Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 08, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-40274 | |
Entity Registrant Name | Jackson Financial Inc. | |
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 $0.01 Per Share | |
Trading Symbol | JXN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Entity Central Index Key | 0001822993 | |
Current Fiscal Year End Date | --12-31 | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 93,099,859 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,364,484 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Investments: | ||
Debt Securities, available for sale, net of allowance for credit losses of $9.4 and $13.6 at September 30, 2021 and December 31, 2020, respectively (amortized cost: 2021 $49,564.9; 2020 $54,141.0) | $ 52,123 | $ 59,075 |
Debt Securities, at fair value under fair value option | 1,516.6 | 1,276.7 |
Debt Securities, trading, at fair value | 117.9 | 105.7 |
Equity securities, at fair value | 290.1 | 193.1 |
Mortgage loans, net of allowance for credit losses of $96.4 and $179.2 at September 30, 2021 and December 31, 2020, respectively | 11,731.4 | 10,727.5 |
Policy loans (including $3,487.5 and $3,454.2 at fair value under the fair value option at September 30, 2021 and December 31, 2020, respectively) | 4,511.9 | 4,523.5 |
Freestanding derivative instruments | 1,141.9 | 2,219.8 |
Other invested assets | 2,770.5 | 2,366.7 |
Total investments | 74,203.3 | 80,488 |
Cash and cash equivalents | 2,481.8 | 2,018.7 |
Accrued investment income | 511.3 | 557.9 |
Deferred acquisition costs | 14,016.8 | 13,897 |
Reinsurance recoverable, net of allowance for credit losses of $12.3 and $12.6 at September 30, 2021 and December 31, 2020, respectively | 33,752.5 | 35,269.5 |
Deferred income taxes, net | 1,004.6 | 1,057.8 |
Other assets | 1,306 | 1,103.7 |
Separate account assets | 237,096.2 | 219,062.9 |
Total assets | 364,372.5 | 353,455.5 |
Liabilities | ||
Reserves for future policy benefits and claims payable | 18,399.3 | 21,490.1 |
Other contract holder funds | 60,465.9 | 64,538.4 |
Funds withheld payable under reinsurance treaties (2) | 29,771.4 | 31,971.5 |
Short-term debt | 1,601.7 | 0 |
Long-term debt | 1,068.5 | 322 |
Securities lending payable | 20.7 | 13.3 |
Freestanding derivative instruments | 40.4 | 56.4 |
Other liabilities | 5,052.3 | 6,078.7 |
Separate account liabilities | 237,096.2 | 219,062.9 |
Total liabilities | 353,516.4 | 343,533.3 |
Commitments, Contingencies, and Guarantees (Note 14) | ||
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 September 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 September 30, 2021 and December 31, 2020, respectively (See Note 18) | 0.9 | 0.9 |
Additional paid-in capital | 5,927.5 | 5,926.9 |
Shares held in trust | 0 | (4.3) |
Equity compensation reserve | 10.1 | 7.7 |
Accumulated other comprehensive income, net of tax expense of $275.4 in 2021 and $765.9 in 2020 | 2,045.2 | 3,820.6 |
Retained earnings | 2,274.5 | (323.2) |
Total stockholders' equity | 10,258.2 | 9,428.6 |
Noncontrolling interests | 597.9 | 493.6 |
Total equity | 10,856.1 | 9,922.2 |
Total liabilities and equity | $ 364,372.5 | $ 353,455.5 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Debt securities, available for sale, allowance for credit losses | $ 9.4 | $ 13.6 |
Debt securities, available for sale, amortized cost | 49,564.9 | 54,141 |
Mortgage loans, allowance for credit loss | 96.4 | 179.2 |
Policy loans, fair value under fair value option | 3,487.5 | 3,454.2 |
Reinsurance recoverable, allowance for credit losses | 12.3 | 12.6 |
Funds withheld payable under reinsurance treaties, fair value under fair value option | $ 3,659.9 | 3,626.5 |
Common stock, par value (in usd per share) | $ 0.01 | |
Accumulated other comprehensive income, tax expense | $ 275.4 | $ 765.9 |
Class A common stock | ||
Common stock, authorized (in shares) | 900,000,000 | 900,000,000 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 93,099,859 | 93,099,859 |
Common stock, outstanding (in shares) | 93,099,859 | 93,099,859 |
Class B common stock | ||
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 1,364,484 | 1,364,484 |
Common stock, outstanding (in shares) | 1,364,484 | 1,364,484 |
Condensed Consolidated Income S
Condensed Consolidated Income Statements - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | ||||
Fee income | $ 1,961.9 | $ 1,666.5 | $ 5,673.5 | $ 4,847.9 |
Premium | 35.1 | 46.5 | 100.3 | 134 |
Net investment income | 852 | 881.4 | 2,575.6 | 2,105.6 |
Net gains (losses) on derivatives and investments | (1,379.3) | (2,504.8) | (1,194.4) | (4,517.7) |
Other income | 16.6 | 21.5 | 70.2 | 35.6 |
Total revenues | 1,486.3 | 111.1 | 7,225.2 | 2,605.4 |
Benefits, Losses and Expenses [Abstract] | ||||
Death, other policy benefits and change in policy reserves, net of deferrals | 394.1 | 224.2 | 887.1 | 1,071.4 |
Interest credited on other contract holder funds, net of deferrals | 216.6 | 230.3 | 656.6 | 979.3 |
Interest expense | 6.3 | 7.8 | 19 | 81 |
Operating costs and other expenses, net of deferrals | 613.6 | 573.3 | 1,811.5 | 367.2 |
Cost of reinsurance | 0 | 6.2 | 0 | 2,520.1 |
Amortization of deferred acquisition and sales inducement costs | 4 | (398.8) | 552.3 | (85.8) |
Total benefits and expenses | 1,234.6 | 643 | 3,926.5 | 4,933.2 |
Pretax income (loss) before noncontrolling interests | 251.7 | (531.9) | 3,298.7 | (2,327.8) |
Income tax expense (benefit) | (16.4) | (157) | 514.7 | (580.8) |
Net income (loss) | 268.1 | (374.9) | 2,784 | (1,747) |
Less: Net income (loss) attributable to noncontrolling interests | 61.9 | 21.7 | 186.3 | (37.8) |
Net income (loss) attributable to Jackson Financial Inc. | $ 206.2 | $ (396.6) | $ 2,597.7 | $ (1,709.2) |
Earnings per share | ||||
Basic (in usd per share) | $ 2.18 | $ (4.28) | $ 27.50 | $ (29.15) |
Diluted (in usd per share) | $ 2.18 | $ (4.28) | $ 27.50 | $ (29.15) |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 268.1 | $ (374.9) | $ 2,784 | $ (1,747) |
Other comprehensive income (loss), net of tax: | ||||
Change in net unrealized gains (losses) on securities not impaired (net of tax expense (benefit) of: $(86.1) and $129.9 for the three months ended September 30, 2021 and 2020, respectively, and $(429.8) and $553.3 for the nine months ended September 30, 2021 and 2020, respectively) | (313.9) | 488.6 | (1,554.7) | 2,081.4 |
Change in unrealized gains (losses) on securities for which an allowance for credit losses has been recorded (net of tax expense (benefit) of: $0.1 and $0.2 for the three months ended September 30, 2021 and 2020, respectively, and $0.7 and $1.2 for the nine months ended September 30, 2021 and 2020, respectively) | 0.3 | 0.4 | 2.5 | 4.3 |
Reclassification adjustment for gains (losses) included in net income (loss) (net of tax expense (benefit) of: $(8.6) and $(18.1) for the three months ended September 30, 2021 and 2020, respectively, and $(61.4) and $(168.0) for the nine months ended September 30, 2021 and 2020, respectively) | (31.4) | (67.8) | (223.2) | (631.8) |
Total other comprehensive income (loss) | (345) | 421.2 | (1,775.4) | 1,453.9 |
Comprehensive income (loss) | (76.9) | 46.3 | 1,008.6 | (293.1) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 61.9 | 21.7 | 186.3 | (37.8) |
Comprehensive income (loss) attributable to Jackson Financial Inc. | $ (138.8) | $ 24.6 | $ 822.3 | $ (255.3) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in net unrealized gains (losses) on securities not impaired, tax expense (benefit) | $ (86.1) | $ 129.9 | $ (429.8) | $ 553.3 |
Change in unrealized gains (losses) on securities for which an allowance for credit losses has been recorded, tax expense (benefit) | 0.1 | 0.2 | 0.7 | 1.2 |
Reclassification adjustment for gains (losses) included in net income (loss), tax expense (benefit) | $ (8.6) | $ (18.1) | $ (61.4) | $ (168) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Shares Held In Trust | Equity Compensation Reserve | Accumulated Other Comprehensive Income | Retained Earnings | Total Stockholders' Equity | Non-Controlling Interests | Cumulative effect of change in accounting principle | Cumulative effect of change in accounting principleRetained Earnings | Cumulative effect of change in accounting principleTotal Stockholders' Equity |
Balance at Dec. 31, 2019 | $ 7,320.6 | $ 0.4 | $ 3,077.4 | $ (4.3) | $ 0.5 | $ 2,396.7 | $ 1,365.8 | $ 6,836.5 | $ 484.1 | $ (55.4) | $ (55.4) | $ (55.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | (1,747) | (1,709.2) | (1,709.2) | (37.8) | ||||||||
Change in unrealized investment gains and losses, net of tax | 1,453.9 | 1,453.9 | 1,453.9 | |||||||||
Change in equity of noncontrolling interests | 25.3 | 25.3 | ||||||||||
Common stock issuance - debt restructure | 2,350 | 0.4 | 2,349.6 | 2,350 | ||||||||
Common stock issuance - Athene | 500 | 0.1 | 499.9 | 500 | ||||||||
Balance at Sep. 30, 2020 | 9,847.4 | 0.9 | 5,926.9 | (4.3) | 0.5 | 3,850.6 | (398.8) | 9,375.8 | 471.6 | |||
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 | $ (7.4) | $ (7.4) | $ (7.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | (374.9) | (396.6) | (396.6) | 21.7 | ||||||||
Change in unrealized investment gains and losses, net of tax | 421.2 | 421.2 | 421.2 | |||||||||
Change in equity of noncontrolling interests | 11.6 | 11.6 | ||||||||||
Common stock issuance - Athene | 500 | 0.1 | 499.9 | 500 | ||||||||
Balance at Sep. 30, 2020 | 9,847.4 | 0.9 | 5,926.9 | (4.3) | 0.5 | 3,850.6 | (398.8) | 9,375.8 | 471.6 | |||
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 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | 2,784 | 2,597.7 | 2,597.7 | 186.3 | ||||||||
Change in unrealized investment gains and losses, net of tax | (1,775.4) | (1,775.4) | (1,775.4) | |||||||||
Change in equity of noncontrolling interests | (82) | (82) | ||||||||||
Shares sold in connection with demerger | 4.9 | 0.6 | 4.3 | 4.9 | ||||||||
Reserve for equity compensation plans | 2.4 | 2.4 | 2.4 | |||||||||
Balance at Sep. 30, 2021 | 10,856.1 | 0.9 | 5,927.5 | 0 | 10.1 | 2,045.2 | 2,274.5 | 10,258.2 | 597.9 | |||
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 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | 268.1 | 206.2 | 206.2 | 61.9 | ||||||||
Change in unrealized investment gains and losses, net of tax | (345) | (345) | (345) | |||||||||
Change in equity of noncontrolling interests | (63.1) | (63.1) | ||||||||||
Shares sold in connection with demerger | 4.9 | 0.6 | 4.3 | 4.9 | ||||||||
Reserve for equity compensation plans | 1.6 | 1.6 | 1.6 | |||||||||
Balance at Sep. 30, 2021 | $ 10,856.1 | $ 0.9 | $ 5,927.5 | $ 0 | $ 10.1 | $ 2,045.2 | $ 2,274.5 | $ 10,258.2 | $ 597.9 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 2,784 | $ (1,747) | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net realized losses (gains) on investments | (203.9) | (184.2) | |
Net losses (gains) on derivatives | 1,413.4 | 5,492.2 | |
Net losses (gains) on funds withheld reinsurance | (15.1) | (790.3) | |
Interest credited on other contract holder funds, gross | 656.9 | 982.3 | |
Mortality, expense and surrender charges | (417.9) | (451.5) | |
Amortization of discount and premium on investments | 39.9 | 34.1 | |
Deferred income tax expense (benefit) | 543.7 | (454.5) | |
Cash received (paid to) from reinsurance transaction | 0 | (31.7) | |
Change in: | |||
Accrued investment income | 46.6 | (3.2) | |
Deferred acquisition costs and sales inducements | (41.6) | (853.8) | |
Other assets and liabilities, net | (1,229.4) | 455 | |
Net cash provided by (used in) operating activities | 3,576.6 | 2,447.4 | |
Sales, maturities and repayments of: | |||
Debt securities | 12,994.4 | 20,751.5 | |
Equity securities | 35.5 | 24.3 | |
Mortgage loans | 1,242.7 | 1,020.3 | |
Purchases of: | |||
Debt securities | (8,289.8) | (23,543.1) | |
Equity securities | (108) | (37.3) | |
Mortgage loans | (2,175.8) | (1,096.1) | |
Settlements related to derivatives and collateral on investments | (3,222.6) | (1,350.5) | |
Other investing activities | 147.7 | 528.1 | |
Net cash provided by (used in) investing activities | 624.1 | (3,702.8) | |
Policyholders' account balances: | |||
Deposits | 14,664.3 | 14,618.9 | |
Withdrawals | (21,646.8) | (16,230.7) | |
Net transfers to separate accounts | 2,068.3 | 2,245.2 | |
Proceeds from (payments on) repurchase agreements | (794) | 0 | |
Net proceeds from (payments on) Federal Home Loan Bank notes | (380) | (300.1) | |
Net proceeds from (payments on) long-term and short-term debt | 2,345.7 | (64.5) | |
Disposition of shares held in trust at cost, net | 4.9 | 0 | |
Common stock issuance - Athene | 0 | 500 | |
Net cash provided by (used in) financing activities | (3,737.6) | 768.8 | |
Net increase (decrease) in cash and cash equivalents | 463.1 | (486.6) | |
Cash and cash equivalents, beginning of period | 2,018.7 | 1,934.5 | |
Total cash and cash equivalents, end of period | 2,481.8 | 1,447.9 | |
Supplemental cash flow information | |||
Income taxes paid (received) | 36.1 | (1.3) | |
Interest paid | 15.3 | 75.7 | |
Non-cash investing activities | |||
Debt securities acquired from exchanges, payments-in-kind, and similar transactions | 302.6 | 382 | |
Other invested assets acquired from stock splits and stock distributions | 98.9 | 4.1 | |
Non-cash financing activities | |||
Non-cash debt restructuring transactions | [1] | 0 | (2,350) |
Shares issued in settlement of the debt restructuring | [1] | $ 0 | $ 2,350 |
[1] | See Note 18 for further description of the debt restructuring transactions. |
Business and Basis of Presentat
Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | 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 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 former 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 former affiliates; and • Other insignificant wholly owned subsidiaries. The condensed consolidated financial statements also include other insignificant partnerships, limited liability companies (“LLCs”) and other 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 $0.01 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 19.9 percent remaining interest in the Company. On September 9, 2021, the Company effected a 104,960.3836276-for-1 stock split of its Class A common stock and Class B common stock by way of a reclassification of its Class A common stock and Class B common stock (the “stock split”). The incremental par value of the newly issued shares was recorded with the offset to additional paid-in capital. All share and earnings per share information presented herein have been retroactively adjusted to reflect the stock split. On June 18, 2020, the Company’s subsidiary, Jackson, announced that it had entered into a funds withheld coinsurance agreement with Athene Life Re Ltd. (“Athene”) effective June 1, 2020 to reinsure on 100% quota share basis, a block of Jackson’s in-force fixed and fixed-index annuity product liabilities in exchange for a $1.2 billion ceding commission. In addition, we entered into an investment agreement with Athene Life Re Ltd., pursuant to which Athene invested $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. That investment was completed on July 17, 2020. In August 2020, the Company made a $500.0 million capital contribution to its subsidiary, Jackson. We continue to closely monitor developments related to the COVID-19 pandemic. The COVID-19 pandemic has caused significant economic and financial turmoil both in the United States and around the world. These conditions could continue and could worsen in the future. The extent to which the COVID-19 pandemic impacts our business, results of operations, financial condition and cash flows will depend on future developments that are highly uncertain and cannot be predicted. The Company implemented business continuity plans that were already in place to ensure the availability of services for our customers, work at home capabilities for our employees, where appropriate, and other ongoing risk management activities. The Company has had employees, as needed or voluntarily, in our offices during this time, as permitted by local and state restrictions. During the third quarter of 2021, the Company rolled out a broader return to office plan for all employees in waves over the remainder of 2021. 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 nine months ended September 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: • 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; • 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; • 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; • Assumptions used in calculating policy reserves and liabilities, including policyholder behavior, mortality rates, expenses, investment returns and policy crediting rates; • Assumptions as to future earnings levels being sufficient to realize deferred tax benefits; • Estimates related to expectations of credit losses on certain financial assets and off balance sheet exposures; • 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; • Value of guaranteed benefits; and, • 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 | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | 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, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The new guidance provides optional expedients for applying GAAP to contracts and other transactions affected by reference rate reform and is effective for contract modifications made between March 12, 2020 and December 31, 2022. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. The practical expedient allowed by this standard was elected and will be applied prospectively by the Company as reference rate reform unfolds. The contracts modified to date met the criteria for the practical expedient and therefore had no material impact on the Company’s consolidated financial statements. The Company will continue to evaluate the impacts of reference rate reform on contract modifications and other transactions through December 31, 2022. In October 2020, the FASB issued ASU No. 2020-08, “Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs,” which clarifies an entity’s accounting responsibilities related to callable debt securities. Effective January 1, 2021, the Company adopted ASU 2020-08, which did not have a material impact on the Company’s consolidated financial statements. In December 2019, FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which includes changes to the accounting for income taxes by eliminating certain exceptions to the approach for intra-period allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The amendments also simplified other areas including the accounting for franchise taxes and enacted tax laws or rates and clarified the accounting for transactions that result in the step-up in the tax basis of goodwill. Effective January 1, 2021, the Company adopted ASU 2019-12, which did not have a material impact on the Company’s consolidated financial statements. Changes in Accounting Principles – Issued but Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, “Targeted Improvements to the Accounting for Long Duration Contracts,” which includes changes to the existing recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity. The amendments in ASU 2018-12 contain four significant changes: 1) for the calculation of the liability for future policy benefits of nonparticipating traditional and limited-payment insurance and reinsurance contracts, cash flow assumptions and discount rates will be required to be updated at least annually; 2) market risk benefits, a new term for certain contracts or features that provide for potential benefits in addition to the account balance which exposes the insurer to other than nominal market risk, will be measured at fair value; 3) deferred acquisition costs (“DAC”) will be amortized on a constant-level basis, independent of profitability; and 4) enhanced disclosures, including quantitative information in rollforwards for balance sheet accounts, as well as information about significant inputs, judgments, assumptions and methods used in measurement will be required. ASU No. 2018-12 is effective for fiscal years beginning after December 15, 2022, with required retrospective application to January 1, 2021, and early adoption is permitted. The Company has begun its implementation efforts and is currently assessing the impact of the new guidance and does not plan to early adopt. Given the nature and extent of the required changes, the adoption of this standard is expected to have a significant impact on the Company’s consolidated financial statements and disclosures. In addition to |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 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 institutional products 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 September 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 September 30, 2021, the carrying value of investments rated by the Company’s consolidated investment advisor totaled $141.9 million. Percent of Total Debt Securities Carrying Value Investment Rating September 30, 2021 AAA 16.5% AA 9.2% A 29.2% BBB 39.1% Investment grade 94.0% BB 3.4% B and below 2.6% Below investment grade 6.0% Total debt securities 100.0% At September 30, 2021, based on ratings by NRSROs, of the total carrying value of debt securities in an unrealized loss position, 74% were investment grade, 11% were below investment grade and 15% 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 September 30, 2021, the industries accounting for the largest percentage of unrealized losses included financial services (15% of corporate gross unrealized losses) and consumer goods (15%). The largest unrealized loss related to a single corporate obligor was $20.3 million at September 30, 2021. At September 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): Allowance Gross Gross Amortized for Unrealized Unrealized Fair September 30, 2021 Cost (1) Credit Loss Gains Losses Value U.S. government securities $ 4,792.9 $ — $ 83.0 $ 412.9 $ 4,463.0 Other government securities 1,440.6 — 142.3 20.9 1,562.0 Public utilities 5,830.7 — 711.4 20.8 6,521.3 Corporate securities 29,964.7 — 2,043.9 239.0 31,769.6 Residential mortgage-backed 753.2 2.0 59.6 1.9 808.9 Commercial mortgage-backed 2,686.1 — 152.4 3.6 2,834.9 Other asset-backed securities 5,731.2 7.4 92.6 18.6 5,797.8 Total debt securities $ 51,199.4 $ 9.4 $ 3,285.2 $ 717.7 $ 53,757.5 Allowance Gross Gross Amortized for Unrealized Unrealized Fair December 31, 2020 Cost (1) Credit Loss Gains Losses 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 September 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. Allowance Gross Gross Amortized (1) for Unrealized Unrealized Fair Cost Credit Loss Gains Losses Due in 1 year or less $ 1,069.8 $ — $ 18.7 $ — $ 1,088.5 Due after 1 year through 5 years 8,537.8 — 506.7 17.2 9,027.3 Due after 5 years through 10 years 14,322.0 — 962.0 85.9 15,198.1 Due after 10 years through 20 years 8,536.1 — 878.8 184.4 9,230.5 Due after 20 years 9,563.2 — 614.4 406.1 9,771.5 Residential mortgage-backed 753.2 2.0 59.6 1.9 808.9 Commercial mortgage-backed 2,686.1 — 152.4 3.6 2,834.9 Other asset-backed securities 5,731.2 7.4 92.6 18.6 5,797.8 Total $ 51,199.4 $ 9.4 $ 3,285.2 $ 717.7 $ 53,757.5 (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 $115.2 million and $123.4 million at September 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 RMBS”). The Company’s non-agency RMBS include investments in securities backed by prime, Alt-A, and subprime loans as follows (in millions): Allowance Gross Gross Amortized for Unrealized Unrealized Fair September 30, 2021 Cost (1) Credit Loss Gains Losses Value Prime $ 255.6 $ 1.6 $ 12.5 $ 1.0 $ 265.5 Alt-A 101.4 0.4 22.8 0.2 123.6 Subprime 43.2 — 13.4 — 56.6 Total non-agency RMBS $ 400.2 $ 2.0 $ 48.7 $ 1.2 $ 445.7 Allowance Gross Gross Amortized for Unrealized Unrealized Fair December 31, 2020 Cost (1) Credit Loss Gains Losses Value 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 RMBS $ 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 residential mortgage loans as follows: • Prime loan-backed securities are collateralized by mortgage loans made to the highest rated borrowers. • Alt-A loan-backed securities are collateralized by mortgage loans made to borrowers who lack credit documentation or necessary requirements to obtain prime borrower rates. • 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): September 30, 2021 December 31, 2020 Less than 12 months Less than 12 months Gross Fair Gross Fair Unrealized # of Unrealized # of Losses securities Losses securities U.S. government securities $ 1.3 $ 134.5 20 $ 114.9 $ 3,944.7 7 Other government securities 12.9 272.8 31 0.8 89.4 7 Public utilities 15.2 535.2 70 1.8 146.5 8 Corporate securities 183.0 5,526.3 626 41.5 1,391.1 161 Residential mortgage-backed 1.8 186.8 96 1.2 35.4 28 Commercial mortgage-backed 2.8 167.8 22 3.2 151.9 13 Other asset-backed securities 18.5 1,880.3 260 1.4 796.4 91 Total temporarily impaired securities $ 235.5 $ 8,703.7 1,125 $ 164.8 $ 6,555.4 315 12 months or longer 12 months or longer Gross Fair Gross Fair Unrealized # of Unrealized # of Losses securities Losses securities U.S. government securities $ 411.5 $ 3,335.3 6 $ — $ — — Other government securities 8.0 52.4 6 — — — Public utilities 5.7 62.2 5 — — — Corporate securities 56.0 604.7 64 0.5 2.9 3 Residential mortgage-backed 0.1 3.3 12 — 1.8 4 Commercial mortgage-backed 0.8 40.2 4 0.3 9.7 1 Other asset-backed securities 0.1 13.0 3 3.3 29.8 4 Total temporarily impaired securities $ 482.2 $ 4,111.1 100 $ 4.1 $ 44.2 12 Total Total Gross Fair Gross Fair Unrealized # of Unrealized # of Losses securities Losses securities U.S. government securities $ 412.8 $ 3,469.8 26 $ 114.9 $ 3,944.7 7 Other government securities 20.9 325.2 37 0.8 89.4 7 Public utilities 20.9 597.4 75 1.8 146.5 8 Corporate securities (1) 239.0 6,131.0 690 42.0 1,394.0 164 Residential mortgage-backed 1.9 190.1 108 1.2 37.2 32 Commercial mortgage-backed 3.6 208.0 26 3.5 161.6 14 Other asset-backed securities 18.6 1,893.3 263 4.7 826.2 95 Total temporarily impaired securities $ 717.7 $ 12,814.8 1,225 $ 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 September 30, 2021 did not require an impairment recognized in earnings as the Company did not intend to sell these debt securities, 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 September 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 (losses) 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 RMBS, the assumed default percentage is dependent on the severity of delinquency status, with foreclosures and real estate owned receiving higher rates, but also includes the currently performing loans. 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 amount and is recorded to other comprehensive income. 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 with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses. Accrued interest receivables are presented separate from the amortized cost basis of 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 nine months ended September 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 September 30, 2021 US Other government securities Public Corporate securities Residential mortgage-backed Commercial mortgage-backed Other Total Balance at July 1, 2021 $ — $ — $ — $ — $ 0.8 $ — $ 6.0 $ 6.8 Additions for which credit loss was not previously recorded — — — — 0.7 — — 0.7 Changes for securities with previously recorded credit loss — — — — 0.6 — 17.1 17.7 Additions for purchases of PCD debt securities (1) — — — — — — — — Reductions from charge-offs — — — — — — — — Reductions for securities disposed — — — — (0.1) — (15.7) (15.8) Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — — Balance at September 30, 2021 (2) $ — $ — $ — $ — $ 2.0 $ — $ 7.4 $ 9.4 Three Months Ended September 30, 2020 US Other government securities Public Corporate securities Residential mortgage-backed Commercial mortgage-backed Other Total Balance at July 1, 2020 $ — $ — $ — $ — $ 0.3 $ — $ 17.2 $ 17.5 Additions for which credit loss was not previously recorded — — — — — — — — Changes for securities with previously recorded credit loss — — — — (0.3) — 0.2 (0.1) 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 September 30, 2020 (2) $ — $ — $ — $ — $ — $ — $ 17.4 $ 17.4 Nine Months Ended September 30, 2021 US Other government securities Public Corporate securities Residential mortgage-backed Commercial mortgage-backed Other Total Balance at January 1, 2021 $ — $ — $ — $ — $ — $ — $ 13.6 $ 13.6 Additions for which credit loss was not previously recorded — — — — 1.9 — — 1.9 Changes for securities with previously recorded credit loss — — — — 0.2 — 9.5 9.7 Additions for purchases of PCD debt securities (1) — — — — — — — — Reductions from charge-offs — — — — — — — — Reductions for securities disposed — — — — (0.1) — (15.7) (15.8) Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — — Balance at September 30, 2021 (2) $ — $ — $ — $ — $ 2.0 $ — $ 7.4 $ 9.4 Nine Months Ended September 30, 2020 US Other government securities Public Corporate securities Residential mortgage-backed Commercial mortgage-backed Other 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 — — — — (0.3) — 0.2 (0.1) 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 September 30, 2020 (2) $ — $ — $ — $ — $ — $ — $ 17.4 $ 17.4 (1) Represents purchased credit-deteriorated ("PCD") fixed maturity AFS securities. (2) Accrued interest receivable on debt securities totaled $396.6 million and $492.3 million as of September 30, 2021 and 2020, respectively, and was excluded from the estimate of credit losses for the three and nine months ended September 30, 2021 and 2020. Net Investment Income The sources of net investment income were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Debt securities $ 271.7 $ 416.8 $ 872.2 $ 1,338.7 Equity securities (0.2) 0.4 6.4 (13.3) Mortgage loans 79.4 83.6 241.5 285.3 Policy loans 19.8 21.8 55.5 59.7 Limited partnerships 192.7 113.3 585.6 (26.0) Other investment income 1.8 3.9 9.9 21.6 Total investment income excluding funds withheld assets 565.2 639.8 1,771.1 1,666.0 Net investment income on funds withheld assets (see Note 7) 299.6 277.1 884.5 506.0 Investment expenses: Derivative trading commission (0.9) (1.1) (2.2) (4.2) Depreciation on real estate (3.6) (2.7) (8.4) (8.2) Expenses related to consolidated entities (1) (7.5) (9.1) (24.1) (29.4) Other investment expenses (2) (0.8) (22.6) (45.3) (24.6) Total investment expenses (12.8) (35.5) (80.0) (66.4) Net investment income $ 852.0 $ 881.4 $ 2,575.6 $ 2,105.6 (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 $5.9 million and $21.3 million for the three and nine months ended September 30, 2021, respectively. Investment income (expense) of $(2.2) million and $34.7 million was recognized on securities carried at fair value recorded through income for the three and nine months ended September 30, 2021, respectively. Unrealized gains (losses) included in investment income that were recognized on equity securities held were $2.3 million and $(41.3) million for the three and nine months ended September 30, 2020, respectively. Investment income (expense) of $94.7 million and $3.5 million was recognized on securities carried at fair value recorded through income for the three and nine months ended September 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Available-for-sale securities Realized gains on sale $ 28.3 $ 99.2 $ 149.1 $ 519.2 Realized losses on sale (1.3) (2.7) (59.0) (186.4) Credit loss income (expense) (17.4) (0.3) (10.2) (17.4) Gross impairments (0.1) (0.2) (0.1) (26.6) Credit loss income (expense) on mortgage loans 13.5 (31.9) 61.9 (65.8) Other (1) 13.4 (41.1) 62.2 (38.8) Net gains (losses) excluding derivatives and funds withheld assets 36.4 23.0 203.9 184.2 Net gains (losses) on derivative instruments (see Note 4) (1,300.5) (2,149.4) (1,413.4) (5,492.2) Net gains (losses) on funds withheld reinsurance treaties (see Note 7) (115.2) (378.4) 15.1 790.3 Total net gains (losses) on derivatives and investments $ (1,379.3) $ (2,504.8) $ (1,194.4) $ (4,517.7) (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 include (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 nine months ended September 30, 2021 was $160.7 million and $1,345.1 million, which was approximately 98% and 95% of book value, respectively. The aggregate fair value of securities sold at a loss for the three and nine months ended September 30, 2020 was $107.0 million and $7,245.7 million, which was approximately 93% and 97% of book value, respectively. Proceeds from sales of available-for-sale debt securities were $1.0 billion and $1.9 billion during the three months ended September 30, 2021 and 2020, respectively. Proceeds from sales of available-for-sale debt securities were $6.6 billion and $17.4 billion during the nine months ended September 30, 2021 and 2020, respectively. 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. In the fourth quarter of 2021, the Company entered into a commitment to invest up to $300 million in the newly formed Private Equity Fund VIII. 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): September 30, 2021 December 31, 2020 Assets Debt securities, available for sale $ 1,350.7 $ 1,108.9 Debt securities, trading 117.9 105.7 Equity securities 128.9 125.8 Limited partnerships 1,118.2 958.7 Cash 46.3 57.1 Other assets 23.8 10.2 Total assets $ 2,785.8 $ 2,366.4 Liabilities Debt owed to non-controlling interests $ 1,006.4 $ 943.7 Other liabilities 355.2 200.5 Total other liabilities 1,361.6 1,144.2 Securities lending payable 3.3 1.0 Total liabilities $ 1,364.9 $ 1,145.2 Equity Noncontrolling equity $ 597.9 $ 493.6 Unconsolidated VIEs The Company invests in certain LPs and LLCs that it has 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, for both consolidated and unconsolidated VIEs, which was $3,338.0 million and $2,976.4 million as of September 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 $31.1 million and $23.6 million as of September 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 $10.8 billion and $10.2 billion at September 30, 2021 and December 31, 2020, respectively, are reported net of an allowance for credit losses of $86.0 million and $164.7 million at each date, respectively. At September 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 $34.8 million and $32.3 million at September 30, 2021 and December 31, 2020, respectively. Residential Mortgage Loans Residential mortgage loans of $942.1 million and $448.6 million at September 30, 2021 and December 31, 2020, respectively, are reported net of an allowance for credit losses of $10.4 million and $14.5 million at each date, respectively. Loans were collateralized by properties located in 50 states, the District of Columbia, Mexico, and Europe. Accrued interest receivable on residential mortgage loans was $13.6 million and $2.9 million at September 30, 2021 and December 31, 2020, respectively. Mortgage Loan Concessions In response to the adverse economic impact of the COVID-19 pandemic, the Company granted concessions to certain of its commercial mortgage loan borrowers, including payment deferrals and other loan modifications. The Company has el |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 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): September 30, 2021 Assets Liabilities Contractual/ Contractual/ Net Notional Fair Notional Fair Fair Amount (1) Value Amount (1) Value Value Freestanding derivatives Cross-currency swaps $ 758.8 $ 37.4 $ 1,008.6 $ 34.6 $ 2.8 Equity index call options 20,000.0 135.8 — — 135.8 Equity index futures (2) — — 17,329.8 — — Equity index put options 25,000.0 339.0 — — 339.0 Interest rate swaps 7,728.1 485.5 — — 485.5 Interest rate swaps - cleared (2) 1,500.0 — — — — Put-swaptions 15,500.0 104.8 2,500.0 4.9 99.9 Treasury futures (2) 3,986.6 — 13.9 — — Total freestanding derivatives 74,473.5 1,102.5 20,852.3 39.5 1,063.0 Embedded derivatives VA embedded derivatives (3) N/A — N/A 3,091.6 (3,091.6) FIA embedded derivatives (4) N/A — N/A 1,439.7 (1,439.7) Total embedded derivatives N/A — N/A 4,531.3 (4,531.3) Derivatives related to funds withheld under reinsurance treaties Cross-currency swaps 94.4 6.2 63.4 0.8 5.4 Cross-currency forwards 915.0 33.2 5.5 0.1 33.1 Funds withheld embedded derivative (5) N/A — N/A 271.7 (271.7) Total derivatives related to funds withheld under reinsurance treaties 1,009.4 39.4 68.9 272.6 (233.2) Total $ 75,482.9 $ 1,141.9 $ 20,921.2 $ 4,843.4 $ (3,701.5) (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/ Contractual/ Net Notional Fair Notional Fair Fair Amount (1) Value Amount (1) Value 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Derivatives excluding funds withheld under reinsurance treaties Cross-currency swaps $ (8.9) $ 18.1 $ (53.2) $ 46.5 Equity index call options 15.4 421.4 814.0 543.6 Equity index futures (196.3) (3,324.2) (2,866.0) (4,391.7) Equity index put options (71.0) (516.1) (681.8) 236.1 Interest rate swaps — (29.2) (148.2) 661.6 Interest rate swaps - cleared (9.6) — (59.9) — Put-swaptions (61.6) (18.4) 41.6 246.7 Treasury futures (123.1) (43.8) (895.8) 1,935.0 Fixed index annuity embedded derivatives (0.7) (0.4) (2.8) 31.5 Variable annuity embedded derivatives (844.7) 1,343.2 2,438.7 (4,801.5) Total net gains (losses) on derivative instruments excluding derivative instruments related to funds withheld under reinsurance treaties (1,300.5) (2,149.4) (1,413.4) (5,492.2) Derivatives related to funds withheld under reinsurance treaties Cross-currency swaps 5.7 — 11.6 — Cross-currency forwards 28.3 — 41.7 — Treasury futures — — — (204.2) Funds withheld embedded derivative 101.2 (189.6) 554.9 (468.6) Total net gains (losses) on derivative instruments related to funds withheld under reinsurance treaties 135.2 (189.6) 608.2 (672.8) Total net gains (losses) on derivative instruments including derivative instruments related to funds withheld under reinsurance treaties $ (1,165.3) $ (2,339.0) $ (805.2) $ (6,165.0) All of the Company’s trade agreements for freestanding, over-the-counter derivatives, contain credit downgrade provisions that allow a party to assign or terminate derivative transactions if the counterparty’s credit rating declines below an established limit. At September 30, 2021 and December 31, 2020, the fair value of the Company’s net non-cleared, over-the-counter derivative assets by counterparty were $1,101.4 million and $2,184.7 million, respectively, and held collateral was $1,125.3 million and $2,124.2 million, respectively, related to these agreements. At September 30, 2021 and December 31, 2020, the fair value of the Company’s net non-cleared, over-the-counter derivative liabilities by counterparty were nil and $13.1 million, respectively, and provided collateral was $0.9 million and $25.7 million, respectively, related to these agreements. If all of the downgrade provisions had been triggered at September 30, 2021 and December 31, 2020, in aggregate, the Company would have had to disburse $23.0 million and nil, respectively, to counterparties, representing the net fair values of derivatives by counterparty, less collateral held. Offsetting Assets and Liabilities The Company’s derivative instruments, repurchase agreements and securities lending agreements are subject to master netting arrangements and collateral arrangements. A master netting arrangement with a counterparty creates a right of offset for amounts due to and due from that same counterparty that is enforceable in the event of a default or bankruptcy. The Company recognizes amounts subject to master netting arrangements on a gross basis within the condensed consolidated balance sheets. The following tables present the gross and net information about the Company’s financial instruments subject to master netting arrangements (in millions): September 30, 2021 Gross Gross Net Amounts Gross Amounts Not Offset Financial Instruments (1) Cash Securities Collateral (2) Net Financial Assets: Freestanding derivative assets $ 1,141.9 $ — $ 1,141.9 $ 40.4 $ 583.0 $ 470.5 $ 48.0 Financial Liabilities: Freestanding derivative liabilities $ 40.4 $ — $ 40.4 $ 40.4 $ — $ — $ — Securities loaned 20.7 — 20.7 — 20.7 — — Repurchase agreements 306.0 — 306.0 — — 306.0 — Total financial liabilities $ 367.1 $ — $ 367.1 $ 40.4 $ 20.7 $ 306.0 $ — (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 sheets. (2) Excludes initial margin amounts for exchange-traded derivatives. December 31, 2020 Gross Gross Net Amounts Gross Amounts Not Offset Financial Instruments (1) Cash Securities Collateral (2) Net 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) Represents the amount that could be offset under master netting or similar arrangements that management elects not to offset on the condensed consolidated balance sheets. (2) Excludes initial margin amounts for exchange-traded derivatives. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes the fair value and carrying value of the Company’s financial instruments (in millions): September 30, 2021 December 31, 2020 Carrying Fair Carrying Fair Assets Debt securities (1) $ 53,757.5 $ 53,757.5 $ 60,457.4 $ 60,457.4 Equity securities 290.1 290.1 193.1 193.1 Mortgage loans 11,731.4 12,211.7 10,727.5 11,348.9 Limited partnerships 2,400.7 2,400.7 1,991.3 1,991.3 Policy loans (1) 4,511.9 4,511.9 4,523.5 4,523.5 Freestanding derivative instruments 1,141.9 1,141.9 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 2,481.8 2,481.8 2,018.7 2,018.7 GMIB reinsurance recoverable 278.6 278.6 340.4 340.4 Separate account assets 237,096.2 237,096.2 219,062.9 219,062.9 Liabilities Annuity reserves (2) 41,543.6 49,092.1 45,638.8 54,005.7 Reserves for guaranteed investment contracts (3) 994.4 1,032.8 1,275.5 1,332.1 Trust instruments supported by funding agreements (3) 6,322.3 6,564.2 8,383.9 8,701.8 FHLB funding agreements (3) 1,521.8 1,550.9 1,478.4 1,421.3 Funds withheld payable under reinsurance treaties (1) 29,771.4 29,771.4 31,971.5 31,971.5 Debt 2,670.2 2,746.9 322.0 412.3 Securities lending payable 20.7 20.7 13.3 13.3 Freestanding derivative instruments 40.4 40.4 56.4 56.4 Repurchase agreements 306.0 306.0 1,100.0 1,100.0 FHLB advances — — 380.0 380.0 Separate account liabilities 237,096.2 237,096.2 219,062.9 219,062.9 (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. Debt and Equity Securities 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 September 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 are incorporated in the discount rate. Cash flows, as estimated by the Company using issuer-specific default statistics and prepayment assumptions, are discounted to determine an estimated fair value. 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 September 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. Mortgage Loans 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. FHLBI Capital Stock 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 The funds withheld payable under reinsurance treaties includes both the funds withheld payable and the funds withheld embedded derivative. Certain funds withheld payable are held at fair value under the fair value option. The fair value of the funds withheld payable is equal to the fair value of the assets held as collateral, which primarily consists of debt and equity securities, mortgage loans, and policy loans. The fair value of the assets generally use industry standard valuation techniques and the valuation of the embedded derivative also requires certain significant unobservable inputs. The funds withheld payable are considered Level 2, while certain funds withheld payable at fair value under the fair value option and the funds withheld embedded derivative are considered Level 3, respectively, in the fair value hierarchy. The fair value of 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 contingent components of guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum withdrawal benefits for life (“GMWB for Life”), guaranteed minimum accumulation benefits (“GMAB”), and the reinsurance recoverable on the Company’s guaranteed minimum income benefits (“GMIB”), are recorded at fair value. Guaranteed benefits that are not subject to fair value accounting are accounted for as insurance benefits. The Company discontinued offering the GMIB in 2009 and GMAB in 2011. GMABs and non-life contingent components of GMWB and GMWB for Life contracts are recorded at fair value with changes in fair value recorded in net gains (losses) on derivatives and investments. The fair value of the reserve is based on the expectations of future benefit payments and certain future fees associated with the benefits. At the inception of the contract, the Company attributes to the embedded derivative a portion of rider fees collected from the contract holder, which is then held static in future valuations. Those fees, generally referred to as the attributed fees, are set such that the present value of the attributed fees is equal to the present value of future claims expected to be paid under the guaranteed benefit at the inception of the contract. In subsequent valuations, both the present value of future benefits and the present value of attributed fees are revalued based on current market conditions and policyholder behavior assumptions. The difference between each of the two components represents the fair value of the embedded derivative. Thus, when unfavorable equity market movements cause declines in the contract holder’s account value relative to the guarantee benefit, the valuation of future expected claims would generally increase relative to the measurement performed at the inception of the contract, resulting in an increase in the fair value of the embedded derivative liability (and vice versa). 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 inability to economically reinsure or hedge new issues of the GMIB, the Company discontinued offering the benefit in 2009. 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 risk is incorporated into the calculation through the use of discount rates based on a blend of observed market yields on debt for life insurers with similar credit ratings to the Company and matrix pricing data for expected yields on Jackson Financial debt (either actual debt issuance or indicative quotes) adjusted to operating company levels. Risk margins are also incorporated into the model assumptions, particularly for policyholder behavior. Estimates of future policyholder behavior are subjective and are based primarily on the Company’s experience. 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 short-term and 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. FHLB Advances Carrying value of the Company’s FHLB 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): September 30, 2021 Total Level 1 Level 2 Level 3 Assets Debt securities U.S. government securities $ 4,463.0 $ 4,463.0 $ — $ — Other government securities 1,562.0 — 1,562.0 — Public utilities 6,521.3 — 6,521.3 — Corporate securities 31,769.6 — 31,762.1 7.5 Residential mortgage-backed 808.9 — 808.9 — Commercial mortgage-backed 2,834.9 — 2,834.9 — Other asset-backed securities 5,797.8 — 5,797.7 0.1 Equity securities 290.1 136.3 44.0 109.8 Limited partnerships 11.3 10.6 0.7 Policy loans 3,487.5 — — 3,487.5 Freestanding derivative instruments 1,141.9 — 1,141.9 — Cash and cash equivalents 2,481.8 2,481.8 — GMIB reinsurance recoverable 278.6 — — 278.6 Separate account assets 237,096.2 — 237,096.2 — Total $ 298,544.9 $ 7,081.1 $ 287,579.6 $ 3,884.2 Liabilities Embedded derivative liabilities (1) $ 4,531.3 $ — $ 1,439.7 $ 3,091.6 Funds withheld payable under reinsurance treaties (2) 3,931.6 — — 3,931.6 Freestanding derivative instruments 40.4 — 40.4 — Total $ 8,503.3 $ — $ 1,480.1 $ 7,023.2 (1) Includes the embedded derivative liabilities of $3,091.6 million related to GMWB reserves included in reserves for future policy benefits and claims payable and $1,439.7 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 $271.7 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 table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources (in millions): September 30, 2021 Assets Total Internal External Debt securities: Corporate $ 7.5 $ — $ 7.5 Other asset-backed securities 0.1 0.1 — Equity securities 109.8 1.2 108.6 Limited partnerships 0.7 0.7 — Policy loans 3,487.5 3,487.5 — GMIB reinsurance recoverable 278.6 278.6 — Total $ 3,884.2 $ 3,768.1 $ 116.1 Liabilities Embedded derivative liabilities (1) $ 3,091.6 $ 3,091.6 $ — Funds withheld payable under reinsurance treaties (2) 3,931.6 3,931.6 — Total $ 7,023.2 $ 7,023.2 $ — (1) Includes the embedded derivative related to GMWB reserves. (2) Includes the Athene embedded derivative liability. December 31, 2020 Assets Total Internal External 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 (2) 4,453.1 4,453.1 — Total $ 10,045.2 $ 10,045.2 $ — (1) Includes the embedded derivative related to GMWB reserves. (2) Includes the Athene embedded derivative liability. 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 September 30, 2021 Fair Valuation Technique(s) Significant Unobservable Input(s) Assumption or Input Range Impact of Increase in Input on Fair Value Assets GMIB reinsurance recoverable $ 278.6 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) 0.00% - 1.38% Decrease Long-term Equity Volatility (6) 18.50% - 22.86% Increase Liabilities Embedded derivative liabilities $ 3,091.6 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) 0.00% - 1.38% Decrease Long-term Equity Volatility (6) 18.50% - 22.86% 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, 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. As of December 31, 2020 Fair Valuation Technique(s) Significant Unobservable Input(s) Assumption or Input Range Impact of Increase in Input on Fair Value 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 Volatility (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, 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. 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 tables above. At both September 30, 2021 and December 31, 2020, securities of $2.0 million are fair valued using techniques incorporating unobservable inputs and are classified in Level 3 of the fair value hierarchy. For these assets, their unobservable inputs and ranges of possible inputs do not materially affect their fair valuations and have been excluded from the quantitative information in the tables above. 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 tables 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 tables 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 |
Deferred Acquisition Costs
Deferred Acquisition Costs | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Deferred Acquisition Costs | Deferred Acquisition Costs The balances of, and changes, in deferred acquisition costs were as follows (in millions): Nine Months Ended September 30, 2021 2020 Balance, beginning of period $ 13,897.0 $ 12,336.8 Deferrals of acquisition costs 592.1 537.7 Amortization (551.1) 854.4 Write-off of amortization related to Athene transaction — (625.8) Unrealized investment (gains) losses 78.8 271.2 Balance, end of period $ 14,016.8 $ 13,374.3 |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Reinsurance | 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. These include both direct and assumed accident and health business, direct and assumed life insurance business, and certain institutional annuities. 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 fixed and fixed-index annuity product liabilities in exchange for a $1.2 billion ceding commission, which was subject to a post-closing adjustment. Jackson allocated investments with a statutory book value of approximately $25.6 billion in support of reserves associated with the transaction to a segregated custody account, which investments are subject to an investment management agreement between Jackson and Apollo Insurance Solutions Group, LP ("Apollo"), an Athene affiliate. To further support its obligations under the coinsurance agreement, Athene procured $1.2 billion in letters of credit for Jackson’s benefit and has established a trust account for Jackson’s benefit funded with assets with a book value of approximately $260.0 million at September 30, 2021. In September 2020, the post-closing settlement resulted in ceded premium of $6.3 million and a decrease of $28.5 million in ceding commission. Pursuant to the Athene coinsurance agreement, the Company holds certain assets as collateral. At September 30, 2021 and December 31, 2020, assets held as collateral in the segregated custody account were $29.8 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 reinsurance with other parties, certain blocks of business. These blocks of business include disability income and accident and health business, a mix of life and annuity insurance business, and corporate owned life insurance business. 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): September 30, 2021 December 31, 2020 Assets Debt securities $ 20,617.7 $ 24,642.4 Equity securities 128.5 42.2 Mortgage loans 4,713.1 2,985.5 Policy loans 3,503.9 3,470.8 Derivative instruments, net 38.4 (13.1) Limited partnerships 537.8 124.9 Cash and cash equivalents 383.5 394.1 Accrued investment income 171.4 190.3 Other assets and liabilities, net (455.6) 22.8 Total assets (2) $ 29,638.7 $ 31,859.9 Liabilities Funds held under reinsurance treaties (1) $ 29,771.4 $ 31,971.5 Total liabilities $ 29,771.4 $ 31,971.5 (1) Includes funds withheld embedded derivative of $271.7 million and 826.6 million at September 30, 2021 and December 31, 2020, respectively. (2) Certain assets are reported at amortized cost while the fair value of those assets is 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Debt securities $ 183.5 $ 210.2 $ 581.0 $ 282.1 Equity securities 1.0 0.7 3.4 0.7 Mortgage loans 49.3 14.1 127.3 24.6 Policy loans 76.0 79.3 237.7 233.8 Limited partnerships 16.1 — 16.7 — Other investment income — 1.4 0.2 1.5 Total investment income on funds withheld assets 325.9 305.7 966.3 542.7 Other investment expenses on funds withheld assets (1) (26.3) (28.6) (81.8) (36.7) Total net investment income on funds withheld reinsurance treaties $ 299.6 $ 277.1 $ 884.5 $ 506.0 (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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Available-for-sale securities Realized gains on sale $ 80.7 $ 52.6 $ 339.0 $ 1,650.7 Realized losses on sale (1.4) (3.6) (14.2) (5.8) Credit loss expense (1.0) — (1.5) — Gross impairments — — — (1.6) Credit loss expense on mortgage loans 25.5 (4.7) 20.9 (22.4) Other (19.8) — (31.9) — Net gains (losses) on non-derivative investments 84.0 44.3 312.3 1,620.9 Net gains (losses) on derivative instruments 34.0 — 53.3 (204.2) Net gains (losses) on funds withheld payable under reinsurance treaties (1) (233.2) (422.7) (350.5) (626.4) Total net gains (losses) on derivatives and investments $ (115.2) $ (378.4) $ 15.1 $ 790.3 (1) Includes the Athene embedded derivative gain (loss) of $101.2 million and $554.9 million for the three and nine months ended September 30, 2021, respectively, and $(189.6) million and $(468.6) million for the three and nine months ended September 30, 2020, respectively. 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): September 30, December 31, 2021 2020 Reserves: Life $ 5,878.4 $ 5,963.9 Accident and health 554.0 568.7 Guaranteed minimum income benefits 278.6 340.3 Other annuity benefits (1) 26,176.9 27,535.8 Claims liability and other 864.6 860.8 Total $ 33,752.5 $ 35,269.5 (1) |
Reserves for Future Policy Bene
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds | Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds The following table sets forth the Company’s reserves for future policy benefits and claims payable balances (in millions): September 30, December 31, 2021 2020 Traditional life $ 4,276.0 $ 4,535.3 Guaranteed benefits (1) 6,039.0 8,508.5 Claims payable 1,042.0 1,109.5 Accident and health 1,242.2 1,257.2 Group payout annuities 4,971.4 5,220.3 Other 828.7 859.3 Total $ 18,399.3 $ 21,490.1 (1) Primarily i ncludes 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): September 30, December 31, 2021 2020 Interest-sensitive life $ 11,651.8 $ 11,835.5 Variable annuity fixed option 10,340.4 10,609.6 Fixed annuity 16,087.8 16,746.3 Fixed index annuity (1) 13,547.4 14,209.2 GICs, funding agreements and FHLB advances 8,838.5 11,137.8 Total $ 60,465.9 $ 64,538.4 (1) Includes the embedded derivative liabilities related to fixed index annuity of $1,439.7 million and $1,483.9 million at September 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 included 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. For payout annuities, as included in the above table, reserves are determined under the methodology for limited-payment contracts (for those with significant life contingencies) or using a constant yield method and assumptions as of the issue date for mortality, interest rates, lapse and expenses plus provisions for adverse deviations. At September 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 2.01% average guaranteed rate. The Company recorded a fair value adjustment at acquisition related to certain annuity and interest sensitive liability blocks of business to reflect the cost of the interest guarantees within the in-force liabilities, based on the difference between the guaranteed interest rate and an assumed new money guaranteed interest rate at acquisition. This adjustment was recorded in reserves for future policy benefits and claims payable. This reserve is reassessed at the end of each period, taking into account changes in the in-force block. Any resulting change in the reserve is recorded as a change in reserve through the condensed consolidated income statements. At both September 30, 2021 and December 31, 2020, approximately 95% of the Company’s annuity account values correspond to crediting rates that are at the minimum guaranteed interest rates. The following tables show the distribution of the fixed interest rate annuities’ account values within the presented ranges of minimum guaranteed interest rates (in millions): September 30, 2021 Minimum Account Value Fixed Fixed Index Variable Total 1.0% $ 140.0 $ 253.9 $ 6,241.7 $ 6,635.6 >1.0% - 2.0% 58.1 1.4 224.2 283.7 >2.0% - 3.0% 1,131.3 183.0 3,310.4 4,624.7 >3.0% - 4.0% 602.5 — — 602.5 >4.0% - 5.0% 277.7 — — 277.7 >5.0% - 5.5% 72.0 — — 72.0 Subtotal 2,281.6 438.3 9,776.3 12,496.2 Ceded reinsurance 12,330.0 13,109.3 — 25,439.3 Total $ 14,611.6 $ 13,547.6 $ 9,776.3 $ 37,935.5 December 31, 2020 Minimum Account Value 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 September 30, 2021 and December 31, 2020, approximately 80% 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): Minimum September 30, 2021 December 31, 2020 Account Value - Interest Sensitive Life >2.0% - 3.0% $ 254.8 $ 269.6 >3.0% - 4.0% 2,753.8 2,819.5 >4.0% - 5.0% 2,412.1 2,488.2 >5.0% - 6.0% 1,984.9 2,044.6 Subtotal 7,405.6 7,621.9 Retro treaties 4,246.2 4,213.6 Total $ 11,651.8 $ 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 September 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. |
Certain Nontraditional Long-Dur
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees | 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 September 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): Minimum Return Account Net Amount at Risk Weighted Average Attained Age Average Period until Expected Annuitization September 30, 2021 Return of net deposits plus a minimum return GMDB 0-6% $ 184,766.9 $ 2,286.5 68.6 years GMWB - Premium only 0% 2,883.1 9.9 GMWB 0-5%* 239.2 8.9 GMAB - Premium only 0% — — Highest specified anniversary account value minus withdrawals post-anniversary GMDB 14,223.6 301.1 69.7 years GMWB - Highest anniversary only 3,728.2 69.8 GMWB 633.5 47.8 Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary GMDB 0-6% 9,475.4 695.6 71.8 years GMIB 0-6% 1,638.3 496.6 0.5 years GMWB 0-8%* 172,918.5 5,775.1 Weighted Average Attained Age Average Period until Expected Annuitization Minimum Return Account Net Amount at Risk December 31, 2020 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 * Ranges shown based on simple interest. The upper limits of 5% or 8% simple interest are approximately equal to 4.1% and 6.0%, respectively, on a compound interest basis over a typical 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. Amounts shown as GMWB above include a ‘not-for-life’ component up to the point at which the guaranteed withdrawal benefit is exhausted, after which benefits paid are considered to be ‘for-life’ benefits. The liability related to this ‘not-for-life’ portion is valued as an embedded derivative, while the ‘for-life’ benefits are valued as an insurance liability (see below). For this table, the net amount at risk of the ‘not-for-life’ component is the undiscounted excess of the guaranteed withdrawal benefit over the account value, and that of the ‘for-life’ component is the estimated value of additional life contingent benefits paid after the guaranteed withdrawal benefit is exhausted. Account balances of contracts with guarantees were invested in variable separate accounts as follows (in millions): September 30, December 31, 2021 2020 Fund type: Equity $ 145,386.1 $ 132,213.0 Bond 20,211.3 20,202.9 Balanced 41,708.4 39,626.1 Money market 1,830.0 1,861.6 Total $ 209,135.8 $ 193,903.6 GMDB liabilities reflected in the general account were as follows (in millions): Nine Months Ended September 30, 2021 2020 Balance as of beginning of period $ 1,418.3 $ 1,282.9 Incurred guaranteed benefits 173.4 315.0 Paid guaranteed benefits (78.3) (110.0) Balance as of end of period $ 1,513.4 $ 1,487.9 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 September 30, 2021 and December 31, 2020 (except where otherwise noted): • Use of a series of stochastic investment performance scenarios, based on historical average market volatility. • Mean investment performance assumption of 7.15%, after investment management fees, but before external investment advisory fees and mortality and expense charges. • Mortality equal to 38% to 100% of the IAM 2012 basic table improved using Scale G through 2019. • Lapse rates varying by contract type, duration and degree the benefit is in-the-money and ranging from 0.3% to 27.9% (before application of dynamic adjustments). • Discount rates: 7.15% on 2020 and later issues, 7.40% on 2013 through 2019 issues, 8.40% 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 $3,091.6 million and $5,592.1 million at September 30, 2021 and December 31, 2020, respectively, and was reported in reserves for future policy benefits and claims payable. The Company has also issued certain GMWB products that guarantee payments over a lifetime. Reserves for the portion of these benefits after the point where the guaranteed withdrawal balance is exhausted are calculated using assumptions and methodology similar to the GMDB liability. At September 30, 2021 and December 31, 2020, these GMWB reserves totaled $196.6 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 September 30, 2021 and December 31, 2020, GMIB reserves before reinsurance totaled $82.3 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, as established according to the methodologies described below, are as follows: September 30, 2021 December 31, 2020 Benefit Type Liability Net Amount Weighted Average Attained Age Liability Net Amount Weighted Average Attained Age Insurance benefits * $ 939.6 $ 18,641.4 63.9 years $ 939.6 $ 19,483.0 63.5 years Account balance adjustments 138.7 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 excess benefits, and thus may include some policies with zero projected excess benefits. The following assumptions and methodology were used to determine the universal life insurance benefit liability for the periods referenced in the table above: • Use of a series of deterministic premium persistency scenarios. • Other experience assumptions similar to those used in amortization of deferred acquisition costs. • Discount rates equal to credited interest rates, approximately 3.0% to 5.5% at both September 30, 2021 and December 31, 2020. |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Debt | Short-Term and Long-Term Debt The aggregate carrying value of short-term and long-term debt were as follows (in millions): September 30, December 31, 2021 2020 Short-Term Debt Term loan due 2022 1,601.7 — Long-Term Debt Term loan due 2023 $ 750.8 $ — Surplus notes 249.7 249.7 FHLBI bank loans 68.0 72.3 Total long-term debt $ 1,068.5 $ 322.0 Scheduled Maturities of Debt Due in less than 1 year $ 1,601.7 Due in more than 1 to 5 years 750.8 Due after 5 years 317.7 Total $ 2,670.2 Term Loan 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 a $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. On September 10, 2021, the Company borrowed an aggregate principal amount of $2.35 billion under the term loan facilities as follows: $1.6 billion under the 2022 DDTL Facility and $750.0 million under the 2023 DDTL Facility. The proceeds of those borrowings were used for general corporate purposes, including liquidity at the holding company and capitalization of the insurance subsidiaries. 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 the Company or its 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 and (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, as amended, 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 $15.3 million for the three and nine months ended September 30, 2021, respectively. Interest expense on the notes was $5.2 million and $15.4 million for the three and nine months ended September 30, 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, as amended, 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 nil and $41.0 million for the three and nine months ended September 30, 2020. FHLB 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 0.58% for the for the nine months ended September 30, 2021 and 2020. The outstanding balance on these loans was $68.1 million and $72.3 million at September 30, 2021 and December 31, 2020, respectively. At September 30, 2021, the loans were collateralized by mortgage-related securities and commercial mortgage loans with a carrying value of $92.7 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% per annum and was due November 7, 2020. In 2020, the Company transferred this note, plus all outstanding interest due, to Prudential and in turn the Company issued shares as further described in Note 18. Interest expense on the notes was nil and $3.6 million for the three and nine months ended September 30, 2020, respectively. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Federal Home Loan Bank Advances | Federal Home Loan Bank AdvancesThe 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 nil and $380.0 million were outstanding at September 30, 2021 and December 31, 2020, respectively, and were recorded in other liabilities. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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 benefit of $19.0 million and $35.3 million during the three and nine months ended September 30, 2020, respectively. 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 (8.6)% and 16.5% for the three and nine months ended September 30, 2021, compared with 28.3% and 25.4% for the same periods in 2020. The effective tax rate differs from the statutory rate of 21% primarily due to the dividends received deduction and utilization of tax credits. The reduction in the effective tax rate for the three months ended September 30, 2021 was due to the relationship of taxable income to consolidated pre-tax income and the impact of the provision-to-return adjustments recorded in the current quarter. The reduction in the effective tax rate for the nine months ended September 30, 2021 was due to the relationship of taxable income to consolidated pre-tax income, the impact of the CARES Act recorded in 2020, offset by the impact of the provision-to-return adjustments recorded in the current quarter. The Company's effective income tax rate of 16.5% for the nine months ended |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 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 retirees, providing access to equity market appreciation and add-on benefits, including guaranteed lifetime income. A fixed index annuity is designed 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 benefit. A fixed annuity is a guaranteed product designed to build wealth without market exposure, through a crediting rate that is likely to be superior to interest rates offered from banks or money market funds. 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. FHLBI 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 spreads on general account assets. 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 annuities, consisting of a closed block of defined benefit annuity plans assumed from John Hancock USA and John Hancock Life Insurance Company of New York through a reinsurance agreement. A single premium payment from an employer (contract holder) funds the pension benefits for its employees (participants). The contracts are tailored to meet the requirements of the specific pension plan being covered. 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 financial measures that management believes are critical to the evaluation of the financial performance of the Company’s segments. The Company uses the same accounting policies and procedures to measure segment pretax adjusted operating earnings as used in its reporting of consolidated net income. Its primary measure is pretax adjusted operating earnings, which is defined as net income recorded in accordance with GAAP, excluding certain items that may be highly variable from period to period due to accounting treatment under GAAP, or that are non-recurring in nature, as well as certain other revenues and expenses which are not considered to drive underlying profitability. Operating revenues and pretax adjusted operating earnings should not be used as a substitute for net income as calculated in accordance with GAAP. 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 component of the impairment charges and change in fair value of funds withheld embedded derivative related to the Athene Reinsurance transaction; • 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 or other non-recurring items, such as costs relating to the Company’s separation from its former parent, Prudential, the impact of discontinued operations and investments that are consolidated on the financial statements due to U.S. GAAP accounting requirements, such as investments in collateralized loan obligations, but for which the consolidation effects are not aligned with the Company’s economic interest or exposure to those entities; and • 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 September 30, 2021 Retail Annuities Closed Life Institutional Corporate Intersegment Eliminations Total Operating Revenues Fee income $ 1,089.9 $ 122.5 $ — $ 32.4 $ (14.1) $ 1,230.7 Premium — 38.2 — — — 38.2 Net investment income 180.7 244.4 68.7 (55.2) 48.8 487.4 Income on operating derivatives 13.3 18.4 (1.1) 7.9 — 38.5 Other income 11.8 7.6 — (2.8) — 16.6 Total Operating Revenues 1,295.7 431.1 67.6 (17.7) 34.7 1,811.4 Operating Benefits and Expenses Death, other policy benefits and change in policy 24.6 218.2 — — — 242.8 Interest credited on other contract holder funds, net of deferrals (1) 66.3 103.0 47.3 — — 216.6 Interest expense (1) 5.7 — (1.9) 2.5 — 6.3 Operating costs and other expenses, net of deferrals 512.5 37.6 1.1 49.9 — 601.1 Deferred acquisition and sales inducements 159.4 4.0 — — 10.0 173.4 Total Operating Benefits and Expenses 768.5 362.8 46.5 52.4 10.0 1,240.2 Pretax Adjusted Operating Earnings $ 527.2 $ 68.3 $ 21.1 $ (70.1) $ 24.7 $ 571.2 Three Months Ended September 30, 2020 Retail Annuities Closed Life Institutional Corporate Intersegment Eliminations Total Operating Revenues Fee income $ 881.0 $ 127.3 $ — $ 39.2 $ (17.8) $ 1,029.7 Premium — 49.7 — — — 49.7 Net investment income 135.3 245.6 87.6 (26.4) 49.8 491.9 Income on operating derivatives 10.2 21.4 — 6.6 — 38.2 Other income 12.9 7.6 — 1.0 — 21.5 Total Operating Revenues 1,039.4 451.6 87.6 20.4 32.0 1,631.0 Operating Benefits and Expenses Death, other policy benefits and change in policy 22.4 237.0 — — — 259.4 Interest credited on other contract holder funds, net 65.1 107.2 58.0 — — 230.3 Interest expense 5.8 — 2.0 — — 7.8 Operating costs and other expenses, net of deferrals 464.2 39.3 1.3 32.7 — 537.5 Deferred acquisition and sales inducements (61.0) 3.2 — — 8.1 (49.7) Total Operating Benefits and Expenses 496.5 386.7 61.3 32.7 8.1 985.3 Pretax Adjusted Operating Earnings $ 542.9 $ 64.9 $ 26.3 $ (12.3) $ 23.9 $ 645.7 Nine Months Ended September 30, 2021 Retail Annuities Closed Life Institutional Corporate Intersegment Eliminations Total Operating Revenues Fee income $ 3,135.6 $ 370.5 $ — $ 101.3 $ (43.8) $ 3,563.6 Premium — 109.5 — — — 109.5 Net investment income 529.4 705.8 189.1 (99.8) 145.9 1,470.4 Income on operating derivatives 41.9 56.1 (1.1) 20.3 — 117.2 Other income 35.4 29.3 — 5.5 — 70.2 Total Operating Revenues 3,742.3 1,271.2 188.0 27.3 102.1 5,330.9 Operating Benefits and Expenses Death, other policy benefits and change in policy 42.1 630.9 — — — 673.0 Interest credited on other contract holder funds, net of deferrals (1) 199.9 309.6 147.1 — — 656.6 Interest expense (1) 16.5 — — 2.5 — 19.0 Operating costs and other expenses, net of deferrals 1,472.5 116.1 3.6 156.3 — 1,748.5 Deferred acquisition and sales inducements 232.6 11.0 — — 24.9 268.5 Total Operating Benefits and Expenses 1,963.6 1,067.6 150.7 158.8 24.9 3,365.6 Pretax Adjusted Operating Earnings $ 1,778.7 $ 203.6 $ 37.3 $ (131.5) $ 77.2 $ 1,965.3 Nine Months Ended September 30, 2020 Retail Annuities Closed Life Institutional Corporate Intersegment Eliminations Total Operating Revenues Fee income $ 2,530.7 $ 385.8 $ — $ 126.3 $ (62.8) $ 2,980.0 Premium — 143.6 — — — 143.6 Net investment income 762.1 543.9 284.4 (103.8) 127.0 1,613.6 Income on operating derivatives 35.9 39.2 — 15.1 — 90.2 Other income 17.3 13.4 1.6 3.3 — 35.6 Total Operating Revenues 3,346.0 1,125.9 286.0 40.9 64.2 4,863.0 Operating Benefits and Expenses Death, other policy benefits and change in policy 40.2 642.5 — — — 682.7 Interest credited on other contract holder funds, 463.1 321.8 194.4 — — 979.3 Interest expense 21.5 — 14.9 44.6 — 81.0 Operating costs and other expenses, 1,313.5 115.7 3.9 125.5 — 1,558.6 Deferred acquisition and sales inducements 102.8 10.9 — — 17.2 130.9 Total Operating Benefits and Expenses 1,941.1 1,090.9 213.2 170.1 17.2 3,432.5 Pretax Adjusted Operating Earnings $ 1,404.9 $ 35.0 $ 72.8 $ (129.2) $ 47.0 $ 1,430.5 (1) At September 30, 2021, interest expense recorded for certain funding agreements has been reclassified to interest credited on other contract holder funds for Institutional Products, prospectively. Included in the intersegment eliminations in the above tables, is the elimination from fee income and investment income of investment fees paid by Jackson to PPM, and the elimination of investment income between Retail Annuities and the Corporate and Other segments. The following table summarizes the reconciling items from the non-GAAP measure of operating revenues to the GAAP measure of total revenues attributable to the Company (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Total operating revenues $ 1,811.4 $ 1,631.0 $ 5,330.9 $ 4,863.0 Fees attributed to variable annuity benefit reserves 728.1 633.7 2,100.7 1,858.3 Net gains (losses) on derivatives and investments (1,417.9) (2,542.9) (1,311.7) (4,608.0) Net investment income related to noncontrolling interests 61.9 21.7 186.3 (37.8) Consolidated investments 3.2 90.5 34.5 23.9 Net investment income on funds withheld assets 299.6 277.1 884.5 506.0 Total revenues $ 1,486.3 $ 111.1 $ 7,225.2 $ 2,605.4 The following table summarizes the reconciling items from the non-GAAP measure of operating benefits and expenses to the GAAP measure of total benefits and expenses attributable to the Company (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Total operating benefits and expenses $ 1,240.2 $ 985.3 $ 3,365.6 $ 3,432.5 Benefits attributed to variable annuity benefit reserves 25.0 32.0 91.4 121.9 Amortization of DAC and DSI related to non-operating revenues and expenses (169.4) (349.0) 283.7 (980.7) SOP 03-1 reserve movements 126.4 (67.4) 122.8 266.7 Athene reinsurance transaction — 34.9 — 2,081.6 Other items 12.4 7.2 63.0 11.2 Total benefits and expenses $ 1,234.6 $ 643.0 $ 3,926.5 $ 4,933.2 The following table summarizes the reconciling items, net of deferred acquisition costs and deferred sales inducements, from the non-GAAP measure of pretax adjusted operating earnings to the GAAP measure of net income attributable to the Company (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Pretax adjusted operating earnings $ 571.2 $ 645.7 $ 1,965.3 $ 1,430.5 Non-operating adjustments (income) loss: Fees attributable to guarantee benefit reserves 728.1 633.7 2,100.7 1,858.3 Net movement in freestanding derivatives (493.3) (3,530.3) (3,966.3) (812.4) Net reserve and embedded derivative movements (996.7) 1,378.1 2,221.8 (5,158.6) DAC and DSI impact 169.3 349.1 (283.8) 980.9 Net realized investment gains (losses) including change in fair value of funds withheld embedded derivative (79.1) (355.4) 218.7 974.5 Loss on funds withheld reinsurance transaction — (34.9) — (2,081.6) Net investment income on funds withheld assets 299.6 277.1 884.5 506.0 Other items (9.3) 83.3 (28.5) 12.4 Pretax income (loss) attributable to Jackson Financial Inc. 189.8 (553.6) 3,112.4 (2,290.0) Income tax expense (benefit) (16.4) (157.0) 514.7 (580.8) Net income (loss) attributable to Jackson Financial, Inc. $ 206.2 $ (396.6) $ 2,597.7 $ (1,709.2) |
Commitments, Contingencies, and
Commitments, Contingencies, and Guarantees | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Guarantees | Commitments, Contingencies, and GuaranteesThe 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 September 30, 2021, the Company had unfunded commitments related to its investments in limited partnerships and limited liability companies totaling $1,489.1 million. At September 30, 2021, unfunded commitments related to fixed-rate commercial mortgage loans and other debt securities totaled $1,555.3 million. |
Other Related Party Transaction
Other Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Other Related Party Transactions | Other Related Party Transactions The Company's investment management operation, PPM, provides investment services to certain Prudential affiliated entities. The Company recognized $9.4 million and $9.8 million of revenue during the three months ended September 30, 2021 and 2020, and $28.1 million and $26.9 million of revenue during the nine months ended September 30, 2021 and 2020, associated with these investment services. This revenue is included in fee income in the accompanying consolidated income statements. The Company, through its PGDS subsidiary, provides various information security and technology services to certain Prudential affiliated entities. The Company recognized $0.8 million and $0.4 million of revenue during the three months ended September 30, 2021 and 2020, and $3.4 million and $1.1 million of revenue during the nine months ended September 30, 2021 and 2020, associated with these services. This revenue is included in other income in the accompanying consolidated income statements and is substantially equal to the costs incurred to provide the services, which are reported in operating costs and other expenses in the consolidated income statements. 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 $25.7 million and $27.4 million during the three months ended September 30, 2021 and 2020, and $79.6 million and $31.5 million during the nine months ended September 30, 2021 and 2020, associated with these services. |
Operating Costs and Other Expen
Operating Costs and Other Expenses | 9 Months Ended |
Sep. 30, 2021 | |
Operating Costs And Other Expenses [Abstract] | |
Operating Costs and Other Expenses | 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Asset-based commission expenses $ 285.9 $ 233.2 $ 834.1 $ 658.7 Other commission expenses 262.9 261.4 792.4 744.8 Athene ceding commission (1) — 28.5 — (1,202.6) General and administrative expenses 256.5 235.7 777.1 702.1 Deferral of acquisition costs (191.7) (185.5) (592.1) (535.8) Total operating costs and other expenses $ 613.6 $ 573.3 $ 1,811.5 $ 367.2 (1) See Note 7 for further information |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table represents changes in the balance of accumulated other comprehensive income (" AOCI"), net of income tax, related to unrealized investment gains (losses) (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Balance, beginning of period (1) $ 2,390.2 $ 3,429.4 $ 3,820.6 $ 2,396.7 OCI before reclassifications (313.6) 489.0 (1,552.2) 2,085.7 Amounts reclassified from AOCI (31.4) (67.8) (223.2) (631.8) Balance, end of period (1) $ 2,045.2 $ 3,850.6 $ 2,045.2 $ 3,850.6 (1) Includes $481.3 million, $1,212.8 million, and $1,213.9 million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of September 30, 2021, December 31, 2020, and September 30, 2020, respectively. The following table represents amounts reclassified out of AOCI (in millions): AOCI Components Amounts Affected Line Item in the Three Months Ended September 30, 2021 2020 Net unrealized investment gain (loss): Net realized gain (loss) on investments $ (40.0) $ (87.2) Net gains (losses) on derivatives and investments Other impaired securities — 1.3 Net gains (losses) on derivatives and investments Net unrealized gain (loss), before income taxes (40.0) (85.9) Income tax expense (benefit) (8.6) (18.1) Reclassifications, net of income taxes $ (31.4) $ (67.8) AOCI Components Amounts Affected Line Item in the Nine Months Ended September 30, 2021 2020 Net unrealized investment gain (loss): Net realized gain (loss) on investments $ (284.6) $ (808.6) Net gains (losses) on derivatives and investments Other impaired securities — 8.8 Net gains (losses) on derivatives and investments Net unrealized gain (loss), before income taxes (284.6) (799.8) Income tax expense (benefit) (61.4) (168.0) Reclassifications, net of income taxes $ (223.2) $ (631.8) |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | 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 September 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 stock split of its Class A common stock and Class B common stock by way of a reclassification of its Class A common stock and Class B common stock. The incremental par value of the newly issued shares was recorded with the offset to additional paid-in capital. All share and earnings per share information presented herein have been retroactively adjusted to reflect the stock split. At both September 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 invested $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 investment 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 nine months ended September 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 replaces the Prudential PLTIP and Retention Share Plans. The outstanding unvested awards previously issued under the Prudential PLTIP and Retention Share Plans were exchanged for equivalent awards over shares of JFI’s Class A common stock under the Incentive Plan, with a grant date of October 4, 2021. Additionally on October 4, 2021, the Company granted awards for the 2021 plan year which were delayed pending completion of the Demerger. The incremental compensation cost resulting from the modifications will be recognized ratably over the remaining requisite service period of each award. Cumulative Effect of Changes in Accounting Principles In 2020, the Company adopted ASU No. 2016-13 and all related amendments with a cumulative effect pre-tax adjustment at September 30, 2020 of $70.2 million to reduce retained earnings primarily related to the Company’s commercial mortgage loans. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing net income (loss) attributable to Jackson Financial Inc. stockholders 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. stockholders, 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 nine months ended September 30, 2021 and 2020, the Company did not have any outstanding share-based awards involving the issuance of the Company’s equity and, therefore, no impact to the diluted earnings per share calculation. On October 4, 2021, the Company granted share-based awards totaling approximately 7.2 million shares subject to vesting provisions of the Incentive Plan, which will have a dilutive effect. The following table sets forth the calculation of earnings per common share: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions, except share and per share data) Net income (loss) attributable to Jackson Financial Inc. $ 206.2 $ (396.6) $ 2,597.7 $ (1,709.2) Weighted average shares of common stock outstanding - basic 94,464,343 92,638,945 94,464,343 58,625,564 Weighted average shares of common stock outstanding - diluted 94,464,343 92,638,945 94,464,343 58,625,564 Earnings per share—common stock Basic $ 2.18 $ (4.28) $ 27.50 $ (29.15) Diluted $ 2.18 $ (4.28) $ 27.50 $ (29.15) |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated events through November 10, 2021, which is the date the condensed consolidated financial statements were available to be issued. Dividends Declared to Shareholders On November 8, 2021, our Board of Directors approved the commencement of a regular quarterly cash dividend and declared a fourth quarter cash dividend on JFI's Class A and Class B common stock of $0.50 per share, payable on December 9, 2021 to shareholders of record on November 19, 2021. Share Repurchase Authorization On November 8, 2021, our Board of Directors authorized a share repurchase authorization of JFI's Class A common stock of $300 million. |
Business and Basis of Present_2
Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 nine months ended September 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: • 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; • 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; • 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; • Assumptions used in calculating policy reserves and liabilities, including policyholder behavior, mortality rates, expenses, investment returns and policy crediting rates; • Assumptions as to future earnings levels being sufficient to realize deferred tax benefits; • Estimates related to expectations of credit losses on certain financial assets and off balance sheet exposures; • 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; • Value of guaranteed benefits; and, • 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. |
Changes in Accounting Principles | Changes in Accounting Principles – Adopted in Current Year In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The new guidance provides optional expedients for applying GAAP to contracts and other transactions affected by reference rate reform and is effective for contract modifications made between March 12, 2020 and December 31, 2022. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. The practical expedient allowed by this standard was elected and will be applied prospectively by the Company as reference rate reform unfolds. The contracts modified to date met the criteria for the practical expedient and therefore had no material impact on the Company’s consolidated financial statements. The Company will continue to evaluate the impacts of reference rate reform on contract modifications and other transactions through December 31, 2022. In October 2020, the FASB issued ASU No. 2020-08, “Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs,” which clarifies an entity’s accounting responsibilities related to callable debt securities. Effective January 1, 2021, the Company adopted ASU 2020-08, which did not have a material impact on the Company’s consolidated financial statements. In December 2019, FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which includes changes to the accounting for income taxes by eliminating certain exceptions to the approach for intra-period allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The amendments also simplified other areas including the accounting for franchise taxes and enacted tax laws or rates and clarified the accounting for transactions that result in the step-up in the tax basis of goodwill. Effective January 1, 2021, the Company adopted ASU 2019-12, which did not have a material impact on the Company’s consolidated financial statements. Changes in Accounting Principles – Issued but Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, “Targeted Improvements to the Accounting for Long Duration Contracts,” which includes changes to the existing recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity. The amendments in ASU 2018-12 contain four significant changes: 1) for the calculation of the liability for future policy benefits of nonparticipating traditional and limited-payment insurance and reinsurance contracts, cash flow assumptions and discount rates will be required to be updated at least annually; 2) market risk benefits, a new term for certain contracts or features that provide for potential benefits in addition to the account balance which exposes the insurer to other than nominal market risk, will be measured at fair value; 3) deferred acquisition costs (“DAC”) will be amortized on a constant-level basis, independent of profitability; and 4) enhanced disclosures, including quantitative information in rollforwards for balance sheet accounts, as well as information about significant inputs, judgments, assumptions and methods used in measurement will be required. ASU No. 2018-12 is effective for fiscal years beginning after December 15, 2022, with required retrospective application to January 1, 2021, and early adoption is permitted. The Company has begun its implementation efforts and is currently assessing the impact of the new guidance and does not plan to early adopt. Given the nature and extent of the required changes, the adoption of this standard is expected to have a significant impact on the Company’s consolidated financial statements and disclosures. In addition to |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule Of Composition Of Fair Value Of Debt Securities Classified By Rating | At September 30, 2021, the carrying value of investments rated by the Company’s consolidated investment advisor totaled $141.9 million. Percent of Total Debt Securities Carrying Value Investment Rating September 30, 2021 AAA 16.5% AA 9.2% A 29.2% BBB 39.1% Investment grade 94.0% BB 3.4% B and below 2.6% Below investment grade 6.0% Total debt securities 100.0% |
Debt Securities - Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and Allowance for Credit Loss and Maturities | At September 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): Allowance Gross Gross Amortized for Unrealized Unrealized Fair September 30, 2021 Cost (1) Credit Loss Gains Losses Value U.S. government securities $ 4,792.9 $ — $ 83.0 $ 412.9 $ 4,463.0 Other government securities 1,440.6 — 142.3 20.9 1,562.0 Public utilities 5,830.7 — 711.4 20.8 6,521.3 Corporate securities 29,964.7 — 2,043.9 239.0 31,769.6 Residential mortgage-backed 753.2 2.0 59.6 1.9 808.9 Commercial mortgage-backed 2,686.1 — 152.4 3.6 2,834.9 Other asset-backed securities 5,731.2 7.4 92.6 18.6 5,797.8 Total debt securities $ 51,199.4 $ 9.4 $ 3,285.2 $ 717.7 $ 53,757.5 Allowance Gross Gross Amortized for Unrealized Unrealized Fair December 31, 2020 Cost (1) Credit Loss Gains Losses 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 September 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. Allowance Gross Gross Amortized (1) for Unrealized Unrealized Fair Cost Credit Loss Gains Losses Due in 1 year or less $ 1,069.8 $ — $ 18.7 $ — $ 1,088.5 Due after 1 year through 5 years 8,537.8 — 506.7 17.2 9,027.3 Due after 5 years through 10 years 14,322.0 — 962.0 85.9 15,198.1 Due after 10 years through 20 years 8,536.1 — 878.8 184.4 9,230.5 Due after 20 years 9,563.2 — 614.4 406.1 9,771.5 Residential mortgage-backed 753.2 2.0 59.6 1.9 808.9 Commercial mortgage-backed 2,686.1 — 152.4 3.6 2,834.9 Other asset-backed securities 5,731.2 7.4 92.6 18.6 5,797.8 Total $ 51,199.4 $ 9.4 $ 3,285.2 $ 717.7 $ 53,757.5 (1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities. |
Residential Mortgage-Backed Securities | The Company’s non-agency RMBS include investments in securities backed by prime, Alt-A, and subprime loans as follows (in millions): Allowance Gross Gross Amortized for Unrealized Unrealized Fair September 30, 2021 Cost (1) Credit Loss Gains Losses Value Prime $ 255.6 $ 1.6 $ 12.5 $ 1.0 $ 265.5 Alt-A 101.4 0.4 22.8 0.2 123.6 Subprime 43.2 — 13.4 — 56.6 Total non-agency RMBS $ 400.2 $ 2.0 $ 48.7 $ 1.2 $ 445.7 Allowance Gross Gross Amortized for Unrealized Unrealized Fair December 31, 2020 Cost (1) Credit Loss Gains Losses Value 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 RMBS $ 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. |
Debt Securities in Continuous Unrealized 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): September 30, 2021 December 31, 2020 Less than 12 months Less than 12 months Gross Fair Gross Fair Unrealized # of Unrealized # of Losses securities Losses securities U.S. government securities $ 1.3 $ 134.5 20 $ 114.9 $ 3,944.7 7 Other government securities 12.9 272.8 31 0.8 89.4 7 Public utilities 15.2 535.2 70 1.8 146.5 8 Corporate securities 183.0 5,526.3 626 41.5 1,391.1 161 Residential mortgage-backed 1.8 186.8 96 1.2 35.4 28 Commercial mortgage-backed 2.8 167.8 22 3.2 151.9 13 Other asset-backed securities 18.5 1,880.3 260 1.4 796.4 91 Total temporarily impaired securities $ 235.5 $ 8,703.7 1,125 $ 164.8 $ 6,555.4 315 12 months or longer 12 months or longer Gross Fair Gross Fair Unrealized # of Unrealized # of Losses securities Losses securities U.S. government securities $ 411.5 $ 3,335.3 6 $ — $ — — Other government securities 8.0 52.4 6 — — — Public utilities 5.7 62.2 5 — — — Corporate securities 56.0 604.7 64 0.5 2.9 3 Residential mortgage-backed 0.1 3.3 12 — 1.8 4 Commercial mortgage-backed 0.8 40.2 4 0.3 9.7 1 Other asset-backed securities 0.1 13.0 3 3.3 29.8 4 Total temporarily impaired securities $ 482.2 $ 4,111.1 100 $ 4.1 $ 44.2 12 Total Total Gross Fair Gross Fair Unrealized # of Unrealized # of Losses securities Losses securities U.S. government securities $ 412.8 $ 3,469.8 26 $ 114.9 $ 3,944.7 7 Other government securities 20.9 325.2 37 0.8 89.4 7 Public utilities 20.9 597.4 75 1.8 146.5 8 Corporate securities (1) 239.0 6,131.0 690 42.0 1,394.0 164 Residential mortgage-backed 1.9 190.1 108 1.2 37.2 32 Commercial mortgage-backed 3.6 208.0 26 3.5 161.6 14 Other asset-backed securities 18.6 1,893.3 263 4.7 826.2 95 Total temporarily impaired securities $ 717.7 $ 12,814.8 1,225 $ 168.9 $ 6,599.6 327 (1) Certain corporate securities contain multiple lots and fit the criteria of both aging groups. |
Rollforward of Debt Securities Allowance for Credit Loss | The rollforward of the allowance for credit loss for available for sale securities by sector is as follows (in millions): Three Months Ended September 30, 2021 US Other government securities Public Corporate securities Residential mortgage-backed Commercial mortgage-backed Other Total Balance at July 1, 2021 $ — $ — $ — $ — $ 0.8 $ — $ 6.0 $ 6.8 Additions for which credit loss was not previously recorded — — — — 0.7 — — 0.7 Changes for securities with previously recorded credit loss — — — — 0.6 — 17.1 17.7 Additions for purchases of PCD debt securities (1) — — — — — — — — Reductions from charge-offs — — — — — — — — Reductions for securities disposed — — — — (0.1) — (15.7) (15.8) Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — — Balance at September 30, 2021 (2) $ — $ — $ — $ — $ 2.0 $ — $ 7.4 $ 9.4 Three Months Ended September 30, 2020 US Other government securities Public Corporate securities Residential mortgage-backed Commercial mortgage-backed Other Total Balance at July 1, 2020 $ — $ — $ — $ — $ 0.3 $ — $ 17.2 $ 17.5 Additions for which credit loss was not previously recorded — — — — — — — — Changes for securities with previously recorded credit loss — — — — (0.3) — 0.2 (0.1) 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 September 30, 2020 (2) $ — $ — $ — $ — $ — $ — $ 17.4 $ 17.4 Nine Months Ended September 30, 2021 US Other government securities Public Corporate securities Residential mortgage-backed Commercial mortgage-backed Other Total Balance at January 1, 2021 $ — $ — $ — $ — $ — $ — $ 13.6 $ 13.6 Additions for which credit loss was not previously recorded — — — — 1.9 — — 1.9 Changes for securities with previously recorded credit loss — — — — 0.2 — 9.5 9.7 Additions for purchases of PCD debt securities (1) — — — — — — — — Reductions from charge-offs — — — — — — — — Reductions for securities disposed — — — — (0.1) — (15.7) (15.8) Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — — Balance at September 30, 2021 (2) $ — $ — $ — $ — $ 2.0 $ — $ 7.4 $ 9.4 Nine Months Ended September 30, 2020 US Other government securities Public Corporate securities Residential mortgage-backed Commercial mortgage-backed Other 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 — — — — (0.3) — 0.2 (0.1) 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 September 30, 2020 (2) $ — $ — $ — $ — $ — $ — $ 17.4 $ 17.4 (1) Represents purchased credit-deteriorated ("PCD") fixed maturity AFS securities. (2) Accrued interest receivable on debt securities totaled $396.6 million and $492.3 million as of September 30, 2021 and 2020, respectively, and was excluded from the estimate of credit losses for the three and nine months ended September 30, 2021 and 2020. |
Sources of Net Investment Income | The sources of net investment income were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Debt securities $ 271.7 $ 416.8 $ 872.2 $ 1,338.7 Equity securities (0.2) 0.4 6.4 (13.3) Mortgage loans 79.4 83.6 241.5 285.3 Policy loans 19.8 21.8 55.5 59.7 Limited partnerships 192.7 113.3 585.6 (26.0) Other investment income 1.8 3.9 9.9 21.6 Total investment income excluding funds withheld assets 565.2 639.8 1,771.1 1,666.0 Net investment income on funds withheld assets (see Note 7) 299.6 277.1 884.5 506.0 Investment expenses: Derivative trading commission (0.9) (1.1) (2.2) (4.2) Depreciation on real estate (3.6) (2.7) (8.4) (8.2) Expenses related to consolidated entities (1) (7.5) (9.1) (24.1) (29.4) Other investment expenses (2) (0.8) (22.6) (45.3) (24.6) Total investment expenses (12.8) (35.5) (80.0) (66.4) Net investment income $ 852.0 $ 881.4 $ 2,575.6 $ 2,105.6 (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. 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Debt securities $ 183.5 $ 210.2 $ 581.0 $ 282.1 Equity securities 1.0 0.7 3.4 0.7 Mortgage loans 49.3 14.1 127.3 24.6 Policy loans 76.0 79.3 237.7 233.8 Limited partnerships 16.1 — 16.7 — Other investment income — 1.4 0.2 1.5 Total investment income on funds withheld assets 325.9 305.7 966.3 542.7 Other investment expenses on funds withheld assets (1) (26.3) (28.6) (81.8) (36.7) Total net investment income on funds withheld reinsurance treaties $ 299.6 $ 277.1 $ 884.5 $ 506.0 (1) Includes management fees. |
Net Gains (Losses) on Derivatives and Investments | The following table summarizes net gains (losses) on derivatives and investments (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Available-for-sale securities Realized gains on sale $ 28.3 $ 99.2 $ 149.1 $ 519.2 Realized losses on sale (1.3) (2.7) (59.0) (186.4) Credit loss income (expense) (17.4) (0.3) (10.2) (17.4) Gross impairments (0.1) (0.2) (0.1) (26.6) Credit loss income (expense) on mortgage loans 13.5 (31.9) 61.9 (65.8) Other (1) 13.4 (41.1) 62.2 (38.8) Net gains (losses) excluding derivatives and funds withheld assets 36.4 23.0 203.9 184.2 Net gains (losses) on derivative instruments (see Note 4) (1,300.5) (2,149.4) (1,413.4) (5,492.2) Net gains (losses) on funds withheld reinsurance treaties (see Note 7) (115.2) (378.4) 15.1 790.3 Total net gains (losses) on derivatives and investments $ (1,379.3) $ (2,504.8) $ (1,194.4) $ (4,517.7) (1) Includes the foreign currency gain or loss related to foreign denominated trust instruments supporting funding agreements. |
Asset and Liability Information for Consolidated VIEs | Asset and liability information for the consolidated VIEs included on the condensed consolidated balance sheets are as follows (in millions): September 30, 2021 December 31, 2020 Assets Debt securities, available for sale $ 1,350.7 $ 1,108.9 Debt securities, trading 117.9 105.7 Equity securities 128.9 125.8 Limited partnerships 1,118.2 958.7 Cash 46.3 57.1 Other assets 23.8 10.2 Total assets $ 2,785.8 $ 2,366.4 Liabilities Debt owed to non-controlling interests $ 1,006.4 $ 943.7 Other liabilities 355.2 200.5 Total other liabilities 1,361.6 1,144.2 Securities lending payable 3.3 1.0 Total liabilities $ 1,364.9 $ 1,145.2 Equity Noncontrolling equity $ 597.9 $ 493.6 |
Rollforward of Mortgagees 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 September 30, 2021 Apartment Hotel Office Retail Warehouse Residential Mortgage (2) Total Balance at July 1, 2021 $ 26.7 $ 33.0 $ 19.7 $ 22.7 $ 11.8 $ 21.4 $ 135.3 Charge offs, net of recoveries — — — — — — — Additions from purchase of PCD mortgage loans — — — — — — — Provision (5.4) (17.5) 3.0 (6.8) (1.2) (11.0) (38.9) Balance at September 30, 2021 (1) $ 21.3 $ 15.5 $ 22.7 $ 15.9 $ 10.6 $ 10.4 $ 96.4 Three Months Ended September 30, 2020 Apartment Hotel Office Retail Warehouse Total Balance at July 1, 2020 $ 34.1 $ 11.4 $ 22.0 $ 18.0 $ 19.3 $ 104.8 Cumulative effect of change in accounting principle — Charge offs, net of recoveries — — — — — — Additions from purchase of PCD mortgage loans — — — — — — Provision 20.0 19.8 0.2 6.1 8.1 54.2 Balance at September 30, 2020 (1) $ 54.1 $ 31.2 $ 22.2 $ 24.1 $ 27.4 $ 159.0 Nine Months Ended September 30, 2021 Apartment Hotel Office Retail Warehouse Residential Mortgage (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 (36.6) (18.4) (2.2) (8.3) (13.2) (4.1) (82.8) Balance at September 30, 2021 (1) $ 21.3 $ 15.5 $ 22.7 $ 15.9 $ 10.6 $ 10.4 $ 96.4 Nine Months Ended September 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 26.8 25.4 13.3 11.8 10.8 88.1 Balance at September 30, 2020 (1) $ 54.1 $ 31.2 $ 22.2 $ 24.1 $ 27.4 $ 159.0 (1) Accrued interest receivable totaled $48.4 million and $29.9 million as of September 30, 2021 and 2020, respectively, and was excluded from the estimate of credit losses. (2) During the three and nine months ended September 30, 2021, $178 thousand of accrued interest was written off relating to loans that were greater than 90 days delinquent or in the process of foreclosure. |
Information About 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): September 30, 2021 2021 2020 2019 2018 2017 Prior Revolving Total % of Loan to value ratios: Less than 70% $ 1,167.0 $ 1,324.8 $ 1,347.2 $ 1,635.7 $ 1,412.7 $ 2,764.1 $ 4.1 $ 9,655.6 89 % 70% - 80% 319.6 53.7 312.5 119.6 49.0 179.9 — 1,034.3 10 % 80% - 100% — — 42.9 4.8 27.4 9.6 — 84.7 1 % Greater than 100% — — 14.7 — — — — 14.7 — % Total $ 1,486.6 $ 1,378.5 $ 1,717.3 $ 1,760.1 $ 1,489.1 $ 2,953.6 $ 4.1 $ 10,789.3 100 % Debt service coverage ratios: Greater than 1.20x $ 932.5 $ 903.0 $ 1,601.9 $ 1,395.9 $ 1,355.4 $ 2,689.6 $ 4.1 $ 8,882.4 82 % 1.00x - 1.20x 554.1 346.7 96.9 90.9 11.0 69.1 — 1,168.7 11 % Less than 1.00x — 128.8 18.5 273.3 122.7 194.9 — 738.2 7 % Total $ 1,486.6 $ 1,378.5 $ 1,717.3 $ 1,760.1 $ 1,489.1 $ 2,953.6 $ 4.1 $ 10,789.3 100 % December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Total % of 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% - 80% 66.2 348.1 127.9 80.0 94.3 128.5 — 845.0 8 % 80% - 100% — 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 $ 4.0 $ 10,278.9 100 % 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 - 1.20x 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 % September 30, 2021 In Good Standing (1) Restructured Greater than 90 Days Delinquent In the Process of Foreclosure Total Carrying Value Apartment $ 3,807.8 $ — $ — $ — $ 3,807.8 Hotel 1,052.3 — — — 1,052.3 Office 1,942.4 — — — 1,942.4 Retail 2,130.8 — — — 2,130.8 Warehouse 1,856.0 — — — 1,856.0 Total commercial 10,789.3 — — — 10,789.3 Residential (2) 648.2 — 291.2 2.7 942.1 Total $ 11,437.5 $ — $ 291.2 $ 2.7 $ 11,731.4 December 31, 2020 In Good Standing (1) Restructured Greater than 90 Days Delinquent In the Process of Foreclosure Total Carrying Value 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 448.6 — — — 448.6 Total $ 10,727.5 $ — $ — $ — $ 10,727.5 (1) At September 30, 2021 and December 31, 2020, includes mezzanine loans of $206.1 million and $44.6 million in the Apartment category, $67.7 million and $33.4 million in the Hotel category, $249.3 million and $116.8 million in the Office category, $26.7 million and nil in the Retail category, and $32.2 million and $48.1 million in the Warehouse category, respectively. (2) Includes $286.3 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, and $0.7 million of loans in process of foreclosure. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Aggregate Contractual Notional Amounts and Fair Values of Derivatives | 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): September 30, 2021 Assets Liabilities Contractual/ Contractual/ Net Notional Fair Notional Fair Fair Amount (1) Value Amount (1) Value Value Freestanding derivatives Cross-currency swaps $ 758.8 $ 37.4 $ 1,008.6 $ 34.6 $ 2.8 Equity index call options 20,000.0 135.8 — — 135.8 Equity index futures (2) — — 17,329.8 — — Equity index put options 25,000.0 339.0 — — 339.0 Interest rate swaps 7,728.1 485.5 — — 485.5 Interest rate swaps - cleared (2) 1,500.0 — — — — Put-swaptions 15,500.0 104.8 2,500.0 4.9 99.9 Treasury futures (2) 3,986.6 — 13.9 — — Total freestanding derivatives 74,473.5 1,102.5 20,852.3 39.5 1,063.0 Embedded derivatives VA embedded derivatives (3) N/A — N/A 3,091.6 (3,091.6) FIA embedded derivatives (4) N/A — N/A 1,439.7 (1,439.7) Total embedded derivatives N/A — N/A 4,531.3 (4,531.3) Derivatives related to funds withheld under reinsurance treaties Cross-currency swaps 94.4 6.2 63.4 0.8 5.4 Cross-currency forwards 915.0 33.2 5.5 0.1 33.1 Funds withheld embedded derivative (5) N/A — N/A 271.7 (271.7) Total derivatives related to funds withheld under reinsurance treaties 1,009.4 39.4 68.9 272.6 (233.2) Total $ 75,482.9 $ 1,141.9 $ 20,921.2 $ 4,843.4 $ (3,701.5) (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/ Contractual/ Net Notional Fair Notional Fair Fair Amount (1) Value Amount (1) Value 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. |
Gains and Losses, and Change in Fair Value of Derivatives | 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Derivatives excluding funds withheld under reinsurance treaties Cross-currency swaps $ (8.9) $ 18.1 $ (53.2) $ 46.5 Equity index call options 15.4 421.4 814.0 543.6 Equity index futures (196.3) (3,324.2) (2,866.0) (4,391.7) Equity index put options (71.0) (516.1) (681.8) 236.1 Interest rate swaps — (29.2) (148.2) 661.6 Interest rate swaps - cleared (9.6) — (59.9) — Put-swaptions (61.6) (18.4) 41.6 246.7 Treasury futures (123.1) (43.8) (895.8) 1,935.0 Fixed index annuity embedded derivatives (0.7) (0.4) (2.8) 31.5 Variable annuity embedded derivatives (844.7) 1,343.2 2,438.7 (4,801.5) Total net gains (losses) on derivative instruments excluding derivative instruments related to funds withheld under reinsurance treaties (1,300.5) (2,149.4) (1,413.4) (5,492.2) Derivatives related to funds withheld under reinsurance treaties Cross-currency swaps 5.7 — 11.6 — Cross-currency forwards 28.3 — 41.7 — Treasury futures — — — (204.2) Funds withheld embedded derivative 101.2 (189.6) 554.9 (468.6) Total net gains (losses) on derivative instruments related to funds withheld under reinsurance treaties 135.2 (189.6) 608.2 (672.8) Total net gains (losses) on derivative instruments including derivative instruments related to funds withheld under reinsurance treaties $ (1,165.3) $ (2,339.0) $ (805.2) $ (6,165.0) |
Gross and Net Information About Financial Instruments Subject to Master Netting Arrangements - Assets | The following tables present the gross and net information about the Company’s financial instruments subject to master netting arrangements (in millions): September 30, 2021 Gross Gross Net Amounts Gross Amounts Not Offset Financial Instruments (1) Cash Securities Collateral (2) Net Financial Assets: Freestanding derivative assets $ 1,141.9 $ — $ 1,141.9 $ 40.4 $ 583.0 $ 470.5 $ 48.0 Financial Liabilities: Freestanding derivative liabilities $ 40.4 $ — $ 40.4 $ 40.4 $ — $ — $ — Securities loaned 20.7 — 20.7 — 20.7 — — Repurchase agreements 306.0 — 306.0 — — 306.0 — Total financial liabilities $ 367.1 $ — $ 367.1 $ 40.4 $ 20.7 $ 306.0 $ — (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 sheets. (2) Excludes initial margin amounts for exchange-traded derivatives. December 31, 2020 Gross Gross Net Amounts Gross Amounts Not Offset Financial Instruments (1) Cash Securities Collateral (2) Net 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) Represents the amount that could be offset under master netting or similar arrangements that management elects not to offset on the condensed consolidated balance sheets. (2) Excludes initial margin amounts for exchange-traded derivatives. |
Gross and Net Information About Financial Instruments Subject to Master Netting Arrangements - Liabilities | The following tables present the gross and net information about the Company’s financial instruments subject to master netting arrangements (in millions): September 30, 2021 Gross Gross Net Amounts Gross Amounts Not Offset Financial Instruments (1) Cash Securities Collateral (2) Net Financial Assets: Freestanding derivative assets $ 1,141.9 $ — $ 1,141.9 $ 40.4 $ 583.0 $ 470.5 $ 48.0 Financial Liabilities: Freestanding derivative liabilities $ 40.4 $ — $ 40.4 $ 40.4 $ — $ — $ — Securities loaned 20.7 — 20.7 — 20.7 — — Repurchase agreements 306.0 — 306.0 — — 306.0 — Total financial liabilities $ 367.1 $ — $ 367.1 $ 40.4 $ 20.7 $ 306.0 $ — (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 sheets. (2) Excludes initial margin amounts for exchange-traded derivatives. December 31, 2020 Gross Gross Net Amounts Gross Amounts Not Offset Financial Instruments (1) Cash Securities Collateral (2) Net 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) Represents the amount that could be offset under master netting or similar arrangements that management elects not to offset on the condensed consolidated balance sheets. (2) Excludes initial margin amounts for exchange-traded derivatives. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value and Carrying Value of Financial Instruments | The following table summarizes the fair value and carrying value of the Company’s financial instruments (in millions): September 30, 2021 December 31, 2020 Carrying Fair Carrying Fair Assets Debt securities (1) $ 53,757.5 $ 53,757.5 $ 60,457.4 $ 60,457.4 Equity securities 290.1 290.1 193.1 193.1 Mortgage loans 11,731.4 12,211.7 10,727.5 11,348.9 Limited partnerships 2,400.7 2,400.7 1,991.3 1,991.3 Policy loans (1) 4,511.9 4,511.9 4,523.5 4,523.5 Freestanding derivative instruments 1,141.9 1,141.9 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 2,481.8 2,481.8 2,018.7 2,018.7 GMIB reinsurance recoverable 278.6 278.6 340.4 340.4 Separate account assets 237,096.2 237,096.2 219,062.9 219,062.9 Liabilities Annuity reserves (2) 41,543.6 49,092.1 45,638.8 54,005.7 Reserves for guaranteed investment contracts (3) 994.4 1,032.8 1,275.5 1,332.1 Trust instruments supported by funding agreements (3) 6,322.3 6,564.2 8,383.9 8,701.8 FHLB funding agreements (3) 1,521.8 1,550.9 1,478.4 1,421.3 Funds withheld payable under reinsurance treaties (1) 29,771.4 29,771.4 31,971.5 31,971.5 Debt 2,670.2 2,746.9 322.0 412.3 Securities lending payable 20.7 20.7 13.3 13.3 Freestanding derivative instruments 40.4 40.4 56.4 56.4 Repurchase agreements 306.0 306.0 1,100.0 1,100.0 FHLB advances — — 380.0 380.0 Separate account liabilities 237,096.2 237,096.2 219,062.9 219,062.9 (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. |
Assets and Liabilities Carried at Fair Value by Hierarchy Levels | The following tables summarize the Company’s assets and liabilities that are carried at fair value by hierarchy levels (in millions): September 30, 2021 Total Level 1 Level 2 Level 3 Assets Debt securities U.S. government securities $ 4,463.0 $ 4,463.0 $ — $ — Other government securities 1,562.0 — 1,562.0 — Public utilities 6,521.3 — 6,521.3 — Corporate securities 31,769.6 — 31,762.1 7.5 Residential mortgage-backed 808.9 — 808.9 — Commercial mortgage-backed 2,834.9 — 2,834.9 — Other asset-backed securities 5,797.8 — 5,797.7 0.1 Equity securities 290.1 136.3 44.0 109.8 Limited partnerships 11.3 10.6 0.7 Policy loans 3,487.5 — — 3,487.5 Freestanding derivative instruments 1,141.9 — 1,141.9 — Cash and cash equivalents 2,481.8 2,481.8 — GMIB reinsurance recoverable 278.6 — — 278.6 Separate account assets 237,096.2 — 237,096.2 — Total $ 298,544.9 $ 7,081.1 $ 287,579.6 $ 3,884.2 Liabilities Embedded derivative liabilities (1) $ 4,531.3 $ — $ 1,439.7 $ 3,091.6 Funds withheld payable under reinsurance treaties (2) 3,931.6 — — 3,931.6 Freestanding derivative instruments 40.4 — 40.4 — Total $ 8,503.3 $ — $ 1,480.1 $ 7,023.2 (1) Includes the embedded derivative liabilities of $3,091.6 million related to GMWB reserves included in reserves for future policy benefits and claims payable and $1,439.7 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 $271.7 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. |
Balances of Level 3 Assets and Liabilities Measured at Fair Value with Corresponding Pricing Sources | The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources (in millions): September 30, 2021 Assets Total Internal External Debt securities: Corporate $ 7.5 $ — $ 7.5 Other asset-backed securities 0.1 0.1 — Equity securities 109.8 1.2 108.6 Limited partnerships 0.7 0.7 — Policy loans 3,487.5 3,487.5 — GMIB reinsurance recoverable 278.6 278.6 — Total $ 3,884.2 $ 3,768.1 $ 116.1 Liabilities Embedded derivative liabilities (1) $ 3,091.6 $ 3,091.6 $ — Funds withheld payable under reinsurance treaties (2) 3,931.6 3,931.6 — Total $ 7,023.2 $ 7,023.2 $ — (1) Includes the embedded derivative related to GMWB reserves. (2) Includes the Athene embedded derivative liability. December 31, 2020 Assets Total Internal External 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 (2) 4,453.1 4,453.1 — Total $ 10,045.2 $ 10,045.2 $ — (1) Includes the embedded derivative related to GMWB reserves. (2) Includes the Athene embedded derivative liability. |
Quantitative Information on Significant 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 September 30, 2021 Fair Valuation Technique(s) Significant Unobservable Input(s) Assumption or Input Range Impact of Increase in Input on Fair Value Assets GMIB reinsurance recoverable $ 278.6 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) 0.00% - 1.38% Decrease Long-term Equity Volatility (6) 18.50% - 22.86% Increase Liabilities Embedded derivative liabilities $ 3,091.6 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) 0.00% - 1.38% Decrease Long-term Equity Volatility (6) 18.50% - 22.86% 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, 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. As of December 31, 2020 Fair Valuation Technique(s) Significant Unobservable Input(s) Assumption or Input Range Impact of Increase in Input on Fair Value 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 Volatility (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, 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. |
Rollforwards of Financial Instruments for Which Significant Unobservable Inputs (Level 3) are Used - Assets | The tables below provide rollforwards for the three and nine months ended September 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 tables 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 Gains (Losses) Included in Three Months Ended September 30, 2021 Fair Value as of July 1, 2021 Net Income Other Comprehensive Income Purchases, Sales, Issuances and Settlements Transfers in and/or (out of) Level 3 Fair Value as of September 30, 2021 Assets Debt securities Corporate securities $ 31.2 $ — $ — $ 2.7 $ (26.4) $ 7.5 Other asset-backed securities 0.1 — — — — 0.1 Equity securities 103.2 6.0 — 0.6 — 109.8 Limited partnerships 0.7 — — — — 0.7 GMIB reinsurance recoverable 267.2 11.4 — — — 278.6 Policy Loans 3,537.8 (135.9) — 85.6 — 3,487.5 Liabilities Embedded derivative liabilities $ (2,235.7) $ (855.9) $ — $ — $ — $ (3,091.6) Funds withheld payable under reinsurance treaties (4,081.5) 235.6 0.5 (86.2) — (3,931.6) Total Realized/Unrealized Gains (Losses) Included in Three Months Ended September 30, 2020 Fair Value as of July 1, 2020 Net Income Other Comprehensive Income Purchases, Sales, Issuances and Settlements Transfers in and/or (out of) Level 3 Fair Value as of September 30, 2020 Assets Debt securities Corporate securities $ 50.9 $ 5.0 $ — $ 13.4 $ (28.4) $ 40.9 Equity securities 118.8 1.0 — (0.3) — 119.5 Limited partnerships 0.9 — — (0.1) — 0.8 GMIB reinsurance recoverable 435.5 (27.6) — — — 407.9 Policy loans 3,605.0 (140.2) — (17.1) — 3,447.7 Liabilities Embedded derivative liabilities $ (9,067.8) $ 1,370.8 $ — $ — $ — $ (7,697.0) Funds withheld payable under reinsurance treaties (4,055.3) 885.6 1.3 16.4 — (3,152.0) Total Realized/Unrealized Gains (Losses) Included in Nine Months Ended September 30, 2021 Fair Value as of January 1, 2021 Net Income Other Comprehensive Income Purchases, Sales, Issuances and Settlements Transfers in and/or (out of) Level 3 Fair Value as of September 30, 2021 Assets Debt securities Corporate securities $ 28.7 $ 1.8 $ — $ 8.4 $ (31.4) $ 7.5 Other asset-backed securities 0.1 — — — — 0.1 Equity securities 103.6 12.8 — (6.9) 0.3 109.8 Limited partnerships 0.8 — — (0.1) — 0.7 GMIB reinsurance recoverable 340.4 (61.8) — — — 278.6 Policy loans 3,454.2 (10.8) — 44.1 — 3,487.5 Liabilities Embedded derivative liabilities $ (5,592.1) $ 2,500.5 $ — $ — $ — $ (3,091.6) Funds withheld payable under reinsurance treaties (4,453.1) 565.3 2.3 (46.1) — (3,931.6) Total Realized/Unrealized Gains (Losses) Included in Nine Months Ended September 30, 2020 Fair Value as of January 1, 2020 Net Income Other Comprehensive Income Purchases, Sales, Issuances and Settlements Transfers in and/or (out of) Level 3 Fair Value as of September 30, 2020 Assets Debt securities Corporate securities $ — $ (0.3) $ — $ 30.7 $ 10.5 $ 40.9 Equity securities 182.9 (32.1) — (31.2) (0.1) 119.5 Limited partnerships 1.1 (0.2) — (0.1) — 0.8 GMIB reinsurance recoverable 302.8 105.1 — — — 407.9 Policy loans 3,585.8 (19.3) — (118.8) — 3,447.7 Liabilities Embedded derivative liabilities $ (2,790.4) $ (4,906.6) $ — $ — $ — $ (7,697.0) Funds withheld payable under reinsurance treaties (3,760.3) 483.4 (0.1) 125.0 — (3,152.0) |
Rollforwards of Financial Instruments for Which Significant Unobservable Inputs (Level 3) are Used - Liabilities | The tables below provide rollforwards for the three and nine months ended September 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 tables 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 Gains (Losses) Included in Three Months Ended September 30, 2021 Fair Value as of July 1, 2021 Net Income Other Comprehensive Income Purchases, Sales, Issuances and Settlements Transfers in and/or (out of) Level 3 Fair Value as of September 30, 2021 Assets Debt securities Corporate securities $ 31.2 $ — $ — $ 2.7 $ (26.4) $ 7.5 Other asset-backed securities 0.1 — — — — 0.1 Equity securities 103.2 6.0 — 0.6 — 109.8 Limited partnerships 0.7 — — — — 0.7 GMIB reinsurance recoverable 267.2 11.4 — — — 278.6 Policy Loans 3,537.8 (135.9) — 85.6 — 3,487.5 Liabilities Embedded derivative liabilities $ (2,235.7) $ (855.9) $ — $ — $ — $ (3,091.6) Funds withheld payable under reinsurance treaties (4,081.5) 235.6 0.5 (86.2) — (3,931.6) Total Realized/Unrealized Gains (Losses) Included in Three Months Ended September 30, 2020 Fair Value as of July 1, 2020 Net Income Other Comprehensive Income Purchases, Sales, Issuances and Settlements Transfers in and/or (out of) Level 3 Fair Value as of September 30, 2020 Assets Debt securities Corporate securities $ 50.9 $ 5.0 $ — $ 13.4 $ (28.4) $ 40.9 Equity securities 118.8 1.0 — (0.3) — 119.5 Limited partnerships 0.9 — — (0.1) — 0.8 GMIB reinsurance recoverable 435.5 (27.6) — — — 407.9 Policy loans 3,605.0 (140.2) — (17.1) — 3,447.7 Liabilities Embedded derivative liabilities $ (9,067.8) $ 1,370.8 $ — $ — $ — $ (7,697.0) Funds withheld payable under reinsurance treaties (4,055.3) 885.6 1.3 16.4 — (3,152.0) Total Realized/Unrealized Gains (Losses) Included in Nine Months Ended September 30, 2021 Fair Value as of January 1, 2021 Net Income Other Comprehensive Income Purchases, Sales, Issuances and Settlements Transfers in and/or (out of) Level 3 Fair Value as of September 30, 2021 Assets Debt securities Corporate securities $ 28.7 $ 1.8 $ — $ 8.4 $ (31.4) $ 7.5 Other asset-backed securities 0.1 — — — — 0.1 Equity securities 103.6 12.8 — (6.9) 0.3 109.8 Limited partnerships 0.8 — — (0.1) — 0.7 GMIB reinsurance recoverable 340.4 (61.8) — — — 278.6 Policy loans 3,454.2 (10.8) — 44.1 — 3,487.5 Liabilities Embedded derivative liabilities $ (5,592.1) $ 2,500.5 $ — $ — $ — $ (3,091.6) Funds withheld payable under reinsurance treaties (4,453.1) 565.3 2.3 (46.1) — (3,931.6) Total Realized/Unrealized Gains (Losses) Included in Nine Months Ended September 30, 2020 Fair Value as of January 1, 2020 Net Income Other Comprehensive Income Purchases, Sales, Issuances and Settlements Transfers in and/or (out of) Level 3 Fair Value as of September 30, 2020 Assets Debt securities Corporate securities $ — $ (0.3) $ — $ 30.7 $ 10.5 $ 40.9 Equity securities 182.9 (32.1) — (31.2) (0.1) 119.5 Limited partnerships 1.1 (0.2) — (0.1) — 0.8 GMIB reinsurance recoverable 302.8 105.1 — — — 407.9 Policy loans 3,585.8 (19.3) — (118.8) — 3,447.7 Liabilities Embedded derivative liabilities $ (2,790.4) $ (4,906.6) $ — $ — $ — $ (7,697.0) Funds withheld payable under reinsurance treaties (3,760.3) 483.4 (0.1) 125.0 — (3,152.0) |
Components of Amounts Included in Purchases, Sales, Issuances and Settlements | The components of the amounts included in purchases, sales, issuances and settlements for the three and nine months ended September 30, 2021 and 2020 shown above are as follows (in millions): Three Months Ended September 30, 2021 Purchases Sales Issuances Settlements Total Assets Debt securities Corporate securities $ 2.7 $ — $ — $ — $ 2.7 Equity securities 0.8 (0.2) — — 0.6 Limited partnerships — — — — — Policy loans — — 155.4 (69.8) 85.6 Total $ 3.5 $ (0.2) $ 155.4 $ (69.8) $ 88.9 Liabilities Funds withheld payable under reinsurance treaties $ — $ — $ (187.0) $ 100.8 $ (86.2) Three Months Ended September 30, 2020 Purchases Sales Issuances Settlements Total Assets Debt securities Corporate securities $ 30.3 $ (16.9) $ — $ — $ 13.4 Equity securities — (0.3) — — (0.3) Limited partnerships — (0.1) — — (0.1) Policy loans — — 153.6 (170.7) (17.1) Total $ 30.3 $ (17.3) $ 153.6 $ (170.7) $ (4.1) Liabilities Funds withheld payable under reinsurance treaties $ — $ — $ (158.4) $ 174.8 $ 16.4 Nine Months Ended September 30, 2021 Purchases Sales Issuances Settlements Total Assets Debt securities Corporate securities $ 8.8 $ (0.4) $ — $ — $ 8.4 Equity securities 0.8 (7.7) — — (6.9) Limited partnerships — (0.1) — — (0.1) Policy loans — — 191.6 (147.5) 44.1 Total $ 9.6 $ (8.2) $ 191.6 $ (147.5) $ 45.5 Liabilities Funds withheld payable under reinsurance treaties $ — $ — $ (398.2) $ 352.1 $ (46.1) Nine Months Ended September 30, 2020 Purchases Sales Issuances Settlements Total Assets Debt securities Corporate securities $ 49.9 $ (19.2) $ — $ — $ 30.7 Equity securities 1.6 (32.8) — — (31.2) Limited partnerships — (0.1) — — (0.1) Policy loans — — 205.3 (324.1) (118.8) Total $ 51.5 $ (52.1) $ 205.3 $ (324.1) $ (119.4) Liabilities Funds withheld payable under reinsurance treaties $ — $ — $ (211.2) $ 336.2 $ 125.0 |
Portion of Gains (Losses) Included in Net Income or Other Comprehensive Income | 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 September 30, 2021 2020 Included in Included in OCI Included in Included in OCI Assets Debt securities Corporate securities $ 0.1 $ — $ 4.8 $ — Equity securities 6.0 — 1.0 — Limited partnerships — — — — GMIB reinsurance recoverable 11.4 — (27.6) — Funds withheld reinsurance assets (135.9) — (140.2) — Liabilities Embedded derivative liabilities $ (855.9) $ — $ 1,370.8 $ — Funds withheld payable under reinsurance treaties 109.8 — 763.9 — Nine Months Ended September 30, 2021 2020 Included in Included in OCI Included in Included in OCI Assets Debt securities Corporate securities $ 1.8 $ — $ (0.5) $ — Equity securities 12.8 — (32.1) — Limited partnerships — — (0.2) — GMIB reinsurance recoverable (61.8) — 105.1 — Funds withheld reinsurance assets (10.8) — (19.3) — Liabilities Embedded derivative liabilities $ 2,500.5 $ — $ (4,906.6) $ — Funds withheld payable under reinsurance treaties 565.3 — 483.4 — |
Carrying Amount and Fair Value by Hierarchy of Certain Financial Instruments Not Reported at 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). September 30, 2021 December 31, 2020 Fair Value Hierarchy Level Carrying Fair Carrying Fair Assets Mortgage loans Level 3 $ 11,731.4 $ 12,211.7 $ 10,727.5 $ 11,348.9 Policy loans Level 3 1,024.4 1,024.4 1,069.3 1,069.3 FHLBI capital stock Level 1 125.4 125.4 125.4 125.4 Liabilities Annuity reserves (1) Level 3 $ 37,012.3 $ 44,560.8 $ 38,562.8 $ 46,929.7 Reserves for guaranteed investment contracts (2) Level 3 994.4 1,032.8 1,275.5 1,332.1 Trust instruments supported by funding agreements (2) Level 3 6,322.3 6,564.2 8,383.9 8,701.8 FHLB funding agreements (2) Level 3 1,521.8 1,550.9 1,478.4 1,421.3 Funds held under reinsurance treaties Level 2 25,839.7 25,839.7 27,518.4 27,518.4 Debt Level 2 2,670.2 2,746.9 322.0 412.3 Securities lending payable Level 2 20.7 20.7 13.3 13.3 FHLB advances Level 2 — — 380.0 380.0 Repurchase agreements Level 2 306.0 306.0 1,100.0 1,100.0 Separate Account Liabilities (3) Level 2 237,096.2 237,096.2 219,062.9 219,062.9 (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. |
Deferred Acquisition Costs (Tab
Deferred Acquisition Costs (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Deferred Acquisition Costs | The balances of, and changes, in deferred acquisition costs were as follows (in millions): Nine Months Ended September 30, 2021 2020 Balance, beginning of period $ 13,897.0 $ 12,336.8 Deferrals of acquisition costs 592.1 537.7 Amortization (551.1) 854.4 Write-off of amortization related to Athene transaction — (625.8) Unrealized investment (gains) losses 78.8 271.2 Balance, end of period $ 14,016.8 $ 13,374.3 |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Assets and Liabilities Held in Support of Reserves Associated with 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): September 30, 2021 December 31, 2020 Assets Debt securities $ 20,617.7 $ 24,642.4 Equity securities 128.5 42.2 Mortgage loans 4,713.1 2,985.5 Policy loans 3,503.9 3,470.8 Derivative instruments, net 38.4 (13.1) Limited partnerships 537.8 124.9 Cash and cash equivalents 383.5 394.1 Accrued investment income 171.4 190.3 Other assets and liabilities, net (455.6) 22.8 Total assets (2) $ 29,638.7 $ 31,859.9 Liabilities Funds held under reinsurance treaties (1) $ 29,771.4 $ 31,971.5 Total liabilities $ 29,771.4 $ 31,971.5 (1) Includes funds withheld embedded derivative of $271.7 million and 826.6 million at September 30, 2021 and December 31, 2020, respectively. (2) Certain assets are reported at amortized cost while the fair value of those assets is reported in the embedded derivative in the funds withheld liability. |
Sources of Income Related to Funds Withheld Under Reinsurance Treaties | The sources of net investment income were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Debt securities $ 271.7 $ 416.8 $ 872.2 $ 1,338.7 Equity securities (0.2) 0.4 6.4 (13.3) Mortgage loans 79.4 83.6 241.5 285.3 Policy loans 19.8 21.8 55.5 59.7 Limited partnerships 192.7 113.3 585.6 (26.0) Other investment income 1.8 3.9 9.9 21.6 Total investment income excluding funds withheld assets 565.2 639.8 1,771.1 1,666.0 Net investment income on funds withheld assets (see Note 7) 299.6 277.1 884.5 506.0 Investment expenses: Derivative trading commission (0.9) (1.1) (2.2) (4.2) Depreciation on real estate (3.6) (2.7) (8.4) (8.2) Expenses related to consolidated entities (1) (7.5) (9.1) (24.1) (29.4) Other investment expenses (2) (0.8) (22.6) (45.3) (24.6) Total investment expenses (12.8) (35.5) (80.0) (66.4) Net investment income $ 852.0 $ 881.4 $ 2,575.6 $ 2,105.6 (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. 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Debt securities $ 183.5 $ 210.2 $ 581.0 $ 282.1 Equity securities 1.0 0.7 3.4 0.7 Mortgage loans 49.3 14.1 127.3 24.6 Policy loans 76.0 79.3 237.7 233.8 Limited partnerships 16.1 — 16.7 — Other investment income — 1.4 0.2 1.5 Total investment income on funds withheld assets 325.9 305.7 966.3 542.7 Other investment expenses on funds withheld assets (1) (26.3) (28.6) (81.8) (36.7) Total net investment income on funds withheld reinsurance treaties $ 299.6 $ 277.1 $ 884.5 $ 506.0 (1) Includes management fees. |
Gains And Losses On Funds Withheld Reinsurance Treaties | 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Available-for-sale securities Realized gains on sale $ 80.7 $ 52.6 $ 339.0 $ 1,650.7 Realized losses on sale (1.4) (3.6) (14.2) (5.8) Credit loss expense (1.0) — (1.5) — Gross impairments — — — (1.6) Credit loss expense on mortgage loans 25.5 (4.7) 20.9 (22.4) Other (19.8) — (31.9) — Net gains (losses) on non-derivative investments 84.0 44.3 312.3 1,620.9 Net gains (losses) on derivative instruments 34.0 — 53.3 (204.2) Net gains (losses) on funds withheld payable under reinsurance treaties (1) (233.2) (422.7) (350.5) (626.4) Total net gains (losses) on derivatives and investments $ (115.2) $ (378.4) $ 15.1 $ 790.3 (1) Includes the Athene embedded derivative gain (loss) of $101.2 million and $554.9 million for the three and nine months ended September 30, 2021, respectively, and $(189.6) million and $(468.6) million for the three and nine months ended September 30, 2020, respectively. |
Components of Reinsurance Recoverable | Components of the Company’s reinsurance recoverable were as follows (in millions): September 30, December 31, 2021 2020 Reserves: Life $ 5,878.4 $ 5,963.9 Accident and health 554.0 568.7 Guaranteed minimum income benefits 278.6 340.3 Other annuity benefits (1) 26,176.9 27,535.8 Claims liability and other 864.6 860.8 Total $ 33,752.5 $ 35,269.5 (1) |
Reserves for Future Policy Be_2
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Reserves for Future Policy Benefits and Claims Payable Balances | The following table sets forth the Company’s reserves for future policy benefits and claims payable balances (in millions): September 30, December 31, 2021 2020 Traditional life $ 4,276.0 $ 4,535.3 Guaranteed benefits (1) 6,039.0 8,508.5 Claims payable 1,042.0 1,109.5 Accident and health 1,242.2 1,257.2 Group payout annuities 4,971.4 5,220.3 Other 828.7 859.3 Total $ 18,399.3 $ 21,490.1 (1) Primarily i ncludes the embedded derivative liabilities related to the GMWB reserve. |
Liabilities for Other Contract Holder Funds Balances | The following table sets forth the Company’s liabilities for other contract holder funds balances (in millions): September 30, December 31, 2021 2020 Interest-sensitive life $ 11,651.8 $ 11,835.5 Variable annuity fixed option 10,340.4 10,609.6 Fixed annuity 16,087.8 16,746.3 Fixed index annuity (1) 13,547.4 14,209.2 GICs, funding agreements and FHLB advances 8,838.5 11,137.8 Total $ 60,465.9 $ 64,538.4 (1) Includes the embedded derivative liabilities related to fixed index annuity of $1,439.7 million and $1,483.9 million at September 30, 2021 and December 31, 2020, respectively. |
Distribution of Fixed Interest Rate Annuities' Account Values | The following tables show the distribution of the fixed interest rate annuities’ account values within the presented ranges of minimum guaranteed interest rates (in millions): September 30, 2021 Minimum Account Value Fixed Fixed Index Variable Total 1.0% $ 140.0 $ 253.9 $ 6,241.7 $ 6,635.6 >1.0% - 2.0% 58.1 1.4 224.2 283.7 >2.0% - 3.0% 1,131.3 183.0 3,310.4 4,624.7 >3.0% - 4.0% 602.5 — — 602.5 >4.0% - 5.0% 277.7 — — 277.7 >5.0% - 5.5% 72.0 — — 72.0 Subtotal 2,281.6 438.3 9,776.3 12,496.2 Ceded reinsurance 12,330.0 13,109.3 — 25,439.3 Total $ 14,611.6 $ 13,547.6 $ 9,776.3 $ 37,935.5 December 31, 2020 Minimum Account Value 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 |
Distribution of 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): Minimum September 30, 2021 December 31, 2020 Account Value - Interest Sensitive Life >2.0% - 3.0% $ 254.8 $ 269.6 >3.0% - 4.0% 2,753.8 2,819.5 >4.0% - 5.0% 2,412.1 2,488.2 >5.0% - 6.0% 1,984.9 2,044.6 Subtotal 7,405.6 7,621.9 Retro treaties 4,246.2 4,213.6 Total $ 11,651.8 $ 11,835.5 |
Certain Nontraditional Long-D_2
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Net Amount At Risk | At September 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): Minimum Return Account Net Amount at Risk Weighted Average Attained Age Average Period until Expected Annuitization September 30, 2021 Return of net deposits plus a minimum return GMDB 0-6% $ 184,766.9 $ 2,286.5 68.6 years GMWB - Premium only 0% 2,883.1 9.9 GMWB 0-5%* 239.2 8.9 GMAB - Premium only 0% — — Highest specified anniversary account value minus withdrawals post-anniversary GMDB 14,223.6 301.1 69.7 years GMWB - Highest anniversary only 3,728.2 69.8 GMWB 633.5 47.8 Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary GMDB 0-6% 9,475.4 695.6 71.8 years GMIB 0-6% 1,638.3 496.6 0.5 years GMWB 0-8%* 172,918.5 5,775.1 Weighted Average Attained Age Average Period until Expected Annuitization Minimum Return Account Net Amount at Risk December 31, 2020 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 * Ranges shown based on simple interest. The upper limits of 5% or 8% simple interest are approximately equal to 4.1% and 6.0%, respectively, on a compound interest basis over a typical 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. Liabilities for these benefits, as established according to the methodologies described below, are as follows: September 30, 2021 December 31, 2020 Benefit Type Liability Net Amount Weighted Average Attained Age Liability Net Amount Weighted Average Attained Age Insurance benefits * $ 939.6 $ 18,641.4 63.9 years $ 939.6 $ 19,483.0 63.5 years Account balance adjustments 138.7 N/A N/A 133.6 N/A N/A |
Separate Account Balances | Account balances of contracts with guarantees were invested in variable separate accounts as follows (in millions): September 30, December 31, 2021 2020 Fund type: Equity $ 145,386.1 $ 132,213.0 Bond 20,211.3 20,202.9 Balanced 41,708.4 39,626.1 Money market 1,830.0 1,861.6 Total $ 209,135.8 $ 193,903.6 |
GMDB liabilities in the General Account | GMDB liabilities reflected in the general account were as follows (in millions): Nine Months Ended September 30, 2021 2020 Balance as of beginning of period $ 1,418.3 $ 1,282.9 Incurred guaranteed benefits 173.4 315.0 Paid guaranteed benefits (78.3) (110.0) Balance as of end of period $ 1,513.4 $ 1,487.9 |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Aggregate Carrying Value of Short-Term and Long-Term Debt | The aggregate carrying value of short-term and long-term debt were as follows (in millions): September 30, December 31, 2021 2020 Short-Term Debt Term loan due 2022 1,601.7 — Long-Term Debt Term loan due 2023 $ 750.8 $ — Surplus notes 249.7 249.7 FHLBI bank loans 68.0 72.3 Total long-term debt $ 1,068.5 $ 322.0 Scheduled Maturities of Debt Due in less than 1 year $ 1,601.7 Due in more than 1 to 5 years 750.8 Due after 5 years 317.7 Total $ 2,670.2 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Certain Information with Respect to Segments | Set forth in the tables below is certain information with respect to the Company’s segments, as described above (in millions): Three Months Ended September 30, 2021 Retail Annuities Closed Life Institutional Corporate Intersegment Eliminations Total Operating Revenues Fee income $ 1,089.9 $ 122.5 $ — $ 32.4 $ (14.1) $ 1,230.7 Premium — 38.2 — — — 38.2 Net investment income 180.7 244.4 68.7 (55.2) 48.8 487.4 Income on operating derivatives 13.3 18.4 (1.1) 7.9 — 38.5 Other income 11.8 7.6 — (2.8) — 16.6 Total Operating Revenues 1,295.7 431.1 67.6 (17.7) 34.7 1,811.4 Operating Benefits and Expenses Death, other policy benefits and change in policy 24.6 218.2 — — — 242.8 Interest credited on other contract holder funds, net of deferrals (1) 66.3 103.0 47.3 — — 216.6 Interest expense (1) 5.7 — (1.9) 2.5 — 6.3 Operating costs and other expenses, net of deferrals 512.5 37.6 1.1 49.9 — 601.1 Deferred acquisition and sales inducements 159.4 4.0 — — 10.0 173.4 Total Operating Benefits and Expenses 768.5 362.8 46.5 52.4 10.0 1,240.2 Pretax Adjusted Operating Earnings $ 527.2 $ 68.3 $ 21.1 $ (70.1) $ 24.7 $ 571.2 Three Months Ended September 30, 2020 Retail Annuities Closed Life Institutional Corporate Intersegment Eliminations Total Operating Revenues Fee income $ 881.0 $ 127.3 $ — $ 39.2 $ (17.8) $ 1,029.7 Premium — 49.7 — — — 49.7 Net investment income 135.3 245.6 87.6 (26.4) 49.8 491.9 Income on operating derivatives 10.2 21.4 — 6.6 — 38.2 Other income 12.9 7.6 — 1.0 — 21.5 Total Operating Revenues 1,039.4 451.6 87.6 20.4 32.0 1,631.0 Operating Benefits and Expenses Death, other policy benefits and change in policy 22.4 237.0 — — — 259.4 Interest credited on other contract holder funds, net 65.1 107.2 58.0 — — 230.3 Interest expense 5.8 — 2.0 — — 7.8 Operating costs and other expenses, net of deferrals 464.2 39.3 1.3 32.7 — 537.5 Deferred acquisition and sales inducements (61.0) 3.2 — — 8.1 (49.7) Total Operating Benefits and Expenses 496.5 386.7 61.3 32.7 8.1 985.3 Pretax Adjusted Operating Earnings $ 542.9 $ 64.9 $ 26.3 $ (12.3) $ 23.9 $ 645.7 Nine Months Ended September 30, 2021 Retail Annuities Closed Life Institutional Corporate Intersegment Eliminations Total Operating Revenues Fee income $ 3,135.6 $ 370.5 $ — $ 101.3 $ (43.8) $ 3,563.6 Premium — 109.5 — — — 109.5 Net investment income 529.4 705.8 189.1 (99.8) 145.9 1,470.4 Income on operating derivatives 41.9 56.1 (1.1) 20.3 — 117.2 Other income 35.4 29.3 — 5.5 — 70.2 Total Operating Revenues 3,742.3 1,271.2 188.0 27.3 102.1 5,330.9 Operating Benefits and Expenses Death, other policy benefits and change in policy 42.1 630.9 — — — 673.0 Interest credited on other contract holder funds, net of deferrals (1) 199.9 309.6 147.1 — — 656.6 Interest expense (1) 16.5 — — 2.5 — 19.0 Operating costs and other expenses, net of deferrals 1,472.5 116.1 3.6 156.3 — 1,748.5 Deferred acquisition and sales inducements 232.6 11.0 — — 24.9 268.5 Total Operating Benefits and Expenses 1,963.6 1,067.6 150.7 158.8 24.9 3,365.6 Pretax Adjusted Operating Earnings $ 1,778.7 $ 203.6 $ 37.3 $ (131.5) $ 77.2 $ 1,965.3 Nine Months Ended September 30, 2020 Retail Annuities Closed Life Institutional Corporate Intersegment Eliminations Total Operating Revenues Fee income $ 2,530.7 $ 385.8 $ — $ 126.3 $ (62.8) $ 2,980.0 Premium — 143.6 — — — 143.6 Net investment income 762.1 543.9 284.4 (103.8) 127.0 1,613.6 Income on operating derivatives 35.9 39.2 — 15.1 — 90.2 Other income 17.3 13.4 1.6 3.3 — 35.6 Total Operating Revenues 3,346.0 1,125.9 286.0 40.9 64.2 4,863.0 Operating Benefits and Expenses Death, other policy benefits and change in policy 40.2 642.5 — — — 682.7 Interest credited on other contract holder funds, 463.1 321.8 194.4 — — 979.3 Interest expense 21.5 — 14.9 44.6 — 81.0 Operating costs and other expenses, 1,313.5 115.7 3.9 125.5 — 1,558.6 Deferred acquisition and sales inducements 102.8 10.9 — — 17.2 130.9 Total Operating Benefits and Expenses 1,941.1 1,090.9 213.2 170.1 17.2 3,432.5 Pretax Adjusted Operating Earnings $ 1,404.9 $ 35.0 $ 72.8 $ (129.2) $ 47.0 $ 1,430.5 (1) At September 30, 2021, interest expense recorded for certain funding agreements has been reclassified to interest credited on other contract holder funds for Institutional Products, prospectively. |
Reconciliation of Segment Operating Revenues to Total Revenues | The following table summarizes the reconciling items from the non-GAAP measure of operating revenues to the GAAP measure of total revenues attributable to the Company (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Total operating revenues $ 1,811.4 $ 1,631.0 $ 5,330.9 $ 4,863.0 Fees attributed to variable annuity benefit reserves 728.1 633.7 2,100.7 1,858.3 Net gains (losses) on derivatives and investments (1,417.9) (2,542.9) (1,311.7) (4,608.0) Net investment income related to noncontrolling interests 61.9 21.7 186.3 (37.8) Consolidated investments 3.2 90.5 34.5 23.9 Net investment income on funds withheld assets 299.6 277.1 884.5 506.0 Total revenues $ 1,486.3 $ 111.1 $ 7,225.2 $ 2,605.4 |
Reconciliation of Segment Operating Benefits and Expenses to Total Benefits and Expenses | The following table summarizes the reconciling items from the non-GAAP measure of operating benefits and expenses to the GAAP measure of total benefits and expenses attributable to the Company (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Total operating benefits and expenses $ 1,240.2 $ 985.3 $ 3,365.6 $ 3,432.5 Benefits attributed to variable annuity benefit reserves 25.0 32.0 91.4 121.9 Amortization of DAC and DSI related to non-operating revenues and expenses (169.4) (349.0) 283.7 (980.7) SOP 03-1 reserve movements 126.4 (67.4) 122.8 266.7 Athene reinsurance transaction — 34.9 — 2,081.6 Other items 12.4 7.2 63.0 11.2 Total benefits and expenses $ 1,234.6 $ 643.0 $ 3,926.5 $ 4,933.2 |
Reconciliation of Segment Pretax Adjusted Operating Earnings to Net Income | The following table summarizes the reconciling items, net of deferred acquisition costs and deferred sales inducements, from the non-GAAP measure of pretax adjusted operating earnings to the GAAP measure of net income attributable to the Company (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Pretax adjusted operating earnings $ 571.2 $ 645.7 $ 1,965.3 $ 1,430.5 Non-operating adjustments (income) loss: Fees attributable to guarantee benefit reserves 728.1 633.7 2,100.7 1,858.3 Net movement in freestanding derivatives (493.3) (3,530.3) (3,966.3) (812.4) Net reserve and embedded derivative movements (996.7) 1,378.1 2,221.8 (5,158.6) DAC and DSI impact 169.3 349.1 (283.8) 980.9 Net realized investment gains (losses) including change in fair value of funds withheld embedded derivative (79.1) (355.4) 218.7 974.5 Loss on funds withheld reinsurance transaction — (34.9) — (2,081.6) Net investment income on funds withheld assets 299.6 277.1 884.5 506.0 Other items (9.3) 83.3 (28.5) 12.4 Pretax income (loss) attributable to Jackson Financial Inc. 189.8 (553.6) 3,112.4 (2,290.0) Income tax expense (benefit) (16.4) (157.0) 514.7 (580.8) Net income (loss) attributable to Jackson Financial, Inc. $ 206.2 $ (396.6) $ 2,597.7 $ (1,709.2) |
Operating Costs and Other Exp_2
Operating Costs and Other Expenses (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Asset-based commission expenses $ 285.9 $ 233.2 $ 834.1 $ 658.7 Other commission expenses 262.9 261.4 792.4 744.8 Athene ceding commission (1) — 28.5 — (1,202.6) General and administrative expenses 256.5 235.7 777.1 702.1 Deferral of acquisition costs (191.7) (185.5) (592.1) (535.8) Total operating costs and other expenses $ 613.6 $ 573.3 $ 1,811.5 $ 367.2 (1) See Note 7 for further information |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income | The following table represents changes in the balance of accumulated other comprehensive income (" AOCI"), net of income tax, related to unrealized investment gains (losses) (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Balance, beginning of period (1) $ 2,390.2 $ 3,429.4 $ 3,820.6 $ 2,396.7 OCI before reclassifications (313.6) 489.0 (1,552.2) 2,085.7 Amounts reclassified from AOCI (31.4) (67.8) (223.2) (631.8) Balance, end of period (1) $ 2,045.2 $ 3,850.6 $ 2,045.2 $ 3,850.6 (1) Includes $481.3 million, $1,212.8 million, and $1,213.9 million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of September 30, 2021, December 31, 2020, and September 30, 2020, respectively. |
Amounts Reclassified Out of AOCI | The following table represents amounts reclassified out of AOCI (in millions): AOCI Components Amounts Affected Line Item in the Three Months Ended September 30, 2021 2020 Net unrealized investment gain (loss): Net realized gain (loss) on investments $ (40.0) $ (87.2) Net gains (losses) on derivatives and investments Other impaired securities — 1.3 Net gains (losses) on derivatives and investments Net unrealized gain (loss), before income taxes (40.0) (85.9) Income tax expense (benefit) (8.6) (18.1) Reclassifications, net of income taxes $ (31.4) $ (67.8) AOCI Components Amounts Affected Line Item in the Nine Months Ended September 30, 2021 2020 Net unrealized investment gain (loss): Net realized gain (loss) on investments $ (284.6) $ (808.6) Net gains (losses) on derivatives and investments Other impaired securities — 8.8 Net gains (losses) on derivatives and investments Net unrealized gain (loss), before income taxes (284.6) (799.8) Income tax expense (benefit) (61.4) (168.0) Reclassifications, net of income taxes $ (223.2) $ (631.8) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Common Share | The following table sets forth the calculation of earnings per common share: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in millions, except share and per share data) Net income (loss) attributable to Jackson Financial Inc. $ 206.2 $ (396.6) $ 2,597.7 $ (1,709.2) Weighted average shares of common stock outstanding - basic 94,464,343 92,638,945 94,464,343 58,625,564 Weighted average shares of common stock outstanding - diluted 94,464,343 92,638,945 94,464,343 58,625,564 Earnings per share—common stock Basic $ 2.18 $ (4.28) $ 27.50 $ (29.15) Diluted $ 2.18 $ (4.28) $ 27.50 $ (29.15) |
Business and Basis of Present_3
Business and Basis of Presentation (Details) $ / shares in Units, $ in Millions | Sep. 09, 2021 | Jun. 18, 2020USD ($) | Aug. 31, 2020USD ($) | Sep. 30, 2021$ / shares | Sep. 13, 2021 | Aug. 06, 2021$ / shares | Dec. 31, 2020$ / shares | Jul. 17, 2020$ / shares |
Class of Stock [Line Items] | ||||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | |||||||
Stock split conversion ratio | 104,960.3836276 | |||||||
Jackson | ||||||||
Class of Stock [Line Items] | ||||||||
Capital contribution to subsidiary | $ 500 | |||||||
Athene | ||||||||
Class of Stock [Line Items] | ||||||||
Reinsurance quota share basis | 100.00% | |||||||
Reinsurance agreement, ceding commission | $ 1,200 | |||||||
Prudential | Jackson Financial | ||||||||
Class of Stock [Line Items] | ||||||||
Ownership interest | 19.90% | |||||||
Athene | Jackson Financial | ||||||||
Class of Stock [Line Items] | ||||||||
Ownership interest | 9.90% | |||||||
Investment agreement, committed capital | $ 500 | |||||||
Economic ownership percentage | 11.10% | |||||||
Class A common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | Sep. 30, 2021USD ($)state | Dec. 31, 2020USD ($) | Sep. 30, 2021USD ($)state | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)state | Sep. 30, 2020USD ($) | Jan. 31, 2022USD ($) | Nov. 10, 2021USD ($) |
Summary of Investment Holdings [Line Items] | |||||||||
Debt securities, rated by investment advisor | $ 141.9 | $ 141.9 | $ 141.9 | ||||||
Securities on deposit with regulatory authorities | 115.2 | $ 123.4 | 115.2 | 115.2 | |||||
Aggregate fair value of securities sold at a loss | $ 160.7 | $ 107 | $ 1,345.1 | $ 7,245.7 | |||||
Aggregate fair value of securities sold at a loss, percentage of book value | 98.00% | 93.00% | 95.00% | 97.00% | |||||
Proceeds from sales of available-for-sale debt securities | $ 1,000 | $ 1,900 | $ 6,600 | $ 17,400 | |||||
Unconsolidated VIEs, exposure to loss | 3,338 | 2,976.4 | 3,338 | 3,338 | |||||
Equity securities | 290.1 | 193.1 | 290.1 | 290.1 | |||||
Financing receivables | 11,731.4 | 10,727.5 | 11,731.4 | 11,731.4 | |||||
Financing receivables, accrued interest receivable | 48.4 | 48.4 | 29.9 | $ 48.4 | 29.9 | ||||
Deferral of interest and principal payments, repayment period, COVID-19 | 1 year | ||||||||
Deferred interest and principal payments, COVID-19 | 12.7 | 12.7 | $ 12.7 | ||||||
Recorded investment | 2.7 | 2.7 | 2.7 | ||||||
Unpaid principal balance, no related allowance | 2.9 | 2.9 | 2.9 | ||||||
Average recorded investment | 1 | ||||||||
Investment income | 0 | ||||||||
Mortgage loans in process of foreclosure | 2.7 | 0 | 2.7 | 2.7 | |||||
Other invested assets | 2,770.5 | 2,366.7 | 2,770.5 | 2,770.5 | |||||
Sale of limited partnership investments | 168 | $ 235.8 | |||||||
Securities loaned | $ 20.2 | 12.9 | $ 20.2 | $ 20.2 | |||||
Securities loaned, minimum percent of fair value required as collateral | 102.00% | 102.00% | 102.00% | ||||||
Securities loaned, cash collateral | $ 20.7 | 13.3 | $ 20.7 | $ 20.7 | |||||
Short term borrowings | $ 1,601.7 | $ 0 | 1,601.7 | 1,601.7 | |||||
Repurchase agreements, weighted average interest rate | 0.08% | 0.16% | |||||||
Repurchase agreement balance | $ 306 | $ 1,100 | 306 | 306 | |||||
Repurchase agreements, interest expense | 0.4 | 0.2 | 1 | 0.4 | |||||
Repurchase agreements, highest level of amount outstanding | 2,349.1 | 1,485.6 | |||||||
Unfunded partnership investment commitment | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Unfunded commitments | 1,489.1 | 1,489.1 | $ 1,489.1 | ||||||
Unfunded partnership investment commitment | Subsequent Event | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Unfunded commitments | $ 300 | ||||||||
Minimum | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Deferral of interest and principal payments, period, COVID-19 | 6 months | ||||||||
Maximum | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Deferral of interest and principal payments, period, COVID-19 | 14 months | ||||||||
Repurchase agreements | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Short term borrowings | 1,734.3 | 454.9 | 1,734.3 | $ 1,734.3 | |||||
Forecast | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Sale of limited partnership investments | $ 420.4 | ||||||||
Commercial mortgage loans | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Financing receivables | 10,800 | 10,200 | 10,800 | 10,800 | |||||
Financing receivables, allowance for credit losses | $ 86 | 164.7 | $ 86 | $ 86 | |||||
Financing receivables, collateralized by properties, number of states | state | 38 | 38 | 38 | ||||||
Financing receivables, accrued interest receivable | $ 34.8 | 32.3 | $ 34.8 | $ 34.8 | |||||
Mortgage loans in process of foreclosure | 0 | 0 | 0 | 0 | |||||
Residential mortgage loans | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Financing receivables | 942.1 | 448.6 | 942.1 | 942.1 | |||||
Financing receivables, allowance for credit losses | $ 10.4 | 14.5 | $ 10.4 | $ 10.4 | |||||
Financing receivables, collateralized by properties, number of states | state | 50 | 50 | 50 | ||||||
Financing receivables, accrued interest receivable | $ 13.6 | 2.9 | $ 13.6 | $ 13.6 | |||||
Unconsolidated VIEs | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Equity securities | 31.1 | 23.6 | 31.1 | 31.1 | |||||
Corporate securities | Single corporate obligor | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Debt securities, unrealized loss | $ 20.3 | $ 20.3 | $ 20.3 | ||||||
Corporate debt securities, financial services | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Debt securities, unrealized losses, percentage | 15.00% | 15.00% | 15.00% | ||||||
Corporate debt securities, consumer goods | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Debt securities, unrealized losses, percentage | 15.00% | 15.00% | 15.00% | ||||||
Equity securities | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Unrealized gains (losses) | $ 5.9 | 2.3 | $ 21.3 | (41.3) | |||||
Investment income (expense) | (2.2) | $ 94.7 | 34.7 | $ 3.5 | |||||
Limited partnerships | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Other invested assets | $ 2,400.7 | 1,991.3 | 2,400.7 | 2,400.7 | |||||
Federal Home Loan Bank capital stock | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Other invested assets | 125.4 | 125.4 | 125.4 | 125.4 | |||||
Real estate | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Other invested assets | 244.3 | $ 250 | 244.3 | 244.3 | |||||
Real estate, foreclosed properties | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Other invested assets | $ 0.7 | $ 0.7 | $ 0.7 | ||||||
Investment grade | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Debt securities in an unrealized loss position, percentage | 74.00% | 74.00% | 74.00% | ||||||
Below investment grade | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Debt securities in an unrealized loss position, percentage | 11.00% | 11.00% | 11.00% | ||||||
Not rated | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Debt securities in an unrealized loss position, percentage | 15.00% | 15.00% | 15.00% | ||||||
Below investment grade or not rated | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Debt securities, unrealized losses, percentage | 11.00% | 11.00% | 11.00% |
Investments - Composition of Fa
Investments - Composition of Fair Value of Debt Securities Classified by Rating (Details) | Sep. 30, 2021 |
Investment Holdings [Line Items] | |
Percent of total debt securities carrying value | 100.00% |
Investment grade | |
Investment Holdings [Line Items] | |
Percent of total debt securities carrying value | 94.00% |
Investment grade | AAA | |
Investment Holdings [Line Items] | |
Percent of total debt securities carrying value | 16.50% |
Investment grade | AA | |
Investment Holdings [Line Items] | |
Percent of total debt securities carrying value | 9.20% |
Investment grade | A | |
Investment Holdings [Line Items] | |
Percent of total debt securities carrying value | 29.20% |
Investment grade | BBB | |
Investment Holdings [Line Items] | |
Percent of total debt securities carrying value | 39.10% |
Below investment grade | |
Investment Holdings [Line Items] | |
Percent of total debt securities carrying value | 6.00% |
Below investment grade | BB | |
Investment Holdings [Line Items] | |
Percent of total debt securities carrying value | 3.40% |
Below investment grade | B and below | |
Investment Holdings [Line Items] | |
Percent of total debt securities carrying value | 2.60% |
Investments - Debt Securities -
Investments - Debt Securities - Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and Allowance For Credit Loss (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | $ 51,199.4 | $ 55,523.4 |
Allowance for Credit Loss | 9.4 | 13.6 |
Gross Unrealized Gains | 3,285.2 | 5,116.5 |
Gross Unrealized Losses | 717.7 | 168.9 |
Fair Value | 53,757.5 | 60,457.4 |
U.S. government securities | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 4,792.9 | 5,078.9 |
Allowance for Credit Loss | 0 | 0 |
Gross Unrealized Gains | 83 | 162 |
Gross Unrealized Losses | 412.9 | 114.9 |
Fair Value | 4,463 | 5,126 |
Other government securities | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 1,440.6 | 1,497.1 |
Allowance for Credit Loss | 0 | 0 |
Gross Unrealized Gains | 142.3 | 200.6 |
Gross Unrealized Losses | 20.9 | 0.8 |
Fair Value | 1,562 | 1,696.9 |
Public utilities | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 5,830.7 | 6,270.4 |
Allowance for Credit Loss | 0 | 0 |
Gross Unrealized Gains | 711.4 | 1,029.2 |
Gross Unrealized Losses | 20.8 | 1.9 |
Fair Value | 6,521.3 | 7,297.7 |
Corporate securities | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 29,964.7 | 33,180.3 |
Allowance for Credit Loss | 0 | 0 |
Gross Unrealized Gains | 2,043.9 | 3,301.6 |
Gross Unrealized Losses | 239 | 41.9 |
Fair Value | 31,769.6 | 36,440 |
Residential mortgage-backed | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 753.2 | 911.7 |
Allowance for Credit Loss | 2 | 0 |
Gross Unrealized Gains | 59.6 | 74.4 |
Gross Unrealized Losses | 1.9 | 1.2 |
Fair Value | 808.9 | 984.9 |
Commercial mortgage-backed | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 2,686.1 | 3,077.6 |
Allowance for Credit Loss | 0 | 0 |
Gross Unrealized Gains | 152.4 | 248.5 |
Gross Unrealized Losses | 3.6 | 3.5 |
Fair Value | 2,834.9 | 3,322.6 |
Other asset-backed securities | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 5,731.2 | 5,507.4 |
Allowance for Credit Loss | 7.4 | 13.6 |
Gross Unrealized Gains | 92.6 | 100.2 |
Gross Unrealized Losses | 18.6 | 4.7 |
Fair Value | $ 5,797.8 | $ 5,589.3 |
Investments - Debt Securities M
Investments - Debt Securities Maturities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in 1 year or less | $ 1,069.8 | |
Due after 1 year through 5 years | 8,537.8 | |
Due after 5 years through 10 years | 14,322 | |
Due after 10 years through 20 years | 8,536.1 | |
Due after 20 years | 9,563.2 | |
Total | 51,199.4 | $ 55,523.4 |
Allowance for Credit Loss | ||
Due in 1 year or less | 0 | |
Due after 1 year through 5 years | 0 | |
Due after 5 years through 10 years | 0 | |
Due after 10 years through 20 years | 0 | |
Due after 20 years | 0 | |
Total | 9.4 | 13.6 |
Gross Unrealized Gains | ||
Due in 1 year or less | 18.7 | |
Due after 1 year through 5 years | 506.7 | |
Due after 5 years through 10 years | 962 | |
Due after 10 years through 20 years | 878.8 | |
Due after 20 years | 614.4 | |
Total | 3,285.2 | 5,116.5 |
Gross Unrealized Losses | ||
Due in 1 year or less | 0 | |
Due after 1 year through 5 years | 17.2 | |
Due after 5 years through 10 years | 85.9 | |
Due after 10 years through 20 years | 184.4 | |
Due after 20 years | 406.1 | |
Total | 717.7 | 168.9 |
Fair Value | ||
Due in 1 year or less | 1,088.5 | |
Due after 1 year through 5 years | 9,027.3 | |
Due after 5 years through 10 years | 15,198.1 | |
Due after 10 years through 20 years | 9,230.5 | |
Due after 20 years | 9,771.5 | |
Debt securities | 53,757.5 | 60,457.4 |
Residential mortgage-backed | ||
Amortized Cost | ||
Without single maturity | 753.2 | |
Total | 753.2 | 911.7 |
Allowance for Credit Loss | ||
Without single maturity | 2 | |
Total | 2 | 0 |
Gross Unrealized Gains | ||
Without single maturity | 59.6 | |
Total | 59.6 | 74.4 |
Gross Unrealized Losses | ||
Without single maturity | 1.9 | |
Total | 1.9 | 1.2 |
Fair Value | ||
Without single maturity | 808.9 | |
Debt securities | 808.9 | 984.9 |
Commercial mortgage-backed | ||
Amortized Cost | ||
Without single maturity | 2,686.1 | |
Total | 2,686.1 | 3,077.6 |
Allowance for Credit Loss | ||
Without single maturity | 0 | |
Total | 0 | 0 |
Gross Unrealized Gains | ||
Without single maturity | 152.4 | |
Total | 152.4 | 248.5 |
Gross Unrealized Losses | ||
Without single maturity | 3.6 | |
Total | 3.6 | 3.5 |
Fair Value | ||
Without single maturity | 2,834.9 | |
Debt securities | 2,834.9 | 3,322.6 |
Other asset-backed securities | ||
Amortized Cost | ||
Without single maturity | 5,731.2 | |
Total | 5,731.2 | 5,507.4 |
Allowance for Credit Loss | ||
Without single maturity | 7.4 | |
Total | 7.4 | 13.6 |
Gross Unrealized Gains | ||
Without single maturity | 92.6 | |
Total | 92.6 | 100.2 |
Gross Unrealized Losses | ||
Without single maturity | 18.6 | |
Total | 18.6 | 4.7 |
Fair Value | ||
Without single maturity | 5,797.8 | |
Debt securities | $ 5,797.8 | $ 5,589.3 |
Investments - Residential Mortg
Investments - Residential Mortgage-Backed Securities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | $ 51,199.4 | $ 55,523.4 |
Allowance for Credit Loss | 9.4 | 13.6 |
Gross Unrealized Gains | 3,285.2 | 5,116.5 |
Gross Unrealized Losses | 717.7 | 168.9 |
Fair Value | 53,757.5 | 60,457.4 |
Non-agency RMBS | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 400.2 | 471.3 |
Allowance for Credit Loss | 2 | 0 |
Gross Unrealized Gains | 48.7 | 56.6 |
Gross Unrealized Losses | 1.2 | 1.2 |
Fair Value | 445.7 | 526.7 |
Non-agency RMBS | Prime | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 255.6 | 287.4 |
Allowance for Credit Loss | 1.6 | 0 |
Gross Unrealized Gains | 12.5 | 17.1 |
Gross Unrealized Losses | 1 | 0.7 |
Fair Value | 265.5 | 303.8 |
Non-agency RMBS | Alt-A | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 101.4 | 122.9 |
Allowance for Credit Loss | 0.4 | 0 |
Gross Unrealized Gains | 22.8 | 25.6 |
Gross Unrealized Losses | 0.2 | 0.3 |
Fair Value | 123.6 | 148.2 |
Non-agency RMBS | Subprime | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 43.2 | 61 |
Allowance for Credit Loss | 0 | 0 |
Gross Unrealized Gains | 13.4 | 13.9 |
Gross Unrealized Losses | 0 | 0.2 |
Fair Value | $ 56.6 | $ 74.7 |
Investments - Debt Securities i
Investments - Debt Securities in Continuous Unrealized Loss Position (Details) $ in Millions | Sep. 30, 2021USD ($)security | Dec. 31, 2020USD ($)security |
Summary of Investment Holdings [Line Items] | ||
Less than 12 months, gross unrealized losses | $ 235.5 | $ 164.8 |
Less than 12 months, fair value | $ 8,703.7 | $ 6,555.4 |
Less than 12 months, # of securities | security | 1,125 | 315 |
12 months or longer, gross unrealized losses | $ 482.2 | $ 4.1 |
12 months or longer, fair value | $ 4,111.1 | $ 44.2 |
12 months or longer, # of securities | security | 100 | 12 |
Total, gross unrealized losses | $ 717.7 | $ 168.9 |
Total, fair value | $ 12,814.8 | $ 6,599.6 |
Total, # of securities | security | 1,225 | 327 |
U.S. government securities | ||
Summary of Investment Holdings [Line Items] | ||
Less than 12 months, gross unrealized losses | $ 1.3 | $ 114.9 |
Less than 12 months, fair value | $ 134.5 | $ 3,944.7 |
Less than 12 months, # of securities | security | 20 | 7 |
12 months or longer, gross unrealized losses | $ 411.5 | $ 0 |
12 months or longer, fair value | $ 3,335.3 | $ 0 |
12 months or longer, # of securities | security | 6 | 0 |
Total, gross unrealized losses | $ 412.8 | $ 114.9 |
Total, fair value | $ 3,469.8 | $ 3,944.7 |
Total, # of securities | security | 26 | 7 |
Other government securities | ||
Summary of Investment Holdings [Line Items] | ||
Less than 12 months, gross unrealized losses | $ 12.9 | $ 0.8 |
Less than 12 months, fair value | $ 272.8 | $ 89.4 |
Less than 12 months, # of securities | security | 31 | 7 |
12 months or longer, gross unrealized losses | $ 8 | $ 0 |
12 months or longer, fair value | $ 52.4 | $ 0 |
12 months or longer, # of securities | security | 6 | 0 |
Total, gross unrealized losses | $ 20.9 | $ 0.8 |
Total, fair value | $ 325.2 | $ 89.4 |
Total, # of securities | security | 37 | 7 |
Public utilities | ||
Summary of Investment Holdings [Line Items] | ||
Less than 12 months, gross unrealized losses | $ 15.2 | $ 1.8 |
Less than 12 months, fair value | $ 535.2 | $ 146.5 |
Less than 12 months, # of securities | security | 70 | 8 |
12 months or longer, gross unrealized losses | $ 5.7 | $ 0 |
12 months or longer, fair value | $ 62.2 | $ 0 |
12 months or longer, # of securities | security | 5 | 0 |
Total, gross unrealized losses | $ 20.9 | $ 1.8 |
Total, fair value | $ 597.4 | $ 146.5 |
Total, # of securities | security | 75 | 8 |
Corporate securities | ||
Summary of Investment Holdings [Line Items] | ||
Less than 12 months, gross unrealized losses | $ 183 | $ 41.5 |
Less than 12 months, fair value | $ 5,526.3 | $ 1,391.1 |
Less than 12 months, # of securities | security | 626 | 161 |
12 months or longer, gross unrealized losses | $ 56 | $ 0.5 |
12 months or longer, fair value | $ 604.7 | $ 2.9 |
12 months or longer, # of securities | security | 64 | 3 |
Total, gross unrealized losses | $ 239 | $ 42 |
Total, fair value | $ 6,131 | $ 1,394 |
Total, # of securities | security | 690 | 164 |
Residential mortgage-backed | ||
Summary of Investment Holdings [Line Items] | ||
Less than 12 months, gross unrealized losses | $ 1.8 | $ 1.2 |
Less than 12 months, fair value | $ 186.8 | $ 35.4 |
Less than 12 months, # of securities | security | 96 | 28 |
12 months or longer, gross unrealized losses | $ 0.1 | $ 0 |
12 months or longer, fair value | $ 3.3 | $ 1.8 |
12 months or longer, # of securities | security | 12 | 4 |
Total, gross unrealized losses | $ 1.9 | $ 1.2 |
Total, fair value | $ 190.1 | $ 37.2 |
Total, # of securities | security | 108 | 32 |
Commercial mortgage-backed | ||
Summary of Investment Holdings [Line Items] | ||
Less than 12 months, gross unrealized losses | $ 2.8 | $ 3.2 |
Less than 12 months, fair value | $ 167.8 | $ 151.9 |
Less than 12 months, # of securities | security | 22 | 13 |
12 months or longer, gross unrealized losses | $ 0.8 | $ 0.3 |
12 months or longer, fair value | $ 40.2 | $ 9.7 |
12 months or longer, # of securities | security | 4 | 1 |
Total, gross unrealized losses | $ 3.6 | $ 3.5 |
Total, fair value | $ 208 | $ 161.6 |
Total, # of securities | security | 26 | 14 |
Other asset-backed securities | ||
Summary of Investment Holdings [Line Items] | ||
Less than 12 months, gross unrealized losses | $ 18.5 | $ 1.4 |
Less than 12 months, fair value | $ 1,880.3 | $ 796.4 |
Less than 12 months, # of securities | security | 260 | 91 |
12 months or longer, gross unrealized losses | $ 0.1 | $ 3.3 |
12 months or longer, fair value | $ 13 | $ 29.8 |
12 months or longer, # of securities | security | 3 | 4 |
Total, gross unrealized losses | $ 18.6 | $ 4.7 |
Total, fair value | $ 1,893.3 | $ 826.2 |
Total, # of securities | security | 263 | 95 |
Investments - Rollforward of Al
Investments - Rollforward of Allowance for Debt Securities Credit Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance | $ 6.8 | $ 17.5 | $ 13.6 | $ 0 |
Additions for which credit loss was not previously recorded | 0.7 | 0 | 1.9 | 17.5 |
Changes for securities with previously recorded credit loss | 17.7 | (0.1) | 9.7 | (0.1) |
Additions for purchases of PCD debt securities | 0 | 0 | 0 | 0 |
Reductions from charge-offs | 0 | 0 | 0 | 0 |
Reductions for securities disposed | (15.8) | 0 | (15.8) | 0 |
Securities intended/required to be sold before recovery of amortized cost basis | 0 | 0 | 0 | 0 |
Balance | 9.4 | 17.4 | 9.4 | 17.4 |
Accrued interest receivable on debt securities | 396.6 | 492.3 | 396.6 | 492.3 |
U.S. government securities | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 0 | 0 | 0 | 0 |
Additions for which credit loss was not previously recorded | 0 | 0 | 0 | 0 |
Changes for securities with previously recorded credit loss | 0 | 0 | 0 | 0 |
Additions for purchases of PCD debt securities | 0 | 0 | 0 | 0 |
Reductions from charge-offs | 0 | 0 | 0 | 0 |
Reductions for securities disposed | 0 | 0 | 0 | 0 |
Securities intended/required to be sold before recovery of amortized cost basis | 0 | 0 | 0 | 0 |
Balance | 0 | 0 | 0 | 0 |
Other government securities | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 0 | 0 | 0 | 0 |
Additions for which credit loss was not previously recorded | 0 | 0 | 0 | 0 |
Changes for securities with previously recorded credit loss | 0 | 0 | 0 | 0 |
Additions for purchases of PCD debt securities | 0 | 0 | 0 | 0 |
Reductions from charge-offs | 0 | 0 | 0 | 0 |
Reductions for securities disposed | 0 | 0 | 0 | 0 |
Securities intended/required to be sold before recovery of amortized cost basis | 0 | 0 | 0 | 0 |
Balance | 0 | 0 | 0 | 0 |
Public utilities | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 0 | 0 | 0 | 0 |
Additions for which credit loss was not previously recorded | 0 | 0 | 0 | 0 |
Changes for securities with previously recorded credit loss | 0 | 0 | 0 | 0 |
Additions for purchases of PCD debt securities | 0 | 0 | 0 | 0 |
Reductions from charge-offs | 0 | 0 | 0 | 0 |
Reductions for securities disposed | 0 | 0 | 0 | 0 |
Securities intended/required to be sold before recovery of amortized cost basis | 0 | 0 | 0 | 0 |
Balance | 0 | 0 | 0 | 0 |
Corporate securities | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 0 | 0 | 0 | 0 |
Additions for which credit loss was not previously recorded | 0 | 0 | 0 | 0 |
Changes for securities with previously recorded credit loss | 0 | 0 | 0 | 0 |
Additions for purchases of PCD debt securities | 0 | 0 | 0 | 0 |
Reductions from charge-offs | 0 | 0 | 0 | 0 |
Reductions for securities disposed | 0 | 0 | 0 | 0 |
Securities intended/required to be sold before recovery of amortized cost basis | 0 | 0 | 0 | 0 |
Balance | 0 | 0 | 0 | 0 |
Residential mortgage-backed | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 0.8 | 0.3 | 0 | 0 |
Additions for which credit loss was not previously recorded | 0.7 | 0 | 1.9 | 0.3 |
Changes for securities with previously recorded credit loss | 0.6 | (0.3) | 0.2 | (0.3) |
Additions for purchases of PCD debt securities | 0 | 0 | 0 | 0 |
Reductions from charge-offs | 0 | 0 | 0 | 0 |
Reductions for securities disposed | (0.1) | 0 | (0.1) | 0 |
Securities intended/required to be sold before recovery of amortized cost basis | 0 | 0 | 0 | 0 |
Balance | 2 | 0 | 2 | 0 |
Commercial mortgage-backed | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 0 | 0 | 0 | 0 |
Additions for which credit loss was not previously recorded | 0 | 0 | 0 | 0 |
Changes for securities with previously recorded credit loss | 0 | 0 | 0 | 0 |
Additions for purchases of PCD debt securities | 0 | 0 | 0 | 0 |
Reductions from charge-offs | 0 | 0 | 0 | 0 |
Reductions for securities disposed | 0 | 0 | 0 | 0 |
Securities intended/required to be sold before recovery of amortized cost basis | 0 | 0 | 0 | 0 |
Balance | 0 | 0 | 0 | 0 |
Other asset-backed securities | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 6 | 17.2 | 13.6 | 0 |
Additions for which credit loss was not previously recorded | 0 | 0 | 0 | 17.2 |
Changes for securities with previously recorded credit loss | 17.1 | 0.2 | 9.5 | 0.2 |
Additions for purchases of PCD debt securities | 0 | 0 | 0 | 0 |
Reductions from charge-offs | 0 | 0 | 0 | 0 |
Reductions for securities disposed | (15.7) | 0 | (15.7) | 0 |
Securities intended/required to be sold before recovery of amortized cost basis | 0 | 0 | 0 | 0 |
Balance | $ 7.4 | $ 17.4 | $ 7.4 | $ 17.4 |
Investments - Sources of Net In
Investments - Sources of Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net Investment Income [Line Items] | ||||
Total investment income | $ 565.2 | $ 639.8 | $ 1,771.1 | $ 1,666 |
Investment expenses: | ||||
Derivative trading commission | (0.9) | (1.1) | (2.2) | (4.2) |
Depreciation on real estate | (3.6) | (2.7) | (8.4) | (8.2) |
Expenses related to consolidated entities | (7.5) | (9.1) | (24.1) | (29.4) |
Other investment expenses | (0.8) | (22.6) | (45.3) | (24.6) |
Total investment expenses | (12.8) | (35.5) | (80) | (66.4) |
Net investment income | 852 | 881.4 | 2,575.6 | 2,105.6 |
Debt securities | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 271.7 | 416.8 | 872.2 | 1,338.7 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Total investment income | (0.2) | 0.4 | 6.4 | (13.3) |
Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 79.4 | 83.6 | 241.5 | 285.3 |
Policy Loans | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 19.8 | 21.8 | 55.5 | 59.7 |
Limited partnerships | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 192.7 | 113.3 | 585.6 | (26) |
Other investments | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 1.8 | 3.9 | 9.9 | 21.6 |
Funds withheld reinsurance assets | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 299.6 | 277.1 | 884.5 | 506 |
Investment expenses: | ||||
Total investment expenses | (26.3) | (28.6) | (81.8) | (36.7) |
Net investment income | $ 299.6 | $ 277.1 | $ 884.5 | $ 506 |
Investments - Net Gains (Losses
Investments - Net Gains (Losses) on Derivatives and Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Available-for-sale securities | ||||
Realized gains on sale | $ 28.3 | $ 99.2 | $ 149.1 | $ 519.2 |
Realized losses on sale | (1.3) | (2.7) | (59) | (186.4) |
Credit loss income (expense) | (17.4) | (0.3) | (10.2) | (17.4) |
Gross impairments | (0.1) | (0.2) | (0.1) | (26.6) |
Credit loss income (expense) on mortgage loans | 13.5 | (31.9) | 61.9 | (65.8) |
Other | 13.4 | (41.1) | 62.2 | (38.8) |
Net gains (losses) excluding derivatives and funds withheld assets | 36.4 | 23 | 203.9 | 184.2 |
Net gains (losses) on derivative instruments | (1,165.3) | (2,339) | (805.2) | (6,165) |
Total net gains (losses) on derivatives and investments | (1,379.3) | (2,504.8) | (1,194.4) | (4,517.7) |
Derivatives excluding funds withheld under reinsurance treaties | ||||
Available-for-sale securities | ||||
Net gains (losses) on derivative instruments | (1,300.5) | (2,149.4) | (1,413.4) | (5,492.2) |
Derivatives related to funds withheld under reinsurance treaties | ||||
Available-for-sale securities | ||||
Net gains (losses) on derivative instruments | 135.2 | (189.6) | 608.2 | (672.8) |
Net gains (losses) on funds withheld reinsurance treaties (see Note 7) | $ (115.2) | $ (378.4) | $ 15.1 | $ 790.3 |
Investments - Asset and Liabili
Investments - Asset and Liability Information for Consolidated VIEs (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Summary of Investment Holdings [Line Items] | ||||||
Debt securities, trading | $ 117.9 | $ 105.7 | ||||
Equity securities | 290.1 | 193.1 | ||||
Other assets | 1,306 | 1,103.7 | ||||
Total assets | 364,372.5 | 353,455.5 | ||||
Total other liabilities | 5,052.3 | 6,078.7 | ||||
Securities lending payable | 20.7 | 13.3 | ||||
Total liabilities | 353,516.4 | 343,533.3 | ||||
Equity | 10,856.1 | $ 10,989.6 | 9,922.2 | $ 9,847.4 | $ 9,296.9 | $ 7,320.6 |
Variable Interest Entity, Primary Beneficiary | ||||||
Summary of Investment Holdings [Line Items] | ||||||
Debt securities, available for sale | 1,350.7 | 1,108.9 | ||||
Debt securities, trading | 117.9 | 105.7 | ||||
Equity securities | 128.9 | 125.8 | ||||
Limited partnerships | 1,118.2 | 958.7 | ||||
Cash | 46.3 | 57.1 | ||||
Other assets | 23.8 | 10.2 | ||||
Total assets | 2,785.8 | 2,366.4 | ||||
Debt owed to non-controlling interests | 1,006.4 | 943.7 | ||||
Other liabilities | 355.2 | 200.5 | ||||
Total other liabilities | 1,361.6 | 1,144.2 | ||||
Securities lending payable | 3.3 | 1 | ||||
Total liabilities | 1,364.9 | 1,145.2 | ||||
Equity | $ 597.9 | $ 493.6 |
Investments - Rollforward of Mo
Investments - Rollforward of Mortgages Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance | $ 135,300 | $ 104,800 | $ 179,200 | $ 8,900 |
Charge offs, net of recoveries | 0 | 0 | 0 | 0 |
Additions from purchase of PCD mortgage loans | 0 | 0 | 0 | 0 |
Provision | (38,900) | 54,200 | (82,800) | 88,100 |
Balance | 96,400 | 159,000 | 96,400 | 159,000 |
Financing receivables, accrued interest receivable | 48,400 | 29,900 | 48,400 | 29,900 |
Financing receivables, accrued interest written off | 178 | 178 | ||
Cumulative effect of change in accounting principle | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 0 | 62,000 | ||
Apartment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 26,700 | 34,100 | 57,900 | 3,700 |
Charge offs, net of recoveries | 0 | 0 | 0 | 0 |
Additions from purchase of PCD mortgage loans | 0 | 0 | 0 | 0 |
Provision | (5,400) | 20,000 | (36,600) | 26,800 |
Balance | 21,300 | 54,100 | 21,300 | 54,100 |
Apartment | Cumulative effect of change in accounting principle | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 23,600 | |||
Hotel | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 33,000 | 11,400 | 33,900 | 800 |
Charge offs, net of recoveries | 0 | 0 | 0 | 0 |
Additions from purchase of PCD mortgage loans | 0 | 0 | 0 | 0 |
Provision | (17,500) | 19,800 | (18,400) | 25,400 |
Balance | 15,500 | 31,200 | 15,500 | 31,200 |
Hotel | Cumulative effect of change in accounting principle | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 5,000 | |||
Office | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 19,700 | 22,000 | 24,900 | 1,100 |
Charge offs, net of recoveries | 0 | 0 | 0 | 0 |
Additions from purchase of PCD mortgage loans | 0 | 0 | 0 | 0 |
Provision | 3,000 | 200 | (2,200) | 13,300 |
Balance | 22,700 | 22,200 | 22,700 | 22,200 |
Office | Cumulative effect of change in accounting principle | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 7,800 | |||
Retail | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 22,700 | 18,000 | 24,200 | 2,000 |
Charge offs, net of recoveries | 0 | 0 | 0 | 0 |
Additions from purchase of PCD mortgage loans | 0 | 0 | 0 | 0 |
Provision | (6,800) | 6,100 | (8,300) | 11,800 |
Balance | 15,900 | 24,100 | 15,900 | 24,100 |
Retail | Cumulative effect of change in accounting principle | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 10,300 | |||
Warehouse | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 11,800 | 19,300 | 23,800 | 1,300 |
Charge offs, net of recoveries | 0 | 0 | 0 | 0 |
Additions from purchase of PCD mortgage loans | 0 | 0 | 0 | 0 |
Provision | (1,200) | 8,100 | (13,200) | 10,800 |
Balance | 10,600 | 27,400 | 10,600 | 27,400 |
Warehouse | Cumulative effect of change in accounting principle | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance | $ 15,300 | |||
Residential Mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance | 21,400 | 14,500 | ||
Charge offs, net of recoveries | 0 | 0 | ||
Additions from purchase of PCD mortgage loans | 0 | 0 | ||
Provision | (11,000) | (4,100) | ||
Balance | $ 10,400 | $ 10,400 |
Investments - Information About
Investments - Information About Credit Quality and Vintage Year of Commercial Mortgage Loans (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 11,731.4 | $ 10,727.5 |
Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 1,486.6 | 1,412.7 |
Year two | 1,378.5 | 1,754.8 |
Year three | 1,717.3 | 1,885.6 |
Year four | 1,760.1 | 1,805.5 |
Year five | 1,489.1 | 1,414.8 |
Prior | 2,953.6 | 2,001.5 |
Revolving Loans | 4.1 | 4 |
Total | $ 10,789.3 | $ 10,278.9 |
% of Total | 100.00% | 100.00% |
Greater than 1.20x | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | $ 932.5 | $ 1,078.4 |
Year two | 903 | 1,601.7 |
Year three | 1,601.9 | 1,738 |
Year four | 1,395.9 | 1,794.4 |
Year five | 1,355.4 | 1,408.8 |
Prior | 2,689.6 | 1,880.6 |
Revolving Loans | 4.1 | 4 |
Total | $ 8,882.4 | $ 9,505.9 |
% of Total | 82.00% | 93.00% |
1.00x - 1.20x | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | $ 554.1 | $ 334.3 |
Year two | 346.7 | 137.9 |
Year three | 96.9 | 89.7 |
Year four | 90.9 | 11.1 |
Year five | 11 | 0 |
Prior | 69.1 | 88.8 |
Revolving Loans | 0 | 0 |
Total | $ 1,168.7 | $ 661.8 |
% of Total | 11.00% | 6.00% |
Less than 1.00x | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | $ 0 | $ 0 |
Year two | 128.8 | 15.2 |
Year three | 18.5 | 57.9 |
Year four | 273.3 | 0 |
Year five | 122.7 | 6 |
Prior | 194.9 | 32.1 |
Revolving Loans | 0 | 0 |
Total | $ 738.2 | $ 111.2 |
% of Total | 7.00% | 1.00% |
Less than 70% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | $ 1,167 | $ 1,346.5 |
Year two | 1,324.8 | 1,315 |
Year three | 1,347.2 | 1,752.8 |
Year four | 1,635.7 | 1,678.7 |
Year five | 1,412.7 | 1,320.5 |
Prior | 2,764.1 | 1,846.3 |
Revolving Loans | 4.1 | 4 |
Total | $ 9,655.6 | $ 9,263.8 |
% of Total | 89.00% | 90.00% |
70% - 80% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | $ 319.6 | $ 66.2 |
Year two | 53.7 | 348.1 |
Year three | 312.5 | 127.9 |
Year four | 119.6 | 80 |
Year five | 49 | 94.3 |
Prior | 179.9 | 128.5 |
Revolving Loans | 0 | 0 |
Total | $ 1,034.3 | $ 845 |
% of Total | 10.00% | 8.00% |
80% - 100% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | $ 0 | $ 0 |
Year two | 0 | 91.7 |
Year three | 42.9 | 4.9 |
Year four | 4.8 | 46.8 |
Year five | 27.4 | 0 |
Prior | 9.6 | 26.7 |
Revolving Loans | 0 | 0 |
Total | $ 84.7 | $ 170.1 |
% of Total | 1.00% | 2.00% |
Greater than 100% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | $ 0 | $ 0 |
Year two | 0 | 0 |
Year three | 14.7 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | $ 14.7 | $ 0 |
% of Total | 0.00% | 0.00% |
Investments - Mortgages by Stan
Investments - Mortgages by Standing (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 11,731.4 | $ 10,727.5 |
Restructured | 0 | 0 |
In the Process of Foreclosure | 2.7 | 0 |
In Good Standing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 11,437.5 | 10,727.5 |
Greater than 90 Days Delinquent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 291.2 | 0 |
Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 10,789.3 | 10,278.9 |
Restructured | 0 | 0 |
In the Process of Foreclosure | 0 | 0 |
Commercial mortgage loans | In Good Standing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 10,789.3 | 10,278.9 |
Commercial mortgage loans | Greater than 90 Days Delinquent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 0 | 0 |
Commercial mortgage loans | Apartment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 3,807.8 | 3,905.3 |
Restructured | 0 | 0 |
In the Process of Foreclosure | 0 | 0 |
Commercial mortgage loans | Apartment | In Good Standing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 3,807.8 | 3,905.3 |
Commercial mortgage loans | Apartment | Greater than 90 Days Delinquent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 0 | 0 |
Commercial mortgage loans | Hotel | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 1,052.3 | 882.7 |
Restructured | 0 | 0 |
In the Process of Foreclosure | 0 | 0 |
Commercial mortgage loans | Hotel | In Good Standing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 1,052.3 | 882.7 |
Commercial mortgage loans | Hotel | Greater than 90 Days Delinquent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 0 | 0 |
Commercial mortgage loans | Office | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 1,942.4 | 1,569.7 |
Restructured | 0 | 0 |
In the Process of Foreclosure | 0 | 0 |
Commercial mortgage loans | Office | In Good Standing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 1,942.4 | 1,569.7 |
Commercial mortgage loans | Office | Greater than 90 Days Delinquent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 0 | 0 |
Commercial mortgage loans | Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 2,130.8 | 1,942.4 |
Restructured | 0 | 0 |
In the Process of Foreclosure | 0 | 0 |
Commercial mortgage loans | Retail | In Good Standing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 2,130.8 | 1,942.4 |
Commercial mortgage loans | Retail | Greater than 90 Days Delinquent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 0 | 0 |
Commercial mortgage loans | Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 1,856 | 1,978.8 |
Restructured | 0 | 0 |
In the Process of Foreclosure | 0 | 0 |
Commercial mortgage loans | Warehouse | In Good Standing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 1,856 | 1,978.8 |
Commercial mortgage loans | Warehouse | Greater than 90 Days Delinquent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 0 | 0 |
Residential mortgage loans | Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 942.1 | 448.6 |
Restructured | 0 | 0 |
In the Process of Foreclosure | 2.7 | 0 |
Residential mortgage loans | Residential | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
In the Process of Foreclosure | 0.7 | |
Residential mortgage loans | Residential | In Good Standing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 648.2 | 448.6 |
Residential mortgage loans | Residential | Greater than 90 Days Delinquent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 291.2 | 0 |
Residential mortgage loans | Residential | Greater than 90 Days Delinquent | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 286.3 | |
Mezzanine loans | Apartment | In Good Standing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 206.1 | 44.6 |
Mezzanine loans | Hotel | In Good Standing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 67.7 | 33.4 |
Mezzanine loans | Office | In Good Standing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 249.3 | 116.8 |
Mezzanine loans | Retail | In Good Standing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | 26.7 | 0 |
Mezzanine loans | Warehouse | In Good Standing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 32.2 | $ 48.1 |
Derivative Instruments - Aggreg
Derivative Instruments - Aggregate Contractual Notional Amounts and Fair Values of Derivatives (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Net Amounts Presented in the Condensed Consolidated Balance Sheets | $ 1,141.9 | $ 2,219.8 |
Liabilities | ||
Fair Value | 40.4 | 56.4 |
Freestanding derivatives | ||
Assets | ||
Contractual/Notional Amount | 74,473.5 | 68,299.1 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 1,102.5 | 2,219.6 |
Liabilities | ||
Contractual/Notional Amount | 20,852.3 | 30,170.8 |
Fair Value | 39.5 | 43.1 |
Net Fair Value | 1,063 | 2,176.5 |
Freestanding derivatives | Cross-currency swaps | ||
Assets | ||
Contractual/Notional Amount | 758.8 | 1,228.1 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 37.4 | 93 |
Liabilities | ||
Contractual/Notional Amount | 1,008.6 | 516 |
Fair Value | 34.6 | 34 |
Net Fair Value | 2.8 | 59 |
Freestanding derivatives | Equity index call options | ||
Assets | ||
Contractual/Notional Amount | 20,000 | 26,300 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 135.8 | 1,127.3 |
Liabilities | ||
Contractual/Notional Amount | 0 | 0 |
Fair Value | 0 | 0 |
Net Fair Value | 135.8 | 1,127.3 |
Freestanding derivatives | Equity index futures | ||
Assets | ||
Contractual/Notional Amount | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 0 | 0 |
Liabilities | ||
Contractual/Notional Amount | 17,329.8 | 27,651 |
Fair Value | 0 | 0 |
Net Fair Value | 0 | 0 |
Freestanding derivatives | Equity index put options | ||
Assets | ||
Contractual/Notional Amount | 25,000 | 27,000 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 339 | 178 |
Liabilities | ||
Contractual/Notional Amount | 0 | 0 |
Fair Value | 0 | 0 |
Net Fair Value | 339 | 178 |
Freestanding derivatives | Interest rate swaps | ||
Assets | ||
Contractual/Notional Amount | 7,728.1 | 4,250 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 485.5 | 721.8 |
Liabilities | ||
Contractual/Notional Amount | 0 | 500 |
Fair Value | 0 | 0.9 |
Net Fair Value | 485.5 | 720.9 |
Freestanding derivatives | Interest rate swaps - cleared | ||
Assets | ||
Contractual/Notional Amount | 1,500 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 0 | 0 |
Liabilities | ||
Contractual/Notional Amount | 0 | 1,500 |
Fair Value | 0 | 8.2 |
Net Fair Value | 0 | (8.2) |
Freestanding derivatives | Put-swaptions | ||
Assets | ||
Contractual/Notional Amount | 15,500 | 1,000 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 104.8 | 99.5 |
Liabilities | ||
Contractual/Notional Amount | 2,500 | 0 |
Fair Value | 4.9 | 0 |
Net Fair Value | 99.9 | 99.5 |
Freestanding derivatives | Treasury futures | ||
Assets | ||
Contractual/Notional Amount | 3,986.6 | 8,520.5 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 0 | 0 |
Liabilities | ||
Contractual/Notional Amount | 13.9 | 3.8 |
Fair Value | 0 | 0 |
Net Fair Value | 0 | 0 |
Freestanding derivatives | Credit default swaps | ||
Assets | ||
Contractual/Notional Amount | 0.5 | |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 0 | |
Liabilities | ||
Contractual/Notional Amount | 0 | |
Fair Value | 0 | |
Net Fair Value | 0 | |
Embedded derivatives | ||
Assets | ||
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 0 | 0 |
Liabilities | ||
Fair Value | 4,531.3 | 7,076 |
Net Fair Value | (4,531.3) | (7,076) |
Embedded derivatives | Variable annuity embedded derivatives | ||
Assets | ||
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 0 | 0 |
Liabilities | ||
Fair Value | 3,091.6 | 5,592.1 |
Net Fair Value | (3,091.6) | (5,592.1) |
Embedded derivatives | Fixed index annuity embedded derivatives | ||
Assets | ||
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 0 | 0 |
Liabilities | ||
Fair Value | 1,439.7 | 1,483.9 |
Net Fair Value | (1,439.7) | (1,483.9) |
Derivatives related to funds withheld under reinsurance treaties | ||
Assets | ||
Contractual/Notional Amount | 1,009.4 | 82.7 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 39.4 | 0.2 |
Liabilities | ||
Contractual/Notional Amount | 68.9 | 769 |
Fair Value | 272.6 | 839.9 |
Net Fair Value | (233.2) | (839.7) |
Derivatives related to funds withheld under reinsurance treaties | Cross-currency swaps | ||
Assets | ||
Contractual/Notional Amount | 94.4 | 7.4 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 6.2 | 0 |
Liabilities | ||
Contractual/Notional Amount | 63.4 | 100.7 |
Fair Value | 0.8 | 5.2 |
Net Fair Value | 5.4 | (5.2) |
Derivatives related to funds withheld under reinsurance treaties | Cross-currency forwards | ||
Assets | ||
Contractual/Notional Amount | 915 | 75.3 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 33.2 | 0.2 |
Liabilities | ||
Contractual/Notional Amount | 5.5 | 668.3 |
Fair Value | 0.1 | 8.1 |
Net Fair Value | 33.1 | (7.9) |
Derivatives related to funds withheld under reinsurance treaties | Funds withheld embedded derivative | ||
Assets | ||
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 0 | 0 |
Liabilities | ||
Fair Value | 271.7 | 826.6 |
Net Fair Value | (271.7) | (826.6) |
Derivative assets | ||
Assets | ||
Contractual/Notional Amount | 75,482.9 | 68,381.8 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 1,141.9 | 2,219.8 |
Derivative liabilities | ||
Liabilities | ||
Contractual/Notional Amount | 20,921.2 | 30,939.8 |
Fair Value | 4,843.4 | 7,959 |
Derivatives | ||
Liabilities | ||
Net Fair Value | $ (3,701.5) | $ (5,739.2) |
Derivative Instruments - Gains
Derivative Instruments - Gains and Losses, and Change in Fair Value of Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | $ (1,165.3) | $ (2,339) | $ (805.2) | $ (6,165) |
Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | (1,300.5) | (2,149.4) | (1,413.4) | (5,492.2) |
Derivatives related to funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | 135.2 | (189.6) | 608.2 | (672.8) |
Cross-currency swaps | Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | (8.9) | 18.1 | (53.2) | 46.5 |
Cross-currency swaps | Derivatives related to funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | 5.7 | 0 | 11.6 | 0 |
Equity index call options | Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | 15.4 | 421.4 | 814 | 543.6 |
Equity index futures | Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | (196.3) | (3,324.2) | (2,866) | (4,391.7) |
Equity index put options | Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | (71) | (516.1) | (681.8) | 236.1 |
Interest rate swaps | Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | 0 | (29.2) | (148.2) | 661.6 |
Interest rate swaps - cleared | Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | (9.6) | 0 | (59.9) | 0 |
Put-swaptions | Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | (61.6) | (18.4) | 41.6 | 246.7 |
Cross-currency forwards | Derivatives related to funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | 28.3 | 0 | 41.7 | 0 |
Treasury futures | Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | (123.1) | (43.8) | (895.8) | 1,935 |
Treasury futures | Derivatives related to funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | 0 | 0 | 0 | (204.2) |
Fixed index annuity embedded derivatives | Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | (0.7) | (0.4) | (2.8) | 31.5 |
Variable annuity embedded derivatives | Derivatives excluding funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | (844.7) | 1,343.2 | 2,438.7 | (4,801.5) |
Funds withheld embedded derivative | Derivatives related to funds withheld under reinsurance treaties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments | $ 101.2 | $ (189.6) | $ 554.9 | $ (468.6) |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Derivative assets by counterparty | $ 1,101.4 | $ 2,184.7 |
Derivative assets, held collateral | 1,125.3 | 2,124.2 |
Derivative liabilities by counterparty | 0 | 13.1 |
Derivative liabilities, held collateral | 0.9 | 25.7 |
Derivative disbursement obligation | 23 | 0 |
Embedded derivatives | ||
Derivative [Line Items] | ||
Net fair value, derivative asset (liability) | (4,531.3) | (7,076) |
Derivatives related to funds withheld under reinsurance treaties | ||
Derivative [Line Items] | ||
Net fair value, derivative asset (liability) | (233.2) | (839.7) |
Funds withheld embedded derivative | Derivatives related to funds withheld under reinsurance treaties | ||
Derivative [Line Items] | ||
Net fair value, derivative asset (liability) | $ (271.7) | $ (826.6) |
Derivative Instruments - Gross
Derivative Instruments - Gross and Net Information About Financial Instruments Subject to Master Netting Arrangements (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Freestanding derivative assets | ||
Gross Amounts Recognized | $ 1,141.9 | $ 2,219.8 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 1,141.9 | 2,219.8 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 40.4 | 35.1 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral | 583 | 1,097.9 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Securities Collateral | 470.5 | 890 |
Net Amount | 48 | 196.8 |
Freestanding derivative liabilities | ||
Gross Amounts Recognized | 40.4 | 56.4 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Fair Value | 40.4 | 56.4 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 40.4 | 35.1 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral | 0 | 13.1 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Securities Collateral | 0 | 0 |
Net Amount | 0 | 8.2 |
Securities loaned | ||
Gross Amounts Recognized | 20.7 | 13.3 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 20.7 | 13.3 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral | 20.7 | 13.3 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Securities Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Repurchase agreements | ||
Gross Amounts Recognized | 306 | 1,100 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 306 | 1,100 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral | 0 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Securities Collateral | 306 | 1,100 |
Net Amount | 0 | 0 |
Total financial liabilities | ||
Gross Amounts Recognized | 367.1 | 1,169.7 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 367.1 | 1,169.7 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 40.4 | 35.1 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral | 20.7 | 26.4 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Securities Collateral | 306 | 1,100 |
Net Amount | $ 0 | $ 8.2 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value and Carrying Value of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Debt securities | $ 53,757.5 | $ 60,457.4 |
Equity securities | 290.1 | 193.1 |
Limited partnerships | 11.3 | 0.8 |
Policy loans | 4,511.9 | 4,523.5 |
Freestanding derivative instruments | 1,141.9 | 2,219.8 |
Cash and cash equivalents | 2,481.8 | 2,018.7 |
GMIB reinsurance recoverable | 33,752.5 | 35,269.5 |
Separate account assets | 237,096.2 | 219,062.9 |
Liabilities | ||
Other | 828.7 | 859.3 |
Funds withheld payable under reinsurance treaties (2) | 29,771.4 | 31,971.5 |
Securities loaned | 20.7 | 13.3 |
Freestanding derivative instruments | 40.4 | 56.4 |
Separate account liabilities | 237,096.2 | 219,062.9 |
Carrying Value | ||
Assets | ||
Debt securities | 53,757.5 | 60,457.4 |
Equity securities | 290.1 | 193.1 |
Mortgage loans | 11,731.4 | 10,727.5 |
Limited partnerships | 2,400.7 | 1,991.3 |
Policy loans | 4,511.9 | 4,523.5 |
Freestanding derivative instruments | 1,141.9 | 2,219.8 |
Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock | 125.4 | 125.4 |
Cash and cash equivalents | 2,481.8 | 2,018.7 |
GMIB reinsurance recoverable | 278.6 | 340.4 |
Separate account assets | 237,096.2 | 219,062.9 |
Liabilities | ||
Other | 41,543.6 | 45,638.8 |
Reserves for guaranteed investment contracts | 994.4 | 1,275.5 |
Trust instruments supported by funding agreements | 6,322.3 | 8,383.9 |
FHLB funding agreements | 1,521.8 | 1,478.4 |
Funds withheld payable under reinsurance treaties (2) | 29,771.4 | 31,971.5 |
Debt | 2,670.2 | 322 |
Securities loaned | 20.7 | 13.3 |
Freestanding derivative instruments | 40.4 | 56.4 |
Repurchase agreements | 306 | 1,100 |
FHLB advances | 0 | 380 |
Separate account liabilities | 237,096.2 | 219,062.9 |
Fair Value | ||
Assets | ||
Debt securities | 53,757.5 | 60,457.4 |
Equity securities | 290.1 | 193.1 |
Mortgage loans | 12,211.7 | 11,348.9 |
Limited partnerships | 2,400.7 | 1,991.3 |
Policy loans | 4,511.9 | 4,523.5 |
Freestanding derivative instruments | 1,141.9 | 2,219.8 |
Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock | 125.4 | 125.4 |
Cash and cash equivalents | 2,481.8 | 2,018.7 |
GMIB reinsurance recoverable | 278.6 | 340.4 |
Separate account assets | 237,096.2 | 219,062.9 |
Liabilities | ||
Other | 49,092.1 | 54,005.7 |
Reserves for guaranteed investment contracts | 1,032.8 | 1,332.1 |
Trust instruments supported by funding agreements | 6,564.2 | 8,701.8 |
FHLB funding agreements | 1,550.9 | 1,421.3 |
Funds withheld payable under reinsurance treaties (2) | 29,771.4 | 31,971.5 |
Debt | 2,746.9 | 412.3 |
Securities loaned | 20.7 | 13.3 |
Freestanding derivative instruments | 40.4 | 56.4 |
Repurchase agreements | 306 | 1,100 |
FHLB advances | 0 | 380 |
Separate account liabilities | $ 237,096.2 | $ 219,062.9 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Carried at Fair Value by Hierarchy (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Debt securities | $ 53,757.5 | $ 60,457.4 |
Equity securities | 290.1 | 193.1 |
Limited partnerships | 11.3 | 0.8 |
Policy loans | 3,487.5 | 3,454.2 |
Freestanding derivative instruments | 1,141.9 | 2,219.8 |
Cash and cash equivalents | 2,481.8 | 2,018.7 |
GMIB reinsurance recoverable | 278.6 | 340.4 |
Separate account assets | 237,096.2 | 219,062.9 |
Total | 298,544.9 | 287,747.3 |
Liabilities | ||
Embedded derivative liabilities | 4,531.3 | 7,076 |
Funds withheld payable under reinsurance treaties | 3,931.6 | 4,453.1 |
Freestanding derivative instruments | 40.4 | 56.4 |
Total | 8,503.3 | 11,585.5 |
U.S. government securities | ||
Assets | ||
Debt securities | 4,463 | 5,126 |
Other government securities | ||
Assets | ||
Debt securities | 1,562 | 1,696.9 |
Public utilities | ||
Assets | ||
Debt securities | 6,521.3 | 7,297.7 |
Corporate securities | ||
Assets | ||
Debt securities | 31,769.6 | 36,440 |
Residential mortgage-backed | ||
Assets | ||
Debt securities | 808.9 | 984.9 |
Commercial mortgage-backed | ||
Assets | ||
Debt securities | 2,834.9 | 3,322.6 |
Other asset-backed securities | ||
Assets | ||
Debt securities | 5,797.8 | 5,589.3 |
Derivatives related to funds withheld under reinsurance treaties | ||
Assets | ||
Freestanding derivative instruments | 39.4 | 0.2 |
Liabilities | ||
Freestanding derivative instruments | 272.6 | 839.9 |
Funds withheld embedded derivative | Derivatives related to funds withheld under reinsurance treaties | ||
Assets | ||
Freestanding derivative instruments | 0 | 0 |
Liabilities | ||
Freestanding derivative instruments | 271.7 | 826.6 |
Level 1 | ||
Assets | ||
Equity securities | 136.3 | 65.4 |
Limited partnerships | 0 | |
Policy loans | 0 | 0 |
Freestanding derivative instruments | 0 | 0 |
Cash and cash equivalents | 2,481.8 | 2,018.7 |
GMIB reinsurance recoverable | 0 | 0 |
Separate account assets | 0 | 0 |
Total | 7,081.1 | 7,210.1 |
Liabilities | ||
Embedded derivative liabilities | 0 | 0 |
Funds withheld payable under reinsurance treaties | 0 | 0 |
Freestanding derivative instruments | 0 | 0 |
Total | 0 | 0 |
Level 1 | U.S. government securities | ||
Assets | ||
Debt securities | 4,463 | 5,126 |
Level 1 | Other government securities | ||
Assets | ||
Debt securities | 0 | 0 |
Level 1 | Public utilities | ||
Assets | ||
Debt securities | 0 | 0 |
Level 1 | Corporate securities | ||
Assets | ||
Debt securities | 0 | 0 |
Level 1 | Residential mortgage-backed | ||
Assets | ||
Debt securities | 0 | 0 |
Level 1 | Commercial mortgage-backed | ||
Assets | ||
Debt securities | 0 | 0 |
Level 1 | Other asset-backed securities | ||
Assets | ||
Debt securities | 0 | 0 |
Level 2 | ||
Assets | ||
Equity securities | 44 | 24.1 |
Limited partnerships | 10.6 | 0 |
Policy loans | 0 | 0 |
Freestanding derivative instruments | 1,141.9 | 2,219.8 |
Cash and cash equivalents | 0 | |
GMIB reinsurance recoverable | 0 | 0 |
Separate account assets | 237,096.2 | 219,062.9 |
Total | 287,579.6 | 276,609.4 |
Liabilities | ||
Embedded derivative liabilities | 1,439.7 | 1,483.9 |
Funds withheld payable under reinsurance treaties | 0 | 0 |
Freestanding derivative instruments | 40.4 | 56.4 |
Total | 1,480.1 | 1,540.3 |
Level 2 | U.S. government securities | ||
Assets | ||
Debt securities | 0 | 0 |
Level 2 | Other government securities | ||
Assets | ||
Debt securities | 1,562 | 1,696.9 |
Level 2 | Public utilities | ||
Assets | ||
Debt securities | 6,521.3 | 7,297.7 |
Level 2 | Corporate securities | ||
Assets | ||
Debt securities | 31,762.1 | 36,411.3 |
Level 2 | Residential mortgage-backed | ||
Assets | ||
Debt securities | 808.9 | 984.9 |
Level 2 | Commercial mortgage-backed | ||
Assets | ||
Debt securities | 2,834.9 | 3,322.6 |
Level 2 | Other asset-backed securities | ||
Assets | ||
Debt securities | 5,797.7 | 5,589.2 |
Level 3 | ||
Assets | ||
Equity securities | 109.8 | 103.6 |
Limited partnerships | 0.7 | 0.8 |
Policy loans | 3,487.5 | 3,454.2 |
Freestanding derivative instruments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
GMIB reinsurance recoverable | 278.6 | 340.4 |
Separate account assets | 0 | 0 |
Total | 3,884.2 | 3,927.8 |
Liabilities | ||
Embedded derivative liabilities | 3,091.6 | 5,592.1 |
Funds withheld payable under reinsurance treaties | 3,931.6 | 4,453.1 |
Freestanding derivative instruments | 0 | 0 |
Total | 7,023.2 | 10,045.2 |
Level 3 | U.S. government securities | ||
Assets | ||
Debt securities | 0 | 0 |
Level 3 | Other government securities | ||
Assets | ||
Debt securities | 0 | 0 |
Level 3 | Public utilities | ||
Assets | ||
Debt securities | 0 | 0 |
Level 3 | Corporate securities | ||
Assets | ||
Debt securities | 7.5 | 28.7 |
Level 3 | Residential mortgage-backed | ||
Assets | ||
Debt securities | 0 | 0 |
Level 3 | Commercial mortgage-backed | ||
Assets | ||
Debt securities | 0 | 0 |
Level 3 | Other asset-backed securities | ||
Assets | ||
Debt securities | $ 0.1 | $ 0.1 |
Fair Value Measurements - Balan
Fair Value Measurements - Balances of Level 3 Assets and Liabilities Measured at Fair Value with Corresponding Price Sources (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Debt securities | $ 53,757.5 | $ 60,457.4 |
Equity securities | 290.1 | 193.1 |
Limited partnerships | 11.3 | 0.8 |
Policy loans | 4,511.9 | 4,523.5 |
GMIB reinsurance recoverable | 33,752.5 | 35,269.5 |
Total | 298,544.9 | 287,747.3 |
Liabilities | ||
Embedded derivative liabilities | 4,531.3 | 7,076 |
Funds withheld payable under reinsurance treaties (2) | 29,771.4 | 31,971.5 |
Total | 8,503.3 | 11,585.5 |
Corporate securities | ||
Assets | ||
Debt securities | 31,769.6 | 36,440 |
Other asset-backed securities | ||
Assets | ||
Debt securities | 5,797.8 | 5,589.3 |
Level 3 | ||
Assets | ||
Equity securities | 109.8 | 103.6 |
Limited partnerships | 0.7 | 0.8 |
Policy loans | 3,487.5 | 3,454.2 |
GMIB reinsurance recoverable | 278.6 | 340.4 |
Total | 3,884.2 | 3,927.8 |
Liabilities | ||
Embedded derivative liabilities | 3,091.6 | 5,592.1 |
Funds withheld payable under reinsurance treaties (2) | 3,931.6 | 4,453.1 |
Total | 7,023.2 | 10,045.2 |
Level 3 | Corporate securities | ||
Assets | ||
Debt securities | 7.5 | 28.7 |
Level 3 | Other asset-backed securities | ||
Assets | ||
Debt securities | 0.1 | 0.1 |
Level 3 | Internal | ||
Assets | ||
Equity securities | 1.2 | 1.2 |
Limited partnerships | 0.7 | 0.8 |
Policy loans | 3,487.5 | 3,454.2 |
GMIB reinsurance recoverable | 278.6 | 340.4 |
Total | 3,768.1 | 3,796.6 |
Liabilities | ||
Embedded derivative liabilities | 3,091.6 | 5,592.1 |
Funds withheld payable under reinsurance treaties (2) | 3,931.6 | 4,453.1 |
Total | 7,023.2 | 10,045.2 |
Level 3 | Internal | Corporate securities | ||
Assets | ||
Debt securities | 0 | 0 |
Level 3 | Internal | Other asset-backed securities | ||
Assets | ||
Debt securities | 0.1 | 0 |
Level 3 | External | ||
Assets | ||
Equity securities | 108.6 | 102.4 |
Limited partnerships | 0 | 0 |
Policy loans | 0 | 0 |
GMIB reinsurance recoverable | 0 | 0 |
Total | 116.1 | 131.2 |
Liabilities | ||
Embedded derivative liabilities | 0 | 0 |
Funds withheld payable under reinsurance treaties (2) | 0 | 0 |
Total | 0 | 0 |
Level 3 | External | Corporate securities | ||
Assets | ||
Debt securities | 7.5 | 28.7 |
Level 3 | External | Other asset-backed securities | ||
Assets | ||
Debt securities | $ 0 | $ 0.1 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information on Significant Internally-Priced Level 3 Assets and Liabilities (Details) $ in Millions | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMIB reinsurance recoverable | $ 33,752.5 | $ 35,269.5 |
Embedded derivative liabilities | 4,531.3 | 7,076 |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMIB reinsurance recoverable | 278.6 | 340.4 |
Embedded derivative liabilities | 3,091.6 | 5,592.1 |
Level 3 | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMIB reinsurance recoverable | 278.6 | 340.4 |
Embedded derivative liabilities | $ 3,091.6 | $ 5,592.1 |
Level 3 | Minimum | Discounted cash flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMB reinsurance recoverable, measurement input | 0.0001 | 0.0001 |
Embedded derivative liabilities, measurement input | 0.0004 | 0.0004 |
Level 3 | Minimum | Discounted cash flow | Lapse | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMB reinsurance recoverable, measurement input | 0.0333 | 0.0330 |
Embedded derivative liabilities, measurement input | 0.0016 | 0.0020 |
Level 3 | Minimum | Discounted cash flow | Utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMB reinsurance recoverable, measurement input | 0 | 0 |
Embedded derivative liabilities, measurement input | 0.0500 | 0.0500 |
Level 3 | Minimum | Discounted cash flow | Withdrawal | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMB reinsurance recoverable, measurement input | 0.0375 | 0.0375 |
Embedded derivative liabilities, measurement input | 0.5600 | 0.5600 |
Level 3 | Minimum | Discounted cash flow | Nonperformance risk | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMB reinsurance recoverable, measurement input | 0 | 0.0033 |
Embedded derivative liabilities, measurement input | 0 | 0.0033 |
Level 3 | Minimum | Discounted cash flow | Long-term Equity Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMB reinsurance recoverable, measurement input | 0.1850 | 0.1850 |
Embedded derivative liabilities, measurement input | 0.1850 | 0.1850 |
Level 3 | Maximum | Discounted cash flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMB reinsurance recoverable, measurement input | 0.2352 | 0.2352 |
Embedded derivative liabilities, measurement input | 0.2153 | 0.2153 |
Level 3 | Maximum | Discounted cash flow | Lapse | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMB reinsurance recoverable, measurement input | 0.0923 | 0.0920 |
Embedded derivative liabilities, measurement input | 0.3026 | 0.3030 |
Level 3 | Maximum | Discounted cash flow | Utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMB reinsurance recoverable, measurement input | 0.2000 | 0.2000 |
Embedded derivative liabilities, measurement input | 1 | 1 |
Level 3 | Maximum | Discounted cash flow | Withdrawal | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMB reinsurance recoverable, measurement input | 0.0450 | 0.0450 |
Embedded derivative liabilities, measurement input | 0.9475 | 0.9500 |
Level 3 | Maximum | Discounted cash flow | Nonperformance risk | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMB reinsurance recoverable, measurement input | 0.0138 | 0.0157 |
Embedded derivative liabilities, measurement input | 0.0138 | 0.0157 |
Level 3 | Maximum | Discounted cash flow | Long-term Equity Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
GMB reinsurance recoverable, measurement input | 0.2286 | 0.2247 |
Embedded derivative liabilities, measurement input | 0.2286 | 0.2247 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
FHLBI capital stock, stock price (in usd per share) | $ 100 | $ 100 | |||
Debt securities | $ 53,757.5 | $ 53,757.5 | $ 60,457.4 | ||
Transfers from Level 3 to Level 2 | 28.9 | $ 36.3 | 51.8 | $ 36.4 | |
Transfers from Level 2 to Level 3 | 2.5 | $ 7.9 | 20.7 | $ 46.8 | |
Fair value option, debt securities | 1,516.6 | 1,516.6 | 1,276.7 | ||
Variable Interest Entity, Primary Beneficiary | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair value option, debt securities | 1,350.7 | 1,350.7 | 1,108.9 | ||
Funds withheld reinsurance assets | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair value option, assets carrying amount | 3,654.3 | 3,654.3 | 3,622 | ||
Unobservable Inputs | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Debt securities | $ 2 | $ 2 | $ 2 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Rollforwards (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Purchases, Sales, Issuances and Settlements | $ 88.9 | $ (4.1) | $ 45.5 | $ (119.4) |
Embedded derivative liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value | (2,235.7) | (9,067.8) | (5,592.1) | (2,790.4) |
Total Realized/Unrealized Gains (Losses) Included in Net Income | (855.9) | 1,370.8 | 2,500.5 | (4,906.6) |
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Purchases, Sales, Issuances and Settlements | 0 | 0 | 0 | 0 |
Transfers in and/or (out of) Level 3 | 0 | 0 | 0 | 0 |
Fair Value | (3,091.6) | (7,697) | (3,091.6) | (7,697) |
Funds withheld payable under reinsurance treaties | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value | (4,081.5) | (4,055.3) | (4,453.1) | (3,760.3) |
Total Realized/Unrealized Gains (Losses) Included in Net Income | 235.6 | 885.6 | 565.3 | 483.4 |
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | 0.5 | 1.3 | 2.3 | (0.1) |
Purchases, Sales, Issuances and Settlements | (86.2) | 16.4 | (46.1) | 125 |
Transfers in and/or (out of) Level 3 | 0 | 0 | 0 | 0 |
Fair Value | (3,931.6) | (3,152) | (3,931.6) | (3,152) |
Debt securities | Corporate securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value | 31.2 | 50.9 | 28.7 | 0 |
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | 5 | 1.8 | (0.3) |
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Purchases, Sales, Issuances and Settlements | 2.7 | 13.4 | 8.4 | 30.7 |
Transfers in and/or (out of) Level 3 | (26.4) | (28.4) | (31.4) | 10.5 |
Fair Value | 7.5 | 40.9 | 7.5 | 40.9 |
Debt securities | Other asset-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value | 0.1 | 0.1 | ||
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | 0 | ||
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | ||
Purchases, Sales, Issuances and Settlements | 0 | 0 | ||
Transfers in and/or (out of) Level 3 | 0 | 0 | ||
Fair Value | 0.1 | 0.1 | ||
Equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value | 103.2 | 118.8 | 103.6 | 182.9 |
Total Realized/Unrealized Gains (Losses) Included in Net Income | 6 | 1 | 12.8 | (32.1) |
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Purchases, Sales, Issuances and Settlements | 0.6 | (0.3) | (6.9) | (31.2) |
Transfers in and/or (out of) Level 3 | 0 | 0 | 0.3 | (0.1) |
Fair Value | 109.8 | 119.5 | 109.8 | 119.5 |
Limited partnerships | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value | 0.7 | 0.9 | 0.8 | 1.1 |
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | 0 | 0 | (0.2) |
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Purchases, Sales, Issuances and Settlements | 0 | (0.1) | (0.1) | (0.1) |
Transfers in and/or (out of) Level 3 | 0 | 0 | 0 | 0 |
Fair Value | 0.7 | 0.8 | 0.7 | 0.8 |
GMIB reinsurance recoverable | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value | 267.2 | 435.5 | 340.4 | 302.8 |
Total Realized/Unrealized Gains (Losses) Included in Net Income | 11.4 | (27.6) | (61.8) | 105.1 |
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Purchases, Sales, Issuances and Settlements | 0 | 0 | 0 | 0 |
Transfers in and/or (out of) Level 3 | 0 | 0 | 0 | 0 |
Fair Value | 278.6 | 407.9 | 278.6 | 407.9 |
Policy Loans | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value | 3,537.8 | 3,605 | 3,454.2 | 3,585.8 |
Total Realized/Unrealized Gains (Losses) Included in Net Income | (135.9) | (140.2) | (10.8) | (19.3) |
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Purchases, Sales, Issuances and Settlements | 85.6 | (17.1) | 44.1 | (118.8) |
Transfers in and/or (out of) Level 3 | 0 | 0 | 0 | 0 |
Fair Value | $ 3,487.5 | $ 3,447.7 | $ 3,487.5 | $ 3,447.7 |
Fair Value Measurements - Purch
Fair Value Measurements - Purchases, Sales, Issuances and Settlements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract] | ||||
Purchases | $ 3.5 | $ 30.3 | $ 9.6 | $ 51.5 |
Sales | (0.2) | (17.3) | (8.2) | (52.1) |
Issuances | 155.4 | 153.6 | 191.6 | 205.3 |
Settlements | (69.8) | (170.7) | (147.5) | (324.1) |
Total | 88.9 | (4.1) | 45.5 | (119.4) |
Funds withheld payable under reinsurance treaties | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, (Sales), Issuances, (Settlements) [Abstract] | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (187) | (158.4) | (398.2) | (211.2) |
Settlements | 100.8 | 174.8 | 352.1 | 336.2 |
Total | (86.2) | 16.4 | (46.1) | 125 |
Debt securities | Corporate securities | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract] | ||||
Purchases | 2.7 | 30.3 | 8.8 | 49.9 |
Sales | 0 | (16.9) | (0.4) | (19.2) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Total | 2.7 | 13.4 | 8.4 | 30.7 |
Equity securities | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract] | ||||
Purchases | 0.8 | 0 | 0.8 | 1.6 |
Sales | (0.2) | (0.3) | (7.7) | (32.8) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Total | 0.6 | (0.3) | (6.9) | (31.2) |
Limited partnerships | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract] | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | (0.1) | (0.1) | (0.1) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Total | 0 | (0.1) | (0.1) | (0.1) |
Policy Loans | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract] | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 155.4 | 153.6 | 191.6 | 205.3 |
Settlements | (69.8) | (170.7) | (147.5) | (324.1) |
Total | $ 85.6 | $ (17.1) | $ 44.1 | $ (118.8) |
Fair Value Measurements - Gains
Fair Value Measurements - Gains (Losses) by Location (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Embedded derivatives | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Included in Net Income | $ (855.9) | $ 1,370.8 | $ 2,500.5 | $ (4,906.6) |
Included in OCI | 0 | 0 | 0 | 0 |
Funds withheld payable under reinsurance treaties | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Included in Net Income | 109.8 | 763.9 | 565.3 | 483.4 |
Included in OCI | 0 | 0 | 0 | 0 |
Debt securities | Corporate securities | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Included in Net Income | 0.1 | 4.8 | 1.8 | (0.5) |
Included in OCI | 0 | 0 | 0 | 0 |
Equity securities | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Included in Net Income | 6 | 1 | 12.8 | (32.1) |
Included in OCI | 0 | 0 | 0 | 0 |
Limited partnerships | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Included in Net Income | 0 | 0 | 0 | (0.2) |
Included in OCI | 0 | 0 | 0 | 0 |
GMIB reinsurance recoverable | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Included in Net Income | 11.4 | (27.6) | (61.8) | 105.1 |
Included in OCI | 0 | 0 | 0 | 0 |
Funds withheld reinsurance assets | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Included in Net Income | (135.9) | (140.2) | (10.8) | (19.3) |
Included in OCI | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Not Reported at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Policy loans | $ 4,511.9 | $ 4,523.5 |
Liabilities | ||
Other | 828.7 | 859.3 |
Funds withheld payable under reinsurance treaties (2) | 29,771.4 | 31,971.5 |
Securities loaned | 20.7 | 13.3 |
Separate account liabilities | 237,096.2 | 219,062.9 |
Level 3 | ||
Assets | ||
Policy loans | 3,487.5 | 3,454.2 |
Liabilities | ||
Funds withheld payable under reinsurance treaties (2) | 3,931.6 | 4,453.1 |
Carrying Value | ||
Assets | ||
Mortgage loans | 11,731.4 | 10,727.5 |
Policy loans | 4,511.9 | 4,523.5 |
FHLBI capital stock | 125.4 | 125.4 |
Liabilities | ||
Other | 41,543.6 | 45,638.8 |
Reserves for guaranteed investment contracts | 994.4 | 1,275.5 |
Trust instruments supported by funding agreements | 6,322.3 | 8,383.9 |
FHLB funding agreements | 1,521.8 | 1,478.4 |
Funds withheld payable under reinsurance treaties (2) | 29,771.4 | 31,971.5 |
Debt | 2,670.2 | 322 |
Securities loaned | 20.7 | 13.3 |
FHLB advances | 0 | 380 |
Repurchase agreements | 306 | 1,100 |
Separate account liabilities | 237,096.2 | 219,062.9 |
Carrying Value | Level 3 | ||
Assets | ||
Mortgage loans | 11,731.4 | 10,727.5 |
Policy loans | 1,024.4 | 1,069.3 |
Liabilities | ||
Other | 37,012.3 | 38,562.8 |
Reserves for guaranteed investment contracts | 994.4 | 1,275.5 |
Trust instruments supported by funding agreements | 6,322.3 | 8,383.9 |
FHLB funding agreements | 1,521.8 | 1,478.4 |
Carrying Value | Level 1 | ||
Assets | ||
FHLBI capital stock | 125.4 | 125.4 |
Carrying Value | Level 2 | ||
Liabilities | ||
Funds withheld payable under reinsurance treaties (2) | 25,839.7 | 27,518.4 |
Debt | 2,670.2 | 322 |
Securities loaned | 20.7 | 13.3 |
FHLB advances | 0 | 380 |
Repurchase agreements | 306 | 1,100 |
Separate account liabilities | 237,096.2 | 219,062.9 |
Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 12,211.7 | 11,348.9 |
Policy loans | 1,024.4 | 1,069.3 |
Liabilities | ||
Other | 44,560.8 | 46,929.7 |
Reserves for guaranteed investment contracts | 1,032.8 | 1,332.1 |
Trust instruments supported by funding agreements | 6,564.2 | 8,701.8 |
FHLB funding agreements | 1,550.9 | 1,421.3 |
Fair Value | Level 1 | ||
Assets | ||
FHLBI capital stock | 125.4 | 125.4 |
Fair Value | Level 2 | ||
Liabilities | ||
Funds withheld payable under reinsurance treaties (2) | 25,839.7 | 27,518.4 |
Debt | 2,746.9 | 412.3 |
Securities loaned | 20.7 | 13.3 |
FHLB advances | 0 | 380 |
Repurchase agreements | 306 | 1,100 |
Separate account liabilities | $ 237,096.2 | $ 219,062.9 |
Deferred Acquisition Costs (Det
Deferred Acquisition Costs (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | $ 13,897 | $ 12,336.8 |
Deferrals of acquisition costs | 592.1 | 537.7 |
Amortization | (551.1) | 854.4 |
Write-off of amortization related to Athene transaction | 0 | (625.8) |
Unrealized investment (gains) losses | 78.8 | 271.2 |
Balance, end of period | $ 14,016.8 | $ 13,374.3 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) $ in Millions | Jun. 18, 2020USD ($) | Jun. 01, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)treaty | Dec. 31, 2020USD ($) |
Athene | Letter of credit | |||||
Effects of Reinsurance [Line Items] | |||||
Maximum borrowing capacity | $ 1,200 | ||||
Trust account assets | $ 260 | ||||
Athene | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance quota share basis | 100.00% | ||||
Reinsurance agreement, ceding commission | $ 1,200 | ||||
Reserves established | $ 25,600 | ||||
Reinsurance agreement, ceded premium | $ 6.3 | ||||
Reinsurance agreement, decrease in ceding commission | $ 28.5 | ||||
Assets held as collateral | $ 29,800 | $ 28,300 | |||
SRZ | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance quota share basis | 100.00% | ||||
Number of retro treaties | treaty | 3 |
Reinsurance - Assets and Liabil
Reinsurance - Assets and Liabilities Held in Support of Reserves (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Total assets, net | $ 29,638.7 | $ 31,859.9 |
Liabilities | ||
Total liabilities | 29,771.4 | 31,971.5 |
Derivatives related to funds withheld under reinsurance treaties | ||
Liabilities | ||
Net fair value, derivative asset (liability) | (233.2) | (839.7) |
Funds withheld embedded derivative | Derivatives related to funds withheld under reinsurance treaties | ||
Liabilities | ||
Net fair value, derivative asset (liability) | (271.7) | (826.6) |
Debt securities | ||
Assets | ||
Total assets, net | 20,617.7 | 24,642.4 |
Equity securities | ||
Assets | ||
Total assets, net | 128.5 | 42.2 |
Mortgage loans | ||
Assets | ||
Total assets, net | 4,713.1 | 2,985.5 |
Policy Loans | ||
Assets | ||
Total assets, net | 3,503.9 | 3,470.8 |
Derivative instruments, net | ||
Assets | ||
Total assets, net | 38.4 | (13.1) |
Limited partnerships | ||
Assets | ||
Total assets, net | 537.8 | 124.9 |
Cash and cash equivalents | ||
Assets | ||
Total assets, net | 383.5 | 394.1 |
Accrued investment income | ||
Assets | ||
Total assets, net | 171.4 | 190.3 |
Other assets and liabilities, net | ||
Assets | ||
Total assets, net | (455.6) | 22.8 |
Funds held under reinsurance treaties | ||
Liabilities | ||
Total liabilities | $ 29,771.4 | $ 31,971.5 |
Reinsurance - Sources of Income
Reinsurance - Sources of Income Related to Funds Withheld Under Reinsurance Treaties (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Effects of Reinsurance [Line Items] | ||||
Other investment expenses on funds withheld assets | $ (12.8) | $ (35.5) | $ (80) | $ (66.4) |
Net investment income | 852 | 881.4 | 2,575.6 | 2,105.6 |
Funds withheld reinsurance assets | ||||
Effects of Reinsurance [Line Items] | ||||
Total investment income on funds withheld assets | 325.9 | 305.7 | 966.3 | 542.7 |
Other investment expenses on funds withheld assets | (26.3) | (28.6) | (81.8) | (36.7) |
Net investment income | 299.6 | 277.1 | 884.5 | 506 |
Debt securities | Funds withheld reinsurance assets | ||||
Effects of Reinsurance [Line Items] | ||||
Total investment income on funds withheld assets | 183.5 | 210.2 | 581 | 282.1 |
Equity securities | Funds withheld reinsurance assets | ||||
Effects of Reinsurance [Line Items] | ||||
Total investment income on funds withheld assets | 1 | 0.7 | 3.4 | 0.7 |
Mortgage loans | Funds withheld reinsurance assets | ||||
Effects of Reinsurance [Line Items] | ||||
Total investment income on funds withheld assets | 49.3 | 14.1 | 127.3 | 24.6 |
Policy Loans | Funds withheld reinsurance assets | ||||
Effects of Reinsurance [Line Items] | ||||
Total investment income on funds withheld assets | 76 | 79.3 | 237.7 | 233.8 |
Limited partnerships | Funds withheld reinsurance assets | ||||
Effects of Reinsurance [Line Items] | ||||
Total investment income on funds withheld assets | 16.1 | 0 | 16.7 | 0 |
Other investments | Funds withheld reinsurance assets | ||||
Effects of Reinsurance [Line Items] | ||||
Total investment income on funds withheld assets | $ 0 | $ 1.4 | $ 0.2 | $ 1.5 |
Reinsurance - Gains and Losses
Reinsurance - Gains and Losses on Funds Withheld Reinsurance Treaties (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Available-for-sale securities | ||||
Realized gains on sale | $ 28.3 | $ 99.2 | $ 149.1 | $ 519.2 |
Realized losses on sale | (1.3) | (2.7) | (59) | (186.4) |
Credit loss expense | (0.7) | 0 | (1.9) | (17.5) |
Credit loss expense on mortgage loans | 38.9 | (54.2) | 82.8 | (88.1) |
Net gains (losses) on derivative instruments | (1,413.4) | (5,492.2) | ||
Net gains (losses) on funds withheld payable under reinsurance treaties | 15.1 | 790.3 | ||
Embedded derivative gain (loss) | (1,165.3) | (2,339) | (805.2) | (6,165) |
Funds withheld reinsurance assets | ||||
Available-for-sale securities | ||||
Realized gains on sale | 80.7 | 52.6 | 339 | 1,650.7 |
Realized losses on sale | (1.4) | (3.6) | (14.2) | (5.8) |
Credit loss expense | (1) | 0 | (1.5) | 0 |
Gross impairments | 0 | 0 | 0 | (1.6) |
Credit loss expense on mortgage loans | 25.5 | (4.7) | 20.9 | (22.4) |
Other | (19.8) | 0 | (31.9) | 0 |
Net gains (losses) on non-derivative investments | 84 | 44.3 | 312.3 | 1,620.9 |
Net gains (losses) on derivative instruments | 34 | 0 | 53.3 | (204.2) |
Net gains (losses) on funds withheld payable under reinsurance treaties | (233.2) | (422.7) | (350.5) | (626.4) |
Total net gains (losses) on derivatives and investments | (115.2) | (378.4) | 15.1 | 790.3 |
Derivatives related to funds withheld under reinsurance treaties | ||||
Available-for-sale securities | ||||
Total net gains (losses) on derivatives and investments | (115.2) | (378.4) | 15.1 | 790.3 |
Embedded derivative gain (loss) | 135.2 | (189.6) | 608.2 | (672.8) |
Derivatives related to funds withheld under reinsurance treaties | Funds withheld embedded derivative | ||||
Available-for-sale securities | ||||
Embedded derivative gain (loss) | $ 101.2 | $ (189.6) | $ 554.9 | $ (468.6) |
Reinsurance - Components of Rei
Reinsurance - Components of Reinsurance Recoverable (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Reserves: | ||
Claims liability and other | $ 864.6 | $ 860.8 |
Total | 33,752.5 | 35,269.5 |
Guaranteed minimum income benefits | ||
Reserves: | ||
Reserves | 278.6 | 340.3 |
Other annuity benefits | ||
Reserves: | ||
Reserves | 26,176.9 | 27,535.8 |
Life | ||
Reserves: | ||
Reserves | 5,878.4 | 5,963.9 |
Accident and health | ||
Reserves: | ||
Reserves | $ 554 | $ 568.7 |
Reserves for Future Policy Be_3
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Reserves for Future Policy Benefits and Claims Payable Balances (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Insurance [Abstract] | ||
Traditional life | $ 4,276 | $ 4,535.3 |
Guaranteed benefits | 6,039 | 8,508.5 |
Claims payable | 1,042 | 1,109.5 |
Accident and health | 1,242.2 | 1,257.2 |
Group payout annuities | 4,971.4 | 5,220.3 |
Other | 828.7 | 859.3 |
Total | $ 18,399.3 | $ 21,490.1 |
Reserves for Future Policy Be_4
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Liabilities for Other Contract Holder Funds Balances (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Separate Account Investment [Line Items] | ||
Total | $ 237,096.2 | $ 219,062.9 |
Embedded derivative liabilities | 4,531.3 | 7,076 |
Other contract holder funds | ||
Fair Value, Separate Account Investment [Line Items] | ||
Total | 60,465.9 | 64,538.4 |
Other contract holder funds | Interest-sensitive life | ||
Fair Value, Separate Account Investment [Line Items] | ||
Total | 11,651.8 | 11,835.5 |
Other contract holder funds | Variable annuity fixed option | ||
Fair Value, Separate Account Investment [Line Items] | ||
Total | 10,340.4 | 10,609.6 |
Other contract holder funds | Fixed annuity | ||
Fair Value, Separate Account Investment [Line Items] | ||
Total | 16,087.8 | 16,746.3 |
Other contract holder funds | Fixed index annuity | ||
Fair Value, Separate Account Investment [Line Items] | ||
Total | 13,547.4 | 14,209.2 |
Embedded derivative liabilities | 1,439.7 | 1,483.9 |
Other contract holder funds | GICs, funding agreements and FHLB advances | ||
Fair Value, Separate Account Investment [Line Items] | ||
Total | $ 8,838.5 | $ 11,137.8 |
Reserves for Future Policy Be_5
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Debt carrying value | $ 1,068.5 | $ 322 |
FHLBI stock | 125.4 | 125.4 |
Funding agreements | 1,600 | 1,900 |
Medium term notes | Global Medium Term Note | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Debt face amount | 23,000 | |
Debt carrying value | $ 6,300 | $ 8,400 |
Interest-sensitive life | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Percentage of account values correspond to crediting rates that are at minimum guaranteed interest rates | 80.00% | 80.00% |
Interest-sensitive life | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum guaranteed rates | 2.50% | |
Interest-sensitive life | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum guaranteed rates | 6.00% | |
Interest-sensitive life | Average | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum guaranteed rates | 4.68% | |
Fixed annuity | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum guaranteed rates | 1.00% | |
Fixed annuity | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum guaranteed rates | 5.50% | |
Fixed annuity | Average | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum guaranteed rates | 2.01% | |
Annuity | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Percentage of account values correspond to crediting rates that are at minimum guaranteed interest rates | 95.00% | 95.00% |
Reserves for Future Policy Be_6
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Distribution of Fixed Rate Annuities' Account Values (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Effects of Reinsurance [Line Items] | ||
Subtotal | $ 12,496.2 | $ 12,744.5 |
Ceded reinsurance | 25,439.3 | 26,775.8 |
Total | 37,935.5 | 39,520.3 |
1.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 6,635.6 | 6,758.2 |
>1.0% - 2.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 283.7 | 301.7 |
>2.0% - 3.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 4,624.7 | 4,708.6 |
>3.0% - 4.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 602.5 | 622.5 |
>4.0% - 5.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 277.7 | 280.3 |
>5.0% - 5.5% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 72 | 73.2 |
Fixed annuity | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 2,281.6 | 2,293.5 |
Ceded reinsurance | 12,330 | 12,923.7 |
Total | 14,611.6 | 15,217.2 |
Fixed annuity | 1.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 140 | 92.1 |
Fixed annuity | >1.0% - 2.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 58.1 | 63.3 |
Fixed annuity | >2.0% - 3.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 1,131.3 | 1,162.1 |
Fixed annuity | >3.0% - 4.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 602.5 | 622.5 |
Fixed annuity | >4.0% - 5.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 277.7 | 280.3 |
Fixed annuity | >5.0% - 5.5% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 72 | 73.2 |
Fixed index annuity | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 438.3 | 357.1 |
Ceded reinsurance | 13,109.3 | 13,852.1 |
Total | 13,547.6 | 14,209.2 |
Fixed index annuity | 1.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 253.9 | 164.5 |
Fixed index annuity | >1.0% - 2.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 1.4 | 2.7 |
Fixed index annuity | >2.0% - 3.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 183 | 189.9 |
Fixed index annuity | >3.0% - 4.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 0 | 0 |
Fixed index annuity | >4.0% - 5.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 0 | 0 |
Fixed index annuity | >5.0% - 5.5% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 0 | 0 |
Variable annuity fixed option | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 9,776.3 | 10,093.9 |
Ceded reinsurance | 0 | 0 |
Total | 9,776.3 | 10,093.9 |
Variable annuity fixed option | 1.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 6,241.7 | 6,501.6 |
Variable annuity fixed option | >1.0% - 2.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 224.2 | 235.7 |
Variable annuity fixed option | >2.0% - 3.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 3,310.4 | 3,356.6 |
Variable annuity fixed option | >3.0% - 4.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 0 | 0 |
Variable annuity fixed option | >4.0% - 5.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 0 | 0 |
Variable annuity fixed option | >5.0% - 5.5% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | $ 0 | $ 0 |
Reserves for Future Policy Be_7
Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Distribution of Interest Sensitive Life Business Account Values (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Effects of Reinsurance [Line Items] | ||
Subtotal | $ 7,405.6 | $ 7,621.9 |
Retro treaties | 4,246.2 | 4,213.6 |
Total | 11,651.8 | 11,835.5 |
>2.0% - 3.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 254.8 | 269.6 |
>3.0% - 4.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 2,753.8 | 2,819.5 |
>4.0% - 5.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | 2,412.1 | 2,488.2 |
>5.0% - 6.0% | ||
Effects of Reinsurance [Line Items] | ||
Subtotal | $ 1,984.9 | $ 2,044.6 |
Certain Nontraditional Long-D_3
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - Net Amount at Risk (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Compound interest rate based on simple interest rate of 5% | 4.10% | |
Compound interest rate based on simple interest rate of 8% | 6.00% | |
Compound interest rate typical period | 10 years | |
GMDB | Return of net deposits plus a minimum return | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | $ 184,766.9 | $ 170,510.2 |
Net Amount at Risk | $ 2,286.5 | $ 2,339.5 |
Weighted Average Attained Age | 68 years 7 months 6 days | 67 years 3 months 18 days |
GMDB | Highest specified anniversary account value minus withdrawals post-anniversary | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | $ 14,223.6 | $ 13,511.9 |
Net Amount at Risk | $ 301.1 | $ 86.1 |
Weighted Average Attained Age | 69 years 8 months 12 days | 68 years 3 months 18 days |
GMDB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | $ 9,475.4 | $ 8,890.8 |
Net Amount at Risk | $ 695.6 | $ 614.8 |
Weighted Average Attained Age | 71 years 9 months 18 days | 70 years 6 months |
GMDB | Minimum | Return of net deposits plus a minimum return | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | 0.00% |
GMDB | Minimum | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | 0.00% |
GMDB | Maximum | Return of net deposits plus a minimum return | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 6.00% | 6.00% |
GMDB | Maximum | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 6.00% | 6.00% |
GMIB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | $ 1,638.3 | $ 1,675.3 |
Net Amount at Risk | $ 496.6 | $ 555.5 |
Average Period until Expected Annuitization | 6 months | 6 months |
GMIB | Minimum | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | 0.00% |
GMIB | Maximum | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 6.00% | 6.00% |
GMWB - Premium only | Return of net deposits plus a minimum return | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | 0.00% |
Account Value | $ 2,883.1 | $ 2,858.1 |
Net Amount at Risk | 9.9 | 11.7 |
GMWB - Highest anniversary only | Highest specified anniversary account value minus withdrawals post-anniversary | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | 3,728.2 | 3,459.2 |
Net Amount at Risk | 69.8 | 41.1 |
GMWB | Return of net deposits plus a minimum return | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | 239.2 | 247.5 |
Net Amount at Risk | 8.9 | 10.8 |
GMWB | Highest specified anniversary account value minus withdrawals post-anniversary | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | 633.5 | 646 |
Net Amount at Risk | 47.8 | 55.4 |
GMWB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account Value | 172,918.5 | 159,856.9 |
Net Amount at Risk | $ 5,775.1 | $ 5,655.7 |
GMWB | Minimum | Return of net deposits plus a minimum return | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | 0.00% |
GMWB | Minimum | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | 0.00% |
GMWB | Maximum | Return of net deposits plus a minimum return | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 5.00% | 5.00% |
GMWB | Maximum | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 8.00% | 8.00% |
GMAB - Premium only | Return of net deposits plus a minimum return | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Minimum Return | 0.00% | 0.00% |
Account Value | $ 0 | $ 39.4 |
Net Amount at Risk | $ 0 | $ 0 |
Certain Nontraditional Long-D_4
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - Separate Account Balances (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Separate Account Investment [Line Items] | ||
Total | $ 209,135.8 | $ 193,903.6 |
Equity | ||
Fair Value, Separate Account Investment [Line Items] | ||
Total | 145,386.1 | 132,213 |
Bond | ||
Fair Value, Separate Account Investment [Line Items] | ||
Total | 20,211.3 | 20,202.9 |
Balanced | ||
Fair Value, Separate Account Investment [Line Items] | ||
Total | 41,708.4 | 39,626.1 |
Money market | ||
Fair Value, Separate Account Investment [Line Items] | ||
Total | $ 1,830 | $ 1,861.6 |
Certain Nontraditional Long-D_5
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - GMDB Liabilities in the General Account (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||
Balance | $ 1,418.3 | $ 1,282.9 |
Incurred guaranteed benefits | 173.4 | 315 |
Paid guaranteed benefits | (78.3) | (110) |
Balance | $ 1,513.4 | $ 1,487.9 |
Certain Nontraditional Long-D_6
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
GMWB reserve liability | $ 3,091.6 | $ 5,592.1 |
GMWB with guaranteed payments reserve liability | 196.6 | 181.3 |
Lifetime income rider liability | $ 30.4 | $ 18.1 |
GMDB | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Investment performance rate | 7.15% | 7.15% |
GMDB | Discount Rate Period, 2020 And Later Issues | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Discount rate | 7.15% | 7.15% |
GMDB | Discount Rate Period, 2013 Through 2019 Issues | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Discount rate | 7.40% | 7.40% |
GMDB | Discount Rate Period, 2012 And Prior Issues | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Discount rate | 8.40% | |
GMDB | Minimum | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Mortality rate | 38.00% | 38.00% |
Lapse rate | 0.30% | 0.30% |
GMDB | Maximum | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Mortality rate | 100.00% | 100.00% |
Lapse rate | 27.90% | 27.90% |
GMIB | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
GMIB reserves before reinsurance | $ 82.3 | $ 86.9 |
Insurance benefits | Minimum | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Discount rate | 3.00% | 3.00% |
Insurance benefits | Maximum | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Discount rate | 5.50% | 5.50% |
Certain Nontraditional Long-D_7
Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - Insurance and Annuitization Benefits (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | $ 1,513.4 | $ 1,418.3 | $ 1,487.9 | $ 1,282.9 |
Insurance benefits | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | 939.6 | 939.6 | ||
Net Amount at Risk | $ 18,641.4 | $ 19,483 | ||
Weighted Average Attained Age | 63 years 10 months 24 days | 63 years 6 months | ||
Account balance adjustments | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | $ 138.7 | $ 133.6 |
Short-Term and Long-Term Debt -
Short-Term and Long-Term Debt - Carrying Values (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||
Short-term debt | $ 1,601.7 | $ 0 |
Total long-term debt | 1,068.5 | 322 |
Term loan due 2022 | Term loan | ||
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||
Short-term debt | 1,601.7 | 0 |
Term loan due 2023 | Term loan | ||
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||
Total long-term debt | 750.8 | 0 |
Surplus notes | ||
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||
Total long-term debt | 249.7 | 249.7 |
FHLBI bank loans | ||
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||
Total long-term debt | $ 68 | $ 72.3 |
Short-Term and Long-Term Debt_2
Short-Term and Long-Term Debt - Narrative (Details) - USD ($) | Sep. 10, 2021 | Nov. 07, 2019 | Nov. 06, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 22, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 24, 2020 | Mar. 15, 1997 |
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||||||||||||||
Aggregate principal amount borrowed | $ 2,350,000,000 | |||||||||||||
Short-term debt | $ 1,601,700,000 | $ 1,601,700,000 | $ 0 | |||||||||||
Collateral carrying value | 92,700,000 | $ 92,700,000 | ||||||||||||
Dividend payment | $ 350,000,000 | |||||||||||||
Surplus notes | ||||||||||||||
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||||||||||||||
Debt face amount | $ 2,000,000,000 | |||||||||||||
Note payable | ||||||||||||||
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||||||||||||||
Debt face amount | $ 350,000,000 | $ 350,000,000 | ||||||||||||
Interest expense | $ 0 | $ 3,600,000 | ||||||||||||
Note payable | London Interbank Offered Rate (LIBOR) | ||||||||||||||
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||||||||||||||
Basis spread on variable interest rate | 0.20% | |||||||||||||
FHLBI bank loans | ||||||||||||||
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||||||||||||||
Loans received | $ 50,000,000 | $ 50,000,000 | ||||||||||||
Weighted average interest rate | 0.10% | 0.58% | ||||||||||||
Short-term debt | 68,100,000 | $ 68,100,000 | 72,300,000 | |||||||||||
Surplus notes due 2027 | Surplus notes | ||||||||||||||
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||||||||||||||
Stated interest rate | 8.15% | |||||||||||||
Debt face amount | $ 250,000,000 | |||||||||||||
Interest expense | 5,100,000 | 5,200,000 | 15,300,000 | $ 15,400,000 | ||||||||||
Surplus notes due 2059 | ||||||||||||||
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||||||||||||||
Return of capital payment | $ 2,000,000,000 | |||||||||||||
Surplus notes due 2059 | Surplus notes | ||||||||||||||
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||||||||||||||
Stated interest rate | 4.50% | |||||||||||||
Debt face amount | $ 2,000,000,000 | |||||||||||||
Interest expense | $ 0 | $ 41,000,000 | ||||||||||||
Revolving credit facility | ||||||||||||||
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||||||||||
Term loan | Term loan due 2022 | ||||||||||||||
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||||||||||||||
Maximum borrowing capacity | 1,700,000,000 | |||||||||||||
Aggregate principal amount borrowed | 1,600,000,000 | |||||||||||||
Short-term debt | $ 1,601,700,000 | $ 1,601,700,000 | $ 0 | |||||||||||
Term loan | Term loan due 2023 | ||||||||||||||
Schedule of Long Term and Short Term Debt Instruments [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||||||||||
Aggregate principal amount borrowed | $ 750,000,000 |
Short-Term and Long-Term Debt_3
Short-Term and Long-Term Debt - Maturity (Details) $ in Millions | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
Due in less than 1 year | $ 1,601.7 |
Due in more than 1 to 5 years | 750.8 |
Due after 5 years | 317.7 |
Total | $ 2,670.2 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Federal Home Loan Bank advances | $ 0 | $ 380 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||||
Income tax expense (benefit) | $ (16.4) | $ (157) | $ 514.7 | $ (580.8) | |
Effective income tax rate | (8.60%) | 28.30% | 16.50% | 25.40% | 34.30% |
CARES Act | |||||
Income Tax Contingency [Line Items] | |||||
Income tax expense (benefit) | $ (19) | $ (35.3) |
Segment Information - Segment R
Segment Information - Segment Results (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 3 | |||
Segment Reporting Information [Line Items] | ||||
Fee income | $ 1,961.9 | $ 1,666.5 | $ 5,673.5 | $ 4,847.9 |
Premium | 35.1 | 46.5 | 100.3 | 134 |
Net investment income | 852 | 881.4 | 2,575.6 | 2,105.6 |
Net gains (losses) on derivatives and investments | (1,379.3) | (2,504.8) | (1,194.4) | (4,517.7) |
Other income | 16.6 | 21.5 | 70.2 | 35.6 |
Total revenues | 1,486.3 | 111.1 | 7,225.2 | 2,605.4 |
Death, other policy benefits and change in policy reserves, net of deferrals | 394.1 | 224.2 | 887.1 | 1,071.4 |
Interest credited on other contract holder funds, net of deferrals | 216.6 | 230.3 | 656.6 | 979.3 |
Interest expense | 6.3 | 7.8 | 19 | 81 |
Operating costs and other expenses, net of deferrals | 613.6 | 573.3 | 1,811.5 | 367.2 |
Amortization of deferred acquisition and sales inducement costs | 4 | (398.8) | 552.3 | (85.8) |
Total benefits and expenses | 1,234.6 | 643 | 3,926.5 | 4,933.2 |
Pretax income (loss) before noncontrolling interests | 251.7 | (531.9) | 3,298.7 | (2,327.8) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Fee income | 1,230.7 | 1,029.7 | 3,563.6 | 2,980 |
Premium | 38.2 | 49.7 | 109.5 | 143.6 |
Net investment income | 487.4 | 491.9 | 1,470.4 | 1,613.6 |
Net gains (losses) on derivatives and investments | 38.5 | 38.2 | 117.2 | 90.2 |
Other income | 16.6 | 21.5 | 70.2 | 35.6 |
Total revenues | 1,811.4 | 1,631 | 5,330.9 | 4,863 |
Death, other policy benefits and change in policy reserves, net of deferrals | 242.8 | 259.4 | 673 | 682.7 |
Interest credited on other contract holder funds, net of deferrals | 216.6 | 230.3 | 656.6 | 979.3 |
Interest expense | 6.3 | 7.8 | 19 | 81 |
Operating costs and other expenses, net of deferrals | 601.1 | 537.5 | 1,748.5 | 1,558.6 |
Amortization of deferred acquisition and sales inducement costs | 173.4 | (49.7) | 268.5 | 130.9 |
Total benefits and expenses | 1,240.2 | 985.3 | 3,365.6 | 3,432.5 |
Pretax income (loss) before noncontrolling interests | 571.2 | 645.7 | 1,965.3 | 1,430.5 |
Operating Segments | Retail Annuities | ||||
Segment Reporting Information [Line Items] | ||||
Fee income | 1,089.9 | 881 | 3,135.6 | 2,530.7 |
Premium | 0 | 0 | 0 | 0 |
Net investment income | 180.7 | 135.3 | 529.4 | 762.1 |
Net gains (losses) on derivatives and investments | 13.3 | 10.2 | 41.9 | 35.9 |
Other income | 11.8 | 12.9 | 35.4 | 17.3 |
Total revenues | 1,295.7 | 1,039.4 | 3,742.3 | 3,346 |
Death, other policy benefits and change in policy reserves, net of deferrals | 24.6 | 22.4 | 42.1 | 40.2 |
Interest credited on other contract holder funds, net of deferrals | 66.3 | 65.1 | 199.9 | 463.1 |
Interest expense | 5.7 | 5.8 | 16.5 | 21.5 |
Operating costs and other expenses, net of deferrals | 512.5 | 464.2 | 1,472.5 | 1,313.5 |
Amortization of deferred acquisition and sales inducement costs | 159.4 | (61) | 232.6 | 102.8 |
Total benefits and expenses | 768.5 | 496.5 | 1,963.6 | 1,941.1 |
Pretax income (loss) before noncontrolling interests | 527.2 | 542.9 | 1,778.7 | 1,404.9 |
Operating Segments | Closed Life and Annuity Blocks | ||||
Segment Reporting Information [Line Items] | ||||
Fee income | 122.5 | 127.3 | 370.5 | 385.8 |
Premium | 38.2 | 49.7 | 109.5 | 143.6 |
Net investment income | 244.4 | 245.6 | 705.8 | 543.9 |
Net gains (losses) on derivatives and investments | 18.4 | 21.4 | 56.1 | 39.2 |
Other income | 7.6 | 7.6 | 29.3 | 13.4 |
Total revenues | 431.1 | 451.6 | 1,271.2 | 1,125.9 |
Death, other policy benefits and change in policy reserves, net of deferrals | 218.2 | 237 | 630.9 | 642.5 |
Interest credited on other contract holder funds, net of deferrals | 103 | 107.2 | 309.6 | 321.8 |
Interest expense | 0 | 0 | 0 | 0 |
Operating costs and other expenses, net of deferrals | 37.6 | 39.3 | 116.1 | 115.7 |
Amortization of deferred acquisition and sales inducement costs | 4 | 3.2 | 11 | 10.9 |
Total benefits and expenses | 362.8 | 386.7 | 1,067.6 | 1,090.9 |
Pretax income (loss) before noncontrolling interests | 68.3 | 64.9 | 203.6 | 35 |
Operating Segments | Institutional Products | ||||
Segment Reporting Information [Line Items] | ||||
Fee income | 0 | 0 | 0 | 0 |
Premium | 0 | 0 | 0 | 0 |
Net investment income | 68.7 | 87.6 | 189.1 | 284.4 |
Net gains (losses) on derivatives and investments | (1.1) | 0 | (1.1) | 0 |
Other income | 0 | 0 | 0 | 1.6 |
Total revenues | 67.6 | 87.6 | 188 | 286 |
Death, other policy benefits and change in policy reserves, net of deferrals | 0 | 0 | 0 | 0 |
Interest credited on other contract holder funds, net of deferrals | 47.3 | 58 | 147.1 | 194.4 |
Interest expense | (1.9) | 2 | 0 | 14.9 |
Operating costs and other expenses, net of deferrals | 1.1 | 1.3 | 3.6 | 3.9 |
Amortization of deferred acquisition and sales inducement costs | 0 | 0 | 0 | 0 |
Total benefits and expenses | 46.5 | 61.3 | 150.7 | 213.2 |
Pretax income (loss) before noncontrolling interests | 21.1 | 26.3 | 37.3 | 72.8 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Fee income | 32.4 | 39.2 | 101.3 | 126.3 |
Premium | 0 | 0 | 0 | 0 |
Net investment income | (55.2) | (26.4) | (99.8) | (103.8) |
Net gains (losses) on derivatives and investments | 7.9 | 6.6 | 20.3 | 15.1 |
Other income | (2.8) | 1 | 5.5 | 3.3 |
Total revenues | (17.7) | 20.4 | 27.3 | 40.9 |
Death, other policy benefits and change in policy reserves, net of deferrals | 0 | 0 | 0 | 0 |
Interest credited on other contract holder funds, net of deferrals | 0 | 0 | 0 | 0 |
Interest expense | 2.5 | 0 | 2.5 | 44.6 |
Operating costs and other expenses, net of deferrals | 49.9 | 32.7 | 156.3 | 125.5 |
Amortization of deferred acquisition and sales inducement costs | 0 | 0 | 0 | 0 |
Total benefits and expenses | 52.4 | 32.7 | 158.8 | 170.1 |
Pretax income (loss) before noncontrolling interests | (70.1) | (12.3) | (131.5) | (129.2) |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Fee income | (14.1) | (17.8) | (43.8) | (62.8) |
Premium | 0 | 0 | 0 | 0 |
Net investment income | 48.8 | 49.8 | 145.9 | 127 |
Net gains (losses) on derivatives and investments | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | 0 |
Total revenues | 34.7 | 32 | 102.1 | 64.2 |
Death, other policy benefits and change in policy reserves, net of deferrals | 0 | 0 | 0 | 0 |
Interest credited on other contract holder funds, net of deferrals | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Operating costs and other expenses, net of deferrals | 0 | 0 | 0 | 0 |
Amortization of deferred acquisition and sales inducement costs | 10 | 8.1 | 24.9 | 17.2 |
Total benefits and expenses | 10 | 8.1 | 24.9 | 17.2 |
Pretax income (loss) before noncontrolling interests | $ 24.7 | $ 23.9 | $ 77.2 | $ 47 |
Segment Information - Reconcili
Segment Information - Reconciliation of Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 1,486.3 | $ 111.1 | $ 7,225.2 | $ 2,605.4 |
Net gains (losses) on derivatives and investments | (1,379.3) | (2,504.8) | (1,194.4) | (4,517.7) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,811.4 | 1,631 | 5,330.9 | 4,863 |
Net gains (losses) on derivatives and investments | 38.5 | 38.2 | 117.2 | 90.2 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Fees attributed to variable annuity benefit reserves | 728.1 | 633.7 | 2,100.7 | 1,858.3 |
Net gains (losses) on derivatives and investments | (1,417.9) | (2,542.9) | (1,311.7) | (4,608) |
Net investment income related to noncontrolling interests | 61.9 | 21.7 | 186.3 | (37.8) |
Consolidated investments | 3.2 | 90.5 | 34.5 | 23.9 |
Net investment income on funds withheld assets | $ 299.6 | $ 277.1 | $ 884.5 | $ 506 |
Segment Information - Reconci_2
Segment Information - Reconciliation of Benefits and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total benefits and expenses | $ 1,234.6 | $ 643 | $ 3,926.5 | $ 4,933.2 |
Athene reinsurance transaction | 0 | 6.2 | 0 | 2,520.1 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total benefits and expenses | 1,240.2 | 985.3 | 3,365.6 | 3,432.5 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Benefits attributed to variable annuity benefit reserves | 25 | 32 | 91.4 | 121.9 |
Amortization of DAC and DSI related to non-operating revenues and expenses | (169.4) | (349) | 283.7 | (980.7) |
SOP 03-1 reserve movements | 126.4 | (67.4) | 122.8 | 266.7 |
Athene reinsurance transaction | 0 | 34.9 | 0 | 2,081.6 |
Other items | $ 12.4 | $ 7.2 | $ 63 | $ 11.2 |
Segment Information - Reconci_3
Segment Information - Reconciliation of Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Pretax adjusted operating earnings | $ 251.7 | $ (531.9) | $ 3,298.7 | $ (2,327.8) |
Non-operating adjustments (income) loss: | ||||
Net movement in freestanding derivatives | (1,413.4) | (5,492.2) | ||
Net realized gain (loss) on investments | 203.9 | 184.2 | ||
Cost of reinsurance | 0 | (6.2) | 0 | (2,520.1) |
Pretax income (loss) attributable to Jackson Financial Inc. | 189.8 | (553.6) | 3,112.4 | (2,290) |
Income tax expense (benefit) | (16.4) | (157) | 514.7 | (580.8) |
Net income (loss) attributable to Jackson Financial Inc. | 206.2 | (396.6) | 2,597.7 | (1,709.2) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Pretax adjusted operating earnings | 571.2 | 645.7 | 1,965.3 | 1,430.5 |
Segment Reconciling Items | ||||
Non-operating adjustments (income) loss: | ||||
Fees attributed to variable annuity benefit reserves | 728.1 | 633.7 | 2,100.7 | 1,858.3 |
Net movement in freestanding derivatives | (493.3) | (3,530.3) | (3,966.3) | (812.4) |
Net reserve and embedded derivative movements | (996.7) | 1,378.1 | 2,221.8 | (5,158.6) |
DAC and DSI impact | 169.3 | 349.1 | (283.8) | 980.9 |
Net realized gain (loss) on investments | (79.1) | (355.4) | 218.7 | 974.5 |
Cost of reinsurance | 0 | (34.9) | 0 | (2,081.6) |
Net investment income on funds withheld assets | 299.6 | 277.1 | 884.5 | 506 |
Other items | $ (9.3) | $ 83.3 | $ (28.5) | $ 12.4 |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Guarantees (Details) $ in Millions | Sep. 30, 2021USD ($) |
Unfunded partnership investment commitment | |
Other Commitments [Line Items] | |
Unfunded commitments | $ 1,489.1 |
Unfunded loan and debt securities commitments | |
Other Commitments [Line Items] | |
Unfunded commitments | $ 1,555.3 |
Other Related Party Transacti_2
Other Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Related party, expenses | $ 7.5 | $ 9.1 | $ 24.1 | $ 29.4 |
Investment management fees | Affiliated entity | ||||
Related Party Transaction [Line Items] | ||||
Related party, revenue | 9.4 | 9.8 | 28.1 | 26.9 |
Related party, expenses | 25.7 | 27.4 | 79.6 | 31.5 |
Information security and technology services | Affiliated entity | ||||
Related Party Transaction [Line Items] | ||||
Related party, revenue | $ 0.8 | $ 0.4 | $ 3.4 | $ 1.1 |
Operating Costs and Other Exp_3
Operating Costs and Other Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Costs And Other Expenses [Abstract] | ||||
Asset-based commission expenses | $ 285.9 | $ 233.2 | $ 834.1 | $ 658.7 |
Other commission expenses | 262.9 | 261.4 | 792.4 | 744.8 |
Athene ceding commission | 0 | 28.5 | 0 | (1,202.6) |
General and administrative expenses | 256.5 | 235.7 | 777.1 | 702.1 |
Deferrals of acquisition costs | (191.7) | (185.5) | (592.1) | (535.8) |
Operating costs and other expenses, net of deferrals | $ 613.6 | $ 573.3 | $ 1,811.5 | $ 367.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in Balance (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance | $ 10,989.6 | $ 9,296.9 | $ 9,922.2 | $ 7,320.6 |
OCI before reclassifications | (313.6) | 489 | (1,552.2) | 2,085.7 |
Amounts reclassified from AOCI | (31.4) | (67.8) | (223.2) | (631.8) |
Balance | 10,856.1 | 9,847.4 | 10,856.1 | 9,847.4 |
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance | 2,390.2 | 3,429.4 | 3,820.6 | 2,396.7 |
Balance | 2,045.2 | 3,850.6 | 2,045.2 | 3,850.6 |
AOCI Including Portion Attributable to Noncontrolling Interest | Funds withheld reinsurance assets | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance | 1,212.8 | |||
Balance | $ 481.3 | $ 1,213.9 | $ 481.3 | $ 1,213.9 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net unrealized investment gain (loss): | ||||
Net gains (losses) on derivatives and investments | $ (1,379.3) | $ (2,504.8) | $ (1,194.4) | $ (4,517.7) |
Pretax adjusted operating earnings | 251.7 | (531.9) | 3,298.7 | (2,327.8) |
Income tax expense (benefit) | (16.4) | (157) | 514.7 | (580.8) |
Net income (loss) | 268.1 | (374.9) | 2,784 | (1,747) |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Net unrealized investment gain (loss): | ||||
Pretax adjusted operating earnings | (40) | (85.9) | (284.6) | (799.8) |
Income tax expense (benefit) | (8.6) | (18.1) | (61.4) | (168) |
Net income (loss) | (31.4) | (67.8) | (223.2) | (631.8) |
Reclassification out of Accumulated Other Comprehensive Income | Net realized gain (loss) on investments | ||||
Net unrealized investment gain (loss): | ||||
Net gains (losses) on derivatives and investments | (40) | (87.2) | (284.6) | (808.6) |
Reclassification out of Accumulated Other Comprehensive Income | Other impaired securities | ||||
Net unrealized investment gain (loss): | ||||
Net gains (losses) on derivatives and investments | $ 0 | $ 1.3 | $ 0 | $ 8.8 |
Equity (Details)
Equity (Details) | Sep. 09, 2021 | Jul. 17, 2020$ / sharesshares | Jun. 24, 2020USD ($)shares | Jun. 18, 2020USD ($) | Aug. 31, 2020USD ($) | Jun. 30, 2020USD ($)shares | Sep. 30, 2021USD ($)voteclass$ / sharesshares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)voteclass$ / sharesshares | Sep. 30, 2020USD ($) | Aug. 06, 2021$ / shares | Dec. 31, 2020USD ($)$ / sharesshares | Nov. 07, 2019USD ($) |
Class of Stock [Line Items] | |||||||||||||
Number of classes of common stock | class | 2 | 2 | |||||||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||||||
Stock split conversion ratio | 104,960.3836276 | ||||||||||||
Dividends | $ | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||
Retained earnings | $ | $ (2,274,500,000) | $ (2,274,500,000) | $ 323,200,000 | ||||||||||
Note payable | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Debt face amount | $ | $ 350,000,000 | $ 350,000,000 | |||||||||||
Shares issued in debt conversion (in shares) | 6,927,385 | ||||||||||||
Cumulative effect of change in accounting principle | Accounting Standards Update 2016-13 | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Retained earnings | $ | $ 70,200,000 | $ 70,200,000 | |||||||||||
Surplus notes | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Debt face amount | $ | $ 2,000,000,000 | ||||||||||||
Shares issued in debt conversion (in shares) | 39,255,183 | ||||||||||||
Jackson Financial | Athene | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Investment agreement, committed capital | $ | $ 500,000,000 | ||||||||||||
Ownership interest | 9.90% | ||||||||||||
Economic ownership percentage | 11.10% | ||||||||||||
Jackson | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Capital contribution to subsidiary | $ | $ 500,000,000 | ||||||||||||
Class A common stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Number of votes per share | vote | 1 | 1 | |||||||||||
Common stock, authorized (in shares) | 900,000,000 | 900,000,000 | 900,000,000 | ||||||||||
Common stock, issued (in shares) | 93,099,859 | 93,099,859 | 93,099,859 | ||||||||||
Common stock, outstanding (in shares) | 93,099,859 | 93,099,859 | 93,099,859 | ||||||||||
Stock reclassified (in shares) | 83,968,306 | ||||||||||||
Stock reclassified, par value (in usd per share) | $ / shares | $ 125 | ||||||||||||
Class A common stock | Athene | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock issued (in shares) | 9,131,553 | ||||||||||||
Class B common stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||
Number of votes per share | vote | 0.10 | 0.10 | |||||||||||
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||||
Common stock, issued (in shares) | 1,364,484 | 1,364,484 | 1,364,484 | ||||||||||
Common stock, outstanding (in shares) | 1,364,484 | 1,364,484 | 1,364,484 | ||||||||||
Class B common stock | Athene | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock issued (in shares) | 1,364,484 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to Jackson Financial Inc. | $ 206.2 | $ (396.6) | $ 2,597.7 | $ (1,709.2) |
Weighted average shares of common stock outstanding - basic (in shares) | 94,464,343 | 92,638,945 | 94,464,343 | 58,625,564 |
Weighted average shares of common stock outstanding - diluted (in shares) | 94,464,343 | 92,638,945 | 94,464,343 | 58,625,564 |
Earnings per share—common stock | ||||
Basic (in usd per share) | $ 2.18 | $ (4.28) | $ 27.50 | $ (29.15) |
Diluted (in usd per share) | $ 2.18 | $ (4.28) | $ 27.50 | $ (29.15) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) shares in Millions | Oct. 04, 2021shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Share-based awards granted (in shares) | 7.2 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ / shares in Units, $ in Millions | Nov. 08, 2021USD ($)$ / shares |
Subsequent Event [Line Items] | |
Common stock dividend declared (in usd per share) | $ / shares | $ 0.50 |
Share repurchase authorized | $ | $ 300 |