Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020 | |
Document and Entity Information [Abstract] | |
Document Type | S-1 |
Entity Central Index Key | 0000045947 |
Amendment Flag | false |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Registrant Name | TALCOTT RESOLUTION LIFE INSURANCE COMPANY |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | ||||
Fee income and other | $ 381 | $ 502 | $ 741 | $ 821 |
Earned premiums | 42 | 31 | 35 | 42 |
Net investment income (loss): | ||||
Net investment income | 520 | 509 | 816 | 924 |
Realized Investment Gains (Losses) | (107) | 142 | (74) | (275) |
Amortization of deferred reinsurance gain | 0 | 38 | 53 | 59 |
Total revenues | 836 | 1,222 | 1,571 | 1,571 |
Benefits, losses and expenses | ||||
Benefits, loss and loss adjustment expenses | 534 | 415 | 626 | 760 |
Amortization of deferred policy acquisition costs ("DAC") and value of business acquired ("VOBA") | 16 | 98 | 50 | (25) |
Insurance operating costs and other expenses | 183 | 235 | 364 | 423 |
Other intangible asset amortization | 0 | 4 | 6 | 5 |
Dividends to policyholders | 2 | 2 | 60 | 5 |
Total benefits, losses and expenses | 735 | 754 | 1,106 | 1,168 |
Income before income taxes | 101 | 468 | 465 | 403 |
Provision for income taxes | 7 | 59 | 66 | 44 |
Net income | $ 94 | $ 409 | $ 399 | $ 359 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income | $ 94 | $ 409 | $ 399 | $ 359 |
Change in net unrealized gain on fixed maturities | (430) | (173) | 890 | |
Change in net gain on cash-flow hedging instruments | (18) | 0 | 0 | |
Change in foreign currency translation adjustments | 1 | 2 | (2) | |
OCI, net of tax | (447) | (171) | 564 | 888 |
Comprehensive income (loss) | (353) | 238 | 963 | 1,247 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Change in net unrealized gain on fixed maturities | 565 | |||
AOCI Attributable to Parent [Member] | ||||
OCI, net of tax | $ (447) | $ (171) | $ 564 | $ 888 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Debt Securities, Available-for-sale | $ 14,875 | $ 13,988 |
Equity securities, at fair value | 65 | 45 |
Mortgage loans (net of ACL of $17 and $0, respectively) | 2,092 | 2,241 |
Policy loans, at outstanding balance | 1,452 | 1,467 |
Limited partnerships and other alternative investments | 999 | 939 |
Other investments | 24 | 40 |
Short-term investments | 802 | 550 |
Total investments | 20,309 | 19,270 |
Cash | 40 | 128 |
Premiums receivable and agents’ balances, net | 10 | 12 |
Reinsurance recoverables (net of ACL of $7 and $0, respectively) | 27,455 | 28,824 |
VOBA | 586 | 696 |
Deferred income taxes, net | 478 | 681 |
Other intangible assets | 40 | 46 |
Other assets | 345 | 481 |
Separate account assets | 109,625 | 104,575 |
Total assets | 158,888 | 154,713 |
Liabilities | ||
Reserve for future policy benefits | 18,625 | 18,465 |
Other policyholder funds and benefits payable | 25,307 | 27,161 |
Other liabilities | 2,146 | 1,960 |
Separate account liabilities | 109,625 | 104,575 |
Total liabilities | 155,703 | 152,161 |
Commitments and Contingencies | ||
Common Stock, Shares, Issued | 1,000 | 1,000 |
Common Stock, Shares Authorized | 1,000 | 1,000 |
Common Stock, Shares, Outstanding | 1,000 | 1,000 |
Common Stock, Par or Stated Value Per Share | $ 5,690 | $ 5,690 |
Stockholder’s Equity | ||
Common Stock, Value, Issued | $ 6 | $ 6 |
Additional paid-in capital | 1,761 | 1,761 |
Accumulated other comprehensive income ("AOCI"), net of tax | 1,281 | 717 |
Retained earnings | 137 | 68 |
Total stockholder’s equity | 3,185 | 2,552 |
Total liabilities and stockholder’s equity | 158,888 | 154,713 |
Reinsurance Recoverable, Allowance for Credit Loss | $ 7 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 01, 2018 | May 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Loss | $ 17 | $ 0 | |||||||
Common Stock, Shares Authorized | 1,000 | 1,000 | |||||||
Common Stock, Shares, Outstanding | 1,000 | 1,000 | |||||||
Debt Securities, Available-for-sale, Allowance for Credit Loss | $ (1) | $ 0 | $ 0 | ||||||
Financing Receivable, Past Due | 0 | ||||||||
Debt Securities, Available-for-sale, Amortized Cost | $ 13,137 | $ 13,020 | |||||||
Common Stock, Shares, Issued | 1,000 | 1,000 | |||||||
Common Stock, Value, Issued | $ 6 | $ 6 | |||||||
Commercial Loan [Member] | |||||||||
Financing Receivable, Allowance for Credit Loss | 17 | $ 9 | $ 0 | $ 5 | $ 5 | $ 0 | $ 0 | $ 0 | $ 0 |
Financing Receivable, Past Due | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] |
Stockholders' Equity Attributable to Parent | $ (6,680) | $ (6) | $ (3,539) | $ (1,023) | $ (2,112) |
Net income | 94 | 94 | |||
OCI, net of tax | (447) | (447) | |||
Adjustments to Additional Paid in Capital, Dividends in Excess of Retained Earnings | (619) | (619) | |||
Adjustment to APIC, Contribution from Parent | 102 | 102 | |||
Stockholders' Equity Attributable to Parent | (5,810) | (6) | (3,022) | (758) | (2,024) |
Net income | 409 | 409 | |||
OCI, net of tax | (171) | (171) | |||
Stockholders' Equity Attributable to Parent | (2,005) | (6) | (1,761) | 171 | (409) |
Net income | 359 | 359 | |||
OCI, net of tax | 888 | 888 | |||
Dividend, Share-based Payment Arrangement, Cash | (700) | (700) | |||
Stockholders' Equity Attributable to Parent | (2,552) | (6) | (1,761) | (717) | (68) |
Net income | 399 | 399 | |||
OCI, net of tax | 564 | 564 | |||
Dividend, Share-based Payment Arrangement, Cash | (319) | (319) | |||
Stockholders' Equity Attributable to Parent | $ (3,185) | $ (6) | $ (1,761) | $ (1,281) | $ (137) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities | |||||
Net income | $ 94 | $ 409 | $ 399 | $ 359 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||||
Realized Gain (Loss) on Marketable Securities, Cost Method Investments, and Other Investments | 107 | (142) | 74 | 275 | |
Recognition of Deferred Revenue | 0 | (38) | (53) | (59) | |
DecreaseInDeferredPolicyAcquisitionCosts | (1) | 0 | 0 | 0 | |
Amortization of DAC and VOBA | (16) | (98) | (50) | 25 | |
Depreciation and amortization (accretion), net | (1) | 31 | 69 | 51 | |
Other Operating Activities, Cash Flow Statement | 131 | 63 | 259 | 205 | |
Change in reinsurance recoverables | (2) | (990) | (331) | (272) | |
Change in accrued and deferred income taxes | 274 | 29 | 54 | 51 | |
Change in reserve for future policy benefits and unpaid losses and loss adjustment expenses and unearned premiums | 45 | (503) | 160 | 141 | |
Increase (Decrease) in Other Operating Assets and Liabilities, Net | (60) | 302 | 185 | (169) | |
Net Cash Provided by (Used in) Operating Activities | 603 | (741) | 866 | 557 | |
Proceeds from the sale/maturity/prepayment of: | |||||
Proceeds from Sale of Debt Securities, Available-for-sale | 4,397 | 3,303 | 2,824 | 3,498 | |
Proceeds from Sale and Maturity and Prepayment of Fair Value, Equity Securities | 49 | 68 | 7 | 213 | |
Mortgage loans | 116 | 101 | 373 | 257 | |
Proceeds from Limited Partnership Investments | 188 | 83 | 77 | 134 | |
Payments for the purchase of: | |||||
Payments to Acquire Debt Securities, Available-for-sale | 2,447 | 3,024 | 2,866 | 2,589 | |
Payments to Acquire Equity Securities, Fair Value Option | (25) | (10) | (26) | (5) | |
Mortgage loans | (86) | (323) | (242) | (413) | |
Payments to Acquire Limited Partnership Interests | (80) | (97) | (134) | (156) | |
Payment to Acquire Repurchase Agreements | 0 | (22) | (16) | 19 | |
Net payments for derivatives | (200) | (303) | 143 | (272) | |
Net increase (decrease) in policy loans | (26) | 18 | 15 | (26) | |
Payments to Acquire Property, Plant, and Equipment | 44 | 0 | 0 | 0 | |
Payments for (Proceeds from) Short-term Investments | (1,494) | 1,770 | (234) | 288 | |
Other investing activities, net | 27 | 16 | (10) | 8 | |
Net cash provided by investing activities | 463 | 1,580 | (89) | 956 | |
Net Change Contract Holders Funds [Abstract] | |||||
Deposits and other additions to investment and universal life-type contracts | 1,782 | 1,959 | 1,971 | 2,168 | |
Withdrawals and other deductions from investment and universal life-type contracts | (9,206) | (10,173) | (9,627) | (11,074) | |
Net transfers from separate accounts related to investment and universal life-type contracts | 6,999 | 7,360 | 7,117 | 8,202 | |
Proceeds from (Payments for) in Securities Sold under Agreements to Repurchase | (406) | (11) | (7) | (204) | |
Return of capital to parent | (517) | 0 | (319) | (700) | |
Net repayments at maturity or settlement of consumer notes | (8) | 0 | 0 | 0 | |
Net cash used for financing activities | (1,356) | (865) | (865) | (1,608) | |
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | 0 | 0 | 2 | |
Cash, Period Increase (Decrease) | (290) | (26) | (88) | (93) | |
Cash — beginning of year | 537 | 247 | 128 | 221 | $ 537 |
Cash — end of year | 247 | 221 | 40 | 128 | $ 221 |
Supplemental Cash Flow Information [Abstract] | |||||
Income Taxes Paid, Net | $ 271 | $ 17 | $ 0 | $ 25 |
Transactions with Affiliates Le
Transactions with Affiliates Level 1 | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Parent Company Transactions (Successor Company) As of December 31, 2020 and 2019, the Company had no direct employees as we are managed by TLI, the Company's parent, pursuant to an Intercompany Services and Cost Allocation Agreement effective as of June 1, 2018 (the “Management Agreement”) between the Company, TLI and other Company affiliates. Pursuant to the Management Agreement, the parties provide a variety of operating services to each other to conduct their day to day business, including employee compensation and management services. Expenses incurred by TLI in providing these services are reimbursed by the Company based on TLI’s actual cost incurred. For information related to capital contributions to the parent company, see the Dividends section of Note 13 - Statutory Results of Notes to Consolidated Financial Statements. Parent Company Transactions (Predecessor Company) Prior to the sale of the Company, substantially all general insurance expenses related to the Company were initially paid by The Hartford. Expenses were allocated to the Company using specific identification if available, or other applicable methods, that would include a blend of revenue, expense and capital. Reinsurance Ceded to Affiliates (Predecessor Company) The Company maintained a reinsurance agreement with Hartford Life and Accident Insurance Company ("HLA") whereby the Company ceded both group life and group accident and health risk business. Under this agreement, the Company ceded group life premiums of $9 for the period of January 1, 2018 to May 31, 2018 (Predecessor Company). The Company also ceded accident and health premiums of $25 for the period of January 1, 2018 to May 31, 2018 (Predecessor Company). |
Schedule IV - Schedule of Reins
Schedule IV - Schedule of Reinsurance Level 1 | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Text Block] | TALCOTT RESOLUTION LIFE INSURANCE COMPANY AND SUBSIDIARIES SCHEDULE IV REINSURANCE ($ In millions) Gross Amount Ceded to Other Companies Assumed From Other Companies Net Percentage of Amount Assumed For the Year Ended December 31, 2020 (Successor Company) Life insurance in-force $ 239,801 $ 174,372 $ 173 $ 65,602 — % Insurance revenues Life insurance and annuities $ 2,201 $ 1,550 $ 125 $ 776 16 % Accident and health insurance 20 20 — — — % Total insurance revenues $ 2,221 $ 1,570 $ 125 $ 776 16 % For the Year Ended December 31, 2019 (Successor Company) Life insurance in-force $ 249,728 $ 181,779 $ 378 $ 68,327 1 % Insurance revenues Life insurance and annuities $ 2,350 $ 1,602 $ 115 $ 863 13 % Accident and health insurance 25 25 — — — % Total insurance revenues $ 2,375 $ 1,627 $ 115 $ 863 13 % For the Period of June 1, 2018 to December 31, 2018 (Successor Company) Life insurance in-force $ 259,930 $ 191,858 $ 487 $ 68,559 1 % Insurance revenues Life insurance and annuities $ 1,404 $ 937 $ 66 $ 533 12 % Accident and health insurance 35 35 — — — % Total insurance revenues $ 1,439 $ 972 $ 66 $ 533 12 % For the Period of January 1, 2018 to May 31, 2018 (Predecessor Company) Life insurance in-force $ 266,190 $ 197,736 $ 515 $ 68,969 1 % Insurance revenues Life insurance and annuities $ 1,033 $ 658 $ 48 $ 423 11 % Accident and health insurance 26 26 — — — % Total insurance revenues $ 1,059 $ 684 $ 48 $ 423 11 % |
Schedule IV - Schedule of Rei_2
Schedule IV - Schedule of Reinsurance Level 4 - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Life Insurance in Force, Net [Abstract] | |||||
Direct Premiums, Life Insurance in Force | $ 266,190 | $ 239,801 | $ 249,728 | $ 259,930 | |
Ceded Premiums Earned | 197,736 | 174,372 | 181,779 | 191,858 | |
Assumed Premiums, Life Insurance in Force | 515 | 173 | 378 | 487 | |
Premiums, Net, Life Insurance in Force | $ 68,969 | $ 65,602 | $ 68,327 | $ 68,559 | |
Life Insurance in Force Premiums, Percentage Assumed to Net | 1.00% | 0.00% | 1.00% | 1.00% | |
Premiums Earned, Net [Abstract] | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net | 11.00% | 12.00% | 16.00% | 13.00% | |
Life and Annuity Insurance Product Line [Member] | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Life Insurance in Force, Net [Abstract] | |||||
Net Fee Income Earned Premium and Other Life | $ 423 | $ 533 | $ 776 | $ 863 | |
Premiums Earned, Net [Abstract] | |||||
Direct Premiums Earned | 1,033 | 1,404 | 2,201 | 2,350 | |
Ceded Premiums Earned | 658 | 937 | 1,550 | 1,602 | |
Assumed Premiums Earned | $ 48 | $ 66 | $ 125 | $ 115 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net | 11.00% | 12.00% | 16.00% | 13.00% | |
Accident and Health Insurance Product Line [Member] | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Life Insurance in Force, Net [Abstract] | |||||
Net Fee Income Earned Premium and Other Life | $ 0 | $ 0 | $ 0 | $ 0 | |
Premiums Earned, Net [Abstract] | |||||
Direct Premiums Earned | 26 | 35 | 20 | 25 | |
Ceded Premiums Earned | 26 | 35 | 20 | 25 | |
Assumed Premiums Earned | $ 0 | $ 0 | $ 0 | $ 0 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% | 0.00% | |
Life Annuity Accident and Health Insurance Product Line [Member] | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Life Insurance in Force, Net [Abstract] | |||||
Net Fee Income Earned Premium and Other Life | $ 423 | $ 533 | $ 776 | $ 863 | |
Premiums Earned, Net [Abstract] | |||||
Direct Premiums Earned | 1,059 | 1,439 | 2,221 | 2,375 | |
Ceded Premiums Earned | 684 | 972 | 1,570 | 1,627 | |
Assumed Premiums Earned | $ 48 | $ 66 | $ 125 | $ 115 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation and Significant Accounting Policies Basis of Presentation Talcott Resolution Life Insurance Company, formerly Hartford Life Insurance Company, (together with its subsidiaries, “TL,” “Company,” “we” or “our”) is a provider of insurance and investment products in the United States (“U.S.”) and is a wholly-owned subsidiary of Talcott Resolution Life, Inc., a Delaware corporation ("TLI"). Hopmeadow Holdings LP (“Hopmeadow Holdings", or "HHLP ”) is the ultimate parent of the Company. The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which differ materially from the accounting practices prescribed by various insurance regulatory authorities. On May 31, 2018 the Company's indirect parent, Hartford Holding, Inc. ("HHI") completed the sale of the Company's parent to a group of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group ("Global Atlantic"), Pine Brook and J. Safra Group. Although Talcott Resolution Life Insurance Company is no longer affiliated with The Hartford Financial Services Group, Inc. ("The Hartford") or any of its subsidiaries, The Hartford retained a 9.7 percent ownership interest in HHLP ("Talcott Resolution Sale Transaction"). In conjunction with the sale, the Company entered into a transition services agreement with The Hartford for a period up to three years to provide general ledger, cash management, and information technology infrastructure services. In 2020, the transition services agreement was completed as all supported services have fully transitioned to the Company. In March, 2019, a five year administrative services agreement was entered into for investment accounting services which replaced the services previously provided under the transition services agreement. HHLP’s May 31, 2018 acquisition of TLI was accounted for by HHLP using business combination accounting. Under this method, the purchase price paid by the investor group was assigned to the identifiable assets acquired and liabilities assumed as of the acquisition date based on their fair value. The Company elected to apply "pushdown" accounting by applying the guidance permitted under Accounting Standards Codification (“ASC”) Topic 805 Business Combinations . By the application of pushdown accounting, the Company’s assets, liabilities and equity were accordingly adjusted to fair value on May 31, 2018 which generated both intangible assets and Value of Business Acquired (“VOBA”). Determining the fair value of certain assets acquired and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions. Due to the application of pushdown accounting, TL’s financial statements and footnote disclosures are presented in two distinct periods to indicate the application of two different bases of accounting. The periods prior to June 1, 2018 are identified herein as “Predecessor,” while the periods subsequent to HHLP’s acquisition of TLI are identified as “Successor.” As a result of the change in the basis of accounting from historical GAAP to reflect HHLP’s purchase cost, the financial statements for the Predecessor period are not comparable to the Successor periods. On June 1, 2018, TL executed reinsurance agreements to reinsure certain fixed immediate and deferred annuity contracts, variable payout separate account annuity contracts, standard mortality structured settlements, and period certain structured settlement annuity contracts ("Commonwealth Annuity Reinsurance Agreement") to Commonwealth Annuity and Life Insurance Company ("Commonwealth"), a subsidiary of Global Atlantic which is a member of the acquiring investment group. TL reinsured an 85% quota share, except 75% for standard mortality structured settlements, in exchange for a $357 ceding commission that was fixed based on reinsuring approximately $9.3 billion of reserves as of December 31, 2016, plus annuitizations through closing and annuitizations from market value adjusted annuities post-close. The reinsurance agreement was executed after the Talcott Resolution Sale Transaction, and as such, the accounting for the agreement was recorded after the TL balance sheet was adjusted to fair value in purchase and pushdown accounting. A deferred gain, net of amortization, of $878 is recorded in Other liabilities on the Consolidated Balance Sheet related to this reinsurance agreement and will be amortized over the life of the underlying policies reinsured. COVID 19 Update The impact of the outbreak and continuing spread of the novel coronavirus (“COVID-19”) and the related disruption to the worldwide economy continues to affect companies across all industries. For the year ended December 31, 2020 (Successor Company), the COVID-19 pandemic did have varying impacts on components of revenue, however, there was no overall impact as revenues were flat year over year. The duration and impact of the COVID-19 public health crisis on financial markets, overall economy and our operations remain uncertain, as is the efficacy of government and central bank interventions. The Company successfully transitioned to a fully remote work environment in March of 2020 and remains fully remote with minimal disruption to our operations. As further discussed in this document, the Company’s financial performance is dependent on financial market conditions and potential newly emergent trends in mortality and policyholder behavior as a result of the COVID-19 public health crisis. As such, the Company continues to be unable to quantify its impact on the financial results and operations in future periods. Consolidation The Consolidated Financial Statements include the accounts of TL and entities the Company directly or indirectly has a controlling financial interest in which the Company is required to consolidate. Entities in which TL has significant influence over the operating and financing decisions but is not required to consolidate are reported using the equity method. All intercompany transactions and balances between TL and its subsidiaries have been eliminated. Use of Estimates The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The most significant estimates include those used in determining estimated gross profits used in the valuation and amortization of assets (including VOBA) and liabilities associated with variable annuity and other universal life-type contracts; evaluation of credit losses on fixed maturities, AFS and ACL on mortgage loans; living benefits required to be fair valued; valuation of investments and derivative instruments; valuation allowance on deferred tax assets; amortization of the deferred gain on reinsurance; and contingencies relating to corporate litigation and regulatory matters. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the Consolidated Financial Statements. The ultimate extent to which the COVID-19 pandemic will directly impact the Company's business, results of operations and financial condition will depend on future developments that are highly uncertain. Actual results may differ from these estimates. Reclassifications Certain reclassifications have been made to prior year financial information to conform to the current year presentation. Adoption of New Accounting Standards Reclassification of Effect of Tax Rate Change from AOCI to Retained Earnings In February 2018, the FASB issued new accounting guidance for the effect on deferred tax assets and liabilities related to items recorded in AOCI resulting from legislated tax reform enacted on December 22, 2017. The tax reform reduced the federal tax rate applied to the Company’s deferred tax balances from 35% to 21% on enactment. Under U.S. GAAP, the Company recorded the total effect of the change in enacted tax rates on deferred tax balances as a charge to income tax expense within net income, including the change in deferred tax balances related to components of AOCI. The new accounting guidance permitted the Company to reclassify the “stranded” tax effects out of AOCI and into retained earnings that resulted from recording the tax effects of unrealized investment gains at a 35% tax rate because the 14 point reduction in tax rate was recognized in net income instead of other comprehensive income. On January 1, 2018, the Company (Predecessor Company) adopted the new guidance and recorded a reclassification of $193 which increased AOCI and reduced retained earnings. Financial Instruments - Recognition and Measurement On January 1, 2018, the Company (Predecessor Company) adopted updated guidance issued by the FASB for the recognition and measurement of financial instruments through a cumulative effect adjustment to the opening balances of retained earnings and AOCI. The new guidance requires investments in equity securities to be measured at fair value with any changes in valuation reported in net income except for investments that are consolidated or are accounted for under the equity method of accounting. The new guidance also requires a deferred tax asset resulting from net unrealized losses on available-for-sale fixed maturities that are recognized in AOCI to be evaluated for recoverability in combination with the Company’s other deferred tax assets. Under prior guidance, the Company reported equity securities, available for sale ("AFS"), at fair value with changes in fair value reported in other comprehensive income. As of January 1, 2018, the Company (Predecessor Company) reclassified from AOCI to retained earnings net unrealized gains of $11, after tax, related to equity securities having a fair value of $154. Beginning in 2018, the Company reports equity securities at fair value with changes in fair value reported in net realized capital gains and losses. Revenue Recognition On January 1, 2018, the Company (Predecessor Company) adopted the FASB’s updated guidance for recognizing revenue from contracts with customers, which excludes insurance contracts and financial instruments. Revenue subject to the guidance is recognized when, or as, goods or services are transferred to customers in an amount that reflects the consideration that an entity is expected to receive in exchange for those goods or services. The updated guidance is consistent with previous guidance for the Company’s transactions and did not have an effect on the Company’s financial position, cash flows or net income. Revenue from customers for other than insurance and investment contracts was $80 and $84 for the years ended December 31, 2020 and 2019, respectively (Successor Company), $54 for the period of June 1, 2018 to December 31, 2018 (Successor Company) and $40 for the period of January 1, 2018 to May 31, 2018 (Predecessor Company). The Company earns revenues from these contracts primarily for administrative and distribution services fees from offering certain fund families as investment options in its variable annuity products. Fees are primarily based on the average daily net asset values of the funds and are recorded in the period in which the services are provided and collected monthly. Fluctuations in domestic and international markets and related investment performance, volume and mix of sales and redemptions of the funds, and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned. Hedging Activities The FASB issued updated guidance on hedge accounting. The updates allow hedge accounting for new types of interest rate hedges of financial instruments and simplify documentation requirements to qualify for hedge accounting. In addition, any gain or loss from hedge ineffectiveness will be reported in the same income statement line with the effective hedge results and the hedged transaction. For cash flow hedges, the ineffectiveness will be recognized in earnings only when the hedged transaction affects earnings; otherwise, the ineffectiveness gains or losses will remain in AOCI. Under previous accounting, total hedge ineffectiveness was reported separately in realized gains and losses apart from the hedged transaction. The updated guidance was effective January 1, 2019 through a cumulative effect adjustment that will reclassify cumulative ineffectiveness on open cash flow hedges from retained earnings to AOCI. As a result of pushdown accounting, derivative instruments that qualified for hedge accounting were recorded at fair value through adjustments to additional paid in capital at the acquisition date. As of December 31, 2018 (Successor Company), the Company had no derivative instruments that qualify for hedge accounting, therefore there was no impact on the Company's financial statements upon adoption. Changes to the Disclosure Requirements for Fair Value Measurement On August 28, 2018 the FASB issued Accounting Standards Update ("ASU") 2018-13 which removes, modifies and adds certain disclosure requirements related to fair value measurements in ASC 820, Fair Value Measurements . As permitted by the guidance, the Company early adopted amendments in this guidance effective December 31, 2019. The adoption of ASU 2018-13 did not have a material impact on the Company's consolidated financial statements. Financial Instruments - Credit Losses On January 1, 2020 the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, ("ASU 2016-13", or "CECL") together with related updated guidance for recognition and measurement of credit losses on certain financial instruments not carried at fair value, including reinsurance recoverables. This guidance replaces the “incurred loss” approach with an “expected loss” model for recognizing credit losses for instruments carried at amortized cost, which resulted in the recognition of greater allowances for losses. Under the new model, an allowance for credit losses ("ACL") is recognized as an estimate of credit losses expected over the life of financial instruments, such as mortgage loans, reinsurance recoverables and off-balance sheet credit exposures that the Company cannot unconditionally cancel. The measurement of the expected credit loss estimate is based on historical loss data, current conditions, and reasonable and supportable forecasts. Credit losses on fixed maturities, AFS carried at fair value continue to be measured similar to previous guidance for other-than-temporary impairments ("OTTI"); however, losses are now recognized through the ACL and no longer as an adjustment to the amortized cost. Recoveries of OTTI on fixed maturities, AFS are recognized as reversals of the ACL recognized through net realized capital gains and losses and no longer accreted as net investment income through an adjustment to the investment yield. For fixed maturities, AFS this guidance is applied prospectively. Additionally, the new guidance requires purchased financial assets with a more-than-insignificant amount of credit deterioration since original issuance to establish an ACL at acquisition, which is recorded with the purchase price to establish the initial amortized cost of the investment. The Company adopted the guidance through a cumulative-effect adjustment that decreased retained earnings by $11, after tax, primarily related to the Company's mortgage loan investments. No ACL was recognized at adoption for fixed maturities, AFS as those provisions of the guidance are applied prospectively. Upon adoption, the Company did not have any purchased financial assets with a more-than-insignificant amount of credit deterioration since original issuance. Summary of Adoption Impacts ACL on mortgage loans $ (9) ACL on reinsurance recoverables (5) Deferred income tax asset 3 Net decrease to retained earnings $ (11) Future Adoption of New Accounting Standards Targeted Improvements to the Accounting for Long Duration Contracts The FASB issued ASU 2018-12 on August 15, 2018 which impacts the existing recognition, measurement, presentation and disclosure requirements for certain long duration contracts issued by an insurance company. The guidance is intended to improve the timeliness of recognizing changes in the liability for future policy benefits by requiring annual or more frequent updates of insurance assumptions and modifying the rate used to discount future cash flows. Cash flows under the new guidance are required to be discounted using an upper-medium grade fixed income instrument yield. The discount rate is required to be updated at each reporting date, with the effect of discount rate changes on the liability recorded in OCI. This is a change from current GAAP which utilizes assumptions, including discount rate, "locked in" at policy issuance and until such time significant changes in experience or assumptions may require the Company to establish premium deficiency reserves. When this occurs, premium deficiency reserves are recognized by unlocking reserve assumptions to eliminate a reserve deficiency under current GAAP. Further, the guidance seeks to improve the accounting for certain market-based options or guarantees associated with account balance contracts and improve the effectiveness of the required disclosures. These market risk benefit features are required to be measured at fair value with changes in fair value recorded in net income with the exception of changes in the fair value attributable to a change in the instrument's credit risk, which are required to be recognized in OCI. Additionally, this ASU requires new disclosures including liability rollforwards and information about significant inputs, judgments, assumptions, and methods used in the measurement. This guidance was amended through the issuance of ASU 2020-11, which deferred the effective date the Company is required to adopt the guidance to January 1, 2023, with early adoption permitted. The Company continues to assess its policies, processes, and applicable systems to determine the impact this standard will have on its operations and financial results. While it is not possible to reasonably estimate the expected impact of adoption at this time, given the nature and extent of the required changes to a significant portion of the Company’s operations, adoption is expected to have a material impact on our consolidated financial statements and related disclosures. This guidance represents a significant change from existing GAAP; however, it does not change the underlying economics of the business or its related cash flows. Significant Accounting Policies The Company’s significant accounting policies are as follows: Segment Information The Company has no reportable segments and its principal products and services are comprised of variable annuities, fixed and payout annuities, and private-placement life insurance. The Company's determination that it has no reportable segments is based on the fact that the Company's chief operating decision maker reviews the Company's financial performance at a consolidated level. Revenue Recognition For investment and universal life-type contracts, the amounts collected from policyholders are considered deposits and are not included in revenue. Fee income for variable annuity and other universal life-type contracts consists of policy charges for policy administration, cost of insurance charges and surrender charges assessed against policyholders’ account balances and are recognized in the period in which services are provided. For the Company’s traditional life products, premiums are recognized as revenue when due from policyholders. Income Taxes The Company recognizes taxes payable or refundable for the current year and deferred taxes for the tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. A deferred tax provision is recorded for the tax effects of differences between the Company's current taxable income and its income before tax under generally accepted accounting principles in the Consolidated Statements of Operations. For deferred tax assets, the Company records a valuation allowance that is adequate to reduce the total deferred tax asset to an amount that will more likely than not be realized. Investments Overview The Company’s investments in fixed maturities include bonds, structured securities, redeemable preferred stock and commercial paper. Most of these investments are classified as AFS and are carried at fair value, net of ACL, in accordance with new guidance adopted January 1, 2020 regarding expected credit losses. The after-tax difference between fair value and cost or amortized cost is reflected in stockholder's equity as a component of AOCI, after adjustments for the effect of VOBA (Successor Company) and reserve adjustments. Equity securities are measured at fair value with any changes in valuation reported in net income. For further information, see Financial Instruments - Recognition and Measurement discussion above. Policy loans are carried at outstanding balance. Mortgage loans are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of ACL. Short-term investments are carried at amortized cost, which approximates fair value. Limited partnerships and other alternative investments are reported at their carrying value and are primarily accounted for under the equity method with the Company’s share of earnings included in net investment income. Recognition of income related to limited partnerships and other alternative investments is delayed due to the availability of the related financial information, as private equity and other funds are generally on a three-month lag and hedge funds on a one-month lag. Accordingly, income for the years ended December 31, 2020 and 2019 (Successor Company), the period of June 1, 2018 to December 31, 2018 (Successor Company) and and the period of January 1, 2018 to May 31, 2018 (Predecessor Company) may not include the full impact of current year changes in valuation of the underlying assets and liabilities of the funds, which are generally obtained from the limited partnerships and other alternative investments’ general partners. Other investments consist of derivative instruments which are carried at fair value and real estate acquired in satisfaction of debt. Net Realized Capital Gains and Losses Net realized capital gains and losses from investment sales are reported as a component of revenues and are determined on a specific identification basis. Net realized capital gains and losses also result from fair value changes in equity securities and derivatives contracts (both free-standing and embedded) that do not qualify, or are not designated, as a hedge for accounting purposes. Impairments and changes in the ACL on fixed maturities, AFS; mortgage loans; and reinsurance recoverables are recognized as net realized capital losses in accordance with the Company’s impairment and ACL policies as discussed in Note 3 - Investments of Notes to Consolidated Financial Statements. Foreign currency transaction remeasurements are also included in net realized capital gains and losses. Net Investment Income Interest income from fixed maturities and mortgage loans is recognized when earned on the constant effective yield method based on estimated timing of cash flows. The amortization of premium and accretion of discount for fixed maturities also takes into consideration call and maturity dates that produce the lowest yield. For securitized financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future prepayments using the retrospective method; however, if these investments have previously recognized an ACL and for certain other asset-backed securities, any yield adjustments are made using the prospective method. Prepayment fees and make-whole payments on fixed maturities and mortgage loans are recorded in net investment income when earned. For equity securities, dividends are recognized as investment income on the ex-dividend date. Limited partnerships and other alternative investments primarily use the equity method of accounting to recognize the Company’s share of earnings. Prior to January 1, 2020 the Company applied OTTI guidance to debt securities in an unrealized loss position and accreted the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the security’s yield, if necessary. In accordance with accounting guidance adopted January 1, 2020 regarding expected credit losses, the losses are now recognized through an ACL and no longer as an adjustment to amortized cost. The Company’s non-income producing investments were not material for the years ended December 31, 2020 and 2019, (Successor Company), the period of June 1, 2018 to December 31, 2018 (Successor Company) and the period of January 1, 2018 to May 31, 2018 (Predecessor Company). Derivative Instruments Overview The Company utilizes a variety of over-the-counter ("OTC") transactions cleared through central clearing houses ("OTC-cleared") and exchange traded derivative instruments as part of its overall risk management strategy as well as to enter into replication transactions. The types of instruments may include swaps, caps, floors, forwards, futures and options to achieve one of four Company-approved objectives: • to hedge risk arising from interest rate, equity market, commodity market, credit spread and issuer default, price or currency exchange rate risk or volatility; • to manage liquidity; • to control transaction costs; • to enter into synthetic replication transactions. Interest rate and credit default swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, little to no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. Interest rate cap and floor contracts entitle the purchaser to receive from the issuer at specified dates, the amount, if any, by which a specified market rate exceeds the cap strike interest rate or falls below the floor strike interest rate, applied to a notional principal amount. A premium payment determined at inception is made by the purchaser of the contract and no principal payments are exchanged. Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash. Financial futures are standardized commitments to either purchase or sell designated financial instruments, at a future date, for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures’ contract values are settled daily in cash. Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date. The contracts may reference commodities, which grant the purchaser the right to either purchase from or sell to the issuer commodities at a specified price, within a specified period or on a stated date. Option contracts are typically settled in cash. Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be a periodic exchange of payments at specified intervals calculated using the agreed upon rates and exchanged principal amounts. The Company’s derivative transactions conducted in insurance company subsidiaries are used in strategies permitted under the derivative use plans required by the State of Connecticut and the State of New York insurance departments. Accounting and Financial Statement Presentation of Derivative Instruments and Hedging Activities Derivative instruments are recognized on the Consolidated Balance Sheets at fair value and are reported in Other Investments and Other Liabilities. For balance sheet presentation purposes, the Company has elected to offset the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty or under a master netting agreement, which provides the Company with the legal right of offset. The Company clears certain interest rate swap and credit default swap derivative transactions through central clearing houses. OTC-cleared derivatives require initial collateral at the inception of the trade in the form of cash or highly liquid securities, such as U.S. Treasuries and government agency investments. Central clearing houses also require additional cash as variation margin based on daily market value movements. For information on collateral, see the derivative collateral arrangements section in Note 4 - Derivative Instruments of Notes to Consolidated Financial Statements. In addition, OTC-cleared transactions include price alignment amounts either received or paid on the variation margin, which are reflected in realized capital gains and losses or, if characterized as interest, in net investment income. On the date the derivative contract is entered into, the Company designates the derivative as (1) a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset or liability (“cash flow” hedge), (2) a hedge of a net investment in a foreign operation (“net investment” hedge) or (3) held for other investment and/or risk management purposes, which primarily involve managing asset or liability related risks and do not qualify for hedge accounting. Cash Flow Hedges - Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge, including foreign-currency cash flow hedges, are recorded in AOCI and are reclassified into earnings when the variability of the cash flow of the hedged item impacts earnings. Gains and losses on derivative contracts that are reclassified from AOCI to current period earnings are included in the line item in the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. For periods prior to 2019, hedge ineffectiveness was recorded immediately in current period earnings as net realized capital gains and losses. With the January 1, 2019 adoption of the updated FASB hedging guidance, ineffectiveness is recognized in earnings only when the hedged transaction affects earnings; otherwise, the ineffectiveness gains and losses remain in AOCI. Periodic derivative net coupon settlements are recorded in the line item of the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. Cash flows from cash flow hedges are presented in the same category as the cash flows from the items being hedged on the Consolidated Statements of Cash Flows. Other Investment and/or Risk Management Activities - The Company’s other investment and/or risk management activities primarily relate to strategies used to reduce economic risk or replicate permitted investments and do not receive hedge accounting treatment. Changes in the fair value, including periodic derivative net coupon settlements, of derivative instruments held for other investment and/or risk management purposes are reported in current period earnings as net realized capital gains and losses. Hedge Documentation and Effectiveness Testing To qualify for hedge accounting tre |
Fair Value Measurements Level 1
Fair Value Measurements Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework includes a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs. The fair value hierarchy levels are as follows: Level 1 Fair values based primarily on unadjusted quoted prices for identical assets, or liabilities, in active markets that the Company has the ability to access at the measurement date. Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities. Level 3 Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers. The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3. Successor Company Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2020 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs Significant Unobservable Inputs (Level 3) Assets Accounted for at Fair Value on a Recurring Basis Fixed maturities, AFS Asset backed securities ("ABS") $ 444 $ — $ 444 $ — Collateralized loan obligations ("CLOs") 1,428 — 1,169 259 Commercial mortgage-backed securities ("CMBS") 1,215 — 1,161 54 Corporate 8,552 — 8,224 328 Foreign government/government agencies 266 — 266 — Municipal 875 — 875 — Residential mortgage-backed securities ("RMBS") 769 — 615 154 U.S. Treasuries 1,326 117 1,209 — Total fixed maturities 14,875 117 13,963 795 Equity securities, at fair value 65 11 22 32 Derivative assets Foreign exchange derivatives (1) — (1) — Interest rate derivatives 6 — 4 2 Macro hedge program 7 — 7 — Total derivative assets [1] 12 — 10 2 Short-term investments 802 586 194 22 Reinsurance recoverable for GMWB 7 — — 7 Separate account assets [2] 108,748 67,679 40,609 20 Total assets accounted for at fair value on a recurring basis $ 124,509 $ 68,393 $ 54,798 $ 878 Liabilities accounted for at fair value on a recurring basis Other policyholder funds and benefits payable GMWB embedded derivative $ 21 $ — $ — $ 21 Total other policyholder funds and benefits payable 21 — — 21 Derivative liabilities Foreign exchange derivatives (1) — (1) — Interest rate derivatives (19) — (19) — Macro hedge program (460) — (19) (441) Total derivative liabilities [3] (480) — (39) (441) Modified coinsurance reinsurance contracts (93) — (93) — Total liabilities accounted for at fair value on a recurring basis $ (552) $ — $ (132) $ (420) Successor Company Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2019 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs Significant Unobservable Inputs Assets Accounted for at Fair Value on a Recurring Basis Fixed maturities, AFS ABS $ 295 $ — $ 282 $ 13 CLOs 1,150 — 1,092 58 CMBS 1,391 — 1,354 37 Corporate 8,121 — 7,734 387 Foreign government/government agencies 409 — 409 — Municipal 761 — 761 — RMBS 868 — 621 247 U.S. Treasuries 993 — 993 — Total fixed maturities 13,988 — 13,246 742 Equity securities, at fair value 45 11 1 33 Derivative assets GMWB hedging instruments 23 — — 23 Macro hedge program 49 — — 49 Total derivative assets [1] 72 — — 72 Other investments 6 — 6 — Short-term investments 550 330 214 6 Reinsurance recoverable for GMWB 17 — — 17 Separate account assets [2] 101,698 63,850 37,825 23 Total assets accounted for at fair value on a recurring basis $ 116,376 $ 64,191 $ 51,292 $ 893 Liabilities Accounted for at Fair Value on a Recurring Basis Other policyholder funds and benefits payable GMWB embedded derivative $ 5 $ — $ — $ 5 Total other policyholder funds and benefits payable 5 — — 5 Derivative liabilities Credit derivatives (1) — (1) — Foreign exchange derivatives (7) — (7) — Interest rate derivatives (39) — (37) (2) GMWB hedging instruments 50 — 35 15 Macro hedge program (163) — (1) (162) Total derivative liabilities [3] (160) — (11) (149) Modified coinsurance reinsurance contracts (43) — (43) — Total liabilities accounted for at fair value on a recurring basis $ (198) $ — $ (54) $ (144) [1] Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 3 to this table for derivative liabilities. [2] Approximately $877 and $2.4 billion of investment sales receivables, as of December 31, 2020 and 2019 (Successor Company), respectively, are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. Included in the total fair value amount are $441 and $461 of investments, as of December 31, 2020 and 2019 (Successor Company), respectively, for which the fair value is estimated using the net asset value per unit as a practical expedient which are excluded from the disclosure requirement to classify amounts in the fair value hierarchy. [3] Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. Separate Account Assets Separate account assets are primarily invested in mutual funds. Other separate account assets include fixed maturities, limited partnerships, equity securities, short-term investments and derivatives that are valued in the same manner, and using the same pricing sources and inputs, as those investments held by the Company. For limited partnerships in which fair value represents the separate account’s share of the NAV, 43% and 49% were subject to significant liquidation restrictions as of December 31, 2020 and 2019 (Successor Company), respectively. Total limited partnerships that do not allow any form of redemption were 0% as of December 31, 2020 and 2019 (Successor Company), respectively. Separate account assets classified as Level 3 primarily include long-dated bank loans, subprime RMBS and commercial mortgage loans. Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs The Company uses derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified with the same fair value hierarchy level as the associated asset or liability. Therefore, the realized and unrealized gains and losses on derivatives reported in the Level 3 roll-forward may be offset by realized and unrealized gains and losses of the associated assets and liabilities in other line items of the financial statements. The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the year ended December 31, 2020 (Successor Company), for which the Company had used significant unobservable inputs (Level 3): Fair Value Roll-forwards for Financial Instruments Classified as Level 3 Total Realized/Unrealized Gains (Losses) Fair Value as of January 1, 2020 Included in Net Income [1] [2] [6] Included in OCI [3] Purchases Settlements Sales Transfers into Transfers out of Level 3 [4] Fair Value as of December 31, 2020 Assets Fixed maturities, AFS ABS $ 13 $ — $ (1) $ 40 $ — $ — $ — $ (52) $ — CLOs 58 — 2 237 (28) — — (10) 259 CMBS 37 — (3) 18 — — 2 — 54 Corporate 387 2 12 51 (40) (24) 357 (417) 328 RMBS 247 — — 57 (64) (28) — (58) 154 Total fixed maturities, AFS 742 2 10 403 (132) (52) 359 (537) 795 Equity securities, at fair value 33 — — 1 — (2) — — 32 Freestanding derivatives Interest rate (2) 4 — — — — — — 2 GMWB hedging instruments 38 (38) — — — — — — — Total freestanding derivatives [5] 36 (34) — — — — — — 2 Reinsurance recoverable for GMWB 17 (21) — — 11 — — — 7 Separate accounts 23 — — 12 — (7) — (8) 20 Short-term investments 6 — — 22 (6) — — — 22 Total assets $ 857 $ (53) $ 10 $ 438 $ (127) $ (61) $ 359 $ (545) $ 878 (Liabilities) Freestanding derivatives Macro hedge program (113) (456) — 339 (211) — — — (441) Total freestanding derivatives [5] (113) (456) — 339 (211) — — — (441) Other policyholder funds and benefits payable Guaranteed withdrawal benefits 5 67 — — (51) — — — 21 Total other policyholder funds and benefits payable 5 67 — — (51) — — — 21 Total liabilities $ (108) $ (389) $ — $ 339 $ (262) $ — $ — $ — $ (420) The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the year ended December 31, 2019 (Successor Company), for which the Company had used significant unobservable inputs (Level 3): Fair Value Roll-forwards for Financial Instruments Classified as Level 3 Total Realized/Unrealized Gains (Losses) Fair Value as of January 1, 2019 Included in Net Income [1] [2] [6] Included in OCI [3] Purchases Settlements Sales Transfers into Transfers out of Level 3 [4] Fair Value as of December 31, 2019 Assets Fixed maturities, AFS ABS $ 2 $ — $ — $ 13 $ — $ — $ — $ (2) $ 13 CLOs 77 — — 155 (91) (5) — (78) 58 CMBS 41 — 2 53 (1) — — (58) 37 Corporate 327 (3) 16 41 (15) (106) 138 (11) 387 RMBS 443 — 1 — (75) (105) — (17) 247 Total fixed maturities, AFS 890 (3) 19 262 (182) (216) 138 (166) 742 Equity securities, at fair value 46 (4) — 2 (1) (10) — — 33 Freestanding derivatives Equity — (1) — 1 — — — — — GMWB hedging instruments 45 (35) — — 28 — — — 38 Total freestanding derivatives [5] 45 (36) — 1 28 — — — 38 Reinsurance recoverable for GMWB 40 (34) — — 11 — — — 17 Separate accounts 40 — — 82 — (14) 12 (97) 23 Short-term investments — — — 6 — — — — 6 Total assets $ 1,061 $ (77) $ 19 $ 353 $ (144) $ (240) $ 150 $ (263) $ 859 (Liabilities) Freestanding derivatives Interest rate $ (27) $ (6) $ — $ — $ 31 $ — $ — $ — $ (2) Macro hedge program 247 (359) — (1) — — — — (113) Total freestanding derivatives [5] 220 (365) — (1) 31 — — — (115) Other policyholder funds and benefits payable Guaranteed withdrawal benefits (80) 134 — — (49) — — — 5 Total other policyholder funds and benefits payable (80) 134 — — (49) — — — 5 Total liabilities $ 140 $ (231) $ — $ (1) $ (18) $ — $ — $ — $ (110) [1] The Company classifies realized and unrealized gains (losses) on GMWB reinsurance derivatives and GMWB embedded derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives. [2] Amounts in these columns are generally reported in net realized capital gains (losses). The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization. [3] All amounts are before income taxes and amortization. [4] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. Transfers into and out of Level 3 for the year ended December 31, 2020, were primarily related to private securities that were priced using internal matrix pricing in the prior period, but changed to broker pricing in the current period and inversely, private securities that were priced using broker pricing in the prior period, but changed to internal matrix pricing in the current period. [5] Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported on the Consolidated Balance Sheets in other investments and other liabilities. [6] Includes both market and non-market impacts in deriving realized and unrealized gains (losses). Changes in Unrealized Gains (Losses) included in Net Income for Financial Instruments Classified as Level 3 Still Held at End of Period [1] [2] Successor Company For the Years Ended December 31, 2020 2019 Assets Fixed maturities, AFS Corporate $ — $ (4) Total fixed maturities, AFS — (4) Equity securities, at fair value — (2) Freestanding derivatives Equity — (1) Interest rate 6 (6) GMWB hedging instruments [3] (16) (35) Total freestanding derivatives (10) (42) Reinsurance recoverable for GMWB (21) (34) Total assets $ (31) $ (82) (Liabilities) Freestanding derivatives Macro hedge program [3] $ (212) $ (359) Total freestanding derivatives (212) (359) Other policyholder funds and benefits payable Guaranteed withdrawal benefits 67 134 Total other policyholder funds and benefits payable 67 134 Total liabilities $ (145) $ (225) [1] All amounts presented are reported in net realized capital gains (losses).The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization. [2] Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein. [3] The dynamic hedge program, which included GMWB hedging instruments, was closed in the first half of 2020. Any risks previously covered by the dynamic hedging program are now covered by the macro hedge program. Changes in Unrealized Gains (Losses) included in OCI for Financial Instruments Classified as Level 3 Still Held at End of Period [1] Successor Company For the Years Ended December 31, 2020 2019 Assets Fixed maturities, AFS CLOs $ 1 $ — CMBS (3) 1 Corporate 7 17 RMBS (1) 1 Total fixed maturities, AFS 4 19 Total assets $ 4 $ 19 [1] Changes in unrealized gains (losses) on fixed maturities, AFS are reported in changes in net unrealized gain on securities on the Consolidated Statements of Comprehensive Income (Loss). Financial Assets and Liabilities Not Carried at Fair Value (Successor Company) Fair Value Carrying Amount [1] Fair Carrying Amount Fair December 31, 2020 December 31, 2019 Assets Policy loans Level 3 $ 1,452 $ 1,452 $ 1,467 $ 1,467 Mortgage loans Level 3 $ 2,092 $ 2,248 $ 2,241 $ 2,331 Liabilities Other policyholder funds and benefits payable [2] Level 3 $ 5,282 $ 5,261 $ 6,049 $ 5,912 Assumed investment contracts [3] Level 3 $ — $ — $ 1 $ 1 [1] As of December 31, 2020, carrying amount of mortgage loans is net of ACL of $17. [2] Excludes group accident and health and universal life insurance contracts, including corporate owned life insurance. [3] Included in other liabilities on the Consolidated Balance Sheets. |
Investment Holding Level 1 (Not
Investment Holding Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Investment Holdings [Text Block] | Net Investment Income Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 (Before tax) 2020 2019 Fixed maturities [1] $ 518 $ 586 $ 343 $ 395 Equity securities 7 6 9 4 Mortgage loans 92 92 49 54 Policy loans 82 84 48 32 Limited partnerships and other alternative investments 130 161 67 41 Other investments [2] 13 19 11 13 Investment expenses (26) (24) (18) (19) Total net investment income $ 816 $ 924 $ 509 $ 520 [1] Includes net investment income on short-term investments. [2] Includes income from derivatives that qualify for hedge accounting and hedge fixed maturities along with income on assets from the Corporate Owned Life Insurance ("COLI") block of business. Net Realized Capital Gains (Losses) Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 (Before tax) 2020 2019 Gross gains on sales $ 166 $ 67 $ 12 $ 49 Gross losses on sales (32) (18) (38) (112) Equity securities [1] 1 2 (21) 2 Net credit losses on fixed maturities, AFS [2] (1) Change in ACL on mortgage loans [3] (8) Intent-to-sell impairments (6) — (1) — Net OTTI losses recognized in earnings (4) (6) — Valuation allowances on mortgage loans — (5) — Results of variable annuity hedge program: GMWB derivatives, net 82 53 12 12 Macro hedge program (414) (418) 153 (36) Total results of variable annuity hedge program (332) (365) 165 (24) Transactional foreign currency revaluation 3 (4) 9 (6) Non-qualifying foreign currency derivatives (7) (4) (10) 7 Other, net [4] 142 51 37 (23) Net realized capital gains (losses) $ (74) $ (275) $ 142 $ (107) [1] The net unrealized gains (losses) on equity securities included in net realized capital gains (losses) related to equity securities still held as of December 31, 2020 (Successor Company), were $4 for the year ended December 31, 2020 (Successor Company).The net unrealized gains (losses) on equity securities included in net realized capital gains (losses) related to equity securities still held as of December 31, 2019 (Successor Company), were $(2) for the year ended December 31, 2019 (Successor Company).The net unrealized gains (losses) on equity securities included in net realized capital gains (losses) related to equity securities were $(14) for the period of June 1, 2018 to December 31, 2018 (Successor Company), and $(3) for the period of January 1, 2018 to May 31, 2018 (Predecessor Company). [2] Due to the adoption of accounting guidance for credit losses on January 1, 2020, realized capital losses previously reported as OTTI are now presented as credit losses which are net of any recoveries. For further information, refer to Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. [3] Represents the change in ACL recorded during the period following the adoption of accounting guidance for credit losses on January 1, 2020. For further information, refer to Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. [4] Includes gains (losses) on non-qualifying derivatives, excluding foreign currency derivatives, of $149 for the year ended December 31, 2020 (Successor Company), $54 for the year ended December 31, 2019 (Successor Company), $35 for the period of June 1, 2018 to December 31, 2018 (Successor Company), and $(10) for the period of January 1, 2018 to May 31, 2018 (Predecessor Company). Sales of AFS Securities Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Fixed maturities, AFS Sale proceeds $ 1,789 $ 2,541 $ 2,523 $ 3,523 Gross gains 165 67 12 45 Gross losses (31) (16) (37) (47) Sales of AFS securities in 2020 were primarily a result of tactical changes to the portfolio as a result of changing market conditions and to a lesser extent duration and liquidity management. Accrued Interest Receivable on Fixed Maturities, AFS and Mortgage Loans As of December 31, 2020 and 2019 (Successor Company), the Company reported accrued interest receivable related to fixed maturities, AFS of $114 and $122, respectively, and accrued interest receivable related to mortgage loans of $7 and $8, respectively. These amounts are recorded in other assets on the Consolidated Balance Sheets and are not included in the amortized cost or fair value of the fixed maturities or mortgage loans. The Company does not include the current accrued interest receivable balance when estimating the ACL. The Company has a policy to write-off accrued interest receivable balances that are more than 90 days past due. Write-offs of accrued interest receivable are recorded as a credit loss component of realized capital gains and losses. Interest income on fixed maturities and mortgage loans is accrued unless it is past due over 90 days or management deems the interest uncollectible. Recognition and Presentation of Intent-to-Sell Impairments and ACL on Fixed Maturities, AFS The Company will record an "intent-to-sell impairment" as a reduction to the amortized cost of fixed maturities, AFS in an unrealized loss position if the Company intends to sell or it is more likely than not that the Company will be required to sell the fixed maturity before a recovery in value. A corresponding charge is recorded in net realized capital losses equal to the difference between the fair value on the impairment date and the amortized cost basis of the fixed maturity before recognizing the impairment. When fixed maturities are in an unrealized loss position and the Company does not record an intent-to-sell impairment, the Company will record an ACL, through net realized capital gains and losses, for the portion of the unrealized loss due to a credit loss. Any remaining unrealized loss on a fixed maturity after recording an ACL is the non-credit amount and is recorded in OCI. The ACL is the excess of the amortized cost over the greater of the Company's best estimate of the present value of expected future cash flows or the security's fair value. Cash flows are discounted at the effective yield that is used to record interest income. The ACL cannot exceed the unrealized loss and, therefore, it may fluctuate with changes in the fair value of the fixed maturity if the fair value is greater than the Company's best estimate of the present value of expected future cash flows. The initial ACL and any subsequent changes are recorded in net realized capital gains and losses. The ACL is written off against the amortized cost in the period in which all or a portion of the related fixed maturity investment is determined to be uncollectible. Prior to January 1, 2020, the Company recorded an OTTI for those fixed maturities for which the Company did not expect to recover the entire amortized cost basis. For these securities, the excess of the amortized cost basis over its fair value was separated into the portion representing a credit OTTI, which was recorded in net realized capital losses, and the remaining non-credit amount, which was recorded in OCI. The credit OTTI amount is the excess of its amortized cost basis over the Company’s best estimate of discounted expected future cash flows. The non-credit amount is the excess of the best estimate of the discounted expected future cash flows over the fair value.The Company’s best estimate of discounted expected future cash flows became the new cost basis and accreted prospectively into net investment income over the estimated remaining life of the security. Amounts previously recognized in accumulated other comprehensive income as of the ASU 2016-13 guidance adoption date that relate to improvements in cash flows expected to be collected will continue to be accreted into income over the asset's remaining life. Developing the Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company's considerations include, but are not limited to (a) changes in the financial condition of the issuer and/or the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security. For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, instrument-specific developments including changes in credit ratings, industry earnings multiples and the issuer’s ability to restructure, access capital markets, and execute asset sales. For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value ratios ("LTVs"), average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value. ACL on Fixed Maturities, AFS by Type for the Year Ended December 31, 2020 (Successor Company) (Before tax) Corporate Total Balance, beginning of year $ — $ — Credit losses on fixed maturities where an allowance was not previously recorded 1 1 Balance as of end of period $ 1 $ 1 Cumulative Credit Impairments on Fixed Maturities, AFS Successor Company Predecessor Company For the Year Ended December 31, 2019 June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 (Before tax) Balance as of beginning of period $ (6) $ — $ (88) Additions for credit impairments recognized on [1]: Fixed maturities not previously impaired (4) (6) — Reductions for credit impairments previously recognized on: Fixed maturities that matured or were sold during the period 6 — 17 Fixed maturities due to an increase in expected cash flows — — 1 Balance as of end of period $ (4) $ (6) $ (70) [1] These additions are included in net realized capital gains (losses) on the Consolidated Statements of Operations. Fixed Maturities, AFS Fixed Maturities, AFS by Type Successor Company December 31, 2020 December 31, 2019 Amortized Cost [1] ACL [2] Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost [1] Gross Unrealized Gains Gross Unrealized Losses Fair Value Non-Credit OTTI [3] ABS $ 436 $ — $ 8 $ — $ 444 $ 291 $ 4 $ — $ 295 $ — CLOs 1,425 — 7 (4) 1,428 1,150 6 (6) 1,150 — CMBS 1,152 — 77 (11) 1,215 1,331 65 (3) 1,391 — Corporate 7,240 (1) 1,296 (12) 8,552 7,403 696 (7) 8,121 — Foreign govt./govt. agencies 236 — 32 — 266 382 30 (1) 409 — Municipal 761 — 115 (1) 875 705 56 — 761 — RMBS 745 — 26 (2) 769 853 16 (1) 868 — U.S. Treasuries 1,142 — 192 (8) 1,326 905 88 — 993 — Total fixed maturities, AFS $ 13,137 $ (1) $ 1,753 $ (38) $ 14,875 $ 13,020 $ 961 $ (18) $ 13,988 $ — [1] The cost or amortized cost of assets that support modified coinsurance reinsurance contracts were not adjusted as part of the application of pushdown accounting. As a result, gross unrealized gains (losses) only include subsequent changes in value recorded in AOCI beginning June 1, 2018. Prior changes in value have been recorded in additional paid-in capital. [2] Represents the ACL recorded following the adoption of accounting guidance for credit losses on January 1, 2020. For further information refer to Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. [3] Represents the amount of cumulative non-credit impairment losses recognized in OCI on fixed maturities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2019 (Successor Company). Fixed maturities, AFS, by Contractual Maturity Year Successor Company December 31, 2020 December 31, 2019 Contractual Maturity Amortized Fair Amortized Fair One year or less $ 238 $ 241 $ 295 $ 300 Over one year through five years 1,376 1,462 1,260 1,297 Over five years through ten years 1,808 2,052 1,824 1,951 Over ten years 5,957 7,264 6,016 6,736 Subtotal 9,379 11,019 9,395 10,284 Mortgage-backed and asset-backed securities 3,758 3,856 3,625 3,704 Total fixed maturities, AFS $ 13,137 $ 14,875 $ 13,020 $ 13,988 Estimated maturities may differ from contractual maturities due to call or prepayment provisions. Due to the potential for variability in payment speeds (i.e. prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity. Concentration of Credit Risk The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholder's equity, other than the U.S. government and certain U.S. government agencies as of December 31, 2020 or 2019 (Successor Company). As of December 31, 2020 (Successor Company), other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were the IBM Corporation, Walt Disney Company, and Wells Fargo & Company, which each comprised less than 1% of total invested assets. As of December 31, 2019 (Successor Company), other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were the IBM Corporation, Walt Disney Company, and the Microsoft Corporation, which each comprised less than 1% of total invested assets. The Company’s three largest exposures by sector as of December 31, 2020 (Successor Company), were financial services, utilities, and the CLO sector which comprised approximately 8%, 8%, and 7%, respectively, of total invested assets. The Company’s three largest exposures by sector as of December 31, 2019 (Successor Company) were utilities, CMBS, and financial services which comprised approximately 7%, 7%, and 7%, respectively, of total invested assets. Unrealized Losses on Fixed Maturities, AFS Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2020 Successor Company Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized ABS $ — $ — $ 16 $ — $ 16 $ — CLOs 346 (1) 411 (3) 757 (4) CMBS 214 (11) 2 — 216 (11) Corporate 110 (9) 63 (3) 173 (12) Foreign govt./govt. agencies 1 — — — 1 — Municipal 28 (1) — — 28 (1) RMBS 223 (1) 39 (1) 262 (2) U.S. Treasuries 236 (8) — — 236 (8) Total fixed maturities, AFS in an unrealized loss position $ 1,158 $ (31) $ 531 $ (7) $ 1,689 $ (38) Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2019 Successor Company Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized ABS $ 51 $ — $ 14 $ — $ 65 $ — CLOs 188 (1) 642 (5) 830 (6) CMBS 93 (2) 9 (1) 102 (3) Corporate 144 (3) 176 (4) 320 (7) Foreign govt./govt. agencies 5 — 30 (1) 35 (1) Municipal 51 — — — 51 — RMBS 80 — 87 (1) 167 (1) U.S. Treasuries 13 — — — 13 — Total fixed maturities, AFS in an unrealized loss position $ 625 $ (6) $ 958 $ (12) $ 1,583 $ (18) As of December 31, 2020 (Successor Company), fixed maturities, AFS in an unrealized loss position consisted of 377 instruments, primarily in the corporate sectors, most notably energy issuers and issuers in the transportation services sector, and CMBS which were depressed largely due to widening of credit spreads since the purchase date. As of December 31, 2020 (Successor Company), 99% of these fixed maturities were depressed less than 20% of cost or amortized cost. The increase in unrealized losses during 2020 was primarily attributable to wider credit spreads within higher yielding corporates and CMBS and higher interest rates on U.S. Treasuries purchased earlier in the year. Most of the fixed maturities depressed for twelve months or more relate to CLOs and corporates. CLO securities and corporate fixed maturities were primarily depressed because current market spreads are wider than at the respective purchase dates. The Company neither has an intention to sell nor does it expect to be required to sell the fixed maturities outlined in the preceding discussion. The decision to record credit losses on fixed maturities, AFS in the form of an ACL requires us to make qualitative and quantitative estimates of expected future cash flows. Actual cash flows could deviate significantly from our expectations resulting in realized losses in future periods. Mortgage Loans ACL on Mortgage Loans The Company reviews mortgage loans on a quarterly basis to estimate the ACL, with changes in the ACL recorded in net realized capital gains and losses. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. The Company utilizes a third-party forecasting model to estimate lifetime expected credit losses at a loan level under multiple economic scenarios. The scenarios use macroeconomic data provided by an internationally recognized economics firm that generates forecasts of varying economic factors such as GDP growth, unemployment and interest rates. The economic scenarios are projected over 10 years. The first two to four years of the 10-year period assume a specific modeled economic scenario (including moderate upside, moderate recession and severe recession scenarios) and then revert to historical long-term assumptions over the remaining period. Using these economic scenarios, the forecasting model projects property-specific operating income and capitalization rates used to estimate the value of a future operating income stream. The operating income and the property valuations derived from capitalization rates are compared to loan payment and principal amounts to create debt-service coverage ratios ("DSCRs") and LTVs over the forecast period. The model overlays historical data about mortgage loan performance based on DSCRs and LTVs and projects the probability of default, amount of loss given a default and resulting expected loss through maturity for each loan under each economic scenario. Economic scenarios are probability-weighted based on a statistical analysis of the forecasted economic factors and qualitative analysis. The Company records the change in the ACL on mortgage loans based on the weighted-average expected credit losses across the selected economic scenarios. In response to significant economic stress experienced as a result of the COVID-19 pandemic during 2020 the Company increased the weight of both a moderate and severe recession in our estimate of the ACL. The Company continues to monitor economic uncertainty including rising COVID-19 infections leading to short-term lockdowns and the corresponding impact that this might have on the mortgage loan portfolio. The ultimate impact to the Company’s financial statements could vary significantly from our estimates depending on, among other things, the duration and severity of the pandemic, the duration and severity of the economic downturn and the degree to which federal, state and local government actions to mitigate the economic impact of COVID-19 are effective. The impact on our commercial mortgage loan portfolio will also be impacted by borrower behavior in response to the economic stress. Borrowers with lower LTVs have an incentive to continue to make payments of principal and/or interest in order to preserve the equity they have in the underlying commercial real estate properties. As property values decline, borrowers have less incentive to continue to make payments. When a borrower is experiencing financial difficulty, including when foreclosure is probable, the Company measures an ACL on individual mortgage loans.The ACL is established for any shortfall between the amortized cost of the loan and the fair value of the collateral less costs to sell. Estimates of collectibility from an individual borrower require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates. As of December 31, 2020 (Successor Company), the Company did not have any mortgage loans for which an ACL was established on an individual basis. There were no mortgage loans held-for-sale as of December 31, 2020 or 2019 (Successor Company). As of December 31, 2020 (Successor Company), the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract. Prior to January 1, 2020, the accounting model was based on an incurred loss approach. Mortgage loans were considered to be impaired when management estimated that, based upon current information and events, it was probable that the Company would be unable to collect amounts due according to the contractual terms of the loan agreement. For mortgage loans that were deemed impaired, a valuation allowance was established for the difference between the carrying amount and estimated value. Changes in valuation allowances were recorded in net realized capital gains and losses. ACL on Mortgage Loans Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Balance as of January 1, $ — $ 5 $ — $ — Cumulative effect of accounting changes [1] 9 Adjusted beginning ACL [2] 9 5 — — Current period provision (release) 8 (5) 5 — Balance as of December 31, $ 17 $ — $ 5 $ — [1] Represents the establishment of ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information, refer to Note 1 - Basis of Presentation and Significant Accounting Policies. [2] Prior to adoption of accounting guidance for credit losses on January 1, 2020, amounts were presented as a valuation allowance on mortgage loans. The increase in the allowance for the year-ended December 31, 2020 (Successor Company) is the result of the COVID-19 pandemic and its impacts on the economic forecasts, as discussed above, as well as lower estimated property values and operating income as compared to the prior year. The weighted-average LTV ratio of the Company’s mortgage loan portfolio was 54% as of December 31, 2020 (Successor Company), while the weighted-average LTV ratio at origination of these loans was 62%. LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan with property values based on appraisals updated no less than annually. Factors considered in estimating property values include, among other things, actual and expected property cash flows, geographic market data and the ratio of the property's net operating income to its value. DSCR compares a property’s net operating income to the borrower’s principal and interest payments and are updated no less than annually through reviews of underlying properties. Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2020 (Successor Company) 2020 2019 2018 2017 2016 2015 & Prior Total Loan-to-Value Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost [1] Avg. DSCR 65% - 80% 6 1.24x 78 1.56x 175 1.75x 94 1.98x 1 2.95x 54 1.12x 408 1.68x Less than 65% 164 2.26x 207 2.95x 178 2.24x 248 2.35x 176 2.90x 728 2.29x 1,701 2.44x Total mortgage loans $ 170 2.23x $ 285 2.56x $ 353 1.99x $ 342 2.25x $ 177 2.90x $ 782 2.21x $ 2,109 2.29x [1] Amortized cost of mortgage loans excludes ACL of $17. Mortgage Loans LTV & DSCR as of December 31, 2019 (Successor Company) Loan-to-Value Amortized Cost Avg. DSCR 65% - 80% $ 269 1.74x Less than 65% 1,972 2.44x Total mortgage loans $ 2,241 2.36x Mortgage Loans by Region Successor Company December 31, 2020 December 31, 2019 Amortized Percent of Total Amortized Percent of Total East North Central $ 80 3.8 % $ 67 3.0 % East South Central 19 0.9 % 19 0.9 % Middle Atlantic 154 7.3 % 204 9.1 % Mountain 78 3.7 % 75 3.3 % New England 83 3.9 % 85 3.8 % Pacific 562 26.7 % 646 28.8 % South Atlantic 569 27.0 % 510 22.8 % West South Central 213 10.1 % 209 9.3 % Other [2] 351 16.6 % 426 19.0 % Total mortgage loans $ 2,109 100 % $ 2,241 100 % [1] Amortized cost of mortgage loans excludes ACL of $17. [2] Primarily represents loans collateralized by multiple properties in various regions. Mortgage Loans by Property Type Successor Company December 31, 2020 December 31, 2019 Amortized Percent of Total Amortized Percent of Total Commercial Industrial $ 602 28.6 % $ 603 26.9 % Lodging 22 1.0 % 24 1.1 % Multifamily 536 25.4 % 576 25.7 % Office 481 22.8 % 471 21.0 % Retail 418 19.8 % 398 17.8 % Single Family 50 2.4 % 120 5.3 % Other — — % 49 2.2 % Total mortgage loans $ 2,109 100 % $ 2,241 100 % [1] Amortized cost of mortgage loans excludes ACL of $17. Past-Due Mortgage Loans Mortgage loans are considered past due if a payment of principal or interest is not received according to the contractual terms of the loan agreement, which typically includes a grace period. As of December 31, 2020 and 2019 (Successor Company), the Company held no mortgage loans considered past due. Purchased Financial Assets with Credit Deterioration Purchased financial assets with credit deterioration ("PCD") are purchased financial assets with a “more-than-insignificant” amount of credit deterioration since origination. PCD assets are assessed only at initial acquisition date and for any investments identified, the Company records an allowance at acquisition with a corresponding increase to the amortized cost basis. As of December 31, 2020 (Successor Company), the Company held no PCD fixed maturities, AFS or mortgage loans. Variable Interest Entities The Company is engaged with various special purpose entities and other entities that are deemed to be variable interest entities ("VIEs") primarily as an investor through normal investment activities. A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE on the Company’s Consolidated Financial Statements. As of December 31, 2020 and 2019 (Successor Company), the Company did not hold any VIEs for which it was the primary beneficiary. Non-Consolidated VIEs The Company, through normal investment activities, makes passive investments in limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of December 31, 2020 and 2019 (Successor Company) is limited to the total carrying value of $975 and $914, respectively, which are included in limited partnerships and other alternative investments on the Company's Consolidated Balance Sheets. As of December 31, 2020 and 2019 (Successor Company), the Company had outstanding commitments totaling $461 and $474, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management. In addition, the Company also makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in ABS, CLOs, CMBS and RMBS in the Available-for-Sale Securities table on the Company’s Consolidated Balance Sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits and the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment. Repurchase Agreements and Other Collateral Transactions The Company enters into securities financing transactions as a way to earn additional income or manage liquidity, primarily through repurchase agreements. Repurchase Agreements From time to time, the Company enters into repurchase agreements to manage liquidity or to earn incremental income. A repurchase agreement is a transaction in which one party (transferor) agrees to sell securities to another party (transferee) in return for cash (or securities), with a simultaneous agreement to repurchase the same securities at a specified price at a later date. The maturity of these transactions is generally of ninety days or less. Repurchase agreements include master netting provisions that provide both parties the right to offset claims and apply securities held by them with respect to their obligations in the event of a default. Although the Company has the contractual right to offset claims, the Company's current positions do not meet the specific conditions for net presentation. Under repurchase agreements, the Company transfers collateral of U.S. government and government agency securities and receives cash. For repurchase agreements, the Company obtains cash in an amount equal to at least 95% of the fair value of the securities transferred. The agreements require additional collateral to be transferred under specified conditions and provide the counterparty the right to sell or re-pledge the securities transferred. The cash received from the repurchase program is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's Consolidated Balance Sheets. The Company accounts for the repurchase agreements as collateralized borrowings. The securities transferred under repurchase agreements are included in fixed maturities, AFS with the obligation to repurchase those securities recorded in other liabilities on the Company's Consolidated Balance Sheets. From time to time, the Company enters into reverse repurchase agreements where the Company purchases securities and simultaneously agrees to resell the same or substantially the same securities. The maturity of these transactions is generally within one year. The agreements require additional collateral to be transferred to the Company under specified conditions and the Company has the right to sell or re-pledge the securities received. The Company accounts for reverse repurchase agreements as collateralized financing. The receivable for reverse repurchase agreements is included within short-term investments in the Company's Consolidated Balance Sheets. Repurchase Agreements Successor Company December 31, 2020 December 31, 2019 Fair Value Fair Value Repurchase agreements: Gross amount of recognized liabilities for repurc |
Derivative Instruments Level 1
Derivative Instruments Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Instruments The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate risk or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies. The Company also may enter into and has previously issued financial instruments and products that either are accounted for as free-standing derivatives, such as certain reinsurance contracts, or as embedded derivative instruments, such as certain GMWB riders included with certain variable annuity products. Strategies that Qualify for Hedge Accounting Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 of these financial statements. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities or liability contracts. As a result of pushdown accounting, derivative instruments that previously qualified for hedge accounting were de-designated and recorded at fair value through adjustments to additional paid in capital at the acquisition date. The hedge strategies by hedge accounting designation include: Cash Flow Hedges Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on floating-rate fixed maturity securities to fixed rates. Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts and liability payments to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates. Non-qualifying Strategies Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include the hedge program for the Company's variable annuity products as well as the hedging and replication strategies that utilize credit default swaps. In addition, hedges of interest rate, foreign currency and equity risk of certain fixed maturities, equities and liabilities do not qualify for hedge accounting. The non-qualifying strategies include: Interest Rate Swaps, Swaptions and Futures The Company uses interest rate swaps, swaptions and futures to manage interest rate duration between assets and liabilities in certain investment portfolios. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap. As of December 31, 2020 and 2019 (Successor Company), the notional amount of interest rate swaps in offsetting relationships was $1.3 billion for both years. Foreign Currency Swaps and Forwards The Company enters into foreign currency swaps to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S. dollars. The Company also enters into foreign currency forwards to hedge non-U.S. dollar denominated cash. Fixed Payout Annuity Hedge The Company previously had obligations for certain yen denominated fixed payout annuities under an assumed reinsurance contract. The Company had in place swap contracts to hedge the currency and yen interest rate exposure between the U.S. dollar denominated assets and the yen denominated fixed liability reinsurance payments. The last swap matured on October 31, 2019. Credit Contracts Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty or the Company should the referenced security issuers experience a credit event, as defined in the contract. In addition, the Company enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward. Equity Index Swaps and Options The Company enters into equity index options to hedge the impact of a decline in the equity markets on the investment portfolio. Macro Hedge Program The Company utilizes equity swaps, options and futures as well as interest rate swaps to provide protection against the statutory tail scenario risk to the Company's statutory surplus arising from higher GMWB and guaranteed minimum death benefits ("GMDB") claims as well as lower variable annuity fee revenue. GMWB Derivatives, net The Company formerly offered certain variable annuity products with GMWB riders. The GMWB product is a bifurcated embedded derivative (“GMWB product derivatives”) that has a notional value equal to the GRB. The Company uses reinsurance contracts to transfer a portion of its risk of loss due to GMWB. The reinsurance contracts covering GMWB (“GMWB reinsurance contracts”) are accounted for as free-standing derivatives with a notional amount equal to the GRB reinsured. During 2020, the Company closed the dynamic hedging program as the targeted risk exposure was no longer significant. Any risks covered previously under the dynamic hedging program are now covered by the macro hedge program. The Company previously utilized derivatives (“GMWB hedging instruments”) as part of a dynamic hedging program designed to hedge a portion of the capital market risk exposures of the non-reinsured GMWB riders. The GMWB hedging instruments hedged changes in interest rates, equity market levels, and equity volatility. These derivatives included customized swaps, interest rate swaps and futures, and equity swaps, options and futures, on certain indices including the S&P 500 index, EAFE index and NASDAQ index. The Company retained the risk for differences between assumed and actual policyholder behavior and between the performance of the actively managed funds underlying the separate accounts and their respective indices. GMWB Hedging Instruments Successor Company Notional Amount Fair Value December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Customized swaps $ 3,938 $ 34 Equity swaps, options, and futures 855 (2) Interest rate swaps and futures 2,189 41 Total $ 6,982 $ 73 Modified Coinsurance Reinsurance Contracts As of December 31, 2020 and 2019 (Successor Company), the Company had approximately $843 and $819, respectively, of invested assets supporting other policyholder funds and benefits payable reinsured under a modified coinsurance arrangement in connection with the sale of the Individual Life business, which was structured as a reinsurance transaction. The assets are primarily held in a trust established by the Company. The Company pays or receives cash quarterly to settle the operating results of the reinsured business, including the investment results. As a result of this modified coinsurance arrangement, the Company has an embedded derivative that transfers to the reinsurer certain unrealized changes in fair value of investments subject to interest rate and credit risk. The notional amount of the embedded derivative reinsurance contracts are the invested assets which are carried at fair value and support the reinsured reserves. Derivative Balance Sheet Classification For reporting purposes, the Company has elected to offset within assets or liabilities based upon the net of the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty under a master netting agreement, which provides the Company with the legal right of offset. The following fair value amounts do not include income accruals or related cash collateral receivables and payables, which are netted with derivative fair value amounts to determine balance sheet presentation. Derivatives in the Company’s separate accounts, where the associated gains and losses accrue directly to policyholders are not included in the table below. The Company’s derivative instruments are held for risk management purposes, unless otherwise noted in the following table. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the table to quantify the volume of the Company’s derivative activity. Notional amounts are not necessarily reflective of credit risk. The following tables exclude investments that contain an embedded credit derivative for which the Company has elected the fair value option. Successor Company Net Derivatives Asset Derivatives Liability Derivatives Notional Amount Fair Value Fair Value Fair Value Hedge Designation/ Derivative Type Dec 31, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 Cash flow hedges Foreign currency swaps $ 25 $ 10 $ (2) $ — $ — $ — $ (2) $ — Total cash flow hedges 25 10 (2) — — — (2) — Non-qualifying strategies Interest rate contracts Interest rate swaps and futures 3,419 3,082 (13) (39) 28 11 (41) (50) Foreign exchange contracts Foreign currency swaps and forwards 222 225 — (7) 8 9 (8) (16) Credit contracts Credit derivatives that purchase credit protection 40 40 — (1) — — — (1) Equity contracts Equity index swaps and options 2,000 2,000 — — — — — — Variable annuity hedge program GMWB product derivatives [1] 7,803 8,717 21 5 33 23 (12) (18) GMWB reinsurance contracts 1,688 1,869 7 17 7 17 — — GMWB hedging instruments — 6,982 — 73 — 89 — (16) Macro hedge program 24,188 19,879 (453) (114) 268 98 (721) (212) Other Modified coinsurance reinsurance contracts 843 819 (93) (43) — — (93) (43) Total non-qualifying strategies 40,203 43,613 (531) (109) 344 247 (875) (356) Total cash flow hedges and non-qualifying strategies $ 40,228 $ 43,623 $ (533) $ (109) $ 344 $ 247 $ (877) $ (356) Balance Sheet Location Fixed maturities, available-for-sale $ 49 $ 43 $ — $ — $ — $ — $ — $ — Other investments 5,791 5,779 12 72 13 83 (1) (11) Other liabilities 24,054 26,396 (480) (160) 291 124 (771) (284) Reinsurance recoverables 2,531 2,688 (86) (26) 7 17 (93) (43) Other policyholder funds and benefits payable 7,803 8,717 21 5 33 23 (12) (18) Total derivatives $ 40,228 $ 43,623 $ (533) $ (109) $ 344 $ 247 $ (877) $ (356) [1] These derivatives are embedded within liabilities and are not held for risk management purposes. Offsetting of Derivative Assets/Liabilities The following tables present the gross fair value amounts, the amounts offset, and net position of derivative instruments eligible for offset on the Company's Consolidated Balance Sheets. Amounts offset include fair value amounts, income accruals and related cash collateral receivables and payables associated with derivative instruments that are traded under a common master netting agreement, as described in the preceding discussion. Also included in the tables are financial collateral receivables and payables, which are contractually permitted to be offset upon an event of default, although are disallowed for offsetting under U.S. GAAP. Offsetting Derivative Assets and Liabilities (Successor Company) (i) (ii) (iii) = (i) - (ii) (v) = (iii) - (iv) Net Amounts Presented on the Statement of Financial Position Collateral Disallowed for Offset on the Statement of Financial Position Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset on the Statement of Financial Position Derivative Assets [1] (Liabilities) [2] Accrued Interest and Cash Collateral (Received) [3] Pledged [2] Financial Collateral (Received) Pledged [4] Net Amount As of December 31, 2020 Other investments $ 304 $ 295 $ 12 $ (3) $ — $ 9 Other liabilities (772) (279) (480) (13) (488) (5) As of December 31, 2019 Other investments $ 207 $ 187 $ 72 $ (52) $ 8 $ 12 Other liabilities (295) (91) (160) (44) (204) — [1] Included in other invested assets on the Company's Consolidated Balance Sheets. [2] Included in other liabilities on the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [3] Included in other investments on the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty. [4] Excludes collateral associated with exchange-traded derivative instruments. Cash Flow Hedges For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. Derivatives in Cash Flow Hedging Relationships Gain (Loss) Recognized in OCI Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Interest rate swaps $ — $ — $ — $ (17) Foreign currency swaps (2) — — — Total $ (2) $ — $ — $ (17) Derivatives in Cash Flow Hedging Relationships (Successor Company) Gain or (Loss) Reclassified from AOCI into Income For the Years Ended December 31, June 1, 2018 to 2020 2019 Net Capital Net Investment Income Net Capital Net Investment Income Net Capital Net Investment Income Interest rate swaps — — — — — — Foreign currency swaps — — — — — — Total $ — $ — $ — $ — $ — $ — Total Amounts Presented on the Consolidated Statements of Operations $ (74) $ 816 $ (275) $ 924 $ 142 $ 509 Derivatives in Cash Flow Hedging Relationships (Predecessor Company) Gain or (Loss) Reclassified from AOCI into Income January 1, 2018 to May 31, 2018 Net Capital Net Investment Income Interest rate swaps $ — $ 8 Foreign currency swaps (2) — Total (2) 8 Total Amounts Presented on the Consolidated Statements of Operations $ (107) $ 520 As of December 31, 2020, the before tax deferred net gains on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months is less than $1. This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities that will occur over the next twelve months, at which time the Company will recognize the deferred net gains (losses) as an adjustment to net investment income over the term of the investment cash flows. For all periods presented, the Company had no net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring. Non-qualifying Strategies For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized capital gains (losses). Non-qualifying Strategies Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Variable annuity hedge program GMWB product derivatives $ 67 $ 134 $ (25) $ 82 GMWB reinsurance contracts (27) (13) 1 (25) GMWB hedging instruments 42 (68) 36 (45) Macro hedge program (414) (418) 153 (36) Total variable annuity hedge program (332) (365) 165 (24) Foreign exchange contracts Foreign currency swaps and forwards (4) — 2 (3) Fixed payout annuity hedge — (4) (15) 10 Total foreign exchange contracts (4) (4) (13) 7 Other non-qualifying derivatives Interest rate contracts Interest rate swaps, swaptions, and futures 180 103 23 (40) Credit contracts Credit derivatives that purchase credit protection 19 — — 1 Credit derivatives that assume credit risk — 7 (1) (3) Equity contracts Equity index swaps and options — (1) — — Other Modified coinsurance reinsurance contracts (50) (55) 13 32 Total other non-qualifying derivatives 149 54 35 (10) Total [1] $ (187) $ (315) $ 187 $ (27) [1] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. Credit Risk Assumed through Credit Derivatives The Company enters into credit default swaps that assume credit risk of a single entity or referenced index in order to synthetically replicate investment transactions that are permissible under the Company's investment policies. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced security issuer’s debt obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk primarily reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers. The diversified portfolios of corporate issuers are established within sector concentration limits and may be divided into tranches that possess different credit ratings. As of December 31, 2020 and 2019 (Successor Company), the Company did not hold any credit derivatives that assume credit risk. Derivative Collateral Arrangements The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of December 31, 2020 and 2019 (Successor Company), the Company pledged cash collateral with a fair value of $48 and $10, respectively, associated with derivative instruments. The collateral receivable has been recorded in other assets or other liabilities on the Company's Consolidated Balance Sheets, as determined by the Company's election to offset on the balance sheet. As of December 31, 2020 and 2019 (Successor Company), the Company also pledged securities collateral associated with derivative instruments with a fair value of $526 and $214, respectively, which have been included in fixed maturities on the Consolidated Balance Sheets. The counterparties generally have the right to sell or re-pledge these securities. In addition, as of December 31, 2020 and 2019 (Successor Company), the Company has pledged initial margin of securities related to OTC-cleared and exchange traded derivatives with a fair value of $215 and $165, respectively. As of December 31, 2020 and 2019 (Successor Company), the Company accepted cash collateral associated with derivative instruments of $65 and $188, respectively, which was invested and recorded on the Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other investments or other liabilities as determined by the Company's election to offset on the balance sheet. The Company also accepted securities collateral as of December 31, 2020 and 2019 (Successor Company) with a fair value of $0 and $9, respectively, all of which the Company has the right to sell or repledge. As of December 31, 2020 (Successor Company), the Company has not repledged securities and did not sell any securities. The non-cash collateral accepted was held in separate custodial accounts and was not included on the Company's Consolidated Balance Sheets. |
Reinsurance Level 1(Notes)
Reinsurance Level 1(Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | The Company cedes insurance to unaffiliated insurers to enable the Company to manage capital and risk exposure. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company regularly monitors the financial condition and ratings of its reinsurers and structures agreements to provide collateral funds where necessary. Reinsurance Recoverables Reinsurance recoverables include balances due from reinsurance companies and are presented net of allowances for uncollectible reinsurance in 2019 and net of ACL in 2020, upon adoption of ASU 2016-13. For further information, see Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. The ACL represents an estimate of expected credit losses over the lifetime of the contracts that reflect management’s best estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ inability to pay. Reinsurance recoverables include an estimate of the amount of policyholder benefits that may be ceded under the terms of the reinsurance agreements. Amounts recoverable from reinsurers are estimated in a manner consistent with assumptions used for the underlying policy benefits. Accordingly, the Company’s estimate of reinsurance recoverables is subject to similar risks and uncertainties as the estimate of the gross reserve for future policy benefits. Reinsurance Recoverables, net (Successor Company) As of December 31, 2020 2019 Reserve for future policy benefits and other policyholder funds and benefits payable Sold businesses (MassMutual and Prudential) $ 18,807 $ 19,534 Commonwealth 7,579 8,147 Other reinsurers 1,076 1,143 Gross reinsurance recoverables 27,462 28,824 Less: ACL 7 Reinsurance recoverables, net [1] $ 27,455 $ 28,824 [1] As of December 31, 2019 (Successor Company), no allowance for uncollectible reinsurance was required. As of December 31, 2020 (Successor Company), the Company had reinsurance recoverables from Commonwealth, Massachusetts Mutual Life Insurance Company ("MassMutual") and Prudential Financial, Inc. ("Prudential") of approximately $7.6 billion, $7.0 billion and $11.8 billion, respectively. As of December 31, 2019 (Successor Company), the Company had reinsurance recoverables from Commonwealth, MassMutual and Prudential of $8.1 billion, $8.0 billion and $11.5 billion, respectively. The Company's obligations to its direct policyholders that have been reinsured to Commonwealth, MassMutual and Prudential are primarily secured by invested assets held in trust. As of December 31, 2020 (Successor Company), the ACL increased to $7 from $5 at January 1, 2020, upon adoption of ASU 2016-13. The Company closely monitors the financial condition, ratings and current market information of all its counterparty reinsurers and records an ACL considering the credit quality of the reinsurer, the invested assets in trust, and the period over which the recoverable balances are expected to be collected. Counterparty risk is assessed on a pooled basis in cases of shared risk characteristics, and separately for individual reinsurers when it is more relevant. The Company evaluates historical events, current conditions, and reasonable and supportable forecasts in developing its ACL estimate. Where its contracts permit, the Company secures future claim obligations with various forms of collateral, including irrevocable letters of credit, secured trusts and funds held accounts. The ACL is estimated using a probability of default and loss given default model applied to the amount of reinsurance recoverables, net of collateral, exposed to loss. The probability of default factor is assigned based on each reinsurer's credit rating. The Company reassesses and updates credit ratings on a quarterly basis. The probability of default factors encompass historical industry defaults for liabilities with similar durations to the reinsured liabilities as estimated through multiple economic cycles. The loss given default factors are based on a study of historical recovery rates for general creditors of corporations through multiple economic cycles. Insurance Revenues Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Gross earned premiums, fee income and other $ 2,221 $ 2,375 $ 1,439 $ 1,059 Reinsurance assumed 125 115 66 48 Reinsurance ceded (1,570) (1,627) (972) (684) Net earned premiums, fee income and other $ 776 $ 863 $ 533 $ 423 The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. Insurance recoveries on ceded reinsurance agreements, which reduce death and other benefits, were $1.5 billion and $1.4 billion for the years ended December 31, 2020 and 2019 (Successor Company), respectively, $731 for the period of June 1, 2018 to December 31, 2018 (Successor Company) and $546 for the period of January 1, 2018 to May 31, 2018 (Predecessor Company). In addition, the Company has reinsured a portion of the risk associated with U.S. variable annuities and the associated GMDB and GMWB riders. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Policy Acquisition Costs and Present Value of Future Profits [Abstract] | |
Deferred Policy Acquisition Costs [Text Block] | Changes in the DAC Balance [1] Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Balance, beginning of period $ — $ — $ — $ 405 Deferred costs — — — 1 Amortization — DAC — — — (13) Amortization — Unlock benefit (charge), pre-tax — — — (3) Adjustments to unrealized gains and losses on securities AFS and other — — — 31 Balance, end of period $ — $ — $ — $ 421 [1] Effective with the application of pushdown accounting on May 31, 2018, the Company eliminated its DAC balance through a pushdown accounting adjustment. Please see Note 1, Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements for further discussion of pushdown accounting. Changes in the VOBA Balance [1] Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Balance, beginning of period $ 696 $ 716 $ 805 $ — Amortization — VOBA [2] 14 25 (80) — Amortization — Unlock benefit (charge), pre-tax (64) — (19) — Adjustments to unrealized gains and losses on securities AFS and other (60) (45) 10 — Balance, end of period $ 586 $ 696 $ 716 $ — [1] Effective with the application of pushdown accounting on May 31, 2018, the Company established its VOBA balance through a pushdown accounting adjustment. For further discussion of pushdown accounting, please see Note 1, Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. [2] Negative gross profits due to hedge losses resulted in a write-up of VOBA. Expected Amortization of VOBA Successor Company Years Expected Amortization 2021 $ (10) 2022 $ 18 2023 $ 22 2024 $ 25 2025 $ 31 |
Reserve for Future Policy Benef
Reserve for Future Policy Benefits and Separate Account Liabilities Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance Loss Reserves [Abstract] | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | Changes in Reserves for Future Policy Benefits Successor Company Universal Life-Type Contracts GMDB/GMWB [1] Universal Life Secondary Guarantees Traditional Annuity and Other Contracts [2] Total Future Liability balance as of January 1, 2020 $ 450 $ 3,691 $ 14,324 $ 18,465 Incurred [3] 101 526 467 1,094 Paid (91) (22) (821) (934) Liability balance as of December 31, 2020 $ 460 $ 4,195 $ 13,970 $ 18,625 Reinsurance recoverable asset as of January 1, 2020 $ 269 $ 3,691 $ 4,843 $ 8,803 Incurred [3] 57 526 122 705 Paid (72) (22) (275) (369) Reinsurance recoverable asset as of December 31, 2020 $ 254 $ 4,195 $ 4,690 $ 9,139 Successor Company Universal Life-Type Contracts GMDB/GMWB [1] Universal Life Secondary Traditional Annuity and Other Contracts [2] Total Future Policy Benefits Liability balance as of January 1, 2019 $ 462 $ 3,276 $ 14,585 $ 18,323 Incurred [3] 78 419 566 1,063 Paid (90) (4) (827) (921) Liability balance as of December 31, 2019 $ 450 $ 3,691 $ 14,324 $ 18,465 Reinsurance recoverable asset as of January 1, 2019 $ 284 $ 3,276 $ 4,972 $ 8,532 Incurred [3] 57 419 163 639 Paid (72) (4) (292) (368) Reinsurance recoverable asset as of December 31, 2019 $ 269 $ 3,691 $ 4,843 $ 8,803 [1] These liability balances include all GMDB benefits, plus the life-contingent portion of GMWB benefits in excess of the return of the GRB. GMWB benefits up to the GRB are embedded derivatives held at fair value and are excluded from these balances. [2] Represents life-contingent reserves for which the company is subject to insurance and investment risk. [3] Includes the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Account Value by GMDB/GMWB Type as of December 31, 2020 Account Net amount Retained Net Weighted MAV [1] MAV only $ 12,649 $ 1,500 $ 225 74 With 5% rollup [2] 928 72 23 75 With earnings protection benefit rider (“EPB”) [3] 3,221 594 83 74 With 5% rollup & EPB 446 101 22 76 Total MAV 17,244 2,267 353 Asset protection benefit ("APB") [4] 8,332 46 32 72 Lifetime income benefit ("LIB") – death benefit [5] 369 2 2 74 Reset [6] (5-7 years) 2,420 7 5 72 Return of premium ("ROP") /other [7] 5,642 46 45 75 Variable annuity without GMDB [8] 2,570 — — 72 Subtotal variable annuity [11] $ 36,577 $ 2,368 $ 437 74 Less: general account value 2,801 Subtotal variable annuity separate account liabilities 33,776 Separate account liabilities - other 75,849 Total separate account liabilities $ 109,625 [1] MAV GMDB is the greatest of current AV, net premiums paid and the highest AV on any anniversary before age 80 years (adjusted for withdrawals). [2] Rollup GMDB is the greatest of the MAV, current AV, net premium paid and premiums (adjusted for withdrawals) accumulated at generally 5% simple interest up to the earlier of age 80 years or 100% of adjusted premiums. [3] EPB GMDB is the greatest of the MAV, current AV, or contract value plus a percentage of the contract’s growth. The contract’s growth is AV less premiums net of withdrawals, subject to a cap of 200% of premiums net withdrawals. [4] APB GMDB is the greater of current AV or MAV, not to exceed current AV plus 25% times the greater of net premiums and MAV (each adjusted for premiums in the past 12 months). [5] LIB GMDB is the greatest of current AV; net premiums paid; or, for certain contracts, a benefit amount generally based on market performance that ratchets over time. [6] Reset GMDB is the greatest of current AV, net premiums paid and the most recent five to seven year anniversary AV before age 80 years (adjusted for withdrawals). [7] ROP GMDB is the greater of current AV and net premiums paid. [8] Includes account value for contracts that had a GMDB at issue but no longer have a GMDB due to certain elections made by policyholders or their beneficiaries. [9] AV includes the contract holder’s investment in the separate account and the general account. [10] NAR is defined as the guaranteed minimum death benefit in excess of the current AV. RNAR represents NAR reduced for reinsurance. NAR and RNAR are highly sensitive to equity market movements and increase when equity markets decline. [11] Some variable annuity contracts with GMDB also have a life-contingent GMWB that may provide for benefits in excess of the return of the GRB. Such contracts included in this amount have $5.0 billion of total account value and weighted average attained age of 76 years. There is no NAR or retained NAR related to these contracts. Account Balance Breakdown of Variable Separate Account Investments for Contracts with Guarantees Successor Company Asset Type December 31, 2020 December 31, 2019 Equity securities (including mutual funds) $ 32,011 $ 31,114 Cash and cash equivalents [1] 1,765 1,319 Total [2] $ 33,776 $ 32,433 [1] Represents an allocation of the portfolio holdings. [2] Includes $2.6 billion and $2.3 billion of account value as of December 31, 2020 and 2019 (Successor Company) for contracts that had a GMDB at issue but no longer have a GMDB due to certain elections made by policyholders or their beneficiaries. As of December 31, 2020 and 2019 (Successor Company), approximately 18% and 21%, respectively, of the equity securities (including mutual funds), in the preceding table were funds invested in fixed income securities and approximately 82% and 79%, respectively, were funds invested in equity securities. For further information on guaranteed living benefits that are accounted for at fair value, such as GMWB, see Note 2 - Fair Value Measurements of Notes to Consolidated Financial Statements. |
Other Intangible Assets Level 1
Other Intangible Assets Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Other Intangible Assets (Successor Company) As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Expected Life Amortizing intangible assets [1] $ 29 $ 15 $ 14 5 Total indefinite lived intangible assets [2] 26 — 26 — Total other intangible assets $ 55 $ 15 $ 40 5 [1] Consist of internally developed software [2] Consist of state insurance licenses There have been no additions, renewals or extension since December 31, 2019 (Successor Company). Expected Pre-tax Amortization Expense (Successor Company) Years Expected Future Amortization Expense 2021 $ 6 2022 $ 6 2023 $ 2 2024 $ — 2025 $ — |
Debt Level 1 (Notes)
Debt Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Collateralized Advances The Company is a member of the Federal Home Loan Bank of Boston (“FHLBB”). Membership allows the Company access to collateralized advances, which may be used to support various spread-based business and enhance liquidity management. FHLBB membership requires the Company to own member stock and advances require the purchase of activity stock. The amount of advances that can be taken are dependent on the asset types pledged to secure the advances. The Connecticut Insurance Department ("CTDOI") will permit the Company to pledge up to approximately $940 in qualifying assets to secure FHLBB advances for 2021. The pledge limit is recalculated annually based on statutory admitted assets and capital and surplus. The Company would need to seek the prior approval of the CTDOI in order to exceed these limits. As of December 31, 2020, the Company had no advances outstanding under the FHLBB facility. |
Income Tax Level 1 (Notes)
Income Tax Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Provision for Income Taxes Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 Income Tax Expense (Benefit) 2020 2019 Current - U.S. Federal $ 10 $ (8) $ (15) $ 1 Deferred - U.S. Federal 56 52 74 6 Total income tax expense $ 66 $ 44 $ 59 $ 7 Deferred tax assets and liabilities on the consolidated balance sheets represent the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. Components of Deferred Tax Assets (Liabilities) Successor Company As of December 31, 2020 2019 Deferred Tax Assets Tax basis deferred policy acquisition costs $ 79 $ 60 Unearned premium reserve and other underwriting related reserves 1 4 VOBA and reserves 567 557 Net operating loss carryover 102 166 Employee benefits 7 4 Foreign tax credit carryover 18 13 Deferred reinsurance gain 198 210 Other 11 15 Total deferred tax assets 983 1,029 Deferred Tax Liabilities Investment related items (145) (150) Net unrealized gain on investments (360) (198) Total deferred tax liabilities (505) (348) Net deferred tax assets $ 478 $ 681 The federal audits for the Company have been completed through 2013 and the Company is not currently under examination for any open years. The statute of limitations is closed through the 2016 tax year with the exception of net operating loss ("NOL") carryforwards utilized in open tax years. Management believes that adequate provision has been made on the consolidated financial statements for any potential adjustments that may result from tax examinations and other tax-related matters for all open tax years. For periods ending December 31, 2020 and 2019 (Successor Company), the Company had no reserves for uncertain tax positions. At December 31, 2020 and 2019 (Successor Company), there was no unrecognized tax benefit that if recognized would affect the effective tax rate and that is reasonably possible of significantly increasing or decreasing within the next 12 months. The Company classifies interest and penalties (if applicable) as income tax expense on the consolidated financial statements. The Company recognized no interest expense for the years ended December 31, 2020 and 2019 (Successor Company), the period of June 1, 2018 to December 31, 2018 (Successor Company) and the period of January 1, 2018 to May 31, 2018 (Predecessor Company). The Company had no interest payable as of December 31, 2020 and 2019 (Successor Company). The Company does not believe it would be subject to any penalties in any open tax years and, therefore, has not recorded any accrual for penalties. The application of purchase and pushdown accounting resulted in market value adjustments to the Company’s assets and liabilities, which resulted in a corresponding increase in the Company’s deferred tax asset. For further information, see Note 1- Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. The Company believes it is more likely than not that all deferred tax assets will be fully realized. In assessing the need for a valuation allowance, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences and carryovers, taxable income in open carry back years and other tax planning strategies. From time to time, tax planning strategies could include holding a portion of debt securities with market value losses until recovery, making investments which have specific tax characteristics and business considerations such as asset-liability matching. Net deferred income taxes include the future tax benefits associated with the net operating loss carryover and foreign tax credit carryover as follows: Net Operating Loss Carryover As of December 31, 2020 and 2019 (Successor Company), the net deferred tax asset included the expected tax benefit attributable to net operating losses of $484 and $790, respectively. The totals include U.S. losses that were generated prior to 2017 of $121 and $437, respectively. These losses are subject to limits on the period for which they can be carried forward. If not utilized, these losses will expire from 2028-2030. Utilization of these loss carryovers is dependent upon the generation of sufficient future taxable income. The totals also include U.S. losses that were generated in 2018 of $363 and $353, respectively, primarily due to the Commonwealth Annuity Reinsurance Agreement. These losses do not expire, but their utilization in any carryforward year is limited to 80% of taxable income in that year. Given the continued decline of the U.S. fixed and variable annuity business, the exposure to taxable losses is significantly lessened, and given the Company's expected future earnings, the Company believes sufficient taxable income will be generated in the future to utilize its net operating loss carryover. Although the Company believes there will be sufficient future taxable income to fully recover the remainder of the loss carryover, the Company's estimate of the likely realization may change over time. Foreign Tax Credit Carryover As of December 31, 2020 and 2019 (Successor Company), the net deferred tax asset included the expected tax benefit attributable to foreign tax credit carryovers of $18 and $13 respectively. A reconciliation of the tax provision at the U.S. Federal statutory rate to the provision (benefit) for income taxes is as follows: Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Tax provision at the U.S. federal statutory rate $ 98 $ 86 $ 98 $ 21 Dividends received deduction ("DRD") (28) (34) (37) (12) Foreign related investments (4) (7) (4) (3) Tax reform — — — (2) Other (1) 2 3 Provision for income taxes $ 66 $ 44 $ 59 $ 7 The separate account DRD is estimated for the current year using information from the most recent return, adjusted for current year equity market performance and other appropriate factors, including estimated levels of corporate dividend payments and level of policy owner equity account balances. The actual current year DRD can vary from estimates based on, but not limited to, changes in eligible dividends received in the mutual funds, amounts of distributions from these mutual funds and the Company’s taxable income before the DRD. The Company evaluates its DRD computations on a quarterly basis. |
Commitments and Contingencies L
Commitments and Contingencies Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Contingencies Relating to Corporate Litigation and Regulatory Matters Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes reserves for these contingencies at its “best estimate,” or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated liability at the low end of the range of losses. Litigation The Company is involved in claims litigation arising in the ordinary course of business with respect to life and annuity contracts. The Company accounts for such activity through the establishment of reserves for future policy benefits. Management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of the Company. The Company is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. Such actions have alleged, for example, bad faith in the handling of insurance claims and improper sales practices in connection with the sale of insurance and investment products. Some of these actions also seek punitive damages. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of the Company. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows in particular quarterly or annual periods. Lease Commitments The rent paid to Hartford Fire Insurance Company ("Hartford Fire") for operating leases was $2 and $2 for the years ended December 31, 2020 and 2019, respectively (Successor Company), $1 for the period of June 1, 2018 to December 31, 2018 (Successor Company) and $1 for the period of January 1, 2018 to May 31, 2018 (Predecessor Company). Future Minimum Lease Payments (Successor Company) 2021 $ 1 2022 1 2023 1 2024 — 2025 — Thereafter — Total minimum lease payments $ 3 Unfunded Commitments As of December 31, 2020 (Successor Company), the Company had outstanding commitments totaling $567, of which $463 was committed to fund limited partnership and other alternative investments, which may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. Additionally, $4 of the outstanding commitments is primarily related to various funding obligations associated with private debt securities. The remaining outstanding commitments of $100 relate to mortgage loans. Of the $567 in total outstanding commitments, $66 are related to mortgage loan commitments which the Company can cancel unconditionally. Guaranty Fund and Other Insurance-related Assessments In all states, insurers licensed to transact certain classes of insurance are required to become members of a guaranty fund. In most states, in the event of the insolvency of an insurer writing any such class of insurance in the state, members of the funds are assessed to pay certain claims of the insolvent insurer. A particular state’s fund assesses its members based on their respective written premiums in the state for the classes of insurance in which the insolvent insurer was engaged. Assessments are generally limited for any year to one or two percent of premiums written per year depending on the state. Derivative Commitments Certain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings, as set by nationally recognized statistical agencies or risked-based capital ("RBC") tests, of the individual legal entity that entered into the derivative agreement. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could demand immediate and ongoing full collateralization and in certain instances enable the counterparties to terminate the agreements and demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement. The settlement amount is determined by netting the derivative positions transacted under each agreement. If the termination rights were to be exercised by the counterparties, it could impact the legal entity’s ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of December 31, 2020 (Successor Company) was $539. Of this $539, the legal entities have posted collateral of $572, which is inclusive of initial margin requirements in the normal course of business. In addition, the Company has posted collateral of $23 associated with a customized GMWB derivative. These collateral amounts could change as derivative market values change, as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated. The nature of the collateral that we post, when required, would be primarily in the form of U.S. Treasury bills, U.S. Treasury notes and government agency securities. |
Statutory Results Level 1 (Note
Statutory Results Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Insurance Disclosure [Text Block] | The domestic insurance subsidiaries of the Company prepare their statutory financial statements in conformity with statutory accounting practices prescribed or permitted by the applicable state insurance department which vary materially from U.S. GAAP. Prescribed statutory accounting practices include publications of the National Association of Insurance Commissioners (“NAIC”), as well as state laws, regulations and general administrative rules. The differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP vary between domestic and foreign jurisdictions. The principal differences are that statutory financial statements do not reflect deferred policy acquisition and value of business acquired costs and limit deferred income taxes, predominately use interest rate and mortality assumptions prescribed by the NAIC for life benefit reserves, generally carry bonds at amortized cost and present reinsurance assets and liabilities net of reinsurance. For reporting purposes, statutory capital and surplus is referred to collectively as "statutory capital". Statutory Net Income (Loss) Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Combined statutory net income (loss) $ 245 $ 488 $ (126) $ 181 Statutory Capital Successor Company As of December 31, 2020 2019 Statutory capital [1] $ 3,142 $ 3,194 [1] The Company relies upon a prescribed practice allowed by Connecticut state laws that allow the Company to receive a reinsurance reserve credit for reinsurance treaties that provide for a limited right of unilateral cancellation by the reinsurer. The benefit from this prescribed practice was approximately $51 and $37 as of December 31, 2020 and 2019 (Successor Company), respectively. Statutory accounting practices do not consolidate the net income (loss) of subsidiaries that report under U.S. GAAP. The combined statutory net income (loss) above represents the total statutory net income (loss) of the Company and its other insurance subsidiaries. Regulatory Capital Requirements The Company's U.S. insurance companies' states of domicile impose RBC requirements. The requirements provide a means of measuring the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations based on its size and risk profile. Regulatory compliance is determined by a ratio of a company's total adjusted capital (“TAC”) to its authorized control level RBC (“ACL RBC”). Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences (“Company Action Level”) is two times the ACL RBC. The adequacy of a company's capital is determined by the ratio of a company's TAC to its Company Action Level, known as the "RBC ratio". The Company and all of its operating insurance subsidiaries had RBC ratios in excess of the minimum levels required by the applicable insurance regulations. The RBC ratios for the Company and its principal life insurance operating subsidiaries were all in excess of 300% of their Company Action Levels as of December 31, 2020 and 2019 (Successor Company). The reporting of RBC ratios is not intended for the purpose of ranking any insurance company, or for use in connection with any marketing, advertising or promotional activities. Dividends Dividends to the Company from its insurance subsidiaries and dividends from the Company to its parent are restricted by insurance regulation. The payment of dividends by Connecticut-domiciled insurers is limited under the insurance holding company laws of Connecticut. These laws require notice to and approval by the state insurance commissioner for the declaration or payment of any dividend, which, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (i) 10% of the insurer’s policyholder surplus as of December 31 of the preceding year or (ii) net income (or net gain from operations, if such company is a life insurance company) for the twelve-month period ending on the thirty-first day of December last preceding, in each case determined under statutory insurance accounting principles. In addition, if any dividend of a domiciled insurer exceeds the insurer’s earned surplus or certain other thresholds as calculated under applicable state insurance law, the dividend requires the prior approval of the domestic regulator. In addition to statutory limitations on paying dividends, the Company also takes other items into consideration when determining dividends from subsidiaries. These considerations include, but are not limited to, expected earnings and capitalization of the subsidiary, regulatory capital requirements and liquidity requirements of the individual operating company. As a condition of the sale, Talcott Resolution Life Insurance Company and its affiliates were required to gain pre-approval from the state insurance commissioner for any dividends, regardless of size, through May 31, 2020. On September 18, 2020 (Successor Company), TL received a $400 dividend from its subsidiary, Talcott Resolution Life and Annuity Insurance Company ("TLA"). On the same date, TL subsequently declared and paid a $319 dividend to its parent, Talcott Resolution Life, Inc. ("TLI"). On September 16, 2019 (Successor Company), TL received a $250 dividend from its subsidiary, TLA. On the same date, TL subsequently declared and paid a $700 dividend to its parent, TLI. Prior to the close of the Talcott Resolution Sale Transaction, the Hartford Life Insurance Company (Predecessor Company) paid approximately $619 in dividends to its parent and subsequently to The Hartford. TL, formerly known as Hartford Life Insurance Company, contributed $309 and TLA, formerly known as Hartford Life and Annuity Insurance Company, contributed $308 including other intercompany transactions net settled between TL and The Hartford prior to closing. After September 18, 2021, the Company is permitted to pay up to a maximum of $597 in dividends and the Company's subsidiaries are permitted to pay up to a maximum of $335 in dividends without prior approval from the state insurance commissioner. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Changes in AOCI, Net of Tax for the Year Ended December 31, 2020 (Successor Company) Changes in Net Unrealized Gain on Fixed Maturities Unrealized Losses on Fixed Maturities for Which an ACL Has Been Recorded Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments AOCI, Beginning balance $ 717 $ — $ — $ — $ 717 OCI before reclassifications 665 (1) (1) — 663 Amounts reclassified from AOCI (100) 1 — — (99) OCI, net of tax 565 — (1) — 564 Ending balance $ 1,282 $ — $ (1) $ — $ 1,281 Changes in AOCI, Net of Tax for the Year Ended December 31, 2019 (Successor Company) Changes in Net Unrealized Gain on Fixed Maturities Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments AOCI, Beginning balance $ (173) $ — $ 2 $ (171) OCI before reclassifications 927 — (2) 925 Amounts reclassified from AOCI (37) — — (37) OCI, net of tax 890 — (2) 888 Ending balance $ 717 $ — $ — $ 717 Changes in AOCI, Net of Tax for the Period of June 1, 2018 to December 31, 2018 (Successor Company) Changes in Net Unrealized Gain on Fixed Maturities Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments AOCI, Beginning balance $ — $ — $ — $ — OCI before reclassifications (198) — 2 (196) Amounts reclassified from AOCI 25 — — 25 OCI, net of tax (173) — 2 (171) Ending balance $ (173) $ — $ 2 $ (171) Changes in AOCI, Net of Tax for the Period of January 1, 2018 to May 31, 2018 (Predecessor Company) Changes in Net Unrealized Gain on Fixed Maturities Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments AOCI, Beginning balance $ 1,022 $ 4 $ (3) $ 1,023 Cumulative effect of accounting changes, net of tax [1] 182 — — 182 Adjusted balance, beginning of period 1,204 4 (3) 1,205 OCI before reclassifications (432) (13) 1 (444) Amounts reclassified from AOCI 2 (5) — (3) OCI, net of tax (430) (18) 1 (447) Ending balance $ 774 $ (14) $ (2) $ 758 [1] Includes reclassification to retained earnings of $193 of stranded tax effects and $11 of net unrealized gains, after tax, related to equity securities. Refer to Note 1 - Basis of Presentation and Significant Accounting Policies for further information. Reclassification from AOCI Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 Affected Line Item on the Consolidated Statement 2020 2019 Net Unrealized Gain on Fixed Maturities Available-for-sale securities $ 127 $ 47 $ (32) $ (2) Net realized capital gains (losses) 127 47 (32) (2) Income before income taxes 27 10 (7) — Income tax expense $ 100 $ 37 $ (25) $ (2) Net income Unrealized Losses on Fixed Maturities for Which an ACL Has Been Recorded Fixed maturities, AFS $ (1) Net realized capital gains (losses) (1) Income before income taxes — Income tax expense $ (1) Net income Net Gains on Cash-Flow Hedging Instruments Interest rate swaps $ — $ — $ — $ — Net realized capital gains (losses) Interest rate swaps — — — 8 Net investment income Foreign currency swaps — — — (2) Net realized capital gains (losses) — — — 6 Income before income taxes — — — 1 Income tax expense $ — $ — $ — $ 5 Net income Total amounts reclassified from AOCI $ 99 $ 37 $ (25) $ 3 Net income |
Subsequent Events Level 1 (Note
Subsequent Events Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | On January 18, 2021 the Company's indirect owners, Hopmeadow Holdings GP LLC and Hopmeadow Holdings LP, entered into a definitive agreement to merge Hopmeadow Holdings LP with a subsidiary of Sixth Street, a leading global investment firm. The merger is subject to regulatory approvals and other customary closing conditions and is expected to close in the second quarter of 2021. If consummated, the merger would result in a change of ownership and control of the Company and its life and annuity operating subsidiaries. Proceeds from the merger consist of a combined pre-closing dividend and cash at closing totaling approximately $2.25 billion and is subject to certain closing adjustments |
Schedule I - Summary of Investm
Schedule I - Summary of Investments - Other Than Investments in Affiliates Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments - Other Than Investments in Affiliates | TALCOTT RESOLUTION LIFE INSURANCE COMPANY AND SUBSIDIARIES SCHEDULE I SUMMARY OF INVESTMENTS—OTHER THAN INVESTMENTS IN AFFILIATES ($ in millions) Successor Company As of December 31, 2020 Type of Investment Cost Fair Value Amount at Which Shown on Balance Sheet Fixed Maturities Bonds and notes U.S. government and government agencies and authorities (guaranteed and sponsored) $ 1,559 $ 1,765 $ 1,765 States, municipalities and political subdivisions 761 875 875 Foreign governments 236 266 266 Public utilities 1,325 1,540 1,540 All other corporate bonds 5,915 7,012 7,012 All other mortgage-backed and asset-backed securities 3,341 3,417 3,417 Total fixed maturities, available-for-sale 13,137 14,875 14,875 Equity Securities Common stocks Industrial, miscellaneous and all other 28 28 28 Non-redeemable preferred stocks 37 37 37 Total equity securities, at fair value 65 65 65 Mortgage loans [1] 2,109 2,248 2,092 Policy loans 1,452 1,452 1,452 Futures, options and miscellaneous (3) 10 10 Real estate acquired in satisfaction of debt 14 14 14 Short-term investments 802 802 802 Investments in partnerships and trusts 999 999 Total investments $ 18,575 $ 20,309 [1] Cost of mortgage loans excludes the allowance for credit losses ("ACL") of $17. For further information, refer to Schedule V - Valuation and Qualifying Accounts. |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | TALCOTT RESOLUTION LIFE INSURANCE COMPANY AND SUBSIDIARIES SCHEDULE V VALUATION AND QUALIFYING ACCOUNTS (In millions) Successor Company 2020 Balance January 1, Charged to Costs and Expenses Write-offs/Payments/Other Balance December 31, Allowance for credit losses ("ACL") on fixed maturities, AFS $ — $ 1 $ — $ 1 ACL on mortgage loans 9 8 — 17 ACL on reinsurance recoverables 5 2 — 7 2019 Balance Charged to Costs and Expenses Write-offs/Payments/Other Balance December 31, Valuation allowance on mortgage loans 5 — (5) — 2018 Balance Charged to Costs and Expenses Write-offs/Payments/Other Balance Valuation allowance on mortgage loans — 6 (1) 5 Predecessor Company 2018 Balance January 1, Charged to Costs and Expenses Write-offs/Payments/Other Balance May 31, Valuation allowance on mortgage loans $ — $ — $ — $ — |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies Level 2 (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation Talcott Resolution Life Insurance Company, formerly Hartford Life Insurance Company, (together with its subsidiaries, “TL,” “Company,” “we” or “our”) is a provider of insurance and investment products in the United States (“U.S.”) and is a wholly-owned subsidiary of Talcott Resolution Life, Inc., a Delaware corporation ("TLI"). Hopmeadow Holdings LP (“Hopmeadow Holdings", or "HHLP ”) is the ultimate parent of the Company. The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which differ materially from the accounting practices prescribed by various insurance regulatory authorities. On May 31, 2018 the Company's indirect parent, Hartford Holding, Inc. ("HHI") completed the sale of the Company's parent to a group of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group ("Global Atlantic"), Pine Brook and J. Safra Group. Although Talcott Resolution Life Insurance Company is no longer affiliated with The Hartford Financial Services Group, Inc. ("The Hartford") or any of its subsidiaries, The Hartford retained a 9.7 percent ownership interest in HHLP ("Talcott Resolution Sale Transaction"). In conjunction with the sale, the Company entered into a transition services agreement with The Hartford for a period up to three years to provide general ledger, cash management, and information technology infrastructure services. In 2020, the transition services agreement was completed as all supported services have fully transitioned to the Company. In March, 2019, a five year administrative services agreement was entered into for investment accounting services which replaced the services previously provided under the transition services agreement. HHLP’s May 31, 2018 acquisition of TLI was accounted for by HHLP using business combination accounting. Under this method, the purchase price paid by the investor group was assigned to the identifiable assets acquired and liabilities assumed as of the acquisition date based on their fair value. The Company elected to apply "pushdown" accounting by applying the guidance permitted under Accounting Standards Codification (“ASC”) Topic 805 Business Combinations . By the application of pushdown accounting, the Company’s assets, liabilities and equity were accordingly adjusted to fair value on May 31, 2018 which generated both intangible assets and Value of Business Acquired (“VOBA”). Determining the fair value of certain assets acquired and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions. Due to the application of pushdown accounting, TL’s financial statements and footnote disclosures are presented in two distinct periods to indicate the application of two different bases of accounting. The periods prior to June 1, 2018 are identified herein as “Predecessor,” while the periods subsequent to HHLP’s acquisition of TLI are identified as “Successor.” As a result of the change in the basis of accounting from historical GAAP to reflect HHLP’s purchase cost, the financial statements for the Predecessor period are not comparable to the Successor periods. |
Pushdown Accounting [Policy Text Block] | HHLP’s May 31, 2018 acquisition of TLI was accounted for by HHLP using business combination accounting. Under this method, the purchase price paid by the investor group was assigned to the identifiable assets acquired and liabilities assumed as of the acquisition date based on their fair value. The Company elected to apply "pushdown" accounting by applying the guidance permitted under Accounting Standards Codification (“ASC”) Topic 805 Business Combinations . By the application of pushdown accounting, the Company’s assets, liabilities and equity were accordingly adjusted to fair value on May 31, 2018 which generated both intangible assets and Value of Business Acquired (“VOBA”). Determining the fair value of certain assets acquired and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions. Due to the application of pushdown accounting, TL’s financial statements and footnote disclosures are presented in two distinct periods to indicate the application of two different bases of accounting. The periods prior to June 1, 2018 are identified herein as “Predecessor,” while the periods subsequent to HHLP’s acquisition of TLI are identified as “Successor.” As a result of the change in the basis of accounting from historical GAAP to reflect HHLP’s purchase cost, the financial statements for the Predecessor period are not comparable to the Successor periods. |
Consolidation | Consolidation The Consolidated Financial Statements include the accounts of TL and entities the Company directly or indirectly has a controlling financial interest in which the Company is required to consolidate. Entities in which TL has significant influence over the operating and financing decisions but is not required to consolidate are reported using the equity method. All intercompany transactions and balances between TL and its subsidiaries have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Reclassification | Reclassifications Certain reclassifications have been made to prior year financial information to conform to the current year presentation. |
New Accounting Pronouncements, Policy [Policy Text Block] | Adoption of New Accounting Standards Reclassification of Effect of Tax Rate Change from AOCI to Retained Earnings In February 2018, the FASB issued new accounting guidance for the effect on deferred tax assets and liabilities related to items recorded in AOCI resulting from legislated tax reform enacted on December 22, 2017. The tax reform reduced the federal tax rate applied to the Company’s deferred tax balances from 35% to 21% on enactment. Under U.S. GAAP, the Company recorded the total effect of the change in enacted tax rates on deferred tax balances as a charge to income tax expense within net income, including the change in deferred tax balances related to components of AOCI. The new accounting guidance permitted the Company to reclassify the “stranded” tax effects out of AOCI and into retained earnings that resulted from recording the tax effects of unrealized investment gains at a 35% tax rate because the 14 point reduction in tax rate was recognized in net income instead of other comprehensive income. On January 1, 2018, the Company (Predecessor Company) adopted the new guidance and recorded a reclassification of $193 which increased AOCI and reduced retained earnings. Financial Instruments - Recognition and Measurement On January 1, 2018, the Company (Predecessor Company) adopted updated guidance issued by the FASB for the recognition and measurement of financial instruments through a cumulative effect adjustment to the opening balances of retained earnings and AOCI. The new guidance requires investments in equity securities to be measured at fair value with any changes in valuation reported in net income except for investments that are consolidated or are accounted for under the equity method of accounting. The new guidance also requires a deferred tax asset resulting from net unrealized losses on available-for-sale fixed maturities that are recognized in AOCI to be evaluated for recoverability in combination with the Company’s other deferred tax assets. Under prior guidance, the Company reported equity securities, available for sale ("AFS"), at fair value with changes in fair value reported in other comprehensive income. As of January 1, 2018, the Company (Predecessor Company) reclassified from AOCI to retained earnings net unrealized gains of $11, after tax, related to equity securities having a fair value of $154. Beginning in 2018, the Company reports equity securities at fair value with changes in fair value reported in net realized capital gains and losses. Revenue Recognition On January 1, 2018, the Company (Predecessor Company) adopted the FASB’s updated guidance for recognizing revenue from contracts with customers, which excludes insurance contracts and financial instruments. Revenue subject to the guidance is recognized when, or as, goods or services are transferred to customers in an amount that reflects the consideration that an entity is expected to receive in exchange for those goods or services. The updated guidance is consistent with previous guidance for the Company’s transactions and did not have an effect on the Company’s financial position, cash flows or net income. Revenue from customers for other than insurance and investment contracts was $80 and $84 for the years ended December 31, 2020 and 2019, respectively (Successor Company), $54 for the period of June 1, 2018 to December 31, 2018 (Successor Company) and $40 for the period of January 1, 2018 to May 31, 2018 (Predecessor Company). The Company earns revenues from these contracts primarily for administrative and distribution services fees from offering certain fund families as investment options in its variable annuity products. Fees are primarily based on the average daily net asset values of the funds and are recorded in the period in which the services are provided and collected monthly. Fluctuations in domestic and international markets and related investment performance, volume and mix of sales and redemptions of the funds, and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned. Hedging Activities The FASB issued updated guidance on hedge accounting. The updates allow hedge accounting for new types of interest rate hedges of financial instruments and simplify documentation requirements to qualify for hedge accounting. In addition, any gain or loss from hedge ineffectiveness will be reported in the same income statement line with the effective hedge results and the hedged transaction. For cash flow hedges, the ineffectiveness will be recognized in earnings only when the hedged transaction affects earnings; otherwise, the ineffectiveness gains or losses will remain in AOCI. Under previous accounting, total hedge ineffectiveness was reported separately in realized gains and losses apart from the hedged transaction. The updated guidance was effective January 1, 2019 through a cumulative effect adjustment that will reclassify cumulative ineffectiveness on open cash flow hedges from retained earnings to AOCI. As a result of pushdown accounting, derivative instruments that qualified for hedge accounting were recorded at fair value through adjustments to additional paid in capital at the acquisition date. As of December 31, 2018 (Successor Company), the Company had no derivative instruments that qualify for hedge accounting, therefore there was no impact on the Company's financial statements upon adoption. Changes to the Disclosure Requirements for Fair Value Measurement On August 28, 2018 the FASB issued Accounting Standards Update ("ASU") 2018-13 which removes, modifies and adds certain disclosure requirements related to fair value measurements in ASC 820, Fair Value Measurements . As permitted by the guidance, the Company early adopted amendments in this guidance effective December 31, 2019. The adoption of ASU 2018-13 did not have a material impact on the Company's consolidated financial statements. Financial Instruments - Credit Losses On January 1, 2020 the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, ("ASU 2016-13", or "CECL") together with related updated guidance for recognition and measurement of credit losses on certain financial instruments not carried at fair value, including reinsurance recoverables. This guidance replaces the “incurred loss” approach with an “expected loss” model for recognizing credit losses for instruments carried at amortized cost, which resulted in the recognition of greater allowances for losses. Under the new model, an allowance for credit losses ("ACL") is recognized as an estimate of credit losses expected over the life of financial instruments, such as mortgage loans, reinsurance recoverables and off-balance sheet credit exposures that the Company cannot unconditionally cancel. The measurement of the expected credit loss estimate is based on historical loss data, current conditions, and reasonable and supportable forecasts. Credit losses on fixed maturities, AFS carried at fair value continue to be measured similar to previous guidance for other-than-temporary impairments ("OTTI"); however, losses are now recognized through the ACL and no longer as an adjustment to the amortized cost. Recoveries of OTTI on fixed maturities, AFS are recognized as reversals of the ACL recognized through net realized capital gains and losses and no longer accreted as net investment income through an adjustment to the investment yield. For fixed maturities, AFS this guidance is applied prospectively. Additionally, the new guidance requires purchased financial assets with a more-than-insignificant amount of credit deterioration since original issuance to establish an ACL at acquisition, which is recorded with the purchase price to establish the initial amortized cost of the investment. The Company adopted the guidance through a cumulative-effect adjustment that decreased retained earnings by $11, after tax, primarily related to the Company's mortgage loan investments. No ACL was recognized at adoption for fixed maturities, AFS as those provisions of the guidance are applied prospectively. Upon adoption, the Company did not have any purchased financial assets with a more-than-insignificant amount of credit deterioration since original issuance. Summary of Adoption Impacts ACL on mortgage loans $ (9) ACL on reinsurance recoverables (5) Deferred income tax asset 3 Net decrease to retained earnings $ (11) Future Adoption of New Accounting Standards Targeted Improvements to the Accounting for Long Duration Contracts The FASB issued ASU 2018-12 on August 15, 2018 which impacts the existing recognition, measurement, presentation and disclosure requirements for certain long duration contracts issued by an insurance company. The guidance is intended to improve the timeliness of recognizing changes in the liability for future policy benefits by requiring annual or more frequent updates of insurance assumptions and modifying the rate used to discount future cash flows. Cash flows under the new guidance are required to be discounted using an upper-medium grade fixed income instrument yield. The discount rate is required to be updated at each reporting date, with the effect of discount rate changes on the liability recorded in OCI. This is a change from current GAAP which utilizes assumptions, including discount rate, "locked in" at policy issuance and until such time significant changes in experience or assumptions may require the Company to establish premium deficiency reserves. When this occurs, premium deficiency reserves are recognized by unlocking reserve assumptions to eliminate a reserve deficiency under current GAAP. Further, the guidance seeks to improve the accounting for certain market-based options or guarantees associated with account balance contracts and improve the effectiveness of the required disclosures. These market risk benefit features are required to be measured at fair value with changes in fair value recorded in net income with the exception of changes in the fair value attributable to a change in the instrument's credit risk, which are required to be recognized in OCI. Additionally, this ASU requires new disclosures including liability rollforwards and information about significant inputs, judgments, assumptions, and methods used in the measurement. This guidance was amended through the issuance of ASU 2020-11, which deferred the effective date the Company is required to adopt the guidance to January 1, 2023, with early adoption permitted. The Company continues to assess its policies, processes, and applicable systems to determine the impact this standard will have on its operations and financial results. While it is not possible to reasonably estimate the expected impact of adoption at this time, given the nature and extent of the required changes to a significant portion of the Company’s operations, adoption is expected to have a material impact on our consolidated financial statements and related disclosures. This guidance represents a significant change from existing GAAP; however, it does not change the underlying economics of the business or its related cash flows. |
Segment Information | Segment Information The Company has no reportable segments and its principal products and services are comprised of variable annuities, fixed and payout annuities, and private-placement life insurance. The Company's determination that it has no reportable segments is based on the fact that the Company's chief operating decision maker reviews the Company's financial performance at a consolidated level. |
Revenue Recognition | Revenue Recognition For investment and universal life-type contracts, the amounts collected from policyholders are considered deposits and are not included in revenue. Fee income for variable annuity and other universal life-type contracts consists of policy charges for policy administration, cost of insurance charges and surrender charges assessed against policyholders’ account balances and are recognized in the period in which services are provided. For the Company’s traditional life products, premiums are recognized as revenue when due from policyholders. |
Income Taxes | Income Taxes The Company recognizes taxes payable or refundable for the current year and deferred taxes for the tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. A deferred tax provision is recorded for the tax effects of differences between the Company's current taxable income and its income before tax under generally accepted accounting principles in the Consolidated Statements of Operations. For deferred tax assets, the Company records a valuation allowance that is adequate to reduce the total deferred tax asset to an amount that will more likely than not be realized. |
Investments | Investments Overview The Company’s investments in fixed maturities include bonds, structured securities, redeemable preferred stock and commercial paper. Most of these investments are classified as AFS and are carried at fair value, net of ACL, in accordance with new guidance adopted January 1, 2020 regarding expected credit losses. The after-tax difference between fair value and cost or amortized cost is reflected in stockholder's equity as a component of AOCI, after adjustments for the effect of VOBA (Successor Company) and reserve adjustments. Equity securities are measured at fair value with any changes in valuation reported in net income. For further information, see Financial Instruments - Recognition and Measurement discussion above. Policy loans are carried at outstanding balance. Mortgage loans are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of ACL. Short-term investments are carried at amortized cost, which approximates fair value. Limited partnerships and other alternative investments are reported at their carrying value and are primarily accounted for under the equity method with the Company’s share of earnings included in net investment income. Recognition of income related to limited partnerships and other alternative investments is delayed due to the availability of the related financial information, as private equity and other funds are generally on a three-month lag and hedge funds on a one-month lag. Accordingly, income for the years ended December 31, 2020 and 2019 (Successor Company), the period of June 1, 2018 to December 31, 2018 (Successor Company) and and the period of January 1, 2018 to May 31, 2018 (Predecessor Company) may not include the full impact of current year changes in valuation of the underlying assets and liabilities of the funds, which are generally obtained from the limited partnerships and other alternative investments’ general partners. Other investments consist of derivative instruments which are carried at fair value and real estate acquired in satisfaction of debt. Net Realized Capital Gains and Losses Net realized capital gains and losses from investment sales are reported as a component of revenues and are determined on a specific identification basis. Net realized capital gains and losses also result from fair value changes in equity securities and derivatives contracts (both free-standing and embedded) that do not qualify, or are not designated, as a hedge for accounting purposes. Impairments and changes in the ACL on fixed maturities, AFS; mortgage loans; and reinsurance recoverables are recognized as net realized capital losses in accordance with the Company’s impairment and ACL policies as discussed in Note 3 - Investments of Notes to Consolidated Financial Statements. Foreign currency transaction remeasurements are also included in net realized capital gains and losses. |
Derivatives | Derivative Instruments Overview The Company utilizes a variety of over-the-counter ("OTC") transactions cleared through central clearing houses ("OTC-cleared") and exchange traded derivative instruments as part of its overall risk management strategy as well as to enter into replication transactions. The types of instruments may include swaps, caps, floors, forwards, futures and options to achieve one of four Company-approved objectives: • to hedge risk arising from interest rate, equity market, commodity market, credit spread and issuer default, price or currency exchange rate risk or volatility; • to manage liquidity; • to control transaction costs; • to enter into synthetic replication transactions. Interest rate and credit default swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, little to no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. Interest rate cap and floor contracts entitle the purchaser to receive from the issuer at specified dates, the amount, if any, by which a specified market rate exceeds the cap strike interest rate or falls below the floor strike interest rate, applied to a notional principal amount. A premium payment determined at inception is made by the purchaser of the contract and no principal payments are exchanged. Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash. Financial futures are standardized commitments to either purchase or sell designated financial instruments, at a future date, for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures’ contract values are settled daily in cash. Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date. The contracts may reference commodities, which grant the purchaser the right to either purchase from or sell to the issuer commodities at a specified price, within a specified period or on a stated date. Option contracts are typically settled in cash. Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be a periodic exchange of payments at specified intervals calculated using the agreed upon rates and exchanged principal amounts. The Company’s derivative transactions conducted in insurance company subsidiaries are used in strategies permitted under the derivative use plans required by the State of Connecticut and the State of New York insurance departments. Accounting and Financial Statement Presentation of Derivative Instruments and Hedging Activities Derivative instruments are recognized on the Consolidated Balance Sheets at fair value and are reported in Other Investments and Other Liabilities. For balance sheet presentation purposes, the Company has elected to offset the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty or under a master netting agreement, which provides the Company with the legal right of offset. The Company clears certain interest rate swap and credit default swap derivative transactions through central clearing houses. OTC-cleared derivatives require initial collateral at the inception of the trade in the form of cash or highly liquid securities, such as U.S. Treasuries and government agency investments. Central clearing houses also require additional cash as variation margin based on daily market value movements. For information on collateral, see the derivative collateral arrangements section in Note 4 - Derivative Instruments of Notes to Consolidated Financial Statements. In addition, OTC-cleared transactions include price alignment amounts either received or paid on the variation margin, which are reflected in realized capital gains and losses or, if characterized as interest, in net investment income. On the date the derivative contract is entered into, the Company designates the derivative as (1) a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset or liability (“cash flow” hedge), (2) a hedge of a net investment in a foreign operation (“net investment” hedge) or (3) held for other investment and/or risk management purposes, which primarily involve managing asset or liability related risks and do not qualify for hedge accounting. Cash Flow Hedges - Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge, including foreign-currency cash flow hedges, are recorded in AOCI and are reclassified into earnings when the variability of the cash flow of the hedged item impacts earnings. Gains and losses on derivative contracts that are reclassified from AOCI to current period earnings are included in the line item in the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. For periods prior to 2019, hedge ineffectiveness was recorded immediately in current period earnings as net realized capital gains and losses. With the January 1, 2019 adoption of the updated FASB hedging guidance, ineffectiveness is recognized in earnings only when the hedged transaction affects earnings; otherwise, the ineffectiveness gains and losses remain in AOCI. Periodic derivative net coupon settlements are recorded in the line item of the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. Cash flows from cash flow hedges are presented in the same category as the cash flows from the items being hedged on the Consolidated Statements of Cash Flows. Other Investment and/or Risk Management Activities - The Company’s other investment and/or risk management activities primarily relate to strategies used to reduce economic risk or replicate permitted investments and do not receive hedge accounting treatment. Changes in the fair value, including periodic derivative net coupon settlements, of derivative instruments held for other investment and/or risk management purposes are reported in current period earnings as net realized capital gains and losses. Hedge Documentation and Effectiveness Testing To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in fair value or cash flow of the hedged item. At hedge inception, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking each hedge transaction. The documentation process includes linking derivatives that are designated as fair value, cash flow, or net investment hedges to specific assets or liabilities on the balance sheet or to specific forecasted transactions and defining the effectiveness testing methods to be used. The Company also formally assesses both at the hedge’s inception and ongoing on a quarterly basis, whether the derivatives that are used in hedging transactions have been and are expected to continue to be highly effective in offsetting changes in fair values, cash flows or net investment in foreign operations of hedged items. Hedge effectiveness is assessed primarily using quantitative methods as well as using qualitative methods. Quantitative methods include regression or other statistical analysis of changes in fair value or cash flows associated with the hedge relationship. Qualitative methods may include comparison of critical terms of the derivative to the hedged item. Discontinuance of Hedge Accounting The Company discontinues hedge accounting prospectively when (1) it is determined that the qualifying criteria are no longer met; (2) the derivative is no longer designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised. When cash flow hedge accounting is discontinued because the Company becomes aware that it is not probable that the forecasted transaction will occur, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses that were accumulated in AOCI are recognized immediately in earnings. In other situations in which hedge accounting is discontinued, including those where the derivative is sold, terminated or exercised, amounts previously deferred in AOCI are reclassified into earnings when earnings are impacted by the hedged item. Embedded Derivatives The Company purchases investments and has previously issued financial products that contain embedded derivative instruments. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument on the Consolidated Balance Sheets, is carried at fair value with changes in fair value reported in net realized capital gains and losses. Credit Risk Credit risk is defined as the risk of financial loss due to uncertainty of an obligor’s or counterparty’s ability or willingness to meet its obligations in accordance with agreed upon terms. Credit exposures are measured using the market value of the derivatives, resulting in amounts owed to the Company by its counterparties or potential payment obligations from the Company to its counterparties. The Company generally requires that OTC derivative contracts, other than certain forward contracts, be governed by International Swaps and Derivatives Association ("ISDA") agreements which are structured by legal entity and by counterparty, and permit right of offset. Some agreements require daily collateral settlement based upon agreed upon thresholds. For purposes of daily derivative collateral maintenance, credit exposures are generally quantified based on the prior business day’s market value and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of the derivatives exceed the contractual thresholds. For the Company’s domestic derivative programs, the maximum uncollateralized threshold for a derivative counterparty for a single legal entity is $10. The Company also minimizes the credit risk of derivative instruments by entering into transactions with high quality counterparties primarily rated A or better, which are monitored and evaluated by the Company’s risk management team and reviewed by senior management. OTC-cleared derivatives are governed by clearing house rules. Transactions cleared through a central clearing house reduce risk due to their ability to require daily variation margin and act as an independent valuation source. In addition, the Company monitors counterparty credit exposure on a monthly basis to ensure compliance with Company policies and statutory limitations. Derivative Instruments The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate risk or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies. The Company also may enter into and has previously issued financial instruments and products that either are accounted for as free-standing derivatives, such as certain reinsurance contracts, or as embedded derivative instruments, such as certain GMWB riders included with certain variable annuity products. |
Cash | Cash Cash represents cash on hand and demand deposits with banks or other financial institutions. |
Reinsurance | Reinsurance The Company cedes insurance to unaffiliated insurers to enable the Company to manage capital and risk exposure. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company also assumes reinsurance from other insurers. Reinsurance accounting is followed for ceded and assumed transactions that provide indemnification against loss or liability relating to insurance risk (i.e., risk transfer). To meet risk transfer requirements, a reinsurance agreement must include insurance risk, consisting of underwriting, investment, and timing risk, and a reasonable possibility of a significant loss to the reinsurer. If the ceded and assumed transactions do not meet risk transfer requirements, the Company accounts for these transactions as financing transactions. Premiums, benefits, losses and loss adjustment expenses reflect the net effects of ceded and assumed reinsurance transactions. Included in other assets are prepaid reinsurance premiums, which represent the portion of premiums ceded to reinsurers applicable to the unexpired terms of the reinsurance agreements. Included in reinsurance recoverables are balances due from reinsurance companies for paid and unpaid losses and loss adjustment expenses and are presented net of an ACL which is based on the expectation of lifetime credit loss. The Company reinsures certain of its risks to other reinsurers under yearly renewable term, coinsurance, and modified coinsurance arrangements, and variations thereof. The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. |
Deferred Policy Acquisition Costs and Present Value of Future Profits | Deferred Policy Acquisition Costs (Predecessor Company)/Value of Business Acquired (Successor Company) Deferred policy acquisition costs ("DAC") represent costs that are directly related to the acquisition of new and renewal insurance contracts and incremental direct costs of contract acquisition that are incurred in transactions with either independent third parties or employees. Such costs primarily include commissions, premium taxes, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully issued contracts. As a result of the Talcott Resolution Sale Transaction being recorded at fair value, DAC which does not represent future cash flows, was eliminated in pushdown accounting. VOBA represents the estimated value assigned to the right to receive future gross profits from cash flows and earnings of acquired insurance and investment contracts as of the date of the transaction. It is based on the actuarially estimated present value of future cash flows from the acquired insurance and investment contracts in-force as of the date of the transaction. The principal assumptions used in estimating the fair value calculation of VOBA include mortality, persistency, expenses, and interest rates, in addition to other factors that the Company expects to experience in future years. Actual experience on the acquired contracts may vary from these projections and the recovery of VOBA is dependent upon the future profitability of the related business. The Company amortizes VOBA over estimated gross profits ("EGPs") and it is reviewed for recoverability quarterly. Prior to June 2018, for universal life-type contracts (including variable annuities), the DAC asset was amortized over the estimated life of the contracts acquired in proportion to the present value of EGPs. The Company also uses the present value EGPs to determine reserves for universal life type contracts (including variable annuities) with death or other insurance benefits such as guaranteed minimum death, life-contingent guaranteed minimum withdrawal and universal life insurance secondary guarantee benefits. These benefits are accounted for and collectively referred to as death and other insurance benefit reserves and are held in addition to the account value liability representing policyholder funds. For most life insurance product contracts, including variable annuities, the Company estimates gross profits over 20 years as EGPs emerging subsequent to that time frame are immaterial. Future gross profits are projected over the estimated lives of the underlying contracts, based on future account value projections for variable annuity products. The projection of future account values requires the use of certain assumptions including: separate account returns; separate account fund mix; fees assessed against the contract holder’s account balance; f ull and partial surrender rates; interest credited; mortality; and annuitization rates. Changes in these assumptions and changes to other assumptions such as expenses and hedging costs cause EGPs to fluctuate, which impacts earnings. The Company determines EGPs using a set of stochastic reversion to mean ("RTM") separate account return projections which is an estimation technique commonly used by insurance entities to project future separate account returns. Through this estimation technique, the Company’s VOBA model is adjusted to reflect actual market returns at the end of each quarter. Through a consideration of recent market returns, the Company will unlock ("Unlock"), or adjust, projected returns over a future period so that the account value returns to the long-term expected rate of return, providing that those projected returns do not exceed certain caps. This Unlock for future separate account returns is determined each quarter. In the fourth quarter of 2020, the Company completed a comprehensive policyholder behavior assumption study which resulted in a non-market related after-tax charge and incorporated the results of that study into its projection of future gross profits. Additionally, throughout the year, the Company evaluates various aspects of policyholder behavior and will revise its policyholder behavior assumptions if credible emerging data indicates that changes are warranted. Upon completion of an annual assumption study or evaluation of credible new information, the Company will revise its assumptions to reflect its current best estimate. These assumption revisions will change the projected account values and the related EGPs in the VOBA models, as well as EGPs used in the death and other insurance benefit reserving models. All assumption changes that affect the estimate of future EGPs including the update of current account values, the use of the RTM estimation technique, and policyholder behavior assumptions are considered an Unlock in the period of revision. An Unlock adjusts the VOBA (Successor Company), death and other insurance benefit reserve balances on the Consolidated Balance Sheets with an offsetting benefit or charge on the Consolidated Statements of Operations in the period of the revision. An Unlock revises EGPs to reflect the Company's current best estimate assumptions. The Company also tests the aggregate recoverability of VOBA (Successor Company) by comparing the existing balance to the present value of future EGPs. An Unlock that results in an after-tax benefit generally occurs as a result of actual experience or future expectations of product profitability being favorable compared to previous estimates. An Unlock that results in an after-tax charge generally occurs as a result of actual experience or future expectations of product profitability being unfavorable compared to previous estimates. |
Reserves for Future Policy Benefits and Unpaid Losses and Loss Adjustment | Reserve for Future Policy Benefits Reserve for Future Policy Benefits on Universal Life-type Contracts Certain contracts classified as universal life-type include death and other insurance benefit features including guaranteed minimum death benefit ("GMDB") and the life-contingent portion of guaranteed minimum withdrawal benefit ("GMWB") riders offered with variable annuity contracts, as well as secondary guarantee benefits offered with universal life insurance contracts. Universal life insurance secondary guarantee benefits ensure that the policy will not terminate, and will continue to provide a death benefit, even if there is insufficient policy value to cover the monthly deductions and charges. GMDB riders on variable annuities provide a death benefit during the accumulation phase that is generally equal to the greater of (a) the contract value at death or (b) premium payments less any prior withdrawals and may include adjustments that increase the benefit, such as for maximum anniversary value ("MAV"). For the Company's products with life-contingent GMWB riders, the withdrawal benefit can exceed the guaranteed remaining balance ("GRB"), which is generally equal to premiums less withdrawals. In addition to recording an account value liability that represents policyholder funds, the Company records a death and other insurance benefit liability for GMDBs, the life-contingent portion of GMWBs and the universal life insurance secondary guarantees. This death and other insurance benefit liability is reported in reserve for future policy benefits on the Company’s Consolidated Balance Sheets. Changes in the death and other insurance benefit reserves are recorded in benefits, losses and loss adjustment expenses on the Company’s Consolidated Statements of Operations. The death and other insurance benefit liability is determined by estimating the expected present value of the benefits in excess of the policyholder’s expected account value in proportion to the present value of total expected assessments and investment margin. Total expected assessments are the aggregate of all contract charges, including those for administration, mortality, expense, and surrender. The liability is accrued as actual assessments are earned. The expected present value of benefits and assessments are generally derived from a set of stochastic scenarios that have been calibrated to our RTM separate account returns and assumptions including market rates of return, volatility, discount rates, lapse rates and mortality experience. Consistent with the Company’s policy on the Unlock, the Company regularly evaluates estimates used and adjusts the liability, with a related charge or credit to benefits, losses and loss adjustment expenses. For further information on the Unlock, see the Deferred Policy Acquisition Costs (Predecessor Company)/Value of Business Acquired (Successor Company) accounting policy section within this footnote. The Company reinsures a portion of its in-force GMDB, GMWB, and all of its universal life insurance secondary guarantees. Net reinsurance costs are recognized ratably over the accumulation period based on total expected assessments. Reserve for Future Policy Benefits on Traditional Annuity and Other Contracts Traditional annuities recorded within the reserve for future policy benefits primarily include life-contingent contracts in the payout phase such as structured settlements and terminal funding agreements. Other contracts within the reserve for policyholder benefits include whole life and guaranteed term life insurance contracts. The reserve for future policy benefits is calculated using standard actuarial methods considering the present value of future benefits and related expenses to be paid less the present value of the portion of future premiums required using assumptions “locked in” at the time the policies were issued, including discount rate, withdrawal, mortality and expense assumptions deemed appropriate at the issue date. Future policy benefits are computed at amounts that, with additions from any estimated premiums to be received and with interest on such reserves compounded annually at assumed rates, are expected to be sufficient to meet the Company’s policy obligations at their maturities or in the event of an insured’s death. While assumptions are locked in upon issuance of new contracts and annuitizations of existing contracts, significant changes in experience or assumptions may require the Company to establish premium deficiency reserves. Premium deficiency reserves, if any, are established based on current assumptions without considering a provision for adverse deviation. Changes in or deviations from the assumptions used can significantly affect the Company’s reserve levels and results from operations. The Company uses reinsurance for a portion of its fixed and payout annuity businesses and its life insurance business. |
Other Policyholder Funds and Benefits Payable | Other Policyholder Funds and Benefits Payable Other policyholder funds and benefits payable primarily include the non-variable account values associated with variable annuity and other universal life-type contracts, investment contracts, the non-life contingent portion of GMWBs that are accounted for as embedded derivatives at fair value as well as other policyholder account balances associated with our life insurance businesses. Investment contracts are non-life contingent and include institutional and governmental deposits, structured settlements and fixed annuities. The liability for investment contracts is equal to the balance that accrues to the benefit of the contract holder as of the financial statement date, which includes the accumulation of deposits plus credited interest, less withdrawals, payments and assessments through the financial statement date. For discussion of fair value of GMWBs that represent embedded derivatives, see Note 2 - Fair Value Measurements of Notes to Consolidated Financial Statements. Separate Account Liabilities The Company records the variable account value portion of variable annuities, variable life insurance products and individual, institutional, and governmental investment contracts within separate accounts. Separate account assets are reported at fair value and separate account liabilities are reported at amounts consistent with separate account assets. Investment income and gains and losses from those separate account assets accrue directly to the policyholder, who assumes the related investment risk, and are offset by change in the related liability. Changes in the value of separate account assets and separate account liabilities are reported in the same line item on the Consolidated Statements of Operations. The Company earns fee income for investment management, certain administrative services and mortality and expense risks. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fixed Maturities, Equity Securities, Short-term Investments, and Free-standing Derivatives Valuation Techniques The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach comprised of the following pricing sources and techniques, which are listed in priority order: • Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1. • Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities, such as municipal securities and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3. • Internal matrix pricing, which is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s financial strength and term to maturity, using an independent public security index, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the inputs are observable or can be corroborated with observable data. • Independent broker quotes, which are typically non-binding use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3. The fair value of free-standing derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporates counterparty credit risk. In some cases, quoted market prices for exchange-traded and OTC cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments. Unobservable market data is used in the valuation of customized derivatives that are used to hedge certain GMWB variable annuity riders. See the section “GMWB Embedded, Customized, and Reinsurance Derivatives” below for further discussion of the valuation model used to value these customized derivatives. Valuation Inputs Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, certain short-term investments, and exchange traded futures and option contracts. Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Freestanding Derivatives Level 2 Level 3 Fixed Maturity Investments Structured securities (includes ABS, CLOs, CMBS and RMBS) • Benchmark yields and spreads Other inputs for ABS, CLOs, and RMBS: • Independent broker quotes Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: Corporates • Benchmark yields and spreads Other inputs for investment grade privately placed securities that utilize internal matrix pricing: • Independent broker quotes Other inputs for below investment grade privately placed securities: U.S Treasuries, Municipals, and Foreign government/government agencies • Benchmark yields and spreads • Credit spreads beyond observable curve Equity Securities • Quoted prices in markets that are not active • For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable Short-term Investments • Benchmark yields and spreads • Independent broker quotes Derivatives Credit derivatives • Swap yield curve Not applicable Equity derivatives • Equity index levels • Independent broker quotes Foreign exchange derivatives • Swap yield curve Not applicable Interest rate derivatives • Swap yield curve • Independent broker quotes GMWB Embedded, Customized and Reinsurance Derivatives GMWB Embedded Derivatives The Company formerly offered certain variable annuity products with GMWB riders that provide the policyholder with a guaranteed remaining balance ("GRB") which is generally equal to premiums less withdrawals. If the policyholder’s account value is reduced to a specified level through a combination of market declines and withdrawals but the GRB still has value, the Company is obligated to continue to make annuity payments to the policyholder until the GRB is exhausted. When payments of the GRB are not life-contingent, the GMWB represents an embedded derivative carried at fair value reported in other policyholder funds and benefits payable on the Consolidated Balance Sheets with changes in fair value reported in net realized capital gains and losses. Free-standing Customized Derivatives The Company holds free-standing customized derivative contracts to provide protection from certain capital markets risks for the remaining term of specified blocks of non-reinsured GMWB riders. These customized derivatives are based on policyholder behavior assumptions specified at the inception of the derivative contracts. The Company retains the risk for differences between assumed and actual policyholder behavior and between the performance of the actively managed funds underlying the separate accounts and their respective indices. These derivatives are reported on the Consolidated Balance Sheets within other investments or other liabilities, as appropriate, after considering the impact of master netting agreements. GMWB Reinsurance Derivative The Company has reinsurance arrangements in place to transfer a portion of its risk of loss due to GMWB. These arrangements are recognized as derivatives carried at fair value and reported in reinsurance recoverables on the Consolidated Balance Sheets. Changes in the fair value of the reinsurance agreements are reported in net realized capital gains and losses. Valuation Techniques Fair values for GMWB embedded derivatives, free-standing customized derivatives and reinsurance derivatives are classified as Level 3 in the fair value hierarchy and are calculated using internally developed models that utilize significant unobservable inputs because active, observable markets do not exist for these items. In valuing the GMWB embedded derivative, the Company attributes to the derivative a portion of the expected fees to be collected over the expected life of the contract from the contract holder equal to the present value of future GMWB claims. The excess of fees collected from the contract holder in the current period over the portion of fees attributed to the embedded derivative in the current period are associated with the host variable annuity contract and reported in fee income. Valuation Inputs The fair value for each of the non-life contingent GMWBs, the free-standing customized derivatives and the GMWB reinsurance derivative is calculated as an aggregation of the following components: Best Estimate Claim Payments; Credit Standing Adjustment; and Margins. The Company believes the aggregation of these components results in an amount that a market participant in an active liquid market would require, if such a market existed, to assume the risks associated with the guaranteed minimum benefits and the related reinsurance and customized derivatives. Each component described in the following discussion is unobservable in the marketplace and requires subjectivity by the Company in determining its value. Best Estimate Claim Payments The Best Estimate Claim Payments are calculated based on actuarial and capital market assumptions related to projected cash flows, including the present value of benefits and related contract charges, over the lives of the contracts, incorporating unobservable inputs including expectations concerning policyholder behavior. Credit Standing Adjustment The credit standing adjustment is an estimate of the adjustment to the fair value that market participants would require in determining fair value to reflect the risk that GMWB benefit obligations or the GMWB reinsurance recoverables will not be fulfilled. The Company incorporates a blend of estimates of peer company and reinsurer bond spreads and credit default spreads from capital markets, adjusted for market recoverability. Margins The behavior risk margin adds a margin that market participants would require, in determining fair value, for the risk that the Company’s assumptions about policyholder behavior could differ from actual experience. The behavior risk margin is calculated by taking the difference between adverse policyholder behavior assumptions and best estimate assumptions. Valuation Inputs Used in Levels 2 and 3 Measurements for GMWB Embedded, Customized and Reinsurance Derivatives Level 2 Level 3 • Risk-free rates as represented by the Eurodollar futures, LIBOR deposits and swap rates to derive forward curve rates • Market implied equity volatility assumptions Assumptions about policyholder behavior, including: |
Derivatives, Methods of Accounting, Hedge Documentation [Policy Text Block] | Strategies that Qualify for Hedge Accounting Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 of these financial statements. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities or liability contracts. As a result of pushdown accounting, derivative instruments that previously qualified for hedge accounting were de-designated and recorded at fair value through adjustments to additional paid in capital at the acquisition date. The hedge strategies by hedge accounting designation include: Cash Flow Hedges Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on floating-rate fixed maturity securities to fixed rates. Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts and liability payments to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates. Non-qualifying Strategies Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include the hedge program for the Company's variable annuity products as well as the hedging and replication strategies that utilize credit default swaps. In addition, hedges of interest rate, foreign currency and equity risk of certain fixed maturities, equities and liabilities do not qualify for hedge accounting. The non-qualifying strategies include: Interest Rate Swaps, Swaptions and Futures The Company uses interest rate swaps, swaptions and futures to manage interest rate duration between assets and liabilities in certain investment portfolios. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap. As of December 31, 2020 and 2019 (Successor Company), the notional amount of interest rate swaps in offsetting relationships was $1.3 billion for both years. Foreign Currency Swaps and Forwards The Company enters into foreign currency swaps to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S. dollars. The Company also enters into foreign currency forwards to hedge non-U.S. dollar denominated cash. Fixed Payout Annuity Hedge The Company previously had obligations for certain yen denominated fixed payout annuities under an assumed reinsurance contract. The Company had in place swap contracts to hedge the currency and yen interest rate exposure between the U.S. dollar denominated assets and the yen denominated fixed liability reinsurance payments. The last swap matured on October 31, 2019. Credit Contracts Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty or the Company should the referenced security issuers experience a credit event, as defined in the contract. In addition, the Company enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward. Equity Index Swaps and Options The Company enters into equity index options to hedge the impact of a decline in the equity markets on the investment portfolio. Macro Hedge Program The Company utilizes equity swaps, options and futures as well as interest rate swaps to provide protection against the statutory tail scenario risk to the Company's statutory surplus arising from higher GMWB and guaranteed minimum death benefits ("GMDB") claims as well as lower variable annuity fee revenue. GMWB Derivatives, net The Company formerly offered certain variable annuity products with GMWB riders. The GMWB product is a bifurcated embedded derivative (“GMWB product derivatives”) that has a notional value equal to the GRB. The Company uses reinsurance contracts to transfer a portion of its risk of loss due to GMWB. The reinsurance contracts covering GMWB (“GMWB reinsurance contracts”) are accounted for as free-standing derivatives with a notional amount equal to the GRB reinsured. During 2020, the Company closed the dynamic hedging program as the targeted risk exposure was no longer significant. Any risks covered previously under the dynamic hedging program are now covered by the macro hedge program. The Company previously utilized derivatives (“GMWB hedging instruments”) as part of a dynamic hedging program designed to hedge a portion of the capital market risk exposures of the non-reinsured GMWB riders. The GMWB hedging instruments hedged changes in interest rates, equity market levels, and equity volatility. These derivatives included customized swaps, interest rate swaps and futures, and equity swaps, options and futures, on certain indices including the S&P 500 index, EAFE index and NASDAQ index. The Company retained the risk for differences between assumed and actual policyholder behavior and between the performance of the actively managed funds underlying the separate accounts and their respective indices. |
Commitments and Contingencies, Policy [Policy Text Block] | Contingencies Relating to Corporate Litigation and Regulatory Matters Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes reserves for these contingencies at its “best estimate,” or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated liability at the low end of the range of losses. |
Fair Value Measurements Level 2
Fair Value Measurements Level 2 (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fixed Maturities, Equity Securities, Short-term Investments, and Free-standing Derivatives Valuation Techniques The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach comprised of the following pricing sources and techniques, which are listed in priority order: • Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1. • Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities, such as municipal securities and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3. • Internal matrix pricing, which is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s financial strength and term to maturity, using an independent public security index, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the inputs are observable or can be corroborated with observable data. • Independent broker quotes, which are typically non-binding use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3. The fair value of free-standing derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporates counterparty credit risk. In some cases, quoted market prices for exchange-traded and OTC cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments. Unobservable market data is used in the valuation of customized derivatives that are used to hedge certain GMWB variable annuity riders. See the section “GMWB Embedded, Customized, and Reinsurance Derivatives” below for further discussion of the valuation model used to value these customized derivatives. Valuation Inputs Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, certain short-term investments, and exchange traded futures and option contracts. Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Freestanding Derivatives Level 2 Level 3 Fixed Maturity Investments Structured securities (includes ABS, CLOs, CMBS and RMBS) • Benchmark yields and spreads Other inputs for ABS, CLOs, and RMBS: • Independent broker quotes Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: Corporates • Benchmark yields and spreads Other inputs for investment grade privately placed securities that utilize internal matrix pricing: • Independent broker quotes Other inputs for below investment grade privately placed securities: U.S Treasuries, Municipals, and Foreign government/government agencies • Benchmark yields and spreads • Credit spreads beyond observable curve Equity Securities • Quoted prices in markets that are not active • For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable Short-term Investments • Benchmark yields and spreads • Independent broker quotes Derivatives Credit derivatives • Swap yield curve Not applicable Equity derivatives • Equity index levels • Independent broker quotes Foreign exchange derivatives • Swap yield curve Not applicable Interest rate derivatives • Swap yield curve • Independent broker quotes GMWB Embedded, Customized and Reinsurance Derivatives GMWB Embedded Derivatives The Company formerly offered certain variable annuity products with GMWB riders that provide the policyholder with a guaranteed remaining balance ("GRB") which is generally equal to premiums less withdrawals. If the policyholder’s account value is reduced to a specified level through a combination of market declines and withdrawals but the GRB still has value, the Company is obligated to continue to make annuity payments to the policyholder until the GRB is exhausted. When payments of the GRB are not life-contingent, the GMWB represents an embedded derivative carried at fair value reported in other policyholder funds and benefits payable on the Consolidated Balance Sheets with changes in fair value reported in net realized capital gains and losses. Free-standing Customized Derivatives The Company holds free-standing customized derivative contracts to provide protection from certain capital markets risks for the remaining term of specified blocks of non-reinsured GMWB riders. These customized derivatives are based on policyholder behavior assumptions specified at the inception of the derivative contracts. The Company retains the risk for differences between assumed and actual policyholder behavior and between the performance of the actively managed funds underlying the separate accounts and their respective indices. These derivatives are reported on the Consolidated Balance Sheets within other investments or other liabilities, as appropriate, after considering the impact of master netting agreements. GMWB Reinsurance Derivative The Company has reinsurance arrangements in place to transfer a portion of its risk of loss due to GMWB. These arrangements are recognized as derivatives carried at fair value and reported in reinsurance recoverables on the Consolidated Balance Sheets. Changes in the fair value of the reinsurance agreements are reported in net realized capital gains and losses. Valuation Techniques Fair values for GMWB embedded derivatives, free-standing customized derivatives and reinsurance derivatives are classified as Level 3 in the fair value hierarchy and are calculated using internally developed models that utilize significant unobservable inputs because active, observable markets do not exist for these items. In valuing the GMWB embedded derivative, the Company attributes to the derivative a portion of the expected fees to be collected over the expected life of the contract from the contract holder equal to the present value of future GMWB claims. The excess of fees collected from the contract holder in the current period over the portion of fees attributed to the embedded derivative in the current period are associated with the host variable annuity contract and reported in fee income. Valuation Inputs The fair value for each of the non-life contingent GMWBs, the free-standing customized derivatives and the GMWB reinsurance derivative is calculated as an aggregation of the following components: Best Estimate Claim Payments; Credit Standing Adjustment; and Margins. The Company believes the aggregation of these components results in an amount that a market participant in an active liquid market would require, if such a market existed, to assume the risks associated with the guaranteed minimum benefits and the related reinsurance and customized derivatives. Each component described in the following discussion is unobservable in the marketplace and requires subjectivity by the Company in determining its value. Best Estimate Claim Payments The Best Estimate Claim Payments are calculated based on actuarial and capital market assumptions related to projected cash flows, including the present value of benefits and related contract charges, over the lives of the contracts, incorporating unobservable inputs including expectations concerning policyholder behavior. Credit Standing Adjustment The credit standing adjustment is an estimate of the adjustment to the fair value that market participants would require in determining fair value to reflect the risk that GMWB benefit obligations or the GMWB reinsurance recoverables will not be fulfilled. The Company incorporates a blend of estimates of peer company and reinsurer bond spreads and credit default spreads from capital markets, adjusted for market recoverability. Margins The behavior risk margin adds a margin that market participants would require, in determining fair value, for the risk that the Company’s assumptions about policyholder behavior could differ from actual experience. The behavior risk margin is calculated by taking the difference between adverse policyholder behavior assumptions and best estimate assumptions. Valuation Inputs Used in Levels 2 and 3 Measurements for GMWB Embedded, Customized and Reinsurance Derivatives Level 2 Level 3 • Risk-free rates as represented by the Eurodollar futures, LIBOR deposits and swap rates to derive forward curve rates • Market implied equity volatility assumptions Assumptions about policyholder behavior, including: |
Derivative Instruments Level 2
Derivative Instruments Level 2 (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivative Instruments Overview The Company utilizes a variety of over-the-counter ("OTC") transactions cleared through central clearing houses ("OTC-cleared") and exchange traded derivative instruments as part of its overall risk management strategy as well as to enter into replication transactions. The types of instruments may include swaps, caps, floors, forwards, futures and options to achieve one of four Company-approved objectives: • to hedge risk arising from interest rate, equity market, commodity market, credit spread and issuer default, price or currency exchange rate risk or volatility; • to manage liquidity; • to control transaction costs; • to enter into synthetic replication transactions. Interest rate and credit default swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, little to no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. Interest rate cap and floor contracts entitle the purchaser to receive from the issuer at specified dates, the amount, if any, by which a specified market rate exceeds the cap strike interest rate or falls below the floor strike interest rate, applied to a notional principal amount. A premium payment determined at inception is made by the purchaser of the contract and no principal payments are exchanged. Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash. Financial futures are standardized commitments to either purchase or sell designated financial instruments, at a future date, for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures’ contract values are settled daily in cash. Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date. The contracts may reference commodities, which grant the purchaser the right to either purchase from or sell to the issuer commodities at a specified price, within a specified period or on a stated date. Option contracts are typically settled in cash. Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be a periodic exchange of payments at specified intervals calculated using the agreed upon rates and exchanged principal amounts. The Company’s derivative transactions conducted in insurance company subsidiaries are used in strategies permitted under the derivative use plans required by the State of Connecticut and the State of New York insurance departments. Accounting and Financial Statement Presentation of Derivative Instruments and Hedging Activities Derivative instruments are recognized on the Consolidated Balance Sheets at fair value and are reported in Other Investments and Other Liabilities. For balance sheet presentation purposes, the Company has elected to offset the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty or under a master netting agreement, which provides the Company with the legal right of offset. The Company clears certain interest rate swap and credit default swap derivative transactions through central clearing houses. OTC-cleared derivatives require initial collateral at the inception of the trade in the form of cash or highly liquid securities, such as U.S. Treasuries and government agency investments. Central clearing houses also require additional cash as variation margin based on daily market value movements. For information on collateral, see the derivative collateral arrangements section in Note 4 - Derivative Instruments of Notes to Consolidated Financial Statements. In addition, OTC-cleared transactions include price alignment amounts either received or paid on the variation margin, which are reflected in realized capital gains and losses or, if characterized as interest, in net investment income. On the date the derivative contract is entered into, the Company designates the derivative as (1) a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset or liability (“cash flow” hedge), (2) a hedge of a net investment in a foreign operation (“net investment” hedge) or (3) held for other investment and/or risk management purposes, which primarily involve managing asset or liability related risks and do not qualify for hedge accounting. Cash Flow Hedges - Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge, including foreign-currency cash flow hedges, are recorded in AOCI and are reclassified into earnings when the variability of the cash flow of the hedged item impacts earnings. Gains and losses on derivative contracts that are reclassified from AOCI to current period earnings are included in the line item in the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. For periods prior to 2019, hedge ineffectiveness was recorded immediately in current period earnings as net realized capital gains and losses. With the January 1, 2019 adoption of the updated FASB hedging guidance, ineffectiveness is recognized in earnings only when the hedged transaction affects earnings; otherwise, the ineffectiveness gains and losses remain in AOCI. Periodic derivative net coupon settlements are recorded in the line item of the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. Cash flows from cash flow hedges are presented in the same category as the cash flows from the items being hedged on the Consolidated Statements of Cash Flows. Other Investment and/or Risk Management Activities - The Company’s other investment and/or risk management activities primarily relate to strategies used to reduce economic risk or replicate permitted investments and do not receive hedge accounting treatment. Changes in the fair value, including periodic derivative net coupon settlements, of derivative instruments held for other investment and/or risk management purposes are reported in current period earnings as net realized capital gains and losses. Hedge Documentation and Effectiveness Testing To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in fair value or cash flow of the hedged item. At hedge inception, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking each hedge transaction. The documentation process includes linking derivatives that are designated as fair value, cash flow, or net investment hedges to specific assets or liabilities on the balance sheet or to specific forecasted transactions and defining the effectiveness testing methods to be used. The Company also formally assesses both at the hedge’s inception and ongoing on a quarterly basis, whether the derivatives that are used in hedging transactions have been and are expected to continue to be highly effective in offsetting changes in fair values, cash flows or net investment in foreign operations of hedged items. Hedge effectiveness is assessed primarily using quantitative methods as well as using qualitative methods. Quantitative methods include regression or other statistical analysis of changes in fair value or cash flows associated with the hedge relationship. Qualitative methods may include comparison of critical terms of the derivative to the hedged item. Discontinuance of Hedge Accounting The Company discontinues hedge accounting prospectively when (1) it is determined that the qualifying criteria are no longer met; (2) the derivative is no longer designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised. When cash flow hedge accounting is discontinued because the Company becomes aware that it is not probable that the forecasted transaction will occur, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses that were accumulated in AOCI are recognized immediately in earnings. In other situations in which hedge accounting is discontinued, including those where the derivative is sold, terminated or exercised, amounts previously deferred in AOCI are reclassified into earnings when earnings are impacted by the hedged item. Embedded Derivatives The Company purchases investments and has previously issued financial products that contain embedded derivative instruments. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument on the Consolidated Balance Sheets, is carried at fair value with changes in fair value reported in net realized capital gains and losses. Credit Risk Credit risk is defined as the risk of financial loss due to uncertainty of an obligor’s or counterparty’s ability or willingness to meet its obligations in accordance with agreed upon terms. Credit exposures are measured using the market value of the derivatives, resulting in amounts owed to the Company by its counterparties or potential payment obligations from the Company to its counterparties. The Company generally requires that OTC derivative contracts, other than certain forward contracts, be governed by International Swaps and Derivatives Association ("ISDA") agreements which are structured by legal entity and by counterparty, and permit right of offset. Some agreements require daily collateral settlement based upon agreed upon thresholds. For purposes of daily derivative collateral maintenance, credit exposures are generally quantified based on the prior business day’s market value and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of the derivatives exceed the contractual thresholds. For the Company’s domestic derivative programs, the maximum uncollateralized threshold for a derivative counterparty for a single legal entity is $10. The Company also minimizes the credit risk of derivative instruments by entering into transactions with high quality counterparties primarily rated A or better, which are monitored and evaluated by the Company’s risk management team and reviewed by senior management. OTC-cleared derivatives are governed by clearing house rules. Transactions cleared through a central clearing house reduce risk due to their ability to require daily variation margin and act as an independent valuation source. In addition, the Company monitors counterparty credit exposure on a monthly basis to ensure compliance with Company policies and statutory limitations. Derivative Instruments The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate risk or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies. The Company also may enter into and has previously issued financial instruments and products that either are accounted for as free-standing derivatives, such as certain reinsurance contracts, or as embedded derivative instruments, such as certain GMWB riders included with certain variable annuity products. |
Derivatives, Methods of Accounting, Hedge Documentation [Policy Text Block] | Strategies that Qualify for Hedge Accounting Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 of these financial statements. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities or liability contracts. As a result of pushdown accounting, derivative instruments that previously qualified for hedge accounting were de-designated and recorded at fair value through adjustments to additional paid in capital at the acquisition date. The hedge strategies by hedge accounting designation include: Cash Flow Hedges Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on floating-rate fixed maturity securities to fixed rates. Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts and liability payments to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates. Non-qualifying Strategies Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include the hedge program for the Company's variable annuity products as well as the hedging and replication strategies that utilize credit default swaps. In addition, hedges of interest rate, foreign currency and equity risk of certain fixed maturities, equities and liabilities do not qualify for hedge accounting. The non-qualifying strategies include: Interest Rate Swaps, Swaptions and Futures The Company uses interest rate swaps, swaptions and futures to manage interest rate duration between assets and liabilities in certain investment portfolios. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap. As of December 31, 2020 and 2019 (Successor Company), the notional amount of interest rate swaps in offsetting relationships was $1.3 billion for both years. Foreign Currency Swaps and Forwards The Company enters into foreign currency swaps to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S. dollars. The Company also enters into foreign currency forwards to hedge non-U.S. dollar denominated cash. Fixed Payout Annuity Hedge The Company previously had obligations for certain yen denominated fixed payout annuities under an assumed reinsurance contract. The Company had in place swap contracts to hedge the currency and yen interest rate exposure between the U.S. dollar denominated assets and the yen denominated fixed liability reinsurance payments. The last swap matured on October 31, 2019. Credit Contracts Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty or the Company should the referenced security issuers experience a credit event, as defined in the contract. In addition, the Company enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward. Equity Index Swaps and Options The Company enters into equity index options to hedge the impact of a decline in the equity markets on the investment portfolio. Macro Hedge Program The Company utilizes equity swaps, options and futures as well as interest rate swaps to provide protection against the statutory tail scenario risk to the Company's statutory surplus arising from higher GMWB and guaranteed minimum death benefits ("GMDB") claims as well as lower variable annuity fee revenue. GMWB Derivatives, net The Company formerly offered certain variable annuity products with GMWB riders. The GMWB product is a bifurcated embedded derivative (“GMWB product derivatives”) that has a notional value equal to the GRB. The Company uses reinsurance contracts to transfer a portion of its risk of loss due to GMWB. The reinsurance contracts covering GMWB (“GMWB reinsurance contracts”) are accounted for as free-standing derivatives with a notional amount equal to the GRB reinsured. During 2020, the Company closed the dynamic hedging program as the targeted risk exposure was no longer significant. Any risks covered previously under the dynamic hedging program are now covered by the macro hedge program. The Company previously utilized derivatives (“GMWB hedging instruments”) as part of a dynamic hedging program designed to hedge a portion of the capital market risk exposures of the non-reinsured GMWB riders. The GMWB hedging instruments hedged changes in interest rates, equity market levels, and equity volatility. These derivatives included customized swaps, interest rate swaps and futures, and equity swaps, options and futures, on certain indices including the S&P 500 index, EAFE index and NASDAQ index. The Company retained the risk for differences between assumed and actual policyholder behavior and between the performance of the actively managed funds underlying the separate accounts and their respective indices. |
Commitments and Contingencies_2
Commitments and Contingencies Level 2 (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies, Policy [Policy Text Block] | Contingencies Relating to Corporate Litigation and Regulatory Matters Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes reserves for these contingencies at its “best estimate,” or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated liability at the low end of the range of losses. |
Fair Value Measurements Level 3
Fair Value Measurements Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and (liabilities) carried at fair value by hierarchy level | Successor Company Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2020 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs Significant Unobservable Inputs (Level 3) Assets Accounted for at Fair Value on a Recurring Basis Fixed maturities, AFS Asset backed securities ("ABS") $ 444 $ — $ 444 $ — Collateralized loan obligations ("CLOs") 1,428 — 1,169 259 Commercial mortgage-backed securities ("CMBS") 1,215 — 1,161 54 Corporate 8,552 — 8,224 328 Foreign government/government agencies 266 — 266 — Municipal 875 — 875 — Residential mortgage-backed securities ("RMBS") 769 — 615 154 U.S. Treasuries 1,326 117 1,209 — Total fixed maturities 14,875 117 13,963 795 Equity securities, at fair value 65 11 22 32 Derivative assets Foreign exchange derivatives (1) — (1) — Interest rate derivatives 6 — 4 2 Macro hedge program 7 — 7 — Total derivative assets [1] 12 — 10 2 Short-term investments 802 586 194 22 Reinsurance recoverable for GMWB 7 — — 7 Separate account assets [2] 108,748 67,679 40,609 20 Total assets accounted for at fair value on a recurring basis $ 124,509 $ 68,393 $ 54,798 $ 878 Liabilities accounted for at fair value on a recurring basis Other policyholder funds and benefits payable GMWB embedded derivative $ 21 $ — $ — $ 21 Total other policyholder funds and benefits payable 21 — — 21 Derivative liabilities Foreign exchange derivatives (1) — (1) — Interest rate derivatives (19) — (19) — Macro hedge program (460) — (19) (441) Total derivative liabilities [3] (480) — (39) (441) Modified coinsurance reinsurance contracts (93) — (93) — Total liabilities accounted for at fair value on a recurring basis $ (552) $ — $ (132) $ (420) Successor Company Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2019 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs Significant Unobservable Inputs Assets Accounted for at Fair Value on a Recurring Basis Fixed maturities, AFS ABS $ 295 $ — $ 282 $ 13 CLOs 1,150 — 1,092 58 CMBS 1,391 — 1,354 37 Corporate 8,121 — 7,734 387 Foreign government/government agencies 409 — 409 — Municipal 761 — 761 — RMBS 868 — 621 247 U.S. Treasuries 993 — 993 — Total fixed maturities 13,988 — 13,246 742 Equity securities, at fair value 45 11 1 33 Derivative assets GMWB hedging instruments 23 — — 23 Macro hedge program 49 — — 49 Total derivative assets [1] 72 — — 72 Other investments 6 — 6 — Short-term investments 550 330 214 6 Reinsurance recoverable for GMWB 17 — — 17 Separate account assets [2] 101,698 63,850 37,825 23 Total assets accounted for at fair value on a recurring basis $ 116,376 $ 64,191 $ 51,292 $ 893 Liabilities Accounted for at Fair Value on a Recurring Basis Other policyholder funds and benefits payable GMWB embedded derivative $ 5 $ — $ — $ 5 Total other policyholder funds and benefits payable 5 — — 5 Derivative liabilities Credit derivatives (1) — (1) — Foreign exchange derivatives (7) — (7) — Interest rate derivatives (39) — (37) (2) GMWB hedging instruments 50 — 35 15 Macro hedge program (163) — (1) (162) Total derivative liabilities [3] (160) — (11) (149) Modified coinsurance reinsurance contracts (43) — (43) — Total liabilities accounted for at fair value on a recurring basis $ (198) $ — $ (54) $ (144) |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Significant Unobservable Inputs for Level 3 - Securities As of December 31, 2020 (Successor Company) Assets Accounted for at Fair Value on a Recurring Basis Fair Value Predominant Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of Increase in Input on Fair Value [2] CLOs [3] $ 259 Discounted cash flows Spread 249bps 305bps 304bps Decrease CMBS [3] 49 Discounted cash flows Spread (encompasses 255bps 1,582bps 570bps Decrease Corporate [4] 269 Discounted cash flows Spread 116bps 1,210bps 304bps Decrease RMBS [3] 154 Discounted cash flows Spread [6] 7bps 592bps 119bps Decrease Constant prepayment rate [6] —% 10% 5% Decrease [5] Constant default rate [6] 2% 6% 3% Decrease Loss severity [6] —% 100% 81% Decrease As of December 31, 2019 (Successor Company) Assets accounted for at Fair Value on a Recurring Basis Fair Value Predominant Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of Increase in Input on Fair Value [2] CLOs [3] $ 58 Discounted cash flows Spread 113bps 246bps 243bps Decrease CMBS [3] 37 Discounted cash flows Spread (encompasses 9bps 1,832bps 266bps Decrease Corporate [4] 309 Discounted cash flows Spread 93bps 823bps 236bps Decrease RMBS [3] 247 Discounted cash flows Spread [6] 5bps 233bps 82bps Decrease Constant prepayment rate [6] —% 13% 6% Decrease [5] Constant default rate [6] 2% 5% 3% Decrease Loss severity [6] —% 100% 70% Decrease [1] The weighted average is determined based on the fair value of the securities. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. [3] Excludes securities for which the Company bases fair value on broker quotations. [4] Excludes securities for which the Company bases fair value on broker quotations; however, included are broker-priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value. [5] Decrease for above market rate coupons and increase for below market rate coupons. [6] Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads. The tables below exclude certain securities for which fair values are predominately based on independent broker quotes. Significant Unobservable Inputs for Level 3 - Freestanding Derivatives As of December 31, 2020 (Successor Company) Fair Value Predominant Valuation Technique Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of Increase in Input on Fair Value [2] Interest rate derivatives Interest rate swaps $ 2 Discounted cash flows Swap curve beyond 30 years 1% 1% 1% Decrease Macro hedge program [3], [4] Equity options (471) Option model Equity volatility —% 53% 31% Increase Customized swaps 21 Discounted cash flows Equity volatility 16% 26% 19% Increase Interest rate swaption 9 Option model Interest rate volatility 1% 1% 1% Increase As of December 31, 2019 (Successor Company) Fair Value Predominant Valuation Technique Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of Increase in Input on Fair Value [2] Interest rate derivatives Interest rate swaps $ (2) Discounted cash flows Swap curve beyond 30 years 2% 2% 2% Decrease GMWB hedging instruments Customized swaps 35 Discounted cash flows Equity volatility 11% 23% 17% Increase Interest rate swaption 3 Option model Interest rate volatility 2% 2% 2% Increase Macro hedge program [3] Equity options (111) Option model Equity volatility 11% 35% 22% Increase Interest rate swaption (3) Option model Interest rate volatility 2% 2% 2% Increase [1] The weighted average is determined based on the fair value of the securities. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions. [3] Excludes derivatives for which the Company bases fair value on broker quotations. [4] Includes activity previously reported as GMWB hedging instruments. For further discussion please refer to GMWB Derivatives, net in Footnote 4 - Derivative Instruments of Notes to Consolidated Financial Statements. |
Roll-forward of Financial Instruments Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the year ended December 31, 2020 (Successor Company), for which the Company had used significant unobservable inputs (Level 3): Fair Value Roll-forwards for Financial Instruments Classified as Level 3 Total Realized/Unrealized Gains (Losses) Fair Value as of January 1, 2020 Included in Net Income [1] [2] [6] Included in OCI [3] Purchases Settlements Sales Transfers into Transfers out of Level 3 [4] Fair Value as of December 31, 2020 Assets Fixed maturities, AFS ABS $ 13 $ — $ (1) $ 40 $ — $ — $ — $ (52) $ — CLOs 58 — 2 237 (28) — — (10) 259 CMBS 37 — (3) 18 — — 2 — 54 Corporate 387 2 12 51 (40) (24) 357 (417) 328 RMBS 247 — — 57 (64) (28) — (58) 154 Total fixed maturities, AFS 742 2 10 403 (132) (52) 359 (537) 795 Equity securities, at fair value 33 — — 1 — (2) — — 32 Freestanding derivatives Interest rate (2) 4 — — — — — — 2 GMWB hedging instruments 38 (38) — — — — — — — Total freestanding derivatives [5] 36 (34) — — — — — — 2 Reinsurance recoverable for GMWB 17 (21) — — 11 — — — 7 Separate accounts 23 — — 12 — (7) — (8) 20 Short-term investments 6 — — 22 (6) — — — 22 Total assets $ 857 $ (53) $ 10 $ 438 $ (127) $ (61) $ 359 $ (545) $ 878 (Liabilities) Freestanding derivatives Macro hedge program (113) (456) — 339 (211) — — — (441) Total freestanding derivatives [5] (113) (456) — 339 (211) — — — (441) Other policyholder funds and benefits payable Guaranteed withdrawal benefits 5 67 — — (51) — — — 21 Total other policyholder funds and benefits payable 5 67 — — (51) — — — 21 Total liabilities $ (108) $ (389) $ — $ 339 $ (262) $ — $ — $ — $ (420) The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the year ended December 31, 2019 (Successor Company), for which the Company had used significant unobservable inputs (Level 3): Fair Value Roll-forwards for Financial Instruments Classified as Level 3 Total Realized/Unrealized Gains (Losses) Fair Value as of January 1, 2019 Included in Net Income [1] [2] [6] Included in OCI [3] Purchases Settlements Sales Transfers into Transfers out of Level 3 [4] Fair Value as of December 31, 2019 Assets Fixed maturities, AFS ABS $ 2 $ — $ — $ 13 $ — $ — $ — $ (2) $ 13 CLOs 77 — — 155 (91) (5) — (78) 58 CMBS 41 — 2 53 (1) — — (58) 37 Corporate 327 (3) 16 41 (15) (106) 138 (11) 387 RMBS 443 — 1 — (75) (105) — (17) 247 Total fixed maturities, AFS 890 (3) 19 262 (182) (216) 138 (166) 742 Equity securities, at fair value 46 (4) — 2 (1) (10) — — 33 Freestanding derivatives Equity — (1) — 1 — — — — — GMWB hedging instruments 45 (35) — — 28 — — — 38 Total freestanding derivatives [5] 45 (36) — 1 28 — — — 38 Reinsurance recoverable for GMWB 40 (34) — — 11 — — — 17 Separate accounts 40 — — 82 — (14) 12 (97) 23 Short-term investments — — — 6 — — — — 6 Total assets $ 1,061 $ (77) $ 19 $ 353 $ (144) $ (240) $ 150 $ (263) $ 859 (Liabilities) Freestanding derivatives Interest rate $ (27) $ (6) $ — $ — $ 31 $ — $ — $ — $ (2) Macro hedge program 247 (359) — (1) — — — — (113) Total freestanding derivatives [5] 220 (365) — (1) 31 — — — (115) Other policyholder funds and benefits payable Guaranteed withdrawal benefits (80) 134 — — (49) — — — 5 Total other policyholder funds and benefits payable (80) 134 — — (49) — — — 5 Total liabilities $ 140 $ (231) $ — $ (1) $ (18) $ — $ — $ — $ (110) [1] The Company classifies realized and unrealized gains (losses) on GMWB reinsurance derivatives and GMWB embedded derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives. [2] Amounts in these columns are generally reported in net realized capital gains (losses). The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization. [3] All amounts are before income taxes and amortization. [4] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. Transfers into and out of Level 3 for the year ended December 31, 2020, were primarily related to private securities that were priced using internal matrix pricing in the prior period, but changed to broker pricing in the current period and inversely, private securities that were priced using broker pricing in the prior period, but changed to internal matrix pricing in the current period. [5] Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported on the Consolidated Balance Sheets in other investments and other liabilities. [6] Includes both market and non-market impacts in deriving realized and unrealized gains (losses). Changes in Unrealized Gains (Losses) included in Net Income for Financial Instruments Classified as Level 3 Still Held at End of Period [1] [2] Successor Company For the Years Ended December 31, 2020 2019 Assets Fixed maturities, AFS Corporate $ — $ (4) Total fixed maturities, AFS — (4) Equity securities, at fair value — (2) Freestanding derivatives Equity — (1) Interest rate 6 (6) GMWB hedging instruments [3] (16) (35) Total freestanding derivatives (10) (42) Reinsurance recoverable for GMWB (21) (34) Total assets $ (31) $ (82) (Liabilities) Freestanding derivatives Macro hedge program [3] $ (212) $ (359) Total freestanding derivatives (212) (359) Other policyholder funds and benefits payable Guaranteed withdrawal benefits 67 134 Total other policyholder funds and benefits payable 67 134 Total liabilities $ (145) $ (225) [1] All amounts presented are reported in net realized capital gains (losses).The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization. [2] Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein. [3] The dynamic hedge program, which included GMWB hedging instruments, was closed in the first half of 2020. Any risks previously covered by the dynamic hedging program are now covered by the macro hedge program. Changes in Unrealized Gains (Losses) included in OCI for Financial Instruments Classified as Level 3 Still Held at End of Period [1] Successor Company For the Years Ended December 31, 2020 2019 Assets Fixed maturities, AFS CLOs $ 1 $ — CMBS (3) 1 Corporate 7 17 RMBS (1) 1 Total fixed maturities, AFS 4 19 Total assets $ 4 $ 19 [1] Changes in unrealized gains (losses) on fixed maturities, AFS are reported in changes in net unrealized gain on securities on the Consolidated Statements of Comprehensive Income (Loss). |
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value | Financial Assets and Liabilities Not Carried at Fair Value (Successor Company) Fair Value Carrying Amount [1] Fair Carrying Amount Fair December 31, 2020 December 31, 2019 Assets Policy loans Level 3 $ 1,452 $ 1,452 $ 1,467 $ 1,467 Mortgage loans Level 3 $ 2,092 $ 2,248 $ 2,241 $ 2,331 Liabilities Other policyholder funds and benefits payable [2] Level 3 $ 5,282 $ 5,261 $ 6,049 $ 5,912 Assumed investment contracts [3] Level 3 $ — $ — $ 1 $ 1 [1] As of December 31, 2020, carrying amount of mortgage loans is net of ACL of $17. [2] Excludes group accident and health and universal life insurance contracts, including corporate owned life insurance. [3] Included in other liabilities on the Consolidated Balance Sheets. |
Investment Holding Level 3 (Tab
Investment Holding Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Investment Income [Table Text Block] | Net Investment Income Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 (Before tax) 2020 2019 Fixed maturities [1] $ 518 $ 586 $ 343 $ 395 Equity securities 7 6 9 4 Mortgage loans 92 92 49 54 Policy loans 82 84 48 32 Limited partnerships and other alternative investments 130 161 67 41 Other investments [2] 13 19 11 13 Investment expenses (26) (24) (18) (19) Total net investment income $ 816 $ 924 $ 509 $ 520 [1] Includes net investment income on short-term investments. [2] Includes income from derivatives that qualify for hedge accounting and hedge fixed maturities along with income on assets from the Corporate Owned Life Insurance ("COLI") block of business. |
Realized Gain (Loss) on Investments [Table Text Block] | Net Realized Capital Gains (Losses) Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 (Before tax) 2020 2019 Gross gains on sales $ 166 $ 67 $ 12 $ 49 Gross losses on sales (32) (18) (38) (112) Equity securities [1] 1 2 (21) 2 Net credit losses on fixed maturities, AFS [2] (1) Change in ACL on mortgage loans [3] (8) Intent-to-sell impairments (6) — (1) — Net OTTI losses recognized in earnings (4) (6) — Valuation allowances on mortgage loans — (5) — Results of variable annuity hedge program: GMWB derivatives, net 82 53 12 12 Macro hedge program (414) (418) 153 (36) Total results of variable annuity hedge program (332) (365) 165 (24) Transactional foreign currency revaluation 3 (4) 9 (6) Non-qualifying foreign currency derivatives (7) (4) (10) 7 Other, net [4] 142 51 37 (23) Net realized capital gains (losses) $ (74) $ (275) $ 142 $ (107) [1] The net unrealized gains (losses) on equity securities included in net realized capital gains (losses) related to equity securities still held as of December 31, 2020 (Successor Company), were $4 for the year ended December 31, 2020 (Successor Company).The net unrealized gains (losses) on equity securities included in net realized capital gains (losses) related to equity securities still held as of December 31, 2019 (Successor Company), were $(2) for the year ended December 31, 2019 (Successor Company).The net unrealized gains (losses) on equity securities included in net realized capital gains (losses) related to equity securities were $(14) for the period of June 1, 2018 to December 31, 2018 (Successor Company), and $(3) for the period of January 1, 2018 to May 31, 2018 (Predecessor Company). [2] Due to the adoption of accounting guidance for credit losses on January 1, 2020, realized capital losses previously reported as OTTI are now presented as credit losses which are net of any recoveries. For further information, refer to Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. [3] Represents the change in ACL recorded during the period following the adoption of accounting guidance for credit losses on January 1, 2020. For further information, refer to Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. [4] Includes gains (losses) on non-qualifying derivatives, excluding foreign currency derivatives, of $149 for the year ended December 31, 2020 (Successor Company), $54 for the year ended December 31, 2019 (Successor Company), $35 for the period of June 1, 2018 to December 31, 2018 (Successor Company), and $(10) for the period of January 1, 2018 to May 31, 2018 (Predecessor Company). |
Available-for-sale Securities [Table Text Block] | Sales of AFS Securities Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Fixed maturities, AFS Sale proceeds $ 1,789 $ 2,541 $ 2,523 $ 3,523 Gross gains 165 67 12 45 Gross losses (31) (16) (37) (47) |
Debt Securities, Available-for-sale, Allowance for Credit Loss | ACL on Fixed Maturities, AFS by Type for the Year Ended December 31, 2020 (Successor Company) (Before tax) Corporate Total Balance, beginning of year $ — $ — Credit losses on fixed maturities where an allowance was not previously recorded 1 1 Balance as of end of period $ 1 $ 1 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block] | Cumulative Credit Impairments on Fixed Maturities, AFS Successor Company Predecessor Company For the Year Ended December 31, 2019 June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 (Before tax) Balance as of beginning of period $ (6) $ — $ (88) Additions for credit impairments recognized on [1]: Fixed maturities not previously impaired (4) (6) — Reductions for credit impairments previously recognized on: Fixed maturities that matured or were sold during the period 6 — 17 Fixed maturities due to an increase in expected cash flows — — 1 Balance as of end of period $ (4) $ (6) $ (70) [1] These additions are included in net realized capital gains (losses) on the Consolidated Statements of Operations. |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Fixed Maturities, AFS Fixed Maturities, AFS by Type Successor Company December 31, 2020 December 31, 2019 Amortized Cost [1] ACL [2] Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost [1] Gross Unrealized Gains Gross Unrealized Losses Fair Value Non-Credit OTTI [3] ABS $ 436 $ — $ 8 $ — $ 444 $ 291 $ 4 $ — $ 295 $ — CLOs 1,425 — 7 (4) 1,428 1,150 6 (6) 1,150 — CMBS 1,152 — 77 (11) 1,215 1,331 65 (3) 1,391 — Corporate 7,240 (1) 1,296 (12) 8,552 7,403 696 (7) 8,121 — Foreign govt./govt. agencies 236 — 32 — 266 382 30 (1) 409 — Municipal 761 — 115 (1) 875 705 56 — 761 — RMBS 745 — 26 (2) 769 853 16 (1) 868 — U.S. Treasuries 1,142 — 192 (8) 1,326 905 88 — 993 — Total fixed maturities, AFS $ 13,137 $ (1) $ 1,753 $ (38) $ 14,875 $ 13,020 $ 961 $ (18) $ 13,988 $ — [1] The cost or amortized cost of assets that support modified coinsurance reinsurance contracts were not adjusted as part of the application of pushdown accounting. As a result, gross unrealized gains (losses) only include subsequent changes in value recorded in AOCI beginning June 1, 2018. Prior changes in value have been recorded in additional paid-in capital. [2] Represents the ACL recorded following the adoption of accounting guidance for credit losses on January 1, 2020. For further information refer to Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. [3] Represents the amount of cumulative non-credit impairment losses recognized in OCI on fixed maturities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2019 (Successor Company). |
Investments Classified by Contractual Maturity Date [Table Text Block] | Fixed maturities, AFS, by Contractual Maturity Year Successor Company December 31, 2020 December 31, 2019 Contractual Maturity Amortized Fair Amortized Fair One year or less $ 238 $ 241 $ 295 $ 300 Over one year through five years 1,376 1,462 1,260 1,297 Over five years through ten years 1,808 2,052 1,824 1,951 Over ten years 5,957 7,264 6,016 6,736 Subtotal 9,379 11,019 9,395 10,284 Mortgage-backed and asset-backed securities 3,758 3,856 3,625 3,704 Total fixed maturities, AFS $ 13,137 $ 14,875 $ 13,020 $ 13,988 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Unrealized Losses on Fixed Maturities, AFS Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2020 Successor Company Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized ABS $ — $ — $ 16 $ — $ 16 $ — CLOs 346 (1) 411 (3) 757 (4) CMBS 214 (11) 2 — 216 (11) Corporate 110 (9) 63 (3) 173 (12) Foreign govt./govt. agencies 1 — — — 1 — Municipal 28 (1) — — 28 (1) RMBS 223 (1) 39 (1) 262 (2) U.S. Treasuries 236 (8) — — 236 (8) Total fixed maturities, AFS in an unrealized loss position $ 1,158 $ (31) $ 531 $ (7) $ 1,689 $ (38) Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2019 Successor Company Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized ABS $ 51 $ — $ 14 $ — $ 65 $ — CLOs 188 (1) 642 (5) 830 (6) CMBS 93 (2) 9 (1) 102 (3) Corporate 144 (3) 176 (4) 320 (7) Foreign govt./govt. agencies 5 — 30 (1) 35 (1) Municipal 51 — — — 51 — RMBS 80 — 87 (1) 167 (1) U.S. Treasuries 13 — — — 13 — Total fixed maturities, AFS in an unrealized loss position $ 625 $ (6) $ 958 $ (12) $ 1,583 $ (18) |
Financing Receivable, Allowance for Credit Loss | Mortgage Loans ACL on Mortgage Loans The Company reviews mortgage loans on a quarterly basis to estimate the ACL, with changes in the ACL recorded in net realized capital gains and losses. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. The Company utilizes a third-party forecasting model to estimate lifetime expected credit losses at a loan level under multiple economic scenarios. The scenarios use macroeconomic data provided by an internationally recognized economics firm that generates forecasts of varying economic factors such as GDP growth, unemployment and interest rates. The economic scenarios are projected over 10 years. The first two to four years of the 10-year period assume a specific modeled economic scenario (including moderate upside, moderate recession and severe recession scenarios) and then revert to historical long-term assumptions over the remaining period. Using these economic scenarios, the forecasting model projects property-specific operating income and capitalization rates used to estimate the value of a future operating income stream. The operating income and the property valuations derived from capitalization rates are compared to loan payment and principal amounts to create debt-service coverage ratios ("DSCRs") and LTVs over the forecast period. The model overlays historical data about mortgage loan performance based on DSCRs and LTVs and projects the probability of default, amount of loss given a default and resulting expected loss through maturity for each loan under each economic scenario. Economic scenarios are probability-weighted based on a statistical analysis of the forecasted economic factors and qualitative analysis. The Company records the change in the ACL on mortgage loans based on the weighted-average expected credit losses across the selected economic scenarios. In response to significant economic stress experienced as a result of the COVID-19 pandemic during 2020 the Company increased the weight of both a moderate and severe recession in our estimate of the ACL. The Company continues to monitor economic uncertainty including rising COVID-19 infections leading to short-term lockdowns and the corresponding impact that this might have on the mortgage loan portfolio. The ultimate impact to the Company’s financial statements could vary significantly from our estimates depending on, among other things, the duration and severity of the pandemic, the duration and severity of the economic downturn and the degree to which federal, state and local government actions to mitigate the economic impact of COVID-19 are effective. The impact on our commercial mortgage loan portfolio will also be impacted by borrower behavior in response to the economic stress. Borrowers with lower LTVs have an incentive to continue to make payments of principal and/or interest in order to preserve the equity they have in the underlying commercial real estate properties. As property values decline, borrowers have less incentive to continue to make payments. When a borrower is experiencing financial difficulty, including when foreclosure is probable, the Company measures an ACL on individual mortgage loans.The ACL is established for any shortfall between the amortized cost of the loan and the fair value of the collateral less costs to sell. Estimates of collectibility from an individual borrower require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates. As of December 31, 2020 (Successor Company), the Company did not have any mortgage loans for which an ACL was established on an individual basis. There were no mortgage loans held-for-sale as of December 31, 2020 or 2019 (Successor Company). As of December 31, 2020 (Successor Company), the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract. Prior to January 1, 2020, the accounting model was based on an incurred loss approach. Mortgage loans were considered to be impaired when management estimated that, based upon current information and events, it was probable that the Company would be unable to collect amounts due according to the contractual terms of the loan agreement. For mortgage loans that were deemed impaired, a valuation allowance was established for the difference between the carrying amount and estimated value. Changes in valuation allowances were recorded in net realized capital gains and losses. ACL on Mortgage Loans Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Balance as of January 1, $ — $ 5 $ — $ — Cumulative effect of accounting changes [1] 9 Adjusted beginning ACL [2] 9 5 — — Current period provision (release) 8 (5) 5 — Balance as of December 31, $ 17 $ — $ 5 $ — [1] Represents the establishment of ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information, refer to Note 1 - Basis of Presentation and Significant Accounting Policies. [2] Prior to adoption of accounting guidance for credit losses on January 1, 2020, amounts were presented as a valuation allowance on mortgage loans. The increase in the allowance for the year-ended December 31, 2020 (Successor Company) is the result of the COVID-19 pandemic and its impacts on the economic forecasts, as discussed above, as well as lower estimated property values and operating income as compared to the prior year. |
Financing Receivable Credit Quality Indicators | Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2020 (Successor Company) 2020 2019 2018 2017 2016 2015 & Prior Total Loan-to-Value Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost [1] Avg. DSCR 65% - 80% 6 1.24x 78 1.56x 175 1.75x 94 1.98x 1 2.95x 54 1.12x 408 1.68x Less than 65% 164 2.26x 207 2.95x 178 2.24x 248 2.35x 176 2.90x 728 2.29x 1,701 2.44x Total mortgage loans $ 170 2.23x $ 285 2.56x $ 353 1.99x $ 342 2.25x $ 177 2.90x $ 782 2.21x $ 2,109 2.29x [1] Amortized cost of mortgage loans excludes ACL of $17. Mortgage Loans LTV & DSCR as of December 31, 2019 (Successor Company) Loan-to-Value Amortized Cost Avg. DSCR 65% - 80% $ 269 1.74x Less than 65% 1,972 2.44x Total mortgage loans $ 2,241 2.36x |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Text Block] | Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2020 (Successor Company) 2020 2019 2018 2017 2016 2015 & Prior Total Loan-to-Value Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost [1] Avg. DSCR 65% - 80% 6 1.24x 78 1.56x 175 1.75x 94 1.98x 1 2.95x 54 1.12x 408 1.68x Less than 65% 164 2.26x 207 2.95x 178 2.24x 248 2.35x 176 2.90x 728 2.29x 1,701 2.44x Total mortgage loans $ 170 2.23x $ 285 2.56x $ 353 1.99x $ 342 2.25x $ 177 2.90x $ 782 2.21x $ 2,109 2.29x [1] Amortized cost of mortgage loans excludes ACL of $17. Mortgage Loans by Region Successor Company December 31, 2020 December 31, 2019 Amortized Percent of Total Amortized Percent of Total East North Central $ 80 3.8 % $ 67 3.0 % East South Central 19 0.9 % 19 0.9 % Middle Atlantic 154 7.3 % 204 9.1 % Mountain 78 3.7 % 75 3.3 % New England 83 3.9 % 85 3.8 % Pacific 562 26.7 % 646 28.8 % South Atlantic 569 27.0 % 510 22.8 % West South Central 213 10.1 % 209 9.3 % Other [2] 351 16.6 % 426 19.0 % Total mortgage loans $ 2,109 100 % $ 2,241 100 % Mortgage Loans by Property Type Successor Company December 31, 2020 December 31, 2019 Amortized Percent of Total Amortized Percent of Total Commercial Industrial $ 602 28.6 % $ 603 26.9 % Lodging 22 1.0 % 24 1.1 % Multifamily 536 25.4 % 576 25.7 % Office 481 22.8 % 471 21.0 % Retail 418 19.8 % 398 17.8 % Single Family 50 2.4 % 120 5.3 % Other — — % 49 2.2 % Total mortgage loans $ 2,109 100 % $ 2,241 100 % |
Offsetting Liabilities [Table Text Block] | Repurchase Agreements Successor Company December 31, 2020 December 31, 2019 Fair Value Fair Value Repurchase agreements: Gross amount of recognized liabilities for repurchase agreements $ 262 $ 269 Gross amount of collateral pledged related to repurchase agreements [1] $ 267 $ 273 Gross amount of recognized receivables for reverse repurchase agreements [2] $ 28 $ 10 Offsetting Derivative Assets and Liabilities (Successor Company) (i) (ii) (iii) = (i) - (ii) (v) = (iii) - (iv) Net Amounts Presented on the Statement of Financial Position Collateral Disallowed for Offset on the Statement of Financial Position Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset on the Statement of Financial Position Derivative Assets [1] (Liabilities) [2] Accrued Interest and Cash Collateral (Received) [3] Pledged [2] Financial Collateral (Received) Pledged [4] Net Amount As of December 31, 2020 Other investments $ 304 $ 295 $ 12 $ (3) $ — $ 9 Other liabilities (772) (279) (480) (13) (488) (5) As of December 31, 2019 Other investments $ 207 $ 187 $ 72 $ (52) $ 8 $ 12 Other liabilities (295) (91) (160) (44) (204) — [1] Included in other invested assets on the Company's Consolidated Balance Sheets. [2] Included in other liabilities on the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [3] Included in other investments on the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty. [4] Excludes collateral associated with exchange-traded derivative instruments. |
Derivative Instruments Level 3
Derivative Instruments Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | GMWB Hedging Instruments Successor Company Notional Amount Fair Value December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Customized swaps $ 3,938 $ 34 Equity swaps, options, and futures 855 (2) Interest rate swaps and futures 2,189 41 Total $ 6,982 $ 73 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Successor Company Net Derivatives Asset Derivatives Liability Derivatives Notional Amount Fair Value Fair Value Fair Value Hedge Designation/ Derivative Type Dec 31, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 Cash flow hedges Foreign currency swaps $ 25 $ 10 $ (2) $ — $ — $ — $ (2) $ — Total cash flow hedges 25 10 (2) — — — (2) — Non-qualifying strategies Interest rate contracts Interest rate swaps and futures 3,419 3,082 (13) (39) 28 11 (41) (50) Foreign exchange contracts Foreign currency swaps and forwards 222 225 — (7) 8 9 (8) (16) Credit contracts Credit derivatives that purchase credit protection 40 40 — (1) — — — (1) Equity contracts Equity index swaps and options 2,000 2,000 — — — — — — Variable annuity hedge program GMWB product derivatives [1] 7,803 8,717 21 5 33 23 (12) (18) GMWB reinsurance contracts 1,688 1,869 7 17 7 17 — — GMWB hedging instruments — 6,982 — 73 — 89 — (16) Macro hedge program 24,188 19,879 (453) (114) 268 98 (721) (212) Other Modified coinsurance reinsurance contracts 843 819 (93) (43) — — (93) (43) Total non-qualifying strategies 40,203 43,613 (531) (109) 344 247 (875) (356) Total cash flow hedges and non-qualifying strategies $ 40,228 $ 43,623 $ (533) $ (109) $ 344 $ 247 $ (877) $ (356) Balance Sheet Location Fixed maturities, available-for-sale $ 49 $ 43 $ — $ — $ — $ — $ — $ — Other investments 5,791 5,779 12 72 13 83 (1) (11) Other liabilities 24,054 26,396 (480) (160) 291 124 (771) (284) Reinsurance recoverables 2,531 2,688 (86) (26) 7 17 (93) (43) Other policyholder funds and benefits payable 7,803 8,717 21 5 33 23 (12) (18) Total derivatives $ 40,228 $ 43,623 $ (533) $ (109) $ 344 $ 247 $ (877) $ (356) [1] These derivatives are embedded within liabilities and are not held for risk management purposes. |
Offsetting Assets [Table Text Block] | Offsetting Derivative Assets and Liabilities (Successor Company) (i) (ii) (iii) = (i) - (ii) (v) = (iii) - (iv) Net Amounts Presented on the Statement of Financial Position Collateral Disallowed for Offset on the Statement of Financial Position Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset on the Statement of Financial Position Derivative Assets [1] (Liabilities) [2] Accrued Interest and Cash Collateral (Received) [3] Pledged [2] Financial Collateral (Received) Pledged [4] Net Amount As of December 31, 2020 Other investments $ 304 $ 295 $ 12 $ (3) $ — $ 9 Other liabilities (772) (279) (480) (13) (488) (5) As of December 31, 2019 Other investments $ 207 $ 187 $ 72 $ (52) $ 8 $ 12 Other liabilities (295) (91) (160) (44) (204) — [1] Included in other invested assets on the Company's Consolidated Balance Sheets. [2] Included in other liabilities on the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [3] Included in other investments on the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty. [4] Excludes collateral associated with exchange-traded derivative instruments. |
Offsetting Liabilities [Table Text Block] | Repurchase Agreements Successor Company December 31, 2020 December 31, 2019 Fair Value Fair Value Repurchase agreements: Gross amount of recognized liabilities for repurchase agreements $ 262 $ 269 Gross amount of collateral pledged related to repurchase agreements [1] $ 267 $ 273 Gross amount of recognized receivables for reverse repurchase agreements [2] $ 28 $ 10 Offsetting Derivative Assets and Liabilities (Successor Company) (i) (ii) (iii) = (i) - (ii) (v) = (iii) - (iv) Net Amounts Presented on the Statement of Financial Position Collateral Disallowed for Offset on the Statement of Financial Position Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset on the Statement of Financial Position Derivative Assets [1] (Liabilities) [2] Accrued Interest and Cash Collateral (Received) [3] Pledged [2] Financial Collateral (Received) Pledged [4] Net Amount As of December 31, 2020 Other investments $ 304 $ 295 $ 12 $ (3) $ — $ 9 Other liabilities (772) (279) (480) (13) (488) (5) As of December 31, 2019 Other investments $ 207 $ 187 $ 72 $ (52) $ 8 $ 12 Other liabilities (295) (91) (160) (44) (204) — [1] Included in other invested assets on the Company's Consolidated Balance Sheets. [2] Included in other liabilities on the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [3] Included in other investments on the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty. [4] Excludes collateral associated with exchange-traded derivative instruments. |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | Derivatives in Cash Flow Hedging Relationships Gain (Loss) Recognized in OCI Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Interest rate swaps $ — $ — $ — $ (17) Foreign currency swaps (2) — — — Total $ (2) $ — $ — $ (17) Derivatives in Cash Flow Hedging Relationships (Successor Company) Gain or (Loss) Reclassified from AOCI into Income For the Years Ended December 31, June 1, 2018 to 2020 2019 Net Capital Net Investment Income Net Capital Net Investment Income Net Capital Net Investment Income Interest rate swaps — — — — — — Foreign currency swaps — — — — — — Total $ — $ — $ — $ — $ — $ — Total Amounts Presented on the Consolidated Statements of Operations $ (74) $ 816 $ (275) $ 924 $ 142 $ 509 Derivatives in Cash Flow Hedging Relationships (Predecessor Company) Gain or (Loss) Reclassified from AOCI into Income January 1, 2018 to May 31, 2018 Net Capital Net Investment Income Interest rate swaps $ — $ 8 Foreign currency swaps (2) — Total (2) 8 Total Amounts Presented on the Consolidated Statements of Operations $ (107) $ 520 |
Derivative Instruments, Gain (Loss) [Table Text Block] | Non-qualifying Strategies Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Variable annuity hedge program GMWB product derivatives $ 67 $ 134 $ (25) $ 82 GMWB reinsurance contracts (27) (13) 1 (25) GMWB hedging instruments 42 (68) 36 (45) Macro hedge program (414) (418) 153 (36) Total variable annuity hedge program (332) (365) 165 (24) Foreign exchange contracts Foreign currency swaps and forwards (4) — 2 (3) Fixed payout annuity hedge — (4) (15) 10 Total foreign exchange contracts (4) (4) (13) 7 Other non-qualifying derivatives Interest rate contracts Interest rate swaps, swaptions, and futures 180 103 23 (40) Credit contracts Credit derivatives that purchase credit protection 19 — — 1 Credit derivatives that assume credit risk — 7 (1) (3) Equity contracts Equity index swaps and options — (1) — — Other Modified coinsurance reinsurance contracts (50) (55) 13 32 Total other non-qualifying derivatives 149 54 35 (10) Total [1] $ (187) $ (315) $ 187 $ (27) [1] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. |
Reinsurance Level 3 (Tables)
Reinsurance Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Recoverable [Table Text Block] | Reinsurance Recoverables, net (Successor Company) As of December 31, 2020 2019 Reserve for future policy benefits and other policyholder funds and benefits payable Sold businesses (MassMutual and Prudential) $ 18,807 $ 19,534 Commonwealth 7,579 8,147 Other reinsurers 1,076 1,143 Gross reinsurance recoverables 27,462 28,824 Less: ACL 7 Reinsurance recoverables, net [1] $ 27,455 $ 28,824 [1] As of December 31, 2019 (Successor Company), no allowance for uncollectible reinsurance was required. |
Life Insurance Fees Earned Premiums and Other [Table Text Block] | Insurance Revenues Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Gross earned premiums, fee income and other $ 2,221 $ 2,375 $ 1,439 $ 1,059 Reinsurance assumed 125 115 66 48 Reinsurance ceded (1,570) (1,627) (972) (684) Net earned premiums, fee income and other $ 776 $ 863 $ 533 $ 423 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Policy Acquisition Costs and Present Value of Future Profits [Abstract] | |
Deferred Policy Acquisition Costs [Table Text Block] | Changes in the DAC Balance [1] Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Balance, beginning of period $ — $ — $ — $ 405 Deferred costs — — — 1 Amortization — DAC — — — (13) Amortization — Unlock benefit (charge), pre-tax — — — (3) Adjustments to unrealized gains and losses on securities AFS and other — — — 31 Balance, end of period $ — $ — $ — $ 421 [1] Effective with the application of pushdown accounting on May 31, 2018, the Company eliminated its DAC balance through a pushdown accounting adjustment. Please see Note 1, Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements for further discussion of pushdown accounting. |
Present Value of Future Insurance Profits [Table Text Block] | Changes in the VOBA Balance [1] Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Balance, beginning of period $ 696 $ 716 $ 805 $ — Amortization — VOBA [2] 14 25 (80) — Amortization — Unlock benefit (charge), pre-tax (64) — (19) — Adjustments to unrealized gains and losses on securities AFS and other (60) (45) 10 — Balance, end of period $ 586 $ 696 $ 716 $ — [1] Effective with the application of pushdown accounting on May 31, 2018, the Company established its VOBA balance through a pushdown accounting adjustment. For further discussion of pushdown accounting, please see Note 1, Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. [2] Negative gross profits due to hedge losses resulted in a write-up of VOBA. |
Present Value of Future Insurance Profits, Expected Amortization [Table Text Block] | Expected Amortization of VOBA Successor Company Years Expected Amortization 2021 $ (10) 2022 $ 18 2023 $ 22 2024 $ 25 2025 $ 31 |
Reserve for Future Policy Ben_2
Reserve for Future Policy Benefits and Separate Account Liabilities Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Future Policy Benefits, by Product Segment [Table Text Block] | Changes in Reserves for Future Policy Benefits Successor Company Universal Life-Type Contracts GMDB/GMWB [1] Universal Life Secondary Guarantees Traditional Annuity and Other Contracts [2] Total Future Liability balance as of January 1, 2020 $ 450 $ 3,691 $ 14,324 $ 18,465 Incurred [3] 101 526 467 1,094 Paid (91) (22) (821) (934) Liability balance as of December 31, 2020 $ 460 $ 4,195 $ 13,970 $ 18,625 Reinsurance recoverable asset as of January 1, 2020 $ 269 $ 3,691 $ 4,843 $ 8,803 Incurred [3] 57 526 122 705 Paid (72) (22) (275) (369) Reinsurance recoverable asset as of December 31, 2020 $ 254 $ 4,195 $ 4,690 $ 9,139 Successor Company Universal Life-Type Contracts GMDB/GMWB [1] Universal Life Secondary Traditional Annuity and Other Contracts [2] Total Future Policy Benefits Liability balance as of January 1, 2019 $ 462 $ 3,276 $ 14,585 $ 18,323 Incurred [3] 78 419 566 1,063 Paid (90) (4) (827) (921) Liability balance as of December 31, 2019 $ 450 $ 3,691 $ 14,324 $ 18,465 Reinsurance recoverable asset as of January 1, 2019 $ 284 $ 3,276 $ 4,972 $ 8,532 Incurred [3] 57 419 163 639 Paid (72) (4) (292) (368) Reinsurance recoverable asset as of December 31, 2019 $ 269 $ 3,691 $ 4,843 $ 8,803 [1] These liability balances include all GMDB benefits, plus the life-contingent portion of GMWB benefits in excess of the return of the GRB. GMWB benefits up to the GRB are embedded derivatives held at fair value and are excluded from these balances. [2] Represents life-contingent reserves for which the company is subject to insurance and investment risk. [3] Includes the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. |
Schedule of Net Amount of Risk by Product and Guarantee [Table Text Block] | Account Value by GMDB/GMWB Type as of December 31, 2020 Account Net amount Retained Net Weighted MAV [1] MAV only $ 12,649 $ 1,500 $ 225 74 With 5% rollup [2] 928 72 23 75 With earnings protection benefit rider (“EPB”) [3] 3,221 594 83 74 With 5% rollup & EPB 446 101 22 76 Total MAV 17,244 2,267 353 Asset protection benefit ("APB") [4] 8,332 46 32 72 Lifetime income benefit ("LIB") – death benefit [5] 369 2 2 74 Reset [6] (5-7 years) 2,420 7 5 72 Return of premium ("ROP") /other [7] 5,642 46 45 75 Variable annuity without GMDB [8] 2,570 — — 72 Subtotal variable annuity [11] $ 36,577 $ 2,368 $ 437 74 Less: general account value 2,801 Subtotal variable annuity separate account liabilities 33,776 Separate account liabilities - other 75,849 Total separate account liabilities $ 109,625 [1] MAV GMDB is the greatest of current AV, net premiums paid and the highest AV on any anniversary before age 80 years (adjusted for withdrawals). [2] Rollup GMDB is the greatest of the MAV, current AV, net premium paid and premiums (adjusted for withdrawals) accumulated at generally 5% simple interest up to the earlier of age 80 years or 100% of adjusted premiums. [3] EPB GMDB is the greatest of the MAV, current AV, or contract value plus a percentage of the contract’s growth. The contract’s growth is AV less premiums net of withdrawals, subject to a cap of 200% of premiums net withdrawals. [4] APB GMDB is the greater of current AV or MAV, not to exceed current AV plus 25% times the greater of net premiums and MAV (each adjusted for premiums in the past 12 months). [5] LIB GMDB is the greatest of current AV; net premiums paid; or, for certain contracts, a benefit amount generally based on market performance that ratchets over time. [6] Reset GMDB is the greatest of current AV, net premiums paid and the most recent five to seven year anniversary AV before age 80 years (adjusted for withdrawals). [7] ROP GMDB is the greater of current AV and net premiums paid. [8] Includes account value for contracts that had a GMDB at issue but no longer have a GMDB due to certain elections made by policyholders or their beneficiaries. [9] AV includes the contract holder’s investment in the separate account and the general account. [10] NAR is defined as the guaranteed minimum death benefit in excess of the current AV. RNAR represents NAR reduced for reinsurance. NAR and RNAR are highly sensitive to equity market movements and increase when equity markets decline. [11] Some variable annuity contracts with GMDB also have a life-contingent GMWB that may provide for benefits in excess of the return of the GRB. Such contracts included in this amount have $5.0 billion of total account value and weighted average attained age of 76 years. There is no NAR or retained NAR related to these contracts. |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Table Text Block] | Account Balance Breakdown of Variable Separate Account Investments for Contracts with Guarantees Successor Company Asset Type December 31, 2020 December 31, 2019 Equity securities (including mutual funds) $ 32,011 $ 31,114 Cash and cash equivalents [1] 1,765 1,319 Total [2] $ 33,776 $ 32,433 [1] Represents an allocation of the portfolio holdings. [2] Includes $2.6 billion and $2.3 billion of account value as of December 31, 2020 and 2019 (Successor Company) for contracts that had a GMDB at issue but no longer have a GMDB due to certain elections made by policyholders or their beneficiaries. |
Other Intangible Assets Level 3
Other Intangible Assets Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | Other Intangible Assets (Successor Company) As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Expected Life Amortizing intangible assets [1] $ 29 $ 15 $ 14 5 Total indefinite lived intangible assets [2] 26 — 26 — Total other intangible assets $ 55 $ 15 $ 40 5 [1] Consist of internally developed software [2] Consist of state insurance licenses |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | There have been no additions, renewals or extension since December 31, 2019 (Successor Company). Expected Pre-tax Amortization Expense (Successor Company) Years Expected Future Amortization Expense 2021 $ 6 2022 $ 6 2023 $ 2 2024 $ — 2025 $ — |
Income Tax Level 3 (Tables)
Income Tax Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Provision for Income Taxes Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 Income Tax Expense (Benefit) 2020 2019 Current - U.S. Federal $ 10 $ (8) $ (15) $ 1 Deferred - U.S. Federal 56 52 74 6 Total income tax expense $ 66 $ 44 $ 59 $ 7 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Provision for Income Taxes Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 Income Tax Expense (Benefit) 2020 2019 Current - U.S. Federal $ 10 $ (8) $ (15) $ 1 Deferred - U.S. Federal 56 52 74 6 Total income tax expense $ 66 $ 44 $ 59 $ 7 Deferred tax assets and liabilities on the consolidated balance sheets represent the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. Components of Deferred Tax Assets (Liabilities) Successor Company As of December 31, 2020 2019 Deferred Tax Assets Tax basis deferred policy acquisition costs $ 79 $ 60 Unearned premium reserve and other underwriting related reserves 1 4 VOBA and reserves 567 557 Net operating loss carryover 102 166 Employee benefits 7 4 Foreign tax credit carryover 18 13 Deferred reinsurance gain 198 210 Other 11 15 Total deferred tax assets 983 1,029 Deferred Tax Liabilities Investment related items (145) (150) Net unrealized gain on investments (360) (198) Total deferred tax liabilities (505) (348) Net deferred tax assets $ 478 $ 681 The federal audits for the Company have been completed through 2013 and the Company is not currently under examination for any open years. The statute of limitations is closed through the 2016 tax year with the exception of net operating loss ("NOL") carryforwards utilized in open tax years. Management believes that adequate provision has been made on the consolidated financial statements for any potential adjustments that may result from tax examinations and other tax-related matters for all open tax years. For periods ending December 31, 2020 and 2019 (Successor Company), the Company had no reserves for uncertain tax positions. At December 31, 2020 and 2019 (Successor Company), there was no unrecognized tax benefit that if recognized would affect the effective tax rate and that is reasonably possible of significantly increasing or decreasing within the next 12 months. The Company classifies interest and penalties (if applicable) as income tax expense on the consolidated financial statements. The Company recognized no interest expense for the years ended December 31, 2020 and 2019 (Successor Company), the period of June 1, 2018 to December 31, 2018 (Successor Company) and the period of January 1, 2018 to May 31, 2018 (Predecessor Company). The Company had no interest payable as of December 31, 2020 and 2019 (Successor Company). The Company does not believe it would be subject to any penalties in any open tax years and, therefore, has not recorded any accrual for penalties. The application of purchase and pushdown accounting resulted in market value adjustments to the Company’s assets and liabilities, which resulted in a corresponding increase in the Company’s deferred tax asset. For further information, see Note 1- Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. The Company believes it is more likely than not that all deferred tax assets will be fully realized. In assessing the need for a valuation allowance, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences and carryovers, taxable income in open carry back years and other tax planning strategies. From time to time, tax planning strategies could include holding a portion of debt securities with market value losses until recovery, making investments which have specific tax characteristics and business considerations such as asset-liability matching. Net deferred income taxes include the future tax benefits associated with the net operating loss carryover and foreign tax credit carryover as follows: Net Operating Loss Carryover As of December 31, 2020 and 2019 (Successor Company), the net deferred tax asset included the expected tax benefit attributable to net operating losses of $484 and $790, respectively. The totals include U.S. losses that were generated prior to 2017 of $121 and $437, respectively. These losses are subject to limits on the period for which they can be carried forward. If not utilized, these losses will expire from 2028-2030. Utilization of these loss carryovers is dependent upon the generation of sufficient future taxable income. The totals also include U.S. losses that were generated in 2018 of $363 and $353, respectively, primarily due to the Commonwealth Annuity Reinsurance Agreement. These losses do not expire, but their utilization in any carryforward year is limited to 80% of taxable income in that year. Given the continued decline of the U.S. fixed and variable annuity business, the exposure to taxable losses is significantly lessened, and given the Company's expected future earnings, the Company believes sufficient taxable income will be generated in the future to utilize its net operating loss carryover. Although the Company believes there will be sufficient future taxable income to fully recover the remainder of the loss carryover, the Company's estimate of the likely realization may change over time. Foreign Tax Credit Carryover As of December 31, 2020 and 2019 (Successor Company), the net deferred tax asset included the expected tax benefit attributable to foreign tax credit carryovers of $18 and $13 respectively. A reconciliation of the tax provision at the U.S. Federal statutory rate to the provision (benefit) for income taxes is as follows: Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Tax provision at the U.S. federal statutory rate $ 98 $ 86 $ 98 $ 21 Dividends received deduction ("DRD") (28) (34) (37) (12) Foreign related investments (4) (7) (4) (3) Tax reform — — — (2) Other (1) 2 3 Provision for income taxes $ 66 $ 44 $ 59 $ 7 The separate account DRD is estimated for the current year using information from the most recent return, adjusted for current year equity market performance and other appropriate factors, including estimated levels of corporate dividend payments and level of policy owner equity account balances. The actual current year DRD can vary from estimates based on, but not limited to, changes in eligible dividends received in the mutual funds, amounts of distributions from these mutual funds and the Company’s taxable income before the DRD. The Company evaluates its DRD computations on a quarterly basis. |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Tax provision at the U.S. federal statutory rate $ 98 $ 86 $ 98 $ 21 Dividends received deduction ("DRD") (28) (34) (37) (12) Foreign related investments (4) (7) (4) (3) Tax reform — — — (2) Other (1) 2 3 Provision for income taxes $ 66 $ 44 $ 59 $ 7 |
Commitments and Contingencies_3
Commitments and Contingencies Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future Minimum Lease Payments (Successor Company) 2021 $ 1 2022 1 2023 1 2024 — 2025 — Thereafter — Total minimum lease payments $ 3 |
Statutory Results Level 3 (Tabl
Statutory Results Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Statutory Accounting Practices Disclosure [Table Text Block] | The domestic insurance subsidiaries of the Company prepare their statutory financial statements in conformity with statutory accounting practices prescribed or permitted by the applicable state insurance department which vary materially from U.S. GAAP. Prescribed statutory accounting practices include publications of the National Association of Insurance Commissioners (“NAIC”), as well as state laws, regulations and general administrative rules. The differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP vary between domestic and foreign jurisdictions. The principal differences are that statutory financial statements do not reflect deferred policy acquisition and value of business acquired costs and limit deferred income taxes, predominately use interest rate and mortality assumptions prescribed by the NAIC for life benefit reserves, generally carry bonds at amortized cost and present reinsurance assets and liabilities net of reinsurance. For reporting purposes, statutory capital and surplus is referred to collectively as "statutory capital". Statutory Net Income (Loss) Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Combined statutory net income (loss) $ 245 $ 488 $ (126) $ 181 Statutory Capital Successor Company As of December 31, 2020 2019 Statutory capital [1] $ 3,142 $ 3,194 [1] The Company relies upon a prescribed practice allowed by Connecticut state laws that allow the Company to receive a reinsurance reserve credit for reinsurance treaties that provide for a limited right of unilateral cancellation by the reinsurer. The benefit from this prescribed practice was approximately $51 and $37 as of December 31, 2020 and 2019 (Successor Company), respectively. Statutory accounting practices do not consolidate the net income (loss) of subsidiaries that report under U.S. GAAP. The combined statutory net income (loss) above represents the total statutory net income (loss) of the Company and its other insurance subsidiaries. Regulatory Capital Requirements The Company's U.S. insurance companies' states of domicile impose RBC requirements. The requirements provide a means of measuring the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations based on its size and risk profile. Regulatory compliance is determined by a ratio of a company's total adjusted capital (“TAC”) to its authorized control level RBC (“ACL RBC”). Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences (“Company Action Level”) is two times the ACL RBC. The adequacy of a company's capital is determined by the ratio of a company's TAC to its Company Action Level, known as the "RBC ratio". The Company and all of its operating insurance subsidiaries had RBC ratios in excess of the minimum levels required by the applicable insurance regulations. The RBC ratios for the Company and its principal life insurance operating subsidiaries were all in excess of 300% of their Company Action Levels as of December 31, 2020 and 2019 (Successor Company). The reporting of RBC ratios is not intended for the purpose of ranking any insurance company, or for use in connection with any marketing, advertising or promotional activities. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in AOCI, Net of Tax for the Year Ended December 31, 2020 (Successor Company) Changes in Net Unrealized Gain on Fixed Maturities Unrealized Losses on Fixed Maturities for Which an ACL Has Been Recorded Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments AOCI, Beginning balance $ 717 $ — $ — $ — $ 717 OCI before reclassifications 665 (1) (1) — 663 Amounts reclassified from AOCI (100) 1 — — (99) OCI, net of tax 565 — (1) — 564 Ending balance $ 1,282 $ — $ (1) $ — $ 1,281 Changes in AOCI, Net of Tax for the Year Ended December 31, 2019 (Successor Company) Changes in Net Unrealized Gain on Fixed Maturities Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments AOCI, Beginning balance $ (173) $ — $ 2 $ (171) OCI before reclassifications 927 — (2) 925 Amounts reclassified from AOCI (37) — — (37) OCI, net of tax 890 — (2) 888 Ending balance $ 717 $ — $ — $ 717 Changes in AOCI, Net of Tax for the Period of June 1, 2018 to December 31, 2018 (Successor Company) Changes in Net Unrealized Gain on Fixed Maturities Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments AOCI, Beginning balance $ — $ — $ — $ — OCI before reclassifications (198) — 2 (196) Amounts reclassified from AOCI 25 — — 25 OCI, net of tax (173) — 2 (171) Ending balance $ (173) $ — $ 2 $ (171) Changes in AOCI, Net of Tax for the Period of January 1, 2018 to May 31, 2018 (Predecessor Company) Changes in Net Unrealized Gain on Fixed Maturities Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments AOCI, Beginning balance $ 1,022 $ 4 $ (3) $ 1,023 Cumulative effect of accounting changes, net of tax [1] 182 — — 182 Adjusted balance, beginning of period 1,204 4 (3) 1,205 OCI before reclassifications (432) (13) 1 (444) Amounts reclassified from AOCI 2 (5) — (3) OCI, net of tax (430) (18) 1 (447) Ending balance $ 774 $ (14) $ (2) $ 758 [1] Includes reclassification to retained earnings of $193 of stranded tax effects and $11 of net unrealized gains, after tax, related to equity securities. Refer to Note 1 - Basis of Presentation and Significant Accounting Policies for further information. |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Reclassification from AOCI Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 Affected Line Item on the Consolidated Statement 2020 2019 Net Unrealized Gain on Fixed Maturities Available-for-sale securities $ 127 $ 47 $ (32) $ (2) Net realized capital gains (losses) 127 47 (32) (2) Income before income taxes 27 10 (7) — Income tax expense $ 100 $ 37 $ (25) $ (2) Net income Unrealized Losses on Fixed Maturities for Which an ACL Has Been Recorded Fixed maturities, AFS $ (1) Net realized capital gains (losses) (1) Income before income taxes — Income tax expense $ (1) Net income Net Gains on Cash-Flow Hedging Instruments Interest rate swaps $ — $ — $ — $ — Net realized capital gains (losses) Interest rate swaps — — — 8 Net investment income Foreign currency swaps — — — (2) Net realized capital gains (losses) — — — 6 Income before income taxes — — — 1 Income tax expense $ — $ — $ — $ 5 Net income Total amounts reclassified from AOCI $ 99 $ 37 $ (25) $ 3 Net income |
Subsequent Events Level 3 (Tabl
Subsequent Events Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | On January 18, 2021 the Company's indirect owners, Hopmeadow Holdings GP LLC and Hopmeadow Holdings LP, entered into a definitive agreement to merge Hopmeadow Holdings LP with a subsidiary of Sixth Street, a leading global investment firm. The merger is subject to regulatory approvals and other customary closing conditions and is expected to close in the second quarter of 2021. If consummated, the merger would result in a change of ownership and control of the Company and its life and annuity operating subsidiaries. Proceeds from the merger consist of a combined pre-closing dividend and cash at closing totaling approximately $2.25 billion and is subject to certain closing adjustments |
Transactions with Affiliates _2
Transactions with Affiliates Level 4 Reinsurance Disclosures (Details) - Hartford Life and Accident Insurance Company [Member] $ in Millions | 5 Months Ended |
May 31, 2018USD ($) | |
Group Insurance Policies [Member] | |
Effects of Reinsurance [Line Items] | |
Ceded Premiums Written | $ 9 |
Accident and Health Insurance Product Line [Member] | |
Effects of Reinsurance [Line Items] | |
Ceded Premiums Written | $ 25 |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies Level 4 (Details) - USD ($) $ in Millions | Jan. 01, 2018 | May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 | Jun. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
VOBA | $ 716 | $ 586 | $ 696 | $ 716 | $ 805 | ||||
Deferred income taxes, net | 478 | 681 | |||||||
Other intangible assets | 40 | 46 | |||||||
Reinsurance Recoverables | 27,455 | 28,824 | |||||||
Separate account assets | 109,625 | 104,575 | |||||||
Assets | 158,888 | 154,713 | |||||||
Liability for Future Policy Benefits | 18,625 | 18,465 | |||||||
Other policyholder funds and benefits payable | 25,307 | 27,161 | |||||||
Other liabilities | 2,146 | 1,960 | |||||||
Separate Accounts, Liability | 109,625 | 104,575 | |||||||
Liabilities | 155,703 | 152,161 | |||||||
Stockholders' Equity Attributable to Parent | $ 6,680 | $ 5,810 | 2,005 | 3,185 | 2,552 | 2,005 | $ 2,541 | 1,767 | $ 6,680 |
Liabilities and Equity | 158,888 | 154,713 | |||||||
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | 193 | 193 | |||||||
Unrealized Loss on Securities | (196) | 663 | 925 | ||||||
Equity securities, AFS | 65 | 45 | |||||||
Maximum uncollateralized threshold for derivative counter party, single level entity | $ 10 | ||||||||
Gross Profit Estimates Term for Most Contracts | 20 years | ||||||||
Deferred Income | $ 878 | ||||||||
Cumulative Effect of Accounting Changes | (11) | ||||||||
Financing Receivable, Allowance for Credit Loss | 17 | 0 | |||||||
Reinsurance Recoverable, Allowance for Credit Loss | 7 | 0 | 5 | ||||||
Other | 11 | 15 | |||||||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Stockholders' Equity Attributable to Parent | 774 | (173) | 1,282 | 717 | (173) | 0 | 1,022 | ||
Unrealized Loss on Securities | 11 | (432) | (198) | 665 | 927 | ||||
Retained Earnings [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Stockholders' Equity Attributable to Parent | 1,930 | 2,024 | 409 | 137 | 68 | $ 409 | 57 | $ 0 | $ 2,112 |
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Cumulative Effect of Accounting Changes | (182) | ||||||||
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Cumulative Effect of Accounting Changes | (11) | ||||||||
Financing Receivable, Allowance for Credit Loss | (9) | ||||||||
Reinsurance Recoverable, Allowance for Credit Loss | (5) | ||||||||
Other | $ 3 | ||||||||
Available-for-sale Securities [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Equity securities, AFS | $ 154 | ||||||||
Fee Income [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 40 | $ 54 | $ 80 | $ 84 |
Fair Value Measurements Level 4
Fair Value Measurements Level 4 Fair Value by Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ABS [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | $ 444 | $ 295 | |
Collateralized Debt Obligations [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 1,428 | 1,150 | |
Commercial Mortgage Backed Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 1,215 | 1,391 | |
Corporate [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 8,552 | 8,121 | |
Foreign governments | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 266 | 409 | |
US States and Political Subdivisions Debt Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 875 | 761 | |
Residential Mortgage Backed Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 769 | 868 | |
US Treasury Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 1,326 | 993 | |
Fair Value Measurement [Domain] | |||
Assets accounted for at fair value on a recurring basis | |||
Separate account assets | 108,748 | 101,698 | |
Debt Securities, Available-for-sale | 14,875 | 13,988 | |
Fair Value, Option, Fixed Maturity Securities | 6 | ||
Equity securities, AFS | 65 | 45 | |
Derivative Asset | 72 | ||
Short-term investments | 802 | 550 | |
Reinsurance Recoverables | 27,455 | 28,824 | |
Separate account assets | 109,625 | 104,575 | |
Total assets accounted for at fair value on a recurring basis | 124,509 | 116,376 | |
Liabilities accounted for at fair value on a recurring basis | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 420 | 110 | $ 140 |
Total liabilities accounted for at fair value on a recurring basis | (552) | (198) | |
Separate Account Assets, at Carrying Value | 877 | 2,400 | |
Liability [Member] | |||
Liabilities accounted for at fair value on a recurring basis | |||
Obligations, Fair Value Disclosure | 21 | 5 | |
Guaranteed Minimum Withdrawal Benefit [Member] | |||
Liabilities accounted for at fair value on a recurring basis | |||
Obligations, Fair Value Disclosure | 21 | 5 | |
Estimate of Fair Value Measurement [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Separate account assets | 441 | 461 | |
Credit Risk Contract [Member] | Fair Value, Measurements, Recurring [Member] | Other liabilities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Assets (Liabilities), at Fair Value, Net | (1) | ||
Foreign Exchange Contract [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 1 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | 1 | 7 | |
Interest Rate Contract [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | (6) | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | 19 | 39 | |
US GMWB Hedging Instruments [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 23 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | 50 | ||
Macro Hedge Program [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 7 | 49 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | (460) | (163) | |
Derivative Financial Instruments, Assets [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 12 | ||
GMWB Reinsurance [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Reinsurance Recoverables | 7 | 17 | |
Coinsurance and Modified Coinsurance Reinsurance Contracts [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Reinsurance Recoverable, Including Reinsurance Premium Paid MODCO | (93) | (43) | |
Derivative Financial Instruments, Liabilities [Member] | |||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | (480) | (160) | |
Level 1 [Member] | ABS [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 0 | 0 | |
Level 1 [Member] | Collateralized Debt Obligations [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 0 | 0 | |
Level 1 [Member] | Commercial Mortgage Backed Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 0 | 0 | |
Level 1 [Member] | Corporate [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 0 | 0 | |
Level 1 [Member] | Foreign governments | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 0 | 0 | |
Level 1 [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 0 | 0 | |
Level 1 [Member] | Residential Mortgage Backed Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 0 | 0 | |
Level 1 [Member] | US Treasury Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 117 | 0 | |
Level 1 [Member] | Fair Value Measurement [Domain] | |||
Assets accounted for at fair value on a recurring basis | |||
Separate account assets | 67,679 | 63,850 | |
Level 1 [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 117 | 0 | |
Fair Value, Option, Fixed Maturity Securities | 0 | ||
Equity securities, AFS | 11 | 11 | |
Short-term investments | 586 | 330 | |
Total assets accounted for at fair value on a recurring basis | 68,393 | 64,191 | |
Liabilities accounted for at fair value on a recurring basis | |||
Total liabilities accounted for at fair value on a recurring basis | 0 | 0 | |
Level 1 [Member] | Liability [Member] | |||
Liabilities accounted for at fair value on a recurring basis | |||
Obligations, Fair Value Disclosure | 0 | 0 | |
Level 1 [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | |||
Liabilities accounted for at fair value on a recurring basis | |||
Obligations, Fair Value Disclosure | 0 | 0 | |
Level 1 [Member] | Credit Risk Contract [Member] | Fair Value, Measurements, Recurring [Member] | Other liabilities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | ||
Level 1 [Member] | Foreign Exchange Contract [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 0 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | 0 | 0 | |
Level 1 [Member] | Interest Rate Contract [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 0 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | 0 | 0 | |
Level 1 [Member] | US GMWB Hedging Instruments [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 0 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | 0 | ||
Level 1 [Member] | Macro Hedge Program [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 0 | 0 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | 0 | 0 | |
Level 1 [Member] | GMWB Reinsurance [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Reinsurance Recoverables | 0 | 0 | |
Level 1 [Member] | Coinsurance and Modified Coinsurance Reinsurance Contracts [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Reinsurance Recoverable, Including Reinsurance Premium Paid MODCO | 0 | 0 | |
Level 1 [Member] | Derivative Financial Instruments, Liabilities [Member] | |||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | 0 | 0 | |
Level 2 [Member] | ABS [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 444 | 282 | |
Level 2 [Member] | Collateralized Debt Obligations [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 1,169 | 1,092 | |
Level 2 [Member] | Commercial Mortgage Backed Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 1,161 | 1,354 | |
Level 2 [Member] | Corporate [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 8,224 | 7,734 | |
Level 2 [Member] | Foreign governments | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 266 | 409 | |
Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 875 | 761 | |
Level 2 [Member] | Residential Mortgage Backed Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 615 | 621 | |
Level 2 [Member] | US Treasury Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 1,209 | 993 | |
Level 2 [Member] | Fair Value Measurement [Domain] | |||
Assets accounted for at fair value on a recurring basis | |||
Separate account assets | 40,609 | 37,825 | |
Level 2 [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 13,963 | 13,246 | |
Fair Value, Option, Fixed Maturity Securities | 6 | ||
Equity securities, AFS | 22 | 1 | |
Derivative Asset | 0 | ||
Short-term investments | 194 | 214 | |
Total assets accounted for at fair value on a recurring basis | 54,798 | 51,292 | |
Liabilities accounted for at fair value on a recurring basis | |||
Total liabilities accounted for at fair value on a recurring basis | (132) | (54) | |
Level 2 [Member] | Liability [Member] | |||
Liabilities accounted for at fair value on a recurring basis | |||
Obligations, Fair Value Disclosure | 0 | 0 | |
Level 2 [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | |||
Liabilities accounted for at fair value on a recurring basis | |||
Obligations, Fair Value Disclosure | 0 | 0 | |
Level 2 [Member] | Credit Risk Contract [Member] | Fair Value, Measurements, Recurring [Member] | Other liabilities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Assets (Liabilities), at Fair Value, Net | (1) | ||
Level 2 [Member] | Foreign Exchange Contract [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 1 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | 1 | 7 | |
Level 2 [Member] | Interest Rate Contract [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 4 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | (19) | 37 | |
Level 2 [Member] | US GMWB Hedging Instruments [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 0 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | 35 | ||
Level 2 [Member] | Macro Hedge Program [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 7 | 0 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | (19) | (1) | |
Level 2 [Member] | Derivative Financial Instruments, Assets [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 10 | ||
Level 2 [Member] | GMWB Reinsurance [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Reinsurance Recoverables | 0 | 0 | |
Level 2 [Member] | Coinsurance and Modified Coinsurance Reinsurance Contracts [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Reinsurance Recoverable, Including Reinsurance Premium Paid MODCO | (93) | (43) | |
Level 2 [Member] | Derivative Financial Instruments, Liabilities [Member] | |||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | (39) | (11) | |
Level 3 [Member] | ABS [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 0 | 13 | |
Level 3 [Member] | Collateralized Debt Obligations [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 259 | 58 | |
Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 54 | 37 | |
Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 49 | 37 | |
Level 3 [Member] | Corporate [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 328 | 387 | |
Level 3 [Member] | Corporate [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 269 | 309 | |
Level 3 [Member] | Foreign governments | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 0 | 0 | |
Level 3 [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 0 | 0 | |
Level 3 [Member] | Residential Mortgage Backed Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 154 | 247 | |
Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 154 | 247 | |
Level 3 [Member] | US Treasury Securities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 0 | 0 | |
Level 3 [Member] | Fair Value Measurement [Domain] | |||
Assets accounted for at fair value on a recurring basis | |||
Separate account assets | 20 | 23 | |
Level 3 [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Debt Securities, Available-for-sale | 795 | 742 | |
Fair Value, Option, Fixed Maturity Securities | 0 | ||
Equity securities, AFS | 32 | 33 | |
Derivative Asset | 72 | ||
Short-term investments | 22 | 6 | |
Total assets accounted for at fair value on a recurring basis | 878 | 893 | |
Liabilities accounted for at fair value on a recurring basis | |||
Total liabilities accounted for at fair value on a recurring basis | 420 | (144) | |
Level 3 [Member] | Liability [Member] | |||
Liabilities accounted for at fair value on a recurring basis | |||
Obligations, Fair Value Disclosure | 21 | 5 | |
Level 3 [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | |||
Liabilities accounted for at fair value on a recurring basis | |||
Obligations, Fair Value Disclosure | 5 | ||
Level 3 [Member] | Credit Risk Contract [Member] | Fair Value, Measurements, Recurring [Member] | Other liabilities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | ||
Level 3 [Member] | Foreign Exchange Contract [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 0 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | 0 | 0 | |
Level 3 [Member] | Interest Rate Contract [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | (2) | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | 0 | 2 | |
Level 3 [Member] | US GMWB Hedging Instruments [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 23 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | 15 | ||
Level 3 [Member] | Macro Hedge Program [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 0 | 49 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | (441) | (162) | |
Level 3 [Member] | Derivative Financial Instruments, Assets [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | 2 | ||
Level 3 [Member] | GMWB Reinsurance [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Reinsurance Recoverables | 7 | 17 | |
Level 3 [Member] | Coinsurance and Modified Coinsurance Reinsurance Contracts [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Reinsurance Recoverable, Including Reinsurance Premium Paid MODCO | 0 | 0 | |
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | |||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative Liability | (441) | (149) | |
Derivative Financial Instruments, Assets [Member] | Other Investments and Other Liabilities [Member] | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative Asset | $ 12 | $ 72 |
Fair Value Measurements Level_2
Fair Value Measurements Level 4 Significant Unobservable Inputs - Securities (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | $ 14,875 | $ 13,988 |
Residential Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 769 | 868 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 875 | 761 |
Corporate Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 8,552 | 8,121 |
Commercial Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 1,215 | 1,391 |
Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 795 | 742 |
Level 3 [Member] | Residential Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 154 | 247 |
Level 3 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 0 | 0 |
Level 3 [Member] | Corporate Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 328 | 387 |
Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 54 | 37 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 117 | 0 |
Fair Value, Inputs, Level 1 [Member] | Residential Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Commercial Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 13,963 | 13,246 |
Fair Value, Inputs, Level 2 [Member] | Residential Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 615 | 621 |
Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 875 | 761 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 8,224 | 7,734 |
Fair Value, Inputs, Level 2 [Member] | Commercial Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | $ 1,161 | $ 1,354 |
Credit Standing Adjustment [Member] | Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Decrease | Decrease |
Credit Standing Adjustment [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 0.45% | 0.26% |
Credit Standing Adjustment [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 0.18% | 0.07% |
Credit Standing Adjustment [Member] | Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 0.34% | 0.17% |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Withdrawal Utilization [Member] | Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Increase | Increase |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Withdrawal Utilization [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 100.00% | 100.00% |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Withdrawal Utilization [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 0.00% | 19.00% |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Withdrawal Utilization [Member] | Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 62.00% | 69.00% |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Withdrawal Rates [Member] | Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Increase | Increase |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Withdrawal Rates [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 8.00% | 7.00% |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Withdrawal Rates [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 4.00% | 0.00% |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Withdrawal Rates [Member] | Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 6.00% | 6.00% |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Lapse Rates [Member] | Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Decrease [8] | Decrease [8] |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Lapse Rates [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 55.00% | 61.00% |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Lapse Rates [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 0.00% | 0.00% |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Lapse Rates [Member] | Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 5.00% | 6.00% |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Reset Elections [Member] | Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Decrease [8] | Increase |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Reset Elections [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 99.00% | 100.00% |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Reset Elections [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 0.00% | 0.00% |
Living Benefits Required to be Fair Valued and the GMWB Reinsurance Derivative [Member] | Reset Elections [Member] | Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 8.00% | 11.00% |
Other Contract [Member] | Equity Volatility [Member] | Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Increase | Increase |
Other Contract [Member] | Equity Volatility [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 28.00% | 25.00% |
Other Contract [Member] | Equity Volatility [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 16.00% | 10.00% |
Other Contract [Member] | Equity Volatility [Member] | Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 21.00% | 19.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Collateralized Loan Obligations [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | $ 259 | $ 58 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 154 | 247 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | $ 269 | $ 309 |
Fair Value Measurements, Sensitivity Analysis, Description | Decrease | Decrease |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | $ 49 | $ 37 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Collateralized Loan Obligations [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Decrease | Decrease |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Collateralized Loan Obligations [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 3.05 | 2.46 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Collateralized Loan Obligations [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 2.49 | 1.13 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Collateralized Loan Obligations [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 3.04 | 2.43 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Decrease | Decrease |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 5.92 | 2.33 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 0.07 | 0.05 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 1.19 | 0.82 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 12.10 | 8.23 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 1.16 | 0.93 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 3.04 | 2.36 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Decrease | Decrease |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 15.82 | 18.32 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 2.55 | 0.09 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Credit Spread [Member] | Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 5.70 | 2.66 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Decrease [5] | Decrease [5] |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 0.10 | 0.13 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Constant Prepayment Rate [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 0.05 | 0.06 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Decrease | Decrease |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 0.06 | 0.05 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 0.02 | 0.02 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 0.03 | 0.03 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Loss Severity [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Decrease | Decrease |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Loss Severity [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 1 | 1 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Loss Severity [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Loss Severity [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale, Measurement Input | 0.81 | 0.70 |
Fair Value Measurements Level_3
Fair Value Measurements Level 4 Significant Unobservable Inputs - Freestanding Derivatives (Details) - Fair Value, Inputs, Level 3 [Member] $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Interest Rate Swap [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 2 | $ (2) |
Fair Value Measurements, Sensitivity Analysis, Description | Decrease | |
Swap [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 21 | $ 35 |
Fair Value Measurements, Sensitivity Analysis, Description | Increase | Increase |
Interest Rate Swaption [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 9 | $ (3) |
Equity Option [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (471) | (111) |
Hedge Funds [Member] | Interest Rate Swaption [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 3 | |
Interest Rate Swap [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Decrease | |
Equity Option [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Increase | |
Equity Option [Member] | Hedge Funds, Equity [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Increase | |
Other Contract [Member] | Equity Volatility [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Increase | Increase |
Other Contract [Member] | Minimum [Member] | Equity Volatility [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 16.00% | 10.00% |
Other Contract [Member] | Maximum [Member] | Equity Volatility [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 28.00% | 25.00% |
Other Contract [Member] | Weighted Average [Member] | Equity Volatility [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Unobservable Input Range | 21.00% | 19.00% |
Measurement Input, Discount Rate [Member] | Interest Rate Swaption [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Sensitivity Analysis, Description | Increase | Increase |
Measurement Input, Discount Rate [Member] | Minimum [Member] | Interest Rate Swap [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Asset (Liability) Net, Measurement Input | 0.01 | 0.02 |
Measurement Input, Discount Rate [Member] | Minimum [Member] | Interest Rate Swaption [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Asset (Liability) Net, Measurement Input | 0.01 | 0.02 |
Measurement Input, Discount Rate [Member] | Maximum [Member] | Interest Rate Swap [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Asset (Liability) Net, Measurement Input | 0.02 | |
Measurement Input, Discount Rate [Member] | Maximum [Member] | Interest Rate Swaption [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Asset (Liability) Net, Measurement Input | 0.01 | 0.02 |
Measurement Input, Discount Rate [Member] | Weighted Average [Member] | Interest Rate Swap [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Asset (Liability) Net, Measurement Input | 0.02 | |
Measurement Input, Discount Rate [Member] | Weighted Average [Member] | Interest Rate Swaption [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Asset (Liability) Net, Measurement Input | 0.01 | 0.02 |
Measurement Input, Discount Rate [Member] | Interest Rate Swap [Member] | Long [Member] | Maximum [Member] | Interest Rate Swap [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Asset (Liability) Net, Measurement Input | 0.01 | |
Measurement Input, Discount Rate [Member] | Interest Rate Swap [Member] | Long [Member] | Weighted Average [Member] | Interest Rate Swap [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Asset (Liability) Net, Measurement Input | 0.01 | |
Measurement Input, Price Volatility [Member] | Minimum [Member] | Swap [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Asset (Liability) Net, Measurement Input | 0.16 | 0.11 |
Measurement Input, Price Volatility [Member] | Minimum [Member] | Equity Option [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Asset (Liability) Net, Measurement Input | 0 | 0.11 |
Measurement Input, Price Volatility [Member] | Maximum [Member] | Swap [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Asset (Liability) Net, Measurement Input | 0.26 | 0.23 |
Measurement Input, Price Volatility [Member] | Maximum [Member] | Equity Option [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Asset (Liability) Net, Measurement Input | 0.53 | 0.35 |
Measurement Input, Price Volatility [Member] | Weighted Average [Member] | Swap [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Asset (Liability) Net, Measurement Input | 0.19 | 0.17 |
Measurement Input, Price Volatility [Member] | Weighted Average [Member] | Equity Option [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Asset (Liability) Net, Measurement Input | 0.31 | 0.22 |
Valuation Technique, Discounted Cash Flow [Member] | Interest Rate Swap [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Valuation Processes, Description | Discounted cash flows | Discounted cash flows |
Valuation Technique, Discounted Cash Flow [Member] | Swap [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Valuation Processes, Description | Discounted cash flows | Discounted cash flows |
Valuation Technique, Option Pricing Model [Member] | Interest Rate Swaption [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Valuation Processes, Description | Option model | Option model |
Valuation Technique, Option Pricing Model [Member] | Equity Option [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Valuation Processes, Description | Option model | Option model |
Fair Value Measurements Level_4
Fair Value Measurements Level 4 Fair Value Level 3 Roll Forward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 878 | $ 859 | $ 1,061 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (53) | (77) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 10 | 19 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 438 | 353 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (127) | (144) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (61) | (240) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 359 | 150 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | (545) | (263) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 420 | 110 | 140 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (389) | (231) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | 339 | 1 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | (262) | (18) | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 20 | 23 | 40 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 12 | 82 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (7) | (14) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 12 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 8 | (97) | |
Fair Value, Inputs, Level 3 [Member] | Reinsurance Recoverable Including Reinsurance Premium Paid [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 17 | 40 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (34) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (11) | ||
Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | 2 | 38 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | (34) | (36) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases | 1 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements | 0 | (28) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Sales | 0 | 0 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers out of Level 3 | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | Equity Contract [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | 0 | 0 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | (1) | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases | 1 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements | 0 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Sales | 0 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers into Level 3 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | US GMWB Hedging Instruments [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | 0 | 38 | 45 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | (38) | (35) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases | 0 | 0 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements | 0 | (28) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Sales | 0 | 0 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers into Level 3 | 0 | 0 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers out of Level 3 | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Reinsurance Recoverable Including Reinsurance Premium Paid [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 7 | 17 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (21) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (11) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Available-for-sale Securities [Member] | Equity Securities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 32 | 33 | 46 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | (4) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 1 | 2 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 0 | (1) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (2) | (10) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Available-for-sale Securities [Member] | Fixed Maturities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 795 | 742 | 890 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 2 | (3) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 10 | 19 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 403 | 262 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (132) | (182) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (52) | (216) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 359 | 138 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 537 | 166 | |
Fair Value, Inputs, Level 3 [Member] | Available-for-sale Securities [Member] | Asset-backed Securities [Member] | Fixed Maturities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 13 | 2 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (1) | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 40 | 13 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 52 | 2 | |
Fair Value, Inputs, Level 3 [Member] | Available-for-sale Securities [Member] | Commercial Mortgage Backed Securities [Member] | Fixed Maturities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 54 | 37 | 41 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (3) | 2 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 18 | 53 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 0 | (1) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 2 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | 58 | |
Fair Value, Inputs, Level 3 [Member] | Available-for-sale Securities [Member] | Corporate Debt Securities [Member] | Fixed Maturities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 328 | 387 | 327 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 2 | (3) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 12 | 16 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 51 | 41 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (40) | (15) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (24) | (106) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 357 | 138 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 417 | 11 | |
Fair Value, Inputs, Level 3 [Member] | Available-for-sale Securities [Member] | Residential Mortgage Backed Securities [Member] | Fixed Maturities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 154 | 247 | 443 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 1 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 57 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (64) | (75) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (28) | (105) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 58 | 17 | |
Fair Value, Inputs, Level 3 [Member] | Available-for-sale Securities [Member] | Collateralized Loan Obligations [Member] | Fixed Maturities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 259 | 58 | 77 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 2 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 237 | 155 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (28) | (91) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | (5) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 10 | 78 | |
Short-term investments | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 22 | 6 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 22 | 6 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (6) | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | 0 | |
Assets, Total [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 857 | ||
Assets, Total [Member] | Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | 36 | 45 | |
Liability [Member] | Derivative [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | (113) | ||
Liability [Member] | Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | (441) | (115) | 220 |
Liability [Member] | Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | Interest Rate Contract [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | 2 | (2) | (27) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | 4 | (6) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements | 0 | (31) | |
Liability [Member] | Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | US Macro Hedge Program [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (211) | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | (441) | (113) | 247 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | (456) | (359) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases | 339 | (1) | |
Liability [Member] | Fair Value, Inputs, Level 3 [Member] | Available-for-sale Securities [Member] | Commercial Mortgage Backed Securities [Member] | Fixed Maturities [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | 456 | 365 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases | (339) | 1 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements | $ 211 | $ (31) | |
Separate Accounts [Member] | Hedge Funds [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Redemption Restriction, Percentage | 43.00% | 49.00% | |
Separate Accounts [Member] | Private Equity Funds [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Redemption Restriction, Percentage | 0.00% | 0.00% | |
Contract Holder Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | $ 67 | $ 134 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | (51) | (49) | |
Contract Holder Funds [Member] | Fair Value, Inputs, Level 3 [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 21 | 5 | (80) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 67 | 134 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | (51) | (49) | |
Liabilities, Total [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | (108) | ||
Fair Value, Measurements, Recurring [Member] | Contract Holder Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 21 | $ 5 | $ (80) |
Fair Value Measurements Level_5
Fair Value Measurements Level 4 - Financial Instruments Classified as Level 3 Still Held at Year End (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ (31) | $ (82) |
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (145) | (225) |
Fair Value, Inputs, Level 3 [Member] | Contract Holder Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 67 | 134 |
Fair Value, Inputs, Level 3 [Member] | Contract Holder Funds [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 67 | 134 |
Fair Value, Inputs, Level 3 [Member] | Reinsurance Recoverable Including Reinsurance Premium Paid [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 21 | 34 |
Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | Assets, Total [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (10) | (42) |
Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | Liabilities, Total [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (212) | (359) |
Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | Equity Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | (1) |
Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | Interest Rate Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 6 | (6) |
Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | US GMWB Hedging Instruments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (16) | (35) |
Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | US Macro Hedge Program [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (212) | (359) |
Fair Value, Inputs, Level 3 [Member] | Available-for-sale Securities [Member] | Fixed Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 4 |
Fair Value, Inputs, Level 3 [Member] | Available-for-sale Securities [Member] | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 2 |
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | Available-for-sale Securities [Member] | Fixed Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 4 |
Other Comprehensive Income (Loss) [Member] | Fair Value, Inputs, Level 3 [Member] | Available-for-sale Securities [Member] | Fixed Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (4) | (19) |
Other Comprehensive Income (Loss) [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | Available-for-sale Securities [Member] | Fixed Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 3 | (1) |
Other Comprehensive Income (Loss) [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | Available-for-sale Securities [Member] | Fixed Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (7) | (17) |
Other Comprehensive Income (Loss) [Member] | Fair Value, Inputs, Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Available-for-sale Securities [Member] | Fixed Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 1 | (1) |
Other Comprehensive Income (Loss) [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized Loan Obligations [Member] | Available-for-sale Securities [Member] | Fixed Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ (1) | $ 0 |
Fair Value Measurements Level_6
Fair Value Measurements Level 4 Fair Value Option (Details) $ in Millions | Dec. 31, 2019USD ($) |
Fair Value, Option, Quantitative Disclosures [Line Items] | |
Fair Value, Option, Fixed Maturity Securities | $ 6 |
Fair Value Measurements Level_7
Fair Value Measurements Level 4 Financial Instruments Not Carried At Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | $ 158,888 | $ 154,713 |
Assets, Fair Value Disclosure | 124,509 | 116,376 |
Liabilities | 155,703 | 152,161 |
Financing Receivable, Allowance for Credit Loss | (17) | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, Fair Value Disclosure | 878 | 893 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Other Policyholder Funds and Benefits Payable [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 5,282 | 6,049 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Investment Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 0 | 1 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Policy loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 1,452 | 1,467 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage loans [1] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 2,092 | 2,241 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Other Policyholder Funds and Benefits Payable [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 5,261 | 5,912 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Investment Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 0 | 1 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Policy loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, Fair Value Disclosure | 1,452 | 1,467 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage loans [1] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, Fair Value Disclosure | $ 2,248 | $ 2,331 |
Investment Holding Level 4 Inve
Investment Holding Level 4 Investment Income (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Investment Income [Line Items] | ||||
Investment Income, Investment Expense | $ (19) | $ (18) | $ (26) | $ (24) |
Net investment income | 520 | 509 | 816 | 924 |
Fixed Maturities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 395 | 343 | 518 | 586 |
Equity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 4 | 9 | 7 | 6 |
Mortgage loans [1] | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 54 | 49 | 92 | 92 |
Policy loans | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 32 | 48 | 82 | 84 |
Limited Partnerships and Other Alternative Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | 41 | 67 | 130 | 161 |
Other Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross Investment Income, Operating | $ 13 | $ 11 | $ 13 | $ 19 |
Investment Holding Level 4 Net
Investment Holding Level 4 Net Realized Capital Gains and Sale of AFS (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Gain (Loss) on Securities [Line Items] | ||||
Proceeds from Sale of Debt Securities, Available-for-sale | $ 4,397 | $ 3,303 | $ 2,824 | $ 3,498 |
Available-for-sale Securities, Gross Realized Gains | 49 | 12 | 166 | 67 |
Available-for-sale Securities, Gross Realized Losses | (112) | (38) | (32) | (18) |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 0 | (6) | (4) | |
Foreign Currency Transaction Gain (Loss), before Tax | (6) | 9 | 3 | (4) |
Realized Investment Gains (Losses) | (107) | 142 | (74) | (275) |
Other net realized capital gains (losses) | 142 | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Period Increase (Decrease) | (1) | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Sell before Recovery | (1) | (6) | ||
Commercial Loan [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Interest Receivable | 7 | 8 | ||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 0 | (5) | (8) | 5 |
Debt Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Proceeds from Sale of Debt Securities, Available-for-sale | 3,523 | 2,523 | 1,789 | 2,541 |
Available-for-sale Securities, Gross Realized Gains | 45 | 12 | 165 | 67 |
Available-for-sale Securities, Gross Realized Losses | (47) | (37) | (31) | (16) |
Interest Receivable | 114 | 122 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Other net realized capital gains (losses) | (2) | (32) | 127 | 47 |
Not Designated as Hedging Instrument [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (27) | 187 | (187) | (315) |
Not Designated as Hedging Instrument [Member] | Other Credit Derivatives [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (10) | 35 | 149 | 54 |
Variable Annuity [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (24) | 165 | (332) | (365) |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 7 | (10) | (7) | (4) |
Macro Hedge Program [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (36) | 153 | (414) | (418) |
GMWB Derivatives, Net [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 12 | 12 | 82 | 53 |
Other Investments [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gain (Loss) on Disposition of Other Financial Assets | (23) | 37 | 142 | 51 |
Equity Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net Realized and Unrealized Gain (Loss) on Trading Securities | (3) | (14) | 4 | (2) |
Marketable Securities, Realized Gain (Loss) | 2 | (21) | 1 | 2 |
Mortgage loans [1] | ||||
Gain (Loss) on Securities [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Increase (Decrease) Adjustment | $ 0 | $ 5 | $ 0 | |
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | $ (8) |
Investment Holding Level 4 Othe
Investment Holding Level 4 Other than Temporary Impairment, Credit Losses Recognized in Earnings (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Jan. 01, 2018 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 0 | $ 6 | $ 4 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | (70) | (6) | (4) | $ (88) |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, No Previous Impairment | 0 | (6) | (4) | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Securities Sold | 17 | 0 | 6 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Cash Flows | $ 1 | $ 0 | $ 0 |
Investment Holding Level 4 Avai
Investment Holding Level 4 Available-for-Sale Securities (Details) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||
May 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($) | Jan. 01, 2020USD ($) | Jan. 01, 2018USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | $ 1,753 | $ 961 | ||||
Proceeds from Sale of Debt Securities, Available-for-sale | $ 4,397 | $ 3,303 | 2,824 | 3,498 | ||
Available-for-sale Securities, Gross Realized Gains | 49 | 12 | 166 | 67 | ||
Available-for-sale Securities, Gross Realized Losses | 112 | 38 | 32 | 18 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (38) | (18) | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Available-for-sale, Debt Securities | 0 | |||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 18,575 | |||||
Equity securities, AFS | 65 | 45 | ||||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost | 238 | 295 | ||||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 241 | 300 | ||||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost | 1,376 | 1,260 | ||||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 1,462 | 1,297 | ||||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost | 1,808 | 1,824 | ||||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value | 2,052 | 1,951 | ||||
Debt Securities, Available-for-sale, Allocated and Single Maturity Date, Maturity, after 10 Years, Amortized Cost | 5,957 | 6,016 | ||||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value | 7,264 | 6,736 | ||||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | 9,379 | 9,395 | ||||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value | 11,019 | 10,284 | ||||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 3,758 | 3,625 | ||||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 3,856 | 3,704 | ||||
Debt Securities, Available-for-sale, Amortized Cost | 13,137 | 13,020 | ||||
Debt Securities, Available-for-sale | 14,875 | 13,988 | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss | $ (1) | 0 | $ 0 | |||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||||||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 377 | |||||
Percentage of Gross Unrealized Losses Depressed Less than Twenty Percent of Cost or Amortized Cost | 99.00% | |||||
Asset-backed Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale | $ 444 | 295 | ||||
Collateralized Debt Obligations [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale | 1,428 | 1,150 | ||||
Commercial Mortgage Backed Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale | 1,215 | 1,391 | ||||
Corporate Debt Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale | 8,552 | 8,121 | ||||
Foreign governments | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale | 266 | 409 | ||||
US States and Political Subdivisions Debt Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale | 875 | 761 | ||||
Residential Mortgage Backed Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale | 769 | 868 | ||||
US Treasury Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale | 1,326 | 993 | ||||
Debt Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Proceeds from Sale of Debt Securities, Available-for-sale | 3,523 | 2,523 | 1,789 | 2,541 | ||
Available-for-sale Securities, Gross Realized Gains | 45 | 12 | 165 | 67 | ||
Available-for-sale Securities, Gross Realized Losses | 47 | 37 | 31 | 16 | ||
Available-for-sale Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Equity securities, AFS | $ 154 | |||||
Equity Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Net Realized and Unrealized Gain (Loss) on Trading Securities | $ (3) | $ (14) | 4 | (2) | ||
Debt Securities [Member] | ||||||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,158 | 625 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 31 | 6 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 531 | 958 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 7 | 12 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,689 | 1,583 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 38 | 18 | ||||
US Treasury Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 192 | 88 | ||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (8) | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Available-for-sale, Debt Securities | 0 | |||||
Debt Securities, Available-for-sale, Amortized Cost | 1,142 | 905 | ||||
Debt Securities, Available-for-sale | 1,326 | 993 | ||||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 236 | 13 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 8 | 0 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 236 | 13 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 8 | 0 | ||||
Residential Mortgage Backed Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 26 | 16 | ||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (2) | (1) | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Available-for-sale, Debt Securities | 0 | |||||
Debt Securities, Available-for-sale, Amortized Cost | 745 | 853 | ||||
Debt Securities, Available-for-sale | 769 | 868 | ||||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 223 | 80 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1 | 0 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 39 | 87 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1 | 1 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 262 | 167 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 2 | 1 | ||||
Municipal Bonds [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 115 | 56 | ||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (1) | 0 | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 875 | 761 | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Available-for-sale, Debt Securities | 0 | |||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 761 | 705 | ||||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 28 | 51 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1 | 0 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 28 | 51 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 1 | 0 | ||||
Foreign governments | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 32 | 30 | ||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | (1) | ||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 266 | 409 | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Available-for-sale, Debt Securities | 0 | |||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 236 | 382 | ||||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1 | 5 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 30 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 1 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1 | 35 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | 1 | ||||
Corporate Debt Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1,296 | 696 | ||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (12) | (7) | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Available-for-sale, Debt Securities | 0 | |||||
Debt Securities, Available-for-sale, Amortized Cost | 7,240 | 7,403 | ||||
Debt Securities, Available-for-sale | 8,552 | 8,121 | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss | (1) | |||||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 110 | 144 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 9 | 3 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 63 | 176 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 3 | 4 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 173 | 320 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 12 | 7 | ||||
Commercial Mortgage Backed Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 77 | 65 | ||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (11) | (3) | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Available-for-sale, Debt Securities | 0 | |||||
Debt Securities, Available-for-sale, Amortized Cost | 1,152 | 1,331 | ||||
Debt Securities, Available-for-sale | 1,215 | 1,391 | ||||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 214 | 93 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 11 | 2 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 2 | 9 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 1 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 216 | 102 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 11 | 3 | ||||
Collateralized Debt Obligations [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 7 | 6 | ||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (4) | (6) | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Available-for-sale, Debt Securities | 0 | |||||
Debt Securities, Available-for-sale, Amortized Cost | 1,425 | 1,150 | ||||
Debt Securities, Available-for-sale | 1,428 | 1,150 | ||||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 346 | 188 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1 | 1 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 411 | 642 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 3 | 5 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 757 | 830 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 4 | 6 | ||||
Asset-backed Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 8 | 4 | ||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Available-for-sale, Debt Securities | 0 | |||||
Debt Securities, Available-for-sale, Amortized Cost | 436 | 291 | ||||
Debt Securities, Available-for-sale | 444 | 295 | ||||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 0 | 51 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 16 | 14 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 16 | 65 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 0 | $ 0 |
Investment Holding Level 4 Conc
Investment Holding Level 4 Concentration of Credit Risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | ||
Fair Value, Concentration of Risk, Investments | $ 0 | $ 0 |
Concentration Risk, Benchmark Description | greater than 10% of the Company's stockholder's equity | greater than 10% of the Company's stockholder's equity |
Derivative, Notional Amount | $ 40,228 | $ 43,623 |
HSBC Holding plc. [Member] | ||
Concentration Risk [Line Items] | ||
Largest Exposure by Issuer, Percent of Invested Assets | 1.00% | 1.00% |
Wells Fargo and Company | ||
Concentration Risk [Line Items] | ||
Largest Exposure by Issuer, Percent of Invested Assets | 1.00% | |
Verizon Communications Inc. [Member] | ||
Concentration Risk [Line Items] | ||
Largest Exposure by Issuer, Percent of Invested Assets | 1.00% | |
Asset-backed Securities [Member] | ||
Concentration Risk [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 0 | $ 51 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 16 | 14 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 16 | 65 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | 0 |
Collateralized Debt Obligations [Member] | ||
Concentration Risk [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 346 | 188 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1) | (1) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 411 | 642 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3) | (5) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 757 | 830 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (4) | (6) |
Commercial Mortgage Backed Securities [Member] | ||
Concentration Risk [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 214 | 93 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (11) | (2) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 2 | 9 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (1) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 216 | 102 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (11) | (3) |
Foreign governments | ||
Concentration Risk [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1 | 5 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 30 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (1) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1 | 35 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | (1) |
Municipal Bonds [Member] | ||
Concentration Risk [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 28 | 51 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 28 | 51 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1) | 0 |
Residential Mortgage Backed Securities [Member] | ||
Concentration Risk [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 223 | 80 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 39 | 87 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | (1) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 262 | 167 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (2) | (1) |
US Treasury Securities [Member] | ||
Concentration Risk [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 236 | 13 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (8) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 236 | 13 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (8) | 0 |
Debt Securities [Member] | ||
Concentration Risk [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,158 | 625 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (31) | (6) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 531 | 958 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (7) | (12) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,689 | 1,583 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (38) | (18) |
Corporate Debt Securities [Member] | ||
Concentration Risk [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 110 | 144 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (9) | (3) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 63 | 176 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3) | (4) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 173 | 320 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (12) | $ (7) |
Corporate Debt Securities [Member] | IBM Corporation [Member] | ||
Concentration Risk [Line Items] | ||
Largest Exposure by Issuer, Percent of Invested Assets | 1.00% | 1.00% |
Commercial Mortgage Backed Securities [Member] | Corporate Debt Securities [Member] | ||
Concentration Risk [Line Items] | ||
Largest Exposure by Sector, Percent of Invested Assets | 7.00% | |
Public utilities | Corporate Debt Securities [Member] | ||
Concentration Risk [Line Items] | ||
Largest Exposure by Sector, Percent of Invested Assets | 8.00% | 7.00% |
Financial Service | Corporate Debt Securities [Member] | ||
Concentration Risk [Line Items] | ||
Largest Exposure by Sector, Percent of Invested Assets | 8.00% | 7.00% |
Collateralized Loan Obligations [Member] | Corporate Debt Securities [Member] | ||
Concentration Risk [Line Items] | ||
Largest Exposure by Sector, Percent of Invested Assets | 7.00% |
Investment Holding Level 4 Mort
Investment Holding Level 4 Mortgage Loans on Real Estate (Details) $ in Millions | Jan. 01, 2020USD ($) | May 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | Jun. 01, 2018USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Current Weighted Average Loan to Value Ratio of Commercial Mortgage Loan | 54.00% | ||||||||
Original Weighted Average Loan to Value Ratio of Commercial Mortgage loan | 62.00% | ||||||||
Financing Receivable, Allowance for Credit Loss | $ 17 | $ 0 | |||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 2,109 | 2,241 | |||||||
Financing Receivable, Past Due | 0 | ||||||||
Debt Securities, Available-for-sale, Purchased with Credit Deterioration, Amount at Purchase Price | $ 0 | ||||||||
Financing Receivable, Modifications, Number of Contracts | 0 | ||||||||
Financing Receivable, Held-for-Sale | 0 | ||||||||
Commercial Loan [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Financing Receivable, Individually Evaluated for Impairment | $ 0 | ||||||||
Financing Receivable, Held-for-Sale | 0 | ||||||||
Commercial Loan [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 170 | ||||||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | $ 0 | $ 5 | 8 | (5) | |||||
Financing Receivable, Allowance for Credit Loss | $ 9 | $ 0 | $ 5 | 17 | 0 | $ 5 | $ 0 | $ 0 | $ 0 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 285 | ||||||||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 353 | ||||||||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 342 | ||||||||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 177 | ||||||||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 782 | ||||||||
Financing Receivable, before Allowance for Credit Loss | 2,109 | ||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 2,241 | ||||||||
Average Debt Service Coverage Ratio | 2.36 | ||||||||
Financing Receivable, Past Due | $ 0 | ||||||||
Average Debt Service Coverage Ratio, Year One, Originated, Current Fiscal Year | 2.23 | ||||||||
Average Debt Service Coverage Ratio, Year Two, Originated, Fiscal Year Before Current Year | 2.56 | ||||||||
Average Debt Service Coverage Ratio, Year Three, Originated, Two Years Before Current Fiscal Year | 1.99 | ||||||||
Average Debt Service Coverage Ratio, Year Four, Originated, Three Years Before Current Fiscal Year | 2.25 | ||||||||
Average Debt Service Coverage Ratio, Year Five, Originated, Four Years Before Current Fiscal Year | 2.90 | ||||||||
Average Debt Service Coverage Ratio, Originated, More Than Five Years Before Current Fiscal Year | 2.21 | ||||||||
Average Debt Service Coverage Ratio, Before Allowance for Credit Losses | 2.29 | ||||||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Commercial Loan [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 9 | ||||||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Retained Earnings [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Financing Receivable, Allowance for Credit Loss | $ (9) | ||||||||
East North Central [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 80 | $ 67 | |||||||
East South Central [Member] [Domain] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 19 | 19 | |||||||
Middle Atlantic [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 154 | 204 | |||||||
Mountain [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 78 | 75 | |||||||
New England [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 83 | 85 | |||||||
Pacific [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 562 | 646 | |||||||
South Atlantic [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 569 | 510 | |||||||
West South Central [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 213 | 209 | |||||||
Region Others [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 351 | $ 426 | |||||||
Mortgage loans [1] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | $ 8 | ||||||||
Investment Owned, Percent of Net Assets | 100.00% | 100.00% | |||||||
Mortgage loans [1] | East North Central [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 3.80% | 3.00% | |||||||
Mortgage loans [1] | East South Central [Member] [Domain] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 0.90% | 0.90% | |||||||
Mortgage loans [1] | Middle Atlantic [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 7.30% | 9.10% | |||||||
Mortgage loans [1] | Mountain [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 3.70% | 3.30% | |||||||
Mortgage loans [1] | New England [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 3.90% | 3.80% | |||||||
Mortgage loans [1] | Pacific [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 26.70% | 28.80% | |||||||
Mortgage loans [1] | South Atlantic [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 27.00% | 22.80% | |||||||
Mortgage loans [1] | West South Central [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 10.10% | 9.30% | |||||||
Mortgage loans [1] | Region Others [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 16.60% | 19.00% | |||||||
Industrial Property [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 602 | $ 603 | |||||||
Industrial Property [Member] | Mortgage loans [1] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 28.60% | 26.90% | |||||||
Hotel [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 22 | $ 24 | |||||||
Hotel [Member] | Mortgage loans [1] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 1.00% | 1.10% | |||||||
Multifamily [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 536 | $ 576 | |||||||
Multifamily [Member] | Mortgage loans [1] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 25.40% | 25.70% | |||||||
Office Building [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 481 | $ 471 | |||||||
Office Building [Member] | Mortgage loans [1] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 22.80% | 21.00% | |||||||
Retail Site [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 418 | $ 398 | |||||||
Retail Site [Member] | Mortgage loans [1] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 19.80% | 17.80% | |||||||
Single Family [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 50 | $ 120 | |||||||
Single Family [Member] | Mortgage loans [1] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 2.40% | 5.30% | |||||||
Other Property [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 0 | $ 49 | |||||||
Other Property [Member] | Mortgage loans [1] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Investment Owned, Percent of Net Assets | 0.00% | 2.20% | |||||||
LTV Between 65 to 80 Percent [Member] | Commercial Loan [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 6 | ||||||||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 78 | ||||||||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 175 | ||||||||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 94 | ||||||||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1 | ||||||||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 54 | ||||||||
Financing Receivable, before Allowance for Credit Loss | $ 408 | ||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 269 | ||||||||
Average Debt Service Coverage Ratio | 1.74 | ||||||||
Average Debt Service Coverage Ratio, Year One, Originated, Current Fiscal Year | 1.24 | ||||||||
Average Debt Service Coverage Ratio, Year Two, Originated, Fiscal Year Before Current Year | 1.56 | ||||||||
Average Debt Service Coverage Ratio, Year Three, Originated, Two Years Before Current Fiscal Year | 1.75 | ||||||||
Average Debt Service Coverage Ratio, Year Four, Originated, Three Years Before Current Fiscal Year | 1.98 | ||||||||
Average Debt Service Coverage Ratio, Year Five, Originated, Four Years Before Current Fiscal Year | 2.95 | ||||||||
Average Debt Service Coverage Ratio, Originated, More Than Five Years Before Current Fiscal Year | 1.12 | ||||||||
Average Debt Service Coverage Ratio, Before Allowance for Credit Losses | 1.68 | ||||||||
LTV Less than 65 Percent [Member] | Commercial Loan [Member] | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 164 | ||||||||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 207 | ||||||||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 178 | ||||||||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 248 | ||||||||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 176 | ||||||||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 728 | ||||||||
Financing Receivable, before Allowance for Credit Loss | $ 1,701 | ||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 1,972 | ||||||||
Average Debt Service Coverage Ratio | 2.44 | ||||||||
Average Debt Service Coverage Ratio, Year One, Originated, Current Fiscal Year | 2.26 | ||||||||
Average Debt Service Coverage Ratio, Year Two, Originated, Fiscal Year Before Current Year | 2.95 | ||||||||
Average Debt Service Coverage Ratio, Year Three, Originated, Two Years Before Current Fiscal Year | 2.24 | ||||||||
Average Debt Service Coverage Ratio, Year Four, Originated, Three Years Before Current Fiscal Year | 2.35 | ||||||||
Average Debt Service Coverage Ratio, Year Five, Originated, Four Years Before Current Fiscal Year | 2.90 | ||||||||
Average Debt Service Coverage Ratio, Originated, More Than Five Years Before Current Fiscal Year | 2.29 | ||||||||
Average Debt Service Coverage Ratio, Before Allowance for Credit Losses | 2.44 |
Investment Holding Level 4 Vari
Investment Holding Level 4 Variable Interest Entities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | $ 975,000,000 | $ 914,000,000 |
Variable Interest Entity, Commitments by Third Parties, Liquidity and Other Arrangements | 461 | 474 |
Variable Interest Entity, Primary Beneficiary, Maximum Loss Exposure, Amount | $ 0 | |
Fixed Income Funds [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Primary Beneficiary, Maximum Loss Exposure, Amount | $ 0 |
Investment Holding Level 4 Repu
Investment Holding Level 4 Repurchase Agreements, Dollar Roll Transactions and Other (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Securities Received as Collateral | $ 0 | $ 9 | |||
Interest-bearing Deposit Liabilities, Domestic | 28 | 24 | |||
Equity Method Investments | $ 999 | ||||
Aggregate Investment Loss Percentage of Company's Pre Tax Consolidated Net Income Minimum | 10.00% | ||||
Assets | $ 158,888 | 154,713 | |||
Liabilities | 155,703 | 152,161 | |||
Net investment income | $ 520 | $ 509 | 816 | 924 | |
Net income | 94 | 409 | 399 | 359 | |
Securities Sold under Agreements to Repurchase, Gross | 262 | 269 | |||
Securities Sold Under Agreements to Repurchase, Collateral, Obligation to Return | 267 | 273 | |||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 28 | 10 | |||
Limited Partner [Member] | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Outstanding Commitments to Fund Limited Partnership and Other Alternative Investments | 463 | ||||
Assets | 130,700 | 140,400 | |||
Liabilities | 24,300 | 25,500 | |||
Net investment income | 1,000 | 405 | $ 653 | ||
Net income | 5,900 | 10,200 | $ 8,900 | ||
Limited Partnerships and Other Alternative Investments [Member] | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Gross Investment Income, Operating | $ 41 | $ 67 | $ 130 | $ 161 |
Derivative Instruments Level 4
Derivative Instruments Level 4 Non-qualifying Strategies for Hedge Accounting (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | $ 40,228 | $ 43,623 | ||
Derivative, Fair Value, Net | (533) | (109) | ||
Invested Assets Suppoting Modco | 843 | 819 | ||
Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (27) | $ 187 | (187) | (315) |
Derivative, Notional Amount | 40,203 | 43,613 | ||
Derivative, Fair Value, Net | (531) | (109) | ||
Not Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (24) | 165 | (332) | (365) |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (40) | 23 | 180 | 103 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 7 | (13) | (4) | (4) |
Swap [Member] | GMWB Hedging Instruments [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | 3,938 | |||
Swap [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Fair Value, Net | 34 | |||
Equity Contract [Member] | GMWB Hedging Instruments [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | 855 | |||
Equity Contract [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Fair Value, Net | (2) | |||
Equity Contract [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | (1) |
Derivative, Notional Amount | 2,000 | 2,000 | ||
Derivative, Fair Value, Net | 0 | 0 | ||
Interest Rate Swap [Member] | GMWB Hedging Instruments [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | 2,189 | |||
Interest Rate Swap [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Fair Value, Net | 41 | |||
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | 1,300 | 1,300 | ||
GMWB Hedging Instruments [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | 6,982 | |||
Derivative, Fair Value, Net | 73 | |||
GMWB Hedging Instruments [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (45) | 36 | 42 | (68) |
Derivative, Notional Amount | 0 | 6,982 | ||
Derivative, Fair Value, Net | 0 | 73 | ||
Macro Hedge Program [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (36) | 153 | (414) | (418) |
Derivative, Notional Amount | 24,188 | 19,879 | ||
Derivative, Fair Value, Net | (453) | (114) | ||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 7 | (10) | (7) | (4) |
Fixed Annuity Hedging Instruments [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 10 | (15) | 0 | (4) |
GMWB Product Derivatives [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 82 | (25) | 67 | 134 |
Derivative, Notional Amount | 7,803 | 8,717 | ||
Derivative, Fair Value, Net | 21 | 5 | ||
GMWB Reinsurance [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (25) | 1 | (27) | (13) |
Derivative, Notional Amount | 1,688 | 1,869 | ||
Derivative, Fair Value, Net | 7 | 17 | ||
Other Contract [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 32 | 13 | (50) | (55) |
Interest Rate Swaps and Futures [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | 3,419 | 3,082 | ||
Derivative, Fair Value, Net | (13) | (39) | ||
Credit Default Swap, Buying Protection [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 1 | 0 | 19 | 0 |
Credit Default Swap, Selling Protection [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (3) | (1) | 0 | 7 |
Other Credit Derivatives [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (10) | 35 | 149 | 54 |
Currency Swap [Member] | Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (3) | $ 2 | $ (4) | $ 0 |
Derivative Instruments Level _2
Derivative Instruments Level 4 Derivative Balance Sheet Classification (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Invested Assets Suppoting Modco | $ 843 | $ 819 |
Derivative, Fair Value, Net | (533) | (109) |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 344 | 247 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 877 | 356 |
Derivative Asset | 72 | |
Derivative, Notional Amount | 40,228 | 43,623 |
Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | (6) | |
Derivative Liability | (19) | (39) |
Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 1 | |
Derivative Liability | (1) | (7) |
Derivative Financial Instruments, Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | 480 | 160 |
GMWB Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 73 | |
Derivative, Notional Amount | 6,982 | |
Macro Hedge Program [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 7 | 49 |
Derivative Liability | 460 | 163 |
Fair Value Hedging [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 41 | |
Fair Value Hedging [Member] | Equity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | (2) | |
Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | (2) | 0 |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 2 | 0 |
Derivative, Notional Amount | 25 | 10 |
Designated as Hedging Instrument [Member] | Currency Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | (2) | 0 |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 2 | 0 |
Derivative, Notional Amount | 25 | 10 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | (531) | (109) |
Derivative Asset, Fair Value, Gross Asset | 344 | 247 |
Derivative Liability, Fair Value, Gross Liability | 875 | 356 |
Derivative, Notional Amount | 40,203 | 43,613 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swaps and Futures [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | (13) | (39) |
Derivative Asset, Fair Value, Gross Asset | 28 | 11 |
Derivative Liability, Fair Value, Gross Liability | 41 | 50 |
Derivative, Notional Amount | 3,419 | 3,082 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Swaps and Forwards [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 0 | (7) |
Derivative Asset, Fair Value, Gross Asset | 8 | 9 |
Derivative Liability, Fair Value, Gross Liability | 8 | 16 |
Derivative, Notional Amount | 222 | 225 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,300 | 1,300 |
Not Designated as Hedging Instrument [Member] | Credit Default Swap, Buying Protection [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 0 | (1) |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 1 |
Derivative, Notional Amount | 40 | 40 |
Not Designated as Hedging Instrument [Member] | Equity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 0 | 0 |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative, Notional Amount | 2,000 | 2,000 |
Not Designated as Hedging Instrument [Member] | GMWB Product Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 21 | 5 |
Derivative Asset, Fair Value, Gross Asset | 33 | 23 |
Derivative Liability, Fair Value, Gross Liability | 12 | 18 |
Derivative, Notional Amount | 7,803 | 8,717 |
Not Designated as Hedging Instrument [Member] | GMWB Reinsurance [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 7 | 17 |
Derivative Asset, Fair Value, Gross Asset | 7 | 17 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative, Notional Amount | 1,688 | 1,869 |
Not Designated as Hedging Instrument [Member] | GMWB Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 0 | 73 |
Derivative Asset, Fair Value, Gross Asset | 0 | 89 |
Derivative Liability, Fair Value, Gross Liability | 0 | 16 |
Derivative, Notional Amount | 0 | 6,982 |
Not Designated as Hedging Instrument [Member] | Macro Hedge Program [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | (453) | (114) |
Derivative Asset, Fair Value, Gross Asset | 268 | 98 |
Derivative Liability, Fair Value, Gross Liability | 721 | 212 |
Derivative, Notional Amount | 24,188 | 19,879 |
Not Designated as Hedging Instrument [Member] | Coinsurance and Modified Coinsurance Reinsurance Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | (93) | (43) |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 93 | 43 |
Derivative, Notional Amount | 843 | 819 |
Available-for-sale Securities, Debt Securities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 0 | 0 |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative, Notional Amount | 49 | 43 |
Other Policyholder Funds and Benefits Payable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 21 | 5 |
Derivative Asset, Fair Value, Gross Asset | 33 | 23 |
Derivative Liability, Fair Value, Gross Liability | 12 | 18 |
Derivative, Notional Amount | 7,803 | 8,717 |
Reinsurance Recoverable Including Reinsurance Premium Paid [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | (86) | (26) |
Derivative Asset, Fair Value, Gross Asset | 7 | 17 |
Derivative Liability, Fair Value, Gross Liability | 93 | 43 |
Derivative, Notional Amount | 2,531 | 2,688 |
Other Investments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 12 | 72 |
Derivative Asset, Fair Value, Gross Asset | 13 | 83 |
Derivative Liability, Fair Value, Gross Liability | 1 | 11 |
Derivative, Notional Amount | 5,791 | 5,779 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | (480) | (160) |
Derivative Asset, Fair Value, Gross Asset | 291 | 124 |
Derivative Liability, Fair Value, Gross Liability | 771 | 284 |
Derivative, Notional Amount | 24,054 | 26,396 |
Derivative Financial Instruments, Liabilities [Member] | Other Investments and Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 772 | 295 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 279 | 91 |
Derivative Liability | (480) | (160) |
Derivative, Collateral, Right to Reclaim Cash | 13 | 44 |
Derivative Liability, Fair Value of Collateral | 488 | 204 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 5 | 0 |
Derivative Financial Instruments, Assets [Member] | Other Investments and Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 304 | 207 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 295 | 187 |
Derivative Asset | 12 | 72 |
Derivative, Collateral, Obligation to Return Cash | (3) | (52) |
Derivative Asset, Fair Value of Collateral | 0 | 8 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | $ 9 | $ 12 |
Derivative Instruments Level _3
Derivative Instruments Level 4 Cash Flow Hedges (Details) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 0 | |||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | $ 142,000,000 | |||
Realized Investment Gains (Losses) | $ (107,000,000) | 142,000,000 | $ (74,000,000) | (275,000,000) |
Derivative, Notional Amount | 40,228,000,000 | 43,623,000,000 | ||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | 1,000,000 | |||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 0 | 0 | 0 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 8,000,000 | 0 | ||
Net investment income | 520,000,000 | 509,000,000 | 816,000,000 | 924,000,000 |
Cash Flow Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (17,000,000) | 0 | (2,000,000) | |
Derivative, Notional Amount | 25,000,000 | 10,000,000 | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (2,000,000) | 0 | 0 | 0 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (17,000,000) | |||
Currency Swap [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | 25,000,000 | 10,000,000 | ||
Currency Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 0 | (2,000,000) | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Gain (Loss) on Investments [Member] | Currency Swap [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (2,000,000) | 0 | 0 | 0 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Rate Swap [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | 0 | 0 | 0 | 0 |
Net investment income | 8,000,000 | 0 | 0 | 0 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Investments [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | 0 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Investments [Member] | Currency Swap [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (2,000,000) | 0 | 0 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Investments [Member] | Currency Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Investment Income [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 8,000,000 | 0 | 0 | 0 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Investment Income [Member] | Currency Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments Level _4
Derivative Instruments Level 4 Fair Value Hedges (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 8 | $ 0 | ||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (2) | $ 0 | $ 0 | $ 0 |
Derivative Instruments Level _5
Derivative Instruments Level 4 Credit Risk Assumed through Credit Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Credit Derivatives [Line Items] | ||
Derivative, Fair Value, Net | $ (533) | $ (109) |
Derivative Instruments Level _6
Derivative Instruments Level 4 Derivative Collateral Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Security Owned and Pledged as Collateral, Fair Value | $ 48 | $ 10 |
Margin Deposit Assets | 215 | 165 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 65 | 188 |
Securities Received as Collateral | 0 | 9 |
Collateral Pledged [Member] | ||
Derivative [Line Items] | ||
Security Owned and Pledged as Collateral, Fair Value | $ 526 | $ 214 |
Reinsurance Level 4 Reinsurance
Reinsurance Level 4 Reinsurance Recoverables (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Jan. 01, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Reinsurance Recoverables | $ 27,455 | $ 28,824 | ||||
Reinsurance Recoverables, Gross | 27,462 | 28,824 | ||||
Life Insurance Recoveries on Ceded Reinsurance Contracts | $ 546,000 | $ 731 | 1,500 | 1,400 | ||
Cumulative Effect of Accounting Changes | $ 11 | |||||
Reinsurance Recoverable, Allowance for Credit Loss | $ 7 | 0 | 5 | |||
Reinsurance [Text Block] | The Company cedes insurance to unaffiliated insurers to enable the Company to manage capital and risk exposure. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company regularly monitors the financial condition and ratings of its reinsurers and structures agreements to provide collateral funds where necessary. Reinsurance Recoverables Reinsurance recoverables include balances due from reinsurance companies and are presented net of allowances for uncollectible reinsurance in 2019 and net of ACL in 2020, upon adoption of ASU 2016-13. For further information, see Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. The ACL represents an estimate of expected credit losses over the lifetime of the contracts that reflect management’s best estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ inability to pay. Reinsurance recoverables include an estimate of the amount of policyholder benefits that may be ceded under the terms of the reinsurance agreements. Amounts recoverable from reinsurers are estimated in a manner consistent with assumptions used for the underlying policy benefits. Accordingly, the Company’s estimate of reinsurance recoverables is subject to similar risks and uncertainties as the estimate of the gross reserve for future policy benefits. Reinsurance Recoverables, net (Successor Company) As of December 31, 2020 2019 Reserve for future policy benefits and other policyholder funds and benefits payable Sold businesses (MassMutual and Prudential) $ 18,807 $ 19,534 Commonwealth 7,579 8,147 Other reinsurers 1,076 1,143 Gross reinsurance recoverables 27,462 28,824 Less: ACL 7 Reinsurance recoverables, net [1] $ 27,455 $ 28,824 [1] As of December 31, 2019 (Successor Company), no allowance for uncollectible reinsurance was required. As of December 31, 2020 (Successor Company), the Company had reinsurance recoverables from Commonwealth, Massachusetts Mutual Life Insurance Company ("MassMutual") and Prudential Financial, Inc. ("Prudential") of approximately $7.6 billion, $7.0 billion and $11.8 billion, respectively. As of December 31, 2019 (Successor Company), the Company had reinsurance recoverables from Commonwealth, MassMutual and Prudential of $8.1 billion, $8.0 billion and $11.5 billion, respectively. The Company's obligations to its direct policyholders that have been reinsured to Commonwealth, MassMutual and Prudential are primarily secured by invested assets held in trust. As of December 31, 2020 (Successor Company), the ACL increased to $7 from $5 at January 1, 2020, upon adoption of ASU 2016-13. The Company closely monitors the financial condition, ratings and current market information of all its counterparty reinsurers and records an ACL considering the credit quality of the reinsurer, the invested assets in trust, and the period over which the recoverable balances are expected to be collected. Counterparty risk is assessed on a pooled basis in cases of shared risk characteristics, and separately for individual reinsurers when it is more relevant. The Company evaluates historical events, current conditions, and reasonable and supportable forecasts in developing its ACL estimate. Where its contracts permit, the Company secures future claim obligations with various forms of collateral, including irrevocable letters of credit, secured trusts and funds held accounts. The ACL is estimated using a probability of default and loss given default model applied to the amount of reinsurance recoverables, net of collateral, exposed to loss. The probability of default factor is assigned based on each reinsurer's credit rating. The Company reassesses and updates credit ratings on a quarterly basis. The probability of default factors encompass historical industry defaults for liabilities with similar durations to the reinsured liabilities as estimated through multiple economic cycles. The loss given default factors are based on a study of historical recovery rates for general creditors of corporations through multiple economic cycles. Insurance Revenues Successor Company Predecessor Company For the Years Ended December 31, June 1, 2018 to December 31, 2018 January 1, 2018 to May 31, 2018 2020 2019 Gross earned premiums, fee income and other $ 2,221 $ 2,375 $ 1,439 $ 1,059 Reinsurance assumed 125 115 66 48 Reinsurance ceded (1,570) (1,627) (972) (684) Net earned premiums, fee income and other $ 776 $ 863 $ 533 $ 423 The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. Insurance recoveries on ceded reinsurance agreements, which reduce death and other benefits, were $1.5 billion and $1.4 billion for the years ended December 31, 2020 and 2019 (Successor Company), respectively, $731 for the period of June 1, 2018 to December 31, 2018 (Successor Company) and $546 for the period of January 1, 2018 to May 31, 2018 (Predecessor Company). In addition, the Company has reinsured a portion of the risk associated with U.S. variable annuities and the associated GMDB and GMWB riders. | |||||
Foreign Exchange Contract [Member] | ||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Derivative Liability | $ (1) | (7) | ||||
Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Derivative Liability | (1) | (7) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings [Member] | ||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Cumulative Effect of Accounting Changes | $ 182 | |||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Retained Earnings [Member] | ||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Cumulative Effect of Accounting Changes | 11 | |||||
Reinsurance Recoverable, Allowance for Credit Loss | $ (5) | |||||
Retirement Plans and Individual Life Businesses [Member] | Life and Annuity Insurance Product Line [Member] | ||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Reinsurance Recoverables | 18,807 | 19,534 | ||||
Retirement [Member] | Mass Mutual [Member] | ||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Reinsurance Recoverables | 7,000 | 8,000 | ||||
Individual Life [Member] | Prudential [Member] | ||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Reinsurance Recoverables | 11,800 | 11,500 | ||||
Fixed Annuity [Member] | Global Atlantic [Member] | ||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Reinsurance Recoverables | 7,600 | 8,100 | ||||
Fixed Annuity [Member] | Global Atlantic [Member] | Life and Annuity Insurance Product Line [Member] | ||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Reinsurance Recoverables | 7,579 | 8,147 | ||||
Continuing Operations [Member] | Life Annuity Accident and Health Insurance Product Line [Member] | ||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Reinsurance Recoverables | $ 1,076 | $ 1,143 |
Reinsurance Level 4 Reinsuran_2
Reinsurance Level 4 Reinsurance Revenues (Details) - Life Annuity Accident and Health Insurance Product Line [Member] - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Gross Fee Income Earned Premium and Other Life | $ 1,059 | $ 1,439 | $ 2,221 | $ 2,375 |
Assumed Premiums Earned | 48 | 66 | 125 | 115 |
Ceded Premiums Earned | (684) | (972) | (1,570) | (1,627) |
Net Fee Income Earned Premium and Other Life | $ 423 | $ 533 | $ 776 | $ 863 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs Level 4 (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 01, 2018 | Dec. 31, 2017 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Deferred Policy Acquisition Costs | $ (421) | $ 0 | $ 0 | $ 0 | $ 0 | $ (405) |
Deferred Policy Acquisition Costs, Additions | 1 | 0 | 0 | 0 | ||
Deferred Policy Acquisition Cost, Amortization Expense, Other | (13) | 0 | 0 | 0 | ||
Deferred Policy Acquisition Cost, Amortization Expense, Assumption Change | (3) | 0 | 0 | 0 | ||
Deferred Policy Acquisition Cost, Unrealized Investment Gain (Loss) | $ 31 | 0 | 0 | 0 | ||
Movement in Present Value of Future Insurance Profits [Roll Forward] | ||||||
VOBA | 716 | 586 | 696 | $ 805 | ||
Present Value of Future Insurance Profits, Amortization Expense | (80) | 14 | 25 | |||
Present Value of Future Insurance Profits, Amortization Expense, Assumption Change | (19) | (64) | 0 | |||
Present Value of Future Insurance Profits, Unrealized Gain (Loss) on Investment | $ 10 | (60) | $ (45) | |||
Present Value of Future Insurance Profits, Amortization Expense, Next Five Years [Abstract] | ||||||
Present Value of Future Insurance Profits, Amortization Expense, Year One | (10) | |||||
Present Value of Future Insurance Profits, Amortization Expense, Year Two | 18 | |||||
Present Value of Future Insurance Profits, Amortization Expense, Year Three | 22 | |||||
Present Value of Future Insurance Profits, Amortization Expense, Year Four | 25 | |||||
Present Value of Future Insurance Profits, Amortization Expense, Year Five | $ 31 |
Reserve for Future Policy Ben_3
Reserve for Future Policy Benefits and Separate Account Liabilities Level 4 Changes in Reserve for Future Policy Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | $ 18,625 | $ 18,465 | $ 18,323 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 1,094 | 1,063 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (934) | (921) | |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable | 9,139 | 8,803 | 8,532 |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable, Incurred Benefits, Net | 705 | 639 | |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverables, Payment for Benefits, Net | (369) | (368) | |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable | 9,139 | 8,803 | 8,532 |
Guaranteed Minimum Death Benefit [Member] | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | 460 | 450 | 462 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 101 | 78 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (91) | (90) | |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable | 254 | 269 | 284 |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable, Incurred Benefits, Net | 57 | 57 | |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverables, Payment for Benefits, Net | (72) | (72) | |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable | 254 | 269 | 284 |
Secondary Guarantees [Member] | Universal Life [Member] | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | 4,195 | 3,691 | 3,276 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 526 | 419 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (22) | (4) | |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable | 4,195 | 3,691 | 3,276 |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable, Incurred Benefits, Net | 526 | 419 | |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverables, Payment for Benefits, Net | (22) | (4) | |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable | 4,195 | 3,691 | 3,276 |
Annuitization Benefit [Member] | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | 13,970 | 14,324 | 14,585 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 467 | 566 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (821) | (827) | |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable | 4,690 | 4,843 | 4,972 |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable, Incurred Benefits, Net | 122 | 163 | |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverables, Payment for Benefits, Net | (275) | (292) | |
Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable | $ 4,690 | $ 4,843 | $ 4,972 |
Reserve for Future Policy Ben_4
Reserve for Future Policy Benefits and Separate Account Liabilities Level 4 Account Value by Type (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | $ 17,244 | |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 32 | |
Separate account liabilities | 109,625 | $ 104,575 |
Net Amount at Risk by Product and Guarantee, Separate Account Value | 75,849 | |
Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | $ 2,267 | |
Weighted Average [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | 74 years | |
MAV Only [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | $ 12,649 | |
MAV Only [Member] | Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | $ 1,500 | |
MAV Only [Member] | Weighted Average [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | 74 years | |
With Five Percent Rollup [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | $ 928 | |
With Five Percent Rollup [Member] | Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | $ 72 | |
With Five Percent Rollup [Member] | Weighted Average [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | 75 years | |
With Five Percent Rollup and EPB [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | $ 446 | |
With Five Percent Rollup and EPB [Member] | Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | $ 101 | |
With Five Percent Rollup and EPB [Member] | Weighted Average [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | 76 years | |
Reset [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | $ 2,420 | |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | $ 7 | |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | 72 years | |
Return of Net Deposit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | $ 5,642 | |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | $ 46 | |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | 75 years | |
Guaranteed Lifetime Withdrawal Benefit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | 72 years | |
Variable Annuity [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | $ 2,368 | |
Guaranteed Lifetime Withdrawal Benefit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | 5,000 | |
With Earnings Protection Benefit Rider (EPB) [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | 3,221 | |
With Earnings Protection Benefit Rider (EPB) [Member] | Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 594 | |
Asset Protection Benefit ("APB") [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | 8,332 | |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | $ 46 | |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | 72 years | |
Lifetime Income Benefit ("LIB") - Death Benefit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | $ 369 | |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | $ 2 | |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | 74 years | |
Guaranteed Minimum Death Benefit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | $ 2,801 | |
Separate account liabilities | 33,776 | |
Guaranteed Minimum Death Benefit [Member] | Deferred Annuitization [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | 2,570 | $ 2,300 |
Guaranteed Minimum Death Benefit [Member] | Variable Annuity [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | $ 36,577 | |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | 74 years | |
Annuitization Benefit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | $ 353 | |
Annuitization Benefit [Member] | Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 83 | |
Annuitization Benefit [Member] | MAV Only [Member] | Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 225 | |
Annuitization Benefit [Member] | With Five Percent Rollup [Member] | Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 23 | |
Annuitization Benefit [Member] | With Five Percent Rollup and EPB [Member] | Maximum [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 22 | |
Annuitization Benefit [Member] | Lifetime Income Benefit ("LIB") - Death Benefit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 2 | |
Annuitization Benefit [Member] | Reset [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 5 | |
Annuitization Benefit [Member] | Return of Net Deposit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 45 | |
Annuitization Benefit [Member] | Variable Annuity [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 437 | |
Guaranteed Minimum Withdrawal Benefit [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | $ 0 | |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | 76 years |
Reserve for Future Policy Ben_5
Reserve for Future Policy Benefits and Separate Account Liabilities Level 4 Separate Accounts by Major Category of Investment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | $ 17,244 | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | $ 33,776 | $ 32,433 |
Invested in Fixed Income Securities | 18.00% | 21.00% |
Invested in Equity Securities | 82.00% | 79.00% |
Equity Securities [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | $ 32,011 | $ 31,114 |
Cash and Cash Equivalents [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 1,765 | 1,319 |
Guaranteed Minimum Death Benefit [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | 2,801 | |
Deferred Annuitization [Member] | Guaranteed Minimum Death Benefit [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Net Amount at Risk by Product and Guarantee, General Account Value | $ 2,570 | $ 2,300 |
Other Intangible Assets Level 4
Other Intangible Assets Level 4 - Other Intangible Assets Gross and Net (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Gross | $ 29 |
Finite-Lived Intangible Assets, Accumulated Amortization | 15 |
Finite-Lived Intangible Assets, Net | $ 14 |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 26 |
Intangible Assets, Gross (Excluding Goodwill) | 55 |
Other Intangible Assets, Net | $ 40 |
Other Intangible Assets Level_2
Other Intangible Assets Level 4 - Expected Future Amortization (Details) $ in Millions | Dec. 31, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 6 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 6 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 0 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 0 |
Debt Level 4 (Details)
Debt Level 4 (Details) | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
Financial instruments owned and pledged as collateral | $ 940,000,000 |
Long-term Federal Home Loan Bank Advances | $ 0 |
Income Tax Level 4 Income tax e
Income Tax Level 4 Income tax expense (benefit) (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Tax Credit Carryforward [Line Items] | ||||
Current - U.S. Federal | $ 1 | $ (15) | $ 10 | $ (8) |
Deferred - U.S. Federal | 6 | 74 | 56 | 52 |
Total income tax expense | $ 7 | $ 59 | $ 66 | $ 44 |
Income Tax Level 4 Deferred tax
Income Tax Level 4 Deferred tax assets (liabilities) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Tax Assets, Net of Valuation Allowance [Abstract] | ||
Tax basis deferred policy acquisition costs | $ 79,000,000 | $ 60,000,000 |
Unearned premium reserve and other underwriting related reserves | 1,000,000 | 4,000,000 |
VOBA and reserves | 567,000,000 | 557,000,000 |
Net operating loss carryover | 102,000,000 | 166,000,000 |
Employee benefits | 7,000,000 | 4,000,000 |
Foreign tax credit carryover | 18,000,000 | 13,000,000 |
Deferred reinsurance gain | 198,000,000 | 210,000,000 |
Other | 11,000,000 | 15,000,000 |
Total deferred tax assets | 983,000,000 | 1,029,000,000 |
Components of Deferred Tax Liabilities [Abstract] | ||
Investment related items | 145,000,000 | 150,000,000 |
Deferred Tax Liabilities, Net | 505,000,000 | 348,000,000 |
Net deferred tax assets | $ 478,000,000 | 681,000,000 |
Valuation Allowance, Deferred Tax Asset, Explanation of Change | The Company believes it is more likely than not that all deferred tax assets will be fully realized. In assessing the need for a valuation allowance, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences and carryovers, taxable income in open carry back years and other tax planning strategies. From time to time, tax planning strategies could include holding a portion of debt securities with market value losses until recovery, making investments which have specific tax characteristics and business considerations such as asset-liability matching. | |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 484,000,000 | 790,000,000 |
Net unrealized gain on investments | 360,000,000 | 198,000,000 |
Commonwealth [Member] | ||
Deferred Tax Assets, Net of Valuation Allowance [Abstract] | ||
Net operating loss carryover | 363,000,000 | 353 |
Expiring within Tax Years 2028 to 2030 | ||
Components of Deferred Tax Liabilities [Abstract] | ||
Expected Tax Benefit Attributable to Net Operating Losses Domestic Near term | $ 121,000,000 | $ 437,000,000 |
Income Tax Level 4 Effective In
Income Tax Level 4 Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||||
Foreign tax credit carryover | $ 18 | $ 13 | ||
Tax provision at the U.S. federal statutory rate | $ 21 | $ 98 | 98 | 86 |
Dividends received deduction ("DRD") | (12) | (37) | (28) | (34) |
Foreign related investments | (3) | (4) | (4) | (7) |
Tax reform | (2) | 0 | 0 | 0 |
Other | 3 | 2 | (1) | |
Provision for income taxes | $ 7 | $ 59 | $ 66 | $ 44 |
Commitments and Contingencies_4
Commitments and Contingencies Level 4 - Lease Commitments (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||||
Operating Leases, Rent Expense | $ 1 | $ 1 | $ 2 | $ 2 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 1 | |||
Operating Leases, Future Minimum Payments, Due in Two Years | 1 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 1 | |||
Operating Leases, Future Minimum Payments, Due in Four Years | 0 | |||
Operating Leases, Future Minimum Payments, Due in Five Years | 0 | |||
Operating Leases, Future Minimum Payments, Due Thereafter | 0 | |||
Operating Leases, Future Minimum Payments Due | $ 3 |
Commitments and Contingencies_5
Commitments and Contingencies Level 4 - Unfunded Commitments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Other Commitments [Abstract] | |
Other Commitment | $ 567 |
Commitments to Fund Limited Partnership and Other Alternative Investments | 463 |
Commitment to fund Private placement securities | 4 |
Commitments to Fund Mortgage Loans | 100 |
Other Commitments [Line Items] | |
Other Commitment | 567 |
Cancelable mortgage loan | |
Other Commitments [Abstract] | |
Other Commitment | 66 |
Other Commitments [Line Items] | |
Other Commitment | $ 66 |
Commitments and Contingencies_6
Commitments and Contingencies Level 4 - Guaranty Fund (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Commitment, Fiscal Year Maturity [Abstract] | ||
Minimum Percentage of Premiums Written Per Year to be Considered for Assessment Under Guaranty Fund | $ 0.01 | |
Maximum Percentage of Premiums Written Per Year to be Considered for Assessment Under Guaranty Fund | 0.02 | |
Guaranty Liabilities | 7,000,000 | $ 8,000,000 |
Loss Contingency Accrual, Insurance-related Assessment, Premium Tax Offset | $ 2,000,000 |
Commitments and Contingencies_7
Commitments and Contingencies Level 4 - Derivative Commitments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Loss Contingencies [Line Items] | |
Derivative, Net Liability Position, Aggregate Fair Value | $ 539 |
Collateral Already Posted, Aggregate Fair Value | 572 |
GMWB Product Derivatives [Member] | |
Loss Contingencies [Line Items] | |
Collateral Already Posted, Aggregate Fair Value | $ 23 |
Statutory Results Level 4 Statu
Statutory Results Level 4 Statutory Results (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Insurance [Abstract] | ||||
Statutory Accounting Practices, Statutory Net Income Amount | $ 181 | $ (126) | $ 245 | $ 488 |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 3,142 | 3,194 | ||
Statutory Accounting Practices, Prescribed Practice, Amount | $ 51 | $ 37 |
Statutory Results Level 4 Regul
Statutory Results Level 4 Regulatory Capital Requirements (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | ||
Statutory Accounting Practices, Risk Based Capital Requirements Compliance Assertion | The Company and all of its operating insurance subsidiaries had RBC ratios in excess of the minimum levels required by the applicable insurance regulations. The RBC ratios for the Company and its principal life insurance operating subsidiaries were all in excess of 300% of their Company Action Levels as of December 31, 2020 and 2019 (Successor Company). | The Company and all of its operating insurance subsidiaries had RBC ratios in excess of the minimum levels required by the applicable insurance regulations. The RBC ratios for the Company and its principal life insurance operating subsidiaries were all in excess of 300% of their Company Action Levels as of December 31, 2020 and 2019 (Successor Company). |
Statutory Results Level 4 Divid
Statutory Results Level 4 Dividends and Capital Contributions (Details) - USD ($) | 5 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory Accounting Practices [Line Items] | |||
Description of Regulatory Capital Requirements under Insurance Regulations | Dividends to the Company from its insurance subsidiaries and dividends from the Company to its parent are restricted by insurance regulation. The payment of dividends by Connecticut-domiciled insurers is limited under the insurance holding company laws of Connecticut. These laws require notice to and approval by the state insurance commissioner for the declaration or payment of any dividend, which, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (i) 10% of the insurer’s policyholder surplus as of December 31 of the preceding year or (ii) net income (or net gain from operations, if such company is a life insurance company) for the twelve-month period ending on the thirty-first day of December last preceding, in each case determined under statutory insurance accounting principles. In addition, if any dividend of a domiciled insurer exceeds the insurer’s earned surplus or certain other thresholds as calculated under applicable state insurance law, the dividend requires the prior approval of the domestic regulator. In addition to statutory limitations on paying dividends, the Company also takes other items into consideration when determining dividends from subsidiaries. These considerations include, but are not limited to, expected earnings and capitalization of the subsidiary, regulatory capital requirements and liquidity requirements of the individual operating company. As a condition of the sale, Talcott Resolution Life Insurance Company and its affiliates were required to gain pre-approval from the state insurance commissioner for any dividends, regardless of size, through May 31, 2020. | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 597,000,000 | ||
Talcott Life and Annuity Company (TLA) [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency | 400,000,000 | $ 250,000,000 | |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | 335,000,000 | ||
Talcott Resolution Life, Inc (TLI) [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency | $ 319,000,000 | $ 700,000,000 | |
Hartford Life Insurance Company [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency | $ 309,000,000 | ||
Hartford Life and Accident Insurance Company [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Extraordinary Dividends Paid with Approval of Regulatory Agency | 308,000,000 | ||
Hartford Life Inc [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency | $ 619,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income Level 4 AOCI Rollforward (Details) - USD ($) $ in Millions | Jan. 01, 2018 | May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 | Jun. 01, 2018 | Dec. 31, 2017 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stockholders' Equity Attributable to Parent | $ (6,680) | $ (5,810) | $ (2,005) | $ (3,185) | $ (2,552) | $ (2,005) | $ (2,541) | $ (1,767) | $ (6,680) |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (196) | 663 | 925 | ||||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 99 | ||||||||
Change in net unrealized gain on fixed maturities | (430) | (173) | 890 | ||||||
Change in net gain on cash-flow hedging instruments | (18) | 0 | 0 | ||||||
Change in foreign currency translation adjustments | 1 | 2 | (2) | ||||||
OCI, net of tax | (447) | (171) | 564 | 888 | |||||
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | 193 | 193 | |||||||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stockholders' Equity Attributable to Parent | (774) | 173 | (1,282) | (717) | 173 | 0 | (1,022) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,204 | ||||||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 11 | (432) | (198) | 665 | 927 | ||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (2) | 25 | (100) | (37) | |||||
Change in net unrealized gain on fixed maturities | 565 | ||||||||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Prior Period Reclassification Adjustment | 182 | ||||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stockholders' Equity Attributable to Parent | 14 | 0 | 1 | 0 | 0 | 0 | (4) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 4 | ||||||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (13) | 0 | (1) | 0 | |||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 5 | 0 | 0 | 0 | |||||
Change in net gain on cash-flow hedging instruments | (1) | ||||||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stockholders' Equity Attributable to Parent | 2 | (2) | 0 | 0 | (2) | 0 | 3 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (3) | ||||||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 1 | 2 | 0 | (2) | |||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 0 | 0 | 0 | 0 | |||||
AOCI Attributable to Parent [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stockholders' Equity Attributable to Parent | (1,205) | (758) | 171 | (1,281) | (717) | $ 171 | $ (717) | $ 0 | $ (1,023) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,205 | ||||||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (444) | ||||||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 3 | 25 | 37 | ||||||
OCI, net of tax | $ (447) | $ (171) | 564 | 888 | |||||
AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Prior Period Reclassification Adjustment | $ 182 | ||||||||
AOCI, Gain (Loss), Debt Securities, Available-for-sale, with Allowance for Credit Loss, Parent [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stockholders' Equity Attributable to Parent | 0 | $ 0 | |||||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (1) | ||||||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | $ (1) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income Level 4 Reclassification of AOCI (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other net realized capital gains (losses) | $ 142 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 101 | 468 | $ 465 | $ 403 |
Provision for income taxes | 7 | 59 | 66 | 44 |
Net income | 94 | 409 | 399 | 359 |
Net investment income | 520 | 509 | 816 | 924 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 8 | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3 | (25) | 99 | 37 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other net realized capital gains (losses) | (2) | (32) | 127 | 47 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (2) | (32) | 127 | 47 |
Provision for income taxes | 0 | (7) | 27 | 10 |
Net income | (2) | (25) | 100 | 37 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 6 | 0 | 0 | 0 |
Provision for income taxes | 1 | 0 | 0 | 0 |
Net income | 5 | 0 | 0 | 0 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Interest Rate Swap [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other net realized capital gains (losses) | 0 | 0 | 0 | 0 |
Net investment income | 8 | 0 | 0 | 0 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Gain (Loss) on Investments [Member] | Cash Flow Hedging [Member] | Currency Swap [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (2) | 0 | 0 | 0 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Gain (Loss) on Investments [Member] | Cash Flow Hedging [Member] | Currency Swap [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (2) | $ 0 | $ 0 | |
AOCI, Gain (Loss), Debt Securities, Available-for-sale, with Allowance for Credit Loss, Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other net realized capital gains (losses) | (1) | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (1) | |||
Provision for income taxes | 0 | |||
Net income | $ (1) |
Subsequent Events Level 4 (Deta
Subsequent Events Level 4 (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Subsequent Events [Abstract] | |
Proceeds From the Sale of the Business, Including Dividend and Cash | $ 2,250 |
Schedule I - Summary of Inves_2
Schedule I - Summary of Investments - Other Than Investments in Affiliates Level 4 Summary of Investments, Other than Investments in Related Parties (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | $ (18,575) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 20,309 | |
U.S. government and government agencies and authorities (guaranteed and sponsored) | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | (1,559) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 1,765 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 1,765 | |
States, municipalities and political subdivisions | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | (761) | $ (705) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 875 | 761 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 875 | |
Foreign governments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | (236) | (382) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 266 | $ 409 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 266 | |
Public utilities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | (1,325) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 1,540 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 1,540 | |
All other corporate bonds | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | (5,915) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 7,012 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 7,012 | |
All other mortgage-backed and asset-backed securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | (3,341) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 3,417 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 3,417 | |
Total fixed maturities, available-for-sale | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | (13,137) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 14,875 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 14,875 | |
Industrial, miscellaneous and all other | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | (28) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 28 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 28 | |
Non-redeemable preferred stocks | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | (37) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 37 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 37 | |
Total equity securities, at fair value | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | (65) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 65 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 65 | |
Mortgage loans [1] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 2,092 | |
Policy loans | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 1,452 | |
Futures, options and miscellaneous | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | (3) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 10 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 10 | |
Real estate acquired in satisfaction of debt | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | (14) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 14 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 14 | |
Short-term investments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | (802) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 802 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 802 | |
Investments in partnerships and trusts | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | (999) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | $ 999 |
Schedule V - Valuation and Qu_2
Schedule V - Valuation and Qualifying Accounts Level 4 (Details) - USD ($) $ in Millions | Jan. 01, 2020 | May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Jun. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Movement in Valuation allowance and reserves | |||||||||
Reinsurance Recoverable, Allowance for Credit Loss | $ 5 | $ 7 | $ 0 | ||||||
Reinsurance Recoverable, Credit Loss Expense (Reversal) | 2 | ||||||||
Reinsurance Recoverable, Allowance for Credit Loss, Recovery | 0 | ||||||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||||||||
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 1 | 0 | ||||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Writeoff | 0 | ||||||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Period Increase (Decrease) | (1) | ||||||||
Financing Receivable, Allowance for Credit Loss | 17 | 0 | |||||||
Mortgage loans [1] | |||||||||
Movement in Valuation allowance and reserves | |||||||||
Translation Adjustment | $ 0 | $ (5) | 0 | ||||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 8 | ||||||||
Commercial Loan [Member] | |||||||||
Movement in Valuation allowance and reserves | |||||||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 0 | 5 | 8 | (5) | |||||
Financing Receivable, Allowance for Credit Loss | 9 | 0 | 5 | 17 | 0 | $ 5 | $ 0 | $ 0 | $ 0 |
Valuation allowance on mortgage loans [Member] | |||||||||
Movement in Valuation allowance and reserves | |||||||||
Balance, January 1 | $ 0 | 0 | 0 | $ 0 | 5 | ||||
Charged to Costs and Expenses | 0 | 6 | 0 | ||||||
Write-offs/Payments/Other | 0 | (1) | (5) | ||||||
Balance, December 31 | $ 0 | $ 5 | $ 0 |
Uncategorized Items - tl-202104
Label | Element | Value |
Common Stock [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ 6,000,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 6,000,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 6,000,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 1,761,000,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 3,539,000,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 1,761,000,000 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of Accounting Changes | tl_CumulativeEffectOfAccountingChanges | $ 182,000,000 |