | 1,329.9 |
Loss on funds withheld reinsurance transaction | (2,046.7) | (2,046.7) | ||
Net investment income on funds withheld assets | 293.8 | 144.2 | 584.9 | 228.9 |
Other items | (24.6) | (60.9) | (19.2) | (70.9) |
Pretax income (loss) attributable to Jackson Financial Inc. | (594.5) | (3,566.3) | 2,922.6 | (1,736.4) |
Income tax expense (benefit) | (54.5) | (457) | 531.1 | (423.8) |
Net income (loss) attributable to Jackson Financial Inc. | $ (540) | $ (3,109.3) | $ 2,391.5 | $ (1,312.6) |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Guarantees - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Other Commitments [Line Items] | ||
Loss contingency accrual | $ 6.4 | $ 13.1 |
Unfunded Commitments Relating To Investments [Member] | ||
Other Commitments [Line Items] | ||
Unfunded commitments | 1,451.5 | |
Unfunded Commitments Relating To Mortgages And Debt Securities [Member] | ||
Other Commitments [Line Items] | ||
Unfunded commitments | $ 1,335.6 |
Other Related Party Transacti_2
Other Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related parties | [1] | $ 9 | $ 11.1 | $ 16.6 | $ 20.3 |
PPM [Member] | Investment Services [Member] | Fee Income [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 8.9 | 8.8 | 18.7 | 17.1 | |
PGDS [Member] | Information Technology And Security Services [Member] | Other Income [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 1.1 | 0.4 | 2.3 | 0.7 | |
Apollo [Member] | Management Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related parties | $ 25.8 | $ 4.1 | $ 53.9 | $ 4.1 | |
[1] | Includes management fees, administrative fees, legal fees, and other expenses related to the consolidation of certain investments. |
Operating Costs and Other Exp_3
Operating Costs and Other Expenses - Summary of Operating Costs and Other Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Operating Costs And Other Expenses [Abstract] | |||||
Asset-based commission expenses | $ 281.1 | $ 213.5 | $ 548.2 | $ 425.5 | |
Other commission expenses | 263 | 206 | 529.5 | 483.4 | |
Athene ceding commission | [1] | (1,231.1) | (1,231.1) | ||
General and administrative expenses | 256.5 | 227.6 | 520.6 | 466.4 | |
Deferral of acquisition costs | (201) | (145.2) | (400.4) | (350.3) | |
Total operating costs and other expenses | $ 599.6 | $ (729.2) | $ 1,197.9 | $ (206.1) | |
[1] | See Note 7 for further information |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Summary of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent [Abstract] | ||||
Balance, beginning of period | $ 1,442.5 | $ 1,963 | $ 3,820.6 | $ 2,396.7 |
OCI before reclassifications | 1,062.8 | 1,988.2 | (1,238.6) | 1,596.7 |
Amounts reclassified from AOCI | (115.1) | (521.8) | (191.8) | (564) |
Balance, end of period | $ 2,390.2 | $ 3,429.4 | $ 2,390.2 | $ 3,429.4 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Summary of Accumulated Other Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
AOCI Attributable to Parent [Abstract] | |||
Accumulated other comprehensive income related to investments within the funds withheld account | $ 632.1 | $ 1,212.8 | $ 1,107.9 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income - Summary of Amounts Reclassified Out of AOCI (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net realized gain (loss) on investments | $ (147.5) | $ (660.5) | $ (244.6) | $ (713.9) |
Income tax expense (benefit) | (32.4) | (138.7) | (52.8) | (149.9) |
Reclassifications, net of income taxes | (115.1) | (521.8) | (191.8) | (564) |
Net Gains (Losses) On Derivatives And Investments [Member] | ||||
Other impaired securities | 3 | 7.5 | ||
Net Gains (Losses) On Derivatives And Investments [Member] | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||||
Net realized gain (loss) on investments | $ (147.5) | $ (663.5) | $ (244.6) | $ (721.4) |
Equity - Additional Information
Equity - Additional Information (Detail) | Jul. 17, 2020USD ($)$ / sharesshares | Jun. 24, 2020USD ($)shares | Jun. 18, 2020USD ($) | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020$ / sharesshares | Jun. 30, 2020USD ($) |
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ | $ 500,000,000 | $ 500,000,000 | |||||
Dividends Payable | $ | $ 0 | $ 0 | $ 0 | ||||
Post confirmation Retained Earnings Deficits | $ | $ 60,700,000 | $ 60,700,000 | |||||
Investment Agreement [Member] | Athene Life Re Ltd [Member] | |||||||
Equity Method Investment, Ownership Percentage | 11.10% | ||||||
Equity Method Investment, Economic Interest Percentage | 9.9 | ||||||
Common Class A [Member] | |||||||
Common stock par or stated value per share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Common Stock, Voting Rights | one | ||||||
Common stock shares authorized | 900,000,000 | 900,000,000 | 900,000,000 | ||||
Stockholders' Equity Note, Stock Split | 104,960.3836276-for-1 | ||||||
Common stock shares issued | 93,099,859 | 93,099,859 | 93,099,859 | ||||
Common stock shares outstanding | 93,099,859 | 93,099,859 | 93,099,859 | ||||
Stock Issued During Period, Shares, Stock Splits | 9,131,553 | ||||||
Common stock reclassified par value Per share | $ / shares | $ 125 | ||||||
Common Class A [Member] | Parent [Member] | |||||||
Stock Issued During Period, Shares, Stock Splits | 83,968,306 | ||||||
Common Class B [Member] | |||||||
Common stock par or stated value per share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Common stock shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Stockholders' Equity Note, Stock Split | 104,960.3836276-for-1 | ||||||
Common stock shares issued | 1,364,484 | 1,364,484 | 1,364,484 | ||||
Common stock shares outstanding | 1,364,484 | 1,364,484 | 1,364,484 | ||||
Stock Issued During Period, Shares, Stock Splits | 1,364,484 | ||||||
Brooke Life [Member] | Surplus Notes [Member] | Assignment and Assumption Agreement [Member] | |||||||
Debt Instrument, Face Amount | $ | $ 2,000,000,000 | $ 2,000,000,000 | |||||
Brooke Life [Member] | Common Class A [Member] | Surplus Notes [Member] | Assignment and Assumption Agreement [Member] | |||||||
Debt Conversion, Converted Instrument, Shares Issued | 39,255,183 | ||||||
Standard Chartered Bank [Member] | Supplemental Agreement [Member] | |||||||
Debt Instrument, Face Amount | $ | $ 350,000,000 | ||||||
Standard Chartered Bank [Member] | Common Class A [Member] | Supplemental Agreement [Member] | |||||||
Debt Conversion, Converted Instrument, Shares Issued | 6,927,385 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to Jackson Financial Inc. | $ (540) | $ (3,109.3) | $ 2,391.5 | $ (1,312.6) |
Weighted average shares of common stock outstanding - basic | 94,464,343 | 44,433,998 | 94,464,343 | 41,336,994 |
Weighted average shares of common stock outstanding - diluted | 94,464,343 | 44,433,998 | 94,464,343 | 41,336,994 |
Earnings per share - common stock | ||||
Basic | $ (5.72) | $ (69.98) | $ 25.32 | $ (31.75) |
Diluted | $ (5.72) | $ (69.98) | $ 25.32 | $ (31.75) |